The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-26
A SUBSTANTIAL
VICTORY GAINED.
THE CONTINENTAL INSURANCE
COMPANY WINS TWO I'M
PORTANT POINTS.
BOYCOTTING IS NOT LEGAL
AN IMPORTANT DECISION THAT
DOES NOT PLEASE THE
UNDERWRITERS

CONSERVATION reigns in the ranks of the
insurance combine. An apparent victory
in the United States Circuit Court turns
out to be virtual defeat, and the mem
bers of the Board of Underwriters and the
management of the Firemen's Fund In
surance Company are wondering what the
end will be. So serious did the members
of the combine consider Judge McKenna' s
decision that consultation was called late
yesterday afternoon, and almost unani-
nous decision was arrived to employ the
law firm of CARRIER, Boalt & Bishop to de-
fend the next suit which the Continental
Insurance Company will bring against the
Board of Underwriters.
This suit which Judge McKenna decided
yesterday was filed a month ago. 1t is,
per haps, the most interesting case to in
surance men and the public that has ever
been tried in court of Justice Narrowed
down it meant simply this: Can combi-
nation of insurance companies resort to a
boycott to maintain rates?
The Continental Insurance Company
would not join the com bination called the
Board of Underwriters of the Pacific Coast,
and in consequence the whole strength of
that organization was brought against it.
An advertisement was put in the San Jose
''Have you q policy in the Continental
Insurance Company? If you have, bring
it to us and we will renew it at any rate
necessary to get the business" 1t was
further proved by J. E. Duncan S affidavit
that the compact's agents went to prop
erty-owners in Salt Lake City and said in
so many words: "Have you policy in the
Continental Insurance Company? If you
have cancel it, or we will not carry any of
your insurance" These were the princi-
pal things complained of by the Cont
mental Insurance Company, but it also
asked that the defendants be restrained
from interfering with its agents in regard
to the non-intercourse rule.
On this showing the plaintiff tied up the
defendant companies completely for a
month. Naturally in preliminary COM
plaint in equity much is asked for that
may be granted temporarily but which
would be set aside on a deliberate exam
ination of the meager testimony submitted
during the preliminary hearing. However,
during the trial of the suit for damages
which will be begun in few days, sworn
testimony from Montana. Utah, Washing
ton, Oregon, Arizona, Nevada and other
points touching on facts which were only
given during the last trial upon informa-
ton and belief will be introduced and the
Continental Insurance Company conf
IDENTIFY expects verdict on all points.
The practice in the Federal courts is to
first of all grant a restraining order then
an injunction which holds good during the
trial, and finally an absolute injunction or
the setting aside of the preliminary in
junction. In the case of the Continental
Insurance Company VS.. the Board of I'm
derwriters of the Pacific Coast the iniunc-
ton against the acts of the combine done
in San Jose and Salt Lake or any similar
acts in any city and county on the Pacific
Coast was made absolute, while the in
junction against the non-intercourse rule
was set aside.
From this it will be seen that the court
grants much but not all, At this stage of
the game, however, it was all that could
be consistently allowed for lack of evidence.
The controversy was limited and prelim-
mary to the trial now coming on, but lust
the same the Continental Insurance Com
pany has gained the point it was fighting
for, and Will now push the matter with re-
newed energy.
Leaving aside the legal phraseology Judge
McKenna's order is to the effect that the
agents OF the board companies must not
advertise that they will cancel Continental
Company policies and reinsure the prop
erty involved at any rate in companies in
the combine. Neither is the compact to
be allowed, through its agents. to 60 to the
property owners and threaten them with
tho statement that they must cancel their
policies in the Continental or be debarred
from any insurance in board companies.
In other words, Judge McKenna reaf-
firms the doctrine that boycotting is lille
gal, and as his remarks on this point apply
to every town on the coast as well as San
Jose and Salt Lake, those specially men
toned, it will be seen that on this impor-
tant point the decision gives substantial
victory to the Continental and other nom
board companies.