The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-12-29
NEARING THE END.
All Evidence i'm Insurance Case
Is Presented.
Attorney General Jackson Sub
mits His Agument.
PROOF OF A TRUST.
Points to Methods Followed by
EIdridge Bureau.
Insurance COmpaniesCl Claim They
PROOF OF A TRUST.
Insurance COmpaniesCl Claim They
Have Not Violated Law.

A&VO WV
All will be over in the suit against
the fire insurance companies for viola
ton of the state antitrust law by TINS
evening except Judge A. w. Dana's de-
cision. The evidence was all in at 10
o'clock this morning and the attorneys
agreed to divide the remaining time
until 4:30 giving each side two and
half hours for argument.
Attorney General Jackson, complain
ing that the closing of evidence sooner
Than expected threw him into the arSu-
;nent rather Unexpectedly, nevertheless
presented a clear outline of the
states case as he has seen it. In the
first place he cited the two antitrust
laws of Kansas: the Burton law OF 1883
and the Farelly act of 1905, both Oh
which specifically include the forming
of combines or agreements which tend
to increase, reduce or fix insurance rates
as we'll as the more known instances
OF mercantile business.
In this connection, the attorney gen.
eral placed an unusual construction on
the law stating that if a corporation, or
companies under agreement, doing legal
business in another state which would
be illegal under Kansas law, then II
would be illegal for that corporation 10
do any business in Kansas whatsoever.
10 matter if the manner OF business
were wholly changed SO as to comply
in this state with this states law. AS
a working example, 1t was cited that
insurance companies doing business III
Missouri under a uniform rate agree
ment although legal there, would have
40 right to do business in Kansas even
if they abandoned the uniform rate
here.
But the main contention of the states
case was outlined by Mr.. jackson TO
consist of three separate conditions
which exist, md any one of which he
thought would convince the judge that
there was a violation of the trust law.
Tristan agreement between the IN
surance companies to use the Eldridge
rates as an uniform OASIS 10 controi the
rates of insurance
Second-If not an agreement, at least
an arrangement by which all companies
refer to the Eldridge rates as their basis
and which amounts to the same thins-
Third-Companies enter into an ar
rangement or a course of conduct Tor
the purpose of accomplishing legal pur-
poses under certain conditions by which
legally trade is restrained and prices
are controlled. The rule in that case
sonable even though the contract Is le-
gal. and then becomes illegeL
Mr. Jackson then led up to the
present case through the history of
the rate making IOI the COInpduAcS
from the time when committee or
twelve met in Chicago and fixed uni
form rate. Then trust laws began to
interfere with the uniform rate and
the union of insurance companies,
who agreed to use a certain rate, was
effected Then Garrison, one of the
original twelve rate fixers, started the
Clarkson bureau to supply this rate to
be agreed upon and the minimum
tariff became famous. But the trust
re- n
and began to hunt around the Clark
son camp. In Kansas there were con-
ferences with Governor Stanley, re-
duction of rates and the establishment
of the new rate bureau.
Where did they get a man? Mr..
Eldridge, who had been in the Clark
son offices for years. The reduction
of rate was on a basis supplied by
Eldridge, who never lost his grip on
the CIarkson minimum tariff
The attorney general ridiculed the
idea testified to on the stand by Mr..
Eldridge that his corps of seven men
could keep a minute inspection re-
port on every house in the 500 cities
of Kansas and locate each change of
a window, fire door or lean-to, ETC.,
and which work could not be done by
an army of men under the direction
of the local agents. In supporting
that statement that it was ridiculous
to suppose Eldridge had carefully
Jackson stated that the Eldridge bu-
reau had been established and reports
and rates submitted to the insurance
companies on June 1, 1899, a consid
cradle length of time before the seven
men "he blowed about had ever been
sent out. The rates in that first re-
port Mr.. Jackson asserts. were none
other than the Clarkson rates.
Another point raised by the attorney
general is that Eldridge would never
have risked the establishment of his
bureau had not the insurance COM
panies urged him to do so, agreeing
to accept his rates. Furthermore, Mr..
Eldridge receives $4,000 a year from
the united companies and the attor-
ney general refuses to believe that Mr..
Eldridge does not know he is work
ing for them.
It is in substance, Mr.. Jackson's
contention that the conduct of the
companies has been the same identi-
cal agreement to observe the uniform
rate ever since the committee of IL
used to meet in Chicago and agree
upon rates, although the method has
varied so as to escape prosecution.
The Insurance Contention.
The insurance companies in their
defense viii raise three or more dis
tinct arguments which seem to have