The Cairo bulletin., 1905-04-10

hurst chief insurance man for the
wholesale and retail houses of Mar
shall Field & Co, recently attacked
the clauses referring to insurance in
terests in house bill No. ASS known as
the Mckinley antitrust bill, and ar
gued that they should not become
law, according to the Chicago Record
Herald of April LIST In substantiation
of his point he argued that the insur.
ance companies are making only a
small profit, that they are absolutely
necessary to the widening Il busine S
interests, and If they are thus legis-
lated against in this state the re
sponsible ones will leave or rates will
be increased greatly.
The board of underwriters was held
to be a necessary and not a vicious
inst tuition and one to which no inter
est with which it comes in contact Is
Directing Mr. Hawxhurst takes the
position that if there is to be any in
suranee legislation il should be along
The lines of encouraging the business.
IF the clauses IN this bill that re
fer to insurance he said should be-
come law it would injure every com
nercial interest in the state. II would
mean in a very short time one of two
conditions-iirst, greatly restricted
and insufficient fire indemnity, and
possibly the withdrawal Of all reliable
fire insurance companies; or, second,
heir ultimate nonreliability. The
only open complaint is that there is
not a sufficient number of companies
for the indemnity needed to carry on
'arge affairs, irrespective Of rates.
Mr. Hawzhurst pointed out that the
adoption Of the bill would mean an in
creased cost fer insurance, and con
inued:
The clauses referring to insurance
in this bill are not there from a need
N which any interest is suffering. but
they would work an injury to all inter
2sts, because sufficient reliable fire
insurance and credit would be denied
10 citizens in this state, as It Is now
10 those of Arkansas for without in
surance all markets will be closed 70
her merchants on a credit basis.
What insurance would be attain
able in Illinois would be at a greatly
increased cost owing to its scarcity
md necessity and to the fact that 1t
would add to all risks additional
chances Of having fires from want OF
systematic inspection and care given
them by board Of officials. 1t would
add also an additional cost of doing
business to each company that nov
receives many benefits from a combl
nation Of interests that are able rs
such tu-employ al far less average
cost experienced inspectors, maintain
ire patrols for the suppression OF
fires, laboratories for examination of
hazards and appliances for the pre-
vention of fire. and to get up CLASH
ications and records TO the better.
nent Of risks. and lessening of losses
ana the caying Of lives
Insurance affects every condition
If life and is different from any other
business in existence, and no general
legitimate competition can enter into
IT,, as 1t has no basis for a cost price
except in the ratios Of past expert
ances and the laws OF ayerage-not
he average Of one city or one commu-
nifty, fdr that would soon ruin both
communitcs and companies. as Chi.
cagu and Boston did-but the average
# all communities figured as a total
To do this It is absolutely necessary
hat the companies should act as a
init; any other course is chaos for
them
Every adverse law created against
insurance companies which are vir.
tually but a part OF the people. being
owned by them as investors of Their
stocks, recoils back upon the whole
people, for they pay the Insurance
tax; if Il is not sufficient to pay losses
and expenses the managers simply in
crea.e II.
High taxes and onerous conditions
by the state mean high rates for in
surance indemnify. A low tax rate by
the state and inducements TO capital
20 invest in insurance stocks properly
safeguarded by boards and combine
tions of underwriters means the oppo.
tie.
Want of association and fraternity
of interest have invariably proved
this in the past, nearly loo compa-
mics having failed or retired since
1890 and the hazardous nature Of fire
insurance will necessarily always
make il so: consequently il is the duty
of the people and their legislature 10
look into the future further than
year or so--in which a temporary ben
eft may bc derived To be more than
Offset later 10y higher cost-and
realize before creating hurdensome
laws that the people. not alone the in
surance companies. are the real SUI.
ferers by these measures
Thirty-one companies spent last
year $2.523.0 more than they recciv.
ed and Sl2 000.000 of loss-paying as
sets was Withdrawn the past year
alone by Insurance companies failing
or ret ring Legislation detrimental
to its safety must he one OF the first