Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-12-12
PLATE GLASS INSURANCE.
NATIONAL COMPACT DISRUPTED AND
RATE WAR OPENED.
Expected to Become Most Bitter in
States of Missouri. Kansas. Ne
brasLa, the Dakotas, Min
nesotn and Iowa.

The national compact Of the plate glass
insurance companies has been disrupted
and a war in rates opened, which is eX-
pected TO become bitterest in Missouri.
Kansas. Nebraska, the Dakotas. Mime
sofa, Iowa and Illinois. these Ugh states
being controlled from Chicago, where the
trouble between the companies started, and
local conditions tending 10 increase the
Generalization in this territory.
The companies in the national compact
were the Fidelity and Casualty Company
OF New York, Lloyds Plate Glass lnsur-
ance Company of New York, New York
Plate Glass Insurance Company. New Jer-
sey Plate Glass Insurance Company. Union
Casualty and Surety Company Of st. Louis
and the Metropolitan Plate Glass 1nsur-
ance Company of New York.
In November. 1888, a national compact
was formed and rates were materially in
creased. The companies felt that rates
Heretofore had not been on a profitable
basis, and accordingly made the raise. AT
that time about all the companies doing
a plate glass insurance business Joined the
compact. save a few local companies which
operated in a limited territory.
Since then the Contra Accident Insur-
ance Company of Pittsburg, which until
recently only took risks in Pennsylvania,
has increased its capital and entered most
Of the states. Then the Frankfort Marine,
Accident and Plate Glass INSURANCE. Com
pany, a big German corporation, made n
deposit in the United States and established
its American headquarters here under
Manager Frederick G. Voss. who has a
fighting pedigree that extends back to the
stone age.
Manager voss and the Central never
joined the compact, and so were not bound
10 observe the tariff rates. The compact
began soon to feel the pressure.
Last week President Seward. OF the FL
deity and Casualty, announced to the 9th
er companies in the compact that they
could not further withstand the public de-
mand for lower rates. and that non-com-
pact companies were getting too much
business. Several small accident and cas-
ualty companies here and there began to
write plate glass insurance, and this only
complicated the situation.
Mr.. Seward stated that the experience of
the companies, the low price of plate glass.
ind other favorable conditions warranted
q revised tariff, which would mean a re-
nled to go into effect January l in the New
England states. and arrangements were be-
ing perfected for the extension Of the ter
ritory.
AS there is much bitter feeling between
certain of the companies the contest now
precipitated will be severe. In 1888 q SINH
lar disintegratton took place, which lasted
two years.
Rates nave been open in Chicago since
last May. at which time the New York
Plate Glass Insurance Company. under
sioiaSti IL D.. diicA, IeliTtu lTOh inc
local compact because he would not ac-
cept its provisions. Since then it has been
war unto death. The local compact soon
went under, and now rates are below rock
bottom, renewals being written months
ahead OF time at a radical cut.
The feeling was intensified a few days
ago by Montgomery & Funkhouser, of Chi
cage. resisnipg the estern general agency
of the Fidelity n Casualty and taking
the management Of line states for the
Lloyds. its bitterest rival. This meant an
aggressive policy on the part of the
Iloyds. so President Seward, of the Fidel-
fty and Casualty. came West himself and
put the management Of his company in
the hands of w. A. Alexander & Co., who
have charge of its other branches. The
fight promises to be an interesting one.