The herald., 1896-09-14
INSURANCE WAR AT AN END
Getting Things Ia Shape for a New
Compact
The Way Nearly Clear for Readjustment Of
Insurance Rates All Over
the Co asst

The insurance rate war Is drawing to
u close, says the San Francisco Chronicle
After nearly twenty months Of cutting
and slashing the end appears in sight.
There are yet some obstacles to be over
come, but they are of minor Importance
and bear no comparison to those that
have been surmonted. When peace once
more reigns among the underwriters a
schedule of rates will be drawn up and
promulgated.
Then another attempt will be made
to maintain them. This will be where
the great trouble will come in. The
chances are, however more favorable
than in the past. One reason for this
will be that under the new arrangement
there will be less margin for undercut-
ting and another the effective memory
OF the losses incurred by the companies
in their long fight against each other.
The comforting assurance is privately
given that no attempt will be made to
restore the rates which prevailed wholly
in theory and partly in practice under
the regime of the Pacific Fire union. In
surance agents acknowledge that these
were too high, If not exorbitant, for
those times, and that under the actual
depressed condition of general business
it would be unwise, If not impossible, to
again place them in force.
Instead of restoration of rates, the
program is to have a readjustment Of
rates. Some would be increased, but
more would be lowered. 1t would be
possible to do so, as under the amended
constitution of the Board of Fire I'm
derWriters the expense of obtaining
business will be restricted, the public
gaining thereby and the companies
making as large profits as under the old
yntn g. T.
paying but not high rates for insurance.
Toward putting the compact in force
this much has been accomplished. A
constitution has been adopted which
has received the adherence of fifty-four
of the f1fty-seven agents whose consent
is deemed necessary to render it binding
The remaining four are not included in
the calculations. A weak point is the
failure to adopt the compensation
amendment by unanimous vote as re-
quired under the agreement at the
monthly conference held last spring.
Rates and regulations also yet remain
to be drawn up and consented to, de-
fining among other matters the classes
of agents, solicitors and brokers. Among
the signers to the constitution as
amended yesterday are three of the
four strong outside company agents
They are those Of Rolla v. Watt of the
Royal and Queen, Fank ]. Devlin of the
AlldS ana -. II. Mullins OF the commerce
ial Union. Harry K. Belden, represent
ing the Hartford of Hartford, is still out,
but the signs point to his taking similar
action.
In addition the adhesion of the West
chester and Thuringia are regarded as
necessary to putting the compact into
force. Mr.. Magill OF the Phoenix and
Home, is understood to be willing to
sacrifice his personal preferences as to
certain provisions in the constitution to
the general good.
AS amended the constitution contains
the modified clause relating to nom
intercourse demanded by Messrs. Watt,
Mullens. Devlin and Belden, and the fol-
lowing schedule Of commissions in San
Francisco: To brokers Is per cent, to
solicitors 20 per cent, to city agents 20
and 25 per cent, according as business
may be ordinary or preferred. On in
terchange business between members
the rates will be Is per cent on preferred
and 10 per cent on ordinary business.
while at Portland, Ore. the commission
will be 20 per cent on all business.