The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1910-11-09

The Hon. J. A.. Hartigar, Minneso.
emphatically, declared against the high
expense incurred by the Stock fire
insurance companies and adds:~
eff the companies are unable to re-
duce the commissions to reason
able figure, it would seem that it can
be done only by legislative enactment
and this may prove to be necessary
in the very near future
Commissioner Hardison of Massa-
chusetts makes the same suggestion
and af6xes the following:
THAT 40 cents out of every $lOO in
premium should go to an agent for
his commission in placing a policy
seems rather large amount when
compared with the 90 cents which goes
to the company for paying losses and
all the other expenses. To be sure,
not all! premiums are subject to so
large a commission, but the tendency
is in that direction. Commissions have
advanced on the preferred class OF
business to 40 per cent in some cases
at the present time, with a tendency
still upward"
The Massachusetts, commissioner
4uA IASA SIolSS IAdl l1AS 44ASA NooS AAA
agents commissions now amounts to
about seven and one-half million dol
lars ($,50OO0) more, annually, than
on the lower commission basis of
ten years ago. Then he goes on rec
ord with the following terse conclu-
sion: The black type is. ours: j ,.
"Now, this is all very natural
outgrowth of the method of carrying
on the business on commission basis.
The companies want the business and
their demand works up the commits
sion instead of lowering the premiums.
Were the business done direct with
the customer, the natural way for the
companies to get it in competition
would be by reducing the premiums
and thus the competition would inure
to the insured's benefit, But as the
business is done through. agents, who
have come to control it, the competi-
ton for it must be in form attractive
to the. agent. The assured is elimin-
ated.'
THE LOCAL AGENTS POSITION.
The Stock companies are endeavor-
ing to reduce the agents commissions
but as an Illustration of their utter
helplessness in this matter we cite the
action of he Nebraska Local Fire In
surance Agents Association which re-
Gently notified the "Union"z fire in
surance companies that any reduction
whatsoever in agents commissions
would be opposed. All local agents
are unanimous in support of the posi-
ton of the Nebraska Agents.. Through
their invincible position in State and
National organizations they dictate
terms to the companies when it comes
to commissions.
On this subject the Insurance Post
"a stock company organ), makes the
following significant editorial com
ment: The agents realize the
strength of their position as the pro.
ducers of the business, and mean tC
make the most of it. They know how
to play one company against another
If it comes to an issue and they make
a fight the agents are apt to win.
-, These are conditions we'll under
stood in the inner circles of fire u1l-
derwriting, but the Massachusetts, com
missioner has only told half the story
This elimination" of the assured as q
factor in fire insurance not only give:
free rein tosagents' commissions bu
the incendiary peculator is treated By
the public with courteous indifference
INCENDIARIsM.
No doubt over one-half of the fir,
losses are due to incendiarism fol
gain. When public sentiment reduce!
the fire bug to the social status o
the horse thief; classifying him ii
the public eye with other atrociou!
criminals, we will have decided re
duction in FIRE losses. A FIRE bug doe
not "sell out" to the insurance com
panies but to the community.
The Hon. Clifford Pinchot, chairman
Of the National Conservation Commits
sion, suggests the following line Of &C
tion:
THAT the public should Be brough
TO understand that property destroyed