The times. [volume] (Washington [D.C.]) 1897-1901, 1900-07-14

A meeting of the local insurance COM
the purpose of agreeing, if possible. on
some line OF action regarding the new
rules adopted by the Underwriters Asso-
citation on Thursday. at the instance Of
the middle department. The majority of
the local companies, though not all of
them. are entirely and bitterly opposed 10
the new rules. Others have tai en no po-
sitive action. but are inclined to side with
the decision of the association. The pres
ent outlook, according to the views Of
insurance men generally, is a most ur-
pleasant one. full of strife, rate wars and
general DISCRIMINATION, even if the exist
ence of the association itself is not threat
ened. as many believe.
Some of the local companies announced
positively yesterday that they do not in
tend to abide by the new rules. The ad-
vance in rates on commercial risks" is
supposed to go into effect Immediately.
These companies state that they do hot
intend to advance these rates. This ac-
ton on their part is a violation of the
new rules and virtually sewers them from
membership with the association.
Mr.. Towers. of the Columbia Company,
made the following statement regarding
the position of his company yesterday:
I'VE do not intend to advance the rate
on ordinary commercial risks according
to the new rule. We. do not intend to cut
the rate on dwelling houses. according to
the other new rule. And there are numer-
Gus ether companies that take the same
position. The move of the association is
wholly for the benefit of the outside COM
panies and againsatlthe interests of the
local companies.
When the Washington Fire Under
writers Association is run for the benefit
OF outsiders and to the detriment of its
home members We consider that there are
many wrong things in the association that
should be corrected.
The local companies write large part
of the insurance on dwelling houses, as
they do in any city. 1t is natural that
they should. They write only small part
of the insurance on commercial buildings.
The outside concerns have seen fit to come
into the local field and compete with the
Washington companies. They have writ
ten insurance on the big department
stores and other non-preferred risks at a
ridiculously low figure. The local COM
panies have not cared TO touch such BUSH
ness because they have not believed 1t
would be profitable. Now the outsiders
wish to force the local companies to cut
rates on the dwelling house business. OF
which they do so per cent. AS return
for this the outsiders offer TO advance the
rate on big business buildings. the class OF
business which the local companies do not
want, and the outsiders control 1t is an
absurd proposition in every way utterly
negotiable and inexcusable.
Go very pacy IN what would he
the result il the local companies consented
to advance rates on the classes of bust
ness buildings that they care to take.
Next week some OF the premiums would
become due. We would be obliged to adj
vance the rate on them and the business
would not be written. Somebody would
write it, however. and at the lower rate.
OF that there can be no question AT the
end of the two months probation, on Sep
TENDER 10, ii would be discovered that the
local companies had lost all the CONNER
cial business at the advanced rates. Then
the cut OF rates On the dwelling house
business would begin and the last hope OF
the local concerns would vanish.
The Riggs Company. as announced in
The Times yesterday. has unofticially ex-
pressed its intention OF abiding by the |
decision Of the board. Mr.. Birge yester-
day afternoon in discussion OF the mat |
ter. said that his company considers the
new rules satisfactory and that they will
be obeyed by It from the beginning. The |
German American Company also intends to
remain with the Underwriters.
The Potomac Insurance Company. which |
was suspended from the association sew
eral weeks ago, has/been admitted to MEM |
bership again as heretofore stated. The |
action of the association was mere for |
mality, however. and it is said that the |
Potomac people do not consider them
selves members to any great extent They |
do not intend to observe the rule regard
ing multiple agencies President Arms is
out of the city. and Riley Decide, the vice
president, was unable to attend the meet
ing on Thursday. No official statement /
of the intention of the company could
be obtained yesterday.
The Northwestern National Company
has not been a member of the association
for several years. according to its policy
all over the country 1t is considered the
great outlaw company Of America. The
Middle Department Committee, while in
his city formulating its new rules for
he Underwriters Board made call upon
he Northwestern agency and proposed
hat Mr.. Sullivan. the local manager, be-
,ome q member of the board. 1t had been
loped that in the general readjustment
the Northwestern evil might be disposed
IL Mr.. Sullivan declined to join the as
ISOLATION.
Manager Sullivan said yesterday after
loon regarding the present situation: 81
Ook for a rate war..EIt may be that there
will be heavy cuts all around before the
End of the fight We do not expect to
make much money II the war is a
l