The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-02-12
ITS NOT A TRUST.
Judge Dana UphOlds Eldredge
Rating Bureau.
Insurance Companies May Adopt
the Uniform Rates.
CASE HARD FOUGHT.
Attorney General Charged Vic.
latiOns of Farrelley Act.
Antitrust Law Not Repealed
by Insurance Act.

Judge Dana in the Shawne district
court handed down a decision today
finding that the 70 fire insurance COM
panies sought to be enjoined from busi-
ness in Kansas for violation of the
antitrust law by Attorney General
jackson, are not in a combination or
trust by their use of the rates furnish
ed by the Eldridge bureau.
In announcing his decision Judge
Dana outlined the case into three ques-
tions to be answered.
First-Was the question whether the
Kansas insurance law of 1909
repealed the old Farrelley antitrust
reepaled the old Farrelley antitrust
law as contended by the companies
counsel. II do not think the conten
tion we'll TAKEN" said the judge. In
the opening of the injunction suit,
which had been filed so long ago as
1907 on December y last, the COM
panies Immediately raised the objec-
ton that the creation of the insurance
commissioners office and his dictatlon
of rates, virtually threw them into
trust in obeying his orders, and furth-
ermore that the law compelling them TO
file with him their rates for insurance
virtually repealed the old antitrust
law which prohibited them from fixing
mutual rates.
Second-Was the question whether
the suit was res adjudicata because of
a former suit against the same de-
fendant companies in 1903 by Galen
Nichols, Shawnee county attorney, on
the same grounds resulting in a judg-
ment for the companies by Judge Ha-
zen. "In regard to the judgment here
, tofore rendered in Shawnee county in
the suit brought by the county attorney
wherein these same companies were the
defendants, and the contention that that
judgment constitutes res adjudicata, /
do not think the point well taken" con-
tinued Judge Dana THAT was largely
matter for Shawnee county and does
not apply properly to the principle now
involved"
Third-"Does the evidence in the
case show a combination existing
among the companies? The court Is
of the opinion that it does not. Judg-
ment, therefore will hold for the de-
fendents in the case"
Battle Hard Fought.
The suit was long and hard fought
for the state and conducted personally
by Attorney General Jackson. A host
of legal talent opposed him. The ev1-
dence of the state was based entirely
upon the use OF the Eldridge rates by
the insurance companies. These rates
according to the testimony of the de-
fense are compiled by expert inspec-
tors under Charles E. Eldridge, whose
offices are in the Shawnee Fire build
ing. IL was Ll0 SlduQ VI Tie COulpoHlCS
that these carefully compiled rates were
published in booklets and circulars
from time to time and issued to the
companies who subscribed for them as
for any other paper or magazine.
The company agents over the state
on the stand denied that they had any
orders to observe the Eldridge rate
without deviation, and denied that
there was any agreement whatsoever
between companies or agents that they
should stick 20 the uniform rate The
rates were used they insisted, merely
as the most accurate computation of the
risks involved that were ootainable and
hence the only safe rates to use.
1t was the custom of Eldridge to
send the companies at intervals,
the findings of his inspectors in va
rious localities concerning the water
system and fire protection afforded,
the condition of electric wiring, and
such material matters in fire insur-
ance. Often rates for localities were
changed either up or down upon this
| information.
In reply to the allegation of the
state that there was no competition
/ whatever among the companies sew
! eral witnesses testified that they had