Wichita eagle. [volume] (Wichita, Kan.) 1883-1888, 1885-01-16

Insurance companies employ and pay
agents to take fire or life risks, and these
agents make all kinds Of representations to
induce persons to insure. Yet by the terms
of some policies, agents, instead Of being the
agents OF the companies, are made the agents
Of the insured, and thus the person insured,
is made responsible for the acts and conduct
of persons who are really the agents Of the
insurance companies.
By the terms Of many Of the policies Of
life insurance, if the premium is not paid the
exact day on which it falls due, the policy
becomes void, although in fact the company
has money in its hands belonging to the pol
icy holder.
Many states have enacted laws to correct
the wrongs and abuses which result, or are
likely to result on account of such condi-
tons as these in fire and life insurance poll
cies. And it seems to he there can be no
question as TO the justice and necessity of
similar acts to protect the citizens Of Kansas
against such wrongs. Our laws should make
such statements and conditions in insurance
policies Us those referred to- representations,
and not warranties, without reference TO the
language of the policy. Concealment Of inn
material facts should not be allowed 20 void
policy. Error, mistake or misrepresenta-
ton, should not void an insurance policy
unless it shall be shown to have been inten-
tionally and fraudulently made. An agent
soliciting and writing risks for an in
surance company should be declared
its agent in ali matters of insur-
snce, and not the agent of the policy
holder. The forfeiture of policy for nom
payment Of the premium, if the policy has
any value at the time of the forfeiture,
should be prohibited. And life companies,
after having secured three or more annual
payments, should be stopped from defend
ing against any claim arising upon policy.
by reason of any errors, omissions or mis-
statements of the assured, in any applica-
ton made by such assured, unless positive
and intentional fraud can be shown.
RAILROADS.
The rapid growth of the railways of Kan
sas is a source alike of just pride and of grave
public anxiety and apprehension. The vast
and general importance and usefulness of
these great arteries of commerce, in promo
ting the development of the state, in afford
ing facilities for the state and speedy trans
portation of our products to market, and
bringing to us the products of other Sec
tions. cannot be overestimated. But their
power and influence over every commercial,
industrial and agricultural interest of the
people, is equally vast, and, if not restricted
anu TtSuiatcu w NUOltspule idWs may Ttdu-
lily be welded as an instrument of wrong
and extortion.
The last legislature enacted law the pur-
pose of which was to protect the people
against unjust aggressions by corporate
power, and to secure reasonable and equal
fare and freight rates. This legislation was
largely experimental. Wisely. in my judg-
ment, the law-making power avoided hasty
and arbitrary action, preferring TO create a
commission to which shou Ia be entrusted
the duty of investigating the management
and operation of our railways, hearing and
deciding complaints of unjust discrimina-
tons or extortions, gathering information
concerning the cost of transporting passen-
gers and freight, and advising the legislature
as to the regulations and laws best calcu-
lated to secure for the people prompt, safe
and equitable transportation service.
/ The law has. so far, worked well in prac-
tice 1t has promoted better understanding
and more harmonious relations between the
public and the railroads than has ever be-
fore prevailed. II has secured considerable
reduction in fares and freight charges, great
more speedy and equitable redress Of griev-
ances, and more considerable regard, on the
part of railway managers, for the rights of
travellers and shippers. 1t removed the res
possibility and expense of a fight for JUS
tice from the individual to the state. 1t has,
to some extent, deprived the railway corpor-
ations of the arbitrary power they had pos
sessed, and sometimes unsparingly exercised,
to discriminate between communities or in
dividuals. And it has Unlisted into the ser
vice of the state body of men who have
given to the complicated and nany-sidcd
question Of railway transportation, careful
investigation and study, so that they are
competent to intelligibly advise the law-mak-
ing power.
The experience of other states confirms the
opinion that the commissioner system, with
ample power vested in the commission, is
preferable to any other method dealing with
or regulating railways. In a recent speech
in congress, nm ex-governor of Massachu-
sets stated tina. although the railroad com
missioners of that state conferred upon them
no power Mt all except to investigate and
| recommend, yet in no case had any railway
company dared to resist or failed to comply
! with the mere recommendation of the state
railroad commission. "a corporation, he
said, might be as powerful as an ancient
baron; it might laugh at statutory penalties;
but il goes on its knees; it trembles with ter
ror at entire exposure"
| Such changes and notifications Of the
present law as experience with its workings
may have shown to be necessary, should be
made l think the authority il confers ON
! the commission should be amplified and en-
larged. But the general scope and require
ments of the law, the ever watchful over
sight and constant restraint it puts upon the
corporations of the state, should be adhered
! to.
The source and sum of all unreasonable
/ l. H. h.
for the services they perform, is in their
"watered stock" so-called; in other words,
stock issued far in excess of the cost of their
construction. Railway companies are justly
entitled TO reasonable remuneration for the
services they perform, and to a reasonable
interest on the capital legitimately invested
in the building and operation of their lines.
But they should not be permitted to estab-
lish rates that will enable them to pay large
dividends on stock or Indebtedness in
amount double or three times the cost of the
construction of their road. Deriving their
powers from the state, railway corporations
are responsible to the state for the exercise
OF those powers, and it is the plain duty Of
the law making power to protect the people
against unreasonable, excessive or extortion-
ate transportation rates.
The exhaustive report of the state board
of railway commissioners is commended TO
your considerable attention. The suggestions
and recommendations it embodies are de-
rived from careful, practical and intelligent
investigation and study of the railway ques-
ton in all its phases.
OFFICES OF KANSAS CORPORATIONS.
The legislature of 1875 enacted a law re-
ouiring Kansas corporations to keep and
maintain their general offices within the
state But this act did not repeal an act
passed in 1870 which authorizes any Kansas
railway corporation to consolidate with, or
TO lease its road TO any railway corporation
of an adjoining state" whose road forms a
connecting and continuous line. This act of
1870 is in the interests of adjoining states
rather than Kansas, and should be repealed. |
While ii remains on the statute books, the |
act of 1875 cannot be given much prac-
teal force as against railway companies. |
The last mentioned act, chapter 8, special |
session of 1875, has been for years dead !
letter on our statute books. Adequate |
means for enforcing it should be provided,
or it should be repealed.
PUBLIC HIGHWAYS.
Our road laws need thorough revision.
Better highways are necessary, and some sys-
TEN should be devised under which it will |
be possible to secure them. The present
system of making and improving country
roads is not only wasteful and unjust in its
results. It is a system of patching" between
rains. 1t employs host Of officers, gener-
ally inexperienced and careless, and often
to direct work that would be
much more intelligently and economically
under the direction Of one
experienced and responsible officer. 1t
calls farmers from work they understand,
and in which they have direct personal
interest, and compels them to engage in
work they do not understand, and in
which they have only community interest.
The provisions of the road law allowing road
taxes to be worked out, and delnquehcies
TO be reported and placed on the tax roll of
The succeeding year, are an anomaly in our
lax proceedings. If a road district should
embrace an entire municipal township, and
he road tax, collected in cash, should be
expended under competent supervision, and
the work done with improved machinery {
and appliances, the public would be far bet
er served, and at less cost, than under the {
present system. I
BOARD OF AGRICULTURE. {
Our state board of agriculture has, through &
Is various publications; achieved national I
and has been of incalculabIe
benefit TO the state in making known its re- \
ources and productions. Its work, as q
l. l. IL l.