The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1900-09-07
From the Standpoint Of An
Insurance Agent

Mr.. Editor: AS an insurance man,
II Is a duty 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 1t 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 extlnguishing facili-
ties and to incendiarism, which latter
generally goes unpublished by reason
of the public not realizing they them
selves are the parties who are taxed
to pay such losses, it being apparent
that the destruction of property by fire
is direct loss to the community and
the state. 1t wipes out of existence so
much taxable property; so much &C
cumulated wealth and, if insured. the
public pay for II in the end in the
shape Of an insurance tax of which the
companies are simply the collectors.
This is so 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 are not novel.
They are found ON the statute books
of several states. and fortunately,
therefore. we are not confined to the
,ory, but the practical and actual effect
Of these laws is obtainable. l have
availed myself of the statutory period
allowed me to make such investigation.
Representatives have been sent to sew
eral states where similar laws are in
force. and large amount Of evidence
has been gathered. l have in my pos
session the sworn record Of over 800
policies, collected in the 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 cUye- insurance written
both prior and subsequent to the ell
actment Of the valued policy law in
Missouri, and in many Instances the
property is identical. IT is impracti-
cable to set out this evidence in detail,
but I submit synopsis of the same
as an appendix hersto, and the aftl-
davits will be subject to examination
by any one desiring to investigate this
question further. To my 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, have the Sffi-
davit of eleven business men OF Ka-
hoka, stating under oath that farm
rates in Clark county, Missouri, have
been doubled since the passage of the
valued policy law; and an equal num-
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 l am further credibly in
formed that there are whole counties,
II not blocks of counties, in that state,
where farmers are unable to obtain
insurance at any rate, or on any terms.
The same effect, though not in so
marked degree, is shown by letters
and correspondence in my possession,
and personal interviews In such por-
t;ooa 10 Nahrorlo. M;npasoto opd Hyfc
consin, as / have been able to investi-
gate.
would promptly sign the bill If I
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 to
gradually advance, as 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
vestigation as l have been able to
make convinces me that it increases
insurance rates far out of proportion
to any possible advantage that may be
gained thereby.
In 1893 Gov Pattison, of Pennsyl
yania, 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
crime-the most dangerous and demon
alizing. Commonwealths which, in
obedience to false public clamor,
have migrated contrary principle
upon their insurance laws have reaped
the whirlwind, 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
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