Daily press. [volume] (Newport News, Va.) 1896-current, 1910-06-18
STUART FLAWS THE
INSURANCE TRUST
CONTINUED From Second Page.)

is tried, convicted ~ tlacklisteo.
Answering a contention OF the de-
Tense while the evidence in the case
was being addUced that Virginia has
no statute 10 make the operation OF
the Insurance Trust illegal. Mr.. stu
art said that Virginia is protected ~
common law, which, he said. Is the
strongest shield and buckler that any
State can have. The anu-comp2ct
laws of other states, he declared. na~
proven to be defective because they
were said to be IN violation OF some
amendment Or other OF the constitu-
ton of the United States or they ex'
panded so much in spots tnst the
trusts could slip away.
All Eyes on Police Court.
Mr. Stuart declared that the eyes
of the whole Commonwealth and OF
the United States are on the police
court of Newport News today. ms
case is one of the greatest now on
trial in the entire country. he said,
and its result will be far reaching.
He pointed out that as matters now
stand the Trust has the power TO
come down here with a young man,
tape measure and negro on tie
end of it. as they did in Judge Mar
tin Williams town of Pearsburg, and
ra sc the rates three hundred per
cent. They have the power TO raise
the rates at will and il doesn't mat
ter whether or not they use that
power-it's wrong for them to have
it,"
with the power this Trust has It
can reduce rates so low that all COM
petition will be destroyed" continued
the speaker Mr.. Stuart then cited
decis ons of Supreme Courts Of States
and an opinion of Judge William ii.
Taft. now President of the Un1ed
States, to show that even this power
is illegal and that it has been held
so both by the Federal and State
courts in case after csse.
Little Companies Attracted.
The speaker declared that there Is
only one legal monopoly in the United
States and that is the patent moncp
oily. He said that in the case now
on trial there is in reality only one
big insurance company operating and
vet the defense calls itself sixty five
companies. These companies. he SAL,
must and do write ut the rates pro-
muigated by the Trust All little
companies are attracted to the CON-
bination as steel Is 20 a magnet be-
cause there is no competition in rates
and the little companies are on an
equal footing with big companies.
Mr.. Stuart read a brief article on
trust by Prof. Dewey, Of the Mas
sachusetts College OF Technology, %
show that even students as well as
lawyers and jurists and statesmen rec
ognize the need for the control OF the
Trusts. The speaker also read from
the Sherman Antitrust law and citeo
case in the United States court
where the government brought suit TO
dissolve a combination formed in New
Jersey 70 buy up the stock of two
competing trsns-continental railroads
In this case the trust claimed that the
government had no right to interfere
with il as Il was chartered under the
laws OF New Jersey and that its only
as any individual. However. the Unit
ed States Court held that this com
bination had the power by getting
control Of the two roads to destroy
competition between those roads an
that the holding OF such power wss
Illegal
Continuing. the speaker declared
that q would be all right for a single
insurance company to say that the
city had imposed too much tax on "a
and that il would have TO increase
the rates or get out OF business. sew
crai companies could do likewise, be-
cause thc-c nigh; be ether companies
that could write at the old rates and
make money in spite OF the high sax
and thus leave competition. Bowev-
CT. en- ASSOCIATION like the Insurance
Trust has no right 20 get together
and saw that Il viii raise the rate.
becsrse Il controls all Of the rates
and all companies write BY those
rates.
State Must Protect People.
A. this point. Mr. stuart referred
10 the published dispatches from Hos
Springs that the insurance men feitI
that On irdignisy hsd been heapec
spon them. TIE read from the raj
,sad case he cited above and showed
thst IN that case similar -indig
nity~ had been heaped upon ,. PIER
r.n-.l Nr.rran Inmcn I IIII and olhnr