El Paso daily herald. (El Paso, Tex.) 1881-1901, 1899-04-19
INSURANCE
NECESSARY
Barring Companies From the
State By Law Absurd.
INDUSTRY PARALYZED

y
INDUSTRY PARALYZED
In Arkansas, Where the Attorney Gen.
eral Has Succeeded In Driving Out
ALI Insurance Companies And 1t Is
Impossible To Obtain Loans, Buy
on Credit, Or Insure Ones House.
About thirty-fve people met last
night at the court house to discuss the
proposed antitrust law. Col. Bob
| Campbell WIS elected chairman and
Horace B. Stevens secretary of the
meeting.
Mr.. Coles was asked by the chair
man to explain the purpose of the
meeting. He stated that the new law,
while it was supposed to be directed
only against the com binations known
as trusts, would really have several
effects that would react on every bust
ness man and property owner in the
state. In the first place, the immedi-
ate effect would be to drive out of the
state every insurance company
now doing business in the state. Even
If locel companies were then formed to
do the necessary insurance business
the rates would be far higher tnan
they are now, as 10 small Company
| could do a safe business at any thing
like the rate now charged by the old
and strong companies.
Mr.. Coles believed that if the law
should go into effect with toe clause
virtually making it impossible tn OBJ
tain Insurance, mortgages would be
Cancelled by the Wholesale, and re-
newsi would be impossib except at
the most eXorbitant rates. 1t would
be almost lmpossi bic to get q loan on
real estate or merchandise, for n man
will end money unless the security Is
covered by &C eQuate insurance. There
were many other aspects in which the
bill was highly Objectionable and
detrimental to the best interests of the
state of Texas. The passage of the bill
would set the state back for years in
Industrial development.
A. M. Loomis said that besides driv-
ing the insurance companies out OF the
state the passage of the law would
thereby impair credit, not only in the
matter of securing loans but in buying
merchandise on credit. The whole
salers and lobbers will not carry the
retailers unless the latter are insured.
1t would be impossible to do business
in the credit system as now it the law
were enforced even in part. The effect
on Arkansas under the same identical
law had been to paralyze all business.
The insurance companies there have
cancelled all contracts and no insurance
in reliable companies can now be OBJ
tanned in the state.
Mr.. Loomis believed that if the aft
davit clause was so amended as to en-
able the companies to conduct their
business as they pleased IN other states
so long as they did not combine to
maintain certain rates in this state, the
companies would submit. He believed
in protecting our own citizens from
trusts of whatever sort, but this law. in
attempting to legislste for every other
state in the union, was too sweeping.
Mr.. LOOMS moved that committee
of three be appointed to draft resolu-
tions asking for the amendment of the
affidavit clause as referring to in
surance companies, so as to limit their
statement to this state only. In other
words, they might do as they pleased
in New Jersey but they must abide by
the law here. Mr.. Julian seconded the
motion and the chair appointed Messrs.
Loomis, Wood, and Coles. 1t was
further agreed that the resolutions be
forwarded by the committee to Austin.
ANARCHY IN ARKANSAS
Mr.. Coles then introduced Judge
Word, formerly an Arkansas legisla-
tor, but now resident of Ell PasO.
Mr.. Word said in substance: "This
law is word for word like the
law recently passed in Arkansas. The
general of the United States
gave it rs his opinion that the trust
problem was not to be controlled by
national legislation, but that the separ- |
ate states must solve it for themselves. |
several of the states have |
instituted vigorous war against the |
industrial combinations.
SIN Arkansas but little attention was
paid to the bill until it had been passed |
and spread upon the statute books. AS
soon as it was passed there as a great |
protest. The first and most pressing |
problem was that of insurance, and |
the state attorney general was i'm
mediately asked If under the law an in
surance company which maintained a
scale in New Jersey would be barred
from doing business in Arkansas, even
though in that state the company
should comply strictly withthe state
law. The answer was, Yes.
1.-THE attorney general Immediately
brought suit against every insurance
company doing business in the state.
The suits amounted to many hundreds
OF thousands of dollars, and there are
more of them than can ever be reach
ed. The attorney general under the
law gets one fourth of the proceeds of
these suits, hence his zeal.
''He refused absolutely to allow test
suits to be brought to trial. He said
be would keep on filing suits for the
accrued penalties under the law.
THE result of this warfare was that
every company doing business in the
state Cancelled its policies, .closed it's