agents must fit themselves to give such intelligent and capable service as will meet these conditions. In connection with service he said the amount and form of agents' compensation could properly be considered, and it must be conceded that in the flat or graded commission scale there had been little incentive for the average agent to do more than 'pull down" his commission. The president recommended action on the subject by the association as it could properly commit itself to a principle.

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Following the president's address Mr. Charles E. Sheldon, manager of the western department of the American Insurance Company of Newark, N. J., delivered an address, in which after briefly alluding to his own experience as a local agent, paid tribute to the local agency as an important and indispensable factor in the development of the fire insurance business. He strongly dissented from what seemed the fashion to decry the business morality of the agent, whom he believed would compare favorably with the average business man of the country. The speaker briefly reviewed conditions and tendencies in the business, as well as conditions developed through unfriendly and oppressive legislation, and considering more particularly the indictment against underwriters' agencies, expressed the view that the underwriters' question was not a matter of supreme importance except in that it distracts one from the consideration of the fundamentals of our business and retards the spirit of co-operation." "The evils of large gross lines and foreign reinsurance are sapping the life out of the smaller insurance institutions more than the multiplication of underwriters agencies, equality of agents' commissions, adherence to uniform, if not always adequate, rates, or oneness of practice.' "The blame for the condition was equally on the company and agent, and the remedy was not alone with the agent, nor can the companies unassisted change this practice which is undermining the agency system and fostering unhealthy conditions." Because of the European conflict the present affords a better opportunity to strengthen the small companies than has prevailed in years, but the agents must take the initiative for in large measure they control the situation. In closing the speaker urged the association to cultivate the small town agent and bring him into the association.

Reports from the executive committee, E. C. Roth, chairman; legislative committee, Geo. B. Markham, chairman; grievance committee, J. K. Livingston, chairman, and the organization committee, F. E. Warner, chairman, were presented, reviewing the work of the committees during the year. Reports were also presented from special committees on "Standards of Association Membership,” and “ Return Commissions in Defunct Companies." Papers were read as follows: "Contingent Commissions,' David Rumsay, vice-president Continental Insurance Company, New York; Better Insurance Salesmanship," Frederick V. Bruns, Syracuse, N. Y.; Fire Prevention and Service Department for Agents," Lurton H. Stubbs, Chicago, Ill.; and in the casualty section: The Larger View," John T. Stone, president Maryland Casualty, Baltimore; "The Dignity of Labor

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in the Insurance Business," George D. Webb, Chicago; "State Insurance and Local Agents," Mark T. McKee, Detroit, Mich., secretary National Council Insurance Federation Executives.

Mr. Rumsay in his address on contingent commissions, urged that the question be considered carefully and seriously, and added that while a change in the method of compensating agents to include the profit sharing idea would not solve all the problems of the business it was nevertheless dictated by sound principles. Contingent commissions could be put into force not only without injury to agents, the companies, or the public, but with benefit to those three interests, and the plan was worthy of a general and sustained trial. The sale of fire insurance, he said, cannot be regulated by competition, and must, either by agreement or by law, be controlled by means of co-operation. This has recently been recognized as to rates of premium, and was equally applicable to the subject of payment of agents. The present method of compensating agents was, he said, competitive, not co-operative, and since poor risks demand a high rate and good risks a low rate, the influence of this system so far as it affected the action of the agent, was toward securing the poorer, high rated risks. The existing system of compensating agents which is employed generally throughout this country penalizes the agent for his care of the public interest and the interest of his principal, the insurance company, and it is too much to expect of human nature that insurance agents should devote their lives to a study of comparative fire hazards, or should energetically perform the public service of instructing property owners in the science of eliminating removable fire hazards when, under existing conditions, the more expert and active the agent becomes in these matters, the less money he is able to earn from his business."

On the other hand a profit sharing system would go far towards solving the question of agency limitation, even if it did not prove a complete solution. Methods of computing profit sharing commissions were reviewed, and in closing the speaker said that only by cooperation of all interests involved could a change of such magnitude be brought about, and he urged agents to study the question carefully, in the light of their own agency experience, and considering what it may mean not alone to themselves, but to the companies and the community.

Resolutions were adopted as follows:

Agency Qualifications Laws - We recommend that the committee on legislation continue its cooperation with the state associations to secure the passage of agents' license laws in all the states.

