The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-03-18
DEFIES THEM ALL.
Greer Harrison and the
Insurance Men.
WAVING THE RUDY FLAG.
The Breaking of a Compact Is the
Signal for an Open Declara-
ton of War.

W. Greer Harrison, the local manager
OF the North Pacific branch of the Thames
and Mersey Marine Insurance Company,
limited. is fighting mad.
He is angry at lot of Insurance compa-
MES, and especially at ten which broke
compact which he desired maintained.
Moreover he declares that the compact
was broken unfairly. although this charge
does not appear quite established.
Any how, he has declared war in a card to
the public. which appeared in a CONNER
cial paper yesterday. In this he gave
notice that after a certain date his company
would underwrite hulls at underwriting
rates and not by compact rules.
An insurance man gave the following ac-
count of the trouble: Insurance compa-
nies," he said, 'are always endeavoring to
cut rates to the lowest notch at which they
can make money. The only way to keep
rates al living figures is fer the companies
to enter into agreements TO maintain GER
tam rates for certain time. These agree
ments are called cOmpacts. There are
several of these compacts for instance on
Eastern stuff, on wheat, on sealing. on
hullS, etc.
well, on January 6, 1895. compact was
made on Eastern stuff to continue tor six
months. unless abrOgated by the signatures
OF ten OF the cO-SlRners, or in this case
about third Of the whole number of COM
panies entering into the compact
For some time certain of the parties to
the compact have been satisfied that the
rates were toe high, and that in consequence
that class OF business was going TO New
York. They therefore cast about for relief.
As first measure an agent of known
ability was sent to New York to endeayor
to Induce the companies there to become
parties to the same or similar compact to
that ruling here.
This was J. B. Levison, who. however,
wired that he could not effect the desired
coalition, although number of companies
were willing TO sign The schedule presented
to them.
''Since that dispatch the dissatisfied COM
paules have been endeaVOriDg to obtain the
necessary ten signatures to break the COM
pact, urging that no other course was pos
sible.
This is denied by the majority of the
slgners, among whom was w. Greer Harri-
son Tor the Thames Mersey, who did all in
his power to prevent the break.
For a week the woud-be breakers
headed by the Firemau's Fund and the
British and Foreign companies, have been
endeayoring 10 secure the necessary sigma
lures. but without success up to Thursday
last
ION that day they managed to secure the
required quota. Two of the companies
were represented by proxies, ard 1t is this
which particularly incensed Mr. Harrison,
although the course is regular enough"
ne companies whose signatures were
afhXed TO the agreement abrogating the
compact were the British and Foreign,
Ocean, Western Of Toronto, Canton, Fire
mans Fund, London Provincial, North
China, Home Mutual, Union Marine. u. S.
LIoyds, Prussian, National and Frankfort,
the two latter being, it is said, represented
by proxy.
Even If the two latter were represented
by proxy, il is claimed by the others who
signed that there were ten without them,
so mat their signing in favor of the abro-
CATION or against il was immaterial. But
MI Harrison is hot against the methods
used TO break the compact, and at the meet
ing when II was effected declared open war.
bis position was that since this compact
mad been virtually disregaTded and diSn-
genuously broken down he would disregard
other com acts and take away the business
oil those who had outtianked him.
At the office OF the Fireman's Fund Com
pany There was an attempt made to laugh
at HaTTtsOn'S threats.
What does he mean" they asked, "by
threatening to underwrite after the 10Th
proX. on underwriting principles? Has he
not been doing so hitherto?
las matter Of fact we would have liked
TO maintain the compact had it been pos
SIDE. put 1t was clearly out of the question,
ana IN tnat tile necessary number of COM
panles to break it concurred.
The Thames Mersey cannot do MS much
harm liz underwriting bulls, although we
could protect ourselves by boycotting 1t il
there should occur any necessity for that
step 1t does not do much business in that
line, aud Is limited TO a certain proportion
OF the risk, So that we do not apprehend
much trouble through his defiance"
Other insurance men INTERCEPTED as TO
the situation were not so sure of the lmpo-
teuce Of Mr. Harrison. They SAID that they
considered the only means to keep rates up
TO working standard was to abide stead
lastly by such a compact as the one now
broken. They considered its Dreakage an
arbitrary act, and contrary to the best in
terests Of the insurance business
III course, said one gentleman, I'VE are
accustomed t. strife between the companies.
but 1t is extremely doubtful whether the
abroRation of this compact is not very
unwise act. Ii the parties to 1t did not like
the rates, all they need do was to intimate
tnat they were no: writing at those rates
Whether there was any funny business OF
not In obtaining the necessary signatures
the Tact remains that the precedent of
lightly breaking these cOmpacts is a dan
serous one 10 establish. 1t creates a feeling
OF insecurity, which we are all in teresred
IN preventing. L think, too. that some of
these companies underrate Mr. Harrison's
powers OF retaliation, should he be disposed
to retallate, but l trust that the war will
not be continued to the knife"
All the Insurance men were agitated yes-
terday by the disruption and await develop
nents with uncOncealed interest