The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1900-09-07

law comes in the character OF public
clamor, based upon false idea, and 70
IS never safe to yield TO clamor OF
any sort. Such measures always react
with terrific force"
Similar bills have been introduced
in the Iowa legislature at nearly every
session for years. but painstaking
investigation OF the subject has hereto
fore saved the people OF this state from
what / believe would prove a calam-
ity, and / doubt not the same result
would have followed the bill this year
as heretofore had time permitted more
elaboration.
Nor is this all. The insurance COM
missioners Of every state. | think.
where such laws exist, have repeated
ly called attention to their unfortunate
effects The insurance commissioner OF
Ohio, in 1895, in his annual report,
uses this language: 81 fear that the
heavy loss ratio in this state can be
traced to some OF the obnoxious legis
lation enacted with reference to insur-
ance companies" In further explana-
ton of his views, he copies into his re-
port letter which he wrote to an OH
cial of another state making inquiry
as to the effect of the valued policy
law in Ohio. In the course of his let
ter, he says: ITO say that fires have
steadily increased since the enactment
of this obnoxious law is TO put 1t mild
1xy Tn nd MI ouoht n
receive from the insurance company a
dollar more than his actual loss.
The legislature OF Ohio ought
to have repealed the law years ago.
The rates have steadily in
creased since the enactment Of this
law, clearly showing that the honest
people in the end are compelled to pay
for the dishonest losses. The existence
Of this law in Ohio has, in my judg-
ment, been the cause of the destruc-
ton OF hundreds of thousands of dol
lars worth of property belonging to
innocent persons"
The insurance commissioner of Wis
consin, criticising this law in his re-
port of 1895. says: THE very founda-
tion principles Of fire Insurance are
opposed to such a law. Fire insur-
ance is indemnity; it should never bd
gain;' 1t is intended only to make
good the actual loss sustained. and to
make company liable in case Of total
loss for the full face of the policy ir-
respective of the value of the property,
has been the means of increasing the
number of fires, and has compelled
the payment Of thousands of dollars.
thus increasing the rates to the honest
man."
In 1894 the superintendent Of insur-
ance IN Missouri, after describing the
law and its effect, says: This is SIM
ply an incentive to perjury and arson.
Neither the insurance company nor the
insured should be permitted to enter
into such contracts. The law
should require that every person
should help to insure his own PROP
erty."
The insurance commissioner OF
Michigan. in 1893, warning the legis-
lature against unhealthy legislation.
says: Among the most obnoxious OF
these acts, on the statute books OF
some of the states, the one attempting
to do up the business, by what ID
known as the valued policy law, stands
pre-eminent as an example of legisla.
tive folly 1t should be in all cases en-
titled An act to encourage incendiarI
ism and facilitate the business Of SELL
ing out to insurance companies at in
flated prices"
Similar quotations might be multi
piled almost indefinitely. Insurance
commissioners are certainly well quail
fed to speak, and their utterances
should be accepted as made In behalf
of policy-holders, rather than in the
interest Of policy writer's.
The proposition to amend the con-
stitution so as to provide for biennial
instead of annual elections, seems to
be conceded on all hands certain OF
adoption. This will result in the Goth
General Assembly, being composed OF
the same men who constituted the
2Sth General Assembly, and the pres
ent Chief Executive will be continued
in Office pending that session. II upon
further investigation it shall be
deemed wise to re-enact this bill, IL
will not be necessary to pass 1t over
veto, for it will be promptly signed. I
simply avail myself of my prerogative,
and re-submit the bill to the same men
who originally passed it, that they,
pending the delay, may make such in
dividual investigation as may be
deemed expedient, and thereafter take
such action as shall to them seem
wise, and for the best interest of the
people of this commonwealth.
LESLIE NJ. SHAW
May 5th, 1900. Governor of Iowa.
The importance of the subject is my !,
apology for the length of this article.
1 believe, however, it is worth the
space and hope it is now clear to your
many readers.
INSURANCE AGENT.
August 30th. 1900.