, 1877-08-16

lFf Ilf3L fttL1DH bI t1lf p4UlDhH'E liIufFiE9
that "Any pcraon other thnn All authorized In
s,rance-aEent holding a commission from the
S,atc nf Illinois WIN arts or Mills In any manner
In negotiating contracts III insurance Or rc!nsur-
suranvc, or placing RISKS, or cIrcctfng Insurance
or reinsurance, except for himself. or In ease 1T
an aitorney-at-taw for client OF general ngcnt
! for ha principal as an Incident uf hs employ
mcnt a. such attorney or general nTcnt, and re-
ccsrinR n commission or compensation therefor,
shall 10 ''ecmed for tho purposes Of this ordi.
11ance mn insurance brokcr.'h
| They state that, When tho draft of the ortl!-
name was originally submitted to tho Council,
It was statctl to tlctn that It had nothing in II
| regarding attorneys or general agents. These
clnIscs wcro Interpretations, the effect oil which
Is to discriminate llnJustty against them. Their
ccivcs n commission or pay tn nny form Tor
placing Insurance Is MI lnsuranco broker. They
tay that numbers OF lawyers arc In the habit nf
they hare control or ior their clients; that these
.lawvcrs charge and receive commission Tor
sn doing, and nrc to TINT extent insurance
brokers. They state also that regularly all-
thortzcl agcnt Of Il company tnny tavc a't ap-
pllcation n'alc 10 him TO place insurance to the
amount Of sH0,tNl. lie places $1,000 Of that
with tho company he represents. being Gil olthe
risk which that e Gsomnany wansa e carrr. 1he
| anung othrr agents, md receives hls cpntnfs-
| sion FIR 80 doing. And, therefore, they ciait.l
tl,at ic Is 10 that extent un insurance broker.
| Hn W1G t3lcy HRIlb ~ Ii HIVE HIS uE8k hEE}luu
t,ons, which they elat'n arc insi'lfous md rom.
sassa :, ''a;s"so e ..s2..ss ;skS .,o$sS 81.
Or If le sfS Ill., to % 10 it, !hsn o Sesons, anessIIs
| to tho penalties provided by the ordinance. II
this were done, they say that they would have
ooestto to The rn'fy orars aa 5 dos a
recognize the wisdom, Of frrezlne out
THESE 1nHEspoAstnLE n1soKERs
| who have reelected llssre!!t upon the proles-
sion, ntu they sec tint this ean be done by
means Of charging license fee. Thcr consider
81OU excessive us compared with the charges III
aomc other businesses, ~: Tor instance, tue sa-
loan license, which Is s52. But they perceive
1rr Of these irresponsible people would he ublc to
ralsc that much inuey, aid would still continue
| In business. 10 they are willing to pay fl00,
provided everybody ess ays Bas .ey chin. m
thirty people pny sl00 each for the sakc Of get
| ting license, md ret allow agents., attorneys,
unu Tom, Dick, and Harry to do business With
| out any ncccssity for a license.
They state further that the ordinance In It's
present form Is full Of 1oopalolcs md cannot be
enforced It 10 perfectly easy for every ono Of
them to get soHmis;"n an., u.s. nEcnt ,, for some
| fear OF tliu Law. Even ii they
were 10 attempt to conform to H. It Is so fn'1 OF
weak points that hundreds Of others would SLIP
| brokers would ret no tnurc business tllan they
did before, and would not be protected III any
| way uganst tho interference With their business
| by these unauthorized partlea.
