The age-herald., 1898-02-16
A RATE WAR IS IMMINENT Among the Local Insurance
 Agents. II MEANS CHEAP INSURANCE Alleged Cut Rate on Big Policy Started the Ball to RoIng-lt is Rumored that
 the Matter May be Settled
 Very Soon.

A threatened rate war was the sensation sprung in insurance circles yesterday!
 Trouble has been brewing for some time,
 but yesterday the crisis came, and the
 agents are beginning to dig up their
 hatchets and put on their war paint pre-
 paratory to a bitter conflict Of course
 things may be smoothed over, and it is
 positive that a strong effort will be made
 to smoke the pipe of peace, but wholesale
 cutting and slashing in insurance rates is
 not improbable.
 Some of the big companies here are
 anxious for war, and are ready for fight
 to the finish. The weaker companies are
 not so anxious. None of them really want
 it, but they feel that it is inevitable. It seems that every company represented
 in Birmingham except one are members or the Southeastern Tariff association, and all of them are members of the local associa- tion. Under the rules of these two asso- citations a uniform rate of insurance is established, which all members are bound | to maintain. The complaint has been made | that some of these companies were cutting l their rates in violation of the rules. The matter came to a head yesterday when it was rumored around the insurance offices that the Birmingham Railway and Electric company had placed very large policy on it's property at cut rate by a company that has a local agent, and IS also a member of the local compact asso- ciation. It is generally known that last year a special rate of 75 cents was made for this company by the association. The policies which were taken out at that time expired yesterday and they were not renewed. Those who ought to be we'll informed In insurance matters say that company which is represented by a. local agency has | cut the rate of 75 cents in order to get the business of the street car people. The amount of property insured is valued at over $120 00O, and the other companies in | the field are naturally sore over the affair. They claim that 1t is not only unjust that the established rate be cut, but also that insuring with companies out Of Birmins- ham necessarily prevents any commissions by the local agents, as well as avoidlns | the tax fees payable to this state.
 The agent who has for the past year handled the policy of the street car com | pany was seen by an Age-Herald reporter yesterday, but he said he knew nothing about their new policy except that they | had not renewed 1t with him, and that he knew of now reason why 1t was not done | The officers of the Birmingham Railway and Electric company were also seen. | They said that they would not renew the policy with the old company, but further | than this would make no statement This question is a matter of intense in- | terest to the insurance agents of Birming- ham, as well as to the public in general. Insurance rate wars are generally consio- cred great things by the public, as 1t ena- bles the best policies to be had at a great ly reduced cost. In some instances a i've | year policy can be bought as cheaply as | one-year policy under a tariff rate. | The companies don't think so, but com petition forces them to enter the lists when one company begins to cut rates, in | order to keep their business. Anniston
 has just passed through a rate war, and | insurance could be had in that city for l song.
 The agents claim that while war is good for the public as long as 1t lasts. it is doubly hard on them when reaction comes and the tariff rates are reestab- lished. The companies are compelled to make back the money they have lost in some way, which it is claimed is done by putting up a high rate.