Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1896-01-23
TIE AUDUBON REPUBLICAN.
BY J. E. GRIFFITH.
THE INSURANCE ALLIANCE.

A long looked for measure was intro
duced in the senate yesterday by Sena,
tor Blanchard of Mahaska;i it was a bill
to prevent combinations between fire
insurance companies and providing
penalties. The bill mentions 10 other
line of insurance save fire companies
Senator Blanchard said he did not
know whether the bill he had intro.
duced would cover the question exact.
ly or not, but that he thought it would
do for beginning, aud if it was found
to be faulty it could easily be amended
He had no hesitation in saying that it
was an oulgrowth of the combine
among fire insurance companies known
as the Iowa Alliance. The bill is us
follows:
A bill for an act to prevenC combinations be-
tween fire insurance companies and prov iding
penalties therefore: Section /. Amy combination
or agreement made or entered into by or be-
tween two or more fire insurance companies
transacting business within this state, or be
tween the officers, agents or employees OF any
such companies, relating to the rates to he
charged for insurance, the amount of commits
sionS to be allowed agents for procuring nSur-
ance, or in the manner OF transacting the bust
ness of fire insurance within this state Is hereby
declared to be unlawful, and any such company,
officer or agent violating this provision shall be
guilty of a misdomeanOr and on conviction
thereof in any court having jurisdiction shall
pay a penalty OF not less than 800 nor more
than $500 for each OffenSe, to be recovered for
the use of the permanent school fund IN the
name of the state.
Sec. 2. The auditor of the state is hereby au-
tnOflZeu TO summons and bring before him for
examination, under oath, any officer or employe
OF any 1re insurance company tranSacting bust
ness within this state, suspected of violating any
OF the provisions of this act and on complaint
in writing made to him by any citizen of this
state charging any such company with violating
the provisions of this act, said auditor shall
summons and cause to be brought before him
for examination under oath any officer or EN-
ploye OF said company; and II, upon such exam
ination, and the examination of any other wit
ness or witnesses that may be produced or eX-
amlned, the auditor shall determine that such
company Is guilty OF a violation of any of the
provisions OF this act, he shall fOrwith issue an
order revoklng the authority of such company
to transact business within this state, and such
company shall not thereafter be permitted to
transact the business OF fire insurance in this
state at any time within one year from the time
OF such revocation.
Sec g. Either. party may appeal from any de,
clslon OF the auditor made in pursuance Of this
act TO the District Court of the county wherein
such decision was made, within twenty days OF
the time of the rendition of such decision, by
serving written notice Of such appeal on the
opposite party and on the auditor of state and
filing with the clerk of said court good and
Sufflclent bond for the payment of all costs made
on appeal in case the decision shall be affirmed
On such appeal the District Court shall try the
the case de novO on such evidence as may be
produced by either party and shall make such
decision or order as the facts found will justify
The raising of fire insurance rates all
over the state last year caused much
o6uprcn nritinicnr Tn
Judge Blanchard's home; in DUBUQUE
and many other places, the dssatisfac.
ton almost resulted in open war on
the Alliance. The Alliance is composed
of all stock companies Going fire insur
ance bushes in Iowa, that is, tits COM
posed of home companies and those
from outside of the state doing bust
ness here. David Beveridge was ap-
pointed inspector to have charge OF re
rating the state. Every town in the
state of more than 1000 population has
been re.rated; in some instances the
rate has been lowered, but in most
cases it has been raised The measure
introduced by Senator Blanchard will
undoubtedly create one of the warmest
debates of anything to come before
the general assembly this session. 1t
has been introduced early with the
view of getting it before the members
at as early All opportunity as possible.
Upon the disposition of this bill rests
the policy of the present legislature
toward insurance measures in general
If it is passed the old line life and fire
companies will have little to hope for.
1t is to be hoped that the bill or some
other equally as strong will be enacted
by the legislature. The insurance Gin
spector" makes rates, which appear to
any one but an insurance stock holder
to be out of all proposition to the risk
or to anything else save the combines
desire for profit.
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