(On motion, duly seconded, the report and the recommendations contained therein, were referred to the Executive Committee.)

VICE-PRESIDENT HARRIES:- We will next have the report of the Committee on Insurance. In the absence of Mr. H. J. Davies, of Cleveland, the Chairman of the Committee, the report will be presented by Mr. E. J. Cook of Rochester, a member of the Committee.

REPORT OF THE COMMITTEE ON INSURANCE

To the American Electric Railway Association:

GENTLEMEN. The work of your Committee on Insurance in the past year has brought about three things of advantage to the members of the Association:

I. A closer relationship and a better understanding between the Committee and the managers and other officers of the large stock insurance companies.

2. The recognition by the Factory Mutual Insurance Companies of protected railway properties as desirable risks, and actual insurance by them of a number of traction properties.

3. A start toward the drafting of standard rules and requirements for the construction and protection of carhouses and other railway structures, to take the place of the three sets of rules and requirements now in effect, viz., those of the American Electric Railway Engineering Association, those of the National Board of Fire Underwriters, as recommended by the National Fire Protection Association, and those of the Central Traction & Lighting Bureau.

Your Committee held two conferences with the Central Traction and Lighting Bureau in New York, and the Chairman of your Committee attended a meeting in Cleveland of the National Fire Protection Association's Committee on Electric Railway and Power Properties.

These conferences have all been fully reported in the AERA.

Data sheets of 149 companies, carrying $196,360,000 of insurance, indicate an average rate of 652 cents per $100 of insurance. Losses aggregating $274,600 were reported by these companies. One company, that suffered a loss of $75,000, carried no insurance. Deducting this loss, the ratio of losses to premiums was 211⁄2 per cent., of recoveries to premiums 14 per cent, and of recoveries to losses about 90 per cent.

The Committee cannot urge too strongly upon the members of the Association the importance of furnishing the data called for from year to year. Every company ought to make a report upon the Committee's blank, that the assembled data may not be misleading.

Your Insurance Expert has had a very busy year, as indicated by a report made by him to this Committee, a copy of which follows this report.

Respectfully submitted,

H. J. DAVIES, Chairman,

E. J. Cook,

A. H. FORD,

F. A. HEALY,

S. L. TONE,

Committee on Insurance.

REPORT OF INSURANCE EXPERT

CLEVELAND, O., September 30, 1912.

Mr. H. J. DAVIES, Chairman Committee on Insurance, American Electric Railway Association, Electric Bldg., Cleveland:

DEAR SIR. The following is a brief progress report of your Insurance Expert for the year 1912.

During this time, I have inspected railway and lighting properties at various points from the Atlantic to the Pacific Coast, having travelled more than 25,000 miles in this work.

My relations with the traction and lighting companies and the great insurance organizations have been most gratifying. The traction people have accepted my plans and specifications for the protection of their properties in many instances, and the insurance companies have given marked reductions in rates on all of the properties thus protected.

I have, during the past eight months, been in direct communication with the office of the Central Traction and Lighting Bureau, and have, through its Acting Secretary, received every possible consideration. I have obtained from the Bureau and from rating bureaus basis rates of insurance covering the properties of several traction and lighting companies that are very satisfactory, so far as buildings and contents other than rolling-stock are concerned. The rolling-stock of traction companies should receive a lower rate of insurance than has been given up to the present time, and this is a matter that should have the careful consideration of the joint committee.

I note in the September, 1912, AERA, a very interesting account of a meeting of the sub-committee of our Association with the sub-committee of the Central Traction and Lighting Bureau. The co-operation of the Committees at this meeting indicates substantial progress. The suggestions offered by Chairman Bissell of the Central Traction and Lighting Bureau relative to the classification of street-railway property deserve the approval of our Committee. They form at least a basis upon which we can commence to operate, with the understanding that all future questions regarding conditions, rates, etc., will be considered by joint Committees of the Association and the Traction Bureau.

The most important work accomplished in the year is that of interesting the Factory Mutual Insurance Companies of New England in traction and lighting properties. The executive officers of a number of the Factory Mutual Companies made personal inspections of traction and lighting properties, and decided that, when protected in accordance with the well-established rules of the Factory Mutual Companies, the properties average up with the class of risks now insured by them.

