The Topeka state journal., 1899-10-24
CHEAP INSURANCE
Fight in Topeka Among the
Union and Nom Union
Companies.

TOpeka may soon nave 1HSuTduC0
written for nothing. The biggest kind
of a rate war is to be inaugurated to-
day.
The union agents for insurance
companies doing business in this city
say that the cause of the trouble is that
they decline to guarantee the Cont
mental of New York 81, 500 per year in
premiums on Topeka business.
The controversy is the result or COM
plications between the non-union and
union companies. The union compan-
les are members of an organization
known as the western Union" which
maintains a system Of rates and until
October 1 paid a fat rate of 10 per cent
commission to agents.
Non-union companies are distinguish
ed from those belonging to the organ
ization by the fact that they pay from
Is per cent to 25 per cent commissions
to agents. This remuneration for the
agents is based upon graded commits
sions.
October the union companies estab-
lished the graded commission for their
agents requiring that agents for the
union companies be not associated with
or represent non union companies.
At the time this new system OF COM
missions was promulgated, w M.
Forbes of this city represented the
Continental. He resigned the agency of
this company and it was transferred
to H. G. Bowman.
Today the local agents had a meet
ing and got Bowman into the union
fold. He Immediately resigned the
agency for the Continental which IS
now without a, local representative, but
the cOmpany's western agent, L. Il.
Griffith, threatens disastrous rate cut
ting unless he be given a falr snare OF
Topeka business.
Mr.. Griffith came to Topeka to trans
fer his agency and discovered that the
business OF his company was not what
he believed it should be and a cOntro-
VerSy concerning the matter arose. lie
reported to the officers of his company
that the union companies were max
ing an effort to freeze the Continental
out of this city. Then the company de-
cided to inaugurate a rate cutting sys-
tenn in Topeka. The threat is that the
business will be secured now if it is
necessary to write it for nothing.
w. V. Church, state superintendent
of insurance, in correspondence with
the companies doing business in this
state stated some time ago that he
would view with disfavOr" less rate
than that which was agreed upon by
the insurance companies and the pres
ent state administration. TO recall TINS
to the attention of the superintendent
Charles S. Elliott and H. E. Went
worth, delegated by a meeting of the
local agents held at the office of D. w.
Nellis this forenoon, went to the 1nsur-
ance department in an effort to have
! Mr.. Church wire the officers of the Con-
tinental that he would view with dis
I favor any additional cutting of rates.
AS Mr.. Church is out of the city this
move availed nothing.
The local agents, representatives OF
/ the meeting held this morning and Mr..
! Griffith, the agent of the Continental,
| are to meet at o'clock this afternoon
! to agree if possible upon a settlement
/ of the controversy.
Some of the local agents believe that
I a rate war is inevitable and that the
/ cut will be unusually heavy While 9TH
/ ers declare that they will make no re-
! ductions, preferring to lose the business
/ than to handle it at a loss.
The demand that other companies
/ stop cutting rates secretly made by the
Continental received no satisfactory
/ whereupon the Continental threatened
4 to put in force a rate reducing the pres
! ent charges to practically nothing, un-
| less the union companies guarantee the
/ Continental 81, 500 per year.
| The union companies were notified of
| this expectation on the part of the Con-
/ tinental yesterday. 1t was in the na-
| ture of an ultimatum. They declined
| to accept the terms thereof and the
! ed. The union companies assert they
| will not yield. The Continental says
| the companies must yield or suffer the
| consequences of a rate war
! The union companies are considering
/ the advisability of themselves inaugu-
! rating the rate war and thereby driV-
/ ing the Continental out. The union
! companies are not anxious to have a
! fight because the Continental has plen-
/ ty of money, 81 900 900 reserve fund and
/ q. vice president, Henry W. Evans, who
/ the United States and the survivor of
J many rafting fights of this character
| from which he has usually emerged the
/ winner