The age-herald., 1898-02-20

an agency which represented non-board and non-association companies, and conse quently withdrew from this agency and ap- pointed other agents to represent thefn. This action created great deal of com- ment in insurance circles, both here and abroad, but nothing developed from it, as was expected by great many. Ever since this occurred there has been a feeling Of anxiety in the business in Birmingham, as the n-association companies did not like the way their agents had been treated in the matter, and these companies and the association companies have been at dag gers points continually, each waiting for the other to violate it's obligations Several times serious trouble was almost inevita- ble, but affairs were settled satisfactorily, apparently. Every insurance man in town has been aware that cutting of rates was liable to occur at any time.'
 The gentleman speaking further said: "The Continental, of New York, was also represented by the Birmingham Under writers Agency, and this company, 1t IS said is also a non-association company, not belonging to any tariff association in the United States, and is recognized factor in insurance circles in this country.
 ''Every Fire Insurance man in the south remembers the rate war at Anniston in 1896 This war was very disastrous to the local agents, who, though they prospered unduly for the time being, are now find ing the business exceedingly unprofltabie, because nearly all of the insurabe prop erty in the town was insured at the time the fun began for terms of three and five years at exceedingly low rates. That war was occasioned by the Southeastern Tariff association companes-those companies which belong to this association not hold ing faith with the agent of the Conti- mental in the matter of rate on the An niston Pipe works, and that company, finding out that 1t had been wronged, in- structed it's agent by wire to cut rates and cut them deep, which he did. thereby pro- ducing a war, which for bitterness has never been equalled in the south
 'Almost all of the association compa- nies secured lines on the plant of the Pipe works in question, but the Continental lost hers. Last year the plant was burned, and of course, the Continental escaped
 But to get down to the trouble here at Birmingham. Last year the line or the Birmingham Railway and Electric compa- ny was about equally distributed amongst the majority of the companies doing pusi- ness in this city at the round rate of 70 cents that is, it's entire property was in- surable under one policy at that rate
 ..There was at that time, charge made against the Continental that it had writ ten it's share of this line lower than the rate of 75 cents in order to secure very large slice of it, but upon investigation by the other companies and the local board of fire underwriters, it was found that the Continental had adhered to the rate of the Southeastern Tariff association
 .'When the time for renewal of the poll cies rolled around the agents were in- formed that their line would not be re- newed as the entire line had already been placed with one company, it being more convenient to have all of their business included in one contract.
 This of course, put the local agents to thinking and they decided to investigate the matter, which they did. Upon this investigation it developed that the entire line had been placed at a rate below the Southeastern Tariff association rate of 75 cents, and 1t seemed that there was a nigger in the woodpile'
 "A meeting of the local Board Of Fire Underwriters was held on Thursday last to discuss the matter but as the meeting was held behind closed doors, no informa- ton could be gained at that time
 ''It is rumored in insurance circles, how ever and even asserted by some agents, that the line was placed by the local agent of tn Royal Insurance company, of Eng land, in this city through the Louisville office of that company at a cut rate.
 sIt looks very much as if the fire in surance business in Birmingham will be demoralized within the next few months, or perhaps weeks, or even days In the meantime, the insuring public is liable to be treated to a bitter insurance fight all most any day"