The New York herald., 1876-11-21
7HH INSURANCE QUESTION.
Why the Various Foreign Companies With
drew from the National Board.
THE SECEDING COMPANIES.
Action Of the Foreign Companies
Explained.

estimated profits than any other country or several
countries Of the world. Statistics show that We
exceed by ten times the losses by France and
Germany, about ive times those Of England and the
British Isles, and that the actual figures nstratc
that Of the premiums received from insurance
policies about sixty per cent ~ consumed In
paying losses. Exceptionally good years are
succeeded by exceptionally bad ones Tho losses
by fire. TO come in strata and when
The cAamiti-s OF Portland Chicago Boston and other
places considered the OF the National Board
OF Fire Underwriters which govern rules and reg
uiaons OF the local boards sections are Of
great importance In the formation OF the Board
about nine years ago, and IN It's reorganizato five
years since Its purpose to give such representa-
ton Of the leading rc insurance companies should
secure permanent controlling power OF ndmnsira-
she Of those companies
the organzaon well OF those com panes OF
the Board Its purpose s to consider the vital Interests
OF the fire insurance companies and to establish in
certain localities proper and consideratc OF pre-
MUM, and TO divide the various risks into such
classes as may make the duties Of the agents In the
various sections easy OF performance and In
principle.
Risks. as they arc to be taken arc governed by the
National Board, but each company manages its own
business OF paying losses making settlements The
questions affecting the interests OF the companies
rules and regulations may best serve the gen.
eral of the companies to be considered
at tho regular or special meetings
While on tho one hand most OF tho heavy COM
panes represented in the Board, membership Is
optional, and there many solid, substantial and
Trustworthy companies which give allegiance
to the National Board adhering to its rules and
lat,ons they best meet the emergencies but gem
orally claiming the privilege OF 'doing their bushes
in their own way"
The OF several OF the foreign fire insur-
ance companies has created much comment in insur-
circles and probably may exert powerful innu-
ence upon the business and upon the interests OF
agents and stockholders
sEcguISc COMPANIES
are the Royal, the North British and Mercan-
tie, Of London and Edinburgh, and the Ian
cashire OF Manchester. The first OF these com.
panies, having its home ofice in Liverpool, trans
lis business IN America through what known
district managers each OF whom reports directly
the home Office there being no board OF
actions OF the agents or managers. The
North British, the contrary, has Board OF Direc
tors in this city, where their main Office located
aud this Board are controlled b1and answerable only
10 the home Office in London; about !, 200 agents
under the control OF the Office in this city
the Lancashire also does its business through the
main Office in New York, although there is no Board
OF Directors In America, the agent here reporting
and being controlled by he office Manchester Eng
land According 10 the statements OF several leading
insurance officers, IN and out OF the National Board OF
Fire Underwriters, there Is much competition among
the ''ouiside' companies especially through their
local agents In the various Districts while The
local Boards rules adopted ia many instances
matter OF rate IS governed by the risk offered and
cepted, and the agents commissions are, likewise,
governed by circumstances =
The fact that the Royal Insurance Company,s out
OF the National Board, and has for some time,
and that the North British seeded few days ago and
that the Lancashire has n0hed the Board OF inten-
on to sccedc at expiration OF three months has
tod fTc 0ffi iCa nd ftyro
anxiety in the Board, many OF the leading insurance
contendng that this recent action upon the part
of the foreign companies may compel others having
agents in America TO do likewise and that the Begin
ning OF an insurance war may be ut hand year ago
or more, the reports are the Royal insurance Com
number, TO be represented In tho National Board, each
one to vote ior himself in an election, closely con-
tested, for officers This claim denied by the
Board for the reason that other companies having
managers the various cities would have claimed
like privileges IN their bohalf AT that time tho CON-
pany would have had, according to their demand =
rcpresen largely In OF the
privileges Of the Board, and out OF the refusal to
allow their district managers to vote himself
has grown all The present difficulty and excitement
Tho Royal has not yet consented to be sasded with
vote which all the Board would accord them,
although they had by resolution earnestly and respect
inlly been requested to appoint some individual
who should represent them in the Board. This com-
pany having considered ITSELF and being in reality froe
OF tho Board, leads other companies to fear
that their business may be absorbed, and
in the ranks the hinge upon which hangs tho action
OF other companies, notably that or the Lancashire,
whose agent, Mr. Robertson. states briefly that the
reason his company proposes to leave the National
Board is that the Royal having done SO the home oico
are unwilling that any other English company should
possess by It's freedom from the Boards rules and
obligations any advantages over the Lancashire.
OUTLINES OF TIE CONTROVERSY.
The pain iacts In the controversy, Ms shown by
the records OF the executive miee OF the National
Board, are that the company never was ono of the
members Of the Board. and its rspresent ntatves.
in majority OF cases, gave their counicnancc
aud support TO the Board rates ana rules in
their respective districts and took part in the
deliberations OF the Board its sessions. Alter tho
Board had been In existence for nine years, and upon
the FIRST occasion oi "cali vote in April 1875 the
demand OF the Royals representatives zach share
have vote, met by the refusal upon the part OF
the Board, and, the decision OF the Chair being
ta,ned the Royals gentlemen requested depu-
zc tome one Of their number 70 vote for tho
as ITS proper representatives
This recommendation was considered aud the
ayers retired from the meeting for consultation. They
declined tho proposition, however Correspondence
upon the matter had 1t Is alleged, already been en-
tered tho home office, but no ro-
sponso was received from the company, until
purpor, OF that correspondence that the decision
OF the question was lett entirely 10 the American rep
Tesentativcs OF the company, and al The meeting Of
tho Board April, 1916, reference made 10 The
whole subject and directions given to the officers Of
the Board 70 communicate with the American mana
gers oil the Royal and with the company upon the SUBJ
ject There being no definite result obtained the mat
ter was brought forward Tor consideration tho semi
annual meeting in September last, when, on motion.
the Royal Insurance Company declared not to be
a member OF the National Board. This record how
ever, was coupled with an invitation 10 become So,
leaving TO the company the nomination, In whatever
manner IL should elect OF one proper representative
in the Board, AS called for by the constitution.
This action was at once communicated to the CON-
pany, and at later date to its American managers,
ana these gentlemen, at recent meeting held in New
York. decided not 10 accept the invitation claiming,
10 stated, that as they had in former years been
given all the privileges OF members individually they
could only reconncct themselves with the Board in
the same manner, and alleging, as further ground
for REFUSAL tho noncompliance with the rules and bad
faith Of the Board members.
Mr.. T. y. Beddall Of the Royal, being interviewed
upon the affair, gives the following statement ION
the reorganization OF the National Board OF Fire Under
writer's, in 1871, after the Chicago fire. The Royal
requested TO become member, and, IL appearing that
the company had no manager 10 represent Il Q
whole. was found impossible 10 comply with the
request Upon this tnc Board altered its constitution
90 q read as follows
'..Any insurance company In the United States, or
any agency OF a company from foreign government,
or any general agency OF foreign company. having
jurisdiction In one or more states, may. hereafter,