The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-23
MAY HAVE TO QUIT
Attorney General Hits All Burial
Associations.
Violation of Antitrust Laws of
State.
OFFICIAL UNDERTAKEN
Designation of One Violation of
Antitrust Laws.
An Opinion Given Commissioner
Luling Today.
FFICIAL UNDERTAKEN

Attorney General Coleman has given
out an opinion in the burial association
fight which will have the effect OF put
ting every burial association in the
state out of business, if it is obeyed by
these associations.
General Coleman's opinion, given to
Insurance Commissioner Luing this
morning. is that burial associations
must pay. benefciaries in cash, and the
beneficiary can spend the money as he
sees fit. The burial association can not
compel its members to pay the 800 to
the official undertaken as funeral ex-
.penses.
AS the scheme of having an official
undertaken, and requiring that this Off
cial undertaken get the S1OO, is ali there
is to the burial association project, it
is likely that these associa tions will have
to go out of business in Kansas.
General Coleman holds that the 500
insurance can not be paid to any "offi-
cial undertaken because that would be
a violation of the antitrust laws of the
state. It would be a combination in re-
straint of the undertaking trade The
effect of the burial association in some
localities has been to almost put the ull-
dertakers not connected with the associ-
alton In the capacity of official under
taker'' out of business
In compliance with Mr.. Coleman's
ruling, Insurance Commissioner Luling
will send out letters to all the burial as
sOciatiOns in the state. informing them
that they must pay their losses in cash.
and dispense entirely with the official
undertaken feature The official under
taker is really the one who organizes,
manages and absolutely controls the as
sociation, under the present plan.
The question came before Mr.. Cole
man in a communication from Mr..
Luling enclosing the proposed constitu-
tion of new burial association. This
burial association tried to avoid the
antitrust law by specifying that when
the burial service Is not performed by
the association undertaken, the secre-
tary and treasurer shall retain 20 per
cent of the amount provided for such
burial as compensation for his services
IN organizing the association.
Mr. Coleman says in his opinion:
This organization, as others in the
state, does not seem to realize that the
important question is that the charter
provides that the organization have
authority to and that they viii each
pay the amount of the policy to the
benefciary named therein upon the
death of the member insured The
beneficiary has a right to receive this
money clear from all claims or liens
of the association of any kind what
soever. And any attempt on the part
of the association to retain this money
or any part thereof or to interfere
with the right of the party to use it
as he plea ses is a violation of the char
ter. Under the bylaws as they origin
ally existed they compelled the mem
Der to use all of his money in purchsls-
ing merchandise for burial and the
services of the association undertaken,
or forfeit his policy. The only differ
ence in the new policy is that instead
of keeping all of the money they at
tempt to levy a fine Of 20 per cent on
the amount proposed to be paid the
beneficiary if he patronizes other than
the association undertaken This is
Illegal, and as said above, is as much
a violation of the law as the bylaws
were in the first place.