Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-04-13
VALUED POLICY Law
Governor Shaw Hears Arguments
Pro and Con on the Insur.
ance Law.
Urged by Many Insurance Men to
Veto the Measure Would
Raise Rates.
Opponents Of the Law Say it Will
Greatly Increase the Crime of
1ncendiarism.
Opponents Of the Law Say it Will

Incendiarism
Des Mones. April Ex-Governor
Shaw yesterday listened to Insurance
men arguing against the valued policy
law. Having passed the legislature,
the measure now awaits only the exec
sutive signature to become a law and
the insurance men are urging that il be
vetoed. Fully a score Of insurance men
or lawyers occupied the governors p1i-
waite office during the three hours de-
voted to the hearing. The delegation
from Ileolluk was headed by Hon. s.
NJ. Clark. Who Was The first speaker.
sOthers from thatcity We're Judge Will
liam Logan, president of the State
Central Savings Bank and vice presi-
dent of the State Insurance Company
Asaph Buck. of the Buck-Ryan Grocery
Company; James G. Davis, attorney:
Wiil NJ. Irwin, of the lrwin-Phillips
Dry Goods Company; Judge H. H..
Trimble, DR. j. II. Smith. president of
the Farmers. of Cedar Rapids; Capt j.,
s Clark of the Anchor of Des
Moines.. w. r. Hartford. manager for.
the Aetna: w. G. Miller and several
otheh. insurance men. The advocates
of the controversial bill We're represent-
ed only by Senator FL. III. Brighton, of
Fairfield.
Al the conclusion of the hearing Mr..
Brighton expressed the opinion that
nothing whatever had been brought
out 10 warrant the governor IN veioing.
the bill. He said he was rather SUR
prised at the weakness Of the case
made by SO many strong men, who. as
a matter of fact did not present so
strong a showing as they did before
senate.
Congressman Clark was the first
speaker He had no interest in the in
surance business. he said, except as
every other citizen is Interested in a
business which reaches every line of
industry and perhaps Immediately con-
Gems mere people than any other busi-
ness or profession. He was convinced
that Il valued policy law was wrong in
principle. dangerous in application and
Vicious IN results. Its certain result
was IA increase the moral hazard: 70
Increase the tendency toward incen-
diar1siil. He urged the governor that
The interests of the whole people Of
Iowa would be conserved by vetoing
such a piece Of legislation.
Judge William Logan made a de-
tailed comparison Of rates in Iowa and
Missouri. the latter having valued
& paiicy Law. The Missouri law is ten
| years old. Under its operation the
4 premium rate has raised. on detached
4 frame farm buildings, from Sl.50 e
/ SIZE insIoWa the rate for risks or
{5non-W Watt. works towns, frame store
buildings IN rows. is from 1l4yioll. per
cent. III Missouri. for exactlS the same
CLASSES of risks. II is 3 per cent On the
< very best class Of risks. brick resi-
iFdeflces. detached, With nletal roofs. in
first class 84tar works tafylfs. the lowa
4 ana Missouri rates are nearly the
4 same. The CASE of the Town Of Line
WIN e Was2 given as AM llustraton.3 Judge
+ Logan said that the state line between
iIowa and Missouri runs thru the cen
! Ter of the main street. On one side. in
Iowa. the business men pay ~ per
icent: on the other side. in Missouri
j they pay per cent on exactly the same
/ risks The result is that the business
linen are carting their frame buildings
y get the cheaper rates. In Union City
/ Ind. which5is likewise divided between
the states of Ohio and Indiana, ,he
valued policy Law and the Indiana part
Hiof the town pays lower rates.
y On the north line of Iowa. Judge l.o.
on the Missouri border, Minnesota hay.
ing a valued policy Law. Judge Logan
Il could not state the difference in rate.
between Iowa and Minnesota, but an
other gentleman present said that o,
a detached farm property n policy tina
cost 80 IN i5Na would cost SO in Min
:, nesota.
In Missouri, according to Judge Lo
\ gan, people can hardly secure insur
ance; the moral hazard has so in
creased that the companies will no
lake any except the best selected risks
His own company never did business j
the state till Year ago, and then i
was offered so much that il was almos
frightened out. To furnish themselve
"A insurance the people of the state hau
been organizing county mutual associa
tons. These. get along nicely till a bi
loss comes along. then they break w
"A They are, however, excepted from tn
valued policy law, and pay 10 per cen
3 of the appraised value of the loss in a
: cases. Judge Logan said it would cos
Iowa from s2,50000o to s3,OOO,OOO yea
Ito maintain valued policy law.
Judge Trimble spoke against such
law, saving that While the insuranc
> companies are accused of unfairnes
with their patrons. he considered til
companies, We're fully as good as thos
who insured in them. This law he cor
: sidered premium on incendiarisn
True, such a measure is a fascinatin
. and plausible one: once enacted int
Z law it will be a difficult one to get re
& Ipealed. But he believed 1t was hast
and ill-considered measure. Compl
menting Senator Brighton, it's autho
he said he didn't honestly believe this
Mr.. Brighton could take great pei
/ sonal interest in the measure or cor
) slider ii a. desirable piece of Legislation
Senator Brighton followed. He r,
I piled to Judge Trimble that he did tai
a great deal of interest in this mea.
ure and that he considered 1t mo-
wise, prudent ard desirable bill. +
argued that there was no reason *
excusing an insurance company fro
4 fulfilling the contract which it make
while every other business on earth
expected to live up to the letter ar