The Indianapolis journal., 1886-04-12
LETTERS FROM THE PEOPLE.
Insurance Combinations Trying TO Misin
terpres the Laws of Indiana.


terpret the Laws of Indiana.
70 the Editor of the indianapolis Jonrnal.
Knowing that you desire fair play in all classes
Of business and business relations, the writer de-
sires to call your attention to the law regulating
foreign insurance companies doing business in
Indiana, which reads as follows
BE It enacted by the General Assembly of the State
of Indiana that il shall not be lawful for any agent
agents of any insurance company incorporated by
other State than the State of Indiana directly or IN
directly to take risks transact any business OF IN
snrance in this State without first producing eertin-
cate of authority from the Auditor OF State ana De-
fore obtaining such certificate sucn agent OF agents
shall furnish the said Auditor with statemeA. under
oath OF the president secretary OF the Tor
which he or they may act ETC.
''The Western Union Is a comb ion Of
about seventy-fve of the largest fire Ia urance
companies in the United States. Englari, Ger
many and Canada, of several years standing,
formed by their general agents located at Chi
cago, Cincinnati, Louisville and ST. Louis. This
combination has grown to such strength that
they have formed what is known as the compact
system, in which they send stranger to each
city throughout the Northwest to act as their
manager, and compel each local agent in those
cities TO sign the compact giving the said man
ager entire control of fixing rates, forms OF pol
icies, ssxamne their books, reports and remit
tances and otherwise act as spy for the COM
panies. If any agent declines to consent to this
heel upon his neck he is Immediately discharged
by ali the companies ne represents which be-
long to the com mbination, many times thus losing
the labors of years In building mp his business.
This combination not being satisfied with the
results of their manager at Indianapolis have in
augurated system of prosecution through their
Interpretation of our State laws, and have Sc
leeted each agent in our city who declines to
JOIN their compact not only, but, what is almost
Infamous have also selected out the wholesale
and retail merchants and manufacturers Of our
city who decline to patronize the "Union" or
compact agents, and have had nearly all Of them
suppGnaed before the grand jury and compelled
them to bring all the policies of insurance which
they hold on their property, in order to discover
Sas they claim) whether they have placed any
Of their insurance in companies that have not
complied with the laws of the State the real
object being to try and humlllate these mer-
chants and manufacturers and drive them into
insuring with compact agents. and If possible to
convict some agents member of the COM
pact, ot transacting business as agent of COM
pany in New York, Philadelphia, Pittsburg,
Cincinnati st. Louis or New Orleans which
has not complied with our laws, and thus humil
late them and damage their good name. Of
course they cannot accomplish the latter, for the
reason that there is only one instance IN the
State where an individual has tried TO represent
q company as agent which had not complied
with the law, and he was promptly convicted so
soon as our prosecuting attorneys attention was
called TO the fact. Now these men have shielded
themselves behind an irresponsible attorney,
who is Judgment proof, and this attorney also
tries TO shield himself in the petticoats of the
grand jury, as jeff Davis tried to hide his face
from his outraged countrymen twenty zone years
ago. 1t remains to be seen whether the good
names of our leading business men, who have
built our churches and school-houses, and our
city in general shall have their reputation be-
smeared with rotten eggs thrown by an IRE
eponsible attorney while hiding behind tree.
When it comes to such pass that the bust
ness men of our community cannot send to
other cihes in these United States OF America
and purchase insurance on their property. be-
cause compelled to do so on accout of a combi-
nation of companies fixing their rates of
premium. so high that they cannot afford to pay
it, without being hauled before the grand jury
as criminals, and when it comes to pass that
many of our best citizens are engaged in manu-
featuring interests, like unto frame Touring
mills. woolen mills. fax mills bagging factories.
ice-houses and contents, frame stores in country
towns and other frame and brics establishments
throughout the State that every company
which has complied with the laws OF Indiana
has on its prohibited list, that under the in
fluekee of combination the State law Is to be
construed as prohibiting these citizens of lndi
ana from seeking protection at all in outside
companies at the hazard of having their good
name attacked which is more precious to them
than life itself, then think we had better call
halt and consider this law, and interpret its
true purpose which has always been understood
by it's founders and makers and the business
public to mean that no company could establish
an agency within the borders of our State with
out first complying with the terms of our laws,
fling their statement. appointing an attorney,
etc. Mr.. Editor, appeal to the people
who make and control the laws whether this law
has ever been interpreted in any other way.
Will the business men Of Indianapolis maintain
their rights and their liberty to transact their
business lawfully to suit themselves, in honor
prefering one another, as citizens of our great
commonwealth? l think they will.
A BUSINESS MAN.