Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-04-22
Western Union Insurance As
ISOLATION Will Reduce the
Commission of Agents
PAY LESS IN LARGE CITIES
Important Action Taken at the Con-
vention Held at Atlantic City -
Details of the Plans Turned Over to
a Governing committee-NearIy All
the Companies Represented.

Atlantic City, N. j., April ERE
duction of commissions in the large
cities of the west was decided upon
yesterday by the Western Union Insur-
ance Association. 1t Is conditioned,
however, upon securing the co-opera-
tion of the companies writing 80 per
cent of the premiums In each city. The
details of the plan were turned over
ITO the governing committee which will
suit its arrangement to the peculiar
conditions existing In each city. 1t was
providing for a reduction in the COM
missions paid for business as soon as 1T
could secure the required degree Of CO.
operation.
No limit was fixed, that being left to
the committee, but the general feeling
was that not more than 10 per cent
should be paid for commercial stocks
in any city, 20 per cent for buildings,
so per cent for preferred business and
as much less than that as possible
In some of the cities lower figures
than this can be secured, but this Is
reduction of more than per cent in
the average commissions In Chicago.
On the annual premium income this
will mean "a saving to the companies
of 100000 In that city alone. The re-
duction of the commissions paid local
agents necessarily will involve re-
ductipn on their part of the amounts
paid brokers and other middlemen.
The question Of salaried solicitors
also will be decided. Most of the lead
ing local agents favor the change, since
the excess commissions that have been
paid have been used up in excess hrok-
erages, and at the lower commissions
they will have at least as much left.
will reduce the competition and will be
cutting off useless tax. 1t being con-
coded that the expense was too great.
This decision was not reached without
struggle.
The Increased large cities committee
consulted with various members till
midnight Wednesday and held another
session yesterday morning. In the meet
ing there was NO opposition OF any mo-
ment to the general proposition that
expenses should be reduced. the Tor
onto confiagration having removed the
last vestige Of contest. There was
some question, however, as to whether
the needed CO. operation of the outside
companies could be secured, and this
led to the plan which leaves these
negotiations to the governing commit
tee. If 1t cannot get the required per-
centage in one city it may in another.
and it is believed that time would
bring the other cities in.
For years the union has stood ready
to take up the question of reducing
commissions in the large cities as soon
as the consent of 80 per cent of the
outside companies could be secured.
The new deal is much more liberal as
it requires the consent OF the COM
panies writing 80 per cent of the pre-
iniums, and the union companies alone
do SIS per cent of the business. The
concession is figured as being three
times larger than the former are.
The union companies are differen-
tiated from the non-u union companies
principally by the fact that they limit
the amount of commissions thatic can be
paid the agents. Chicago, Milwaukee.
st. Louis, Louisville, Cincinnati and
Cleveland have been excepted from this
rule, however, the local underwriters
having Jurisdiction as to rates and
there. 1t is now pro-
posed to restrict the latter, and the
company sentiment is strongly toward
a limitation of the agents control of
rates also.