The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1886-11-03
The Valued Policy Hearing.

The hearing before the joint general com
mittees October 26 on the valued policy
insurance bill was attended by as many as
could well be packed into the room, and on
the whole the proceedings were decidedly
lively. The session was held in the general
committee room and lasted about three
hours. The arguments were numerous
and spirited but were rather of the Jug
handle variety, all on one side. The only
argument in favor of the bill was made by
Mr.. Harvey Of Topsham its paternal an
cestor. Hon. G.. W. King of Lunenburgh,
who is member of the Brown Lumber
Company of Whitefeld n. H., and has
large landed interests in that state was
present in the interests of the opposers of
tbs bill and told how the law worked in
New Hampshire. Mr.. King claimed that
the state was flooded with irresponsible
wildcat companies and that it was almost
impossible to procure sufficient legitimate
insurance to protect property. S. G.. Shurt-
left, Esq, called on Mr.. Harvey to give his
reasons for the passage of any such bill, and
the latter consumed good half hour in an
effort to do so. Mr.. Harvey said that the
bill was not his hobby or ambition. The
bill is public benefit. 1t has no reference
to personal property, only real estate. The
main object is to prevent over insurance.
No question of generalization can enter into
the case. If policy holders choose to pay for
more than they expect to receive it is their
fault. Insurance is now greater than two
thirds the value. The bill will help the
companies by not allowing them to insure
property for more than its value. 1t is
better to find out what the property is
worth before it burns than after. 1t com
pels companies not to insure for more
than two-thirds the value, and to
pay it. Read letter from Hon. Gilman
Marston of Exeter, n. H., to prove excel
lent working of the law in that state. Said
the law was complete protection against
sharp adjusters" All wrong to take pre-
miums for what they don't intend to pay.
Esquire Shurtleff appeared in behalf of the
Vermont Mutual Fire Insurance Company.
Said the company would hold its grip and
continue to do Observation-Disclosures law was
enacted. The company has been in exist
ence hfty-nine years and its manner of do
ing business has met with general approba-
ton. The passage of the bill would prevent
companies from making contracts with par
ties desiring Insurance. and the state would
act as guardian. Thinks the effect would
be to promote over-valuation Don't com
pei company to pay more than the loss
has been. No one in New Hampshire
would give up foreign policy and take a
valued policy to-day, and the rates have
increased from twenty to fifty per cent.
Numerous insurance companies in New
Hampshire with a capital of from 81 200
to $4,000. People are compelled to accept
foreign Z" wildcat " insurance. The passage
Of the law would result in throwing hun
dreds of men out of employment. Mr.. NJ
j. Francisco-the well known general agent
at Rutland-made an extended and very
effective and convincing argument against
the bill. He appeared in behalf of the for
eign companies. When the state compels
company to pay more than the actual loss,
| it places a premium on arson and fraud.
| His experience was that companies and
agents always took especial pains to pre-
! vent generalization. but are often deceived
| by false representations of the owners of
/ of l,nr..
the insured did not get all that belonged to
! him, and often much more. For two
months after the law went into effect in
New Hampshire the losses averaged 500
900 per day. Statistics show that valued
| policy increases losses twenty per cent. The
state would also lose the three per cent tax
paid by foreign companies. Quotes Insur-
ance Commissioners Mccall of New York,
who disapproves of the law, as it makes it an
object for a man to burn his buildings.
Commissioner Tarbox of Massachusetts, is
also strongly against the law. Commissioner
| Spooner of Wisconsin says it operates TO
| promote perjury and arson. Savings banks
would call in their mortgages. Agent
| Hayes of Bellows Falls said that people
across the river in New Hampshire cannot
obtain satisfactory local insurance and come
to Vermont, paying higher rates for reliable
! insurance. In case a New Hampshire vii
lage was burned, policy holders would not
realize ten per cent of their loss. Agent
Lawrence OF Springfield testified to the
unsatisfactory operation of the law in New
Hampshire. Valued policy cannot be
pledged because it is worthless. Agent John
V. Hall of Bennington had paid three
fourths of million in losses in four years.
and every loss paid had been satisfactory
A majority of the policy holders of the state
do not want the law. Agent Hayes read
protest from the Vermont Farm Machine
Company of Bellows Falls against the bill
| General Peck of Burlington endorsed all
that had been said, and referred to the gil
gantic protest of the business men of Bur-
lington. The entire weight of argument
was against the bill. Chairman Stanton
announced that an adjourned hearing would
be held for further discussion.