The San Francisco call., 1899-04-01
INSURANCE MEN
GROW TIRED OF
COMPETITION
New Organization to
Be Formed.
WILL CONTROL CITY BUSINESS
BID FOR A COMBINATION OF
.. LOCAL COMPANIES.
Should All Not Come In There Will
Be War to the Knife With
chose Who Stay
WILL CONTROL CITY BUSINESS
BID FOR A COMBINATION OF
90 LOCAL COMPANIES.

There Is food for all kinds of gossip in
the insurance situation at present ex-
listing in this city. There are plans on
foot to revolutionize the entire local
business and bring all the city compa-
MES under the control of a local board.
Should the plan succeed there will be
peace and harmony and low rates and
general congratulations over the i'm
proved conditions, but should it fail there
will be rate cutting and mutilated com
panies strewn over the downtown streets.
All these secret meetings have not been
for the pleasure of convening and talk
ing over the best way to word a policy
or how to make the uninsured insure; it
is the question of competition which has
taken up most of the time, and the best
means to prevent too much and too
strong competition has been the subject
of those long talks in Monterey and at
the Cliff House.
AT present the Pacific Coast Board of
Underwriters control most of the insur-
ance of this coast. 1t has the greater
number of the large companies on this
list, and the companies belonging to 1t
are bound to have dealings only with the
other members of the compact But there
is sufficient number of companies who
have not Joined the compact to maintain
continual menace to the plans and
rates and commissions of the compact
companies, and they have grown TO be a
thorn in the side of the more powerful
organization. Tire companies on the
outside are not bound to keep up rates,
and SO as a. rule they make rates Tor
themselves just a little below those OF
the compact companies, and Increased
! business is the result. The board has at
various times offered inducements to the
outside companies to come into the fold
but there are certain rules of the board
! principally one relating to city agents,
which have proved Objectionable. Inc
! board is bound by rules which suit the
coast but not exactly the local condi-
tfons and so the idea is now being put
forth that the local companies should get
together and form the San Francisco Fire
Insurance Exchange, a body TO be gov
erned in accordance with the needs and
conditions of city business
To this end the work of the board dur
ing it's last session has been mainly di-
rected and many of the rules adopted
have been with a view to strengthen the
new organization. They have in the hrSt
place decided to curtail the number of
men doing business as insurance men
but who have taken 1T up as a side issue.
There are many real estate firms who
transact a small insurance business on
the side, and there are many more who
controlling insurable property, farm out
the policies to whoever will give the high
est commission. 1t is the intention to stop
such work so far as is possible
The question of city agents has also
been given much argument, and also the
propriety of allowing one office to have
der its control. Other questions on rates
and rebates and commissions have been
under discussion, and all with a view to
this new organization which is contem-
plated.
The board companies, it is understood
will be willing to come down to the rates
and the commissions charged and paid by
the non-board companies, and they will
make other concessions in order to have
the support of all the companies. but if
they do not come into the new organiza-
ton it looks as If war will be on. Board
companies will be authorized to violate
the rate cutting rule of the board and
make rates under any offered by any one
of the outsiders. The situation has be-
come SO. strained that it has come to a
point where peace or war must exist,
and the big companies have decided to try
peace first.
The upshot of it all seems to be that
rates will drop and will stay lower for
some time to come.
1t was reported on the street yesterday
that the Union Company of London, one
of the Cation Bell Agency's companies
had been expelled from the board. The
report proved incorrect, however, for the
action of the board amounted only to a
vote Of censure. The agency had violated
one of the rules relating to commissions.