The San Francisco call., 1907-02-05
MUTUAL PLAN IS
CONNIE need
Farmers Insurance Com
pany Explains Situation
to Senate Committeeman
RISK Is NOT GREAT
CALL HEADQUARTERS,
1907 EIGHTH STREET.

SACRAMENTO. Feb. Announce
ment that the Senate committee on
Insurance is in favor of extending the
scope and privileges of mutual insur-
snce associations attracted a delega-
tion OF representatives from Organiza-
tions Of this kind to its meeting this
afternoon. A quorum was not present,
however, and Senator Leavitt, chair
man of the committee, confined the
business of the meeting to issuing in
structions TO O. @. Jones, insurance eX-
pert OF the Senate, to confer with the
persons interested and arrange TO meet
them again and amass preliminary
data to thrash out at subsequent meet
ings.
Jones arranged with Senator'S Rolley
and anderson 10 meet representatives
OF the mutual associations Friday
might. Both Rolley and Anderson have
bills relating 10 mutual insurance, and
discussion on these occupied some little
time this afternoon.
Representatives Of the Farmers Mu-
tual Insurance Company of Sacra-
mento County said that if Anderson s
bill were passed in its present form
they would be driven out of business.
They pointed out that it provided that
mo mutual company could engage in
business unless il had a capital of
$500, 600. They thought this was un-
necessarily harsh. declaring that the
hazard assumed in the insuring of
farm property was not as great as that
involved in insuring town or city prop
lerty.
Senator Rolley's bill provides that a
mutual association can enter upon the
business Of insuring when il has $780,
GOO. This was regarded as an equable
stipulation.
q Delegates from other companies
pointed out that mutual insurance had
done more toward reducing the moral
hazard" in other States than any other
character of insurance corporations.
There was a general lack of mutual
capacity in California, they declared.
This applied to both outside" and ''in-
side" mutual insurance. Attention was
drawn TO the fact that -four mills, fac
. tories and other enterprises insured by
mutual companies were subjected to
more searching Investigations than
were similar risks assumed by other
insurance corporations.
-Npert Jones said: Whatever the
committee decides TO do, however, it is
. evident that lobbyists for the mutual
companies will not be lacking at the
capital when the time comes for ac-
.tual legislation. The committee Will
80 ahead tomorrow on its work of
drafting a composite form Of standard
policy, the question of mutual insur-
anee being a thing apart from the
proposed laws 10 restrict welching
among incorporated underwriters of
the familiar siX-bit stripe"
Assemblyman Drew's bill embodying
the codifcaton of present insurance
laws compiled by Insurance Commits
sioner 1 Wolf and Deputy Attorney
General Stuartevant, also several new
laws proposed by the same officials, will
emerge from the Assembly insurance
committee tomorrow with favorable
recommendation. Numerous amend
ments nave been made. but nearly all
and the bill still presents an old IA
miliar face TO its authors.
The measure that the Assembly will
be asked to pass requires insurance
companies TO deposit $500, 600 in securi-
ties somewhere in the United States for
the benefit Of policyholders. Another
important departure from the present
law is a section classifying companies
and limiting them to particular lines of
insurance. Still another new feature
?. IS surplus lien law. which will enable
those who cannot obtain enough insur-
ance now 10 get legitimate insurance.
Both Commissioner Wolf and Deputy
" Attorney General Sturtevant are salts
fed with the bill as il stands and SO
expressed themselves tonight before
the committee decided to make a IA
vOrable report
II is the intention Of Chairman Drew
TO force the measure TO q vote as soon
as possible