Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-05-05
SHAN VE|O[S TIE Bill
Governor Shaw Decides Not to Ap.
prove the Brighton Valued
Policy Law.
Decision Arrived at After Thoro
Investigation Into Meriis Of
the Measure.
Text Of the Veto Message and Sum
mary Of Arguments Against
the Law.
,pecial to Times-Republican,

Special to Times Republican.
Des Moines, May 5.Governor Shaw
has decided to veto the valued policy
bill. He announced his decision today,
it being the last day allowed him for
consideration of the bill. AS it was
passed during the last three days of the
session, he is allowed thirty days after
final adjournment to approve or dis
approve the bill. The governor has for
titled himself behind thorough investi-
CATION into the merits of the bill and has
based his decision in regard to 1t upon
its operation in other states. He finds
that it has resulted in raising the price
of insurance. His. investigation shows
that in other states where this law is in
force very much higher rates of interest
are charged than in Iowa. He is salts
fled that it would not result in benefit
ing the people of the state who have to
pay for insurance, but would on the con-
trary add to their burdens. He has pre-
pared a very strong summing up of the,
facts which is given out along with the
announcement of the veto. His position
is ably sustained in this statement.
Governor shaw's veto of the valued
policy bill was filed just before noon
today. prior to the expiration of the.
time allowed by law for executive ap-s
proval or disapproval of bills passed in
the last~three days of the legislative
session After referring to circum-
stances surrounding the passage of the
bill, the governor says:
Laws Of this kind are not novel. They
are found on the statute books of sever
al states, and. fortunately, therefore, We
are not confined to theory, but the prac-
! teal and actual effect of these laws is
obtainable. have availed myself of the
listatutory period allowed me to make
such investigation. Representatives
lhaSe been sent to several states where
similar laws are in force, and a large
amount of evidence has been gathered.
\ L have in my possession the sworn rec
ord of over 500 policies. collected in the
4 southern tier of counties OF Iowa and
the northern tier OF Missouri, giving the
company, the number of the policy, the
|amount and rate, and the name Of the
assured. These reports cover insurance
written both prior and subsequent to the
)enactment OF the valued policy law in
Missouri, and in many instances the
l property is Identical. 1t is impraoticable
Ito set out this evidence in detail, but l
submit a synopsis of the same as an ap-
4 pendiX hereto. and the nfiidavits Will be
llsubject to examination by any one de-
Isirirg to investigate the question fur
ther. TO my mind they are ash conclus-
live as suth evidence can be that the
L.
ally increased by reason of the valued
policy lawn many instances it has
4 been doubled, and in some cases consid-
sleraniy more than doubled. For instance
Il have the affidavit of eleven business
men of Sahoka, stating underso oath tha,
i farm rates in Clark county. Mo-, have
4. been doubled since the passage of the
4 valued policy law; and an equal num-
4 ber OF business men in Lancaster swear
to the same state of facts in Schuyler
4 County of the same state. Similar re-
suits are shown to exist in each of the
counties comprising the northern tier oi
/. the state. am further credibly inform
ed that there are whole counties. if no.
blocks OF counties, in that state, where
farmers are unable to obtain insurance
at any rate, or on any terms. The sam,
II
shown by letters and correspondence il
Ilny possession and personal interviews il
such portions of Nebraska, Minresot;
! and Wisconsin as / have been able t.
investigate.
.Onc other feature is worthy OF con
& sideration. When the law WAS frs
Ipassed in Missouri 1t was general In it
scope, ard applied, as does this bill I,
Il all insurance companies and associa
n SItions. Immediately q large number o
companies withdrew from the state, an,
j, mutual associations sprang up in man,
counties. Tho local in their nature thes
associations found 1t impossible to oper
late in the face OF this law, and united Il
securing an amendment expressly ex
Z tempting that class Of associations fror
!, the operation of the law.
THE argument quite generally relie
upon in support of the law is the prop
= gosition that when an insurance com
. pany charges and receives premium
& for a given amount of insurance |
!, should, In case of loss, pay the fu
!, amount contracted for. and that ther
= lis no reason why an insurance com
a lpany should not deliver all that 1t ha
received pay for that would not appl
. with equal force to any mercantil
transaction. think those who rel
! upon this proposition misunderstood tn
, nature Of Insurance Suppose the con
! tract provided that the company shoul
!, indemnify the insured against all los
! or damage not to exceed a state
amount-the face Of the policy. Woul
any one claim such a provision unjust
We already have a law which make
y the amount of the insurance presump
: tive evidence of the value of the prop
r. erty, and the burden is placed upon til
q Insurance company to prove afilrma
: lively that the property is worth les
d than this amount; and in no instance
n think. has jury ever failed to fin
\ adversely to the company on this prop
osition. believe this provision goes I
the limit of safety. There is no oscar
!. ing the proposition that the insure
= must pay all losses, and any law ths
e has the effect to increase the hazar
Il must necessarily increase the rate. l
i. my Judgment the state that secures ii
l. minimum rate will be that state thl
) provides uniform policy. to be use
a by all companies. and that limits Il
lamount Of recovery 70 three-fourths .
"a Iats