Daily press. [volume] (Newport News, Va.) 1896-current, 1910-11-15
OTHER PEOPLE HAVING TRoU-
BILE WITH INSURANCE
COMBINE.


Newnort News citizens are not the
only people having trouble with
combination of insurance companies,
and the law OF Virginia is not the
only law being invoked to protect
insurers from excessive rates result
ing from the elimination OF compeu-
ton. Up in Pittsburg, Pa, Edward
C. 'roie, a well known citizen, has
brought suit against the Allegheny
County Board OF Fire Underwriters,
compris ing the representatives OF all,
or practically all. of the fro iasGr-
anco companies doing business in
Pittsburg. MIR TOTE asks for an ir-
junction stIaining the board from
expelllng members who do business
with outside agents, and aGk5 that
the board be estopped from forcing
agents TO cancel policies submitted
by "frce-lance" agents. A press re-
port on the proceedings says mat If
this injunction is granted II means
the dissolution of the board, for only
by enforcing these rules has II pre-
vented a rate war. Rates could be
cut in two and agents would still
make profits in writing insurance
here"
Fro.a the account, II seems that
TOTE had placed $4,000 worth of in
surance with certain firms at lower
rates than those prescribed by the
combine, and when these firms were
threatened with fines and expulsion
by the board, the policies We're can
celled. TOTE, in discussing his claim
that the combine is forcing excessive
rates upon the people of Pittsburg.
said that the risk on which 10 cents
for Si00 insurance would be charged
in New York, would be so rated in
Pittsburg as 10 make the charge 30
cents for 800 n Pittsburg. He said
the rates in Pittsburg are higher on
the average than in Philadelphia, al
though the average risk in Pitts burg
is the more desirable.
The press account goes on to say
1t is reported that the combine isl
making an effort to compromise with
Toie. but that even though such a
compromise is effected il will not end
the fight. a. the Chamber OF Com
merce is preparing TO bring suit
against the combination. and leading
individual citizens are prepared to-
take the movement up il necessary.
All OF this is peculiarly interesting
to the Newport News public, because
IL shows that We are not the only
people who are troubled by an in
surance combine and that We are not
the only people seeking,a remedy at
law.
Experience the country over. we
believe. is proving that !; is essential
that State governments take a hand
in the FIRE insurance business. One
Of two things must be done. Rates
may be kept down by free competi-
ton. But insurance men argue. and
possibly with much truth. that unre-
strscted competition in the FIRE insur-
snce business would be a niet,ace 20
the insurance companies themselves
and, therefore. 10 the insrring puO-
lie. II this be true. then there Il but
one thing TO be done-the State leg
islaturcs must regulate rates FOR q =
insurance. II II IS necessary for the
safety Of the companies and the pub
lsc 10 permit combinations which
eliminate competition and pat into
the companies hands the power to
make the insurance burden just -
heavy ss the public pocket-hook viii
stand. legislators must face the issue.
They must enact measures permitting
the combination or combinations. and
recognizing that men engaged In the
insurance business are human and
that II H. human nature 70 use s8ch
power a. may be posse sed to further
persoral ends. must restrict tho uss
81 the rase.makine 7ores.
Whatever may be the outcome o.