Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-09-07
A UNIFORM FIRE
INSURANCE BILL
Commission Making
Progress in Recommends
tions to Legislature
THE %RoN SAFE CLAUSE
Insurance Men Insisting That 1t Shall
Be Put Into the Law-secretary
Wells Discusses the Reciprocal De-
murrase BilI-A Butter Exhibitor
Who Can Get Prize.
Special to Times-Republican.

Special to Times Republican.
Des Moines, Sept THE legislative
insurance commission is putting the
finishing touches to the uniform fire
insurance policy bill and one of those
touches probably eliminated the Iron
safe" clause Along with this COM
pulsory arbitration and the PROPOSE
ton to require fire insurance agents to
furnish bonds are being discussed by
the commission.
The Iron safe clause was in the
bill at one time 1t requires that un
less policy holder keeps his books
and insurance papers in an iron safe or
some other safe place where they cam
not be destroyed by fire, he can not re-
cover on his insurance. The insur-
ance companies wanted the clause in.
During the questioning of witnesses
one witness was asked what would re-
suit in hypothetical case. He was
asked if he held the ground that poll
ICY AQlQtl OuSllt llOl W lSGONSl III q
case where an employe of a policy
holder, say the bookkeeper failed to
put the books in the safe one night
and fire starting block away should
be driven by the wind so as to destroy
the property. The witness was u
pompous individual, and he replied:
Most certainly sir That seemed to
settle the iron safe" clause for one
of the commissioners was seen to
draw his pencil thru the clause. The
commission feels that policy holders
ought to protect their books and that
a policy holder whose property burns
and the books are all burned with it is
in a poor way to show his loss and
further that many policy holders allow
their books to burn for that purpose
But they believe the innocent ought to
be protected even to allowing some
seamps to escape.
The insurance companies are en-
deavoring to show the beauties of a
compulsory arbitration clause for the
uniform policy. The arbitration they
would have compulsory on the request
of either the INSURANCE company or the
policy holder They argue that this
would save litigation as the company
is able to carry it thru state and fed
eral courts at small expense while the
policy holder would be unable to pros
ecute. The commission is considering
giving the auditor authority to bar
from the state any company that re-
sorts to the federal courts The United
States supreme court has held that
L,,f hot
the auditor cannot be enjoined from
enforcing it and hence it remains OPP
erative.
Bonds for insurance agents may be
required by the recommendations OF
the commission. Evidence has been
presented to the commission to show
that many agents engage in the busl-
ness who know little or nothing of it
and that since the law holds the COM
pany liable for the acts of the agent
either written or verbal, the agent
should furnish bonds for his right do
ing.
George A. Wells, secretary Of the
Iowa Grain Dealers Association, be-
lieves that the size and number OF
the elevators in the northern part Of
the state have very little to do with
the question of reciprocal dernurrage
bill that the farmers and grain men
of that section wanted passed, at tho
last session of the legislature. He be-
Iieves and says that State Railroad
Commissioner N. S. Ketchum is wrong
in his conclusion that larger elevators
in the northern part of the state
would solve the problem. What reas-
on is there in forcing me to build a
bigger elevator to take care of grain
that the railroads ought to haul away?"
said Secretary Wells today. Elevator
men ought not be forced to build ele-
vators that would hold an entire years
crop. What is wanted is that the rail-
roads should build more cars. 1t is a
case of investment in one place as
much as in another. In the first place
Mr.. Ketchum is wrong in saying that
they have big elevators in the south
ern part Of the state, and small ones
in the north part. They have scarcely
any elevators at all in the southern
mart of the state Elevators are for
Facilitating the loading and unloading
of the grain from the wagons and the
loading of it into the cars and for han
ding a little surplus that may come
in for few days more than is freight
ed away The storage elevators must
be located at terminals. Grain dealers
and farmers desire to reach the mar
ket when it is high. If they want tp
speculate the best way to do is to go
to Chicago and sit down in front Of
the boards and speculate. 1t is an un-
lust burden to ask a grain elevator
man out in the state to build an eleva-
tor that will store crop and besides
the storage elevators must be at the
market centers, and Furthermore the
trouble with the grain shipping busi-
ness in the northern part of the state is
one Of getting of the market at the
proper time. Elevator men are losing
money because they cannot get cars
when the market price is UP and by the