The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-09-14
A SOLID FRONT
At SACRAMENTO
Fire Insurance Men Will
Now Settle Their Own
Grievances.
FORM A NEW COMPACT.
No "Sack" Will Be Raised to
Avert Hostile Leg.
iSlation.
FAIR RATES TO BE RESTORED.
The Agreement May Be Ratified This
Week by Local and F;reign
Corporations.
FAIR RATES TO BE RESTORED

The signs are now favorable for an early
restoration OF the compact among fire
underwriters. which was broken eighteen
months ago. Since the insurance men
began the cutting of rates which ter
minated in a dissolution of the compact,
great deal of business in the way of fire
underwriting has been done, but the mar
gin of profit was small.
At Monterey some months ago an earn
est effort was made to restore harmony
and bring about an agreement to do bust
ness on uniform basis of rates, but some
obstacles prevented a reconciliation at
that time. During the past week several
points of difference have been adjusted.
There remains, it is said, one point to be
settled, however, and that relates to the
representation in the proposed compact
of the New York underwriters and the
Hartford Insurance Company. These
companies are represented by one agency,
and the conten ton is advanced that they
should not have more than one vote in the
association.
Negotiations for an agreement have ex-
tended so far that all the foreign as well
as the State insurance companies have
signifed their desire to end the rate cut
ting war at once.
Speaking OF the probable outcome of
the negotiations a well-known under
writer said yesterday:
while the old compact rates will be
recognized as starting point in the new
agreement, it does not follow that these
rates will be strictly adhered TO. In fact
it is conceded that there will be some re-
auctions. but surely the blockbooks,
boundaries, etc., established by the for
M ha mead CuiHo
The surveys and blocking which designate
the hazardous precincts were made with
considerable care and the books are now
availa bic and of course will be used in the
adjustment of uniform rates."
Concerning future insurance, this under
writer said: ''Agents are now making
contracts for insurance to be executed
sixty DAYS hence. These independent or
uncIassitied contracts for new insurance or
reinsurance must be executed within
sixty days after the new compact is estab-
lished."
These underwriters, who have been
fighting among themselves for the past
year and half, now recognize that they
must com bine to meet what they consider
a common enemy and face what they
regard as common danger. This dan
gerous enemy is the Legislature. 1t is q
part OF the insurance history of California,
that money has been lavishly spent in
W dNGIb AOSlllo lcRlS1dllOu.
at one session of the Legislature, the
underwriters were so "shamefully be-
trayed" by the members who were sup
posed to have been bought that many of
the leading insurance men registered
solemn oath never to contribute a dollar
to another sack. One agent expressed
that sentiment yesterday, by saying: 1--WE
didn't put up dollar for the Legisl ature
at the last session and we will not put up
a dollar this winter
1t is well known that every session of
the Legislature has its insurance lobby
and no doubt these agents act with the
counienance and authority OF the COM
pact. The expense of maintaining lobby
at Sacramento is probably regarded as
legitimate and money used to wine and
dine members who desire information as
to the merits of pending measures may be
charged up to legitimate expenses.
1t can be written down as a iacS that the
underwriters will make many concessions
among themselves to settle their own diff
ferences and grievances before the Legis-
lature convenes at Sacramento. Then if
they are called upon to resist "cinch" bills
they will be in position to act as a unit
in the opposition.
An underwater who is we'll informed as
to the progress of negotiations predicts
that the agreem emit will be ratified by all
the companies, local and foreign, within
the next ten days. Then the underwriters
can present solid front at Sacramento.