Return Commissions - The executive committee is authorized to raise among American Union agents additional funds for the purpose of prosecuting this question to a conclusion before the proper courts.

Reduced Taxation -- We recommend continued effort by the legislative committee to secure reduced insurance taxation, and again offer to cooperate with other insurance interests in this effort.

Agents' Compensation in Texas - We again record our protest against the continued attitude of the companies in respect to agents' compensation in Texas, and instruct the executive committee to continue its efforts until this unfair discimination is ended.

National Office- The resolution of the Minnesota association referring to the removal of national headquarters to a more central point is referred to the incoming executive committee.

United States Mails and Unauthorized Insurance - We recommend that the thanks of this association be extended to Senator Jones of Washington and the representatives in Congress for their efforts to secure the passage of a bill prohibiting the use of the United States mails to companies operating illegally in the various states, and recommend that when this bill next comes before Congress our members be requested to urge upon their representatives at Washington the support of this measure.

Uniform Blanks In view of the success attending the use of these blanks by individual agents, we recommend that all members of the association now obtain the same from the national office for use with all their companies. We urge the National Board to confer with the committee of our association in arranging any amendment desired by the companies and pledge the support of this association to any form of accounts current which is adopted by the National Board as the result of such conference. Reinsurance and Net Lines We reaffirm our recommendation that companies and agents encourage the movement towards net line writing, and favor wherever possible the discontinuance of the practice of writing large lines far beyond the carrying capacity of a company. The large line reinsured elsewhere removes the business from the local market and deprives other agents and licensed companies of their proper income.

Casualty and Surety Section - We recommend that the by-laws of this association be amended to provide for a standing committee to be known as the " Casualty and Surety Committee," the chairman of which is to be elected at our annual convention. The chairman shall be a member of the executive committee, and with the approval of the president shall select no less than five members to serve for the ensuing year, this committee to have charge, under the supervision of the executive committee, of all matters pertaining to the casualty and surety interests of members. The secretary is instructed to include this amendment in the next printed edition of the constitution and by-laws.

Nonresident Brokers - We recommend a reaffirmation of the association principles favoring the payment of commissions to nonresident brokers on property owned by nonresidents, provided the whole insurance is placed at the rates and rules to which the risk is subject locally. We also reaffirm the ruling that no commission should be paid to nonresident brokers on property owned by residents.

Floater and Schedule Policies - Whereas, It is now clear to local agents of the United States that the time has come for the companies to demonstrate whether they stand wholly with their agents or not, and inasmuch as the action of some companies in writing floater policies covering risks in agents' territory, usually on terms more favorable than the agent is permitted to grant, discrediting the agent of said company, is an injury to the interests of all companies and agents.

Therefore, We recommend that the grievance committee be requested to investigate with care and diligence all reported cases of such floater or schedule policies, other than steam railroad lines, and report through the Bulletin any companies which continue such practice.

Cooperating List - We recommend that the Niagara Fire and Westchester be urged by this convention to give favorable reply to the association's letter of June 27, 1914; but if, within a reasonable time a favorable reply has not been received, the executive committee is directed, with regret, to issue notice to all members and agents to the effect that these companies have been dropped from the cooperating list, giving the reasons for this action.

Underwriters' Agencies

In view of the substantial progress made toward the elimination of underwriters' annexes, we desire especially to record our appreciation of the stand taken by a majority of companies in steadfastly refusing to operate these annexes and to urge upon our members more marked preference in placing their business with these companies.

Secondly, we record our appreciation of the Continental, Fidelity-Phenix, and Sun Fire Office in superseding their underwriters' agencies by duly incorporated and capitalized companies, and feel that we should particularly thank the Continental and Fidelity-Phenix for their leadership in this matter, at the same time expressing the hope that all underwriters' agencies will at an early date take steps toward incorporation.

We call upon agents to continue their efforts for sole agency representation and we pledge the continued support of this organization to local rules for agency limitation.

Cooperation To the end that closer and more harmonious relations may be maintained between companies and agents and that both cause and chance for misunderstanding may be avoided, we tender to the companies, through their various organizations, our cooperation and assistance in carrying forward all proper movements for the general betterment of the business.

