New-York tribune., 1910-07-21
.FAvORS PROFIT SHARING
Evans's Reason for Not Joining
Fire Underwriters Association.
SHUTS OUT TWO COMPANIES
Insurance Officers Talk OF De
fusal and It's Effect on Ne"
Organization.

The success OF the newly orsS---1e
Fire Underwriters Association Is
probIema+icaI than ever. Insurance.
consider. now that Henry Evans mas
fused 10 allow the Continental anu iOei-
Pheuix companies, which he dorn1hales' -
become members.
Mr.. Evans. who was travelling II ad
when this organization was being 1o4 -
returned to the city recently his aC'.o-
with regard TO joining an assoclaI'oll
should limit the commissions paid Drohe1
and agents was awaited with great interest
nv the companies which had already sls4ieu
the constitution and bylaws. In q 4e'lei'
dated Wednesday. written 10 commute
of the Underwriters Association haNlne
+he enlargement of the membership II
charge, he said:
1.-THE fact that no provision is mace IoF
the payment of a contingent or pronI sil1A4
ing commission would alone prevent US
from having membership in this orsanlza-
tion: P7rst. because large percentage VI
our agents reporting TO the New 4orK
office are compensated on this plan' anu
second because we believe that such coln-
pensation is desirable from the standpoint
Of the public, the agents and the GULL
panies.
An insurance officer actively interested III
the success of the new association salo yes
rerday that Mr.. Evans's refusal TO JOIN IaU
not come entirely as a surprise Inc CoH-
tinental, which is one Of the strongest II .
Insurance companies in the country mas al
ways been a good deal of free lance aS
this man expressed il, but the members U
the association had derived some encouE-
agement from the fact that Mr. Evans nao
ioined the Western Union. which does noL
permit the payment Of commissions oo-lLll1-
gent upon the profits OF company "ileN
he took over the Phenix-
But there is no reason Why Evans s re-
fusal should have any appreciabIe effect
upon the success Of the ASSOCIATION Il-l9
informant continued. Already companies
representing something over 20 per cent OF
the premium income in the territory al
fected (the East and South have joined
it. It is too early 10 say whether the fall
1re 10 include the Continental and the
F4delity-Phenix has weakened the ale
glance Of any of these companies, Dut !
don't expect It TO have that affect No
mobilization of the bylaws is contemplated
in an effort TO win over Mr.. Evans, and
Mr.. Evans has suggested no change WHICH
might alter his decision"
4 prominent insurance broker gave II as
his opinion that the new association would
20 10 pieces as d result of its attempt 70
regulate the local exchanges in the four big
Eastern cities. The New York Fire IN
sIlrance Exchange he considered the
strongest and most highly perfected in
sIrance organization of its kind in the
world. It's rules allow 10 per cent commits
sions to brokers on manufacturing and
heavy merchandise risks, 15 per cent on the
lesser commercial risks and % per cent on
dwelling houses and household furniture
and superior buildings. a compromise
Of Is per cent on all these risks has been
suggested by the members of the exchange.
but the Fire Underwriters Association
would limit the commissions to brokers IN
New York City 10 q fat 10 per cent, ex-
eept on dwelling houses and stables and
their contents. on which it would allow the
payment Of 15 per cent
They never viii consent 10 it." said the
broker
IF they don't" said the insurance officer,
the members of our association will refuse
to do business through the exchange"
And il is just here that Mr.. Evans hopes
IN raaTl his harvest