The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-05-10
Alleged Combine of Foreign
insurance Companies Re-
sponsibIe for the Unpopular
Rate List.
ATTORNEY GENERAL Is
IN SEARCH OF EVIDENCE
Bingham Has Filed Action
Against the Alleged ''Insur-
ance Trust" and Is Now on
An Eastern Trip.
Especial correspondent.)


Indianapolis, Ind, May 1O.-Attor-
ney General Bingham has gone east
to get evidence to use in the suit
which he filed in the superior court in
this county Saturday afternoon to
break up the fire insurance trust. He
believes he will be able to get valuable
pointers on the trip.
The suit filed by Bingham is Of
great importance to not only insurance
people. but to the business people of
the state. All of the 100 companies
against whom the suit is directed are
foreign companies, that is they belong
in other states. No Indiana compan-
les are included. 1t is charged In the
complaint that all of these companies
have entered into a combine known as
the Western Union, the purpose of
which is to fix rates for fire insurance.
This Western Union has it's headquar
tiers in Chicago. and has state bu-
reau in Indiana, with a branch local
bureau in every city in the state. The
branch bureaus are in charge OF some
local insurance man whose duty 1t Is
to inspect every policy written by any
agent of these companies and see that
the rates fixed by the Western Union
are maintained and that no policy is
written at cut rates.
Liable to Expulsion.
Any company that writes a policy
below the rate fixed in the Western
Union schedule is liable to expulsion
from the union. There are good
many companies that do not belong to
this union, and most Of them maintain
the same rates that are charged by the
companies that belong to the union,
though some of them write business at
cut rates.
The complaint alleges that the COM
panies in the Western Union use what
is known as the Dean schedule in fix
ing rates for insurance in Indiana. and
that their rates are made uniform by
that schedule. It alleges that this
schedule enables the companies using
1t to fix rates at an exorbitant figure.
In other words. it charges that the in
surance rates in Indiana are too high,
and that this condition Is due to the
TACT that the 100 companies have en-
tered into an illegal combine for the
purpose of keeping insurance rates up.
Collects Long Time.
Mr. Bingham has been collecting ev-
idence for some time to use against
the companies in this suit, and he says
he Is prepared to show unlawful con-
spiracy among the companies.
The complaint asks the court for an
Injunction to prevent the companies
from doing anything under their COM
bination agreement. II the permanent
injunction is granted at the end Of the
trial 1t will mean that no company will
be allowed to compel its agents to send
his policies through the local inspec-
ton bureau for inspection and approx
al, because the inspection bureau is the
representative Of the combine. In that
case an agent would send his report
direct to his company, and no other
company would know what rate he
was charging for Insurance. 1t might
mean q war of insurance rates, but 1t
would mean the breaking up OF the in
surance trust that has held sway in In
diana for years. ..
From every part Of the state there
has for a long time been a complaint
against the rates insurance companies
were charging for their policies. The
rates have been denounced as entirely
too high, but no relief has ever been
given by the companies. 1t was this
general vail from over the state that
caused Attorney General Bingham to
start his suit on behalf at the state to
break up the fire insurance trust