| They deny the statement published in yrstcr-
days paper to the effect that agents Of insur-
aiee companies pay Il tax They state that nil
| tho ulnrEes Imposed OIL INSURANCE here, whether
tic per cent tax which tho city collects or the
! cotne upon the companies themselves, md not
| upon the agents; that thu agcnts pay nothing
IN the way u License, nothing ln the way Of
ssucc!al tag, md yet are all tho while aching AS
They would aiso like to have tho ordnance
a1llcnlcd by. tho insertion Of a provision tint
any person doing business With an unlicensed
broker knowing him % be s,ict', shall also bo
subjected to d Hue. Thcy claitn that we're this
not 1onc. many agents would take business
| from whatever quarter It game, no matter
whether tic person bringing 1t had or had not a
brokers, It would BIZ imperative that the ordl-
nance should be thus amended. We're these
changes made they would take no exception
whatever to this provision, and would bo the
first to step up, pay their fees, ana get their
document.
| An aaea OF the duties of broker may 10
gathered from tho following extract from q cir
culnr issticd by one of tkcM:
pAny, keep fully posted In regard 10 the Ftanlng
Of al comMnie*, untl do not hesitate to inform my
nnasfon. a. soon e. my ausstinn afses seraraLn
allve 10 thu 6est Interests Of my customers. An
Intelligent btoksr ~ sucn agent II cltcful 10
stsSy @ aas s:s: s
aans. n;s d;sa enoo a"Gns e te. ts i:.pss
i've strcngsh, 'tnat III necessary permits
nro ndotse on policies that tho runlo rhali not
be- rtfaca by SONIC act or neglect Of tho assured,
that THO worllngor policies is such that nll prop
crty intended to b. Insured Is Soyetc4 avoiding tho
very frequent occurrence VI discovering after nro
HAT portion Of the property Icstroyrl IL unIn-
tnrs also IA ssent Of loss Tender'ng all neeresary
to tso .sgys srssdy nHa
companies occupy very different pnsi,i0u from
that af broker, which requires 10 ar9unlent 10
eurancc being largely left to ,he agent broker
becomes question Of erent importance whose
agent he IL.
DO AWAY WITH BROKERAGE.
To THE TRIBUNE Il seems that The brokers in
their statement Of thu alleged grievances i,,.-
posed by tho ordinance are begging the ques.
tion. Hy TIC provisions Of tho polIsy. the broker
tsde jars and 10 tacto thy ascut q the insured
not the insurer. Thu policy ls delivered to hin,
bf tue legal representatives Of tho company to
be by hlnl turned orcr to tho Insured un pay
bas no budlng. lureo until pal! lur to t|le roni-
nany Or Its lrgal representative. This leaves
tle supposed insured entirely at tho merry Of
tho broker, wlu, II hu be dlsl,oncst,-an.l nIAny
have bceu,-pocket* the innncy. This yltiatcs
tho policy n,i leaves the holder without tlo
slightest protection.
Ills customary for many brokers doing busl-
ucss in this city 10 plaec large lines of insur-
anvs with companies which lays no teua status
In th!s State, havu never complied with It's laws,
anu aru utterly unknown to tho insurance De-
partrscnt. With these companies tho brokers
Keep running seeoMnts, makin9 rGnittaneca
whenever tluy feel like 1t. No schedule, Us u
rule. accompanies these rc.nittances, Indicating
tu whRt policies they shall 30 credited. A btv
fire comes aloug; the broker Is Indebted TO
tho company t9. a grcatcr Or less ex-
tent; den,nnd for indemnity. Is made by
cleerfulIy rrsromls, "You have no cla!iin.
against us; we lnI oii our ,9ooks no record ot
i,ay your loss." Tic lslsarcsl produces the bro.
kcr's receipt. TIL: company says: "ils was
your agent, md to him you must iook for pay.
collected. Hence IT,. as the brokers say. tho
ordinance will compel them to get commissions
"a ngrnts, 1t will nrhieyu ono good thing. 1t
will throw tho onus Of the business ou tho com
tanlra, wAlrh will then be held responsible fur
ibv aetiuns Of tls brokers, md thus aatisty tbs
Insured That hls policy ls actually what IL claims
10 be-absolutc protection,
>tIIn ptts,%, tn f1rta MI n%n1