The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-07-19

The nre insurance companies Or
ganized upon a plan that the Arkan-
sas Legislature deemed an insurance
trust have boycOtted the State OF Ar
kansas because it legislates against
any combination in insurance. 1t
was freely predicted that the Supreme
Court would declare the law unconst1-
tutional, but that prophecy was not
fulfilled, and the law is declared to
be constitutional. 1t is now suggest
ed that the cases may be carried to
the Federal Court but inasmuch as
the Supreme Court of the United
States has held that insurance is not
commerce, il is hard to see how any
Federal question can be declared out
of it.
Some years ago the State of New
Hampshire was boycotted by the in
surance companies, but it did not go
into legislation. All the fire insur-
ance companies except two have
withdrawn from Arkansas and no in
surance can be obtained on proper
~ there except in the local companies
and from outside companies that DO
not belong to the combine. The whole
country will watch with interest the
outcome of the fight in Arkansas
II its wealthy business men win
study the history of the North Caro-
lima fire insurance companies, and or
ganize a local company in every town
with stronger companies in the larg-
er cities to do general business,
they will be built up upon home bust
ness that will astonish the organiza-
ton and bless the State. The truth
is that if every Southern State would
organize good home companies TO car
nv a portion of the risks ii Would
keep at home millions of dollars that
are annually carried to Hartford, New
York and other Northern cities, and
devotion the insurance talent of the
South. There is nothing intricate
about the insurance business. 1t can
be conducted as we'll by sensible bus
mess men in Little Rock and Raj
eigh as we'll as in Hartford or New
York. In North Carolina the home
companies have done we'll There
are to be more and those we have
ought to be more largely patronized.
The boycott in Arkansas comes at
a time when that State is not able to
carry its insurance, but the withdraw
al is a challenge to that State and
outside independent companies TO
show that they are equal TO its emer-
gencies. IL the private companies
cannot provide adequate insurance
why shouldn't the State insurance
department, backed by the State, be
empowered to issue policies at cost
until private companies, willing TO
obey the State laws. can underwrite
the property of the State? No State
ought TO be at the mercy of an IN
surance combination and every State
ought to make it impossible for its
laws to be violated or its people be
made to suffer boycott by reason or
of laws against trusts or combinations.
Arkansas has been put upon its
mettle and it's own resources. If its
people are wise and courageous its
capitalists. progressive and prudent,
and its State spirit is properly arous-
ed it will convert the threatened evil
into a blessing. and instead OF the
withdrawal working harm, 1t VIII
cause home people to learn to or
ganize strong companies to care for
their insurance. If it is able to do
this it will teach the boycotters les
son and establish a new business
in Arkansas that will make that State
rich. Why shouldn't this boycott
stimulate Little Rock to become the
Hartford of the State?