The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-09


100000 of approved securities held by
the State as custodian for the security of
policy holders. This has affored Indiana
companies the required basis of credit that
enables them TO conduct their business in
all other States from which they were
barred before they placed themselves upon
the financial basis required by the law.
The condition of fire insurance in In
diana is such that it appeals to the Legis-
lature for careful consideration and for the
adoption Of a few wise measures The State
has long pursued restrictive policy to its
own harm, which, if continued. will serve
to cripple its own insurance interests, that
are now so promising that it should strive
to encourage and strengthen them. There
is lack OF fire insurance capital working
in this State-and especially capital of the
companies of other States. This is dimin-
fishing instead OF increasing, as we have
shown elsewhere, with reason; therefore,
restrictions should be removed, taxes re-
duced and every facility should be afforded
for the sound companies OF other States to
enter Indiana and transact business as
free from restrictions as possible without
lowering the standard of security, in order
that abundance of capital may be secured
with the same safeguards required by
other States.
Regarding the restrictive and expensive
policy of Indiana, it handicaps it's own
companies now seeking broader fields of
operation than this State affords. For, be
restriction and taxation Indiana applies to
the companies of other States, the same
measure is applied to Indiana companies
in whatever State they apply for admission
to do business. The law of reciprocity now
universal, so far as relates to insurance, Is
the button the Indiana Legislature touches
when 1t imposes hard conditions upon the
companies of other States. These States
do the rest when Indiana companies ask
for privileges.
NOT MUCH LEGISLATION NEEDED.
In 1873 the Indiana Legislature modified
the insurance laws of the State for the
purpose of taxing the companies and en-
riching the auditor OF State, who be-
came insurance commissioner ex off1cio.
Out of the fees and taxes the auditor of
state so profited that he could afford to re-
spond cheerfully to heavy assessments for
campaign purposes. The laws have been
amended and improved since 1873. The
state auditor derives no emoluments from
his department, his perquisites have been
cut OFF, and all taxes and fees paid by in
surance companies are turned into the
States treasury. from which the auditor
and other State officials draw their Sala-
ries. The companies pay big revenue to
the State. which, indirectly, the people who
insure pay as part of their premiums. 1t is
a heavy tax on thrift that should never
be levied in excess of sum sufficient to de-
fray the expenses of the insurance depart
ment. 1t is now so large that the salaries
of all State officials and judges of the Su-
ment could be paid from 1t and then leave
sufficient revenue to create q fund for the
prosecution and conviction of criminals en-
gagged in burning their own and other peo-
pies property to defraud insurance compa-
MES and to satisfy evil propensities.
A fire marshal law is badly needed.
Massachusetts and other States have such
law. AS in Massachusetts, and in the
neighboring State of Ohio, Indiana would
be greatly benefited were such a law en-
acted and enforced In this State. Many
orix 1e, % owfv IS
be prosecuted. convicted and punished. The
number of fire losses from unknown
causes would be lessened and people liable
to have the origin of their fires officially in
vestigated before collecting their insurance
would be apt to exercise more care in safe
guarding their property than under exist
ing laws. About the only legislation relat-
ing to fire insurance now required In In
diana is the enactment of a fire marshal
law and such amendments to the present
law as will do away with semi-annual state
ments, taxes and fees, substituting therefor
the system of annual reports, taxes, etc,
adopted by all other States except Georgia
and Indiana, that are in derision on account
OF these absurd requirements. Much direct
benefit would accrue to the citizens of this
State were the requirements relating to the
admission OF fire insurance companies so
changed as to conform with those Of other
States.
If Indiana is to encourage it's home insur-
ance companies its restrictive policy toward
companies of other States must be aban-
all the requirements of the law that out
side companies must comply with before
receiving license to transact business I'm
this State will find ready admission to al
most any State in the Union. If, however,
they attempt to do business in these States
they find IL very expensive. just the same
as do foreign companies which enter In
diana. They must pay for advertising
statements twice a year, when once is all
that would be required were ii not for our
absurd law maintained for the benefit OF
two newspapers of opposite political faith
published In Indianapolis. Indiana has
driven several millions of insurance capital
out of the State and prevented other mil
lions from entering by reason of its re-
strictive and burdensome laws. These laws
bar the way to companies that would com
pete for business here and handicap home
companies operating in other States that
retaliate upon our companies by means OF
reciprocal laws. Removal of restrictions
and reduction of taxes and fees imposed
upon foreign companies will remove many
| barriers that prevent reduction in the cost
of insurance at home and the free inter.
course of home companies with the citizens
Of other States.