The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-05-18
JUDGE FORT RULES
CHARGES AGAINST
FIRE INSURANCE CO.
ARE NOT WELL TAKEN
Demurrers to Indictment Re-
turned BY Jefferson County
Grand Jury Sustained BY
the Court-Decision Is
Far-Reaching

Fire insurance is not such a neces-
sity of life as to come within the
meaning of the statutes of Alabama
prohibiting profiteering in necessa-
ries, according to a ruling of Judge
William E. Fort of the criminal divl-
sion of the circuit court.
This opinion was handed down yes
terday in the cases of IL fire insurance
companies indicted by the Jefferson
county grand jury some time ago,
charging them with participating in a
conspiracy to raise fire insurance
rates in Alabama.
The case taken as test case was
that of the Girard Fire and Marine
Insurance company, and Judge Fort
sustained demurrers filed by the com
pany to the indictment In his ruling
Judge Fort said in part:
$50 far an the act of 1919 is con-
cerned, which was drafted to pro-
hibit profiteering, 1T is clear that
this act does not intend to embrace
the business of fire insurance; for
while fire insurance may be
necessity of life, yet 1T is certainly
not necessity of life the same
kind, class, nature or character, ms
food, clothing or fuel; and I'm con-
STRUNG this act it must be borne in
mind that these the general
subjects provided for In said act.
1t is apparent that the legislature
did not intend to embrace fire in
surance within the provisions of
that act.
ATTEMPTS TO PROSECUTE
Taking the history of attempts to
prosecute fire insurance companies un-
der general monopoly clauses of the
different codes of the several states, it
has been found that the courts have
almost uniformly held against the en-
larging of these general monopoly in
hibitions to include fire insurance
unless fire insurance was specifically
provided against in the act itself.
THE courts have construed these
statutes in a number of different
states, and have held with practical
uniformity that it requires specific
legislation to embrace fire insurance
within the general provisions of the
monopoly statutes of the several
states.
Following these decisions other
states have enacted specific legisia-
ton to cover and control harmful
combinations of fire insurance com
panies seeking to raise fire insurance
rates by arbitrary and secret combina-
tons, and these statutes have reason
and justice to support them. The leg
islature of Alabama has not as yet
enacted specific legislation along this
line, and the courts cannot proceed
further than the law as it is now upon
the statute books
ANTI-PROFITEERI STATUE
1t is expected that the decision
of Judge Fort will be of far reach
ing Importance on the question in
VOWED. The Girard Fire and Ma
rine Insurance company together
with 10 other insurance companies
of international reputation was in
dicted by the grand jury under the
anti-prOffteerinE statute of Ala
bamn several months ago They
were charged with entering into an
unlawful conspiracy or cOmbina-
ton to raise and maintain fire in
surance rates in the state to an I'M
reasonable figure. and that a COM
bInation OF this kind was in viola
ton of the Alabama statute against
the creation of monopOliex..
This case was a test case and de-
murrers were filed to the Indictment
by the defendant company on the
GROUNDS that the act under which the
indictment was drawn was in violation
CT the state and federal constitutions.
Criminal proceedings against the COM
ran1es against which indictments were
returned have been dropped, the cases
being mol pressed
Demurrers to each of the 19 counts
IN the indictments were sustained by
nudge Fort. Many OF them were sus-
tanned on purely technical grounds in
volving the sufficiency of language in
which the offense charge is made.
ARGUMENTS OF COUNSEL
Following arguments of counsel on
Tie points of law involved several
weeks ago Judge Fort has had the
case under advisement, and has exam
med carefully into similar statutes and
oeclslons OF courts of last resort prac-
tlcally In every state in the union.
other companies affected by the de-
clslon in addition to the Girard Fire
ana Marine Insurance company are:
inc security Insurance companv of
new Haven, Commercial Union Assur-
ance company, Limited of London, ST.
aul ERE and Marine Insurance com
rany' the Northern Assurance com
pany OF London, the Insurance COMPANY
OF North America, the Globe and Rut
gers Fire Insurance company of New
ork, the Fire association of Phila-
ceiphia, Phoenix Assurance COMPANY Of
London, the American Insurance corr
rany OF Newark, N. j., and American
central Insurance company.