The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-12

began Mr.. Delmas 1.-THE order of the
court granting this injunction is only
preliminary one and the burden of
proof is on the other side to show
that such order is too broad and sweeping
in its effect and should be discontinued
Ii it can be shown that the defendants are
guilty, then they must stand the incon-
venience attendant upon a trial of the
case. Until such action is taken the pro-
lection given by this court in its prelim-
mary restraining order should not be taken
away.
Certain facts stand ont prominently be-
fore the eyes Of the court in this matter
First, as to the formation and scope of the
Board of Underwriters. Disguise it as you
will, gloss it over and call it by what name
you please, the fact remains that its I'M
doubted purpose is TO obtain a monopoly
Of the fire insurance business OF this coast
and to fix rate of premium regardless of
the public interests involved. Its object is
to drive out all competitors, This its
mem bers are scheming to do by means of
com binations, bylaws, circulars and other
| coerciye meas ures. Placing this argument
on broad base we can then assert that
this organization is a conspiracy against
public policy, and [ doubt not but what
it is amenable to the penal laws OF the
State"
Mr.. Delmas then proceeded to quote
authorities III support of his contention.
| Cases where combinations had been formed
| to keep up the price OF coal, lumber, grain
bags and other articles were read and COM
mented upon. The one principally relied
upon, however, was that of the Queen In
surance Company VS.. The Texas Insur-
ance Club. In this instance the club was
formed to keep the premiums paid on in
surance, and, like the Continental, the
Queen Insurance Company was boycotted.
The Court of Appeals in Texas held that
such a combination was against public
policy and in restraint of trade. 81 hope |
have established the fact, continued Del
mas, that a combination of this sort is
against the policy of the State, if not anne
| nable to the penal laws.
"a boycott is somewhat similar COM
bination. By means of persuasion or in
timidation it seeks to exclude a person
from business relations with his fellows.
Such persuasion and intimidation have
been brought to bear in this case and have
we not also a similar com bination2 Is not
| the object of the Board of Underwriters
the raising and keeping up of the fire rates,
and have not the salient facts sufficiently
proven that an Injunction is necessary?
In this instance the court will not stop at
words and phrases in forming its iudg-
ment."
Mr.. Delmas then took up the authorities
quoted by Attorney Page and after care
Jul analysis pointed out that many of them
referred to business transactions and were
not combinations, boycotts or conspira-
cies. "For instance" said he. "John Doe
spends the summer months at the Del
Monte Hotel and makes his home at the
Palace during the winter, paying for the
accommodation So a day. Surprising the
manager of the Palace goes to him and
says, Mr.. Doe, If you can arrange it so as
80 oil !,
can see my way toward making a reduc-
ton OF fifty cents day in your BILL That
is business transaction and is not against
public policy. The Del Monte win of
course lose customer, but it has no
remedy in law"
In conclusion Delmas asked that the
Board of Fire Underwriters and the Fire
mems Fund Insurance Company be per-
manently restrained from intimidating
the agents OF the Continental Insurance
Company and that the issuance of circu-
lars and passing of obnoxious bylaws be
prohibited.
Can your Honor imagine" said he.
''that these defendants had any other
object than to cripple the Continental In
surance Company? They were injuring it
in two ways They would say to one man:
If you insure part of your property in the
Continental Insurance Company YOU can't
do business with us, and if part of your in
surance is placed with one of the members
of the board you cannot place any other
part of il with a non-intercourse com
pany.' These fifty companies which form
the combination have their agents out all
over the country and their instructions
are, Get business away from the Cont
mental Insurance Company at any cost
In such a case | think the Continental In
surance Company is entitled to protec-
ton.
Just before Delmas began his argument
Attorney Page apologized to the court and
to w. S. Duyal, general manager of the
Continental Insurance Company, for GER
tain mplimentary remarks he had
made in a previous session. He had used