The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-02-03


often found to have directed our Legislation,
and Objectionable laws are frequently suggest
ed and carried through the Legislature to SUBJ
serve some private special interests. 1t IS
charged that the managers of two or three
Fire Insurance Companies in this State, oil
limited capital and not very extensive credit
the Indianapolis" and Arising Sun'-have
been very active in procuring the in)udicious
and oppressiye enactments in this State,
against the agencies of foreign Insurance Com
panies. In the last clause Of an act 10 moor
porate these companies, is the first attack up
on foreign agencies, providing, that service OF
process on an agent, should be service upon
the company, wherever located. This provi-
sion, unobjectionable in principle, was made
unconstitutional by the mode Of its enactment,
and has been imperative, and has produced no
other effect but to impair the respect for all law,
by showing how easily the Legislature can be
swayed, and the Constitution infringed, to sub
serve private interests.
Taking advantage Of the fears of the people
caused by the frauds Of few bogus Insurance
Companies, got up in Wall street, New York,
which never had credit enough to do any great
harm, the Legislature, in 1854, was seduced
into the passage of an act. which, if it could
have been enforced, would have driven every
agency of foreign offices from the State. and
left the people dependent upon the doubtful
protection and tender mercies Of those who
were the active agents in procuring its pas
sage. 1t is well known to practical men, that
in large companies, with agencies and business
throughout the Union from California to Maine,
it is impracticabls for them to get their accounts
together to make up full statement Of all
their affairs, oftener than once year; the in
convenience, cost and difficulty Of doing it
once in six months, would be SO great as to in
duce any large company to abandon its bust
ness in Indiana, rather than submit to the re-
QUESTIONS of such law for this State alone
Counting upon the effect of such law to rid
themselves Of competition, they easily procured
its passage from legislature, whose members
had not business experience enough to see its
pratical operations. Under the same spscious
pretexts of protecting the people, an act was
procured that every foreign company doing
business in this State should deposit par, of
its capital with the State Auditor, a requisi-
ton violating the soundest principles of Insu-
rance business. More than all other business,
IN insurance Office requires the complete and
instant control Of its availables at all times;
for it knows not at what hour, or in what
place, or to what amount it may be called
upon to pay. 1t needs therefore to have all
its funds collected and ready at some available
point to be transferred to wherever they may
be needed. If it be the duty of one State to
require deposit, it is the duty Of every other
State to do the same; and the result would
be, that all its funds would be locked up un-
available In State Treasures; and neither
State would have in its possession quarter
enough to secure its citizens for their losses in
any great calamity; while other States would
be holding funds justly due to the sufferers
The scheme defeats itself; for one State will
not permit the citizens of another to have an
advantage of its own; and for this reason,
Ohio, who does not require deposit as a rule,
enacts that if any insurance company submits
to such an exaction in any other State, it
shall make a deposit in Ohio, of the same
kind; and all othor States must demand the
same to place their citizens upon equality; and
the effect would be that the capital of large
offices would be divided up into 80 or 4eparts,
placed beyond its control, and its credit re-
ducsd to the limits of the local, petty Offices
The advantages which large office has of
drawing its resources from the whole territory
of the Union, and applying them to the losses
by sweeping fire at one point, is lost by this
injudcious plan to the insured and insurer
Insurance requires for its safe manage
ment, the highest individual sagacity, and long
experience and sound judgment; it must there
fore be left wide latitude of freedom.
To complete the expulsion of all foreign
companies by injustice and vexation. it was
enacted that in suit against the company its
agent shall deposit double the amount of the
policy in court to abide the judgment. So ifa
man has claim against company for loss
of 500 on policy to cover risk of $4,000,
the company must Immediately deposit &c.,
600 to remain unemployed, the indefinite Pc
rod OF law suit, as security for 500. 1t
would be an excellent instrument of extor-
ton, If the law were operative. The law pro-
vides, too, that claimant shall not be obliged
to bring his claim short of three years; sus-
picious claim may be held till the proof against
it be lost and then, takiug the policy for
its basis, the demand could be made without
much fear of defeat. 1t is very important
with all good Offices, to have all losses, where
there are any doubts Of their correctness, set
tied at once, while the facts are fresh in the
vpoxno~w ~ al ~oI oon Ia ac;1 Jakovu:I