Officers and chairmen of standing committees were elected as follows: President, E. C. Roth, Buffalo, N. Y.; vice-presidents, New England States, L. C. Merrill, Concord, N. H.; middle department states, G. T. Amsden, Rochester, N. Y.; southeastern states, Walker Taylor, Wilmington, N. C.; middle southern states, Oscar A. Smith, Memphis, Tenn.; southwestern states, Arthur W. Mills, Pine Bluff, Ark.; middle western states, W. A. Eldridge, Detroit, Mich.; E. H. Forry, Indianapolis; James B. Leedom, Milwaukee; Rocky Mountain and northwestern states, Thomas Baker, Jr., Fargo, N. D.; secretarytreasurer, H. H. Putnam, Boston, Mass.; executive committee, Clarence S. Pellet, Chicago, chairman; grievance committee, John A. Murphy, Buffalo, N. Y., chairman; organization committee, F. E. Warner, Salem, Mass., chairman.; legislative committee, George D. Markham, St. Louis, Mo., chairman; casualty and surety committee, J. K. Livingston, Detroit, Mich., chairman.

NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES. Organized 1895. The membership includes mutual fire and tornado and casualty insurance companies. The present officers, elected at the annual meeting in Minneapolis, Minn., in September, 1915, are: President, L. R. Welch, Fitchburg, Mass.; vicepresidents, C. M. McMillan, Carthage, Ill.; O. M. Thurber, Red Wing, Minn.; C. H. Ridgway, Kansas City, Mo.; secretary, Harry P. Cooper, Crawfordsville, Ind.; treasurer, C. A. McCotter, Indianapolis, Ind.; executive committee W. E. Straub, Lincoln, Neb., and the above officers. G. A. A. Peevey, Boston, Mass., is chairman of the committee on national affairs; L. R. Welch, Fitchburg, Mass., chairman governing committee, department of incorporated mutuals, and C. F. Mingenback, chairman governing committee, department of farm mutuals.

State vice-presidents were elected as follows: California - G. F. Cromer, Los Angeles, Cal.; Colorado - D. C. Royer, Greely, Colo.; Connecticut - W. F. Lester, Norwich, Conn.; District of Columbia L. Pierce Boteler, Washington, D. C.; Georgia, Fred Wessels, Savannah, Ga.; Illinois- White Dawson, Chicago, Ill.; Indiana - E. C. ' Mercer, Rochester, Ind.; Iowa - H. F. Gross, Des Moines, Iowa; Kansas A. J. Shaw, McPherson, Kan.; Kentucky O. E. Hurst, Millersburg, Ky.; Massachusetts Alfred H. Nash, Abington, Mass.; Minnesota O. D. Hauschild, Minneapolis, Minn.; Maryland E. P. Thomas, Sandy Springs, Md.; Michigan-J. M. Willison, Battle Creek, Mich.; Missouri-E. W. Ozenberger, St. Joseph, Mo.; Nebraska — C. L. France, Syracuse, Neb.; New Jersey Charles F. Reeves, Bridgton, N. J.; New York-Frank P. Tucker, Albany, N. Y.; North Carolina - F. W. Dixon, Charlotte, N. C.; North Dakota D. W. Clark, Valley City, N. D.; Ohio S. D. Longshore, Lisbon, Ohio; Oregon W. C. Haggerty, McMinniville, Ore.; Pennsylvania - H. R. Gibbel, Lititz, Pa.; South Carolina - D. E. Boney,

York, S. C.; South Dakota - N. S. Tyler, Sioux Falls, S. D.; Tennessee- -A. A. DeLong, Nashville, Tenn.; Texas Glen Walker, Forth Worth, Tex.; Washington F. J. Martin, Seattle, Wash.; West Virginia - M. L. Connelly, Triadelphia, W. Va.; Wisconsin Jas. E. Bretts, Springfield, Wis.

NATIONAL-BEN FRANKLIN FIRE INSURANCE COMPANY, Pittsburgh, Pa. Organized 1910 (consolidation of National and Ben Franklin Fire Insurance companies); capital, $1,000,000. Samuel McKnight, president; H. M. Schmitt, secretary.

NATIONAL BOARD OF FIRE UNDERWRITERS was organized July 18, 1866, in the city of New York. [For a history of the National Board from its organization and a list of the original members, see the Cyclopedia of Insurance for 1891.]