Kansas City daily journal., 1897-02-10
T'pI |
Bar. IA PM Pre-. lW'th'r
Stations.
DRIVING our INSURANCE COMPANIES

With possibly an intention of displaying
the rot altogether creditable fact that he
IS politically alive and on earth, Webb Nc
Nall. the new insurance commissioner of
KonsGs, has caused to be introduced i'll
the legislature bill for the regulation of
foreign insurance companies doing busI-
ness in that state.
II the telegraph properly describes the
measure, 1t is just about such a one as
might be expected from a smaIl-bore politi-
clan catering to the iconocIastic frenzy
which is just now sweeping Kansas. 1t
provides that every foreign insurance COM
psny doing business within the state shall
be forced to invest in Kansas securities mt
least so per cent of the receipts annually
raised from Kansas policy holders. If cor
rectly reported, the bill does not refer TO
profits or surplus funds. but to receipts"
and therefore contemplates the investment
of one-half of the total amount of pre-
miums paid each year within the state.
1t need hardly be explained that the
profits TO insurance companies dc not
amount to SO per cent of their total receipts,
and that to compel them to invest such
proportion would put it beyond their power
TO pay losses. Neither is it necessary TO
state that. in all probability, the COM
panies would peremptorily refuse to be die
tated TO as 10 what, where, and how much
Investments they should make. even if
physically able to comply with the law,
and the inevitable result would be their
withdrawal from business in Kansas. The
penalty prescribed by the McNan law is
that all companies declining to make the
required investments shall be denied IL
cense to do business, and it is no doubt
his idea that, sooner than work such
forfeiture, they would stand any imposi-
ton, however monstrous. This, however, is
not TO be believed for moment.
Superintendent McNaIl has but little con-
ception of the relative rights and duties OF
the insured and the insurers, or he would
never assume at the outset that an insur-
ance company could be legitimately divert
ed into a money-lending agency at the will
Of legislature. The business of an insur-
ance company is to pay losses to the people
when they are visited by fire. Its full mis-
sion is performed when such losses are
paid. Its obligation is to make such pay
mcnts sure. and the people who pay it
money have no further interest in fits man
aEement. Its right is to govern its own
capital in its own way, and when 1t is
sought to compel It to transact business to
the benefit of the people in another drec-
tion, against its own sense or the proprie-
ties. It is not only relieved in a measure
OF its legitimate responsibilities, but at the
same time is made the victim of proceed
ure which. carried TO its logical sequence,
might result in utter destruction with an
accompanying loss of redress to the policy
holders.
In short this proposed insurance law is a
two-edged sword which will certainly cut
in both directions. In it, as in many other
measures. the Kansas Populists are MAX
ing the terrible mistake of supposing that,
however severe the injury put upon oapi-
tai. capital must grin and bear it. They
do not realize that the most sensitive thing
in the world is the element known as bus
mess" They falsely assume that It has
fixed metes and bounds and barriers
through which it can not break, and that
when their smashing and mauling is fin
ished it will still he there. They are con-
founding restriction with determination
and license with coniscation.