Evening star., 1900-10-13
POTOMAC COMPANYS VIEWS
POSITION ON LOCAL CONTROVERSY
AMONG Insurance MEN.
willing to osEOnApPomise, but Does Not
surrenderI Its Views ON
Multiple Agencies.

The following 1.-THE letter which has been
! sent by order of De directors Of the Poto-
| mac Company to- the joint committee OF
| Fire Insurance Underwriters representing
| the Middle Department Association, Asso-
citation of Fire Underwriters Of the District
and the Association Of Local Companies of
the District:
Gentlemen: In view Of recent confer
ences looking to the adjustment Of the diff
ficulties existing in insurance circles, and
in order to set at rest untrue statements
continually made and reiterated that these
difficulties could be adjusted but for the at
titude Of the Potomac Insurance Company
in refusing to agree to any compromise
this company wishes to place itself on rec
ord to the contrary. In thus acting we do
not surrender the views we have held as TO
multiple agencies, but simply show COM
promising spirit for the sake Of compro-
mise only.
The Terms Proposed.
I'VE will Join a new organization, to be
formed of all companies (or persons repre-
senting companies) engaged in the fire in
surance business, the Northwestern Ma
tional only excepted, upon the following
terms:
Il. That a change be made in the opera
tions of such association, in that an agency
company compact would be formed, un-
der a compact manager, to be appointed by
| the association Of the middle department,
who would make all rates and be governed
by rules formulated by the district commit
tee of said middle department after CONSUL
tation with the local association, except
rates certain preferred risks, which are
hereinafter referred to.
'2. That each agent firm of agents
and each local company shall make de-
posit of 500 as a pledge of faith and as
a fund to be drawn upon in case of conVic-
ton for violation of any rule.
''3. Upon the issuance Of the schedule
rates will agree to write all new busi-
ness or business expiring thereafter In con-
formity with said rates. We decline to dis
| turb existing policies before expiration.
a. We will agree that all business risks.
except the small properties. shall be rated
by schedule. the schedule being so revised
that fair increase in rating on this class
may be secured.
"5. That all relief rules shall be abolished.
"6. That this company will agree to re-
duce the number Of it's agents to six, that
being double the maximum number allow
ed any local company Being union of
the Potomac and Lincoln companies. we
claim as equitable the same number of
agents that both Of said companies would
have been entitled to, for in the union Of
said companies there was no amalgamatiOn
of agencies
"7. We will agree that all rates on dwell
ing houses (brick) be 20 cents one year, 40
cents three years and 60 cents for five
years, and on contents 30 cents one year,
tO cents tnree years ana W cents Tor nVe
years, and that rates on frame dwellings
and contents be as they were before the
recent reduction in rates, and that small
stores not subject to schedule rating be 40
cents.
A PrOviso Introduced.
provided, that the rates mentioned in
this section shall not be changed except
upon the affirmative vote Of three-auarters of
all the authorized votes cf said association.
at a regular meeting called for the purpose
after sixty days notice in writing to each
member of said association.
"s. A fair and equitable method of voting
to be agreed upon, preferably based upon
premium receipts, but under no circum
stances the present method.
I'm the event of our having to maintain
an Independent position we will agree to
abide by association rates, provided rates
are furnished us as promulgated The
above is by order of the board of direc
tors"
The communication was signed by John
Taylor Arms. president of the Potomac In
surance Company of the District Of Column
bia and dated October 10, 1900.