The morning call., 1894-12-06
THAT THREATENS THE UNION
DislOyalty of Members Made
Magill Resign.
THE FUTURE VERY DOUBTFUL,
Magill Is In a Position TO Make
Matters Lively for the
Other Agents.

Policies aud losses were forgotten yes
terday by the insurance agents in the pres
ence of the upheaval caused by the with
drawal of Arthur E. Magilps two COM
panies from the insurance compact
The daily routine was cast aside for mat
tiers of graver moment demanding imme-
date action that the insurance men mi CHIT
know where they stood before night,
and also that the Pacific Insurance Union
might be saved from decentralization.
Impending danger seemed to be in the
air. so the managers were called together
shortly after 10 o'clock in extraordinary
session TO discuss the very seriously dis
turbed situation. The morning hours were
given to the consideration of Captain Ma
gllPs peremptory withdrawal from the
union, but even then no decision was
reached. A second or adjourned meeting
wSs held in the afternoon, when more than
two hours were spent IN coming TO a con-
clusion.
The managers were rettcent as TO what
took place at these sessions. 1t was
learned, however, that the resignation, or
rather withdrawal. of Magilrs two COM
panies was accepted, after which amend
ments 10 the constitution having some
bearing on questions involved in the pres
ent crisis were formulated and adopted.
The exact nature Of the amendments was
kept secret. though in a general way the
announcement was made that they will
make union rules more binding and neces-
state at least greater caution on the part
of members who make rebates.
1t was also decided to pay no further al
ten ton to Magill than TO appoint commit
tee which will confer with the independent
agent and endeavor to bring him back
In explanation of his attitude toward
the union, Magill stated that he could not
approve of methods which that body en-
plOyed in regard to recalcitrant mem bers.
Such thing as imposing fine Tor breach
of rules and then ueglecting to collect it
needed no comment. If memb erS can con-
tinue to give big commissions or pay re-
bates on policies without fear of punish
ment, the union has ceased TO realize its
objects. Such is the argument advanced
by Mr.. Magill, who iustilie3 his action &C
cOrdinglv.
The real grievance is the union men,
bers are not all living up to their compact
with one another regarding payment of
commissions and rebates 10 secure bust
ness. Every member Is only too we'll
aware of the fact. and the natural conse-
quence is more dissatisfaction than is good
for prospects OF unity.
As published exclusively in THE CALL,
Arthur Z. Magil, agent for the Home In
surance Company of New York and the
EGuiA VI WILUuI6W lIOm Tie
compact and determined TO transact bust
ness as ii suited him best in future. His
withdrawal is regarded with concern by
the other agents. who fear he may cut
rates, and by so doing start an insurance
rate war. Two years ago he sent in his
letter of resignation to the union, to go
into effect at any time if rebating was con-
tinued by agents. At the time managers
said, with sbrug, at is merely bluff"
But they were surprised to learn that Ma
gill did not forget his resolve, even after
the lapse OF two years.
He declined to discuss his withdrawal
yesterday. saying he would not state his
reasons nor tell what he intended doing.
which latter fact would be received with
interest by the agents, as Magill is in a pO-
stion to make it lively for them.
His two companies combined wrote poll
cies on the Pacific Coast in 1898 that
amounted to $3SO,0O0, and this year their
business will come near 10 that sum. So it
can be seen that they cut an important
figure in the coast insurance business.
Manager Magill is not the only one DOW
out of the compact. Since October l
last Manager Lands of the Guardian COM
pany and Craig of the New Zealand have
been virtually out OF the union, and Man
ager Turner of the Northwestern National
Company is another free lance. Turner
began cutting rates Immediately after
leaving the union, but he did not do much
better, and went back to standard rates.
Neither the Guardian nor New Zealand
is cutting. as they continue TO live in
harmony with compact rules. unless in one
or two features which have no bearing on
rates. Craig refused to sign the new con-
stitution removing salaried agents from
Los Angeles. Portland and Oakland, be-
cause in this particular it positively op-
posed his company'S method Of transact
ing its Internal affairs.
The union will continue to exist as
usual" said member last evening, land
l don't believe there Is much fear of a
rate war for the reason that the business
is not remunerative at present rates. 1t
would be folly TO cut at this time The
union has determined 10 stand together
and strain every effort to stop this bad
work of giving rebates and paving ex-
oTbitant commissions. AS far as Mr.
Magill is concerned he cannot do business
with agents in the union. and he must
stand expenses ofsurveying. underwriting,
etc. No doubt about 1t. he was driven to
take this step by the persistent breaches
of rules by few mem beTS"