The evening times., 1900-07-26

That the Association Of Fire Underwrit-
ers Of the District Of Columbia Will retail
late upon the local seceders from that or
ganization by the institution of a rate vs. ar
appears to be a matter Of Indifference TO
the local companies. The suggestion that
the present rate OF 25 cents will be re-
duced by the underwriters to . cents on
the thousand is ridiculed as preposterous
threat. II is pointed out that the local
companies are better able TO support the
reduction in rate than are the foreign com
panies. from whose profits must be deduct
ed the large commissions which are paid
to their general agents.
The present insurance business OF the
District OF Columbia is in the neighborhood
of $2Oo coo per annum, and the proposed re-
duetion in rate would decrease this amount
to sac 000.
Any action that would involve so great
q loss would not for a moment be enter
tRined by any company. The local com
psnies would refuse TO write insurance al
the 5-cent per thousand rate. and in con-
sequence the whole loss would fall upon
such companies as were satisfied to take
the business
The threat to Go business at a scent
rate is enc that has been made before by
the president OF the Underwriters. it is
claimed. and occasions no terrJrs among
the seeding companies.
Local insurance men state that there Is
no misunderstanding Of the object OF the
foreign companies who formed the majOri-
ty OF the Underwriters Association. in re-
ducirg the rates on preferred risks. such
as brick dwellings and small stores This
business. they state. was controlled by the
local companies. and the action of the I'm
derwriters' Association was an attempt TO
take IL away.
The position OF the Potomac Insurance
Company of Georgetown is not at al
enigmaticaI. It's sympathies are entirely
with the local companies, but it is unable
TO take definite action until the next meet
ing of the board OF directors This meet
ing viii be held August 6. and there is no
doubt, If the situation does not change n
the meanwhile, that the Potomac Company
will raneg itself in the ranks Of the
ceders- An officer of the company stated
this morning:
Our sympathies are with the oppressed.
The action of the Underwriters Assoc alton
is an attempt on the part Of a clique o.
agents representing the foreign companies
to wreck the local institutions and drive
young men who are just starting out OF tn
business. II viii not succeed The local
companies viii have the support of the
people Df the District.
There has been a good deal OF misrepre-
sentation of the position of the Potomac
Insurance Company il the fight but our
views are not at all doubtful. There is.
however. no action that can be taken be
fore the meeting OF the board Of directors,
and there is nothing for Us to do but wait
until that occurs"
No organization Will at present be form
ed by the local companies. who prefer not
not TO have their hands tied by any spe-
cial agreements perfect UNDERSTANDING
however, is said TO exist between them. and
they Will work in harmony
It is understood that the backing Of sew
oral foreign companies who are not now
doing business here. but who would be
pleased 10 take the surplus business Of the
local companies, Is at their d. sposal
These are all strong institutions. and il
may be counted on that they Will furnish
rates to the local companies which will
enable them to meet any cut that the op-
position may make