Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1912-01-15
INSURANCE men
TO FIGHT TRUST
Big Companies Try to Cut
Down Commissions of
Their Agents.
'MIDDLEsEx MEN FIGHT
Companies Proposed Com
promise and Want Back
BaIances-sLmit Today.


This is "Blue Monday to the
many fire insurance agents of Mid
dlesex county. Although 1t has not
been generally known New Jersey
fire insurance agents have been nav
ing stormy time OF 1t since June ;,
l1911. Aslarge majority Of the prin-
cipal fire insurance companies doing
business in the United States are or
ganized into what In the eastern
states is called the Eastern Union
and in the western states the West
ern Union" Some reformers are
wont to call these SO called unions
plain every day trusts" whereas
the companies themselves claim
! that for the proper conducting Of
the business Of fire insurance the
union is necessary.
Local fire, underwriters and agents
are not in any way connected with
the Eastern Union and the. average
local agent paid little attention to
the fact that there was such thing
until one day last summer, like a
thunderbolt out of clear sky, every
agent in the state who represented
one or more of the Eastern Union
companies was notified that from
that date on the companies In the
union would pay what was known as
a sliding scale rate of commission
provided the agent signed cast
iron agreement to do business on
that basis not only with the union
companies but the non-union ones as
well. Failing to sign said agreement
the Eastern Union said that the COM
mission would be a fiat rate which
In many cases was about one-half
what the previous compensation had
been.
Naturally there was some baking
on the part Of the insurance men
and very few agents signed the new
agreement. Instead there was or
ganized what is known as the Mid
dlesex County Insurance Society Of
Fire Insurance agents and every
month since then this society has
been holding meetings behind closed
doors In either New Brunswick or
Perth Amboy. Some stormy debates
were held and Midd1esex county be-
gan to be known the country over
lamong insurance underwriters as
1.-THE "hot bed" Committees OF The
| Eastern Union and Middlesex Insur-
/ lance Society had meetings but the
| Middlesex men held out against any
Ercduction in commissions.
Finally, November / last, the
Eastern Union effected a compror
mise with the agents regarding COM
missions but at the same time efforts
were made to make the agents pay
SO called back balances representing
the difference between the old rates
NJ {aui ~, MI En Zoe
lposed hut not accepted last June.
I Tne agents refuse to recognize the
proposition of the Eastern Union of
last June, contending 1t takes two
to make bargain and that they ac-
cepted no agreement but that of
| November /. Polite requests were
made of the agents to settle on the
basis of the June proposition but to-
a man the Middlesex county agents
refused to consider the matter, argu-
| ing that there were no back ball
ances.
The past few weeks things have
been getting pretty. warm 1t Is under
stood and drastic measures were de-
cided upon, 1t is said, by the Eastern
Union companies who hold the ball
ance of power In the insurance
world. Every agent in the state has
been notified that he must settle up
on or before January is or every
Eastern Union company will With
draw from the agency where the
difference exists. Such a step would
hurt inasmuch as many insurance
agencies would be wiped out entire
| " and 1t would mean almost COM
plete revolution OF the fire insurance
| business.
| There are some companies Of size
not in the union but these could not
livery well write all of the business to
be written and q double set of agents
in every county of the state would be
demoralizing not only to the inter-
ests OF the public but also to the
/ agents and the business 1t la argued
| by the agents.
Saturday, at New Brunswick, an
urgent meeting of the MiddIesex
agents was called and 1t la under
stood important action looking to q
smoothing over of the situation was
ltaken. The agents say they Will
never give In until forced and then
with strong protest.