Kansas City journal., 1898-03-08
HOTTER BATTLE PROMISED THAN
WHEN "GREEk MEETS GREEK
CAR M'NALL AFTER CAR REED
SAYS HE RUNS AN ILLEGAL INsUR.
ANCE ASSOCIATION.
Object Is to Prevent Rebates and Nc.
Nall Declares Reed Gets $1,000 n
Year Out of It-McNall Con-
fdent of an Easy
Victory.

Tcpeka Kas., March 1.-(Special) A bat
tie royal between the two acknowledged
Gears" of this country is threatened: in
fact, II seems to be inevitable. The out
come will be watched with as much interest
as the threatened war between the United
States and Spain. Both Gears" have been
successful in their many conquests, and
having vanquished everything they have
gone after. nothing remains now but for
them 10 go at each other. 1t will be a war
of determination.
The two GEARS" referred to. as everybody
knows are Webb McNall. .'czar" of the
insurance world. and Thomas B. Reed,
''czar' of congress. "Czar" McNall pro-
poses to pull the tail feathers out of the
title of Gear" Reed and arrange affairs
SO there will be but one sure enough car
in this country, and that one to be McNall.
The fight will open one day this week,
probably Wednesday.
McNall thinks he has discovered an anti
rebate association, organized and main
tained by the various life insurance COM
panies. Thomas Bracket Reed is said to
be the head of the association; that is. he
is the Judge advocate general" 1t is he
who arbitrates all the differences and en-
forces all penalties. This anti-rebate asso-
citation is formed, so McNall claims. to
stife competition in the life insurance busi-
nies are members of Ii.
In writing insurance, local agents, as
rule, get about 60 per cent of the amount
of the first premium as their commission.
AS an inducement to secure victims, some
OF the agents. in years past, have offered
to divide their commission with the insured.
Although this brought down the prices of
insurance to the insured, the practice was
regarded as counter to sound business prin-
ciples by the insurance companies, So 1t Is
alleged, they formed an anti-rebate associa-
tion to stop 1t. Thomas B. Reed. of Maine,
according to McNall, was appointed judge
advocate general at a salary of $2,OO0
year. His duty was to pass sentence on
all agents convicted of giving rebates. The
minimum sentence is fine Of 500. while
the maximum is the loss of position.
McNall says he dropped on to the fact
of the existence of the association accident
ally few days ago. and now he is gath
ering up information for use in his threat
cned battle. He expects to get list, in
fact il has been promised to him, of the
companies which belong to the association,
and as soon as he gets it this week he
will notify each that 1t must either with
draw from the association or forego the
pleasure of doing business in Kansas. He
SAYS he will revoke the license of every
company which refuses to withdraw from
the association.
1T is nothing more than an insurance
trust" said he. to-day. 1T STILES COM
petition and enables the companies to main
tain exorbitant insurance rates. The COM
panies must either give it up or quit Kan
sas."
Don't you expect a skirmish with Car
Reed over the matter?" was asked.
"Oh, yes he replied. but it won't last
long. Reed may be czar of congress. but
he is not czar of the insurance world. You
know they give me that, title. and pro-
pose to defend 1t. II the other state super
intendents will follow my lead in the mat
ter, Car Reed will lose that 5000 a year
salary as high mogul of that illegal asso-
ciation."
How many companies are members Of
the association"
Il can't tell yet. guess most of the big
Eastern ones are; especially those in Hart
ford. But / will know in a day or so. 1
have been promised all the information
about the concern, and it will be in my
Office some time this week. Then l will
serve notice on the companies which are
members, and if they insist on maintain
ing friendly relations with the association
/ shall revoke their licenses"