The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-01-13

Insurance circles are still much dis
tug-bed over the probabilities of a. SER
ious rupture in the Pacific Insurance
union. and the work preliminary to
the formation of a local board of I'M
derwriters, which is to have control
of the local Institution in the event of
the compact going out of business,
is progressing quietly. Several of the
agents have expressed the opinion,
however, that the board will not be
organized, even in the event of a rup-
rure at San Francisco, one of the rea-
sons being the avowed hostility of a
number of the general agents to the
whole proposition. Another meeting is
scheduled for Wednesday afternoon and
the friends of the proposed organiza-
ton al'e of the opinion that things will
be SO arranged that with the slip of
the lease in San Francisco the Salt
Lake agencies can take up the business
of the union where it leaves off and
still continue in the same old rut. In
this they may be sadly mistaken, for
the same feelings prevail in insurance
circles here that do in San Francisco
and there is that same desire to rule
the roost. Salt Lake agents are con-
stituted on about the same lines as
are the general agents and it will be
as difficult to get them together It is
an open secret that two or three Of the
local people will decline to take part
in any future meetings. except under
certain conditions, and those conditions
are not very likely to develop.
Reports received from San Fran
cisco are TO the effect that negotiations
are again on looking to d settlement of
the difficulties which surround the COM
pact, and a committee IS al work
drafting another constitution for the
government of the union and a set Of
bylaws which are intended to remedy
all existing defects. This committee
also has included in its lists of duties
the dealing with the recalcitrant mem
beers Of the union, but inasmuch as
President Mann has named both Ian
deTs and Craig as members of the
committee il is not generally believed
that the souGht-foT result will be at
tanned. 1t was the refusal of these
agents TO pay fines assessed against
them for infractiCus of the rules of
the union that LED to the entire trouble
and precipitated the present crisis. 1t
is openly stated that the fate OF the
CompaSt rests with five foreign Offices
and if the general managers of these
companies do not order a cessation of
the disioyal practices, the local com
panies in the compact may combine
and use the knife not sparingly. Even
should the reorganization be effected,
however, the agencies throughout the
district controlled by the Pacific In
surance union will haze cause to
mourn, for it is proposed TO make a
uniform commission of 10 per cent. The
San Francisco Examiner, a strong
union paper, takes z, different view of
the situation and contends that the
union is safe. In its Thursday morn
ing issue it has the following to say
regarding the last general meeting of
the union, held on Wednesday:
The Pacific Insurance union is safe.
There will be no cutting of rates, and
before many days it is very likely that
an entirely new constitution will have
been adopted, and the insurance men
will be sailing, for a time at least, in
smooth waters.
"On Saturday. and again On Tuesday,
the members of the union tried to
hold meetings, but on each occasion
adjourned a few minutes after meet
ing. Yesterday, however, they were in
the mood for business, and as soon as
the chairman had called them together
a spirit of cooperation manifested IL
self. and it being the opinion of all
that the compact should be held TO-
getller. the only question TO be decided
was how TO draw an agreement which
would be acceptable to all the mem
bers.
"As a means to this end a committee
of six was appointed. This committee
consists of John w. G. Cofran, Hugh
Craig. William Landers, w. j. CALI
ham. Charles D. Haven and Robert
Dickson The committee has several
matters which viii occupy its most
serious attention between now ana
Monday, when 1t viii make It's repor!
The first consideration viii be simpll-
ffration and a curtailment OF the con
stitution. At present the constitution
Of the Pacific Insurance union, with
IFS old and new amendments, mis-
ffty-eieiat closely printed pages. Inc
constitution of the United States OF
America. occupies just twelve pages OF
equally closely printed matter Ihen
the committee viii take up that long
train of evils, of which the following
are The principal: Relating excessive
commissions to agents and abuse %
credits on premiums. Perhaps tbs
most important task for the committee
will be the devising of a safeguard py
which the whole premium shall be col
lected from the assessed ana PAID into
the offices of the insurance company
Without the intervention VI DIOhSIo VI
solicitors. and possibly by some sort OF
clearing house method.
~ matter which is Of vital interest
to the solicitor, broker and agent Is
the proposed Ieveling of commissions
Under the present constitution tnt
commission varies from 15 to 20 pei
cent, according to the class of bust
ness. Now it is proposed TO make Z
uniform rate for all kinds of business
or not more than Is per cent.
The annual figures of the Fireman
FUND of San Francisco, just made
public. show assets of s., 240. SOL; a re-
insurance reserve of 81, 222, 299, and net
surplus of $S46, 267. The premium in
come for 1894 amounted to $I,763, 009.
The Protection Mutual Fire Insur.
ance Company of Chicago has just is
sued its annual statement showing
assets of S79,SS9; reinsurance reserve
S37,2S net cash surplus, $40, 00S. The
assessment resources Of the company
give added security of $685. 54.
The Buffalo German issues its an
nalsj statement showing assets of ST.
702 4S9: reinsurance reserve, $370,71
NET surplus. 81, 0e2,62S. The assets and
s,urplus were both increased by large
sums on practically the same volume
Of business transacted during the pre-
viol1s year. In fact the reserve was
Increased but S17.07.
NEW CLEARING HOUSE MANAGER