Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-05-10
The BILL IS VETOED
Governor Shaw Refuses to Sign
Valued Policy Measure.
HE GIVES HIS REASONS FOR REFUSAL
Lengthy Document Appended to Veto
Tells Why He Would Not Approve
Rill-Thinks IL Should be He.
considered by Legislature.


considered by Legislature.
Des Moiues May ESPECIAL. y
Governor Shaw this morning filed
with the secretary of state his veto
of the insurance measure, widely
known as the valued policy bill" The
veto was accompanied by a lengthy
explanation, part of which 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
Dry, but the practical and actual eff
feet of these laws is obtainable. 1
have availed myself of the statutory
period allowed me to make such in
vestigation. Representatives have been
sent to several states where similar
laws are in force, and large amount
of evidence has been, gathered. have
in my possession the sworn record Of
over 500 policies, collected in the
southern tier of counties in Iowa and
the northern tier of Missouri, giving
the company, the number of the pol
icy, 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 property is iden-
teal. 1t is impractical to set out this
evidence in detail; but submit a syn
opsis of the same as an appendix here
to, and the affidavits will be subject
to examination by anv 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 pol
! icy lawn many instances it has been
doubled, and in some cases consider
ably more than doubled. For instance,
I have the affidavit of eleven business
men of Kahoka, stating under oath
| that farm rates in Clark county, Mis-
souri,, have been doubled since the
passage of the valued policy law; and
an equal number of business men in
Lancaster swear to the same state of
facts in Schuyler county of the same
state. Similar. results are shown to
exist in each of the counties compris-
ing the northern tier of the state. I
am further creditably informed that
there are whole counties, if not blocks
of counties, in that state, where farm
ers are unable to obtain insurance at
any rate or on any terms. The same
effect, tho not in SO marked degree, is
shown by letters and correspondence
in my possession, and personal inter-
views in such portions OF Nebraska,
Minnesota and Wisconsin, as / have
been able to investigate.
| Zone other feature is worthy Of con-
sideration. When the law was first
passed in Missouri it. was general in
its scope, and applied, as does this bill,
| to all insurance companies and asso-
ciations. Immediately large number
of companies withdrew from the state,
and mutual associations sprang up in
many counties. Tho local in their ma
ture, these associations found it inn
possible to operate in the face of this
law, and united in securing an amend
ment expressly eNempting that class
Of associations from the operation Of
the law.
THE argument quite generally re-
| lied upon in support of the law is the
proposition that when an insurance
company charges and receives pre-
MUM for given amount of insurance,
it should in case of loss pay the full
amount contracted for, and that there
is no reason why any insurance COM
pany should not deliver all that it
has received pay for that would not
apply with equal force to any mer-
camille transaction. I think those who
rely upon this proposition misunder-
stand the nature of insurance. Sup
pose the contract provided that the
company should indemnify the assur-
ed against all loss or damage not to
exceed stated amount-the face of
the policy. Would any one claim such
a provision unjust? We already have
a law which makes the amount of the
rancegpresumptive evidence of the
value of the property, and the burden
| is placed upon the insurance company
to prove affirmatively that the proper
tv is worth less than this amount;
and in no instance, think, has jury
ever failed to find adversely to the
company on this proposition. I be-
lieve this provision goes to the limit
of safety. There is no escaping the
proposition that the insured must pay
all losses, and any law that has the
effect oincrease the hazard must nee
essarily increase the rate. In my
Judgment the state that secures the
minimum rate will be that state that
provides uniform policy, to be used
b. all companies, and that limits the
amount of recovery to three-fourths
Of the actual loss. True insurance is
indemnity. Nothing in excess of ac-
tual loss should ever be cellectible. In
order to reduce the loss to the mini
mum, there must be some inducement