THE INSURANCE DISPUTE.

New Zealand Herald, Volume XXVI, Issue 9424, 23 July 1889, Page 5

THE INSURANCE DISPUTE.

FURTHER PARTICULARS. INTERVIEW WITH THE AMERICAN DELEGATES. The American Commissioners, Mr. L. L. Bromwell, president of the California Insurance Co., and Mr. Alfred Stillman, manager of he Pacific Insurance Union,who have come to Auckland by the mail steamer to interview the directors of the New Zealand Insurance Company relative to the action of Mr. Hugh Craig, manager of the San Francisco branch of that, company, in breaking away from the rules of the Union, had a preliminary interview yesterday with Mr. G. P. Pierce, the general manager of the company, who received them courteously, though not hing much has as yet come of their representations. The point at issue between the Union and Mr. Craig is this, that he having been a member of the Union and a member of the committee which had originally framed the rules and rates, had violated one of the rules by appoint ing local insurance agents in Stockton, Sacramento, and Son .lose, paying them fixed salaries, which, it is alleged, is in violation of a rule of the Union, which forbade companies paying more than '20 per cent, to local agents, and Mr. Craig was lined 750 dollars by the manager for Ins alleged infraction of the Union's laws, and directed to change his method of paying the local agents. He has refused to pay the line or alter his mode of payment. The object, of the American Commissioners is to get the head' office to compel Mr. Craig to fulfil the original agreement. They state that all tho companies do is to pool their experiences but not results ; that 40 officers, representing I'2o American and English Insurance Companies, endorse the action taken ; and that wisdom can scarcely be the sole possession of Mr. Hugh Craig ; that; if his action is persisted in, it means that all these companies will have to employ salaried officers in each town instead of doing their business by agents on commission ; that that means less profits, larger expenditure, higher rates, and a cut-throat competition, ruinous to shareholders. Mr. Craig, on his side, defends his action on the ground that a new set of circumstances has arisen, in which his company lie New Zealand) is placed at a disadvantage. He points out that many of the local insurance companies were allowed advantages from which he was debarred, and that, it was impossible to do business in certain places handicapped by the restrictions of the Union. Experience also had taught him that the safest and best class of risks were obtained by a salaried officer, whose living and promotion depended on doing a good business, rather han by men on.commission. He disclaims any desire of acting in intentional bad faith towards the Union, and goes on to say in his statement of his case, "should there bo as a result of this contention between the Pacific Insurance Union and myself a sus pension of rates, it would mean a disorganisation of the Union, and a loss to the profession of all the money already expended. I should regret this exceedingly, and submit that the time has come when the majority of the members of the Union should call a halt, and endeavour, if possible, to find a medium course by which the rock of disorganisation may be avoided and the advantages of the Pacific Insurance Union retained for the interests of all concerned."

Messrs. Bromwell and Stillman assured the member of t he lli:i:au> stall who interviewed them last evening at the Northern Club, where they are putting up, that there was no truth in the statement that the Pacific Insurance Union intended to establish business in this colony, and compote with the New Zealand Insurance Company. They are hopeful of settling everything by peaceful negotiation, and judging from the courtesies exchanged on both sides, the " war" is being carried on with rosewater. On Sunday afternoon, Mr. 0. P. Pierce was taking a stroll up one side of Mount Eden, while Messrs. Bromwell and Stillman, chaperoned by Mr. Mearns, general manager of the Union Company (N.Z.), the New Zealand representative of the Pacific Insurance Union, clambered up the other side, and they met on the top, at the ther I have simply done my duty in repelling a grave attack on the incrater, which was the only volcanic adjunct to the interview. The Americans were simply delighted with the magnificent view of sea and land, forest and plain, spread out before them. Mr. Pierce's view of the situation so far, is that Mr. Craig was justified, in the interest of the New Zealand Insurance Company, in taking the step he did. He presumes America is a free country, and that it is a hard thing if a company cannot employ a salaried agent instead of a man on commission to do its business, if it finds that course best. The New Zealand Company did not interfere with the other companies, but gave them the liberty of action if claimed. Messrs. Bromwell and Stillman will stay here a week, looking round. Their visit is one of pleasure as well as of business, and they will next week visit the Lake Country, going on through the colony by the East Coast, and coming back by the West Coast to Auckland so as to return to the States again.