The Montgomery advertiser., 1909-12-31
MANY MERCHANTS IN COLLISION
Freebooting Insurance Companies
 lnjme Legitimate Trade.
Secretary of state Jsiisn neesares sze.twsmery Basiaess Firm Is H<@vy vaoistsry Solicitor. If state Asked to Ala In
 Detecting.

There will probably be a general shaking up of things in Alabama when next the grand juries of the six ty-ssven counties are assembled. ir the fire insurance field. occasioned by an alleged oontinued violation oi state laws regulating the business.
 Laughing at the state laws. and protected by merchants with whom they are in coilusfon. unauthorized in- surance companies and the men oi Alabama who take advantage of theii cheap rates have violated the laws toe long,
 If the letter of Frank N. Julian secretary of state and ex-officio insu- rance commissioner. which was issued Thursday to every circuit, county and city solicitor of the state. is needed then the next grand 3uries which as- senible will find work cut out for them In bringing to book those insu- rance companies which do business in Alabama without authorization, and their agents and adjusters, as well as the merchants who patronize such freebooters and fail to report to the state department Of Insurance.
 The offense of doing business with out license is the greatest evil and the most intangible evil when il comes to detection, in connection with the insurance business of the state. Mir. Julian has said. The prac- tice of relating on Insurance. as pro- hibfted by section 7lsS of the code. if also a frequent evasion of the state laws nowadays. Against this, too, the solicitors or Alabama are warned.
 High Licenses the Cause.
 High municipal licenses have caused scores of fire insurance companies to look askance on Alabama as field for operation. Many of these com panies. with their expenses frightened by absence of heavy licenses taxes can offer rates at figures far less than can the companies who enter legally into the state. Merchants. whose rates the unlicensed companies are not par ficulnrly sfsstrous of exposing their benefactors.
 By the laws of the state. a person taking out insurance in unauthorized companies are within the law if they report their action to the state de- partment of insurance and pay to the department one percent of the gross premium which they pay on the insu- rance thus placed. Failing In this thay are subjected to fines of not more than $500 for each violation.
 .Findfng the course lucrative and sasy." said MT. Julian Thursday srnost Of the merchants thus acting 10 not report to the state department. Y.axisimata insurance companies suI- fer by the unequal competition
 Agents of unauthorized companies if detected doing business within the state. are subject to ine of not less than s100 or more than sSoo' Tnere are no means of detecting agents however, for the merchants Whe ss advantage of their oners would pc the last ones to expose them, accord Ing to Mr. Julian. .
 Adtusters for unauthorized tnsu- rance companies may act within the law If they pay to the State Depart- ment of Insurance one-half or pet cent of the amount paid by the com uany on any loss Incurred within The State. Failing to do this, the ad' 1uster is subjected to nne or no more than $500, and Is barred iron ever doing business in the state. as is his company. This law. neither, If observed, says the Commissioner. 1T his letter he said:
 .sYou will find upon investigation that many business concerns are car rying a very largo line of insurance in unauthorized companies. and ars making absolutely no effort to comply with the laws requiring reports and payment of tax on such business. II is an injustice to the State as well al an imposition on your local agents who pay a State anu municipal license and with your cooperation We hope to