New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-14
SUES BOND COMPANIES.
Ercise Security agent Charges
Illegal Combination against Him.

The suit Of Frederick p Dawson against eight
insurance companies writing excise bonds IN this
city. alleging that they have formed Illegal
combination and have damaged him 20 the extent
OF $4,000 thereby will be heard this morning before
the Attorney General IN the local Office at No q
William street. The complainant VIII be represented
by jay Noble Emlsy. OF Kenneson. Emley e
RubinO.
Mr.. Dawson charges that the insurance com
psnies violated Section OF the Stock Corporation
law, which says;
No domestic stock corporation and no foreign
corporation doing business in this state shall com
creation OF a monopoly for the unlawful restraints
Of trade or FOR the prevention OF competition in any
necessary of life.
The companies charged with a violation Of this
are the American Surety Company. of New York;
Bankers Surety Company. Of Ohio: Federal Union
Surety Company OF Ohio: Federal Union Surety
Company. Of Indiana: Fidelity and Casualty Com
pany, Of New York; Metropolitan Surety Company.
OF New York; United States Guarantee Company.
OF New York. and the United Surety Company. OF
Maryland.
Dawson says that since November 1901 he has
been engaged IN procuring excise bonds for brew
ers and saoonkeepers In this city. He alleges that
about April OF this year the companies mentioned
entered into partnership agreement. and that
following this agreement the companies formed
COMMITTEES. comprising George F. Seward. OF The
Fidelity and Casualty Company; Henry ID. Lyman.
Of the American Surety Company; John c. Caullet
Of the Metropolitan Surety Company. and DIN
Bryan. of the United States Surety Company. He
says that since the formation OF this committee
none OF the companies have issued any excise
bonds through II, and that an arbitrary scale
established by the committee ranging from
$40 for o bond OF 81 800 20 $40 for a bond Of 500
The complaint also alleges that this committee
collected for the issuance Of excise bonds before
May more than half million dollars, and that
$4,000 was distributed among the various companies
and that on June I similar sum was also dstrib-
uted. The complainant says further. that he Is In
formed that the committee has 10000 still
70 it's credit the bulk OF which is on deposit in the
Metropolitan Bank. This sum. Dawson says, ac-
crued from the charges which the committee
tablished-mOTe than twice the rate charged by the
different companies.
It is also charged that an administrative commit
was formed, composed OF Edward G. Lunt, OF the
Fidelity and Casualty Company. the chairman; Al
bert F. Shwannecke, of the American Surety Com
pany, secretary. and Julian J. Mason. Of the Bank
ers' Surety Company. This administrative commit
tee, 1t Is alleged, formed certain blacklistg from
names sent IN BY the various companies. The COM
panies, Dawson says. refused 20 write excise bands
for the prOprietOrs OF these saloons at the rate fixed
by the partnership agreement. but charged varying
prices up TO 1900 Dawson says that the committee
refused to receive any application for bonds rom
him 70 write for any persons whose appucatiOn ne
handed In. He says the committee forced him out OF
business and damaged him TO the extent OF $4,000.