The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-09-18
THE COMPANIES TO FIGHT
Foreign Insurance Companies Will
Attack constitutlonality Of
Anti-Compact Law.

the state for a good many years, and
which have taken offense against the
legislature for passing laws that made
1T harder to do insurance business,
will test the constitutionality of the
recent law. The superstition, ex-
pressed from Pierre and other points
IN the state, that these companies
were going to continue doing bust
ness in South. Dakota..and would sub
nit to the law without a%-struggle is |
evidently wrong.
The legislature last winter passed !
what is known as the Anti Compact
law, known as House Bill No. 176,
which seeks-t to prohibit all fire insur-
ance companies doing business in this
state from entering into any agree
ment or combination between each
other or auy--of it's officers, agents orr
employees from fixing rates to be
charged for insurance or the premi-
ums to paid, or the amount of COM
missions allowed agents for procuring
insurance or the manner of transact
ing the business of fire insurance in
this state-making it a misdemeanor,
punishable by fine; and also if the
insurance commissioner shall be sat
isied Of any violation he is author
lied to revoke the authority of the
companies to do business in this
state. /.
The foreign insurance companies
have had the subject under consider
alton since the passage Of this act,
with a view Of testing it's constitu-
t~iopallty in the Federal Court. Pres
ton &. Hannett, of this city, have
been retained on behalf of these COM
panies and Mr.. Preston has been in
Chicago several times during the last
few months IN conference with insur-
ance managers, with the result that
the firm has been instructed to pro-
coed with the case. Yesterday the
initial steps were taken 10y Mr.. Pres
ton in filing with the clerk Of the
United States Circuit Court at Sioux
Falls the complaint of the Hartford
Fire Insurance Co., the Phoenix of
Brooklyn, the German-American OF
New York, Springfield Fire Marine of
Massachusetts, and the Royal Of Liv-
erpool, England, on their own behalf
and on behalf of all other insurance
companies similarly situated. and
against john @. Perkins, commits
sioner Of insurance, to restrain him
from in any name whatever carry
ing out the provisions Of this act.
The insurance companies contend
that they were invited to come into
the Territory Of Dakota under the
then existing laws to do business
and that they have complied with al
the requirements, paid large fees ir
order to transact business, and enor.
nous taxes and that this present act
seeks to take away from them the
, business that they have established
that the Act is unconstitutional and
infringes upon the constitution o.
the United States and the State o.
South Dakota. They hold in theil
l complaint that this Act clothes the
Insurance commissioner with eXclus.
: i've judicial powers without the righ'
! of appeal to the courts; that article
IA of the Constitution Of the United
States provides that no person shall
> be deprived of bis property, nor de
MED the equal protection of the laws
of any state, and that this Anti
Compact Law gives the insurance
commissioner the power to revoke
the rights and privileges Of thes,
b companies without judicial inquiry
that the act creates a difference.
t distinction and discrimination be
tween insurance companies ant
a other citizens by providing rules O.
:, ipleadings and evidence in judicia
d proceedings not applicable to. court
Y and which violates the COnstitutioI
of the United States. The insur
t ance companies say that the opera
e ton and effect Of this law deprive
!. Ithem of the natural right Of con
l. tract and dong business, so as t
n discriminate against them withou
k imposing like restrictions upon othe
r. persons and citizens, and thereby in
a fringes and violates the provisions Q
n the Constitution Of the Unite
' zee. e..
j. Estates which prohibits any state t
y, deny to any person within its ]url:s
IT diction the equal protection Of tn
re laws.
,e The insurance companies fear tba
%unless the insurance commissioner
restrained he will undertake to carr
Into effect this law, and that ther
is danger of numerous actions bein
brought t%hrouhgout the state j
different counties to enforce it's pr