The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1909-08-21
Commissioner McCOmb
Gives Out Statement

Guthrie, Okla, Aug. 21--Insuranc'
Commissioner 7. J. Mccomb this weel
gave out a statement in regard to the
rating bureau question, in which he
states that he has never advised The
purchase of the estimates made by
any particular person, and that the re
quirement of the Oklahoma insurance
department is that the companies shall
apply their rates without discrimina
tion.
Il am in receipt of a number of in
quiries in regard to fire insurance
rates, said Mr.. McComb. '-reciting in
some instances partially correct
statement of my opinion, etc, on the
subject. This question of fire insur
ance rates is. as you know, trou
blesome one, not only for the public
but the companies as well. Much has
been said on the subject, and no doubt
much more will yet be said. In con-
cidering this question there are some
plain, simple facts that must be kept
in mind, viz: Il is a business in which
every man. woman and child almost is
interested, directly or indirectly. and
being a business of quasipublic ma
ture. comes clearly within the police
power Of the state7 TO regulate. Since
its purpose is merely the meeting Of
losses. 1t is not Investment but in
demnity. and If companies offer to fur
nish this indemnify. the guarantee is
implied that they viii do so I'M an
equitable and fair manner If in this
they fail, they have no legal or moral
right to operate in the state
Since insurance is but the distribu-
tion Oh a loss over the heads of many
so that it may fall just as lightly as
possible on the individual. this dis
tribution must be equitable, for no
man should pay too little any more
thau he should pay too much. If he
pays too little, he gets more than he
should, and someone else pays for the
excess benefit he receives. Now, all
property is not subject to the same
hazard, and it is a simple conclusion,
therefore, to say that classification is
necessary in order that each man may
pay his just proportion Of the fire tax
and no more. variance from this
principle, it seems to me, necessarily
results in discrimination. Railroads
are not allowed to discriminate Why
should insurance companies?"
After quoting at length from the Ok
iahoma antitrust law, which is parti-
cularly directed against discrimina-
tion, Mr.. McComb continued:
Going back to the proposition Of
and equitable distribu-
tion Of the fire tax, it is, Of course,
necessary to compile statistics, data,
etc, upon which to base rates Early
after the passage OF the aati.trust law
by our first state legislature. the rat
ing bureau at Oklahoma City. as main
tained by the FIRE insurance companies
advised me that the same was closed.
| was asked whether an individual
could independently make estimates
and furnish them for sale. and / re-
piled as follows:
The question Of whether the main
tenance of a rating bureau is a viola
ton of law is purely a judicial ques-
ton: therefore my opion would have
no legal effect or significance. A party
compiling and offering for sale infor-
nation as an expert IN such matters
if he offers to sell same to any one and
does 50 Independently and absolutely
upon his own responsibility. It would
not be violating the law And as the
attorney general says:
II the act of the insurance COM
panies were simply to obtain informa-
ton from the rating books. which in
formation they used as they were
pleased, the use Of the rating book
would not be a violation Of law. ri
insurance companies with or without
an agreement restrict trade and insur-