Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1898-10-12

Q. What is fire insurance?
A. 1t is a system whereby loss arising
| from destruction by fire may be distrib-
uted evenly throughout the community
instead of falling entirely upon the per-
son who owns the property destroyed.
@. How is the system conducted?
A There are two methods now en-
plcyed, one being through home mutual
companies, and the other through for
eign stock companies.
@. How many such companies are do
ing business in Kansas?
A. According to the last annual report
of the Commissioner of Insurance there
were thirteen home mutual companies,
one old-line home company, and fifty
seven foreign companies.
@. How is the business Of these for
eign companies conducted?
A. By insurance agents and brokers.
@. What interest have the insurance
agents and brokers in the business?
A. They have no real interest, pecu-
mary or otherwise, in either the profits
of the company or the reduction of rates
to the insured. They make their money
out of the commission charged for doing
business.
@. How much money did these fifty
seven foreign companies collect in Kan
sas during the year 1897 in premiums?
A. Sl,5S0,lU4.ol.
Q. How much did they pay back in
settlement of fire losses?
A. $578, $685. or little less than SO
per cent.
@. What was the aggregate loss to the
State for the year?
a. 81, 007. 1922 In other words, the
State would have been over a million
dollars better off had there been no such
thing as foreign fire insurance compa
MES doing business.
@. What became of this million of
dollars?
A A part of it undoubtedly went to
the stockholders of the company, but
the bulk of it was used up in supporting
large and useless army of insurance
agents, adjusters and attorneys.
@. What is the great objection to this
system of insurance?
A. 1t costs too much.
Q. What remedy has been suggested?
A. The Peoples party of Kansas pro-
pose to wipe out this expensive machin-
cry and furnish the people of the State
insurance at cost as State function.
@. What would be the result Of estab-
fishing State insurance?
A. First, it would reduce the cost to
the insured at least one-half
Second, it would do away with the ne
cessity for foreign insurance companies
with all the expense of officers. commits
sions. advertising, lobbying, and legal
expense of contesting just claims, and
compel these companies to furnish in
surance at actual cost or quit the bust
ness.
Third, it would be absolutely safe.
Fourth, its reduced cost would enable
more property owners to secure the ben
efits of insurance.
Fifth. it would have a tendency to
bring all the insured property of the
State to the assessors books at it's real
valuation.
Sixth, it would do away with the the
DRY that when a policy holder met with
loss that he must be considered guilty
OF burning his property until he could
prove his innocence
Q. What would be the cost of such in.
Surance?
A. 1t would be very low. The expert
ence of the British deposit savings bank
system has been that 2S per cent. COW
cred the cost of administration (see
New Time" volume 1, page 399).
@. Under State insurance would
property owner be required to insure.
whether he wishes to or not?
A No; 1t would be optional with him.