THE INSURANCE TARIFF. IMPORTANT MEETING.

Wanganui Chronicle, Volume XXV, Issue 10229, 21 June 1883, Page 3

THE INSURANCE TARIFF. IMPORTANT MEETING.

A lares and influential meeting of •We also present Messrs Drew, F- W.. T?Wn, W. P. Cuvrie, James Lairu, Or. Evans, w. a • H Hanson, •onrf Tin"oy.— His YTorsn-p t-ueny ex ■rfainod fceUnre of the busing wbicn was j^iojjoscu w do rtojjo

Mr Paul said that while in Wellington last week he had made inquiries, and found that the new tariff emanated from the Wellington agents of the colonial offices, and he entirely exonerated the local agents from any share in it. The insurance offices had not recently paid such high dividends as formerly, and therefore they put on higher rates to make them up. One officer of a colonial company had had his salary reduced owing to the diminished profits of the company, and he therefore called a meeting of his fellow agents to see if they could not manage a tariff to ' make up for past deficiencies. His (Mr Paul's) opinion was that colonial offices, instead of bsing a boon to New Zealand, were actually a curse. A fire occurred, for example, and the colonial office threw every obstacle in the way of a settlement, and he would tell the meeting why. It was because the system was bad. The offices appointed young agents, without fixed salaries and premiums on business, so of course the higher the rates the larger the remuneration. In the case of afire occuring, these agents had to pay 10 per cent, of the loss, and very often they had not the money to pay it. with, and so kept the insurers out of their money as long as possible. He could state a cnse in which the agent of the compauy said that it was impossible to settle, as it involved his paying £50 out of his own pocket, and he hadn't got the money. The insurer very soon arranged the small matter of £50 with the agent, and got the full amount of hid insurance money immediately. He (Mr Paul) blamed the agents for accepting risks as they did without the least inquiry, and then objecting to pay up at once. Many of the offices he was sure were not in favour of the tariff, but it was difficult for them to stand out from the reßt.;

Mr Pateeson said that he was insured in the National, and could state that »be agent had examined his • premises before insuring. Mr PAUL (continuing) said that he had been promised a sum of £95,500 of insurance for any office that would t*ke up their insurances at a reasonable rate. The resolution which he should propose ran as follows : — That this meeting considers the present tariff exsessive and oppressive, when taking into coßSideration the very small amount of risk from fire of any magnitude, with such an efficient fire brigade and grand water supply. Further, we are resolved not to accept the tariff, or pay more than 1^ per cent, for ordinary business premises; and that we offer (he wbolo of our business to one or more good English insurance companies, or any portion which they might choose to accept. And further, we agree to bind ourselves to accept the above rate (viz., 1£ per cent- for ordinary business j premises, and other premises per ratio) for a term of years, and to give that support independently of any rate that might be offered by other companies after the tariff is broken. He thought tbat they were not asking too much when they asked that the rate should be fixed at 1£ per cent. The committee who framed the present tariff were not unanimous. Mr Paul then referred to a tariff prepared and submitted to the committee by one of the local agents, which was much lower than that agreed to, which had been fixed mainly by tha influence of the Wellington delegates.

Mr B. K. Ward seconded the motion pro forma, He agreed that something required to be done to break the tariff, which was certaiuly too high, considering the nature of the risks that were run in Wanganui. It showed a great want of common sense and business tact to try and fix a monopoly at a time like the present, when everybody was struggling as business people in Wanganui were doing just now. As for himself, he should absolutely decline to pay the present rate. The meeting ought to offer £100,000 of insurance to any foreign company that would take the business at a reasonable rate, and he pointed out that such a company could re-insure.

Mr F. J. Jones moved as an amendment, which (with certain alterations subscquentlysuggestedinitbyMrDrew?! iead as follows: — That tbe insurance tariff which has been agreed to by the insurance agents is unreasonably high, and that this meeting requests tbe Insurance Association to reconsider its tariff, prior to insurprs taking further action in the matter. Mr Jones said that he knew that two of the local agents were quite agreed that the premiums charged were too high, and he thought that the. Association should be asked to reconsider its recent decision. Many of tbe officers of the companies were good citizens, and got their living amongst them in Wanganui, and the meeting would not wish to go past them if they were willing to meet it fairly. Mr James Laird seconded the amendment.

Mr Paul withdrew his motion in its favour, and Mr F. J. Jones's proposition was carried unanimously. On the motion of Mr Drew, seconded by Mr Barr, it was resolved, That the Chairman, and Messrs Paul and 81.B 1 . J. Jones be a committee to wait tipon tbe chairman of the associated companies with the foregoing resolution, and to report progress. The usual compliment to his Worship the Mayor for presiding, concluded the meeting. The conmrittee subsequently waited upon Mr F. E. Jackson, chairman of (he associated companies, who promised at once to call a meeting of agents and consider the resolution agreed to by the insurers.