The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-29
MAY YET CAUSE ITS DEATH
LOCAL AGENTS ARE ANxEoUsLY
AWAITING FOR DEvEL oPMENTs. /
Some Delays on the Natural Gas
Main Extension ON Account of
Lack of Fittings and CaIlxfng-aI.
A. Parsons Made Good Sales on
the Omaha Market.


companies have signif1ed their intention
of Withdrawing from the compact and
joining the Home and Phoenix in their
fight upon the recatcitrant Rlembers,
of which there are several. The with
drawing members are the Fyreman's
Fund, represented in Utah by Hugh
Anderson, the Commercial Union, repre-
sented locally by Rogers, Walker & Co.,
and the Home Mutual, Of the w. E..
Shledley & Co. agency. These COM
panies take the same stand as does
General Agent Magill. of the Home and
Phoenix, and their notices of with
drawal have struck the Union in vital
spot. Unless an early agreement can
be reached the compact will undoubted-
ly go to the wall. for with five Of the
great companies outside no union can
successfully combat or the old lines
1t is very evident the Home and
Phoenix have been cutting into the
business of the union companies and
many of the latter have decided to get
out onto an equal footing. These re-
firing institutions are rated among the
the coast. and it is believed, by some,
that their action will be a death blow
to the tottering compact. G. T. Null
Inns, manager of the Commercial Union,
filed his notice of withdrawal from the
union at meeting held on Saturday
last. The Fireman's Fund and Home
Mutual filed their notices of withdrawal
with the secretary on Monday. Accord
ing to the rules of the organiza ton
thirty days notice is required for the
withdrawal of company from the
union, and the notices filed by the three
companies mentioned will not take
| effect until the expiration of that time.
! Then the trouble will commence. The
insurance men fear the result. They
do not hesitate to say that the COM
pact is on the verge of disruption, and
the dissolution Of the Pacific Insurance
Union means rate war which only the
strong companies can survive.
| The Pacific Insurance Union has been
in existence for over ten years. 1t COM
prises all the so-called ''old line" fire
and marine insurance companies doing
business on the Pacific coast, most of
which are eastern companies and those
of foreign birth, the latter being organ
lied principally on British and German
capital. The company was formed to
facilitate business and to protect the
interest of the companies. A code of
rules and regulations, designed to aid
and protect the insurance business and
maintain a uniform system of rates. is
| in vogue and it is the violation of these
rules by some of the companies which
! has placed the union in its present en-
barrassipg situation.
+, There are two main points of dispute.
The union makes schedule of rates.
1t employs corps of surveyors who at
tend to the classification of all the cities
and towns on the coast and who survey
and classify every building in every city
and town where insurance is written.
Rates are. Of course, determined by the
risk assumed, and all the companies
which are parties to the compact are
bound by the rules of the organization
not to accept any insurance at premi-
ums below the fixed rate. Some of the
companies have been offering rebates
to secure business, and it was the ce.
tain knowledge of this fact that caused
Arthur E. Magill. general agent of the
Home Insurance company, of New
York, and the Phoenix Insurance
company, of Hartford, to with
draw from the organization A
committee was appointed to inter.
view Mr.. Magill and report on the
errors and inconsistencies in the rules
of the union, that Mr.. Magill might ,be
led back into the fold and the union
put on a better footing. Thus far the
committee has accomplished nothing.
The other point in dispute exists in
the limitations IN the rules which
specify what commissions and salaries
; shall be paid to the men who work
for business. Hugh Craigh, of the
/ New Zealand, and W. j; Landers. Of
the Sun, were each fined $3.50 for al
legged infractions of the rules. They
would not pay the fines and pending
an investigation the fines were sus
, pended. 1t is generally admitted thai
!. the fines will not be enforced, for it is
! believed that such an action on the
part of the union would induce Craig
and Landers to withdraw. These mat
. tiers have already been told at Length
in the public prints, but no serious sus
picion of the diSintegration of the com
pact was entertained. Now three i'm
portant companies have withdraw
from the union. Following the example
of Mr.. Magill they have put their vetC
to the practice Of rate-cutting which
, in, and have chosen the privilege o.
being footloose, that they might dt
. openly what it is charged other com
panies are doing secretly and illegiti
mately.
Inasmuch as it is necessary to give
thirty days notice OF intended with
drawal, the end is some distance away
and the local agencies of the three
companies which have joined the
} Home and Phoenix are sending thei
business through the Salt Lake branch
of the compact. Captain DonnelI yes
terday expressed the opinion that tht
entire affair would adjust itself within
the next week or so. This is but ONT
of the periodical eruptions which al
> n
the fight of two years ago. None o
the companies can afford to enter int
a rate war and for this reason the
members of the union will be very
likely to placate the disgruntled com
panies. Several meetings have beer
: held this week at San Francisco, bu
no agreement has been reached.