The times. [volume] (Washington [D.C.]) 1897-1901, 1900-07-22
THE INSURANCE fight
Eleven Of Thirteen Companies De-
sert the Underwriters.
A Meeting to BE Held Tomorrow. at
which the Difficulties AIny BE Adj
justed - Threats of a Rate War
Being Made-TaIk Of Conpro-
mfse-An Unxatisfactory Prospect.

The local insurance situation is consid-
cred by prominent insurance men gener-
ally to be in worse condition than at any
time before. The Washington companies
are rapidly resigning from the Board OF
Fire Underwriters. and 1t is believed that
before the close of business tomorrow
eleven Of the thirteen concerns will have
ceased to be members.
The Peoples Company resigned yester-
day, thus making the number already OUT
side nine. These companies are the Po-
tomac, the Firemen's. the Metropolitan, the
Arlington, the National Union, the Co
lumbia. the Peoples. the Colonial. and
the Commercial. The organizations still
connected with the board are the Riggs.
the Franklin. the German American, and
the Corcoran. OF these four it is under
stood that the Franklin and the Corcoran
have already decided to withdraw, SO that
there will only remain loyal to the associa-
ton the Riggs and the Characterization.
These two concerns. it has been under
stood from the first. would not resign.
There will be a meeting Of the local
companies tomorrow to consider the mat
ter of further steps to protect their busi-
ness against the outside companies, which
now almost exclusively form the associa-
ton It is understood that preliminary
action looking to the formation Of a sep
arate organization will be taken. The
question Of rate cutting against the agency
companies and Of retaliation II the agency
companies cut rates. will also be discussed
fully, though 1t is not probable that any
definite action will be taken
The association on its part is also con-
siderfng the question Of cutting rates. Ac-
cordfng to the new rules that went into
effect q week ago no rates were to be cut
until September Is. The new reduced
rate on preferred risks was scheduled to
20 into effect on that date. 1t is now un-
derstood to be probable, however, that this
cut may be made Immediately by the ASSOC
citation on account Of the withdrawal Of
the local companies.
Neither OF the local concerns nor the
people Of the Board Of Underwriters seem
to be willing to hazard surmise rs to
what the final outcome Of the insurance
flght win be. but II Is the general opinion
that 4 vicious and destructive rate war
is now very nearly unavoidable. % = pre-
1iminary to any reorganization Of the board
on q harmonious basis. Each party is veSy
bitter On account Of the stand taken BY the
other, and test Of strength seems even
to be desired. although II il known that Il
wfll mean heavy financial loss to all con-
cerned and q general Reorganization The
local companies win lose premiums and
the agents will lose commissionR
An -eeRcer Of one Of the local companies
said yesterday With reference to Its action
In Withdrawing from the board: Ny COM
many A. rs.s.pr.,xe6 ~ s,oneervaffve men and
there was much hesitation about taking
% radical step. We believe thoroughly
in IN underwriters' association n the IRE
Insurance business and We hope that mat
tegs win be adjusted at an early date.
There vas, however, no possible step for
us to take except to resign after the action
Of the 0elcers u the present organization
lAst week It u, We believe manifestly
QUE q the question for NJ TO remain .
member and cay dues to support the as-
pectaston when every recent actioa taken