New-York tribune., 1886-07-21
INSURANCE MEN IN SESSION.
FIRE uvDERwRIrERs' NATIONAL BOARD.

FIRE UNDERWRlIERS NAlIONAL DoAhD'
ANNIVERSARY OF ITS FORuArIoN-rHE LIMIT of
COMMISSIONS.
The tw entieth anniversary OF the forma'ou Va
The National Board Of Fire Underwriters was @ ce'o
brated yesterday 10y meeting III the directors , ,
of the Mutual life Insurance Companys huiuine.
A large number of representatives OF hre ihsi'an,
companies IN this and other cities were present.
aud part ,cipsted IN general discussion OF tnu uo
insurance business he recent address OF IT'S, t
dent Hail of tue local BOARD OF Cnderwiiters hts to
been widely Published and COntrl bnted lareeS "
increase the attendance at the meeting yeslelu"ott
d. A. Ileald. OF the Home Insurance Copn'dnn, nn,rJ ~
this city. who is president OF the Na'lolaI ,omc
delivered an address which was comnieie IesuS
of the work of the Board during ITS twent! .oa,s
existence: and which also gave iair statenenb b;s 30
tnr tire insurance situation III thc 'oui'"
remarks he said: ,.,.
The companies which have remained IN n aring ali
wi us may feel Just prde ~ tne ehrSatonsl hoard
these latter years OF de DOrallzaton le
has stood constantly upon that smpe oSsmts conII
proposition that the rate o comm cent limit: mot only
hindc its members 10 10, nut ende vorlne a r,h,n
critical periods in underwrtnR BY all the means % W %
s powcr TO e-tsi lisa basis me ep h %. Se Soa
missions IN The expense ccouo ccod y, twenty five wears
over which our tables reach uhI II 10 n' ' ''
b III of the amount OF all other expo
Mr. Head presented table OF 10y convcions
tr,r.,n % srcpred bv the Board: He denounced the
v,nrd poIicy and other such legislation which the
Board has aWag' ,U and we're ere taSuaped
90 Inv the unwisdom of such legislation. Speak
ing of taxation be salu:
pla u
capital organized under It's laws noes not come properly
heore us consideration. yet gives us pleasure 10
sNNeme OF axatOn it> own companies. has also ro-
ducci the tax on tne gross premium receipts OF the
rv -, rr,er to relieve i,s own companies from
like tx IN other II ,te- retaliaory laws rhe
state OF New-No has at length discovered that the
collection II irom companies OF other States ana
tIns suhiectng companies 10 lax OF s3 III those
States. j. neither sonnd policy nor gooI stes't M
entire s,,tem of Ieralatory or reciprocal laws which
have long dsgraret tie statutes OF so !ny oI our
ciarrd and fixed characters II license or franchise
tax let IT bo clearly defined as such ~ me law OF On
si.t". MaRDg tie law OF one st't' nepehu unon me
statutes another state. aud compelling clt1en OF
Ia hunt up the laws OF haii aoA~n o,ner 9ta ia n
he can de erminc what be may riihiuy 40 nnef
tne law his stat. l. travesty OF legislation
al unreasonable ana burlenSome eXacton
Mr. Head showed by official statistics that in
Michigan the companies paid III taxes IL per cent
o. their profits and in Wiccnsin - per cent during
the last hfIeen years Upon the subject OF fire
waste he SAID
IN annual destruction of property ny fire has assumed
snch sisautic proportion, ms TO eha enfe pu9u avn %
tion and demand the m,st careful consideration al the
hands OF Legislatures aud our Na;i ,na Govern
ment over S530o0.0oo was pad ont Tor nrr loss
la- year hy 3Os / emh aced J. our tables ava
this large As 1t may s~e Is resarie oy COM r,"ni
waste I" the rom,non wealth of copntry. Daring
TIE twrntv-iVe years covered by these tables. over
or ,hrcs exeeI tiunnl yer, tho volume Of waste has
STEADILY Increased AMI kept aac" win t4e lner.- s ~
wealth and drve"I ~en OF the country "I 'o'u'e ~ ~
this wOnld 20 enormously Increased II w" "'I"
timed hy mutual companies large and small ana the
tho sands OF Losses unprotected tv in-n9au'" w,h i
loss 10y tire in the Unitei states cannot fal teIow
slOpOO0.0O0.
