The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1900-09-06
From the Standpoint Of An
Insurance Agent


Mr. Editor AS an insurance man,
1t is a duty 1 owe myself and the pub
lie to answer Property Owner" in his
inquiry as to why companies object to
the Valued Policy Law
The annual destruction of property
in this country by fire is appalling In
the last eight years it has exceeded in
amount what the national debt was
the beginning of this year, to wit.
over one billion dollars. 1t is attribut-
able in part to improper construction;
to Inadequate fire e1tInguishing facili-
ties and to fncendiarism. which latter
generally goes UNPUBLISHED by reason
of the public not realizing they them
selves are the parties who are taxed
10 pay such losses, 1t being apparent
that the destruction of property by fire
Is q direct loss to the community and
the state 1t wipes out of existence so
much taxable property; much
eumulated wealth and. if insured. the
public pay for it in the end in the
shape OF an insurance tax of which the
companies are simply the collectors.
This is clearly set forth by Gov.
Shaw of Iowa vetoing this year an
Iowa Valued Policy Bill that L quote
from it as follows:
Laws of this kind not novel.
They are found the statute books
OF several states. and fortunately,
therefore. we are not cOnnned TO the
<ory, but the practical and actual effect
of these laws is obtainable. have
aYai1ed myself of the statutory period
allowed me to make such investigation.
Representatives have been sent to sew
era1 states where similar laws are in
force. and a large amount of evidence
has been gathered. I have in my pos
session the sworn record of over 500
policies, collected in the southern tier
of counties O. Iowa and the northern
tier of Missouri. giving the company,
the number CT the policy. the amount
and rate, and the name of the assured.
These reports coye- insurance written
both prior and subsequent to the en-
actment of the valued policy law in
Missouri, and in many Instances the
property is Identical. It is impractl-
cable to set out this evidence in detail.
but submit a synopsis of the same
as an appendix hereto, and the am
davits will be subject to examination
by any one desiring to investigate the
question further. To NV mind they
are as conclusive as such evidence can
be that the rate of insurance has been
very materially increased by reason of
the valued policy lawn many in
stances it has been doubled. and in
some cases considerably more than
doubled. For instance 1 have the .a.ffi-
davit of eleven business men of Ka-
hoka. stating under oath that farm
been doubled since the passage of the
valued policy law; and equal mum
Der of business men in Lancaster swear
to the same state of facts in Schuyler
county of the same state. Similar re
suits are shown to exist in each of the
counties comprising the northern tier
of the state. I am further credib1y in
formed that there are whole counties
If not blocks of counties, in that state
where farmers are unable to obtain
insurance at any rate. any terms
The same effect. though not in sc
marked a degree, is shown by letters
and correspondence in my possession
and personal interviews in such por-
tions of Nebraska, Minnesota and Wis
consin, as l have been able to inyesti-
gate.
L would promptly sign the bill IL
were not convinced of its evil effect
and il I were not quite sure if once
placed upon our statute books it would
remain forever. If rates were tc
gradually advance. they surely
would. popular opinion would charge
the companies with having formed a
combination. Few would be ready to
| admit the element of self defense. The
bill is not rejected in behalf of insur-
ance companies. but because such In
veSti cation I have been able to
make cOnvfnces that it increases
| insurance rates far out of proportion
| to any possible advantage that may be
gained thereby
| In 1893 Gov. Pattfson, of PennsyI-
| vania, vetoed a similar bill, and in the
| course Of very able argument in sup
| port of his action. said: "Over-insur-
| ance and GENERALIZATION are conducive
to fraud, perjury and arson; they breed
crine-the most dangerous and demon
| aIizing Commonwealth which in
| obedience to false public clamor,
| have migrated a contrary principle
| upon their insurance laws have reaped
| the whirIwind, and in the end honest
| insurers have to pay the penalty in
| increased rates The experience Of our
| sister and neighboring state of Ohio
has been that under the valued policy
Depew Repeated His Speech
| Senator DepeW in making aneech