The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-28

general contends that no insurance conn
pany while member OF a trust or cum
hnation 10 Tx rates In any portion OF the
world can 40 business without becoming
huhle TO A pensltv under our statute Tao
utiendanl ON the other hand denies that
the language ct the statute in question
carries the meaning commended for by the
attorney general, and the question before
us has no reference TO the powers OF the
legislature Tor thar Is conceded. hut To the
prupeF construction Of and meaning OF
the statute. The statute IN question, 50
tar as Il affects tails case. nroydes that
any corporation organized Under the law
OF this state OF any other State or country
and transacting or conducting any kiad of
business in this state. or any partnership
or individual, who shah enter into or be-
come party to any pool, agreement, con
tract, combustion, association or conrvd-
Grafton to FIX or limit the price and pro,
mum TO be paid FOR insuring properly
against loss or damage by fire. shall no
deemed and adiudgod guilty of cou-
spiracy TO deftaud and be subject To the
penalties provided by this act. Another
section provides that any person or corr
poration violating any provision OF the
act shall forfeit not less than $780, nor
more than $4,000 for every such onenss
and each day such corporation shall can
tinue to do SO shall be q separate offensc,
The court then reviews the arguments,
otes numerous precedents and continues,
The defendant company is an Engnsn
corporation engaged In the business OF fire
insurance. II may and probably does car
~ on such business, not only In America,
but also In Europe and Asia. Now, under
the construction which the counsel for the
state seeks "a have placed on this statue
II this English company. while doing buSi-
ness here should Mt its offices in England,
enter into an agreement with other for
egn companies for the purpose OF fixing
rates for nre insurance in Hong Kong or
in the city of Canton China. IL would ut
once become liable to q penalty under our
statute. For counsel for the State con
tends that the words ANY pool or com
binatlon' used in the statute embraced
such combination In any portion OF the
world. This we admit is the logical re-
suit of their construction of the law There
IS no middle ground. Either the act APP
plies only 10 combinations affecting per-
sons property or prices in this state, or
Its seope Is unlimited. TX this be the mean
ing OF the statute. then II the attorney
general was informed that q company doing
business here had entered into com
bination In japan or South Africa fixing
ratea OF fire insurance in those countries
dc would be required to institute an in
curry and perhaps to take proof 1t is
easy TO see that under such law litigation
might take wide range, for the field of
evidence would be as wide as the habitahle
globe, Investigation of that kind would
be expensive The time OF the attorney
general and the courts OF the State would
often be consumed by controversies con-
corning trusts and combinations in diff
ferent parts Of the world having a refer
ence TO or effect upon the people Of this
state. II tho legislature intended the
statute TO have such broad scope II
should have expressly said so ia plain
words 1t is so unusual for a Legislature
to intend that Its acts shall have such
world wide effect that courts are never
justified in putting such construction upon
them IL their language admits OF any
other reasonable Interpretation.
Following up this argument, the court
holds that such & construction might re-
suit IN defeating the main purpose IN
passing the act, that OF encouraging com
petition. and concluded as follows "our
conclusion Is that the statute does NOT
apply 10 pools or combinations formed
outside of this State and not intended TO
affect or which do not affect property or
prices OF insurance in this State In other
words, we are Of the opinion that the Leg
islature by this statute did not intend to
prohibit or punish acts done or agree
ments made IN foreign countries by cor
porations doing business hero when such
acts or amendments have reference to
| persons, property or prices in such for
! eign countries We therefore hold that
/ the answer set no a vilad defense and
| that the demurrer thereto was properly
oyerrulcd, Entertaining no doubt Of the
correctness Of the circuit court, the same
| l. affirmed"