The herald., 1897-04-03
INSURANCE

Much excitement has been caused
among local agents throughout South
ern California by the receipt Of intelli-
gence to the effect that the reorganized
board of underwriters of the Pacific
had passed a resolution reducing the
rate of commissions from twenty to
fifteen per cent The fact that rates
had also been advanced to the standard
of the 9th of March, 1895, said advance
taking effect on the 30th of March, 1897,
does not concern the agents so much,
although with regard to the rates on
Los Angeles property it 10 expected that
the existing special rates lately form
ulated by Surveyor Nichols for the
Southern California Underwriters as
ISOLATION will be maintained, as they
have been arrived at after much careful
work and personal inspection in each
case of the property rated.
But few Of the local agents have as
yet received any official notification of
the change in their relations toward the
companies they represent, the reason
being, so 1t Is stated, that the compact
agreement among the San Francisco
managers has not yet been fully signed
up, on account of the absence of some
of the members of the new board.
II the San Francisco managers have
had any doubt as to the manner in which
their autocratic order reducing compen-
sation would be received by their coun-
try representatives they are undeceived
by this time. The local boards at Sac
ramento. Stockton, San Jose, Santa Bar
bara, San Diego, Riverside and other
points are up in arms. Needless to say
that the Los Angeles agents, headed by
r. G. Lunt as president of the local
board of underwriters. are also Justly
indignant at the sweeping character
of the proposed reduction. One local
agent is In receipt of a private letter in
forming him that Los Angeles agencies
will be excepted from the operation of
the reduction. but it is certain that the
resolution passed by the San Francisco
board makes no such exception.
The agents who have worked hard to
restore rates to permanent business
basis which. while giving the assured
the benefit or reduction would also en-
able the companies to pay losses, feel
that the proposed cut in their compensa-
ton comes with bad grace at this time.
President Lunt, as we'll as other agents.
has been In receipt of numerous tele-
grams from the boards at other points
requesting cooperation In the fight
against the reduction which it is pro-
posed to put into effec. on the 7th ins..
In addition it appears that the San
Francisco managers have also by reso-
luton decided that "the authority to
promulgate rates is vested solely In the
board Of fire underwriters of the Pa
cific," which appears to put damper
upon the arduous efforts of the local
boards to decide upon what rates should
properly be charged.
In effect 1t appears, according to the
views expressed by some Of the insur-
ance men. as If the intention of the man.
agers was to reduce their local repre-
sentatives to the position of mere clerks
to carry out orders. instead of recog-
nizing them as men of ability and judg-
ment In their profession.
An official of one of the insurance COM
panies of New York which makes spe-
cialty of assuming maritime risks has
received a circular from London stating
that from January up tc February 27,
this year, the various English compa-
nics have lost $4,000. 900 sterling in ship
wrecks. The loss exceeds any estimate
for the same period within twenty years.
The climate for the two months, accord
ing to the circular, is low one. and 1t Is
thought that fully e500.0O0 will have to
be added to the amount to make the
figures correct, thus making in all the
enormous loss of nearly 92500. 900 for
the first f1fty-nine days Of this year.
Careful examination of the various loss
es shows that fully so per cent are attrib-
uted to what are officially known as
missing" vessels.