The evening times., 1900-07-11

The local fire insurance companies. thir-
teen in number. including the Potomac In
surance Company. met the Washington
Committee Of the Middle Department to-
day at II O'Clock and presented TO it their
side Of the local insurance tengle. that has
gone so far to vard disorganizing the entire
fire insurance business in the District. The
meeting was considered q most important
one by all concerned and a fun represen-
tation from the local companies was pres
ent
The position now taken by the compa-
nies of this city is that the cut OF rates
proposed by the Underwriters Association
as a whole against the Potomac Com
, pany would be unwise and uncalIed
Tor. number Of statements TO this ef-
feet were made by the representatives OF
the companies. II was also stated directly
and positively that should the Middle De
partmelt see fit TO ratify the action of the
Underwriters Association in cutting rates
the local concerns would withdraw in a
body from the association. and join the Po-
tomac Company. which was suspended a
month ago.
The committee heard the statement OF the
local concerns and will take il into con-
sideTation with the representations made
TO 1t by the committee from the UnderwrIt-
ers as a body yesterday. Il will make a
report on the Washington situation to the
hiuuIe department as a whole carly next
month, and on this report and the result
ing decision OF the Middle Department will
depend the fate Of the Underwriters $50
cation as 4 is at present constituted.
II Il IS decided tha: the rate cutting
| shall be adopted the local companies VIII
all withdraw Immediately. or rather viii
cease 10 be members Of the association bv
action already taken by them. contingent
on such decision 10 cut rates. IL is nm
eerstood that in this event a new asso-ia
ZION OF companies will be formed in the
District
The position taken by the District com
panles Is that the cutting OF rates will ac-
I cOnpilSh 10 good purpose and that al
ready rates are too low instead OF TOO
/ high. They say tha: they could not do
business at lower rates On all classes of
I business and thar a cut on dwelling houses
"hlch IS The one row proposed. would nat
uraIly be followed by a general cut IN A
snort time Owners OF property not in the
dwelling kousc class would not sec the ius-
tice Of cut on this particular class ana
would demand that their property also be
included. they say. II the cut is MADE
against the Potomac Company and the oth-
Z A'f-i eAA' AA-1S4~ NAtf argue tlGt these non
member companies viii retaIlate by cutting
rates on business buildings. hotels. and ali
other classes OF risks
On the other hand 70 is urged by soma
tnat the cut OF rates may serve another
good purpose than the defeat OF the Polio
mac company The Northwestern National
Company is not a member OF the U1dpr-
writer's Association and has never been.
Nhen the association was formed il was
small concern in the District with aimos.
no business and Il saw chance to ge, q
strong fOothold by remaining outside
II is said, that IT has cut rates all the
time. and BY having q very large number
OF agents. and giving them large commits
slOns. has been able to DO an increasing
and profitable business from the start II
has rebateG small part Of the premium
10 owners themselves. In many cases. IL
IS said. and has thus. while obtaining viz
tualIy the regular rate. induced owners TO
insure heavily with IL in large numbers
The suggestion is made that II a general
rate war is precipirated the Northwestern
VIII have no advantage over anv other
company. and may thus be induced 10 join
any new association that may grow out OF
the ashes OF the present organization
II the Middle Department decided that
the cutting OF rates is not wise. and thus
sides with the local companies against
the Underwriters Association as 4 whole.
II is supposed that the Potomac Cunpanv
viii be allowed TO Join the asso .istion
again, and that the insurance situation
Will then revert TO that OF three months
ago In this event the question OF multi
pie agencies. on which the association AZ
first split. will be taken up again within
the organization, and an endeavor made
to adjust IL without friction
The present agitation. however. has
aroused the association 20 the question Of
the Northwestern Company which has
been an outlaw always and IL is not be
lieved that there will be any final adjust
ment now without some action toward get
ting this concern into line