The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1890-05-16
AS TO THE RECTITUDE OF NSUR-
ANCE COMPANIES.
KANSAS CITY, No., May IA, 1890.

KANSAS CITY, No., May IA, 1890.
NJ. NJ. Murdoch. Esq.
am surprised that a writer of your
experience should hasten TO the defense
of a person concerning whom you know
nothing, and of the merits of the case in
which she is involved with the insurance
companies, you have not the least in
formation. If you will investigate this
case you will find that the companies
have good grounds for their action, and
that an ordinarily prudent business man
would have been justified in a similar
course. Your general TRADE against in
surance companies is uncalled for. There
Is no class of business conducted on a
higher plane Of morals than the insur-
ance business. The writer has been in
the business fourteen years, and during
that time has paid fourteen hundred
losses. All of these have been adjusted
TO the entire satisfaction of the assured:
so much SO, that in only one case has the
assured refused 20 continue his
insurance in the same COM
panies that paid his loss. The
companies represented III this Office
sixteen In number-write $50, 10000 of
insurance per annum IN this city, and
pay out many thousands in the same
time for losses, vet during the twenty
five years this agency has been In exist
ence it has never had a law suit or be-
come involved IN a quarrel over loss.
Most of the other offices here and else
where will bear equally good report II
you will take time to inquire of the
agents in your own city YOU viii, IN all
probability, find that there has not been
a suit with insurance companies for
many years. In fact. when you Temem-
Der that SO per cent of the business men
carry insurance on their property, and
80 per cent of the general population
carry insurance on whatever they may
own, it is a wonder that there are not
more suits growing out of these insur
ance contracts. There is no branch of
commerce so general as insurance: none
that affords so large a field for litigation:
and yet, ON the contrary, none that
burdens orr courts with as few cases.
You complain that the companies have
formed a combine to demand rates. Adj
hitting that to be true, you will find, if
you examine Superintendent Wilder's
reports, that the companies have lost
money in Kansas for years. A loss ratio
of over 80 per cent is a losing business.
Yet the companies paid a loss ratio of 50
per cent last year i'll Kansas and an aver
age of over 80 per cent for the past. ten
years. Some companies have left the
state on account Of the Improbable
of the business, and more are seriously
doing like action. As the
combine" is only to obtain rates the
companies are not much of a success in
robbing the dear people.
Your reference to Mr.. Wilder and the
insurance companies shows clearly that
you are not cognizant of the true in
wardness of things. Every insurance
company Of financial standing and char
acter is backing Mr. w. in his efforts to
rid your state of wildcat insurance. He
will corroborate the statement that he
has no more loyal friends than these
same companies which you assail in your
article.
| am certain you have never had any
business transaction with these "bull-
dOZlng" adluSterS, as you term them. If
should compel you to make
their acquaintance you Will find them
careful. prudent, conscientious business
men, and after you are through with
them you will have a better opinion of
them than you now have. No company
would keep in its employ a man who
would compel any one TO accept one dol
lar less than is due them. / knew of a
young man who was employed by an in
cumpany to adjust losses, and
among his first he settled a loss for $50
less than the face of the policy, and
wrote the company that it was a good
settlement as the assured was entitled to
the full amount. The assured got a draft
for the entire amount and the young
man his immediate discharge. No COM
Danv would tolerate such conduct.
The law which you ask for Kansas
that Of compelling insurance com
panies to pay the full amount of
the policy in case of a loss-would
be serious blow to the general
good of the state. No honest loss
suffers by investigation. Only the rOgues
would profit by such a law. The larger
the losses the heavier the rates to meet
those losses. 1t has been the experience
Of the insurance companies that IN those
states adopting such a law the losses have
increased. and when Vermont
enacted this law the companies with
Irew from the state. The enactment of
IF such a law in Kansas would be fol-
owed by one of two things: Either the
would cease TO do business in
he state or therates would be materially
One word in closing this already too
Ong article. The insurance business
axes on more or less the character Of the
ocaI agent. The company must get its
business through him. If he Is honest, !
and careful he viii avoid
nsuring dishonest men and undesirable
-isks and in that case viii bring the losses
lown to the minimum and pave the way
or the least cost TO the honest insured.
no other channel viii this desid
,ratum come. W J. MEDES.