The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-06-12
INSURANCE BILL
aimed AT TRUST
Officials Of District Companies
Greatly Agitated Over the
Johnston Measure.
SOME WILL BE HELPED
Concerns Must Tell Whether They
Are Affiliated with Any Rating
Organizations.

are greatly agitated over the bill which
has been introduced in Congress at the
instance of Commissioner John A. John
ston. providing that before indemnity
companies shall be permitted to engage
in business in the District they shall
satisfy the superintendent of insurance
that they are not members of the So
called trust" and that they are not
animated with rating organizations
The local insurance men are divided
IN their views with respect to the bill,
some declaring that its enactment would
force the insurance companies operating
in the District out of business, and others
maintaining that the public would be
better protected, and that the companies
pursuing policies not in unlawful re-
straint of trade would be uninjured.
The bill was introduced as move
against the possibility of the introduction
OF trust methods into the District. Some
of the insurance men say that at present
methods in restraint of trade apparently
are being practiced in the Capital, and
that the enactment of the measure would
force them out of business.
Would Hurt Companies.
Walter A. Brown. who is in the insur-
ance business at 624 Fourteenth Street
Northwest. believes that the passage of
the bill would virtually drive all of the
indemnity companies out of the city. He
said Yesterday afternoon that during the
past five years insurance rates had be-
come so demoralized in the District as
a result of competitive cutting on the
part of companies that the business had
become an Improbable one. He said that
a number Of the companies had been
forced out of business, that those now
in operation were making practically
nothing, and that many of them were re-
naming in business merely because OF
their long standing and the feeling that
they should continue 20 care for the af-
fairs Of their old Washington patrons
Mr.. Brown stated that similar bill had
been enacted in the State of Missouri and
that as a result practically all of the
insurance men were forced to close their
oft1ces. He advanced the opinion that
similar conditions would obtain here II
the bill was passed.
Il think some general legislation on
the line Of the bill introduced at the in
stance of Commissioner Johnston is nee
essary for the success of the hones'-
dealing companies and for the protection
OF the general public said Philip F
Larner, secretary of the National Union |
Fire Insurance CCGpany. when inter
viewed last night Il don't say that thu
hill as drafted is ideal, but l think that
the public needs something on that order. |
The hill would prevent the operation IN |
the District of companies affiliated with
combinations in restraint Of trade. i
would free the city of companies affilia.-
ed with rating organizations As TO the
present rates. they are greatly demon
SLICED. but it is improbable that the pro
posed legislation would affect that stu
alton directly
Aimed at Combinations.
THE introduction of the bill is but one
af h.
the disbursement of combinations in |
unla restraint of trade said Charles |
F. Carusi, local lawyer and insurance |
man. Whether the bill is commendable |
or not is a question for the independent !
insurance man to answer. Those inte--
ested in companies affiliated with rate
fixing combinations naturally are opposed |
to the measure. whereas the 'independ- |
ents' are heartily in favor Of it, The !
enactment of the bill in the District !
undoubtedly would affect some companies. |
hut | do not think it would force all of |
them out of business. As TO whether
there are companies in the District ap-
parently affiliated with powerfl comb
nations. ] am rather loath TO state. but /
I might say that some of us insurance
men have our suspicious
In Missouri law has been enacted |
somewhat similar to the one proposed
10y Commissioner Johnston. and it is true
mat ITS enforcement has put good |
many companies out of business The
companies allied with the so-called |
trust have been compelled to close their
doors. whereas the independents have
prOftod considerably. Personally I am
on the side of the independent. and would
possibly profit by the enactment of
measure here
John 3. Larner. who is a director of
several local insurance companies. and is /
greatly interested in the situation here,
said last night that Commissioner John
ston's bill is far-reaching one, and that
II is Impossible to forecast its effects
upon the Washington insurance COM
panies
THE outcome is hard to predict" he
said THE situation here at present is
pretty well complicated. There are very
few local companies in operation. Most
of them are outsiders. I have reason to
believe that most of these outside COM
panies are affiliated with rating organi-
cations. It is possible that they would
be effected by the proposed legislation"
Secretary Bryan to Discuss Slums.
The forces of the alley crusaders have
been strengthened by the enlistment Of
I