The representative. [volume] (St. Paul, Minn.) 1893-1901, 1898-01-19

were adopted on April g. 1897. One Is a
general prescription against trusts and
conSpiratOrS against trade, and 1t mentions
specifically any combination to prevent
competition in fire insurance rates. The
other act specifically is directed against
the fire insurance companies doing buSi-
ness In the state. prohibiting combinatio
between companies TO control rates. The
penalty prescribed is forfeiture Of charter.
The litigation has provoked some very
lively sensations iE Insurance circles
throughout the west. 1t is conceded that
IL the companies make good their conten-
ton in this case all SIMILAR laws Of the
western states hostile to insurance COM
:'a'les. will be wiz ut free AMI effect.
TIE Nebraska law is moac.l somewhat
after the laws klasss tbs Subjc>. ard
Z t. CT western st tics have copied tir Nam
::: laws almost verbatim. Therefore the
s,.CCcss of the insurance cenian!es:n this
case practically rc,ns that legislation CT
this character IL .;C.:cn states must be
ie3t aleu.
Prior to last April the insurance COM
panies doing business In this state had an
insurance association, with Chris Hart
man. of Omaha. as secretary. His rate
schedule was accepted by all. Out of this
close corporation developed much dissatis-
faction especially in the smaller towns of
the state. II one company withdrew from
a gwen locality all followed. thus leaving
any given section at the mercy of the asso-
citation. This system was much criticised
The farmer element was appealed to and
the Objectionable laws were quickly passed
! by the legislature.
The unwritten history of this law i'm
| plicates the powerful lobby which some
| of the corporations maintained last year
| to defeat h Stile legislation. While the
| farmers We're trying to prepare an insur-
ance measure that would give satisfaction
| to the small towns one of the leading mem
| bers of the lobby, said to be anxious to
! demonstrate that there were immediate
! reasons why the insurance companies
should do something for the lobby hast
| lily prepared the two bills which later be-
! came laws They were said to have been
| introduced originally pure straw men,,
| 20 be killed by the lobby soon as the
| bills had accomplished their purpose. The
! insurance companies either failed to ''see"
! the king Of the lobby the matter had
| gone far when they did undertake to
| stop it that the men in whose charge the
J measures originally were could do nothing
! and the bills became laws. The insurance
| agents of the state assert that they
! fused to be held up by the lobby and that
! the lobby passed the bills in spirit of
Ve1ge. The other side of the story is that
| the farmers in the legislature found the
| bills submitted to exactly fill the demands
| of their constituents and they rushed them
| through before the lobby could take action
| to prevent it.
| AS the measures became laws
| the insurance association was dissolved
| In its place, however, ex-Secretary Hart
| man established a rate bureau. He made
| an individual rate table which he sold to
| the various companies. They were at lib
| erty to disregard the rates suggested
or to adopt them as they pleased. The
| Insurance companies admit that they took
| this course to avoid the ADVERTISEMENTS
| of the new Legislation. They assert that
| they did not employ Hartman, except as
| each individual company desired to pur-
| chase rate book for Information. To all
| intents and purposes. they insist. the asso-
| citation was dissolved.
State authorities insist to the contrary.
| They declare that the association name
| was changed and that the same pan eX-
| actiy remains in force. in direct violation
of the new law. The state authorities We're
| suspected by the insurance companies of
| preparing to begin suit to enforce the
| penalties of the new law. This caused
| the insurance companies to begin the pres
| ent litigation. The state authorities deny
| that they have contemplated action but
| there is no diSputing that it would have
| been a popular move, politically. for the
| penalties to have been applied, and there