The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-15
1t Was Mr.. Moore's Measure Making
COmpacts IlleEal-He Scores the
Committee.
A TWO-CENT RATE VICTORY
HOUSE PUTS WCAsKE:Y RAILROAD
BILL ON SECOND READING.
Senate Hears Reports ON Many Bills
Two Judicial Circuit Measures
Killed-Free SchooIbOOks.


House yesterday that the insurance commit
tee displays fondness for hanging up
measures pertaining to the regulation OF
companies doing business in the State. On
Jan. II Mr.. Moore's bill making it unlaw-
full to form insurance compacts was re-
ported favorably by the judiciary commit
tee, to which ii had been referred, but the
insurance committee Immediately set up an
injured innocence plea and the bill was sent
to It.. Yesterday, almost a month later,
the committee reported the bill for indef-
mite postponement. Mr.. Moore thought he
had just cause for his prediction that the
committee had but one object in view in
securing the bill, and that was to kill it.
Not content with recommending it for in
definite postponement the committee had
delayed reporting on 1t for month. Mr..
Moore. in speaking for the rejection of the
committees report, showed how the COM
panies had created monopoly in the State
by forming a combination to boost rates,
with almost every company in the State
in the combination. Local board No. l. at
Cincinnati. dictated to the entire State of
Indiana what it's citizens should pay for in
surance, rates double and treble those in
vogue before the compact was formed. Mr..
Melendy made plea for the poor insur-
ance companies, which he vowed were not
was not company in the State that had
made money in years
Mr.. Hamrick was loaded for the insur-
ance committee, and he brought down his
game with statement of statistics taken
from the annual issued by the insurance
companies themselves. Said he:
There are certain elements which enter
necessarily to be considered in fixing
table OF rates for premiums, and these ele-
ments are: First, fire losses; second, ex-
penseS; third dividends capital; fourth,
surplus account. The companies doing bust
ness in Indiana claim that the rates they
have been demanding and collecting will
not provide the means to keep the four ele-
ments in a healthy condition, and that they
have been driven by necessity to increase
illustration of a few cases of raise in rates
in the. town of Danyille, viz: Mrs. Estep,
rate 81, new $3.15; r. c. Russell. old rate Sc,
$3.50; !; n; Estep, old rate s1.25. new 81;
r. a. H. Biddle, old rate 81, new $1.5o. And
this. rate is enforced by conspiracy and
confederation among the various companies
doing business In Indiana.
in Indiana and in the United States were
which would drive them out of business
less rates were raised. then they were JUS
ports which they have submitted and sworn
to do not seem to bear them out in their
assertions.
From these reports it would appear
that in eight years all companies doing
business in Indiana have
Collected III premiums. SO 7S7, S97
Showing an excess of premiums of. S. 2s5, 1858
THE losses for ten companies the whole
miums received. Now. if this is a larger
proportion of loss to premium received
than h that Of previous years. or if they have
rpnp
proportion, they are right in raising rates;
but what are the facts as shown by sworn
in the United States from 1860 to 1892, both
inclusive, received in premiums g. 1877
and paid for losses 81 142, 49, O4; excess of
loss to premium, 1852 to $lO0. or in ten
companies past eight years, AZ cents less
on the $lO0 than for the whole period from
1860 to 1892. Therefore, if there has been
any necessity to raise rates i'm the past
eight years that necessity has existed con-
till uncovered by the Indiana League of
Fire Underwriters. Let us again, however,
perity or distress of ten selected COM
panies during the period from 1860 to 1892
the selection comprising both great and
Aetna of Hartford capital, 100000;
dividends paid, 1896 per cent; total dividends
~ 500 600 surplus. $3.5ss.S7s; last sale per
Hartford of Hartford, capital, 81. 10000:
dividends paid, 492 per cent; total dividends,
20 lsoeo; surplus, S2,S7o9s0; last sale per 500,
Springfield Fire and Marine. capital. ST.
5oo, coo; dividends paid, 265 per cent; total
dividends; $4,000; surplus $5S4,710 last
'tPennsylvania. Philadelphia, capital. $780,.
eco; dividends paid, 80 Per cent: total
aiyidenas, ls s,S surplus. N.ss4.sO7; last
.Buffalo-German. capital s2Oo. 900 dividends
paid, 40 per cent. total dividends, $751;. 900;
surplus, sTSO23; last sale per S1OO, 1920
Rockford, Illinois. capital, $20O.O diyi-
dends paid, S04 per cent; total dividends
81 $4,000; surplus, $685. TAG; last sale per 500,
German, Freeport, capital. 100000: aivi-
dends paid. 800 per cent; total dividends.
$500 600; surplus, sS97,ss0; last sale per 500.
Cincinnati, capital. $4,000; dividends
paid, 264 per cent; total dividends. 1896. 900;
surplus, s276l2; last sale per 800, $14o.
National Union, Washington capital
Sloo coo; dividends paid i42 per cent; total
dividends $4,000; surplus. $l55964; last sale
'.Pittsburg, capital, 100000: dividends
PAID 4o3 per cent. total dividends. S452, 900;
surplus. s16s,55s: last sale per 500. $3.50
Totals, capital $s1O0oO0 dividends paid.
a,szo per cent; total dividends, $50. 415, 900;
surplus. s10,213,622
These ten companies doing business on.
a tariff rate which was losing them money
and which had to be raised from so to 100
per cent so they could make a living We're
enabled :, on this losing business to pay in
dividends to their stockholders $50, All. 900,
and in addition lay by a surplus of $40, 2l0-
81. showing net profit of $45 62S s22, and
the stock of these poverty-stricken com
panies has been sacrificed at from $40 to
$Si5 per share of $1C0.
In 1892 there were sos stock companies
ana lS4 mutual companies doing business
In the United States. and these companies
had and held admitted assets of $40 65S 1876.
they had capital OF S760l5 7a0 and an adj
mitted surplus fund of $1os 533, 5S1 making
n total of capital and surplus of S1S4, 533, 5S1,
a surplus or over Sl00,oo0,o00 after the pay
ment of all losses, expenses and dividends
accumulated from starvation rates"
MeSsfs- Nicholson. Cartlwill White Will
loughby and Merritt spoke on the bill
Mr.. Leedy called attention TO the insurance
trust that had been debating to the people
Of the State during the last few wears
Rates had been increased in some cases
loo per cent. and in others 200 per cent
1t was a plain case of sandbagging Mr.
made defense of the com
panies. Chairman McGeath. of the commit
lee. is an Insurance agent. Before the
House had taken action on the report of
The insurance committee on the bill an adj
ournment was taken