The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1910-06-17
HOPES TO LOWER
RATES IN INDIANA
Attorney General Explains Pur'
pose OF Risk Suit.
UNION" RULES HIS WEAPON
Trying to- Connect Their Operation
With Rate Organizations Main
tanned or Eneouraged-seeks
10 Break Up Combine.

indianapolis Bingham. at
torney general. says he has hopes that
one OF the results OF his suit against
the fire insurance companies. which is
on trial in superior court. room 4. will
be lower insurance rates throughout
Indiana. lie says If he can break up
the fire insurance combine II Will
open up the fire insurance business
IN Indiana on fair competitive basis
which will produce fair profits for the
insurance companies and at the same
time reduce the cost to the insured
The main purpose OF this suit is TO
break up the fire insurance combine
which for years has been in control
Of the whole insurance situation"
said Mr.. Bingham. Il have charged
in this suit that there is such com
bination among the companies. A
large number OF them are members
Of the Western Union OF Underwriters.
better known AS the union. The
state agents OF these union companies
are members OF what is known as the
Indiana Association of Fire Under
writer's. The state agents Of the non
union companies belong to what is
called the Indiana League OF Fire Tn
derwriters Then in each city in the
state the local agents are organized
into local boards. In this manner the
close combination IS maintained
The union companies maintain an
.l.t
state This bureau inspects all the
insurable property in the state and
all the companies accept the report
Of that bureau and apply to it the uni
form schedule OF rates which the
union follows
The I29 insurance companies
named as defendants in this suit do
Practically All the fire insurance bust.
ness that is done in Indiana. and all
d them accept the inspections made
by the inspection bureau and write in
surance AZ uniform rates. The union
companies do this because they are
combined for that purpose. and the
nonunion companies do IL because
they are forced 10 follow the lead OF
the union companies.
Here is the situation. The local
agents throughout the state are com
PEELED TO bow TO the combine II an
insurance company comes into Indiana
and undertakes TO write insurance at
a rate other than the rate established
BY the combine Il is put out Of bust
ness. II cannot get agents to repre-
sent # II II appoints a brand new
agent one that has no established .
business. he has a hard time 10 get
business. II il appoints an agent that
represents also some OF the union
companies the special agents for the
union companies call on him and in
form him that unless he gives up
the agency for the independent COM
nany they will take their agencies
away from him. thus leaving him
without any business or income. II
an agent asserts independence and
refuses to accept the dictates of the
comb ne a rate war follows. as IL did
in Blunton Rates are slashed and
cut until the independent agent is
driven ont Of business or until he
decides 10 Join the combine The
same thing happened in Muncie and
in other cities Of the state. When
the union has forced an independent
agent TO join the union it requires hip
TO sign an agreement that he will not
cut rates. and that he will not repre-
sent any company that writes bust
ness at other than union rates The
combine retains the right 10 fine any
agent that violates this agreement"