"What is a separation rule?"
"Why, it's a kind of boycott. The Conference might pass a rule reducing the commission of any agent who also represented non-Conference companies. You see, most agents represent several companies—a good, big agency may perhaps represent fifteen or twenty—and the Conference companies are in the majority in most of the agencies where the Guardian is represented. It would mean that those agents would have to choose between resigning us and having their commissions reduced, and there is very little doubt as to which course they would take. The Conference might even forbid its companies to be represented at all in mixed agencies—where both Conference and non-Conference companies were located—and then those agents would either have to throw us out or lose the bulk of their companies."
"But couldn't they get other non-Conference companies to fill up their agencies and keep the Guardian?"
"No—hardly. There are only a few really high-class companies on the outside. And most of the agents couldn't afford to change. They would simply have to let us go; and that would mean that we'd have to make our agency plant practically all over again."
"And that would be hard to do, I suppose?"
"It would be just about equivalent to building a new company, for the company's agents are the company."
"But you say it's impossible they should pass this rule. Why?"
"Several reasons. It's pretty arbitrary—it looks a little like a combination in restraint of trade, although company organizations in a lot of states have separation rules. But I doubt whether the Eastern Conference has the backbone to put such a rule in effect. Besides, it's scarcely worth while as things now stand—almost all the good companies are in the Conference, and as for the rest, they're either used to them or they feel they're hardly worth bothering about."
"But the Guardian is, isn't it?"
"Yes," said Smith, thoughtfully, "I suppose it is. Still, what good would it do O'Connor? That's what I keep coming back to, because I'm absolutely certain he wouldn't have put this thing through without some personal end in sight."