The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-11-18
STOPS THE SHUTTLE
GEN. DOUGLAS TAKES A HAND
IN AN INSURANCE.
SHAKE-UP
BREAKS THE ANTITRUST LAW

An Opinion Adverse to the Action
of the Western Union Fire Assoc
citation, Which Sought to Split
Out the Union From the Nom
Union Companies Commissioners
O'Shaugnessy to Call a Halt.
The Western Union Association of Fire
Insurance Companies has run against
snag in Minnesota The Western Union
is the organization governing all the So
called board companies doing business in
the West. At a meeting in September
the Western Union decided to try and
split out the union from the non-union
companies, wherever there was an agent
who happened to have one or more COM
panies of either kind. The chief differ
enoe between the union and non-union
companies has been that the union COM
panies paid a fiat rate of Is per cent, or
were supposed to pay that, while the
non-union companies paid whatever they
chose, being bound by no rate in the
matter.
AS an inducement to bring about tho
decided to allow it's companies to pay
their agents a graded scale of commits
sions of Is, 20 and 25 per cent instead
of the uniform rate of Is per cent here
tofore paid. AS condition Of paying
these advanced commissions the union de-
manded of its agents that they would re-
sign all non-union agencies. This change
was to be put into effect Oct. 1, or as
soon after as convenient, and number
of changes have been made along that
line.
It seems that the general agent of
certain insurance company, which is
non-union company, that is, pays any
commissions that it chooses, and which
has a number of agencies throughout the
state, has, as a result of the unions
action, received the designations of
number of these agents. He called the
attention of the insurance commissioner
to the action of the Western Union and
the commissioner asked Attorney Gen'
eral Douglas for ruling on the question
whether this was violation OF the anu
trust law or not. Gen. Douglas IN d
lengthy opinion, filed yesterday, holds
that such is the case. In concluSloh' lhe
attorney general says:
The bare offer Of an added commission
by any company to one or 1tS agents
upon conditions peculiar to the views OF
its managing officers probably cannot IN
itself be subject of objection, but In my
opinion action by any company, a mem
Der of this union. pursuant 10 tne CON-
pact entered into by the many ana mere;
tofore expressed in the resolution re1efreQ
to- the practical operation of which must
he TO either force non-uniOn companies
to do an illegal act or else require tne!n
to surrender a large percentage OF thelF
business in this state, and thereby -De-
crease the wholesome competition exist
ing in insurance matters, is outside the
original powers of such company. ANY
systematic attempt to suppress compeC-
ton along commercial lines mas, IN many
states, been held to be unlawful as
common law proposition. without regard
to express statutes, but that question, SO
been submitted to the court or last re-
sort in Minnesota. 9nE
Further replying to your inquiry, IN
nv opinion, you are authorized TO re-
oliire such companies to Withdraw the
circular letter referred to, or eliminate
therefrom that feature increasing the
CONDENSATION of their agents only upon
condition that such agents shall surren-.
der the business zof the. non@unlOn IRE
insurance companies, and cease nereaI-
ter to represent them.
Insurance Commissioner O'Shaughnes-
sy said, after he had received the opinion,
that he could not write to the western
Union and ask them to edit their resolu-
ton on the subject, but If the last three
lines had been omitted there would have
been no strong ground for complaint.
AS If Is he will write to the Western
Union and request that Minnesota be
exempted from the operation OF the new
rrIe y-stF