The Tupelo journal. (Tupelo, Miss.) 1876-1924, 1909-09-24


to tell you what rate they made
on the Wagner building, did
you not write them that you
would understand that they and
their company would be con-
sidered by you as not following
the correct Practices? And was
not the effect of this letter such
that from thence on you would
consider them as being in the
category of an independence
Company? Was not his offense
that of cutting the Rating Comp
anies rates, and then did you
not withdraw your company
from the agency of a friend and
neighbor in your City a few days
after this correspondence ended
for no other reason than that he
had written this policy on the
Wagner building for less than
the rates of the Rating Company
and because he represented a
company that according to the
Rating Company and yourself
did not follow CORRECT PRAC-
TICES? Now COL, my informa
ton is that a true answer to the
question will demonstrate that
you did claim such an UNDER
STANDING and that You are the
man who first began the separa-
ton movement in this state by
withdrawing from the McRaven
Agency.
Another thing we charge in
our bill is that one of the meth
DDS adopted by the Regulars or
Sheep Companies against the IT.
dependent or Goat Companies as
your crowd calls them or the In
dependent or Cut rate Compa-
nies as you designate them, is to
try to destroy confidence in
them. If you will read over
your Illuminating contribution
again | think you will discover
that the leading idea after dis
approving Of me is to warn the
public against INDEPENDENT
or CUT-RATE Companies.
What is an Independent Com
pany? Is it not one which con-
ducts its business independent of
other companies and write risks
for such rates as it deems proper
and pays its agents such com
missions as it sees proper, and
follows such practices as it sees
proper, and this regardless of
what the other companies do?
This is what the regulars call
not following correct practices,
if | am Correctly informed and
is Indicated by your letter to
LIE Blanc & Railey. Is your
company independent? If not,
why not, and who are you de-
pendent upon? Does your Com
pany cut the rates of the inspec-
ton and advisory rating compa-
ny, and if not, why not? If you
say you do cut them in S m e
cases, are you not a cut-rate
company, and if you do cut them
why should it have been such
grave offens for the Globe G
Rutgers Company for cutting the
rate on the Wagner building in
your city? Hold your torch a
little higher and illuminate the
whole situation, If you answer
that being a subscriber to the
rates Of the rating company you
feel bound to follow those rates
then explain how this is not put
ting the conduct of your busi-
ness to some extent in the con-
troll of others. This is another
violation of the law and one of
the charges in our bill.
You say healthy competition
is good in all lines of business,
but reckless and unrestrained
competition in fire insurance
works harm. Now the rating
from whom you buy
your rates is paid according to
the premiums the patron collects
the higher the premium the more
money the rating company gets.
Now suppose the companies all
adopt and maintain these rates
where do the people Of the state
come in.