The morning call., 1894-12-05
ROM THE PACIFIC UNION.
" Phoenix" and Home" Conn
panieS Have Withdrawn.
ALLEGED VIOLATIONS OF RULES.
Mr.. Magill Sends Letters of Instruc.
ton to Agents and Mr..
Whiting Explains.

The Home Insurance Company of New
York and the Phoenix Insurance Company
of Hartford have Withdrawn from the
Pacific Insurance Union and will hence
forth act independently Of the rules gov
erning the compact whenever occasion
may require.
The official withdrawal took place yes
terdaY. This action, with its attendant
circumsta nces, is not direct declaration
of war on the union as an organization,
but on certain members of the union who
have been caught in acts of seal ping" by
the agents Of the Home and the Pn9nix
companies.
These concerns represent total ca pital
of 5000, OO0. and their secession from the
union will doubtless cause much uueasi-
ness among other companies, foreign and
domestic.
Arthur E. Maglll, general agent for the
two companies named. has issued a cir
cular letter of instructions to all agents of
the Home and the Phoenix companies, the
most important portion of which reads as
follows:
Our membership in the Pacific Insurance
Union having terminated to-day we take this
opportunity OF explaining our prospective
policy, and the position we purpose assuming
as regards that association. To prevent mis-
conception we wish Ii 10 be understood that as
the chief object of the union is the promotion
OF Insurance business by a sound and equitable
administration, without any ATTEMPT AT mo-
nopoly or the extorton of unfair rates, It has
our unqualihed approval and VIII continue 10
nave our cooperation.
Our withdrawal FROM the union is in pur-
suance OF notice we gave on joining (and for
other reasons not necessary 10 mentiOn), and
WI lie we deem 1t prudent step for the good
OF our companies (dS we'll as all concerned IN
insurance matters) we consider that the Pacific
a LIDS nd
toriouS associations; that its affairs nave
been ably and:as far as possible, Impair
TALLY conducted, and although it may
not have worked with complete satisfaction IN
some Individual cases, 1t has certainly educed
better ana more uniform methods and placed
fire Insurance. throughout the Pacific Coast on
a more substantial basis Having no grievance
against the union We do not desire to detract
from the good purposes 1t seeks TO accomplish
nor 10 encroach on the business of any Of its
loyal members except on equal terms. We
shall continue our adherence 10 its rates and
regulations so far as they may BE- known to us
and 80 long as there shall be no improper in
reference with our interests. we shall deViate
only when 1t may appear really necessary 10
preserve our business; but If the union any
of its members should pursue or sanction any
course likely 10 prove detrimental TO the inter
ests of the Home ana Phoenix companies you
VIII be duly Instructed as circumstances may
require and allowed 10 use a reasonable dis
erection. Until such occasion shall arise, how
ever please do not ask our approval of any
departure from the ordinary course.
1t will be observed that Mr.. MagilPs
letter is very conservative and guarded in
its phraseOlOgy. 1t gives no explanation
of the reasons for the NEUTRALITY-SUSPICIOUS.
they are presumed to be ample 10 justify
the action-but the announcement of the
termination of the membership Of the
Phoenix and the Home companies is ex-
plicIt and emphatic.
James W. Whiting. the agent for the two
companies in this city, does not hesitate to
state the reasons that brought about the
dissolution. Mr.. Whiting was seen at his
residence, 100 Franklin street, last night,
ana in an Interview on the subject of the
withdrawal he said:
'Yes. the Home and the Phoenix COM
panies are out of the Pacific Insurance
Union. These companies and their agents
have faithfully lived up to the rules that
were adopted for the compact The union
itself was good thing on principle both
as regards the protection of legitimate
business and the reduction of rates. But
we discovered some time ago that other
companies were scalpiDg us right and left,
particularly foreign companies.
In many instances that have come I'M
del my personal observation the agree
ment for commission of Is per cent to
brokers was violated. AS high as % per
cent has been paid to brokers for pushing
business and interfering with our Gus
toners.
And that is not all. There are hun
have actually been paid to the assured.
Now. this sort of thing couldn't be toll
Grated any longer.
"Our companies have suffered a great
deal in the country by this underhanded
work, and Tor that reason we have decided
to meet all such cuts and moves by any
and all companies wherever they occur.
I'VE don't propose to reduce rates-un-
less forced to-" he continued. I'VE shall
simply protect ourselves and our business
against the scalpers, and for that reason
our companies have Withdrawn from the
union, so as to be free and unhampered
by the rules that would tie our hands. but
which do not seem to tie the hands OF
some other companies. Some Of the
foreign companies agents claim that they
have not violated the rules. but / have run
across many cases where they have offered
higher commissions Than the rules of the
union allow, and they have even gone so
far as to give rebate to the assured in
order to take away our business"
Last night several prominent insurance
men expressed it as their opinion that the
action taken by the Phoenix and Home
companies will result in a general disinte-
CATION Of the union and that an Insurance
rate-war is imminent.
1t is asserted that not less than 13, 900, 900
l. 1l,a "A