The New York herald., 1876-11-26
THE INSURANCE COMPANIES.
REVIEWING THE SCHEDULE nArrs-DnoxrnAor

REVIEWING THE SCHEDULE RATKs-BRoKERAoE
AND REBATE CONSIDERED.
Since the sensation in insurance circles caused by
the action OF three OF the foreign companies with
drawing from the National Board OF Underwriters and
stated in tho HERALD the matters pertinent to their
action and 10 the question of rate have been brought
up in the meetings of the underwriters and have
caused much consideration among the companies them
selves
The schedule rate. adopted by the local and ma
tona boards been tho subject OF much discussion
and the meeting OF the New York Board OF Under
writers-a board separate and distinct from the Ma
tonai Board OF Underwritcrs-held on Friday a
meeting adjourned from the regular monthly
meeting for The purpose OF completing
unfinished business, and had no relation
whatever the action Of the Royal the North
British and Mercantile, and the Lancashire, as the
Withdrawal of those companies from the National
Board does not necessarily affect their relations with
the New York Board, in which, at tho meetings on
Friday and yesterday, these companies were repre-
scnted
At twelve O'Clock yesterday meeting was held at
the room CT the Board, No 156 Broadway. and It was
= iuli representation OF all the leading companies
The principal subjects discussed NJ botn meet
ings, well all other meetings for the
past few months, have been how TO secure more
rect in the charges for Insurance. based
upon the actual hazards and how to
thorough cooperation the part Of all substantial
companies whether members OF the Board or not, in
maintaining and protecting the established rates.
rnE SCHEDULE sysrRS
OF rating adopted by the Board believed to DO
cepiible OF nicer discrimination in tho charges m
slixes The system is founded upon the plan OF In
surancc adopted from special consideration Of The
rsks in such buildings ~ may be erected IN accord
with the paus OF safety from destruction or
damage by fire, and according 10 the architectural de-
signs in what is estimated TO be hreproo structures,
from model OF which me rates are based and gradu
according structure locality and surroundings
70 provide for this better discrimination the Board
have established the privilege OF reviewing any
rsk that may DO orougd, 70 'he con
pointed with SPECIAL power IN this direction.
Any risk may be submitted by company, providing
the risk be judged entitled to such revision looking
toward modification proper adjustment OF the
imposed. The nice distinctions OF rate, governed by
the actual surroundings Of the building on which the
risk taken, the purposes or tins privilege ana
the appointment of committee is a wise procedure
upon the part or the Boaro.
THE NATIONAL BOARD OF UNDERWRITERS
is considered by tho companies 10 be national need,
and all OF the foreign companies represented in the
Board themselves in hearty accordance with
its intentions, powers rules and regulations, and the
action OF those companies which have withdrawn
Is deprecated as in one sense demoralizing
although the others stand firm, and, the
three months notice by the Lancashire has
but shortly begun IL is hoped that the action of the
company may be reconsdered before the expiree
careful collation., maze in 1874, OF the annual
turns Of thirtyegbt companies transacng tho largest
business the country embracing thor returns Tor
all OF the years of their business 1853 showed
that while they had earned $27l 2q3 36S SO
of that business $2S3, 90S 653 49, showing
a loss Of Sl2 615 2S5 IA. The whole insurance busi
this country from Its beginning has been done at
loss to the companies whole, and underwriters
than all others to this destruction, and
that they do this only by judicous discrimination
and uniform rates for nsurlng, places upon them col
lectively and individually, responsibility which they
cannot fail to discharge.
THE BROKERAGE QUESTION
which came the meeting upon the proposition to
leave the rate OF payment and OF rebate sptona with
the companies created much discussion as an import
in establishing the rate OF insurance
Since the system OF brokerage established it is
estimated that more money has been paid To brokers
existence since that time, period of nearly twenty
years. The insurance broker has become an import
ant third party in the transaction OF insurance bus
ness; he holds somewhat anomalous position, work
ing Tor party and receiving pay from another
and II the matter OF brokerage rates not
governed by some rule there would be
security for those who desire to insure and leave their
business the bands Of brokers, tho volume Of
business would naturally incline toward such CON-
some instances the insured would be compelled
pay higher OF premium certain risks for the
simple reason that the companies must seek some
of overcoming the deficiency IN revenue caused
by the payment OF excessive rates to the brokers
The proposition to leave these matters optional with
the companies was promptly defeated by solid vote
OF the members present. and the system 0f revi
upon the schedule rates viii take effect Decem-
ber !.