The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-07-05
TRUST TROUBLES.
Internal DiSsenSiOn In InSur-
ance Combination.
Talk of Disbanding the Organi-
cation as a Result.
PACKING HOUSE RATE
Some One Broke Over the Iron
clad Rules.
In Spite of This 1t Is Claimed
There Is No Trust.

The state administration and few
Of the insurance men in Topeka have
I been attempting to make the people be-
lieve that there is no combination
among insurance companies for the pur-
pose Of maintaining rates. The super
ntendent of insurance has stated that
the new system of rates is not a COM
0inatiOn and that the companies are
taking the steps already announced
from a sense of justice and fairness and
that there is no effort anywhere being
made to foster a trust or a combination.
A new and unexpected demonstra-
ton of the fact that there is a combi-.
nation or trust, among the insurance
companies come from Kansas City and
Chicago. It is an instance in which the
governing committee of the insurance
company union attempts to enforce the
regulations of the combine and fails.
The governing committee has sus-
tanned charges against several compan-
les which were taking the risks on the
Schwarzschild & SuIzberger packing
house at Kansas City, Kan, at 81 when
the rate promulgated by the union is
S120. This same union is the one which
promulgated the rates now being adopt
ed for use in Kansas.
The annual meeting of this union is
to be held at Niagara Falls in Septem-
Der The grievance committee has re-
ported its findings back to the govern
ing committee which has notified the
insurgent companies that unless the
packing house rate is advanced to $120
the union rate, there will be no neces-
sity of having the annual meeting.
This announcement means that the
action of the companies in refusing to
observe 1.-THE union agreement the
packing houses is likely to disrupt the
union, a condition which would remove
the necessity for the annual meeting.
When the representatives of the in
surance companies, who are members of
the governing committee, heard of the
reduction in rates, each Of them at once
/ cancelled the risks he held on the pack
ing house property. Then the trouble
commenced. Failure on the part of the
union companies to cooperate to secure
this advance brought great trouble to
the governing committee and the end is
not yet.
The packing houses referred to in the
/ foregoing are in Kansas. They are Kan
sas property and the companies which
have been in this fuss about a reduc-
ton of rates on the packing houses are
licensed and are doing business in this
state. If a company engaged in writing
+ this business is not authorized to do
business in this state the Insurance de-
partment is not aware of it. And, be-
/ sides it would be illegal business.
The governing committee of the union
! which is in trouble is also the governing
committee for the same union which is
operating in Kansas. This is mani
testify true because the packing houses
are in Kansas.
In the face Of these facts it is GER
tainly OIt the question for any man,
/ official 0" representative of the state in
| surance department or insurance COM
! panies to deny the existence Of this
/ combination or trust.
/ When insurance men admit that this
/ new schedule of rates or the rates about
which so much has been said by the adj
m1nlStrauOn which claims credit for the
! reductions, that they are promulgated by
this union in Chicago what grounds are
left upon which to base the assertion
that no combination exists?
! There Is an insurance combination
and every man in Kansas who has
given tho subject a moments consider
alton, knows it, Notwithstanding the de-
malls which have come from high places.
In this connection it is highly anus
| ing to ncte that the governor is mighty
! sick of tbe jab he has undertaken to re-
/ duce INSURANCE rates He has aroused
! the antaEOnism of the insurance men all
/ over the state and the managers of the
/ companies, sitting in comfortable Of
! fees down east are writing to their
/ local agents to inquire what new mania
/ has taken possession of the administra-
/ tive pOw@rs of the state The insurance
/ men in Topeka, are up in arms and say
/ they wiz not adopt and use the new
! rates because the system upon which
] they are scheduled is entirely wrong.
| Then, 500, the effort to reduce rates
has restored the ClarkSOn rate com BIZ
nation bureau and this is not q, piece
/ Of business calculated to improve the
| opinion which patrons of insurance
| companies have of the adminiStra ton.
| One Of the leading insurance men in
| Topeka said today: THE governor, I
am told would like to let go of this
! business, but he has gone so far with it
\ that he can not retrace his steps, and it
| looks as though the whole business might
/ yet be abandOned--It was a cheap pO-
! Iitical scheme at the outset. Incidentally
might remark that insurance men are
| laughing at the recent denial that there
/ is a union among the companies and
also of the fact that there is no cOmbi-
] no man who Dretends to have any
/ knowledge of the situation and the ac-
| tual conditions would permit himself to
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