The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1902-07-24
Higher InSuranCeRateS?
FIGHT or THE SOUTHEASTERN TARIFF AS
SOCIATlON AGAINST THE GREENSBORO
COMPANIES.
Demand of rs Per Cent. Advance In
Rates Which the Independent Com.
panies Refuse to Make-A Matter of
Vital Interest to the People of North
Carolina.

panies Refuse to Make-A Matter of
Vital Interest to the People of North
Carolina.
As most of the readers of the GOLD
LEAF know for some time there has
been great stir in the fire insurance
circles in the State.
This trouble, it seems, was Lrought
on by the Southeastern Tariff Associ-
alton, which is one of the worst
trusts in the United States. This
Association is composed of almost all
the foreign, and large majority OF
the American fire insurance compa-
MES and has attempted to raise the
price of fire insurance 25 per cent. in
North Carolina. In order to make
this raise they are trying to dictate
to the three Greensboro companies
and are doing everything in their
power to force the North Carolina
companies to charge the advance rate
which they have refused to do. For
this reason war has been declared on
the Greensboro companies.
The associated companies claim
that they have lost large amount of
money by disastrous fires, such as
the great fires in jacksonville, Fla,
and Paterson, N. j., and elsewhere,
and for this reason they demand 20
per cent. increase of rates on all
classes of risks, except dwellings,
churches and brick stores.
With this general increase in view
the representatives Of the different
Association companies met in New
York City on the Goth of last Febru-
airy and passed a resolution requiring
their agents to demand the 20 per
cent. increase in rates. The wires
flashed the news and the local agents
in every city, town and hamlet in
North Carolina received their orders
and, like vassal slaves, were forced
to demand the increase.
This little increase, as they are
wont to term it, costs the people in
Henderson something over 81, 900 a
year, or, in other words, The people
in Henderson who carry insurance
are called upon to pay more than
81 900 n month in addition to what
they paid last year for the same insu-
rance.
This uncaIIed for and unprece-
denied increase in rates has created
confusion and Consideration among
the business men all over the State.
All companies belonging to the Asso-
citation entered into an agreement III
force all their agents to demand III"
% per cent. increase on all policies
written since February 20th, last.
Mr.. McAlister, the manager of the
Greensboro companies, called the AS
sOciation's attention to the fact that
their sworn statements showed that
during the last three years the tire
insurance business in North Carolina
had been more profitable than at any
other time III many wears; and for
this reason the high rate should not
apply to North Carolina. and re-
quested the Association to recall
their demand for higher rate.
This request was answered by the
Association demanding that Mr.. Nc
Alister increase rates, accompanied
companies out of business if they re-
fused to demand the 25 per cent. in
| crease.
Be it said to the credit Of Mr.. Meal
lister and his companies that they did
refuse to be dictated to and are still
writing insurance at the old rate,
Notwithstanding the threat.
The managers of the Greensboro
companies at once issued circular
letter to their agents advising them
to disregard the ruling of the Assoc
citation saying that they had made
money writing insurance at the old
rate and proposed to continue at it,
The Greensboro companies contend
that the advance in rates is uncallsd
for in North Carolina as all properly
managed companies have made money
writing at the old rate; they further
| contend that it is not right fol
the companies to exact an unfair rate
from us in order that they may make
up what they have lost in othe,
| States.
The Association companies are not
at all pleased with the bold stand the
Greensboro companies took and have
combined their money and brains and
are using every effort to force the
Greensboro companies to charge the
advanced rate. They started out BY
forcing all the local agents to sigr
the following agreement and resoln-
tions which speaks for themselves:
| AGREEMENT
We hereby give our pledge that
we will, on and after this date, col
lect the full tariff rates, including
the % per cent. increase. upon all
risks subject to said increase, and
will send daily reports. endorse,
ments and Cancelled policies of all
companies represented by Us through
the Stamping Office.
We further give our pledge that
we will not place business with. nor
accept business from any agent who
has not signed this pledge or one
| similar thereto.
Ii we desire TO be relieved OF this
pledge we agree to give each of our
companies thirty days notice in writ
ing of such intention.
RESOLUTIONS
Resolutions adopted by ----
Local Board - 1902: