The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-26

before the Credit Mems Association of Buff
falo, and in the course of his remarks he
said:
Credit insurance is an economic move
ment in the right direction There is moth
Ing in it to encourage loose practice in bust
ness; there is everything in it to induce care
and such conservatism as is consistent with
legitimate commercial activity and healthy
business progress. To the merchant adopt
Ing 1T. IL means collateral on every account;
absolute protection to profits, more ability
to meet competition, increased certainty in
the collection department, decreased worry
in connection with granting credits, security
rom unforeseen, unavoidable losses, 10
which danger he is exposed every hour In
the year. a guaranteed guide to assist in
passing on credits, the ability to figure the
maximum risk on credits during the coming
year with the same certainty as rent. labor
or any other fixed item Of expense, in
creased value Of the book accounts, because
the policy Is an Endorsement of each ac-
count, cooperation in building UP certain
system of Insurance which does more to di-
rectly establish confidence and stimulate
trade than any other insurance, the adop
ton of system which benefits every part
Of the business which II touches and which
touches every part. 1t is better to have il
always and not need IT than TO need 1T once
and not have Ii.
The last month of the year and especially
the last week are strenuous times for all
who are connected with the home Offices of
insurance companies There is a growing
rivalry on the part of the majority of COM
panies to demonstrate the efficiency of their
office systems by the promptness with
which they make public their annual state
ments, A few, and among them some of
the largest companies, have been publish
ing their complete statements on the morn
ing of Jan. l for several years. To do this
it is necessary to adopt a system of book
keeping for the office which will make it
possible to determine at the close of each
day the standing of the company. At the
last meeting of the State insurance COM
missioners, it was decided that the annual
statements Of the companies should show
their condition at the close of Dec. 1. Some
companies had made a practice of holding
their books open for several days into jan
uary in order that they might add some of
the business which had been slow in closing
and which could not be reported to the
home Office before the close of the year.
This practice was considered by the COM
missioners as undesirable because ii re-
tarded the work of the State insurance de-
partments and prevented the compilation of
accurate data as TO general results, while
1t also was temptation TO some compa-
MES to manipulate their returns for the year
In order to make a good showing in COM
parison to previous years.
Insurance Commissioner Host. of Wiscon-
sin, has been led by the example Of InSur
ance Commissioners Barry, of Michigan, to
begin a campaign In his State against the
practice of life insurance agents of rebat
the same argument that was used in Mich
igan-that the acceptance OF a rebate on
the part of a policy holder voids the
tract.
Mississippi is striking example of what
inimical insurance legislation will do. In
an effort to correct supposed evils the law
| makers of that State passed a number of
laws which are recognized by underwriters
as of greater disadvantage to the 'insuring
public than they are to the companies at
which they are aimed. In reply to a letter
from the mayor of Vicksburg who writes
for some suggestion to securing relief,
State Insurance Commissioner Cole writes
a letter. which may well be read by the
public at large and be taken as a warning
| in those States where such laws are not in
| session. He writes:
II am at loss to tell you how to proceed
| to induce the insurance companies to give
| a reduction in the rate. AS you say. We
| cannot, on account of our antitrust law
| deal with the Southeastern Tariff Associa-
| ton or with any board or committee of in
surance men, but must deal with each in
| dividual company, and no one company can
| even promise or suggest what any other
company than itself will do. We have no
/ guarantee that what concessions I'm rates
/ are made by one company wills be granted
| by any other OF the companies; but we
/ know by observation and experience that
| when one company penalties US for defeats
nearly, II not quite, all of the others follow
| suit
/ "Our antitrust law, vaIued-poIicy law
| and anti-coinsurance law, all enacted in
| good faith for the relief of the people and
| TO govern insurance companies, have proven
| boomerangs, and, instead of regulating the
| companies, have served them as excellent
| excuses for increasing rates Those States
| In which there are none Of the laws mem
| toned above average in insure nee rates
| average, yet the companies shoy. their ay-
| erage net underwriting profits to be more
! there than in Mississippi L do not believe
| Ii Is any more possible To legislate cheap in
| surance rates than TO legislate religion on
| morality into the masses. Our antitrust
| valued-policy and anti-coinsurance laws
| are the chief factors in making the rates
| high. The first is successfully evaded by
| the companies, the second benefits only
| operates altogether against the insured I'm.
| stead of against the companies Therefore
| L think all three should be repealed
hope IN the near future 10 have a conven.
| ton OF mayors and leading business men
! Including many of those who carry the
heaviest lines OF insurance, for the purpose
| OF discussing and agreeing upon needed
| legislation and amendments to our present
laws