The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1881-02-16
The Finch Insurance Bill.

To the Editor OF the Sentinel:
SIR-As is well known, the insurance in
terest is great one. Anything affecting it
is of vast importance to the country. All
prudent men owning property keep it in
sured. Not to do so would almost be a
crime, for many a time does fire consume
in an hour what it has taken years to create
BY insuring his life, the husband and father
protects wife and child from want; for when
death comes, labor must cease. So il will
be seen that Fire and Life Insurance Conn
panies are public necessities and their es-
adjustment a matter of paramount i'm
portance to the people.
| have read with much interest the report
and accompanying bill of Mr.. John A.
Finch to the Legislature upon the subject
of insurance, and with your permission |
will give the readers of the Sentinel some
reasons why, in my judgment. this bill
should not become "A law. | say this bill of
Mr.. Finch, for, although the report recon-
mending il is signed by General Manson
formerly Auditor of State. and also has the
quasi Endorsement of Judge Woollen, late
Attorney General, it is well known that the
bill is the handiwork of Mr. Finch alone
shall. therefore, treat it as such in this COM
municatiOn.
In his report, Mr.. Finch argues against
imposing conditions upon "incorporators of
Insurance Companies unknown 10 other
business" The argument is well taken, for
capital employed in dealing in insurance
pays the State the same revenue as capital
employed in manufacturing or in any other
business. But the public will see that there
is a wide gulf between Mr. Finchs precept
and his example His bill requires Com
panies writing insurance, organized in this
State. to deposit one-half their capital with
the State Auditor, and to pay a license fee
for every man they employ to represent
them. Does the merchant or manufacturer
have TO surrender control of one-half his
capital before commencing business And
does he have 10 pay for licensing his agents
and for filing in the several Counties where
he sells his goods statements of the condi-
ton of his house? No; the Manufacturing
Company is subjected to none of these hard
ships. 1t controls its own capital,
and selects whom it pleases to sell its wares,
without cost or hindrance from the State;
and yet Mr.. Finch i'm his report, declares
that "the State should impose no conditions
upon incorpOrators of Insurance Companies
unknown to other business" Surely his
preaching and his practice do not consist
There is, however, one class of Insurance
Companies which the Finch bill does foster
and encourage. Section % of the bill pro-
vides for the organization of Mutual Fire
Insurance Companies. These are the only
local Companies that the Chairman of the
Insurance Commission seems to be enamored
of 1t is well known that Mutual Fire
Insurance Companies have nearly always
proven failures. The only exception,
| believe, in Indiana, is the
German Mutual. of this city. Who
does not remember the Sinnissippi, the old
Indiana Fire, and many Others of the brood
Of wild cats that preyed upon the people of
Indiana a dozen or so years ago. Does Mr..
Finch want their kittens given new milk
and be made to grow fat SO they may prey
upon the people, as did their mothers, if-
teen years ago? If not, why does his bill
provide for a new crop of these feines?
Depend upon il, wild eat Companies are the
only ones that will be organized i'm Indiana
under the provisions of his bill Ifhe had
lahOrcd specially TO concoct plan to bring
dscredit upon Indiana Insurance Companies
lac could have made no improvement upon
the bill he prepared for the Legislature of
Indiana. Under his bill, no legitimate In
surance Company will he organized. Should
there be any persons in the state DESTROYS OF
putting money into an Insurance Company,
they will 90 outside its borders To organize
IL. BY doing this they could do business in
Indiana and still control their capital. Be-
sides this, they would not be forced 10 pay
their taxes until the end Of the year; where
AS. were they TO set up a local Company,
they would be forced TO part with the con-
troll of one-half their money, and TO pay
their taxes twice n year. Under these
circumstances, who would organize local
Company land with the locals standg'
Ali who read the bill which Mr.. Finch has
prepared, and which he persistently urges
upon the Legislature, must see that its pass
age would be a death-blow TO sound lnsur-
ance Companies In Indiana. They must
also see that its passage would sweep away
many Of the safeguards that now environ
foreigp Companies doing business in the
State. Ii makes no provision Tor the pub
LEGATION OF statements of the condition of
these Companies, q matter of the first
Importance TO the people, for in no
other way can they learn II the
Companies selling them indemnity are
able TO give IT, IL provides that foreign
Companies shall have the advantage of local
Companies in the payment of taxes for
while the former can pay them at the end of
the year, the latter must pay them SEMI
annually. II provides that Company or
ganzed in England. In France, or in Ger
many may come into Indiana and do bust
ness without putting up dollar Of security
or advertising Its condition In the public