The herald., 1895-04-11
THE INSURANCE BATTLE
The Local Agents Are Striving to Secure
Peace
An Eedeavor Being Made to Perfect the Organ.
ization of a Local Board Of Fire
Underwriters

The probabilities of a really first-class
insurance war in Los Angeles are decid-
edly bright just at present. but by Satur-
day at II o'clock noon, the war cloud may
disappear and the rates may be back at
the old figures at which policies have
been written here for several years past.
For some six weeks past agents of both
board and non board companies have
been writing business at rates about one
half those that prevailed January 1st.
As soon as the first cut was made here by
a few agents the rustic for business COM
menced and special concessions were made
on all sides to- secure desirable risks.
Special canyassers were put out by u
number of agencies and wherever a good
FISK could be had the rates were slashed
without any regard for the profit of either
the agent writing 1t or the insurance
company taking it,
With the opening of the present week
the struggle commenced in earnest. With
| several companies the pronuDcamento
went out from the local agencies that
rates would literally be no considerat on.
Insurers were given to understand that
business was what was desired, ana that
at all cost it was going to be secured.
This made some of the old and well es
| tablished agencies in the city quite weary.
The cuts that had already been maze
were ruinous, and the proposition still
| further demoralize them was received
| with alarm.
So q movement was at once put on loot
| to organize a local board of fire under
| writers for the purpose of securing unity
of action among all agents for mutual
| protection. A paper was put in circula-
| ton by some of the leading agents which
was signed by about forty of the local
| agencies. The paper was an agreement
| to join the local board, but by the condi-
/ tions expressed in it no party signing
was bound by its terms unless all agents
signed it, ,and the ruinous slashuing of rates
ceased
The first meeting as a result of the forty
! odd signatures secured to the paper was
| held yesterday afternoon at the rooms of
the board OF trade. There were about
J forty-fve agents present. There were
about sixty authorized insurance agents
| in the city and about as many more curb
| stone brokers.
d. S. Walton presided over the meeting
| at the board of trade rooms. 1t was quit,
lengthy session. Several agents exi
pressed their views upon the existing
condition of affairs. Everybody that spoke
bewaled the condition that things we're
| in. The consensus OF opinion was that
the war should be brought to a speedy
close if such thing was possible. All
were united i'll the opinion that the only
way this could be brought about would be
by the formation of local board OF fire.
underwriters
While the attendance at the meeting
was quite large, it was decided not to att
! tempt to perfect the organization yester1
day. An endeavor will be made to secure
the ,sgnatures of all the local agents To
the paper that has already been SO freely
| circulated.
Saturday morning at 10 O'Clock tho
agents will hold another meeting at the
board Of trade rooms, and then it is be-
| lieved that the organization that most
| agents so much desire will be perfected.
! If it is. a horizontal rise in rates is sure
! to follow. But should the proposition,
! fall through and the board not be organ
ized, existing rate are pretty certain to,
be cut in two
All the companies doing business in
Los Angeles have thus far joined in the
rate war and the resultant scramble for
business. The cut has not been confined
to few companies. 1t has been general.
The new agencies have been making spe-
cial reductions to write business and to
thus get their books filled up. These cuts
the old agents have been compelled to
meet or lose patrons who have been with
them for years.
Never before in the history of Los An
geles has so much insurance been written
as is today being placed on the books of
! clerks engaged writing policies and the
force is two days behind on the business
already in the Office Before the war
commenced this agent had to labor 10
kill time. He did not secure enou b
BUSH ess to keep himself occupied
The great nope of the locl agencies is
th,t the Saturday meeting viii result ia
i ihe formation Of the Los Angeles board
If fire lderwriters.