The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-05
TIE INSURANCE TROUBLE
Companies and Agents Still Refuse
TO Settle Their Fight.
Threats That Rate Cutting Is Immi-
nent and Tint a Decentralization of
business liz Likely to Result-Arsu-
mcnts of the Suspended Members
statement of President Cohen.

The warning local insurance companies
and agents made no progress toward a
settlement of their difficulties yesterday
Neither the Underwriters Assoc alton Tor
the people who are out Of the association
was any more inclined to yield In the fight
than they we're last Saturday, when the
crisis occurred. as exclusively told in The
Times of that date. The opinion was freely
expressed by both sides that serious and
costly rate cutting will probably be an
early result of the fight. 1t is even said
semi officially by members of the associa-
ton. that the cutting of rates and secur-
In of business from the suspended mem
bers is necessary, and the only proper
course.
Both parties are inclined to attach al
the blame for the present unpleasant stu
alton On their opponents. The Potomac
Company and the other suspended mem
bers Of the association say that the new
rule regarding fees adopted by the asso-
citation is directed solely against them and
that there is no good argument in its
favor. They assert that the fees proposed
are prohlbitive against any agents more
than three that company may desire 10
employ. and intended to be so. and state
their opinion that the association has no
right to attempt to control its members in
this way. The association members. en-
the other hand. say that an annual fee Of
s100 should not be prohibitive except in
the case of an agent who did very little
business. and who, therefore, would b. OF
very little benefit to a company or to the
association.
Numerically the association is very
strongly in favor of the new rule. Eleven
of the twelve local companies. or all ex-
cept the Potomac. have agreed to 1t. The
proportion among the agents Of outside
companies is even greater. An officer OF
the association yesterday furnished the
following list of the local companies with
their present number OF agents and the
number that they have agreed to dispense
with under the new rule:
The Riggs, with 10 agents. will cut off 5.
The Peoples. with 0 agents. will cut off
s. The Firemens. with 6 agents. will dis
pense with 3. OF the Arlington's 7 agents
2 at least will be dropped. The Columbia
will drop 2 or more OF its agents. The
Corcoran. with 6 agents. will crop 2. The
National Union will drop enc OF its 5
agents. The Franklin will drop one Of its
4. and the Metropolitan 9 or its agents.
This officer alsO made the statement that
the Potomac Company last year paid $3.50
as its share of the expenses of the assccia-
ton, and that under the new rule it would
not be obliged to pay more than $3.50.
even II none of the seventeen agents now
employed by 1t should be dropped. The
difference Of $500. it was asserted, could
not be thought prohibitive tax.
Mr.. Cohen. the President of the Under
rtt ;ofS ton mi frtlp
garding the fight:
The people who refuse to comply with
the new rule assert that there is no good
reason for it. The reason Is excellent All
over the country 1. is beromirg the sent
ment among insurance mel that numerous
agencies are an evil. The matter is largely
a technical one. but / may state to yeu.l
that the National Association of Loci
Fire Insurance Agents. which met at Buff
falo this year. adopted very strong meas
ures against the system. and that on TIE
other hand. a committee of twenty-geyen
of TIE most important managers of ins-r-
ance companies in the country has a so
expressed itself very positively against
multiple agencies The local Under |
writer's Association is simply folo1ilg
along this line.
We have wished to cut down the num-
Der Of agents and there is 70 secret as to !
this. But we Go not make any arbitrary !
prohibitive rule. as might be Cone and, has !
been done in some cases in other cities /,
The new rule is intended to adj to the |
revenues OF the association and also SIMPLY |
to act as a curb on the indiscriminate ap- |
pointment Of agents. II an agent does an |
important business. enc that could not be |
done SO well by solicitor. we believe he |
should be worth 500 year to the Gem
pany. AS matter r. fact, some of the |
local companies will have more than three |
agents and will pay the s1G0 fee for each !
one over that number.
1.-The majority of the members of the |
association is in favor of the new regu- ,
alton. We believe in majority rule and
We believe that the suspended members
'hould acquiesce in this plan. even If 1t |
Ices not exactly suit their ideas. 1t will |
certainly rot be the association that can
,e blamed for rate cutting II there is any,
lnder these circumstances The members |
# the association are bound to fight
gainst outsiders and TO help each other
they will be forced by the situation to
AXE steps against the new outsiders. But
he suspended members will deserve all |
he blame for any disorganization of the
BUSINESS"
One OF the agents OF outside companies.
sho was suspended on Saturday for non
ayment Of the fee under the new rule.
complied with the rule and was
Omitted into the association again.