The herald., 1894-04-09
THE VITAL QUESTION.
THE CONSIDERATION OF COMPEN-
SATION OF INSURANCE MEN.
Progress of the Commtttee's Report.
Underwriters Awaiting the Prin-
qjpRl TaSsIs = Its
Causes.

says the San Francisco Chronicle. Inter
est in the proposed new constitution is
increasing. The attendance was good,
and the underwriters did not neglect to
indulge their weakness for orAtorical dis
play. The business Of the day was a
continuation of that of Thureday. The
constitution was taken up section by
section. and two parts were wrangled
over and finally adopted. Even when
every section has been adopted and
amended to suit the majority there will
still be q tussle over the adoption as q
whole
The two subjects Of debate yesterday
were the conditions OF competition
among union members and the disposal
of grievances. In the former the prin-
cipsl wrsngle was as to how far one agent
might legitimately compete with an
other, and in the event of unfair advan-
tage being taken what redress the union
would afford the injured man and to
what penalty the offender should be
subjected.
1t was decided to form 8 special grew
ance committee of seven outside of the
executive committee. This special COM
mittee will occupy itself with nothing
else but grievances, and will be bound to
take up a complaint filed by local
member OF the union within five days,
by member outside of the city and
within the state within ten days, and
anywhere else within the jurisdiction of
the Pacific Insurance union within if
teen days.
The union adjourned at IL 80 O'Clock,
to meet again ON Tuesday. Why this
was done no one pretends to cay posi-
lively, but it is tolerably certain that
all hands are feeling apprehensive as to
the outcome OF the debate on the all
important subject of pensation OF
agents. verything else is subordinate
TO this topic, and the discussions hereto
fore are merely skirmishes in which
each side is gauging the others
strength.
1t is very difficult to state in a few
short paragraphs the causes OF an ipsuT-
ance fight which has lasted for years,
and has come up periodically only to be
temporarily settled, but the following
statements, gathered from men on both
sides, explains the situation closely:
There are two classes OF insurance
Offices in this city, managerial and gen.
ersl agency. The former are usually re-
stricted to a single large company whose
head is the Pacific coast manager. This
gentleman represents a large interest,
receives handsome salary and has
contingent interest in the years profits.
His whole duty 10 to secure for his COM
pany the very best business at the very
least risk.
The general agency includes two,
three. four, five or even more companies,
and the head or heads of the agency are
paid entirely by commission on the
business they receive. The controversy
is between the manager and the general
agent. The former says in go many
words: II havs risht to aay how L
shall pay my men. It is best Tor me to
pay my men fixed salary and select
the risks, rejecting anything except that
which the long experience OF my COM
pRny shows to be profitable. | will
either pay salary or appoint exclusive
agents, that is to say, men to whom l
will pay whatever commission l choose,
from whom | will only accept certain
risks, and who will represent no other
company but mine."
The general agent, ON the other hand,
saye: That is not fair deal, you take
the cream OF the business because you
select it and pay higher commissions or
salaries to the men who get it for you,
and you leave US the undesirable. Let
US have an all-around fixed commission
of Is or 20 per cent. fair field and no
favor. Let all the agents stand on an
equal footing"
The objections to doing away with the
compact rules affect botn general agent
and manager. The former, because as
long as they are maintained he has
good show for share of the best busi-
ness, and the latter, because if there is
a cutting of rates his contingent is likely
to be much affected. This question OF
ompensation is the all-important one,
and will have to be threshed out next
week.
There is tendency to yield little
on both sides and thus far satisfactory
results have been attained at each meet
ing before adjournment. Whether man
ayers shall have exclusive salaried
agents or whether fat commission all
round is the vital point at issue.