The herald., 1897-04-07
INSURANCE

The local insurance board of under
writer's met according to call at the
chamber of commerce rooms yesterday
afternoon, President r. @. Lunt, Secre-
tary ]. w. Montgomery and about thirty
nine members present.
| The president read kilograms from
other boards at Stockton, Sacramento.
| San Jose, etc., urging cooperation in
| the endeavor to defeat the attempt to
force down the rate Of commission to Is
| per cent
After some discussion. G. f. Overton
| introduced a resolution calling upon the
| San Francisco board to rescind its ac-
| ton. This resolutions was amended at
| the suggestion of c. o. Hawley to raise
| the demand OF commissions on pre-
| ferred" business to rs per cent, and. as
amended, the resolution was passed as
| follows:
At a meeting OF the Los Angeles
! board of fire underwriters, held this
| day. the following was adopted, towit:
| The Los Angeles board of fire under
| writer's receive with regret and much
| dissatisfaction, the information that
upon the 7th inst. the commissions paid
| to agents in this city will be reduced to
Is per cent. and 1t hereby files its re-
spectful protest against an act which
appears to 1t to be totally unnecessary.
This board recalls the fact that it or
! ganized many months ago, and during
n period of active warfare which had
continued for over two years, and which
was working the most disastrous results
to the companies represented by the
members OF this poard. ii is believed
that such organization contributed
largely to the possibility OF the compact
| Just formed in San Francisco, which has
signalized its birth, almost Immediate
ly, by what seems to be an unfair dis
elimination against a body that was
largely instrumental in developing and
making possible the existence OF the
present board of fire underwriters of the
Pacific. The city of Los Angeles is now
large, important and rapidly growing
one, and 1t would appear to those of us
who support this protest, that no good
reason exists why Los Angeles should
receive commission OF Is per cent, while
other cities are receiving 9 higher one.
1t will be probably conceded THAT alb
solute loyalty on the part Of fire insur-
ance agents toward the companies they
represent is the foundation of conditions
that insure success to the companies and
stand as barrier against the writing or
undesirable risks on the part OF sucn
agents. Therefore, would 1t be at all
unlikely that. where commissions have
been reduced manifestly below q figure
would be greatly weakened, and that
hereafter an agent would feel that 1t Is
necessary for him in his own in
terest to write business and, pos
sibly, to write 1t without the
care and discrimination that would have
characterized such writing had the spirit
OF loyalty been maintained In him by
reasonable protection of his interests on
the part of his company?
Now. therefore, the Los Angeles board
of fire underwriters respectfully
request that the board Of fire
underwriters of the Pacinc
speedily reconsider Its decision In ref
erence to the matter of commission, and
that 1t will allow to the Los Angeles
agents a commission of rs per cent on
preferred and 20 per cent on ordinary.
1t is firmly believed that such an act
on its part would inspire feeling OF
confidence, would keep alive the spirit
Of loyalty to their companies that has
governed the agents here during the
past, and finally result in general good
will and larger, safer and more proht-
able volume of business. Attention is
respectfully invited to the following brief
example, which is supposititious. to-wit:
An agent writes business for one month
to the extent of $700 (or $S400 per annum,
which is a fairly large business). At 10
per cent commission he receives sos.
out of which he must pay office rent and
the many expenses incident to his busi-
ness, which must include also those in
Cured In securing the same on the out
side. Having paid those expenses, he
will, II he has been economical, find him.
self in possession of. say, $50 net receipts
for a month of hard work and in a busi-
ness that demands exceptional ability
and good standing.
Upon motion a committee Of three,
consisting OF Messrs. r. G. Lunt, M. T.
Whitaker and G.. =. Overton were ap-
pointed to take the resolution to San
Francisco and represent the feeling Of
the agents to the managers there.
The meeting then adjourned.