New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-02-09

own oPTIONf
p,ho Withdrawal of the Standard Fire insur-
enc con,nauv fro ID the New York BoaIdoi Oh"er"i'
~ oroated feeling Of GStrust amoug several Oh V"e
members Of that Board. committees mas oo." Ip
-. ,bcb il ia ex pected will allow those companies
,sire IN do business at their own option 10 90 SO
,,n,t cautrol OF the Board, while, at the same uhe'
the schedule OF rates is to be steadily maintained as VIC
onera standard OF business. II Is now understood haS
much OF the trouble has been caused through that
clause Of the rules which applies to brokers ana com
iss,ons and trouble, II is said, has worked lsei
- tho Roard OF brokers W NJ. 81. John, Secretary OF
the Standard Ere Insurance Company said yesterday
that letter OF resignation had been sent by the CuH
many 70 the Board Underwriters but for the present.
he declined TO give any Of the details which hhd leu Tue
Company to adopt that course. he kne" 'n"' '0
BOARD of Underwriters had appointed committee 10
consder the best plan that could be adopeu 10 re"ou'
the existing trouble; but If any OF those ineDeI VIM
nod he,u onnonfed had declined TO serve he believed
that IL was because their time would De so iuIlT
occupied In other ways tha1 'HeS 0'uu
not devote themselves properly 10 tuo "u'''
Jobn r smith Secretary Of the Gerhard FIRE Insurance
Con,panv sill that his Company had withdrawn from
tbe Board OF Underwriters because the rules OF the
rosrd nerfered with their business which was prin-
e,pally upon buildings. The Board, to protect the
brokers had adopted rule that company shouid
allow bra ker IS per cent cOmmissOn Dut shOuu uOt
be permitted to make the allowance to the prop
prfV
Had all the companies adhered to this rule 1t might
have worked well bat some OF the companies allowed
the prpartyowuers a fall rebate of IS per cent, while
those connected with Board could only allow 10 per
cent It was all very we'll TO protect the brokers they
brought business a company but instead the result
was hatin protecting the brokers the Gebhard began 10
lose it, business while 40 business was brought to
ii by the brokers.
An ofl,sr o. tho Home Fire Insurance Company said
that he becvcd the companies which had taken such
stand against the rules ana regulations would soon DC
glad 20 again adopt the rates fixed by the schedule
Tue results last years business had been remarKaDe
FOR sa Ossce aud he feared that some of the eompa
MES were Inclined become reckless in consequence OF
a small degree OF prosperity. entirely overlooking the
probability OF a calamity which might arise next year
or The wear AFTER he believed that the Board OF Under
writer's would hold together even II few OF the discon
tented companies should withdraw. Henry Butler
President OF the American Exchange Fire Insurance
Company said that tie system Of brokerage and rebate
was not iary regulated by the rules Of the Board o.
Underwriters. The nominal rate for commissions was
10 per cent hut there companies which were so very
GcsoEs Of Obtaining business that Notwithstanding the
fixed rc commissions OF % and 25 per cent has been
given, and perhaps even more. Il a property-OWner
chose TO act as his OVID broker and transact Lis own
business he 81 why he should not have re-
hate cqrnl 20 tho brokers' commission The interior
ence Underwriters to protect the brokers
has Teen met WIKI great dsfavOr 6y several insur
ance companies who knew well that brokers rarely
bring new business TO any company, except favored
few.
A president Of large insurance company said that
the schedule % had been adjust on the plan OF
Il model building, such as sBOId be always erected In
large civ. Wien any tedce4cy existed IN comparison
with the model the rate increased for each de-
fcicncy result OF nis had been that persons erect
ing buildings since the schedule had been made had
constructed them meet the views of the insurance
- fba INN
ance Every perfect buIding thus erected for the
greater safety OF the city. as Wei for the improve
meut Of ,he property which IL had been built The
stronger companies favored tue maintenance OF this
schedule. and yet the cOmpa'es could afford TO
reduce their rates IN No-York much better than could
those which did purely local business Where large
company having agencies all the country, trans
aced over nin-tenth- OF their business outside OF the
Knitted circle o. New FORK aud vicinity that company
could afford TO reduce Their rates on New-Fo7k one
third an! the reduction woud only be 3 per cent on
their gross receipts; whereas purely local company
were 10 make the same reduction it would take SO per
rent from their gross receipts The past year had been
gerry PROSPEROUS and losses by fire comparatively
small in New-York; s,iu this was no guarantee that
large d!str ct hre might not take place at any
time. Should a fire break out and rage for
any length Of time IN the dry goods dis
trict comprised within the limits bounded by
Duane-st West Broadway, Canalst., ana Broadway
many OF the local companies would become bankrupt;
aud vet without taking into consideration the prODa
biitY such fire, these cOmplnies desire 10 rcouce
te rates on lust sCch proVerv. The stronger companies
having wider crlepce, and ariuG IN mlnN tue IRE
al Boston, at wnch properly considered rar more
srcure uad crunnied iatO ashes, desire 10 maintain
lust and equitable rates winch shall help to make the
companirs There could be found IN the CITY or
N-W-YOrk places where II a IRE we're started On c0d
Winter night, when the streets were bOched up WIN
snow before a. could ne eXtiDeuisned nile square Ot
building might be icyeed with the ground The night
of the budlugS would aid Ia reducing sucn Calamity
Taking an these facts nto CONSIDERATION ne was III idVr
minimizing The schedule OF rates 80 az 10 MAKE al
the local companies stronger instead OF weaker.
Hiram NJ Forester, President of the Broad way In
surnuce Cumpauy, said that fire which would make
bankrupt the snail local companies would also DO the
same with the large agency companies, because OF Inc
fact that latter had as much al risk In the danger
Gus localities rs had the Oters not more Win re-
gard To the question commissions Tor brokers, many
III the cumpIales had got over the STIPULATION oy Hp
notnfu0 certain brokers az town local agents and
allowing them nom 20 TO 50 per cent commission or
business And yet such COMPANIES would h0ld up iheir
ertvowuer VINO atUcuced 10 hi own business without
the aid a broker. rebate of 10 per cent The local
companies business winch Is under their own control
and personal observation, aud arc lar more careI IN
taking rtks dangerous Localities. than some ~ the
agency cOWuaaIeS de- had been surprised 10 ma that
tue companies outside me Board had dohe 50 c husl-
ness even with lower rates, az had D5en shown by
tie annual statement.
sand thar his company lkeY 10 wlldraw from
me B,ard unless the cOuu1ttee which had becn AZ
pointed should make some arrangements 10 allow the
companies 20 transact their business al helr own oOh
lie mad heard that some such course was Intended ana
0yit1 sucn a privilege perhaps number OF companies
which were now besijatiug about remaining III the
Board would bc tnauccd - refrain from stuIlug III lei
feIs of resignation the next regular meeting II
would require 10 days from the ume that the letter was
read az TIE Board before The company resigning could
ufOcccd violate TIE rules WhOUt becoming SUBJECT 10
TIE penalties
TELEGRAPHIC RIVALRY.
THE PLANS OF THE ATLANTIC AND PACIFIC AND