The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-21
Say Decision Paves Way for
Government Prices on
All Commodities.
EVEN THE WAGES OF LABOR
Dissenting Opinion Is That
Price Fixing Is Owners
Sole Right.

WASHINGTON, April ZO.-The supreme
Court handed down a decision to-day
which three Of the courts members, in
Guiding the Chief Justice. characterized as
the opening wedge to the assertion Of the
right TO fix by legislative action the price
Of all commodities. including labor. The
decision by Justice .cKenna upho,ds the
. validity Of a statute Of the State OF Kan
sas regulating the rates Of fire insurance
Lawyers who heard the opinion regarded
1t as one Of the most important and far
reaching in It's possible consequences to
business that has been handed down since
the courts epoch making decisions in the
antitrust cases.
The decision. It WAS pointed out, is
bound to add strength to the agitation in
favor of legislation fixing a minimum
wage and also legislation to give price
liking powers to Government commissions.
Justice Mckenna in the majority opin-
ion declared that the test to be applied in
reaching a conclusion as to the constitu-
uonal,y Of the Kansas statute was:
"Is the business so far affected with a
public interest as to justify legislative reg
ulstion of its rates? And We mean a
broad and definite public interest,"
New York statute Cited.
The Justice reviewed the acts Of many
State Legislatures regulating insurance.
notably the New York statute OF 1883 and
the Massachusetts, statute OF 1887 regu-
,ating unearned premiums.
"The state" said he. has stepped in
and imposed conditions upon the compa-
mes restraining the absolute liberty which
strictly private companies are permitted
TO exercise"
These are based on the interest. the
Justice said which the public had in the
solvency of these companies, which would
/ greatly affect the wealth OF the country.
We have shown that the business of
insurance has very definite characters
les" said Justice McKenna. within the
reach Of influences and consequences be-
yond and different from those OF ordinary
business OF the commercial world. to pur-
SUE which greater liberty might be as
serted
He pointed out that the price of in
surance WAS not fixed over the counter.
but in the councils OF the underwriters
promulgated in schedules of practically
controlling constancy which the applicant
Tor Insurance is powerless to oppose.
Nowhere in the majority opinion. how
ever was there asserted a right to fix
Prices In the ordinary acceptance OF the
terms. The majority OF the court upheld
the Kansas law solely upon the peculiar
Character of the insurance business, which
made It so closely related to the public
welfare
ihe Title OF the case was that OF Ger
man Alliance Insurance Company versus
he Lewis. Superintendent Of Insurance
OF the State of Kansas. The insurance
company is New York corporation. in
corporated in 1873
7educed Kansas Rate ~ Per Cest.
Under the Kansas statute the Superin-
"hdent reduced the rate Tor fire insur-
snce about l. per cent. The law author
'ed the raising or lowering of rates SO
'ohs as the changes were reasonable.
In dissenting Justice Lamar. speaking
'or himself tho Chief Justice and Justice
van Deyanter said
Insurance is not production, nor manu-
'actlre, nor transportation, nor mer-
"dhdlse Tho fact that insurance II
Nle'y private and personal contract Of
'suehfi'y puts It on the extreme outside
''m ana removes 1t as far as any busine
'"h De from those that are In their nature
p1ole' so that II the price OF q private
wa personal contract OF indemnity can
regulated. II the price Of a choice In
"ouoh can be fixed, then the price Of
"erything within the circle Of its trans
'cuons ca he regulated
CONSIDERING, therefore, the nature Of
",e subject treated and the reason oil
'n''h the courts opinion Ii based. II Ia
'"laent that the decision 10 not a mere
."'e'lng wedge but reaches the end from
peeinning and announces the principle
'"ch points inevitably to the conc ion
.''' me price of every article sold and
VIC price of every service offered can be
esuited by statute"
justice Lamar quoted from Cooley or
institutional limitations to show while
" 'no cary days OF the Colonies prices
e HNea by law. since the Declaration
jurisprudence "t has been commonly
opposed that the general power In the
l@'e TO regulate prices was inconsisten,
''.n constitutional liberty"
me Constitution. II was said. not only
osHSed the right Of private contract tc
s"rs property but the right to nx tho
~ o' It's use and OF It's sale.
20 deprive any person OF either" SAID
""oe Lamar. "is to take his property
.'cs there can be no liberty Of CONTRACT
poht OF ownership II the price Of It,
V' rs sale Is fixed by law. That righ
we attribute OF ownership"