The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-07-13
Chas. w. Barnes, Superintendent
of Insurance, Back Of Move.
MAKES AN AFFIDAVIT.
Charges That 1t Is an Unlaw-
full Combination.
Action Before Judge Dana in
District Court.
Serious Charges Affecting Six
ty-twO Insurance Companies.

Through injunction proceedings
started this morning in the Shawnee
county district court, the state of Kan
sas has undertaken TO smash the
alleged fire insurance trust in the
state.
This may compel the Eldridge Rat
ing bureau of Topeka, which the state
claims is the business office of the
trust" to cease quoting rates to be
used as a general basis for fire insur-
ance premiums.
Judge A. w. Dana, on petition OF
Attorney General Fred S. Jackson
supported by an affidavit of Charles
w. Barnes, insurance commissioner
issued this morning a temporary in
junction against sixty-two fire insur-
ance companies doing business in
Kansas to compel them to cease any
unlawful combination or arrangement
for the purpose of controlling fire in
surance rates. The suit is not direct
ed directly against the Eldridge bu-
reau, but against the companies which
patroniZe it,
This suit against the insurance trust
has been brewing for some months,
but it was precipitated by a recent in
crease in fire insurance rates which
the companies have been putting into
effect in Kansas This increase in
rates is said to be the work of the
trust" through it's rating bureau con-
Quoted by Charles E. Eldridge in this
city. Many complaints have been
coming in to the attorney general and to
the insurance commissioner about the
rate increase, and about the arbitrary
rulings made by the rating bureau
concerning fire risks, which rulings
have the effect of changing the pre-
miums on fire insurance policies.
This is not the first time that the
Eildridge Rating bureau has been in
administration
of Webb McNall as insurance COM
missioner, the bureau was conducted
by F. A Clarkson, and Mr.. Eldridge
was one of his employees. McNafI
went after Clarkson roughshod, and
simply by using the club of his official
power. compelled Clarkson to with
draw from the business. 1t was COM
monty understood, however, that
Clarkson's withdrawal merely opened
the way for Mr. Eldridge to assume
charge and carry on the same bust
ness
During the administration of w. V.
Church as insurance commissioner,
fight was started on the Eldridge hu-
reau. This was in the nature of
local row between insurance men, and
Frank Thomas of Topeka was the man
who started in to put the Eldridge
bureau out Of business. The case was
fought through the district court. with
the result that the Eldridge bureau
won a victory. For some reason, the
appealed to the supreme court
The state Officers are now said to be
in possession of evidence which makes
It very likely that the Eldridge bureau
will be compelled to change its bust
ness methods.
Organization of the Bureau.
The plan of organization of the
Eldridge rating bureau seems to be
shrouded in some mystery Some
claim that Mr.. Eldridge and his en-
-a11- On sal Tia
acting as the employees of the insur-
ance companies. other say that the
bureau makes its money out of the
sale of its rating books. one of which
is issued for each town in the state.
These books are each marked with
special price, and this price is high.
The Eldridge bureau sends out agents
to all parts of the state to inspect
risks. Maps and charts are carefully
prepared, showing the exact location
and character of every business build
ing in the state. There are volumin-
Gus rules concerning building con-
struction, and certain kinds of con-
struction carry certain rate. BY put
ting in certain appliances for fire pro-
lection the property owner may re-
duce his insurance premiums. In this
way the insurance companies can die
tate to the property holder the pur-
chase of certain patented and I'M
patented devices calculated to make
MS building a better risk from the
standpoint of the insurance COM
panies. But every property owner
knows that he can't get any conces-
Sions from one company which he can
not get from another They are all
guided by the reports of the Eldridge
rating books. and when the bureau
advises" an increase in certain risks
1t is equivalent to a command.
Evidence is said to be in the possess
sion OF the state which shows that
company which dares to break over
thc rules Of the Eldridge rating bu-
reau is liable to severe penalties.
Makes Serious Charges.
The affidavit of Charles Barnes. in
surancs commissioner of Kansas, upon
which the suit may be said to be
based. is filled with sensational
charges against the Eldridge bureau.
1t says in part:
IT further swear that, in the adj
ministration of my official duties I
have learned that there is in existence
in the state of Kansas, ar unlawful ar
rangement, trust and combination in
restraint of the business of fire in
surance within the state of Kansas.
and that the above named defendants |
are members of and participants in |
such unlawful arrangement trust and
combination; and that by means of |
such unlawful arrangement, trust ana
combination, the cost and rate of in |
surance to the citizens of Kansas is
arbitrarily fixed at high and extor
tiOnate figures by one Charles e FId
ridge OF Shawnee county, Kansas, who
Is general agent or other general
by common consent Of the above