The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-05-07

This matter OF insurance rates will
adjust itself in time" said Robert
Dickson, western agent of the Royal
! Exchange Assurance company of Lon
don. and Pacific coast manager for the
Queen and Connecticut, yesterday
afternoon to a Herald reporter. The
gentleman was on his way east to
New York where he will spend several
days and then sail for England and
the continent on d four months leave
of absence. He was accompanied by
his wife and daughter. They arrived
from the west on the early morning
train and left for the east last even
ing, making the Knutsford their head
quarters during their stay here.
ION the coast things are in a very
much disorganized condition, from an
insurance standpoint, and there is no
prospect Of an immediate improve
ment, unless some catastrophe should
bring the managers to their senses"
continued the gentleman. The entire
trouble is the direct result of personal
feeling and jealousies among the Pa
cific coast managers and until there Is
a change in sentiment OF some start
ling orders are received from the home
offices the same condition of affairs is
likely to continue. Up to the time l
left the coast nothing of a definite ma
ture had been received by the general
managers. but it is anticipated that
within a short time the meetings which
are now being held across the water
will result in some sort of a concerted
action on the part of the arrangements
that will bring the coast managers up
standing. Stockholders of an insur-
ance company are not likely to long
stand the sort of business that is now
being carried on throughout the juris-
diction of the Board of Fire Under
writers of the Pacific coast, for the
simple reason that they are DESTROYS
of receiving some revenue from their
stock rather than paying an assess
ment, which latter can not help but
result if the cutting is carried on much
longer to it's present extent. AS said
before, the matter of rates will prove
self adjusting, in the absence of any
action on the part of the home offices
but it may take some time. The aver
age earnings of companies doing buS1-
ness on the Pacific coast has, IN years
agone, been Is per cent, but with rates
cut in two, or. in other words, reduced
so per cent. the loss ratio will not be
less than % per cent. This means that
all companies which engage in such
cutting are on the highroad to bank
ruptcy."
Although he Is one of the strongest
board men on the coast. Mr.. Dickson
said in response to inquiries that the
Board of Fire Underwriters of the Pa
tific is but a skeleton of it's former self
and its usefulness is not entirely ap-
parent. Insurance companies must
have compact, however, he said, and
the board organization will be pre-
served, come what may. Manager
'Stillman and the other officers OF the
board are doing a splendid work, ac>
cording to Mr.. Dickson, and good may
yet come of their efforts. Speaking of
the policy of the management of the
Home and Phoenix the gentleman said
that if the other managers could but
once find out what it is in truth they
might be able to get together. AS it is,
they are entirely in the dark as to
what Magill is contending for and the
cutting continues as before.
StiIlman Has an Opinion.
General Manager Stillman, Of the
Board of Fire Underwriters OF the
Pacific, came in from the north yes
terday morning and will probably be
here for several days. He met with
the local Board Of Underwriters yester-
day afternoon and outlined the plan
of campaign to the members present
He is of the opinion that the home
offices will soon make some move TO
check the indiscriminate cutting of |
rates which is now being carried on in |
California and right here in Utah. |
There are several reasons for this, one
being the great increase in liability. |
While it is true that for the present |
the premium receipts Of most Of the
companies are heavier than would |
have been the case in the olden times,
due to reissue of policies and increase
in lines carried at cheap rates, the |
liability is also being piled up. A cut |
Of 80 per cent, that now most in vogue
on the coast. means the quadrupling |
Of the liability Of the companies and |
also the quadrupling Of the loss ratio. |
Such a condition Of affairs cannot con-
tinue for much longer, in the opiniou
of Mr. Still,aan
Mr.. Stillman has been in the north
west for the past several weeks organ
ling local Boards of Underwriters and
states that in but one city in the dis
trict is there any cutting being carried |
on That is in Missoula where the
Home and Phoenix is making some
trouble. He is of the opinion that the
local boards will be able to hold things
down in good shape throughout the en-
tire jurisdiction of the compact. al
though it is questionable whether or
not their effectiveness will continue
for long without a strong central
The gentleman is moi
sure whether he will proceed direct
home or return to the northwest. his
advices not having been received as
yet.
Commenced the Adjustment.
The adjustment of the loss sustained
by the stocks contained i'm the store OF
the American Clothing company on
Second South, will be in the hands of
Special Adjuster Outcault. and work
has already commenced On the tail
bring and clothing stocks and the fr-
lures there was a total of IS. 400
divided among the companies as fol,
ows: Atlas, $4,000; Delaware, 81 600.
Connecticut. $1,000; Royal Exchange J
81 900; Home Mutual. 81 900 In addi