The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-04-23

nave rdNSeu The expected oppOSltlOu
among those who will be affected
should some of the queer ideas which
have been injected pass the conven-
ton and be part of the fundamental
law of the land. Agents Interested in
telegraph, telephone. railroad, express.
insurance, banking and other compan-
les have already become active IN the
matter and are bringing influence to
bear to prevent what they would
consider unfortunate acts.
Not the least emphatic or energetic
in the mater are the insurance
agents. The provision that al COM
parlies operating in the new state,
whether they be foreign or domestic,
should deposit with the treasurer
100000 in securities equivalent to
cash came like a thunderclap. Some
thing had been expected, as it is gen.
orally the practice of raw legislatures
to consider some queer acts in regard
TO insurance companies. But moth
ing so fiat had been thought of. Cap
tain Donnell, manager of the Board
of Underwriters of the Pacific, tele-
graphed yesterday morning to VIM. ].
Dutton, vice-president of the Fire
mans Fund company, and chairman
VI lllc cSlSldllhS VI Liz
board, and asked him to call meet
ing of the managers of the companies
operating in Utah and learn their
opinion regarding the proposition.
They acted promptly. Yesterday af-
ternoon. Captain Donnell received the
following telegram:
An Emphatic Answer.
"At a meeting today of the compan-
les represented in Utah, it was unani-
mously resolved that the proposed de-
post law was highly Objectionable,
and if adopted, the companies will be
forced to withdraw from the state.
VIM. J. BUTTON.
The telegram was laid before the
local board at its meeting yesterday,
and prompt action was decided upon.
A special committee of the local
agents was appointed to look after
the matter and call on the conven-
ton. 1t consists of Captain Donnell,
II. G. Whitney, A. L. Jacobs and H.
p. G. Coats. Petitions will be started
around among the business men today
and an aggressive campaign will be
carried on all along the line.
Mean What They Say.
az have no doubt the companies
mean all they say said Captain Dom
mel when seen by a Herald represen-
tative last evening. utah Is not
very profitable field. During the last
five years about forty companies have
been forced to withdraw altogether
from THE territory. The remainder
are fighting for the business Withoua
making any profit. For a great many
years the loss rate in Utah has been
over 20 per cent In 1894 DIT was 81
per cent. When companies are
compelled to pay oil the
way from % to so per cent for ex,
nenses even under the full rates ana
when rates are being cut over haf
on account of the insurance war, you
can imagine that the companies 90 not
feel greatly encouraged.
Tie Up Eight Millions.
SIN the face of that condition it Is
proposed to require deposit tnat
would not be justified by a mucn
greater business than can be nad mere.
There are eighty companies operating
in Utah. The deposit law would tie
I'm. therefore, over IS, 200, 900. Now in
New York the deposit is only $2O0,0OO
and there are great many companies
which do not care to tie up tnat sum,
even for the privilege of operating IN
that great state. They can take the
money and use it to much better adj
vantage.
'In Oregon there is requirement
for s5o. 900 deposit from each company.
The result is that only about dozen
companies have felt that they can
afford to do business in the state. In
consequence there is a lack of faclli-
ties for insurance in the state. Take
for instance some great stone on
which the owner is carrying something
like $50, 900 insurance. The companies
will carry only certain line, say from
SO, 900 to S., 900 each. When the insured
has reached the limit Of companies
operating in the state he is compelled
10 have his business written in San
Francisco. with whatever trouble and
cost there may be attached to that.
Must Go to Frisco.
eff this deposit provision should be
passed and all the companies should
withdraw from the state the result
would be that the merchants of Utah
who wish to be insured would be COM
PEELED to send their business to San
Francisco. 1t might be possible that
even then they would not be able to
secure It, as companies are very much
inclined to combine against any region
which will not give them opportunities
to inspect their risks and carry on
business openly. But even If business
were given it is more than likely that
an extra charge would be made. The
companies will take all they can get.
1.-THE state would gain nothing by
the provision and it would lose much.
In Salt Lake city alone the insurance
companies each year produce revenue
of over $4,000. from licenses. In addi-
ton to this they are compelled to file
statements and advertise them in the
newspapers. With the money that
comes to the agents and the volume
they add to the business of the COM
munity the benefits derived from them
is worth consideration to say the least.
Salt Lake Fortunate.
ST fail to see where the policy hold
ers would receive any great benefit
from the deposit The sum OF S10O, 900
would scarcely be drop in the bucket
If some company which is carrying
s., SOC, 900 i'll this territory should
fail. But there is little likelihood OF
failure of any of the great companies,
except in case of great conflagration
like those in Boston and Chicago,
where whole districts were wiped out
And, by the way, Salt Lake city is
fortunate in having had no conf1agra-
tions. Because it has been free from
them its people are dwelling in peace
and security, but some day they will
wake up and find that their fire depart
ment is not half as adequate as It
should be. 1t is cut down to alarming
proportions and there is no telling
when 1t might be called on for an
emergency with which It could not
COPE"
Convention May Kill 1t.
There seems to be no great danger,
however, that the convention will
ia - Ill ~.