The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-05-11
This Is the Main Thing Against
Which Attorney General
Bingham Obtained Courts
Injunction Decree.
AFFECTED COMPANIES
AGENTS MAY SUFFER
Can They Legally Write Poll
cies While the Restraining
Order Is in Force, the Cues
ton Now Asked.

Indianapolis, Ind, May lit is a
serious question whether any of the
100 fire insurance companies III In
diana that belong to what is known as
the union" can legally write any In
surance policies while the temporary
order obtained in this city
by Attorney General Bingham stands
against them. This order restraints
them from performing any act pursu.
ant to the combination agreement I'M
til the case can be tried ON its mer-
its. Then the temporary restraining
order will be made permanent or dis
solved entirely.
The main thing against which the in
junction is directed is the use of the
Dean schedule of fire insurance rates
in Indiana. This is schedule Of rates
that has been adopted by the Western
Union Of fire insurance companies and
governs every risk written by any of
these 100 companies in this state. The
Dean schedule does not, apply to Ind
annapolis alone, but to every city,
town and county In Indiana, SO that
whatever would be a violation of this
restraining order in Indianapolis
would also be a violation anywhere
else In the state.
Sends Daily Report.
In all of the counties there is main
tanned local inspection bureau with q
local inspector in charge. Each agent
Is required to send through this bu-
reau his daily report on every policy
written by him. This report describes
the risk, the amount written. the rate
charged and the amount Of the pre-
MUM. The inspector keeps a record
Of all these reports and 1t is his dztS'
to see to it that no agent cuts the rate.
but that they all maintain the rates
fixed by the Dean schedule. It 10 this
fact that has caused such howl to
go up all over the state against high
insurance rates.
~ Since the temporary restraining ord.
er was issued by the court here Satur-
day afternoon, the Indianapolis local
IRE inspection bureau has not dcne
any inspecting, for to do SO would be
violation of the restraining order and
would make the person doing 1t liable
to punishment for contempt Of court
It was said at the inspection offioe
yesterday evening that no daily re.
ports Of policies written had been re.
ceived from agents and that mono will
be received from them until after the
Injunction case filed by Attorney Con
eral Bingham is settled. This means
of course, that if the agents are still
| writing business they have to. send
their reports direct to the home Off
| ces Of their companies without inspec
ton by any local inspector.
AZ to the Rates.
And the further question arisel
| whether any agent has any right t.
issue policy at the rates fixed by thu
Dean schedule while the restraining
order is in force. It is pointed out By
some lawyers that when an agent
writes a policy at the rates fixed BY
that schedule he violates the injmc
ton, because the Dean schedule o!
rates itself is illegal IL anything con
| nected with the case is illegal. The
schedule of rates is the "nub" OF the
whole trouble. 1t is against that sched
ule OF prices, fixed by the union" d
companies. that the suit is directed
The allegation is that the companies
have formed combination or trust FOL
the purpose of maintaining the rates
fixed in the Dean schedule. and thai
such combination is illegal.
| Local inspection.
1t Is not known here whether the 10
cal inspectors In the other cities of the
state are still inspecting policies o.
not. but 1t Is believed here to be dan
gerous for any Of them to do SO unit
the outcome Of the present suit II
known. II the court dissolves the re
straining order. Of course. the inspect
{ ors will 90 right ahead the same a
they have done, but II the restraining
order is made a permanent injunction
there will be no more Of the local in
spector. for rates Will be smashed an'
the union or combine or trust, as yo
may be pleased to call 1t, will be brol
en- up. In that case there will be ope
J competition. Each company will stan
Il alone.