The Birmingham age-herald., 1909-08-09
DRAGNET AFTER
 ALLEGED TRUST
Insurance Companies of MissiS-
 Sippi Prepare to Fighl
FINES WILL BE HEAVY
Farmers Warehouse at Pelahatchie Is Doing Good Business and More Stock In Enterprise
 Is Being Taken.

Jackson, Miss, August S.-(Special)-
 Very little noise is being made about it.
 but the attorneys for the 40 insurance companies included in the drag-net thrown
 out by the states attorney at Tupelo,
 who is assisted in the big antitrust pros-
 ecution by Private" John Allen, are not
 letting the grass grow under their feet,
 and they are understood to have the sym
 pathy and the assistance of attorneys for
 several of the insurance companies whose
 names do not appear In the list of those
 charged with being a trust and combine
 in restraint of trade. knowing, as they
 do, that if one Is guilty as charged, all,
 or most of them are.
 The success of the attorney general of
 the state in the suit against the re- tail lumber dealers has encouraged the prosecution in the hope that they are going to have easy sailing to convict in fact, they do not for a moment doubt that contingency. and in the event the courts decide the 40 companies have been operating under a combine for the main tenance of prices and the 50 other com panies are brought into the limelight also, the fines and penalties will amount into the hundreds of millions and run
 every insurance company out of the state.
 But there is another charge on which the prosecution Is banking heavily, and it is one of the counts of the indict- ment. Under the laws of the state no corporation is permitted to own or to hold stock in another corporation doing a similar line of business. In the event the insurance companies are not caught on that proposition. the prosecution has one more arrow in the shape of decision of the supreme court of the state to the effect that the stock need not necessarily be in a corporation doing a similar or competing business.
 It is well known that those insurance companies of any standing have stocks and bonds of all kinds of corporations, but it may be that they do not hold them as their own property by investment, but simply as collateral for loans.
 The filing of the suit has precipitated a lively war between the trust com panies (alleged), and the Independents or, as Private John Allen calls them, the "buzzards." The buzzard is a com pany that has been reaping the benefits of the work of the trust companies, and
 has done none of the work and spent
 none of the money necessary in acquiring
 information, and agents, in many places,
 are no longer permitted to represent both. At meeting Of the directors If fhe Farmers warehouse at Pelahatchie to- day all the old officers were reelected and the affairs of the company found to be in good condition.
 The subscription books were thrown open and $100 worth of stock in the en- terprise was taken each by J. A. Taylor and John Ross, merchants of the little city. It is understood that all other bus mess men of the community will take stock next week and be prepared to handle all the cotton that Is grown in that neighborhood.
 These farmers warehouses have been built in nearly every town of any i'm portance in the state, and 1t Is understood that the majority of them are already affiliated with the General Warehouse company, launched by the Farmers unoin for the holding of the cotton that is pro- duced by the members.
 Though nearly three months off, Jack son has already begun to figure on the entertainment that is to be provided or the occasion of the visit of President Taft November l. In view of the fact | that the state fair will be on the man agement of that enterprise Is taking 6 great deal more interest In the President coming than would otherwise be expect | ed, and will join heartily with the citi zens' committees in making the day the | biggest in the history of the city. Ad | 1utant General Fridge has been requested | to see what can be done in the way oi | a military display, but in view of tht fact that there are no funds available | for bringing the troops to Jackson or | such occasions and for such purposes | 1t will be left to the individual guards | man whether he comes or not. It Is hoped l however. that of the 1900 men belonging | to the National Guard there will be 60 | or 800 who will be more than willing | to pay their own expenses to Jackson tt | 1oin in the reception to the first Presi | dent of the United States who ever trot | on Jackson's soil
 Governor Noel has been requested t | issue his proclamation authorizing thu | organization of the "Cedars Railway ant | Mississippi Transportation cmopany," ant as the papers have all been made out i and there Is nothing for the governor t l do but to attach his signature. he vii | probably make the necessary proclama | tion first thing Monday.
 The incorporators of this new line o | railway are William c. King, D. l.. Kim l berly and Arthur E. Chapman of Cedars | and J. F. Conant of Milwaukee, Wis | This is not to be trunk line or any
 thing of that kind, being only about tel
 miles in length, 1t Is said, and Is intende'
 to give the citizens of Cedars rapid tran l cit into fhe city of VickshlrR