The Press., 1895-08-01


 tction for both the insurer and the in- aged.
 CONNECTICUT IN THE FOREFRONT.
 Counecticut stands in the forefront in sal good things. She stands in the fore- fHnt in patriotism, in invention, in wealth, i education, in philanthropy, in industry, fl steadfastness of purpose, in good cit ienship, in great ideas, in high ideals,
 noble manhood and wOmanhOod; but sl no one thing is she better known the thnd world over, in no one thing does ab take greater pride and honor, than in hf great and peerless insurance com phies-which have been growing for RArly 100 years, and through which she hs reaped glory and renOwn-and in the MhOrable and far-seeing men who pre- sie over them and guide their destinies men whose names are the synonym for iAegrity and fair-dealing to the hori- zh's bound. Therefore, there should be lLsry careful action in all insurance mat Hers, and am very sure that this honor atSple body, representing one branch of the legislature of the State of Connecticut, pal be very careful before doing any fling to cripple them, and by reversing Re established policy of the State, and nplating the fundamental principals of Assurance, work irreparable injury, both
 the companies with their great finan- etsl interests, and to the great body of tie assured, scattered not only over this S&te, but over every State of this great Union, and over every province of the 0Anadas.
 . YThe committee on insurance, of which, B5 your votes, have the honor of being chairman, have examined carefully every nS1tter referred to them, have listened patiently and attentively to all who de- siied to be heard thereon, and, acting on the principle that no change in the laws should be recommended unless they were satisfied that such change was needed, afa not simply because change was asked for, have, after due and careful de- liberation, unanimously agreed upon every measure excepting the one before uSA and, in this instance, only two of the nine members have signed the minority report, while seven members have signed the adverse majority report, and 1 ask you to bear this fact in mind in rendering your decision.
 For more than a score of years 1 have bEan a student, both in the theory and practice of insurance, and I trust that this fact will give my words upon this subject added weight to my brother Sen atars, whose business and professional lives have been cast in other channels, and whose knowledge of insurance comes indirectly, rather than by special study.
 THE ORIGIN OF INSURANCE.
 It has been but few years, compara- tiVely, since insurance companies have been in existence. Prior to that time, when property was destroyed by fire, the only protection obtainable was that re- ceived by passing around subscription paper among friends and neighbors, and if a S1 800 house was destroyed, and the subscription netted $100, the owner had, indeed, great cause for thankfulness, and was held under everlasting obligation to the givers.
 The next step was the banding togeth- CT of greater or smaller number of fri9nds and neighbors, each agreeing in --EIe lo A,--As.---1-l e-sIPPOHt UU UHJ OnC Ci them, to contribute equally toward par tially, at least, making good the loss.
 This led to the formation of regular chartered mutual fire insurance compa- nies, each member paying in 8 small amount of premium, and agreeing to con- tribute a larger sum, not exceeding a cer- tain per cent, if that already paid was not sufficient to make good the loss, each
 
 corporation. This is the plan of the mu- tual fire insurance companies of to-day.
 Then came the organization of the stock companies. A certain number of people subscribing for certain specified number of shares of the stock selling insurance for rate sufficient to cover it's worth as ascertained by general average, and il there was 8 profit, adding that profit tC the surplus, or dividing it amoung them selves in dividends, and if there was net loss, paying it out of the surplus, or, il that was not sufficient out of their owr pockets. This is the plan of the stock fire insurance companies of to-day.
 UNIFORM POLICIES.
 Two years ago the Legislature of this State passed a law requiring all insurance companies doing business in this State tC use certain form of policy, known as the New York Standard Policy, each line tC be numbered, and the type to be no smaller than a certain specified size This was simply to insure uniformity in all policies, heretofore each company hay ing used a form of it's own. Now, if tht assured has two or more policies in force issued in this State since the first of Jan uary, 1894, the printed form of each policy reads precisely alike. For instance, the tenth woFd in the sixteenth line in one policy isthe tenth word in the sixteenth line in every policy. So that, having reat the printed form of one policy, he hal read the printed form of every policy No one, therefore, has any excuse for no knowing the provisions of his policies. INDEMNITY INSURANCE. The principle of insurance as practiceC in Cfot nd is to indemnify the assured against los or damage by fire to the extent of tn value of the property destroyed, not ex ceeding the amount named in the policy This is in substance the printed wording of every policy: In consideration of tn stipulatiOns named, and of the premium the company insures the party for certai length of time against all direct loss o damage by fire on certain specified proI erty to an amount not exceeding tn amount named in the policy.
 This principle is an eminently fair one and one which the State should not de part from.
 | THE VALUED POLICY.
 The only other form of policy is tn valued policy, which makes the compan pay, in case of total loss, the maximum amount named in the policy.
 At first glance this seems perfectly fai and just; but in analyzing it's working we find that it is absolutely unjust. no only to the companies, but doubly so t the assured. It would work hardship the assured in two ways, by reducing tn amount of insurance which they could ot tain upon their property; and by increas ing the rate, as all property would hay to be valued before policy could be is sued.
 Let us look for a moment at the work ing of the two systems. For example under our indemnity plan the senate from the fourteenth wishes insurance o I " NASsSSaNA\Sm,, %