The Question of Insurance Rates.

Taranaki Herald, Volume L, Issue 12439, 17 December 1903, Page 2

The Question of Insurance Rates.

CU.NFEKENCE OF COMMITTEES.

]<) A conference of the uommittdes, ap(j pointed by the Chamber of Commerce .^ and the Tradesmen's Association to "r" r ilisciibs the question of .'eduction in ° insurance rates, was held in T»lr H. F. Rusaell's ofiee' at 4 o'clock en -- p\ednesday afternoon. There were pre[fcent : — Messrs H. Goodacre, D. Toed, . .J. Paul, H. J. Parker, J. Blyth, H. j, ( , 'F. .Russell (secretary of the Trades- „ j men's Association), Capt. JPred Bell- , ringer (Firo Brigade). Mr Paul was the only representative present from the Chamber of Commerce. An apology for absence was received lt _ frdln Mr "W. I). Webster. L Mr Goodacre, the chairman, explained that the meeting was called to con'^Jsider the question of asking tlie In:z ~ jsurance Comjjanies to reduce their *S rates in Is'ew Plymouth. The Chamber l'c. j of Commerce had appointed a conunitf jc '. tec to confer with the committee of Vs the Tradesmen's Association, and he j ( | had this meeting convened >o act in • V 'concert. He .then pointed cut that '' c reductions were being made in other at towns, and seeing the good - business, na with slight risk, that the cpmpanies id- did here he considered it was time the ,h(. rates were reduced here. He pointed or !out also that the town iad a Fire ' , Brigade, whose promptitude in sup- \& \ pressing lircs, -was well-known. The * c j water supply was good, and the BriLm 'gade never had any difficulty in the or matter of water pressure. The suppleof nientary "water service ihat was being .(.„ installed would be an addit onal guarh Q antec that the water pressure would l t be maintained. ~OLr Paul asked what was the main '| '• ct of the meeting- ? is Mr Ooodacre said it was to get hh reductions in insurance rales "which were being granted in other places. In v {. continuing he said the services of a ss night-watchman, who was f?aid by the "-. property holders, also, reduced the - * risk of fire. He had asked C a pt. Bellm" linger to be present to j/ive any mcc» formation as to whether *he plant oi "t ( the Brigade or the efficiency of that ur body could in any way he improved. .c- In regard to the moral risk of fire n , y he instanced that bankruptcies wort _£ rare in .New Plymouth, and,, therefore, | there was ah almost entire absence oi • " incentive in this direction. There hac en ( been one scare over fire raising, but »c the act was that of an jndividual fct iwho had no pecuniary interest in doid ing what he did. He also viated that s t the closing of the hotels at, 10 o'clock decreased the moral risk cf fre as r&gards that property and billiard rooms, Mr Paul said he -could not agree with that remark. If a man wented „n to iire his premises he could do so under a 10 o'clock license as' well as he could under a 11 o'clock license. He considered that the so nulled i«>o.'a] risk did not apply. Air Goodacrc said that the 10 o'clock license reduced the risk of lire, although it would be better to drop the term "moral risk." Mi' Paul remarked that it was the it distinctive term he objected to. The Chairman* then went on further /. to jrive reasons why the rates should be reduced, and stated that in Aucklaud, where the risk of fire -was much greater, the rates were 50 per cent. lower, and he considered they "were v justified in. asking for a t.ubsiantial decrease in the rates here. The Goa vernment Department offered to share their profits with the policy holders, . and he hoped the private unices wouldisee their way to do the same. New Plymouth had also been ] iace'd fey the companies from 0 to D risk. Mr Blyth pointed out that the • Chairman had omitted to state that the erection of "briclt walls in the town t had decreased the risk of fire. Mr Parker ©aid that since tne Naa tional Bank had built fcrick walls to its addition his rates for i»is property adjoining had "been reduced 6s per centum. Mr Teed said said his experience was s building neyft to his premises tis rates the opposite. Since Messrs GaJdwater Bros, had built a brick ptrty wall had been raised by 2s 6d. , Captain Bellringer, in answer to questions, said that lOOifcs pressure was capable of coping witH any twol storied buildings. The supply was never interfered with at i»ight, and the pressure now was better because f a number of motor powers had been abandoned during the" past U\v years. The Brigade was in an state, and the men were all Capable ol cop-, ing with any outbreak »n town. TBere was a custodian and five nen a'ways at the central station at night, and, on an alarm, the Brigade could respond promptly. He oelieved in a high pressure power before s'.eam appliances.* tn the future, no doubt, chemical appliances will L-e- used largely in suppressing outbreaks of fire. The New Plymouth Brigade's efficiency was well-known throughout New Zealand. The Criterion Hotel here was the only private connection with the station. The Chairman said ho asked those questions because he had been fold they were rated high here pn account of inferior waler supply, and Ihat the fire appliances were not as effective as in other places. Capt. Bellringer said other places bad electric alarms and better life saving appliances, but in other respects tho local Brigade was well and efficiently equipped. Mr Paul said ho took it that the object of the meeting was to deviao means of bringing the matter before the Insurance Companies. Mr Teed said the risks ' might be lower iw Auopland, because the buildings were all brick. The Chairman said he referred to similar risks fvs between, the two places, The. fire , at the Hotel' Commonwealth was tho biggest loss to Iho com pan ips hero during tho past 10 years, and this amounted to some

£2,000. The average loss for the last C years was £850. • ;

Mr Paul said that what had been' stated was known, andthe step to be taken was to bring the matter practically before the companies. 1 Mr Parker moved in effect, That the Insurance Companies doing business in New Plymouth be asked to make a reduction in the rates equal to about 50 per cent., and that New Plymouth be classed as A risk, being one of the best risks in New Zealand-. • i

Mr Blyth said he would like the motion to road a " 'substantial reduction," instead of naming. 50 per cent. His rate at present was 335, and if a 50 per cent, reduction was made it would bring the risk ,to 16s odd, which was lower than the Auckland rate, 22s 6d for similar risk^ quoted by the Chairman. , - Mr Teed said he believed in asking for 50 per cent, reduction, and he would second the motion. r ; Mr Paul agreed with Mi- Blyth, that it would be policy not to fix any' suggested reduction, but leave the matter open. It looked like dictation to name the amount- of reduction.

Mr Parker .said. he__wasL .agreeable. ..ta alter the wording to suit the views of the meeting. The Chairman said the agents here had been asked for recommendations, by their offices. , '

After some further discussion, the motion as originally worded was then put and carried. Mr Paul moved, That Messrs Goodacre, -Teed, and Farker be a sub-com-mittee to draw up reasonsfor asking for a reduction, and submit, them to the companies.

Mr Blyth seconded the motion, which was carried. This concluded the business.

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