The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1873-12-06
Equitable Rates Y. The Board of Underwriters

Equitable Rates y. The Board of Underwriters,
To the Editor otthe Chicago tribune.
SIR Those insurance companies which sur
vived that cvcr-mcmorabe disaster the Chicago
fire, upon rallying their shattered forces found
themselves masters of the field. and in position
to dictate terms. Ayailing themselves of their
opportunity, they Immediately formed com
bnation, known To the commercial world Us the
" Board OF Underwriters" They are bound to-
gether by sundry rules and penalties, and many
of the objects of the organization are both wise
and legitimatc but the central idea, and the rock
on which they must eventually split, is the en-
forccment of specified rates, because that law of
trade, The demand regulates the supply" is as
inevitable as grayitation, and insurance cannot,
for any considerable length Of time, be sold
either for more or less than its real value. The
combination claimed, perhaps with justice, that
Il close competition had forced companies to
write at runously low figures. Certainly, viewed
in the light of the Chicago fire, rates had been
inadequate. The cost o. insurance went up all
over the country; and, III Chicago, rates were
increased from 100 to 200 per cent. on the ground
OF exceptional liability to disastrous fires.
| The injustice of this discrimination was fully
| demonstrated by the subsequent experience of
| Boston; and our greatly improved methods Of
| building, and efficient tire department, make 4
continued discrimination against us wholly indie
| fensiblc For two years the combination had the
| handling of the bulk of insurance on their own
arbitrary terms Their profits in that time can
be inferred from the great success OF the Traders
Insurance Company organized IN this city soon
after the fire. The rates of the company are in
dependent, but average much less than those Of
the Board yet in the brief space of two years, il
has accumulated the handsome surplus OF over
| $4,000. An investigation will further show that
| the Globe of Chicago, reorganized little more
| than year ago, has made fine record, under
popular management and low rates, as compared
with those of the monopoly, whose agents, sud
denly enriched have surrounded themselves with
all the elegant appointments of wealth. Surely
enough has already been conceded to any linger
| ing sentiment Of gratitude in behalf of companies
which, in great crisis, found themselves in {
position to fulfill their contracts. Insurance a
| present rates is too great II burden upon oul
business, and self protection demands that We
seek remedy. BY transferring insurance, a:
far rs may be, TO responsible companies outside
| the combination, and by fayoring the speedy
| Organization Of one or more companies III oul
midst, with ample and well-securcd capital oil
cered by men Of character and ability the Board
| of Underwriters can be forced To come down e
equitable rates, or-lcit to 20 to seed H.
DURfEE CHASE, ESD, of this city, who has al
Office in Dcano's block, as will be seen by hi.
advertisement in another column, is agent for tho
National, the Globe and other insurance com
panies outside Of the combination quite az r"ia
, bic and responsible as any in it,