Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-26
STATE ASKS TRANSFER
SEEKS TO HAVE CASUALTY IN.
suRANce QUIT HEARD IN
POLK COUNTY.
RAISES ENTIRE QUESTION
or RIGHT OF MuTUALs
General Laws Permit Mutua's to
Prorats Losses, New Corporation
Measures Doss -old-Lins Com.
pan;s. Making Fight Against Permit
iasued 70 Mutual.


paniss Making Fight Asainst Permit
issusd 70 Mskual.
Special to Times Republican.
Des MONIES, Aug. 2e.-The state has
asked that the suit involving the right
of mutual companies to engage in cas-
ualty insurance under the Iowa work
mems compensation law be transferred
from Mahaska county to Polk county.
It Is 4 suit against q state official and
all such suits must be brought in the
jurisdiction at the place Of office OF
the defendant. The suit Is against
State Auditor Bleakly. as state In
surance commissioner.
Tho suit IL one which raises the en-
tire question OF the right OF the state
to permit casualty insurance to be
written by a company organized under
the Iowa laws for mutuals. 1t Is
claimed that while the Employers Ma
tional Liability Company Of Des
Moines Is organized as q mutual 1t Is
in fact issuing policies that only a
stock company can issue. It Is pro-
vided under the Iowa laws that every
mutual company may prorate loss
and pay only what it has the money TO
pay with: yet under the workman
compensation law there can be no pro-
rating but every loss must be paid IN
full and Immediately. The question
is whether or not the two things can
be made to harmonic.
state Auditor Bleakly recognized the
legality Of the company in question.
1t made what seems to be ample pro-
vision for meeting all losses In full
without any prorating. The scheme
was attacked by representatives OF
old line or stock companies who are
seeking to compel the state auditor, or
insurance commissioner. to cancel the
permit to the company. The state de-
tends. The questions at issue are
purely legal in nature and may De
fought out in one court as well as
another, but there could be no excuse
for compelling state official to go to
a, distant part Of the state when the
proper place Is in the court nearest
to his office.
Judge J. II. Henderson has just COM
pleted and filed with the interstate
commerce commission the formal petit.
ton for the reopening Of the interior
Iowa rate case, in accordance with the
agreement announced at the time OF
the conference held with the Iowa rail-
road commission about six weeks ago.
The move to reopen was he'd back to
await the decision in the eastern per
cent advanced rate case.
II, The allegations in the petition show
that the state has q very strong case
before the commission, and Will be able
TO demonstrate that when the case was
closed before the railroads utterly
failed to file schedule OF rates that
accorded with the principles laid down
in the decision. Some features OF the
decision were fulfilled, but the most i'm
portant thing, that Of removal Of dis
made even worse.
The case is not one Of a controversy
between the interior and river cities OK
the state. tho the comparison is be-
tween them as groups. but 1t involves
general discrimination against Iowa.
This general discrimination against
Iowa, with takes the form Of building
a commercial wall about the state and
maintaining 1t there without reason is
the thing which the commission and
the business men have been fighting
against many years.
Briefly the petition sets forth that
under the new rates OF the carriers the
discrimination against interior Iowa
cities as compared with those on the
Mississippi river has been materially
Increased. as also the discrimination
against them in favor Of the big east
ern cities.
For instance, shipment Of boots
snd shoes from Boston and jobbed to
Charlton had an advantage Of 1915
cents when handled thru Burlington
over the handling thru Ottumwa; but
now this discrimination is increased to
1872 cents. A shipment thru Daven-
port or Rock island had an advantage
of IL cents over jobbing thru Des
Moines: but now has an advantage of 6
cents. Compared with Clinton, Cedar
cents per hundred pounds and Mar
tage Is ~ cents against both the
cities named.
But also, there has been retention
0T luCEC0S0 OA luS O1SCC1Nl1UdLlOH
against the cities Of Iowa as compared
with direct shipments. or jobbing. from
Boston and New York, to Salt Lake
City, Denver and other western places.
II is also declared that the rates are
excessive and unfair because they, in
many instances. exceed the sum Of the
LOCALS which II forbidden.
The intention Of the interstate COM
merce commiesion was evidently to
have all these kinks Strengthened out
when the case was decided before, for
in that decision the rates were filed,
supposedly in according with the de-
cision, It was found they had made
matters worse in regard to the things
herein suggested. 1t Is believed not
much effort will be needed to convince
the commission the rates must be re-
vised.
Officers Of the currency association
formed for Iowa have agreed to the
change in the articles Of incorporation
as required, by the authorities at
Washington with much reluctance In
fact it has been a question whether
they would permit the change to be
made. They planned to have an as
ISOLATION that would include only
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