The San Francisco call., 1895-12-18
Insurance Companies May De-
termine to Return to Did
Rates.
DELINQUENT BLACKLIST.
Considerable Progress Made at One
- Meeting-But Two Features
Undecided.

The new Pacific Insurance Union held
meeting yesterday in the offices OF the
defunct compact, at California and Battery
streets. and made considerable progress IN
adopting a constitution and bylaws. In
fact sections of the whole constitution and
general rules of any material consequence
were adopted. The general managers were
uuite largely represented, and remarka-
Bile feature of the meeting was the absence
of agitation or opposition from any special
quarter Harmony prevailed throughout
the proceedings, and it pointed toward the
formation of an iron bound compact which
will place the badly demoralized insurance
rates upon their former stiff standard.
The new compact decided to call itself
the Board of Fire Underwriters OF the
Pacific, IN which membership shall consist
exclusively of the principal representatives
of insurance companies transacting busl-
ness upon the Pacific Coast.
The management will be in the hands
of a president, secretary, treasurer and
executive committee of nine members,
The plan OF operation is similar to that of
the old compact
To prevent rebating section of the con-
stjtutlon provides that mo rebate, dis
count, commission abatement, pecuniary
or other valuable inducement shall be paid
or offered directly or indirectly to any
insured person, firm or corporation. or TO
his or their agent"
A prominent underwater stated after the
meeting that sections 3 and of article Y
OF the constitution would be acted on to-
day These sections were regarded as the
particular points to be settled, so they
were made the special order OF business
for an adjourned meeting to-day. IF we
can agree on these points, he said, 1.-THE
compact is an accomplished fact. There
will be a very large representation at to-
morrOw's meeting, and more than likely
all the managers in the compact will be
present.
Section deals with the compensation Of
business. 1t provides as follows:
No compensation for business shall be al
lowed other than by commission, and then
only to.egents, members and duly certified So
licitors and brokers, and not exceeding in the
aggregate Is per cent on the net premiums
collected and no other charge, payment or al
lowance OF any description Will be admitted
unless the same is supported by voucher
bearing the stamp of the secretary OF the eXecu-
tive committee, save and except as follows:
Exception a, san Francisco-San Francisco
agents may be paid ~ per cent additional
commission on ell san Francisco premiums
upon which brokerage or commission shall
actually have been paid TO others, and may be
provided with deskroom in their principal
offices, but not elsewhere.
Exception B-That in the cities of Portland,
SeltLake, Sacramento, Stockton, San Jose, Los
Angeles, Oakland, Alameda and Berkeley, and
that portion OF Alameda County comprising
the townships of Oakland, Brooklyn and Ala
media, agents shall be compensated by commits
sion only and not exceeding in The aggregate
20 per cent ON business located within the
limits of said cities and townships with the
exception OF farm business and growing grain,
on which 20 per cent commission may be al
lowed), on the net premiums collected, and no
other charge, payment or allowance of any de-
scription will be admitted unless the same is
supported by voucher bearing the stamp OF
the secretary of the executive committee.
Exception C-That upon farm business, as
defined in the general rules, and on growing
grain, 20 per cent of the net premiums may be
allowed.
Exception D-The rate OF commission that
may be allowed Oh business interchanged by
and between members and agents is expressly
limited TO 10 per cent, whether on premiums
for direct business or reinsurance.
Section deals with the collection of
premiums, whether in cash or for credit.
The abuse of the credit system has been
SO great, and the companies were so i'm
posed upon in the last rate war, that some
members are ready to confine business 20
cash transactions. Still the majority OF
the underwriters think that the insistence
OF cash is too drastic measure, and if the
cash clause pass at all it will be only in d
modified form and as q compromise meas
ure to be tested perhaps in some central
place before becoming general, if at all.
In the general rules it is set forth for con-
slderatlon that premiums shall be due and
payable in the principal offices of members
not later than the fifteenth day of the Sec
ond month after the issue of the policies,
on which day, if not paid, policies must
be Cancelled. On the same day it Is
proposed that all members make lists OF
definduents to be filed with the executive
committee as a black list, and that no
member shall thereafter grant insurance
on the same or other property of such
delinquent, until notified by the executive
committee that the disqualification has
been removed.
e Settlement may be made for premiums
of insurance covering farm property and
public property by notes bearing interest
at not less than Z per cent, or by warrants,
provided that no such note shall mature
later than the expiration OF the insurance.
To this clause the following amendment
was offered at yesterdays meeting and
will be acted upon to-day:
Premium collections: Excepting in the
case of farm business, where settlement may
be made by note bearing interest at z per cent,
in the cities OF San Francisco, Oakland, Los
Angeles, San Jose, Stockton and Sacramento
policies or covering notes shall not be de-
1iyered TO the assured his agent, unless in
return for the premium paid in spot cash.
Thirty-seven companies are taking part
in the compact deliberations, the only
Offices remaining neutral being the CONT
mental, Northwestern, Franklin, Williams
burg City and Brown Craig companies.
The Continenta's policy is to keep out Of
unions unless it have its own way. The
other concerns are small in com parison,
so that it may be said that all the live
companies are united for compact, even
at the expense of views held in former dis
agents. 1t was stated yesterday by a
general agent that the rates will go back
practically where they we're under the old
compact, the only exceptions being San
Francisco and the larger coast cities
equipped with water systems and fire de-
partments. where a small reduction will
be made as the new standard rate.
Words of Wisdom.
Dofo ho af