The Jones County news., 1921-07-14
REVIEW OF COURT
In INSURANCE CASE
Gistof Alleged Facts Brought
Out in Anti Trust
Suit.

MIR. A. l.. Smith, an attorney and
anu former insurance agent OF Holly
Springs, Mississippi was placed on
The stand identified certain books as
being the book OF rates made by the
Southwestern tariff association and
attend that books exactly like these 10
every detail of bidding, color, siSe and
subject matter we're furnished him by
the Mississippi Inspection and Rating
Company and that he had written al
business by these books. On cross ex-
animation MIR. Smith admitted that
during his fourteen years In business
during which he had written probably
ten thousand policies he had proba bly,
cut rates on about dozen policies.
The disposition OF Mr., Becker, an
agent of Brookhsyen, showed that he
had business many years and had a.
ways abided by the rates of the Rating
Company, had never cut rate.
Mr. A. A. Welle of Vicksburg, the
Manager and owner of 81 per cent of
the stock OF the Vicksburg Rating
Company took the stand June 18th
and finished his testimony June 23rd.
During that time he II aced the history
OF the Advisory Rating Company from
its organization to the present date BY
bis testimony the Revenue Agent
proved that this Rating Company was
org anized In 1903 with four stockhold-
ers and directors, r. Q. McLanrin at
t)rney for the companies being one;
that the comp panies would not subscribe
for his rates because they thought
they would violate the anti trdst lave
of Mississippi by so doing: that he OBJ
talned and opinion from the Attorney
General that his Company could OPP
crate and fire companies could sub
scribe Tor its rates 1t they did net
combise by express or implied agree
ment to use these rates; t,at thereup
on the fire companies sub scsibed lor
the rate; that the rating compsny had
never made a basis rate but had adopt
cd the rate book OF the Southeast
ern Tariff Associa alton, an assocl alton
composed Of 'Htbe principal invurnnce
companies dong businsss ID the Unit
ed states" He identified the book
testified by Mr. Smith as being the
Southeastern Tariff Association Rate
Book which he had adopted aud used
from lp0S to 1910, bat stated that he
had stamped on the flyleaf q legend
retaining title in the book and stating
that the rates we're "a6 visory.' he
fnther testified that he had cut from
the books which he had sent out Q00O
In number) ruls at the bottom of page
q which provided a drastic penalty
for any agent varying from the rates
and rules set forth in this book. He
gave list of his employees and the
duty OF each. He futher stated thai
the first two rate men whom he em--
ployed we're former employees OF the
Southeastern Tariff Association.
The Court stenographer states that
Mr.. Weille's Testimony Will probably
cover six hundred pages. Chancellor
Etric,lor questioned the witness for
about hslf an hour at the conclusion
OF bis examination by the ATTORNEYS,
In order to clear up some points refer
red to In the testimony.
The last witness introduced before
recess was Mr.. A. Johnston, now a
member OF and formerly President oi
the Board OF Supervisors OF Clarke
County. He stated that when the new
court house was completed in 1914 the
board signiiced its inten tion to ask
for bids for insurance. An agent, Mr.
Terrell OF Quitman, told them tha
there was no use In advestising thai
al ageats wrote at the same rate
that the Board advertised fer bids
anyway; that a Mr.. Graves OF Pachuts
was the lowest bidder and that Mr.
Tcrral in the presence of the Boart
told Mr.. Graves 81 will have you
policies Cancelled" and that befor'
the next meeting OF the Board til,
clerk received notice from the com
panies cancelllng the policies; tba
another agent then told The Board ths
he would write the insurance at tn
rate Mr.. Graves had writ. en- 1t at II th
board would keep it secret and no
ri the names OF the companies writ
ing 1t and would prem't the agent /
retain the policies at bis office in Ma
ridian; tina. the sboard agreed to thi
and the agent kept the business can
the policies" until 1919; that Mr
Graves again asked for the bushes
add wrote itat the same lower rate O
condition that the board would nc
dis lose the names of the companie
writing 1t. He stated that Mr.. Grave
assured the board tnat If the name
of the comp anies we're known the pol
cies would surely be cancelled.
1t is understood that the revenu
agent has three or four hundred page
OF written testimony to read and fou
rr five Witnesses TO be orally examine
before his case is completed.