In regard to premium rates he held that they
could not he mater ially advanced but that read
in -tnent should take place TIE rates being To" low
on dive lings special hazards AMI term rl'kN he
eNlerlencr of 1913 American and ~ foreign com
names was ven to show that the business did not
iurnish Large profits. In concluding hls address,
Mr.. Head said
W. ,nnot maintain standard or uniform rates IN com
r,,,v with uIlesiriced commissions Olen commissions
mea open FiXe iaes cannot long eNst without
k.trs c'umo be IeAdust1' e1n lied or aiyano,u %
even msiut nrd as at prese ~, wl'n % nAe in n,
aud settlement Tn" crisis Is not only impending
In II is mo,, us his yer, iay aud hor This question
of eIren-e must lie me that factor In our
pen.e> which grown up"m us the mos raIhiiy anu
tie fatal to success il to be dear with first o. an
The red, of commissions IN excess o 10 per ce"t
ap-outry the condition precedent I" The maintenance
d,"mcement o. ia"s 20 long as eIcessv, {, olunis
epahc agents brokers e. auction on the hui
Il same with the Insured, uuicn Is 'mpossi'e Rates
cannot and oughtno and indeed Will noi ne nlntaheh
undet such CONDITIONS inls n,v :" tor the the Ist
@ ,"ran nn fiI If rr..onnhe sdmstment Under
writer's justify to tue iuplc rates so rear
fu 10 ded by expenses unc'ef for 80 Injurious 10
lie honest and experienced agents and 40 fatal TO the
beet interests OF companies Agents do no. ciamOr for
excessive commissions. for they FhOw thdt win III
paw increased competition and new com
reiitors. There never has been time more favorable
for the adoption the plan aud pledge r'pos'd by
late convention aud largely sisn"d hv the Leaning con-
psnes II tns plan or its eqmyalrn' "iin Gon,nls %
tue will indeed he full OF danger To the business
represent OF this question We are masters: on
Oiler questions may dfer. but Oh the qnrst0n OF
reducing proper hsue this increase of 81 per cent,
winch stealthiv cep, Ia with these past twenty
there ia middle ground 1T is either He with
action death by neglect; WI d usrestS the fhture.
and as part shall We h"nor oI disgrace the
pIoessIon have chnSrn. and to which W" have ded
Gated talents and the Des energies Ol our
business life.
A general discussion followed in which Altre.';.
Baker of Philadelphia ii A. Oakley, +. A. Wal
ton. IT, II. Hall. of tins city ID W L. SklltOn OF
Hartford. and Others approved the address aud
urged action the question OF commissions. Inc
Board adopted part of ITS rules the compact
formulated last year fixing the limit of commissions
at 10 per cent. This was not to take effect until
100 companies signed 1t. But as only 30 sigma
tures were obj ned it had not taken effect but the
Board decided to give il effect at once. After re-
ce>, long discussion took place, in which many
underwriters not members of the Board partlcl-
nate l. and then the following resolutions were
adopted: ,.
R,soired That the convention approve OF the action
taken this morning by { National Board OF FIRE
Underwriters in Incorporating as part O IT'S rules te
% Insurance. companies relative To comilis
10 tn action OF the convention or
Juu- ~, 1888; that tue compact committee OF
ieaue-tai tnue Its ldOrs anu 4 e com
panes here represented p-dge them cooperation in car
I, ing out of said conitc and respectfully re
quest the cooperation o. the Executive COMMITTEES Df
the onal Board OF FIR Undrrw riters I" tie pd that
IN same hsv full aud effect at early day
R,s0ired That authority b- given the Joint committee
tons Board to call a meeting OF the signers to the
pact whenever they deem best
The convention then adjourned sine die.