The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-12-29
INSURANCE WAR.
A Topeka Agency Brings an
Action Under
The Kansas Antitrust Law
Asking Damages.
UNION AND NON-UNION
A Sequel to the Recent Rate
Cutting Contest
In Which the People We're
Given Cheap Insurance.

This time Frank S. Thomas, an agent
Of seventeen years in business in To-
peka, has brought suit against the
Springfield Fire &, Marine Insurance
company of Massachusetts for $1,000
damages because the agency was taken
away from him after he had worked for
five years in building up large busl-
ness for himself and the company A
similar suit has been brought against
the Traders Insurance company, Of
Chicago.
The petition was filed today by Ferry
& Doran and David Overmyer, attor-
neys for Thomas.
The document sets forth that for more
than seventeen years the plaintiff,
Thomas, has been what is known as a
nom union insurance agent-that is, an
agent who does not submit to, and who
is not governed by the rules of any un-
ion of insurance companies or cOmbina-
ton or trust of insurance companies. or
ganized for the purpose of controlling
the cost or rates of insurance.
The petition says that an agent Of the
Springfield company came to Thomas in
October last and warned him that if
he took the agency of the Continental
Fire insurance company of New York.
the Springfield agency would change its
agency, but asking Thomas to consider
a proposition to take eight or ten of the
largest union companies and exclude all
the non union companies. Thomas re-
fused.
Said agent and representative of the
y,
said that the Springfield Fire & Marine
Insurance company would not be assO-
ciated in an agency with the Continen-
tai Insurance company of the City Of
New York, which is and was, an indie
pendent, or nOn-union company, and
was at that time preparing to write in
surance in Topeka at a lower rate than
that fixed by union companies.
The agency was revoked and a COM
petitor appointed who took charge of
books and business.
The petition continues, the Springfield
company, being a member of an unlaW-
full combination of insurance cOmpan-
les known as the Western Union
which combination is and was a trust
organized, formed and controlled for
the purpose of forcing non union COM
panies into said combination or trust,
and by so doing to perfect said unlaW
full combination or trust. so as to COM
pletely control the cost and rate of
insurance: that said unlawful cOmbin-
alton known as the Western Union,
whose headquarters are and we're in the
city of Chicago, Illinois, on or about the
18th day of September, 1899, adopted a
rule or regulation at a meeting of said
Western Union, held in the city of Nj
agara Falls. in the state of New York,
by which all members of SAID 'WeStern
Union We're directed and compelled to
pay local agents an increased or addi-
tiOnal compensation for writing fire in
surance in Union companies, provided,
said local agents would expel from their
agencies all nOn-uniOn companies; that
said rule is known as the wv eStern I'm
ions Separation Rule that under this
rule the increased or additional commits
siOns above mentioned would be paid,
and were and are paid, by union com
panies to all local agents who expelled
from their agencies all nOn-uniOn COM
panies.
That the object and purpose of said
Western Unions Separation Rule" was
union companies to join the Western
Union" second, by forcing nOn-union
companies to join the said Western
Union" to thus perfect it's unlawful
combination and trust to such an ex-
tent that the Western Union could
completely control the cost and rate Of
insurance.
CASES FAR REACHING.
These cases are said to be very i'm
pOrtant and far-reaching. touching the
question of trusts, and the application
of state laws to insurance combina-
tiOnS. The insurance commissioners and
the attorney general of the states of
Minnesota and Ohio have taken the
same position as Mr.. Thomas contends
for in these cases. The Minnesota auth
critics have held that the Western
Unions Separation Rule will not be
permitted to be enforced in that state
holding that it is rule, promulgated
by trust, in restraint of trade and
competition and contrary to the anti
trust laws of Minnesota and that the
license of any insurance company will
be revoked if it undertakes to apply the
rule in that state
But the question has never been pre-
Sented to the courts and the cases filed
today are the first to invoke a judicial
determination of the question. The anti
trust and combine statutes of the state
of Kansas are the most severe and are
said to be the best antitrust laws pass
ed by any state in the union, and the
supreme court in the FOrty-SeVenth
Kansas Supreme Court Reports has
held that they apply to business of in
surance. These cases and others filed
in this and other states show that the
people are beginning to invoke the laws
already on the statute books for their
protection against trusts and combines.
These cases will undoubtedly be bit
terIy contested on both sides, and end
in the supreme court It is said that
these companies have so conducted their
agents as to bring themselves absolute
ly within the scope and tolls of the
antitrust laws of Kansas. At least
that is the plaintiffs position.
This is the second time that the
Thomas agency has been set upon by
the Western Union" combination.
It will be observed that he has en-
ployed strong legal talent The fight
ing qualities of the principals to the
suit are we'll established. These cases
may result in the adjudication of the
principal and collateral questions aris-
ing out of the application of the Kan
sas antitrust laws to the insurance
tions in attempting to injUre and de-
stroy the established business of indi-
viduaIs. to Stifie competition and to
secure arbitrary power within the trust.
Mr. Thomas says Of the suit;
This is the second time the combin-
alton known as the Western Union has