AMERICAN INSURANCE RING.

New Zealand Herald, Volume XXVI, Issue 9423, 22 July 1889, Page 5

AMERICAN INSURANCE RING.

ACTION TOWARDS THE NEW ZEALAND COMPANY, THREATENED CUT RATE WAR. CARRYING THE FIGHT INTO THE COLONY. ARRIVAL OF OFFICIALS. [FROM OUR OWN co-respondent.] San Francisco, June 29. In San Francisco insurance circles there is a compact for maintaining rates', which, however; can be broken by a small proportion of its members. IlUgh Craig, of the New Zealand Insurance Company, is now arrayed against the entire force of the insurance union, and constitutes the "kicker." He hold 5 that all companies may be permitted to open offices toil employ salaried agents wherever a local company is in operation under similar conditions. A Motion to this effect was voted down by the calapact, and it is now in order to fine Mr. Ci'alg and compel him to close the agencies of the New Zealand Company that are established at Sail .lose alui Los Angeles. If he refuses to comply, the head ollice will be appealed to, and if the directors sustain Mr. Craig's action then there will be a "cut-rate" war at San .Jose add Los Angeles until he gives in. L. L. Bi'oinwdll, president of the California Insurance Company, and Alfred Sttllinan, manager of the Pacific Insurance Union (otherwise the "Insurance Trust") are on board the Zoalandia. Their destination is Auckland, where they propose to make trouble at the head nlllefi of tfio jNcw Zealand Insurance! Union. It is their intention, if their complaints against Hugh Craig, the manager of the San Francisco office, are not heeded, to make preparations to carry on a fight against the company iti New Zealand. "I see by oiie of the papers," said Mi'. Craig, "that the Pacific Insurance Union has prepared to carry on an aggressive war iii the colonies. They have ah agreement by which four companies agree to unite joint policies in the colonies. For my part I think that a little New Zealand business will go a long Way with the Californian combination. The New Zealand company lias faced the strongest competition in the woi'ld since 18511. It is now possessed of over 2,f>Uo.ooodols assets. As far as we know the big English companies to which reference has been made have not had a very rosy time of it. Personally. 1 have not asked for any privileges for the Pacific Insurance Union that have not been allowed to other companies. I. have always acted on instructions from the head offices, and I do not think Bfamwell and Stillman will make much by going there, I claim that our company has the right to have agents in outside towns—as against the other gentlemen —ill virtue of the following provision in the agreement : — " The foregoing provision shall not prevent the lionet fid(< employment on a salary of one person as city agent in Portland, Sacramento, Stockton, San Jose, Los Angelos, Oakland, or in tiny city or town in which may be located the head office of a local company belonging to this Union.' "1 feel no uneasiness as to the outcome. Whatever the head office decides to do will be sent me by the general manager at Auckland. Their instructions, whatever they be, will be carried out to the letter."

Mr. Craig has made an attempt to find out authoritatively just what act ion tlie Unioii'took with the complaints against him. He called on Mr. Charles D. Haven, of the Liverpool, London, and Globe for a copy of the report and complaint of the New Zealand committee of the Union, which Messrs. Bromwell and Sttlliiian have in their possession. He also endeavoured to get a copy of the vote aR it stood against him. The answer of the astute Haven was as follows :— " San Francisco, June 27, 1S8!). Hugh Craig. Esq., Manager New Zealand Insurance Company, San Francisco.—Dear sir,—Your communication of June 25th, addressed to Charles 1). Haven, secretary, has been handed to mo as chairman of the special committee appointed to lay the matter of your position with the Union before the head otlice of vour company, for reply. For reasons stated by Air. Stilhnan and myself in the personal interview referred to in you! , letter, I beg respectfully to decline to furnish von with the instructions given the special committee appointed to visit the head oflice of your company. In compliance with your request for a copy of the vote taken upon the resolution referred to in your letter, I would state that the vote stood —forty ayes, seven nays, and one excused. lam unable to furnish von with the names of members voting.—Respectfully, Gko. \Y. Spknc'K." Air. Craig, it must be remembered, is a member of the Union, and still in good standing, and yet has been given no attempt whatever to present his answer to the charges to the company. The California public at large is with him in his trouble. The Pacific Insurance Union is perhaps as arbitrary an organisation as has ever been formed. All the insurance companies, practically, are ill it, and they charge what races they please for insurance. They have been at every session of the Legislature with means and influence to prevent any legislation affecting the compact. At the last session they defeated a »ill declaring all trusts illegal, and another one granting the people the right to form mutual insurance companies. The public will support Mr. Craig right along, no mutter what the cause for the fight may be.