St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-25
or to wear tight Shoes. The bill was
passed by a vote of % tolls.
INSURANCE CONTRACTS.
Insurance Companies 70 Pay Full
Enno of Do1in;oc

Insurance Companies 20 Pay Full
Face of Policies.
| When the O'Brlen insurance bill came
up for final passage in the senate yes
1 terday, 1t was the theme of another eX-
citing debate Sepator Donnelly thought
there wa, merit in the measure. 1t re-
minded him OF the story of an old Ger
man:
5"He was worthy German" said the
Sage.t'and he had fire insurance policy
ou.iIis house and also life Insurance
on HIS wife. The house burned, and
/ the insurance company learned that the
policy was too high, and, instead of pay
| ing it. they replaced the building, 70 the
disgust of the German. He went to the
| officetOf the company. and said:
~ wants you to stop that policy on
mine. Wife,
'sThe agent told him that such a
course would be very foolish. His wife
I had been insured long time, and the
premiums paid amounted to quite a
sum. The agent also said that the
woman was getting old, and that She
could not live very long.
.'0h, yes, L KNOW replied the Ger
man. a Il know vat YOU do. Mine wife
dies. you say she vas only Dutchfrou,
and you get me nice young American
GAL"
Senator Crandall was opposed to the
bill. He cohtened that the owner of a
building knows better than an insurance
company the actual value of the
property. Ii he miSrepresents the value
to the insurance companies, he should
not be able to collect more than the
worth of the property i'll case of fire.
Senator OBrien argued at length for
his measure, claiming that the effect of
the act will be TO prevent incendariSm.
for the reason that no company will
Over-insure. Senator DUnnelly also
claimed that the present law Is an in
| centive to arson. and innocent parties
have to suffer from the miSdeeds of the
guilty. Senator Tawney reiterated
some of his arg umentS against the bill
made in the committee of the whole the
other day, and supplemented It'll with
the reports of the insurance commits
siouer of Wisconsin, pronouncing
The Law Pernicious
After eight years. experience Wiscon-
sin finds that the losses by fire had been
greatly increased under the law pro-
posed in the O'Brien bill. The price of
insurance had been increased to the
people because of the expense to the
company in employing experts to i'll
spect property before policy can be
written.
Senator Morse supported the bill upon
the hypothesis that it compels the in
surance companies to do business upon
common business principles. 1t COM
pels tnem to live up to their contracts.
1t will prevent litigation. Senator
Bell stated that he was not in favor
! with the theory of protection, but if a
! law is intended 10 protect it should be
binding. The senate should not stand
| as censor of insurance companies, but
| should a company contract to pay a
stipulated price in case of fire, that COM
pany should he forced TO pay i'll the case
of total loss by fire.
Senator John Day Smith renewed his
arguments that The proposed law will
necessarily increase the cost Of insur-
ance. He asserted that the agents of
Eastern companies are not combating
the bill, for the reason that it will i'll
crease the premiums, and their commits
sions will be proportionatelY larger.
They will make more money. At this
| juncttre Senator Hompe thought there
had been talk enough, and he NOV ed
the previous question, and the bill was
pasSed-30 to 15-aS follows:
| Those who voted in the affirmative