The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-05-02
ON THEIR RIGHTS.
Fire Insurance Agents
Assert Themselves.
AN OBJECTION TO BROKERS.
San Diego Representatives Send
a Circular.
IN OBJECTION TO BROKERS.
NO DIVISION OF COMMISSIONS.
Local Officers Must Not Handle
Interior and Coast Business
Except on Condition.

Among the majority of the fire insur-
anee offices of this city different impress
sion now prevails as to the status and
rights of the men who represent their
companies in other Pacific Coast cities
and towns than that which held sway in
former years and up to several weeks ago.
Not that the local men undeIestimated or
Intentionally sighted their confreres in
the business, but in the excess of zeal in
the pursuit of the premium dollar they
occasionally overlooked the fact that in
taking risks in interior sections they were
depriving the agent nearer ana more
closely interested in the risk of certain
amount of commission money.
But the man in the interior and coast
towns has. after suffering for some years
in silence the loss of considerable commits
sion money in this way, at last risen mp
and declared himself, and has informed
the San Francisco agencies of the various
companies that he is not leading beatihc
existence on stored-away wealth, but If
lie is 10 continue in the Insurance business
he must have the privilege OF handling all
the business that concerns his district.
The matter is cOnclsely put In the fol-
lowing circular which has been received
by all local offices from San Diego:
We, the undersigned, members of the Board
of Fire Underwriters of San Diego, Cal, as
we'll as all other local fire Insurance agents Of
said city, hereby unanimously agree, from and
after this date, not 10 give our consent for any
fire insurance company 10 write any business
in the territory covered by our commissions,
over its counter in San Francisco or elsewhere.
except through Its local agent here, or by way
OF reinsurance of policies written here; and
we further agree not to represent any COM
paDy that writes such business over its counter
in San Francisco. or in any way except as
above specified.
This circular is signed by nineteen San
Diego agents representing over thirty CON-
panies
"They mean business, too," said we'll
known insurance man. yesterday, speak
ing of the circular, land they are not to
blame for t1e stand they have taken.
You see. for years it has been the custom
for the San Francisco offices to handle all
the business they could get no matter
where the risk was. provided it was
good one. 1t is true that many OF the
offices upon accepting risks from sections
where their company had representatives
would remit to that agent part OF the
commission money.
when that was done the agent could
| have no objection, but gradually this sat
| isfactory custom became more honored in
! the breach than in the observance of it,
| especially as the insurance broker began
| to take hand in the game. To illustrate
| this suppose a capitalist or proper:y-owner
! in San Diego or Los Angeles desired to iu-
| sure. His local agent would demand and
expect, quite properly. too, his legitimate
| commission. The property-owner would,
| instead Of dealing with the agent. put his
business in the hands of a San Francisco
broker, who would place the risk with an
office here. collect the commission and
divide it with the property-owner. The
broker, with lots of business Oh his hands,
could be we'll satisfied with $40 or $50 out
of $500 commission. while the agent in a
district where grass is rather short any,
| how would absolutely need his whole COM
mission TO make both ends meet.
"This San Diego business is a case in
point. 1t came about through the insuring
of the big Brewster Hotel there. Fully
| 100000 was placed on that. Now the
| premium OF that amount would be S2650
and the commission on the same would be
nearly $500. As a matter of course the
/ Sdu Diego agents were lOohluR lor tuaL
plum, but strong effort was made to place
it here through broker, who would have
| been well satisfied with S75 for his labor.
| The balance would have been returned to
| the owners. That risk was hawked all
about this city, but the local offices finally
decided to protect their San Diego agents,
and they at last secured the risk aud got
their commissions. TWAS then to prevent
the possibility of losing any such prizes
in the future that the agents in San Diego
took the action they did,"
Hugh Craig of the New Zealand Com
| PAW smoke emphatically in favor of the
companies recognizing the rights of agents
in this matter. He was sure that a good
majority of the local Offices would stand
by the representatives in various interior
districts in their efforts to protect them
selves in affairs closely touching them.
The representatives of several other
companies expressed themselves in the
same vein. 1t is not only from San Diego
that the wall of protest has been heard,
but Los Angeles and the northwestern
cities have been heard from. and agents
there want their own trade, and insist
that the San Francisco offices must get
over that indifference as TO whether the
interior and coast agents eat sandwiches
on the commission they don't get. while
the San Francisco broker INDUCES In
French dinner on the commission be does
get. On account OF the decided stand they
have taken and the feeling of sympathy
aroused in local offices they NAV now rest
easy, knowing that the latter will 'sin no
MORE"
TRANSFERRED THE AGENCIES.