The Tupelo journal. (Tupelo, Miss.) 1876-1924, 1909-07-30
The InsuranceSi:uation.
Editor Of the journal:

Editor of the journal:
/ desire through your paper to give
your readers some information which
think will enable them to understand
the insurance situation in this locality.
While we have stringent laws against
trusts sfld combin. s, tine insurance bus
mess in Mississippi has been largely in
control Of an Insurance Il ust. | have
known ever since our splendid water
.,ystem was inagurated in Tupelo and
since have noticed It's effectiveness in
extinguishing fires that our people were
being charged excessive rates for insur-
ance, and have Deen rebeliing against
the high rates and the methods by
which they were maintained. We not
only have good waterpressure but our
municipal government has at great ex-
pense distributed hydrants and hose
over the city in such way as to make
it most effective fire extinguishing
system. | know of no of small city
where the facilities -fer fighting fire
are better, or wne they are MOI .
effectively used 81
Notwithstanding these facts and the
great lessening Of fire risks in those
parts of the city reached by the water
Supply, tIIC lISut d1ASS COuuP1IlCO uoSC
given us no reductions in the premiums
paid for fire insurance, but have in
many instances raised the rates. They
have not only not given Us the rates
we were entitled to, but they charge
US practically the same rates that they
do in other small towns around US that
have no water system at all. We all
know this is wong, that is all who
have common sense, it is only chose
who claim to have insurance sense that
Justify it. 4 have myself made com
plant to some of the local agents about
it and they admit it is wrong, but tell
me they are poweriess to prevent it:
that the rates are made by some other
person and sent to them for their guide
and they had to respect them however
inequitable they might knew them to
be.
Formerly these rates were promulga-
ted bv an illegal body known as the
Southeastern Tariff Association, until
they were indicted and confronted with
the penitentiary for violation of the
antitrust laws of the state in fixing
and maintaining rates. They then got
penitent, and promised to abide by the
laws of the state, ani dissolve the ille-
gal Tariff Association if permitted to
do.business in the state. The state on
ly wanted them to obey the law, and let
them off on their promise to be good.
They have failed to keep their promise,
while they have not operated under the
Tariff Association by name. but ha,e
resorted to other schemes and methods
to accomplish the same illegal purpose.
One scheme was to have rates. sent
anonymously to agents and while the
agents did not know from whom they
came, they knew they had to write in
surance by said rates. This was such
a patent evidence of combination to fix
and maintain rates, the very thing the
law condemned, that they fell on the
schemes now being worked, that an or
ganization of corporation to make and
sell rates TO the insurance companies
known as the Mississippi Inspection and
Advisory Rating Company Under this
scheme the higher this rating company
makes the rates, the more it gets for
same. and the rates furnished insurance
agents all oyer this state to day are
made in this way. 1t is beautiful sys-
tenn for insurance companies but hard
one for the people who feel they must
carry insurance.
The insurance companies in this state
are divided into two classes. the Board
| Companies and the non Board Compan-
| les or the Regulars and Independents.
The Board Companies or Regulars are
those who insist on maintaining the
rates fixed by the rating company. and
| it would be perfect system for them,
| but for the non Board or Independent
/ (,omDanies who will not stand in all