The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-02-25

Boycott OF Nom Jvnson Companies Causes
Friction Among Underwriters.

Boycott ofNon- Unson Companies Causes
Friction Among Underwriters.
Since the old Pacific Insurance Union
has been succeeded by the Underwriters
Union quite struggle has been going on
between II and the agents of the several
insurance companies. Most OF the trouble
has been over the non-intercourse rule.
The Underwriters uBion has tried 10 en-
force the rule 10 compel the agents TO
only take risks for companies inside the
combine. For instance, the Bailey block
might be insured in half a dozen differ
ent companies. and three of these might
be non-union companies. The combine
desired 10 have ali the risks in union
companies, but the agents refused TO ac-
cede to the demand. Meetings OF under
writers were held. in Seattle, Portland.
Tacoma, Spokane and. Butte. ard resoiu-
tons adopted in opposition TO the enforce
ment OF the non-intercourse rule.
All the agents are keeping up the rates
of the Underwriters Union. for no dis
position is shown to reduce rates. What
they seek is uniformity of rates AT the
same time 1t is claimed that the rates
have been reduced. inasmuch as buildings
that are provided with convenienees Tor
putting out fires will be charged a lower
rate than those which have no such ap-
paratus.
The rules of the board of fire under
writers provide that the basis. or Key
rates. must be approved by two-thirds or
the members. Insurance must be written
at board rates and in accordance With
board regulations. The penalty for &C
cepting a rebate is cancellation and pro-
iabftfon 10 write or place within one year
the risk or risks covered, and the rate or
rates affected shall be Immediately IN
creased to the extent OF ID per cent. AL
CONDENSATION must be by commission.
not exceeding Is per cent. on net premi-
ums. In San Francisco. however, al
though the brokerage is 10 per cent, reg
uiar salaries may be paid 10 regular EN-
pIoyes of a member. when located IN MS
main Office and engaged exclusively OF
partially In soliciting. The hoh-ih'ef-
course section is as follows: No meni-
her shall permit any company under ms
control 10 be represented by the agent OK
any company not represented in this
boarf. nor shah he reinsure, nor accept
from. nor place or cause 10 be placed.
whether by reinsurance or otherwise. any
business in any company or agency not
represented in this board. except Win 1ne
consent of the executive committee IN
presence of non-board or illegal compea-
ton. a member may protect his business
AIT any rate of premium necessary. ana
not otherwise, provided he immediately
renorts the facts to the executive COM
maitee-,
It is claimed that there was only very
small profit in the insurance business dur
ing the year 1894. The average loss
ratio on tho Pacific coast was % per
cent. Premium receipts fell off in every
section, as compared with the figures Tor
1888. The San Francisco premium IN
come showed a decline of $4,000; Cali
fornia. s4a5.Ooo; the Coast. S3S.s0. The
total premiums received in 1884 We're
sl0,47i057, and out OF, the sum was PAID
q l9s. 227 for fire losses. The risks written
during the same period were SSes is2'ciS.
The expense of keeping up office. adVer-
Using. paying salaries and commissions
add up nearly 50 per cent. more. From
this showing. it Is claimed by the M
suuanee men, that there is nothing which
warrants any general reduction OF pre-
MUM rates or juStifies rate war. IL ~
claimed that unless conservative ard
feasible methods are adopted that there
will be no money In the business for
the current year; on the contrary. 1t Is
claimed that the rate war would show
balance on the wrong side of the books
at the end of 1895.