The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-02-09
g n s iss Is x
COMMIT Sees
NO DAIll6HT YET.
-~---~---..----.~
= 1aalnD BILL 10 sUsr INsURAScr
rnUSr NOW UNDER CON-
sIDERAriON.
MORE HEARINGS YET
GEORGE NELns WISE. OF NEW.
PORr NEWS, PRofFERs AN.
OTHER SUBSTITUTE
MEASURE.

With three bills, before II, all aimed
at the alleged Insurance trust. but
proposing different methods, the Sem
ate Committee on Insurance and
Banking II further from a report than
ever The Holt bill, first considered.
was dropped for substitute offered
by c. G. Berkeiep, Commonweaith's
attorney OF Newport News, which. in
turn, gave way before bill proposed
yesterday by George Nelms Wise for
the Newport News Chamber of Com
merce; AT third hearing to be
given next week opponents OF all the
ollls will be heard.
both Mr.. Wise and Mr. Berkeley,
spoke yesterday. Mr.. Wise descraeed
events ieauyng up to the arrest of
members OF tna southeastern Tariu
Association al hot springs. Va, ami
their subsequent trial anu consiction
IN the Newport News Police Court.
The decision Of the Police court was
upheld by the Corporation Court, hut
only last week the state supreme
Court OF Appeals set aside the YER
dict on the grounds that there is MOTH
ing In the common law To prevent a
comolnauOn In insurance.
Mr. Wise told how. the city Of
Newport News spent money to i'm
prove its fire department and felt it
had right to raise the tax on insur-
ance companies; how when the tax
was raised the companies retaliated
by boosting the rates. although IRE
conditions had never been better.
Presents Resolution.
Mr.. Wise presented set OF reso-
lutions he asked the committee to
adopt even II II did not report favor
ably the bill he offered. The resoiu-
lions asked that some sort OF law be
paused to prevent combinations to Ak
insurance rates. no matter how it be
gone about
If you pass a law" said Mr.. Wise.
keeping the big companies from en-
croaching upon the smaller ones. L
am sure the insura nee question will
take care OF Itself The smaller
companies II they refuse to be dragged
into the Southeastern Tariff Associa-
ton cannot get renewals. Make law
% that competition Is bound to re-
suit.
The Wharton law should not be re-
yived. We need better law than
that II does not At conditions. As
II was before It was no good. In
surance men are all right and most
of them are good fellows and honest.
But an inzurance company has no
moral obligation. No matter how hon.
est its ottcials are the company it.
self has no moral tone.
To Prevent fixing Rates.
"A law to prevent them from or
gAnlxlng n not what "a wanted. They
are already In combination. Our
law We ask enacted will prevent the
organization from fixing prohibitory
rates. 1t will allow them to organize,
but will make them orgnize in line
with the bylaws Of the southeastern
Tariff Association. The companies are
not organized now to tix rates, but
they do 1t all the same. We do not
object to their organizing for q good
purpose
Mr.. Wise pointed to the decision Of
the Supreme Court to show that the
common law 10 not sufficient That
there was q combination, he declared,
he was sure there could be no doubt
Mr.. Berkeley. who NJ Common
wealth'4 attorney. prosecuted the in
surRncc cases ut Newport News. fol-
lowed much the line Of reasoning in
a previous appearance before the COM
mittee. In reply to an insurance man
present, who declared there II no
trust. he said he could not see why
then they objected to . statute II
there was NO combination and II none
was contemplated. II they did not
intend. he said. to fix rates Illegally
there could be no collection In the
world TO statute prohibiting such
move.