Omaha daily bee., 1896-06-28
TtE coERcnE INSURANCE poLicr


The Chicago city council recently passed
an ordinance imposing Il tax of > per
cent on the gross receipts of all fire
Insurance companies that are not ILL
nOis corporations. Thcrcupon the undcr-
writer's raised the insurance rates i'll
Chicago by } per cent While there may
be some doubt as to the legality of Il
tax that discriminatcs between home
corporations and foreign corporations,
the attempt of the insurance trust to
impose penalties on all their policy hold
crS in the city of Chicago is high
handed proceeding. 1t brings up the
question whether these lawlrSs combines
shall absolutely dominate our local and
state governments by the cOercive
power of arbitrary rate raising. Under
our modern system fire insurance is rs
much Il public business essential to the
promotion of our public well being and
the protection of society as are public
and merchandise by railway or steam
ship. 1t is because fire insurance
has become Il necessity for our CONNER
Cial classes that insurance companies
seek to take advantage of the neces-
siticS of their patrons and compel them
to submit to unreasonable and unwar-
ranted eXactions Oh the very slightest
provocation. If Il state legislature en-
acts law for the better protection Of
policy holders the insurance trust raises
| the rates and seeks by that means to
force the repeal of the obnoxious law.
BY this policy Of so-callcd retaliation
the trust seeks to abrogate the sovereign
power of the state ana nullify it's laws.
Carried to its natural sequence,
| the policy Of coercion would enable in
Surnncc corporations not only to nullify
| laws regulating their conduct and man
agcmcnt even when designed for the
protection of the public, but also to de-
| feat AL laws that would tend TO create
| competition. 1t is this feature of the
underwriters trust that is most un-
| bCarablc and most dangerous to public
safety. If the underwriters We're merely
organized for mutual cooperation and
| protection against wildcat companies
| anu lllSNIiltt NItthtIS no ltuSDHil'lt
| person would object nor does any RI
| ti0nal person consider the cStab
| lishmcnt and maintenance of uniform
rates improper and against public
| policy. But these rates should be rea
sonable ana they should not be raised ut
| will. either as Il mater of spite work
against any policy holder or locality or
| for the purpose of increasing the income
of the corporation. The business of
fire insurance is Il quasi public business
which. unless conducted by the exist
ing companies with due recognition of
the rights of the public. will eventually
have to be conducted by the state for
the benefit and protection Of its peo-
pie In the Chicago contest the com
panies attempt to hold up the policy
holders just as the road agents of over
land stage days held up the passengers
of the stage coach They know that
| their patrons must have insurance ri
any rate and they compel them by the
stress of necessity to repay them more
than double the amount of the tax
which the city is trying to impose upon
them for the municipal protection which
they enjoy in common with all other
concerns doing business in Chicago.
Now. this city tax probably will never
be collected and if collected may be re-
funded under order of court. But
the ; per cent raise on Chicago policy
holders will be vigorously eXncted with
no intention to ever refund. 1t is this
highwayman'S feature of imposing and
| collecting high insurance tariffs that
! must be resented and resisted as an en-
croachment upon private rights. If
every other powerful interest that has
tight grip upon communities were al
lowed to pursue the same policy Oj
coercion our people would soon relaps
into the condition of the feudal ages
There is legitimate way of right
ing wrong and way of trying to
right Il wrong by perpctratng greater
wrong. If the Chicago city insurance
tax is II lawleSs imposition the insur-
ance companies should seek their re-
dress in the courts. If it is decreed
to be legal then let them submit and
obey the law instead of trying to make
the law odious by eXorbtant rates.