Ladysmith news. [volume] (Ladysmith, Wis.) 1906-1907, 1906-12-22
STATE INSURANCE GETS BLOW.
Committee Opposed to Wisconsin Go.
ina Into Insurance Business.

ing Into Insurance Business.
The majority report of the commit
tee appointed by the last state senate
to investigate the feasibility of estab
fishing a state life insurance depart
ment in Wisconsin has completed it's
investigation, upon which it has been
engaged for two years, and filed it's
report with Gov. Davidson.
The committee is not in favor of
having the state go into the life insur-
arce business, because it does not find
it feasible at this time.
The report is signed by Senators
julius e. Roehr and James A. Frear,.
while Senator Jacob Rummel, Social
ist, whose party is trying to foster
number of state and municipal owner
ship projects in the legislature. dis
sents.
The committee has investigated the
systems of a number of foreign coun-
tries that supply life insurance
through the government but found
nothing to warrant the states going
into the business at present.
In New Zealand, which is held up as
a model by the advocates of insurance
by governments and other public
ownership projects, the committee
learns that private companies do a
greater business than the government
Of the total amount OF insurance
written 60 per cent is controlled by
private companies. This in spite Of
the fact that the government issues,
policies at low rates and that all the
profits go back to the policyholders.
Reports on New Zealand.
The report says:
"The report of 1902 in New Zealand
gives total insurance carried in that
country of $119,794,362 Of the total
insurance reported, about 30 per cent
is carried by the government and
about go per cent by Independent COM
panies.
BY way of comparison, one WjsoOn-
sin insurance company carries more
insurance in this state than the total
government insurance carried in New
Zealand. According to the 1905 report
the total amount of old line insurance
carried in Wisconsin was $&G0,765 1921
From these statistics and comparative
population it appears that for every
dollar of insurance carried in New Yea
land, prOportionately 81 is carried in
Wisconsin,"
The report also summarizes the con
ditions in European countries that
have insurance, but it is much the
same as in New Zealand.
III conclusion, it says:
I'm conclusion We find that no az
pertinent in government life insurance
has been attempted. excepting in
limited form, outside Of New Zealand
Nc state in this country has attempted
to enter the life insurance 6eld.
Favors Control of Companies.
Florida is the only state that has
taken any steps toward enacting
state insurance, laws, so far as your
committee has been able to ascertain
Differing conditions in Wisconsin and
in European countries and the limited
data at hand prevent full comparisons
being made between the merits of pri'
vate and government insurance bust
ness.
Compulsory insurance has many
advocates, and any legislation to that
end will necessitate some form OF
state or government insurance.
Under present conditions we find
from the reports that government
insures reasonable salaries to officers,
low commissions to agents. econom-
ical administration of affairs, liberal
forms of policies. equitable profit
sharing and absolute security.
These conditions are also possible
under private management and should
be enforced by proper state regulation.
I'VE believe that if the legislation
proposed by the Wisconsin investiga
ting commission is enacted into law, it
will meet any objections to present
conditions, and your committee in pre-
senting this report recommends that
no legislation on the subject of state
insurance be contemplated until an eff.
fort to better control existing business
in private companies has been given
a fair and complete trial"
The senators will report to the SEN
ate next month 1t is probable the
majority report will be adopted.-W