Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-06-23

To the Editor OF Inc EVeuiHs star.
The statement of IN. A. Pr in Friday
issue of The Star, by which he endeavors
to place the local insurance companies in
false position before the public, is so mani
testify partisan to the foreign agency
companies represented in the District OF
Columbia as to hardly merit a reply. "A'.
A. Pr is doubtless an agent of one of the
foreign companies whose cause he cham
pions, and in speaking one word for the
public speaks two for himself.
In Justice to the local companies, how
ever it may be well to state few facts.
There are now twelve local companies en-
gagged in business in this city, organized,
owned and Differed by citizens of Wash
ineton d. c., under the general incorpora-
lion law of the District of Columbia.
These twelve local companies pay annually
in taxes and licenses to the District gov
eminent about $4,000. an average of about
81 600 each per annum, while the 40 for
eign companies represented here and en-
joying the same privileges as the locals pay
in the aggregate about $4,000 annually, or
an average of about $40 each per year.
The existing state of affairs has been
forced upon the locals by the foreign COM
panies who are directly responsible for
the enormous increase in the rates on mer-
camille risks the advance in many cases
being as great as % per cent over the pre-
yious rates The locals were opposed to
the system of rating which brought about
this increase. but were outvoted by the
foreign agencies. the latter outnumbering
the former in the ratio of about ten to one.
1t is understood that a still further in
crease in the mercantile rates Is contem-
plated by the agency companies.
While many of the local companies would
have been willing TO carry their share Of
the mercantile risks at the old rate, they
were deferred by the threat from the for
eign agency companies that if the increased
rates were not maintained the rates on
dwelling house risks would be attacked.
The rate on brick dwellings has never been
advanced; on the contrary, there has been
a steady reduction until We reached the
present low rate of % cents .4r hundred
per annum. so cents for three years and 70
cents for five years. These rates are as
low as will carry the risks assumed with
out loss and have. never been questioned
by the assured.
The object of the agency companies in
attacking these rates is to drive out local
competition and enjoy monopoly of the
local business at rates as Ghigh. or prob
ably higher than those now charged.
The locals are determined not to yield
without a struggle, and feel assured that
the citizens of Washington. when they
thoroughly understand the situation. will
give their support, the local companies
pledging themselves to the same prompt
and liberal adjustment of fire losses that
has characterized them in the past and the
lowest possible rates. consistent with sale
underwriting.
in Washington, assistingNp the support of
the local government. t0eyQprovement of
the city and the maintenanJ of it's citizens,
while the great bulk of those paid to for
eign companies go away from here. and, in
many cases, to foreign &Antries.
Washington institutions for Washington
people. L.