Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-02-05

ana recommended its repeal from the fact that tba
insurance companies OF Ohio, under 4 similar Iar
nave increased their interest in very large proI,or
tion The State Of Wisconsin had A like law Viii,
| the same result, and repealed il I bejiave a.
theory OF insurance is not gambling proposit.tI,
II ,hat pli were adopted the Insured canli re. to-
gether for any triiing consideration, 4 a. ~
insurance company for twice what the rro,s9
worth. 1t opens the door for corruption and frsui
IL strikes man that If you have been injured. If
you have lost a certain sum Of money that in ali
equity you should be entitled to recover IL Nou,
sir, the insurance company is satisfied in taking the
small amounts for the benefit of the individual Tbc
has his property insured The more restriction -,
throw aoout the business the more risk you make
them take. hope that this bill will not be reed
do not think we have the time to waste in such
way.
Mr.; EDWARDS agreed with Mr.. FELTON,. He said
VISA TO state that similar bill was enforced In
Wisconsin. The losses under the operation az that
law increased to more than double what they were
before. The rate OF premium increased in nrnnor
, slo1 70 the losses Again, large number of the
ieauinS companies withdrew from the State Of
wisconsin IN consequence, and left few small COM
panes at nome to carry the risks on property The
rates went up at once Here is a gentlemen owning
some property IN Sacramento. He Is surrounded on
both sides by long of wooden buildings What
Is 10 prevent this man from stepping into one insur
ance office to insure for So 900 and into another to
insure or IKE sum, and so on until he has Sl4 600
or Sl5ouo OF insurance on his property? You offer
q premium for incendiarsm You offer a nren,i1In,
which will endanger the lives OF the people in every
city and town of the State. And let me say this II,
regard to insurance companies: When a niece of
property is DESTROYED or damaged the owner of the
property may submit to arbitration if he wishes
and the companies determine by that means the
value OF the loss, and will always pay it, | think
the contemplated law is very pernicous one and
would upset entirely the business of many OF our
insurance companies. 1t would drive a number OF
the companies out of the State
Mr.. GRIFFrrHs favored the bill Said he. I
believe, sir in enacting such laws as will compel
these rich companies to enforce the laws OF this
State-in such laws will compel them when
property is destroyed by fire flood, to pay.the
value OF the insurance. They all employ honest
and competent men to work at their business and
they will be very careful that they do not put too
high an estimate upon the property insured. We
must put some responsibility upon the insurer and
at the same time offer some protection to the in
sured. Now, there is another question involved
here. When a poor man insures his property for a
certain amount. and pays his premium annually,
and the property is destroyed he is thrown into
Court, and the companies, having a great deal OF
money, can employ the best attorneys. They are
able to exert very powerful influence, SO
far as they are concerned ; but the poor man,
not having the money, is compelled to come
out of the Courts with his property gone
| regard this as one of the hest reasons for
throwing the responsibility at least upon the insur-
ance coE'nanies, and thus protecting the poor in
surer. now, have seen various comments in the
newspapers with reference to this identical law We
have no evidence that companies were ever driven
out of the State. Ii they were disposed to do le
gitimate business, an honorable business, see no
reason why they should leave the State Ii they did
SO it was for the better that the insurance
companies do not desire to do legitimate business,
but to defraud the people. We come here TO pro-
tect the people. think the insurance companies
can do Legitimate business by this law and hope
the bill will be read not only the first time but also
the second and third time, and will become a law.
for must protect citizens from the enemies of
these large and powerful companies.
The roll was called and the bill was ordered to be
read-ayes 35, noes 10.
At o'clock the Assembly adjourned