Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1914-02-21
9O-DAY AGREEMENT TO STAND
ATTORNEY GENERAL DECLINES
TO INTERFERE IN
Workmen's Compensation insurance
Rate-Mandamus Is Threatened.
Mitchell Tenders Resignation.

Austin. Tex. - Attorney General
Looney declined TO interfere in any
way with the uincty-day agreement n
effect relative 10 the application Of
the workmen's compensation insur-
aHce rates in Texas
lie announced his decision at the
end of 4 comparatively bricf heafiHe
held Thursday whereat the matter
was discussed by Homer r. MITCHELL
general manager Of the Texas EN-
pioyers Insurance Association, Jud-a
J.. ID. Gavin of Galveston, and J. r.
Suggs Of Denison, attorneys for the
indemnity companies. J. +. Seinsheim-
or of Galveston, underwriting man
aser of the American Indemnity Com
pany, and w W. Collier, commission
er of insurance and banking, also As
sistant Attorney General Luther
NickeIs.
Mr.. Mitchell stated that his board
of directors was going to ignore the
ninety-day agreement and institute
mandamus proceedings to compel the
insurance commissioner to approve
the orisiual rates offered by the as
ISOLATION, which We're 40 per cent un-
der the company rates. He also in
sisted hat the agreement was 10 give
time t. procure experience showing
the adequacy or iuadcquacy of the
rates, and that hn wanted the att0r-
ney general and the courts TO rule
has discretionary or ministerial pow
er; that the association believes that
the law vests the commissioner with
ministerial power only, and that he
must approve rates filed by the asso-
citation.
Attorney General Looney refused to
discuss that legal question, saying the
time had not come for it and that, in
his opinion, the ninety-day agree
ment was binding and was a good
thing in order that the experience
might be gathered; that the commits
sioner deemed it necessary. He also
said that. inasmuch as Mr. Mitchell
was a party to the ninety-day agree
ment and had submitted the rates now
in effect, to expire April 10, he had
no grounds for a mandamus in the
supreme court before April 10 1t was
then that Mr.. Mitchell stated that
his action in signing the agreement
would not be upheld by the directors
but that they would repudiate it and
take steps to have the courts deter
mine the commissioners powers so
that permanent basis could be es-
tablished as soon as possible.
During the course of the discussion
Mr.. Mitchell asserted, in response to
a question by Mr.. Looney, that the
failure of the Texas association to
begin writing insurance was due TO
the unstable and unsettled conditions
of its rates brought about by the
agreement in force. He declared that
many subscribers had Indicated their
intention of becoming members but
could not wait until all matters were
adjusted and that as a result there
had not been at any one time 4 suf-
ficient number of members and en-
plOyes to begin operation. The law
requires fifty employers or over with
not less than 1000 employees.
Homer r. Mitchell Thursday wired
his resignation to John H. Radford
of Houston, president of the board of
directors of the Texas Employers In
surance Association. Mr.. Mitchell
seeks to retire as general manager
of the association.