The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-07-10
He CAN FIX IT.
Attorney General Jackson De-
cides Insurance Question.
Commissioner BARNES Has Pow
er to Fix Rates.
DEFENDS NEW LAW
In Same Position as Interstate
Commerce Commission.
Complaints About Increase Go
to State Department.

Attorney General Jackson today gave
out a statement in regard to the new
insurance law which will be Of great
interest at this time in view OF the pro-
tests that are being made by certain
people regarding an alleged increase in
the rates. Attorney General Jackson
believes that the new insurance law is a
good one in the main. He is of the optn-
ion that it gives the insurance commits
Sioner absolute power to fix insurance
rates. The opinion in full is as follows:
Considerable discussion has arisen
over the new fire insurance rating law
and regret that conditions have been
such as to prejudice the public against
the law before it has had q fair chance
for trial. 1t is a good law and when
rightly administered will save the state
premiums Two things are talked about
most-that there is a joker in the law
and that it legalizes the Eldridge rat
ing buFeau-neither Of these are true
and the most important feature of the
law is entirely overlooked. This is that
the superintendent of insurance has
complete authority to fix the rates of
insurance.
'@rhe increase in rates by the insur-
ance companies which has justly
angered the public did not begin un-
der this law, but nearly two years be-
fore it's enactment, and shortly after
the San Francisco fire. At that time,
acting with Superintendent Barnes,
companies and the Eldridge bureau.
This suit is prepared for trial and viii
be tried as soon as it can be redched
by the court, unless the administration
of this law by the insurance depart
ment shows it is unnecessary. 1t is
Just as much a crime now as before
the new law for the insurance COM
panies to combine for the purpose of
using the Eldridge or any other rating
bureau.
sThe public has an interest in every
rate charged by an insurance COM
pany. first to see that it is reasonable,
and second. to see that it is adequate
to enable the company to pay its losses
should losses occur.
''The new law proceeds along the
same lines to reach these results as
the inserstate commerce railroad
rate law and seeks to prevent dis
ordinations by requiring the rates to
be fled, and places the power of fix
ing the rates in the hands of the
states superintendent who is elected
by the people. Competition can be
pany make Just as low a rate as it
wishes. Before the new law it had to |
get consent from Eldridge to lower the
rate, now it can get the permission
from Mr.. Barnes.
"It is a mistake to suppose all the |
insurance companies favored this law. !
Some of the western companies, par !
those of Kansas, favored the |
A6dIuTSSs anu were
not as pronounced in their opposition |
to state regulation as the eastern |
but it is a fair statement |
that all accepted this feature unwil- !
Iingly.
'3Those who have complaints should |
present them to Superintendent |
Barnes promptly and give him all pos |
sible information and assistance in |
equitable to every one for the entire |
state. This is the greatest opportunity |
for real service to the state which has |
come to a public officer in recent years |
and superintendent Barnes will no |
1oubt meet it promptly and eff
cientIy.''