The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-11-23
rs AFTER INSURANCE COMPANIES.
George Anthony Sers Down on Co-opera-
tive Underwriting


Topeka, Kan. Nov 22-George T.
Anthony has secured evidence that
some of t1he insurance companies doing
business in Kansas. have at verio1Is
times, formed a co-partnersnip for the
purpose Of conducting the business OF
underwriters IN violation Of the sts te
law. The superintendent Is determin
ed to put an end TO this unlawful prac-
tice. In the first case he took up Mr..
Anthony was successful IN reaching the
bortom Of tghe matter and he immedi
atefy ordered the representative of the
companies TO stop underwriting.
The letter below was issued from the
department by Mr.. Anthony and is self
explanatory. tt is addressed to the Of
ficers Of the fire association Of Philadel-
phfa which have been doing business
through The union with tire insurance
companies Of North America under the
name OF the Philadelphia Underwriters
associa iron.
at has existed in runror since my in
cunibency OF this Office that your COM
pany rad formed an underwriting CO.
partnership with the Insurance Compa-
ny Of North Amerf-a. under the name
and title Of the Philadelphia Underwrit-
ers'. and that Insurance contracts were
being made IN this state by that inter
mediate crga nizabion or gency, joining
your OWE and your associate company
in mutual respOn sibilfty under special
form or policy issued under tf'e pretend
ed authority Of the said Philadelphia
UNDERWRITERS association.
II am only now in possession Of evf-
dence establishing the truth of the ru-
NOR. IT is in the form of a policy of
this character the term OF which has
but lately expired. 1t shows conclu-
sively THAT you are a party TO such com
pact and SITS practice in this state
ut now becomes my duty TO take off,
cial notice Of It, and 70 advise YOU. and
the Insurance Company OF North Amer
lea, that You must abandon tl1is CO.
partnership business at once, and each
company limit Itself hereafter TO that
of separate corporate entities. each Is
suing policies in fts own name. and upon
its own Individual responsibility.
Your union with another company
under the name YOU have adopted. or
any other alias. is deemed and held by
this department as an unlawful organi
ration, whether IL be in the form Of a
corporation under the laws Of your
state or existing under co-partnersfip
contract between the interested COM
panies. For insurance corporal tons to
actet1npt such merging Of management
and blending OF responsibility IS alike
defiance of law and repugnant 10 rea-
soma veritable business menstrosity,
involving injustice and peril TO all par
ties concerned.
Like associa tons iTave asked, and
been refused admission to the state.
and when appealed to for reason jus
tifying their existence. / have been told
that whilst valuable in the reduction Of
agents and expenses, and in the pres
tge and advantage over competitors in
the securing Of business, its paramount
purpose and value was 10 be found IN
Its enabling the associated companies
10 increase their lines of insurance: the
plan being this: Each company would.
by stipulation and agreement, write 70
the fun limit on a given property. and
Elen tlse united companies through their
underwriting alias. would write a sum
equal to one OF the separate policies.
thereby increasing the hne on any given
ciass OF RISKS SIS 1-3 per cent beyond the
safe. conservative limit Of their compa-
MES separately, and Of all other pru-
dent companies.
IN other words. Il enabled the COM
hned companies 20 insure risk jointly
that neScher would take separately. and
Thereby control a much larger client
age than they otherwise would do. With
put awakening suspicion and impair
Ing their standing with the public.
''BSst these reasons. like all others
that could be added. have no validity
against The objections they must them
selves suggest and confirm 10 every in
zefligent, disirtereseed mind.
Now, ler US consider how II affects
your relations 10 this department and
the state. You are required 20 report
The exact aggregate OF outstanding Ia
oilities on account OF your policy con-
tracts. as also your receipts for premi-