The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-12-22
ELDRIDCE RATES.
Suit to Force DiscOntinuance
Has Begun.
Attorney General Jackson Con-
duets Case i'm Dana'S Court.
EGE EAMRIN ATlAN
COMBINATION
Insurance Companies Take Ref.
uge Behind Law.
Declare That 1909 Statutes
Give Them No Alternative.

The suit brought by Attorney Gen
eral Fred S. Jackson to compel the
Aetna Fire Insurance company ana
seventy-two other companies to DIS
continue the use of the schedule or
rates prepared by the Chas. f.
EIdridge bureau as violation OF the
Sherman antitrust law was begun be-
fore Judge A. w. Dana in the dis
trict court today
The suit was filed in August, 1907.
The Kansas legislature passed new
laws governing insurance at Inc s,,r 80
session, which provide that the lnsuT-
ance companies shall publish ana ME
with the insurance commissioner
Charles w. Barnes. their basic rate
informing the commissioner and pup
fishing these rates ten DAYS peiore
they shall go into effect.
The counsel for the insurance com
panies took the ground Immediately
upon the opening of the nearing tndl
this law of 1909 virtually acted as
repeal to the antitrust law ana lorceu
them into a combination observing a
uniform rate. 1t was likewise inferred
that the passage of the interstate
commerce law by congress repealed
the Sherman antitrust law, viewed
nationally. Upon this ground; opJec.
ton was made to evidence about to
be introduced by the attorney gen
eral and was finally taken under ad-
visement by the court and Eldr1dge
placed upon the witness stand.
In claiming that the Kansas 1919
law had forced them into comb1na-
ton, the companies set up that Com
missioner Barnes had not followed the
exact wording of the law demanding
a reasonable" rate, but had gone so
far as to dictate just the rate which
answer that he did not know of any
such dictation. but that reductions OF
rate had been in the shape of certain
per cent.
The insurance companies argued that
such an order amounted to the same
thing, as for instance, a reduction OF II
per cent from 81 basis would fix the
rate at IS cents. Jackson countered Dy
stating that such an order would not
preclude any company from going low
er so long as it did not go "unreason-
ably, low Upon which event it could
be ordered to raise its rate to "rea-
sonable" figure.
1t is his contention that the new law
can be met by the insurance COM
panies in all requirements without the
necessity of forming combination
with an agreement to operate upon a
uniform rate.
The attorney general characterized as
preposterous the idea advanced that the
legislature of Kansas should compel
the insurance companies to go out ana
make such a rate. He also takes the
position that insurance rates are a
matter of public tax and should be
made known to all classes alike that no
insuring party may be the victim of a
higher rate than is taxed against an
other.
jackson Alleges Combination.
"The Kansas antitrust law provides
that insurance companies shall not
combine to establish rates" said Mr.
Jackson "and I contend that they have
Ill y, %rac-h h1Tf
have made agreement that they shall
not deviate from that basis no matter
what happens"
Again he says: 1.-THE use of the Ed
ridge bureau constitutes a violation of
the Sherman law"
made by Chas. E. Eldridge at his offices
in the Shawnee Fire Insurance build
ing. All the companies operating in the
state use the uniform rate calculated
by him and aside from their apparent
desire to do so claim that they are
forced to by the 1909 law.
Great Mass of Dispositions.
Extensive preparations have been
made for the case and the most able
attorneys employed. The witnesses will
not be many, however. and the evil
denee will consist mainly in deposit
tions from the home offices OF the
many companies.
Chas. E. Eldridge was called to the
stand by Jackson today and led
through his experience as an actuary
and to the founding of his own bureau
in Topeka in 1899. He is expected to
tell of his employment by the combin-
ed companies.
The amount of dispositions to be used
is incalculable. They have been arriv-
ing for a long period of time, both at
the rooms of the clerk of the court and
the attorney generals office. They are
piIed by the arm loads in the court
room and offices in all stages of pre-
servation and in all sorts of wrappers.
The case promises to occupy days
and perhaps weeks in its presentation
to the court and the result is looked
to as one of national consequence.