The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-11-16
HITS RATING LAW
Foreign Decision Will AffecC
Regulation in State
Briefs in Kansas Case TO 10
Judge Pollock SoOn'
SITUATION is SIMILAR
UnconstitutiOnality OF Nebraska
Statute Has Bearing.
If Holding Is Upheld Local Con-
tentiOn Is in Error.
SITUATION is SIMILAH L

7r,Dor+ant bearing on the Kansas
.o+ir,, case is found in the IeueI"l
court ruling Of Judge Munger OIL tiie
ITri+ed States circuit court IN MS
oisior holding the Nebraska surety
,.o+irg law unconstitutional. In seNeral
--+a+as the decision will have an I'M
,,or+ant hearing on the state hre III
s,,ranca rating schemes which are De-
ing considered. +La com
,anies are testing the Kansas law liIo @
first +o be enacted, and their oTieL9 a. =
- he submitted to Judge Polloch u
tbe federal court soon. II IS con -
+ba+ c+ates can regulate the rates
1I ne +I,ose businesses which are I'M
Yrassad with the public interest," 5 anu
tbo+ fire insurance is not imp re9seu u
lei +ba+ interest to a degree IndhlilS ;
state regulation of rates pos9lDlo -
Nebraska surety decision Is po9o -
similar grounds and so WIN "a o+1,N
direct bearing on the htIiis''S anu
er cases. 1oOo 0ro-
,7idinp for a state board to hA the
fidelity and surety premiums CoiH 80
ed of the governor, the atIorHeS Ttla
eraI and the auditor OF state
American Surety company pe6"i 80 p
raAdings in the United states - ciICu-
roDrt 10 Obtain a temporary lnJuHC-
Hon restraining the state oflcldls II ~, oll
enforcing the provisions OF the i"'s %
Depding the decision OF the CouII % %
10 its constitutionality. Judge NUN MulSe sSI eL
holds that the fixing of the price lol
s,1ratv Dremfnms or any other lnsur.
apca rates is not within the power VI
he state. any more than the hXlng
Of the price of any commodllV Woulu
he and that an effort to do so IS a
violation of the fourteenth amendment
20 the federal constitution
Has state Power to Fix Rates?
Judge Munger said that the r@eal @
controversy was over the power OF the
state to fix the rates to be charged TOT
Insurance, and laid down the PROPOSE
tiOn that the state could regulate the
charges for only those businesses Whlch
were affected by only public interest,",
Such businesses were those which haq
a practical monopoly and consequent
power to levy tribute on the conmuh-
ty, a relation to the business or trans
portation or to the business OF common
carrier. Surety companies have none
of these characteristics being in no way
a monopoly and the public interest II
the business being not different thar
in the business of any large mercantlie
or manufacturing industry with a wide
" extended patronage. After citing
large number of cases the court grall L
ed the injunction asked for by the
American Surety company.
As 1t Affects Kansas.
In Kansas the contention is that the
superintendent of insurance and the
legislature has the right to regulate
rates and make reductions when they
are deemed necessary. Since the last
legislature the superintendent of insur-
ance has ordered a 1212 per cent de-
crease on commercial risks and this or
der has been obeyed by the insurance
companies. If the Nebraska decision is
upheld the contention in this state
would be in error.