El Paso daily herald. (El Paso, Tex.) 1881-1901, 1899-07-22
AN interesting case was recently

disposed Oh Oy Tue MisSOuiA ouPi SS
court, involving the construction.of the
antitrust law, which is almost identl-
cal with that of the state OF Texas, and
referring to the application OF that law
and others to insurance companies.
Certain insurance agents had organ
lied q 'sSocial club in ST. Joseph, and
the club was proceeded against by the
attorney general on the allegation that
the club was merely an attempt to
evade the provisions of the antitrust
law, and was in fact formed for the pur-
pose Of agreeing upon rates and other
matters, contrary to the law, and there
by making the companies represented,
to the number of seventy-three, par
ties in the violation. On the first hear
ing of the case by the supreme court
writ of custer was issued, expulsion
from that state being the penalty
provided for such violation
as the companies were convict
ed of. The seventy three
companies included the strongest and
largest companies doing business in
the state, and it was shown by most of
them that they had nothing to do
with the establishment of the club,
and in fact that these agents were ex-
pressly prohibiting from agreeing as
to rates, the courts holding that the
companies were responsible even for
the unauthorized acts of their agents.
The companies claimed thst profit in
the state had been small, and it was
shown in the public discussion that
followed the decision that the people
of the state would probably be the
largest losers by the expulsion OF the
big insurance companies. 1t was said
that there would not be left a compa-
ny with a large enough surplus to in
sure the great risks, factories, depart
ment stores, warehouses, hotels, bust
ness blocks, grain in transit, and
such. The companies absolutely de-
MED that there was anything like a
trust among them in the state. They
maintained a board of underwriters,
but the board did not operate In any
way to restrict competition. AS
one principal agent stated. the
board is maintained to protect the
business, equalize rates, reduce the fire
hazard, uphold correct building laws,
and assist in keeping up the discipline
of the fire department. A salvage corps
is also maintained by the board. and a
complete inspection bureau, which in
spects all buildings, gas and electric
light fittings, automatic fire protective
apparatus, etc., with view to secur-
ing better rates from the companies. 1t
was shown that rates had been reduced
largely. and that the result of driving
all the largest and strongest companies
out of the state would be to restrict
competition and narrow the supply OF
insurance, causing an increase of rates
and decrease of stability. The appli-
cation for a rehearing came up before
the supreme court last week, and the
motion was overruled. Counsel for the
insurance companies Immediately filed
motion for modifca-
ton Eof the judgment by suspen-
sion of the writ of custer
and the punishment of the companies
in some just way that would allow them
to do business in the state. The court
agreed to this and imposed a fine of
one thousand dollars upon each of
seventy three companies, after paying
which the companies may apply for
new license, the one they held being
vacated. The modification meets with
general approval. The case is an in
teresting one, inasmuch as the author
ity which was invoked for the modifi-
cation of the penalty; provided by the
anti trust law was part of the com
mon law, originating as an act of the
British parliament in Queen Anne's
time and coming to Missouri es 8 part