The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-03-23
KNOCKED IN The HEAD
The Governor YetOsS Mr.. PdSChalS
Insurance Bill.
GIVES HIS REASONS FOR 1T
1t Is Claimed the Bill Was Ambigu-
Gus and Dangerous to the Best
Interests Of the People, as IL
Would Increase Rates.

HELENA, March Ex-Governor Richards |
late tonight vetoed house bill No. III, the |
insurance measure that has caused more |
discussion than any other act pass ed by |
the fourth legislative assembly. II was
the last bill to be considered and is his |
seventh veto of the acts of the late legis- |
lature. The governor, in his veto, which
is very volumlnous, gives his reasons for
not approving. He says he is convinced
it was not given careful consideration in
either house. Members of the senate
have informed him that the bill was never
read before that body, but was adopted on
the assurance that it meant an increase of
revenue to the state.
Tne governor says the bill would have
advanced very materially the insurance
rate in the state. The ambiguity of Sec
tions of the bill would require many de-
cisions from the courts. The requirement
compelling companies to invest 25 per
cent of their earnings IN this states secur-
tiles, is unjust, as is also the elimination
of warranty features. 1t gives the state
auditor judicial powers and entirely too
much authority. Ii would compel reputa-
BILE companies to withdraw from the state.
The insurance bill was the last act of
the Fourth legislative session to receive
the attention of the governor. He de-
ferrel final action upon it until the very
last day allowed by law, as he considered
it of very grave Importance and wished to
act with as much deliberation as possible.
Every opportunity has been given the
friends and enemies of the measure to
lay before the governor the var.ous rea-
sons why it should or should not become
a law. Many who have taken an interest
in the bill, either in opposition to it or for
it, have availed themselves of the oppor-
tunity to present in person their views or
by letter. The governor has spent many
hours in considering the measure. He
was engaged up to a late hour last night
in the task. The bill has undoubtedly re-
ceived more. attention from the governor
than any other passed by the Fourth leg
islative assembly. He cannot be accused
by any one of having acted hastily in the
matter.
| The bill met with great opposition from
| the start. Since its passage compara-
lively few friends have defended it,
Probably its two best friends in this city
are State Auditor Cook and A. j.. Steele.
There are number of others, but these
two gentlemen have done everything they
could do in support of the measure. If
| the bill had passed, Auditor Cook would
have been made the head of the insur-
| ance department. He would have been
given an extra clerk, at a salary of 81 800
year. Auditor Cooks main argument
| for the bill was that il would add to the
states treasury from $50, ,0c0 to $40, each
| year. Mr.. Steele, who, by the way, has
| about $4,000 in bounty warrants which
the state may pay some time If il gets
| little money to do it with, favored the bill
also for the reason that it would add to
the states revenues. Auditor Cook be-
leves the bill n wise one. He was op-
posed, however, to several amendments
which 1t seems are the most objectionable
parts of the bill and which were largely
| instrumental in bringing about the gov
ernor's veto.
The opponents of the bill were num-
bered by the hundred. Besides those per-
sons who saw the governor personally or
wrote him protesting against it, many
| signed petitions praying him not to sign
| il. Two of these petitions came from
| Helena and Great Falls. There were also
others. By far the largest received was
the one made up in Helena. 1t was signed
by large number of leading citizens,
men whose views would demand careful
consideration on any proposition.
THIS insurance bill. as most STANDARD
| readers know, created state insurance
department over which the state auditor
was placed as superintendent of insur-
ance. 1t defined the superintendent's
duties, and gave HIM vast amount of
authority over all the insurance compan-
les doing business within the state. 1t
regulates the companies manner of busi-
ness to q certain extent.
One of the amendments to the original
bill which made the measure particularly
Objectionable in the eyes of the governor
| Tba .,,
feature in insurance contracts. BY its
provisions, if it held good in law, a party
might obtain a policy by fraudulent rep
reservations and the company issuing the
policy would be obliged to pay even if
fraud was discovered.
Another clause, requiring all insurance
companies to invest % per cent. of its
earnings made within the state in state
securities, is of doubtful legality. A num-
ber of lawyers hold that such provision
is unconstitutional. Several companies
have notified the governor that if such q
clause went into effect they would refuse
10 comply with it and would withdraw
from the state.
The bill provides that any deficit in ex-
penses in the state insurance department
created is 10 be paid by the companies
doing business in the state, each com
| pany's assessment to be in proportion to
the amonnt OF business done. The taxa
ton of the companies in the way of fees
is also very largely increased by its pro-
visions.
The measure certainly had good features
as well as bad ones. IL was IN the nature
of an experiment, however, and It is GER
tain most OF the people who have given il
consideration are glad the governor did
not permit II TO become a law.