Oliver Wendell Holmes, Jr.

Summary

Oliver Wendell Holmes, Jr. Fidelity Deposit Company of Maryland v…

It forbids the payment of any emolument of any nature to any person for the obtaining, placing or writing of any policy covering risks in New Mexico. The words go beyond any legitimate interest of the State, and although the decree is based only on payments to agents it does not declare that the payments thus made prevented the payment of appropriate commissions to the agents in the State nor does the statute limit its prohibition in that way.
Source: Wikisource

Oliver Wendell Holmes, Jr. Fidelity Deposit Company of Maryland v…

It was suggested that agents were paid by commissions at well known conventional rates and that the statute meant to forbid the dividing of these commissions, and in that way to prevent the work being done and paid for elsewhere, while nominal agents in New Mexico were paid small sums for the use of their names. In short it is said the purpose was to secure responsible men to represent the company on the spot.
Source: Wikisource

Oliver Wendell Holmes, Jr. Fidelity Deposit Company of Maryland v…

The case last cited was one of an attempt to regulate the corporation's payments in another State. By the same principle on even stronger grounds the corporation cannot be prevented from employing and paying those whom it needs for its business outside the State. The difficulty was fully appreciated by the counsel for the appellee and he therefore sought to limit the generality of the words, at least in the case of agents, and to make out that the object was to prevent the use of dummy agents in the State.
Source: Wikisource

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