Savannah morning news. [volume] (Savannah) 1868-1887, 1885-09-22
THE VALUED POLICY BILL
AN EARNEST OPPO. ITION TO IT'S
PASSAGE.

the LEGISLATURE is exciting general dis
cussion among insurance and business
men throughout the State
The bill is to amend the law concernlnA
fire insurance so as to provide tina
no clause or provision in any policy
OF insurance against fire issue.
upon real or personal property shall o'
construed or held to prevent or l'nlJ lhe
liability of the Insurance company or per
5 n insurug 90 pay the actual value on
property DESTROYED, or the actual damage
in case of partial loss, TO the amount OF
the insurance actually PAID for by the
insured.
Tae Dill is in the hands Of the Judiciary
Comm ttee ot the House and, 1t is under
stood. Will be reported faYOrably, The
insurance representatives and large
part of the business men OF the state are
Vigorously opposed TO its passage.
A meeting OF the Cotton Exchange was
held Yesterday to take action in regard TO
the matter, but owing TO the fact that a
fun text of the bill had not been secured
the meeting adjourned. A committee
consisting of Vice President Green, Capt.
John Flannery and W. II. Daniel, tele-
graphed Representative Gordon last night
Tor a copy Of the bill, which will pToba-
bly, be received to-day, when the Ex-
change will be called together, and Will
take the matter under consideration.
There are 80 insurance companies rep
resented in Georgia. Thirty-tour of them
have instructed their agents not to insure
any property under the valued
policy law. If the bill passes" said
a prominent underwater yesterday, lit
will result in the withdrawal from the
State of every insurance company now
doing business here. There is no other
course TO pursue. bill similar TO that
now pending in the Georgia Legislature
was recently passed by the New Hamp-
shire Legislature. The result was that
50 of the % companies represented in
the state withdrew their agencies. The
same course will be pursued in Georgia
il the bill becomes law"
The grounds OF opposition Of the insur-
ance companies 10 valued policy law are
that it converts simple contract Of in
demnity for actual loss into one which, In
the hands Of bad men may under he sane
ton OF the law. become mere wager
policy OF the most dangerous character,
ln that in certain cases 1t cOmpels pay
ment of an amount IN excess of the actual
loss, removes all interest or care Of the
insured in the protection OF his property,
and offers a prize for incendlarism in
order to realize beyond the actual value.
IL changes the theory Of fire insurance
which has prevailed ever since Its origin
tenor OF the decisions Of the courts both
In this country and in England, where
valued policies have been discOunten-
anced and discouraged as against the
policy Of the law and injurious TO public
morals. IL stimulates and encouT-
ages over insurance and determines
in advance the amount OF recovery
by the amount dishonest party may be
able to induce the company to take on his
own knowledge, and Of which the under
writer cannot be as we'll informed with
out great labor and expense either to
himself or the insured, and which, if
paid directly by the insured, would prove
a severe tax upon his fOrethOught in
covering his property, while if borne by
the company it would, as matter
or self protection, lead to a large in
crease in rates or to the abandonment of
the business. Its tendency is also to in
lcrease the destruction OF property by in
cendiarism. This has been demonstrated,
the insurance men claim, beyond a doubt
in Wisconsin and Ohio, which were the
'hrst states 10 adopt valued policy law
by large increase IN the ratio of losses
during the years OF its enactment.
Its natural effect" quoted another
leading underwater, pointing to the &C
ton OF the New York board in regard to
be 10 the positive disadvantage
of honest pOhcy holders aud the advan-
tage OF designing aud dishonest men.
Without such a law, aud as the thing now
stands, every claimant may require his
loss to be determined by disinterested
aTbitratOrs, chosen from among his
neigheors. or he may appeal to the courts
with certainty of obtaining full justice
at their hands. The valued policy law is
IF
INSURED and is open to grave objections as
70 its constitutionality. 1t will
tend To promote incendiarlsm
and arson and to enormously increase the
proportion Of fraudulent and dishonest
losses, tend to demoralize the citizens of
the State by giving the sanction of the
law 70 fraud, and imperil the safety, II
not the existence, of the great interests OF
lire insurance. so important and so indie
spensable to the business and mercantile
relauOns."
The same opinion expressed by one un-
derwriter was expressed by all who were
talked with in regard to the bill.
While it's provisions are not altogether
clearly understood, the bill as il
now stands is believed to refer only
TO insurance on real estate. FULLY
One-third, and probably more, OF tn,
insurance in Georgia is estimated to be
on realty. The question remains to be
determined whether, in the event of The
bill becoming a law. the companies would
retain agencies I'm the State for the pur
pose OF writing insurance on other thar
real property.
In the opinion OF well-nfOrmed under
writer's, the business would not warrant q
maintenance of agencies under such cir
cumstances.
Cotton men and representatives Of Other
commercial interests, are equally inter
ested with real estate owners i'm view O
this fact. II the insurance business il
Withdrawn from the State altogether one
OF It's greatest commercial interests will
be without any security against loss by
fire.
The loan and building associations are
also interested in the enactment Of a valued
policy law, which would in any event
increase tho rates o. insurance and con
6equently the rate OF interest on loans
in event OF Withdrawal. Of the INSURANCE,
business from the State and the cancel
ling Of policies, there would be no seour
ny whatever against loss or damage b,
fire, and they alue OF stock would at once
bereduced. Representatives Of a number o
leading loan associations were interview
cd yesterday aud all Of them are emphat
ically opposed 10 the bill.
AN ATTEMPTED BURGLARY.
a Negro Boy Captured While Eseapinl
from Il BrOughton Street store.
rtwattar.sef,tT .tt,.,,,.t 49,. ,-,a.. A.