The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-05-10
Now Claimed That Gov. Stanley
Is COuntenancing a Trust.
Agreement to Reduce Insurance
Rates Contrary to Law.
WORKS BOTH WAYS.
Can Not Combine to Lower Nor
Raise Rates.
Attorney General May Be Called
to Prosecute Executive.

to Prosecute Executive.
; The claim is now made that Governor
Stanley's scheme to have the fire insur-
ance men representing companies doing
business in Kansas promulgate a new
series of reduced premiums rates will, il
carried into operation, become a viola
tion of the provisions of the antitrust
law.
According to the theory which is be-
ing advanced in connection with this
matter it becomes the duty of the attor-
ney general, upon his own motion, to
Immediately prosecute those identified
with the movement Immediately after
such action be taken.
The Kansas fire insurance men are i'm
session at the Coates House in Kansas
City considering the reduction Of rates
for fire premiums in accordance with
the suggestion which originated with
Governor Stanley. Some of the COM
panies want to make reductions but
there are many who claim that the
present rates prevent them from realiz-
ing profit on Kansas business
The plan is to save Kansas people
100000 in insurance premiums an
nually.
The meeting has been organized by
the election of John w. Hoffman OF
Kansas City. president. and Charles F.
The object of this meeting is to take
action upon the two propositions which
follow:
First-ShaII not a new revised min
imum advisory tariff for the state OF
Kansas be promulgated if it shall ap-
pear that the means for applying same
locally are available.
Second-In order to secure the utmost
possible benefit to be expected from as
sCciations of field men should
not restrictions as to membership be
removed?
These questions are being discussed
blythe Kansas City meeting which is
composed of men who do the field work
Ter insurance companies. There are
state agents, general agents, general
managers and secretaries of insurance
companies present These men repre-
sent what was once the Su1ffov-er club
which was charged with the response
bilfty of fixing the Insurance rates for
Kansas.
People will stand aghast at the sug-
gestion that it is unlawful for these
insurance men to agree upon and pro-
mulgate reduced rates for insurance
premiums, but such is the fact The
antitrust law passed two years ago by
the PopuIist legislature makes such an
act unlawful; declares that it is against
public policy and provides severe
unishment for those who engage IN
such transactions.
This antitrust law is particularly
plain with reference to insurance COM
panies- In fact it is just such law
as an insurance man himself might
draft 1t precludes the increase OF
premium rates but at the same time
prevents any reduction from the rates
which were in existence at the time the
law was passed through an agreement
or pool One company or all the COM
panieS may, in the line of competition,
cut rates, but it is unlaw wfuI for the
representatives of these companies to
get together and agree upon schedule
of rates whether it be in the nature of
a reduction or an increase.
The law of 1897 defines a trust at
length, the two provisions of the statute
being as follows:
A trust is a combination of capital,
skill or acts. by two or more persons.
firms, corporations, or associations OF
persons, or either two or more of them
for either, any or all of the following
purposes:
ITO create or carry out restrictions in
trade or comm merce. or aids TO commerce.
or to carry out restrictions in the full
and free pursuit of any business au-
thorized or permitted by the laws of
this state
-'SecOnd-To increase or reduce the
price of merchandise. produce or com
modities, or to control the cost Of rates
of insurance
There are additional provisions defin-
ing a trust but the second one, cited
above, is believed to be sufficient to
destroy the virtue of the plan to reduce
insurance rates in Kansas.
The law provides that Immediately
upon being informed or led to believe
that such an organization or combina-
ton has been effected the attorney gen.
eraI shall institute proceedings to dis
organize the com mbina ton or agreement,
or pool or whatever it may be called
and to prosecute the persons who are
responsible for it's formation.
The law further provides that companies
or corporations which engage in viola
tions of this law shall be prohibited from
further doing business in the state and for
each day that the law is violated the
a misdemeanor and subjected to fine OF
not less than 800 more than 81. .0G0 and
be confined in jail not less than sixty days
nor more than six months
the law are punishable in the same man
neT.
Should the attorney general fail to pros
ecute such cases he shall according 70
the law be subject to hne of not less
than 500 nor more than $1,000 and for
feiture of his office The same rule ap-
plies to county attorneys
Another provision is that all such con-
tracts made in violation Of this law shall
be invalid and nOu-enfOrCeable- So Il IS
claimed that contracts of insurance made
under a reduced schedule of rates
which all companies >had agreed would be
a violation of the law and of no value
whatever
The suggestion of such a condition con-
fronting the men who want to help Kan
Sas people by reducing the rates Of insur-
ance created no small amount of interest
at the state house today. Three OF the
state officers expressed the opinion that
the proposed com nbinatiOn to reduce rates
would be unlawful no matter how Just
and deserving it may be but they decline
TO be quoted IN connection with the affair.
lection which may embarrass the COVER
nor in carrying out his campaign pledge
to secure lower insurance rates in KAN
sas-