The Columbus dispatch. (Columbus, Miss.) 19??-1922, 1920-12-19
FIRE INSURANCE
SITUATION ACUTE
Companies Are Threatening To
Withdraw From State.-Ac-
ton Felt in Columbus.

Columbus got a touch of the eff
feet of the action of the revenue
agent against the fire insurance COM
panies of Mississippi which was re-
Gently instituted.
One Columbus agency yesterday
got telegram from his company
withdrawing from the field, and in
structing him not to issue any more
insurance, and restrictive orders
came promptly from other companies.
Fire insurance is the basis of all
credit, mortgages are protected by
it, time purchases on machinery and
all types of collateral are sustained
by fire protection policies and the
proposed action against the companies
is threatening most disasterous ef-
feet in the State.
Following is a special clipped from
the Jackson Daily News which gives
an Illuminating exposition of the
whole matter:
State Insurance Commissioner I.
M. Henry is making earnest appeals
to the fire insurance companies do
ing business in Mississippi not TO
withdraw from the state on account
of the billion-dollar antitrust suit
filed against them by Stokes v.
Robertson, state insurance agent.
Attorneys and other officers of
the defendant companies reached
jackson today to make a survey Of
the situation, and their decision on
the question Of withdrawal is ex-
pected before the close of the week.
The writs Of galnishment served
on local agents OF the insurance
companies means that premium
money totaling about $6,500,O00 will
be tied up in the court within the
next year, or while the antitrust
suit is pending. This will force the
companies to draw funds from home
offices or other states in order to
pay losses incurred, and insurance
men say that their companies will
be unable to do this, in view of the
Is unsettled business conditions in the
country. gns \
Commissioner Henry's appeal to
the companies to continue business
in the state is based chiefly Gu the
ground that withdrawal at this time
would be nothing short Of disas-
ter, crippling nearly every form OF
business.
Henry Opposes Suit.
Frankly, | am not in sympathy
with the suit, and was not consult
ed before it was filed" said Com
missioner Henry this morning.
"The fire insurance companies
have been doing in Mississippi merely
what is authorized by law in many OF
the most progressive states in the
Union.
"They have been buying from a
central agency or organization known
as the Mississippi Advisory Rating
and Inspection Bureau, information
concerning hazards and conditions In
the various cities and towns, and use
this Information as basis for the
rates charged.
"Other states have enacted stat
utes legalizing the purchase of this
information. Unfortunately, Missis-
sippi has not done So"
More Than A Billion
Since the original bill of COM
plant was filed in the Kinds coun-
ty chancery court the names OF a
large number of additional compa-
MES have been added.
This brings the total Of penalties
claimed to much more than billion
dollars. In fact, rough calcula-
ton shows that the total is close to
one and one-half billion dollars. II
is almost impossible at this time tc
figure the exact amount, owing u
the fact that some of the companies
have not been operating in the state
for the full period on which the reve
nue. seeks to collect the statutor.
penalty of s1,OOO,OoO per day. TIL
average penalty sought against eacl
company that has been operating TO
the full period is about $16,000,OOC
Plays For High Stakes.
The statutes allow the revenu
agent twenty per cent commits
sion cn all penalties collected by hi
office.
AS compared with this suit agains
the insurance companies the famou
back tax suit of the late Writ Adams
state revenue agent, against the I'LL
nois Central and Y. and M. V. road
with the proceeds of which the Me-
Capitol was built, was mere pike
proceeding.
No charge for a box with a man
fie at Ioeb'g.