The herald., 1894-12-28
THE INSURANCE MUDDLE
NO RATE WAR PROBABLE IN Los
ANGELES.
A Local Agents Opinion Of the Pacific
Insurance Unions Internal
Lissensions.

Louis z. Vetter, one OF the leading local in
surance sgents. when questioned yesterday re-
gardng the dissensions in the Pacific Insur-
ance union in San Francisco, said:
"rhe trouble in San Francisco has had no
effect as yet local busi moss, nor is it likely
to. other than create some gossip and tenn
porary feeling of uneasiness. The COM
pa1ies that have given notice Of with
drawal from the union are represented
here by men, who up to the present time,
have done nothing in the way OF cut
ring rates. and unless the condition OF things
becomes more acute than now appears, are not
disposed to make reductions.
among the companies that have gone ont
are several OF the largest in the business, put
The msjo-ity are OF lesser rank. IL Is nSeiy
that before things get BADLY demoralized lana
as yet in Los Ang es there is no tendency IN
that directon) there wi b9 q remedy in the
shape OF d thorough reors anization OF the
union.
"fhere is boseft for the assured as well az
for for the assurers, in adequate premium rates
such as are sustained by the Pac nc insurance
union, for the reason that the companies there
by get q reasonable income from their busl-
ness and are the better able TO stand losses
which are constantly oceuringI
FOR the company to engage in general war
OF rates at the pres ent time would be a detri-
ment to a parties concerned; IL would be- In
short, ruinous and idiotic policy The effect
on the insurance business in this town, so lar
us he men engsged In it are concerned, would
b. disastrous. The local agents get fixed part
OF the premiu ms on the policies they write as
compensation for their services. Reduce the
premiums and you cut down their incomes
tnoue of which are too large at present.. The
increase in business resultant from lower rates
would not make up for the loss iii premiums.
The result would be that the good men in the
business would be driven into other csllings,
and their places filed by cheap and irrespon-
sible parties. The insurance men of this oity
rs body, are men of ability and high charac-
ter; they are men who look after The interests
OF their customers as well as Of their employers,
aud to put them on shorter grass would be to
compel them to seek pastures new. The prop
erty owners interests would not be subserved
by such policy; no more would the in terests
of the insurance companies.
ION the 18th of November general reduc-
tion of rates was conceded to Los Angeles by
the Pacific Insurance union. This cut was
especially heavy in the case OF dwellings with
in certain distances of fire engine houses ano
hydrants. This reduction was made in recog-
milton OF the general Improvements in build
ings, streets aud fire fighting equipments. Los
Angeles is not very liable to big fires owing to
the absence of strong winds, but the fact that
very considerable progress has been made by
fires in such buildings as the Bryson aud SLOW
ell blocks, emphasizes the risks that the insur-
ance companies are constantly menaced with.
mo, do not consider an insurance rate war
here probable, nor do l consider that 1t would
| be iusliied. -