New-York tribune., 1910-06-30
Brokerage Charges Limited.

| Section / of the bylaws of the latter is
| devoted to telling these local organizations
and others only less important, such as the
| Allegheny County Pittsburg1 Board of
Fire Underwriters, the Association of Fire
! Underwriters of Baltimore City and the
Fire Insurance Society of Newark, that
| brokerage on certain risks shall be limited
| to 10 and 10 per cent.
Not so essential but still important to the
success of the new association is the in
| clusion in its membership of the two COM
| panies controlled by Henry Evans. the
| Fideity-Phenix and the Continental. 1t
was the Continentars policy for years to
| remain outside all associations for regulat-
| ing commissions. 1t has been in the habit
| of paying it's agents small cash commits
sion plus a proportionate share Of the
| profits of the company. In the years in
| which this policy was pursued the COM
pany built up one of the strongest buSf-
| nesses in the country.
Recently, however, 1t entered the Western
Union. very strong association covering
| Middle Western territory, after which the
| Fire Underwriters Association is to some
| extent patterned. When Mr.. Evans took
| over the Phenix Insurance Company, fol-
| lowing the exposure of defalcationS on the
| part of President Sheldon, he was con-
| fronted by the separation clause in the
! bylaws of the union.
! This provides that no officer. manager or
| agent Of q union company shall represent
| a nori-union company. The PheniX was a
| union company and had some $500 union
| agents scattered throughout the West,
which it could not afford to lose. The FL
| delity and Continental were non-union
| companies To save the Pilenix Mr..
| Evans chose to enter the union.
Has "Separation Clause" Too.
The bylaws of the new Fire Underwrit-
| ers Association contain a separation"
| clause Mr. Evans will have to jump in
| over all or not a all if this is retained. He
| is still in Europe, so the proposition hasn t
vet been submitted to him.
The companies more particularly inter
| ested In the formation of the Fire Under
| writer's Association are members of the
| old Eastern Union. Two decades ago this
| organization. though never strong as the
| Western Union, included in It's member
ship a number of the strongest companies
| in the East. But owing to the rapid
| growth of outside companies and conse-
! ouent stiffening of competition the union
| membership has dwindled until finally 1t
! has become practically negligible factor
| in the situation. The local organizations of
| the great cities were always excepted"
| from its regulations. and it did not attempt
| TO enforce a separation clause.
The Connecticut Association of Fire In
| surance Agents has passed resolution
| asking the Fire Underwriters Association
| that greater commission than Is per cent
| be allowed as compensation to agents tor
| conducting their depar. ment of the bust
ness under present conditions
| The members complain that the improved
protection against fire and construction of
| buildings have resulted in lower rates TO
the insuring public and consequently de-
| creased incomes to agents. while the cost
of living has been increasing