The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-01-24

toin classes of industries Ny
nrotectiOn and other speceo "a
nne1ual laws and under this impetus lllui
viduaI fortunes have grown to such Slsah
| ,;I nronortions thar conservative dhd
lthoughtful men are appalled, at the en-
| Inrginp power of concentrated capltai
Tbourh the Youngest nation with whlcI
commissions may be made our private
denominations are far greater imam any
and the disparity in wealth among oul
nnnnle MS well as the tendencies TO con
centration are rapidly increasing Ia
| this harmful and indefenslble Legislation
there have been added in recent years the
Ionnressiyc and audaciOus operations oil
trusts and conspiracies P"ainst trade and
between them the eXactOns imposed upon
fine great masses of the people, cnricning
n few and tending to unjust division OF
wealth have grown intOlerable. These
trusts are the browning mOnOp0lleS OF
modern times, the highest form of those
economic conspiracies denounced by the
common law of our ancestors and our
present constitution as contrary 10 the
genius of Il free government. They are
| the damaging instruments and forces
reaching for Il mcrciless centrallsm in
commerce corresponding with those dan
gerOus political movements which would
change our form of government into a
consolidated despotism. Their growth
and power are alarming and presages
monopoly and control of every field of
labor and production. Already trusts
have been formed and are operating to
| fix and maintain the price of coal OIL in
surancc, sugar, matches, cotton seed, cot
ton seed oil, gas, cattle, alcohol, school
books. drugs, tobacco and cigarettes,
coal, food and clothing, and many other
lnecessaries and commodities. Their
trade impositiOns and eXtortions are not
the only evils; their open and undisgIlsed
corrupt political practices have justly
aroused popular Indignation. Their OPP
eratiOns are based upon belief in
universal depravity and they would
corruptly approach the seat of any
authority. So dangerous to the public
welfare have these conspiracies become
that congress has enacted effective laws
for their suppression and the Legislature
Of this State sought to accomplish the
same purpose by the act approved March
80 1885. But this law is entirely made
quate and unsatisfactory. 1t does not en-
brace all combinations which should be
defined and prohibited notably those of
insurance companies as Interpreted by
the Supreme Court in Queen Insurance
Company VS.. The State, sc Texas, 20.
The penal provisions are not sufficiently
direct and strong. The law has been held
TO be unconstitutional and void by one of
the Disadvantages because of the pro-
vision in Section IL that it shall not apply
to agricultural products or live stock
while in the hands of the producer or
raiser and, though leaving it undecided,
our highest court declared the question
thus presented a grave one. These de
fectS seriously embarrass executive Otti-
GERS in the performance of duties relating
to these matters, and under the circum-
stances it is obligatory upon the Legisla-
ture to enact a statute defining and pro
hibiting all combinations in trade or bust
ness that are hurtful, mOnOpolistic and in
furious to the public, the validity and
efficiency of which both as to individuals
and corporations may not be contested.
If this course be pursued effective RENE
dies for unquestioned evils may be antici-
pated, Notwithstanding hindranccs in
high places elsewhere. That in the pas
sage of such law difficulties will be met
is not doubted. Opposition to any and
every character of antitrust law will not
be wanting. The convenient scarccrow
that capital will be deferred from entering
the State will be held up. Open and
blunt defenders and apologiSts of
trusts will appear. Less candid
and more insidious advocates of
non interference will resist a
change, insurance companies, because not
embraced in the present law, and mOnopo-
lists are Incorporating as friends of agri-
culture in the hope of judicial declaration of
invaldity by reason of the existing eXemp-
tons of such products from the provi-
sions of the act Nor is it improbable that
the remarkable argument recently advanc-
ed may be made, that these public male
factors shall continue their career UNI
hindered, because out of uncounted com
,nnrCiol rnhhnrinc small nittonpnc are
sometimes given in self serving hypo'
crisy to religion, to education or to charity
But an abiding faith in the patriotism
and courage of the representatives of the
people gives assurance that their duty
will he promptly and resolutely discharged
In framing new statute care should be
observed to bring within its inhibitions
and penalties every character of trade OF
business combination injurious to the pub
lie and monopolstic in tendency, includ
ing combinations of insurance companies
or agents to fix and maintain rates of in
surance or commissions. An insurance
combination was formed in this state III
1891 and its history furnishes ample de
mand for the legislation recommended
The business of fire insurance with us is
done, with the exception of one domestic
company, entirely by corporations organic
cd in other states of the Union and in for
eign countries. In 1891 81 of these com
panies, writing 80 per cent of all insur-
ance, entered into combination to re-
gulate the rates of commission to be paid
their agents and to fix the rates of fire
insurance throughout the State. This reg
ulation was to he effected by an associa-
ton known as the Texas Insurance Club
and an adroit arrangement with n com.
mon rating agent. Appropriate judicial
proceedings were begun and prosecuted
by the State to suppress the trust, but il
was finally determined that combinations
of insurance companies for the purposes
amel were ntt prohibited ether by ouI
statute or the common law. Since this de
cision in December. 1893, the combina
ton has been openly conducted and il
the absence of further legislation the pub
lie will be without protection against it
Although rates were increased by the
methods stated the combination was not
satisfied and consequently, soon after the
decision, a new scheme of increase was
devised, and the rates raised from p to 5C
per cent. This consists of what is termed
! the equitable reinsurance and contribu
ton clause" to be incorporated in all poll
Cies issued by members of the trust, a copy
| of which is as folows
EQUITABLE CO-INSURANCE AMI
CONTRIBUTION CLAUSE"
at is understood and agreed that thi:
company shall be liable only for sucl
proportion of the loss under any division
of this policy as the amount hereby in
sured on said division bears to the tota
value of the property described therein
Provided, that in the event the total in
IN onN- division ~ t,ronarty n