Hartford Fire Insurance v. State

89 S.W. 42, 76 Ark. 303, 1905 Ark. LEXIS 99
CourtSupreme Court of Arkansas
DecidedJuly 15, 1905
StatusPublished
Cited by18 cases

This text of 89 S.W. 42 (Hartford Fire Insurance v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartford Fire Insurance v. State, 89 S.W. 42, 76 Ark. 303, 1905 Ark. LEXIS 99 (Ark. 1905).

Opinions

Hire, C. J.

On the 6th of March, 1899, the General Assembly passed an act, commonly called the “Rector Anti-Trust Act.” It was construed by this court in Lancashire Insurance Company v. State, 66 Ark. 466, and is found in sections 1976-1982, Kirby’s Digest.

On the 23d of January, 1905, an act repealing this act and “providing for the punishment of pools, trusts and conspiracies to control prices, and as evidence and prosecution in such cases,” was approved. This is a prosecution instituted by the State under the latter act against the appellant, which is a foreign insurance corporation, for doing an insurance business in the State without complying with the provisions of said act of 1905. The Reporter will set forth the issues framed by the pleadings and the agreed statement of facts. The circuit court held the appellant liable to the penalty of the act, and gave judgment accordingly, and the appellant brings the case here, and it involves the construction of the act.

The defining and controlling part of the act is found in the first section thereof. The body of the first section is a copy of the first section of the Rector act, with certain words and phrases inserted therein. It is here given with the inserted words and phrases placed in brackets, so that the eye may detect the additions to the Rector act:

“Section 1. Any corporation organized under the laws of this or any other State, or country, and transacting or conducting any kind of business in this State, or any partnership or individual, or other association or persons whatsoever, who [are now, or] shall [hereafter] create, enter into, become a member of, or a party to, any pool, trust, agreement, combination, confederation or understanding, [whether the same is made in this State •or elsewhere], with any other corporation, partnership, individual, or any other person or association of persons, to regulate or fix [either in this State or elsewhere] the price of any article of manufacture, mechanism, merchandise, commodity, convenience, repair, any product of mining, or any article or thing whatsoever, or the price or premium to be paid for insuring property against loss or damage by fire, lightning or tornado, or to maintain said price when so regulated, or fixed, [or who are now], or shall [hereafter] enter into, become a member of, or a party to any pool, agreement, contract, combination, association or confederation, [whether made in this State or elsewhere], to fix or limit, [in this State or elsewhere,] the amount or quantity of any article of manufacture, mechanism, merchandise, commodity, convenience, repair, any product of mining, or any article or thing whatsoever, or the price or premium to be paid for insuring property against loss or damage by fire, lightning, storm, cyclone, tornado, or any other kind of policy issued by any corporation, partnership, individual or association of persons aforesaid; shall be deemed and adjudged guilty of conspiracy to defraud and be subject to the penalties as provided by this act.”

Other sections are added to the act not contained in the Rector act, but all of the sections of the Rector act are retained, the only changes in them being that clauses are inserted where necessary to make the other parts conform to the first section. These new sections throw no light on the construction, and are not involved in this case.

These are the questions involved:

1. Does the act prohibit, under the penalty named therein, a foreign insurance corporation from doing business in Arkansas while such corporation is a member of a pool, trust or combination to fix insurance rates anywhere, although such pool, trust, or combination is not created or maintained in Arkansas, and does not affect or fix, or attempt to do so, rates of insurance in Arkansas?- To state the proposition by illustration: Assume that the appellant is a member of a trust — called a rating bureau — created and maintained in New York City to fix insurance rates in New York City and St. Petersburg, but which does not fix or affect rates in Arkansas, is it guilty of a violation of the act if it transacts an insurance business in Arkansas upon complying with all , the statutes of this State except the one at bar?

■ 2. If the act reaches to and makes unlawful the transaction of an insurance business in Arkansas by a foreign insurance corporation while belonging to a trust, pool or combination to fix or affect rates in other places than Arkansas, but not in Arkansas, is the act constitutional, and is it within the power of the State to enact it?

1. The State contends for the affirmative of both propositions above stated, the appellant for the negative. The insurance company contends that the act renders unlawful the doing of business in this State by a foreign corporation while it belongs to a trust or pool made in this State or elsewhere to regulate or fix the rates of insurance on property in this State. It admits that it belongs to a trust, within the definition of the act, but says that such trust is created and maintained without the State to fix prices at places without the State, and- that it does not belong to such trust created or maintained anywhere to fix or affect insuranee rates on property within this State. These different constructions have been pressed upon the court in strong and plausible oral arguments and in able and exhaustive briefs, and the court has laboriously and painstakingly examined, discussed and deliberated upon the arguments presented by counsel.

If the act itself was clearly and properly drawn, and free of obscurity and ambiguity, this case would not, in all probability, be here, or, if perchance it were, the work of the court would have been easily and speedily done, for it is elemental that the act itself furnishes its construction; or, rather, when it is plain there is nothing to construe. The law on that subject is thus stated: “The statute itself furnishes the best means of its own exposition; and if the intent of the act can be clearly ascertained from reading its provisions, and all its parts may be brought in harmony therewith, that intent will prevail, without resorting to other aids for construction.” 2 Lewis’ Sutherland on Stat. Con. § 348. Therefore the first duty of the court is to ascertain, if it can, from the act itself the intent of the law-makers, and when that is found then declare it; and the act is enforced as so declared, if otherwise valid.

The first matter to attract attention is the connection in which the words “in this State or elsewhere” are inserted into the body of the Rector act. The first connection is descriptive of “the pool, trust, agreement, combination, confederation or understanding” (hereafter for brevity’s sake this clause will be called a “trust”), “whether made in this State or elsewhere.” The second connection is with the persons confederating to regulate or fix, “either in this State or elsewhere,” prices, etc. The third connection is with the trust, “whether made in this State or elsewhere,” “to fix or limit in this State or elsewhere” the amount or quantity of production, the rates or premiums of insurance, etc. These terms should qualify the clauses to which they are annexed grammatically and in fact, if possible.

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Bluebook (online)
89 S.W. 42, 76 Ark. 303, 1905 Ark. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartford-fire-insurance-v-state-ark-1905.