The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-07-28
IT IS A TRUST.
AtchisOn Underwriters Fall I'm
der Ban Of the State.

w. " Church, superintendent of the
Kansas insurance department, viii soon
proceed against the Atchison Under
writer's association, composed of local
insurance men in that city.
|. The attorney general holds that the
association is maintained in violation
of the Kansas antitrust law.
The organization, as expressed in the
articles of agreement was formed for
the purpose of promoting harmony and
to correct practices in the insurance
business. The agreement also specifies
that all agents in writing insurance
must report to the association under
oath a list Of the rates which he charges
upon risks of every kind and nature
within the territory of the association
The members are also required to fur
nish the maximum term for which the
risk is written and the minimum charges
placed upon it. The members were re-
quired to report the details of their
business upon written blanks furnished
by the secretary. Another article pro-
vides that the proceedings of the meet
ings shall be secret and shall not be
divulged to other persons than mem
bers of the association.
Discussing this list" B. H Tracy,
assistant attorney general, says in his
opinion written to Mr. Church today;
Each member of this association is
required to exhibit a list. No pledge
is exacted of him that he will not
change the rates or charges set forth
in his list, but if such change of rates
or changes is made by him. he is obliged
to make a report thereof, under oath.
All this may be necessary in order to
keep the members mutually advised
and informed as to what each is doing
but it appears to me that the real OBJ
ject of this rule is to establish uniform
rates and charges and to prevent MEM
bers from deviating therefrom.
"A member having furnished his list
is prevented, or at least, is in some
measure restrained from changing the
rates and charges thereof, under penal
ty of being obliged to report under oath
to the association. Under such condi-
lions no changes are likely to be made.
Uniform rates are esta blished and ad-
hered to and the freedom and benefit of
competition are destroyed It is diff
ficult to see how the insuring public
can derive any benefit on this state of
affairs.
"A trust under the Kansas law is de-
fined as a combination of capital, skill
and acts by two or more persons, firms,
corporations or associations, or either
two or more of them to increase the
rate or price of merchandise, produce or
commodities, or to control the cost or
rates of insurance. Section 1 of chapter
Z57 of the laws of 1889 so far as the
same relates to the cost of insurance,
follows: All arrangements, contracts,
agreements, trusts or combinations be
tween persons, or corporations made
with a view, or which tend to control
the cost or rates of insurance are here
by declared to be against public policy,
unlawful and void
TT is evident that if this association
was not organized for the purpose of
fixing and controlling the rates and cost
of insurance such is certainly its tend
ency and effect as established and now
existing. It is my opinion that it is al
unlawful combination of persons within
the meaning and letter of one of the
sections of law above quoted and a
trust within the spirit of the other.
Il will add, however, that the indi-
vidual members are concerned only in
their relation to the association and
that the several companies by them
represented do not appear to be con-
nected or CONCERNED in any MaY.,,