The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-04
wild-cat VS.. sound Insurance.

To the Editor of the Indianapolis Journal:
In insurance parlance a bogus insurance
company is termed a wild cat, and II has
been the aim of the Indiana Legislature
heretofore to exclude all companies not pos
sessing the requisite capital TO afford the
citizens of the State comparative security
in the acceptance of their policy contracts.
In this respect the law has met fairly Wen
the intended requirements, so far as it con-
Germs companies voluntarily meeting its re-
uuirements. But. Unfortunately, the law is
weak in respect TO those companies, whether
possessed of capital or not, ehoos-
Ing to do business in the
State without soon applying TO the
proper authorities for admission or contrib
uting in any way to the revenue of the
State, while the law-abiding companies,
processing character as we'll as capital, are
contributing about $3.50, N0 annually in taxes
and fees. These bogus companies, known
as wild cats, find it inconyenient to pursue
their calling without the sanction OF Law,
listing laws, by which the standard of Sc
curity that has stood for many years as a
cred.
Most wildcat companies claim a capital
of 500, 600, made up, however, in most in
stances, of worthless. securities, and in the
editorial which appeared in the Journal of
the LIST inst. contained a most plausible ar
gument favoring them, had 1t been based
upon a true statement of facts. 1t is not
true that under the present law companies
are required to possess capital stock of $780,
eco; only certain designated securities every
where recognized as safe, and affording fair
protection to policy holders, aggregating
S300, 000, are required. For instance, sound
mutual companies, without a dollar of cap
ital stock, but possessing S200,000 of con-
yertible securities, have been freely adj
mitted and for many years have been doing
a legitimate business in Indiana, and some
of the largest and best companies in the
United States, operating in the State ever
since the insurance department was estao-
lished, do not profess a dollar of capital.
Evidently the writer in the Journal misin-
terpreted the law.
If the Journal has seen the reports of a
dozen fire insurance companies with a cap
ital stock of 500, 900 or $i50,0G0, each of which
had a surplus available for policy holders
securities as, under the present law, are
deemed safe, there is nothing to hinder
these from at once filing their statements
and being admitted to do business In the
State without any modification of the law:
All now required OF such companies is legal
All such companies are now admitted,
whether possessing capital stock or are do
ing business upon the mutual stock plan.
Why. then, this clamor for lowering the
standard of security hitherto deemed proper
for the protection of citizens dealing with
foreign corporations? Evidently there is no
reason consistent with SOUND business trans
actions.
IL it is the purpose of the proposed law
to make Indiana a paradise for broods of
companies like the West Virginia Wild cats
now engaged in robbing the people wherever
they can find a hunting ground, that pur-
pose will have been accomplished as soon
as the proposed changes in the law are af-
lost sight of in the alleged $l0o,eoo capital
requirement. II. c. MARTIN.
TudianaDcliSZ Feb. 9 M