Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-05-02
THEY EXPECT RATE WAR.
Prophecy Disaster After Dissolution
of the N. \. Tariff Associations

New York Herald.)
Fire-insurance men are greatly exer-
cised over the dissolution OF the Ne"
York Tariff Association. which, as told In
the Herald yesterday. disbanded after
meeting at its headquarters, In the
Mutual Life building. 1t had been seri-
ously affected because OF long-standins
rate-wars among the members.
1t was prophesied In the Insurance.
quarter yesterday that the immaculate
effect of the collapse would be war IN
rates and that, taking the cue from Ne"
York. managers and agents throughout
the country would follow suit.
Marshall s. Diggs, OF the WILLIAMSBURG
City Fire Company; w. W. Uhderhiii,
of the United States Fire Company
Benoni Lockwood of the Insurance COM
pany of North America. and >. Albert
Reed, the general manager or the asSo-
citation form the committee that Is 10
wind up the affairs OF the Tarin Asso-
citation.
h. G.. Snow, Jr., manager OF the Supur-
ban Underwriters Association toto me
yesterday that, in his opinion, the disso-
lutiUn %. the IarnI ->,sO. -a.ioh meant
~ ~1i1 o. II least fftv insurance COM
panies in the city of New YORK.
10 SLASH RATES EVERYWHERE.
at means" said Mr.. Snow. that rates
will be cut from 30 to 70 per cent, not
alone in New York, but throughout the
country. Some persons have expressed
the opinion that all the rates associa-
tons will be ruined now. l don't pc
leve that, however. | think they VIII
all remain in existence, but they Will
undoubtedly be affected.
1.-THE Tariff Association had Jur1sdlc-
ton over New York. Brooklyn. ana Jer-
sey City. The Suburban covers the neid
outside the metropolitan district withih
a radius Of one hundred miles. 1t con-
fines itself to insurance I'm suburban
towns. I can state positively that the
Suburban will continue.
The Tariff Association, being centered
in New York, was naturally the most
important organization Of all. and the
others will necessarily feel the erect OF
its collapse There are about one hum
dred such associations, and demoraliza-
ton will ensue among them.
"Slnce the founding Of the Tariff AS
ISOLATION, other companies came TO this
city and cut the rates, thinking the as
ISOLATION would ignore them. They made
money, and dissatisfied " spread among
the members.
1.-THE ones who will suffer now. how
ever, are those who were most anxious
TO disband."
DISASTER TO SMALLER COM
PANIES.
Insurance offices are really now in a
state of panic. was told that thou
sands of policies will be turned in for
cancellation and that the risk will be
rewritten at such low rates that the
firms will all lose money.
officials of the German-American In
surance Company express tho opinion
that a permanent reduction of rates will
ensue, and that a suspension of rates
may prove disastrous to many of the
smaller companies. W. w. Underhll.
of the United States Fire, expressed his
satisfaction only last Thursday that the
association would continue, but the next
day the plans 10 dissolve were adopted.
BenOni Lockwood. who is chairman of
the Executive Committee of the Tariff
Association, said that every expedient
for prolonging the life OF the association
had been exhausted. While the heads
Of some insurance companies hope there
will be an agreement among the COM
panies leading toward fair rates, others
think no reorganization will take place.