AMERICAN INSURANCE RING.

Taranaki Herald, Volume XXXVIII, Issue 8535, 27 July 1889, Page 3

AMERICAN INSURANCE RING.

ACTION TOWARDS THE NEW ZEALAND COMPANY.

THREATENED CUT RATE WAR. The 'Frisco correspondent oE the Auckland Herald gives the follewing particulars respecting an American Insurance Ring, who wish to raise the rates. In San Francisco insurance circles there is_ a compact far maintaining rates, which, however, caa be broken by a small proportion of its members. Mr Hugh Craig of the New Zealand Insurance Company, is now arrayed against the entire force of the insurance union, and constitutes the "kicker," Ho holds that all companies may be permitted to open offices and employ salaried agents wherever a local company is in operation under similar conditions. A motion to this effect was voted down by the compact, and it is now in order to fine Mr Craig and compel him to close the agencies of the New Zealand Company that nra established at San Jobo and Los Aneelos. If he refuses to comply, the head office will be appealed to, and if the directors eustnin Mr Craig'i action then there will be a "cut-rate war Bt San Joae and Los Angeles until ho gives in. Mr L. L. Bromwell, president of the California Insurance Company, and Alfred Stillman, manager of the Pacific Insurance Union (otherwise the " Insurance Trust") are on board the Zealandia. Their destination is Auckland, where they propose to mike tronble at the head office of the New 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 in New Zealand. 11 1 see by one of the paperß," laid Mr. Craig, " that the Paoifio Insurance Union has prepared to carry on an aggressive war in the colonies. They h«ve an agreement by which four companies agree to unite joint policies in the colonies. For my part I think that a little New Zealand bußineßi will go a long way with the Californian combination. The New Zealand company has faced the strongest competition in the world since 1859. It is now possessed of over 2,500.000d01s assets. As far as we know the big English companies to which reference haB been made have not had a very rosy time oE it. Personally, I have not asked for any privileges from the Pacific Insurance Union that have not been allowed to other companies. I have always acted on instructions from the head office, and I do not think Bromwell and Stillman will make much by going there, I claim that our company hat the right to have agents in outside towns— as against the other gentlemen — in virtue of the following provision in the agreement :— "'The foregoing provision shall not prevent the bona file employ meri on a salary of one, person as city agent in Portland, Sacramento, Stockton, San Jose, Los Angelee, Oakland, or in any city or town in which may be located the bead office of a local company belonging to this Union.' "I feel no uneasiness at to the outcome. Whatever the head office decides to do will bt> sent me by the general manager at Auckland. Their instructions, whatever they be, will be carried out to the etter." Mr Craig has made an attempt to find out authoritatively just what action the Union took with the complaints against him. He called on Mr Charles D. Haven, of the Liverpool, London, and Glob* for a copy of the report and complaint of the New Zealand committee of the Union, which Messrs Biomwell and Stillman have in their possession. He aho endeavoured t9 get a copy of the vote as it stood against him. The answer of the astute Haven wssas follows :— "San Francisce, June 27, 1889. Hugh Crag, Esq., Manager New Zealand Insurance Company, San Francisco.— Dear sir,— Tour communication of June 25tb, addressed to Charles D. Haven, secretary, has been handed to me as chairman of tk-e special committes appointed to lay the matter of your position with tk-e Union before the head office of your Company, for reply. For reasons stated by Mr Btillwan and myself in the personal interview referred to in your letter, I beg respectfully to declinwto furnish you with the instructions given the Special Committee appointed to visit the head office 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 ■tood— forty ayes, seven naj s, and one excused. I am unuble to furnish you with the names voting. — Respectfully, Geo. W. Spenck." . Mr Craig, it matt be remembered, is a member of the Union, and still in good standing, and yet has been given no attempt whatever to present hie answer to the charges to the Company. The California public at laree is with him in bis trouble. The Pacifit Insurance Union is perhaps an arbitrary an organisation as has over been formed. All the ineuranco companies, practically, are in it, and they charge what rates they please for insurance. They have been at ©very session of tho Legishtnre with means and influf-nce to prevent any lenisla'ion affecting the compact. At the last session they defeated a bill declaring all trusts i'legal, and anotl «r one ziantins the paople (he right to form mutual ineurnnce cojiponifß. The public will support Mr Craig right along, no rratter what trie cause for the fi«ht may be.