The Birmingham age-herald., 1915-05-20
Senator Judge Says Con- stant Increases Make
 Action Necessary
CREATE ANOTHER DEPARTMENT AND
 LET TT FIX RATES
Senator Says This Step Has Been Taken in Other States, and Has Been Declared
 Constitutional

The Southeastern Tariff association, bitrary power to increase the rate of Bir- mngham fire insurance, will. in all prob ability. receive the attention of the leg islature in July.
 Sometime ago, as is remembered Sen ator Frank S. White. testifying before the legislative recess committee on finance and taxation. declared that a B rate at tached a building of his was decreased to 80 cents on his threat to take the case in question to the legislature. He urged the members of the committee to put an end to the alleged arbitrary power of the as- sociation.
 The declaration of R. A. Brown before the city commissioners Tuesday, to the effect that unless certain conditions were met, the local rate would be increased 25 per cent. has again brought the subject of the association prominently before the people. Yesterday, Senator Thomas J. Judge declared that in the event the statement of MT. Brown, which he con- strued as tantamount to a threat. was borne out in fact, he would introduce a Dlll SlNlnS d1 lnSufdHte coiHiHlSsioh thS right to fix rates in Alabama. In Line With Other States
 "The legislature, in all probability" said Senator Judge, will create department of insurance. It would be easy to give this department the right to fix insur- ance rates in the state of Alabama. Some states have already taken such action, 1f T,it tad States has sustained the constitution ality of the statutes in question.
 Tt is generally understood that the Southeastern Tariff association has as it's members many of the biggest insur- ance companies of America. There is a general understanding, too, that the as- sociation threatens to withdraw from any state wherein attempts at regulation are made The situation, therefore, resolves | itself into one in which either the state or the association must be master. Up to the present time, the association has held the whip hand and has not failed vigor- ousy to apply the lash.
 | Should the association, because of any future attempt to regulate the insurance business in respect to rates, withdraw from the state there might be reason to term it a trust combination in re- straint of trade. At any rate, stua- ton would have been precipitated worthy of. the attention of the federal govern ment
 Rates Increased Periodically
 "The association, stated. has had it's way in Alabama. Periodically Birming- ham rates have been increased. The peo- pie have registered feeble kicks, but nothing has been gained thereby.
 Prior to 1911 there was a provision in the code which required any company, a member of the association, which delayed the payment of loss longer than 60 days to add 25 per cent of the amount of the 1 policy. .~In 1911. however, that section of l the code was emasculated.
 l With all it's past successes the associa- 1 tion is not satisfied, and threatens now. 1t seems. another increase of 25 per cent no criticism can be applied to our fire | city authorities for delay in the enact | ton.
 | " Thy will be done was not written 1 for the Southeastern Tariff association, and the time for battle is fast approach Hng. If this new threat is carried out there will be introduced into the legisla- I ture in July a bill giving an insurance commission the right to fix rates in this state"