Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-10-13
O. What is fire insurance?

q, What Is fire insurance.
A. IL 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 em-
,loyed. one being through home mutual
sIsS ssocF cSmSknISs. va ~ ~
q. HOW many such companies arc do
ing business In KansasY
A. According to the last annual report
of the Commissioner OF Insurance there
were thirteen home mutual companies,
one old-llne home company, and hfty-
seven foreign companies,
O. How is the business OF these Tor
elgn companies conductedY
A. BY insurance agents and brokers'
O. What interest have the insurance
agents and brokers In the businessY
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.
O. How much money did these fifty
seven foreign companies collect In Kan
sas during the year 1897 in premiums?
A. 1886, 1046l.
O, How much did they pay back in
settlement Of fire losses?
A. S57S, G67 80, or little less than 81
por cent. ,..,
O. What was the aggregate loss to the
State for the year?
A. Sl,OO7 ,437 .22 In other words, the
State would have been over million
dollars better off had there been no such
thing as foreign fire insurance compa-
MES doing business.
Q. What became Of this million OF
dollars?
A. A part of 1t undoubtedly went to
the stockholders Of the company, but
the bulk of 1t was used up In supporting
large and useless army of insurance
agents, adjusters and attorneys.
O. What is the great objection to this
system Of insurance?
A. II costs too much.
@. 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.
q. What would be the result OF estap-
| fishing State insurance?
A. First, It would reduce the cost to
the insured at least one-half.
Second, 1t would do away with the me-
cesslty for foreign insurance companies
with all the expense Of officers, commits
sions, advertising, lobbying, and lega
expense Of contesting just claims, anC
compel these companies to furnish In
surance at actual cost or quit the bust
ness.
Third, IL would be absolutely safe.
Fourth, its reduced cost would enable
more property owners to secure the ben
efits Of insurance.
Fifth 1t would have tendency Il
bring all the insured property OF thu
State to the assessors books at Its rea
valuation.
Sixth II would do away with the the
ory that when q policy holder met will
loss that he must be considered guilt!
of burning his property until he coult
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 banl
system has been that 2.S per cent, GOV
cred the cost of administration (se'
New Time" volume l, page 399).
O. Under State insurance would
property owner be required to insure
whether he wishes to or not?
A No; 1t would be optional with him