As a result of these inspections, a large number of traction and lighting properties have been taken over by the Factory Mutual Companies, and other properties will be considered by them for insurance when protected in accordance with the plans and specifications of our office.

There are three methods under which the traction and lighting business of this country is underwritten: First, the major portion

of the properties is now insured by the old-line or stock insurance companies. Secondly, a considerable number of the properties have been taken over by the Factory Mutual Insurance Companies. Thirdly, a number of the large traction and lighting companies have established insurance funds and are now carrying their own insurance. I have the pleasure of co-operating with all three of these, and it is my constant endeavor to give each one "a square deal," at the same time remembering that my chief object is to promote, to the best of my ability, the interests of the traction and lighting companies that I serve.

The work of this office has increased to such an extent that it becomes necessary, in order to achieve the best results, to increase our engineering facilities, and I beg that you will make clear to the member companies of the Association the advantages to 'e derived through co-operation with this office.

Respectfully submitted,

HENRY N. STAATS,

Insurance Expert.

(On motion duly seconded, the Report was accepted for reference to the incoming Executive Committee.)

VICE-PRESIDENT HARRIES:- The next order of business will be the presentation of the Report of the Committee on Company Sections which Mr. C. N. Duffy, Chairman, will read.

REPORT OF THE COMMITTEE ON COMPANY SECTIONS To the American Electric Railway Association:

GENTLEMEN.-Your Committee appointed subsequent to the Mid-year Meeting of the Association, held in New York, January, 1912, begs to report as follows:

A meeting was held June 25, 1912, in New York, at the office of the Association, the following members being present: H. W. Blake, R. J. Clark, R. E. Danforth, C. N. Duffy, J. E. Duffy, D. F. Sherman, and Leroy Ingoldsby, representing W. G. Gove. Vice-President Geo. H. Harries, Past President James F. Shaw, and Secretary H. C. Donecker, were also present.

The general plan of organizing and conducting company sections, and their advantages to the Association, to member companies, and to the employees of member companies, were thoroughly discussed. after which the following resolutions were unanimously adopted:

1. That there should be three kinds of company sections, as follows: (a) A company section to be organized by a member company conducting only an electric railway business, or a member company desiring to organize a company section composed only of its railway employees, the membership of such a company section to be confined to the railway employees of such a member company. This would be the usual form of organization. (b) A company section to be organized by a member company having, or desiring to have, a company section in some other similar Association, like the National Electric Light Association. For such a company section a charter would be issued by the American Electric Railway Association for a joint company section, the dues only of those members engaged in the railway part of the work to go to the American Electric Railway Association. (c) A company section which would be organized as a combined company section. This kind of section would apply to small companies having a limited number of employees, not deemed sufficient in number to form a company section. Such a company is to form a combined company section with other railway companies in the vicinity, if said railway companies are members of the American Electric Railway Association.

2. That dues for members of company sections are to be payable in advance, but no member of a company section is to be required to pay the annual Association dues of $5.00 oftener than once every year. For example, the fiscal year of the Association closes September 30th; a member of a company section paying the annual dues of $5.00 in advance, say, on September 1, 1912, would not be required to make the next annual payment until September 1, 1913.

3. That the Executive Committee of the Association be requested to give, annually, a gold medal for the best paper presented before any railway company section, the paper to be presented by a member of the company section and to deal with the electric railway business.

The criterion upon which the papers are to be judged is their value to the electric railway industry.

Papers read between January 1, 1912 and June 30, 1913, are to be eligible for competition, thereafter within the twelve months ended June 30th of each year.

4. That company sections as organized be numbered in the order in which they are organized and that the Secretary of the Association issue to each company section a Certificate of Organization," of the form adopted by the Committee.

5. That the Secretary of the Association be requested to have the suggested form of constitution for company sections adopted by the Committee printed, so that they will be available for distribution to member companies of the Association to aid them in the organization of company sections.

6. That the Secretary of the Association be requested to issue a pamphlet describing the advantages of company sections and the way to form them.

Up to October 1, 1912, the following company sections have been organized:

Company Section No. 1, The Milwaukee Electric Railway and Light Company - Organized March 18, 1912-64 Members. Company Section No. 2, Public Service Railway Company Organized May 10, 1912-335 Members.

ΙΟ