The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-08-27
THE LOCAL BOARD
Underwriters Associate To-
gether for Protection.
RATES REDUCED 20 PER CENT
Mr.. Alfred Stillman, of the North
west Association Explains
the Rate War.
RATES REDUCED 20 PER CENT

Last week this city had visit from the
gentleman who attends to the fixing of
rates of insurance for the combine known
as the Northwest Insurance Association.
AS at the time the attention of Asto-
rians was held by the great annual fete
the gentieman's visit was unrecognized
except by a few of the leading local un-
derwriters, the head men of the fire de-
partment, the engineers of the water
works and a representative OF the Asto-
rlan. Mr. Alfred Stillman is bright
associations, the one named above being
one of them, and is destined to reach
the top round of the profession.
True to his promise to return this week
Mr.. Stillman arrived Sunday and has
been in consultation with the local in
surance men since. The result of the
representations made by the local insur-
ance men is that the companies in rec
ognition of the enterprise of the citi-
zens of Astoria, and of the workmanlike
manner in which the improvements are
DClllS Lltue III lll6 Cllyt nave
the completion of the improvements by
reducing the rates of insurance in the
business portion of the city twenty per
cent. 1t is not expected by Mr.. Stillman
that the water will be turned on through
the new system for several months and
he insists that as compared with other
cities Astoria will be charged too little
from now until the new water works
are finished Mr.. Stillman was induced
by the urgent appeals on behalf of their
city of the resident agents to recommend
to the companies the immediate reduc-
ton of the rates one-fffth and his recon-
mendation has happily been adopted by
the managers in San Francisco. Asto-
ria's local insurance men have always
been regarded as among her most enthu-
siastic, energetic and loyal citizens, and
this last effort on their part fully in
dorses the opinion heretofore expressed
of them.
During his visit last week Mr.. Still
man, whose powers of observation have
been cultivated by his professional work,
was much impressed by the actual i'm
prCvement in Astoria during the last
four or five years, and by the apparently
brilliant future before it.
At a meeting of the resident agents of
the fire insurance companies held yes
torday, board of underwriters for As
torla was formed, of which B. VanDusen
was elected president and Horace Thing
secretary. The object of the board will
be to secure such protection of insurance
agents as is deemed desirable by the
real estate men.
How are insurance matters generally,
and what is the outlook for business?'
was asked Mr.. Stiflman.
"The insurance fights in Oregon, Wash
lngton, Idaho, Montana AMI Utah are
now practically settled. Arizona never
had any trouble, and but little difficulty
was had in Nevada. In California the
profits in insurance for two or three
years have probably been wiped out.
"The insurance business generally is
probably better than it has been in any
year in the last twenty. Should anything
happen during the remainder of the year
to destroy these profits steps will be
undoubtedly taken by the companies
themselves to shape things in California,
but as matters now appear the local
managers there will be allowed to work
out their own salvation"
what is the difference between a rail-
road rate war and an insurance rate
WARP"
"In a railroad rate war no money is
paid back on money once earned-the
roads simply pocket a loss during the
cut. The difference between the tariff
rates and the cut rate is the only loss
they endure. When a railroad war is
finished they so right back to paying
prices. They may even make rates
little higher to make up the losses.
"An insurance rate war reduces rates
on existing policies, returns premiums
that have been paid, which is equivalent
to the return of profits already earned.
Policies are issued for three years at the
cut rates which cannot be changed when
the rate war is stopped, and large num-
bers of such policies outstanding when
hostilHies cease reduce the amoInt OF
insurance issued the first year thereafter
at profitable rates and thus reduces the
incomes Of the companies In two ways.
while losses remain the same. 1t will
therefore be over three years after rates
are restored in California before the
can hope for the profits they
formerly had When rate war ceases,
as all rates now have to be made on