Evening star., 1937-04-30
Study of D. c. Government
Takes in Fire and Life
Firms Rates.
$500, 900 A YEAR SAVING
ON POLICIES is SOUGHT
Action Follows Moor Charge of
$4,000, 900 0vercharge in
12-Year Period.
BY JAMES E. CHINN.

SuUCOlIlullll6e
House District Committee decided to-
day to broaden the scope of its study
OF taxation and municipal govern
ment reorganization to include an in
vestigation of the reasona bleness OF
flre and life insurance rates in the
District.
Conflicting reports over the fairness
Of existing fire insurance rates led to
the decision.
J. Balch Moor, District superin-
tendent of insurance. charged in re-
cent report to the House Subcommit-
tee on District Appropriations. fire in
surance policyholders in Washington
were overcharged s1D,0O0,oOO over a
period Of II years. Several days ago
he told the tax subcommittee he
planned to cut the rates to save policy
holders s500,00O year.
Edward S. Brashears, representing
the National Board of Fire Under
writer's, testifying before the subcom-
u1ittee late yesterday, denied vehem-
entity Moor's charges. Fire insurance
rates in the District he declared, do
able charge"
Representative Nichols, Democrat,
OF Oklahoma, an active member of the
subcommittee, who injected the sub
iect of fire insurance rates into the
hearing, proposed the inquiry to find
out, he said who is right" He also
said the subcommittee should look
Into" life insurance rates at the same
time.
Moor First Witness.
The insurance rate inquiry will
start Tuesday when the subcommittee
resumes its hearings. Moor is to be
called as the first witness.
Moor was present when Brashears
made his denial before the subcom-
nlittee. Newspaper men asked him:
Who Is right, you or BraShears?"
Moor pointed to himself and pro-
duced report for the 1896 calendar
showing net premiums amounting to
s3.5l7,091 and losses of $1,120,455. A
notation on the report showed the
losses amounted to 308 per cent of the
net premiums. Next, he wrote men,
orandum for the newspaper men
which read:
Less than 80 cents in losses paid
out of each ST of all fire premiums in
the last six years"
Moor's report also showed the net
premiums from life insurance policies
in 1885 amounted to S24,507,777,
whereas the losses" totaled $9,066,-
&21.
In view of that difference, Nichols
said the subcommittee should inquire
into life insurance as well as fire in
lurance rates.
More than dozen witnesses parad-
ed before the subcommittee during its
all-day hearing yesterday, protesting
chiefly against proposals for placing
an additional burden on automobile
owners through an increase in the
gasoline tax and a weight tax on
motor vehicles The consensus was
that the existing 2-cent local tax on
gasoline is sufficient to support the
activities of the Highway Department,
providing there are no diversions OF
the revenue from this source.
Near the close of the day represent
willing to share its part of the burden.
were given an opportunity to express
their views on one of the nine Collins
bills, which would place a per cent
tax on net premium receipts Of these
companies
Opposed to Unfair Increase.
Brashears, aside from his conten-
ton that fire insurance rates in the
District are equitable, declared he
deprecated" an increase in the tax
on insurance companies, but since
higher taxes appear to be inevitable
he believed the insurance business is
willing to share it, part of the burden
Howard M. Startling. representing the
Association OF Casualty Insurance Ex-
ecutives, also expressed the opinion
that insurance companies are willing
to face increased taxation along with
other business
= Charles F. Creswell Of New York
representing the Association of Life
Insurance Presidents, however, pro-
tested the proposed increase In the
insurance tax on the ground it would
constitute tax on thrift" and re-
suit in a reduction of dividends tc
policy holders.
After representatives Of several mo-
torists' organizations had registered
opposition to the proposed increase
IN the gasoline tax, Nichols said he
believed the large oil companies would
welcome" the rise because it would
serve TO reduce their losses in nearby
Maryland and Virginia where gas l.
sold at District prices" He pointed
out the oil companies now absorb
the difference in the higher gas take,
OF Maryland and Virginia so retail.
~ In the nearby areas can compete
with District dealers An increase
IN the tax here, he explained, woulc
reduce the dif1erential.
Others who testified included Harry
q. Davis of the Independent Tax
Owners Association, B. D. Friedman
Of the District Petroleum Association
Howard w. Kacy Of the Acacia Mutua
Life Insurance Co., Charles D. Nor.
gan, jr., of the District Trucking AS.
sociation and Mrs. M c. Mallon, sec.
sociation.
Sinking Fund Proposed.
Davis suggested sinking fund foa
the payment of accident claims as q
more feasible method than liability
insurance for protecting taxicab riders
He made the suggestion. in response
10 questions by Nichols as to the
feasibility OF liability insurance fo1
tAxicab owners. Davis replied, eve
cannot, of course, oppose such legis-
Ation.'
Davis also pointed out that during
the last eight years the Independent
Taxi Owners Association has paid out