Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-03-06
INSURANCE BILLS OPPOSED
Two of Koutouc's Measures in House
Likely to Meet Defeat.
SECURITIES TAKEN TO LINCOLN
No Absolute Provision for Their
safety Made-BIu for Uniform
Rates May Raise Rates in
Different Localities.
tFrom staff Correspondent.N


LINCOLN. March 6.-(Special. AT least |
two of the bills introduced by Kotouc at
the instance of the insurance department
of the state are meeting with opposition
that perhaps means their defeat Ger
tainly. as their provisions are better under
stood their chance for passage seems tol
be lessened. One of these, H. r. 2IS, has
for it's object the placing of the reserve
funds of Nebraska INSURANCE companies
in the hands OF the state auditor. The
first effect o. this AT Tauid be 20 draw
to Lincoln from Omaha. more than S20'OO00OO
of securities held as reserve by insurance
organizations having their headquarters
there IT, for no other reason, the insur-
ance companies object because no provi-
sion has been made for the safe keeping
of this large amount OF valuable assets.
The tumble-down state house does not
provide anything like security for the
safety Of the bonds. mortgages and other
securities. and so far as is known the
auditor has no place to put them.
Auditor Not Made Responsible.
Equally serious. from the viewpoint of
the insurance men, is the fact that the
law does not contemplate the auditors
giving any surety for the safekeeping OF
the funds His official bond does not con-
template such responsibility, and the pro.
posed law does not require II. In brief,
! no protection is offered against theft,
/ accident fire or other loss by the state
| Other very serious objections against the
/ plan are raised by the insurance COM
pan,es. who point out how the plan will
interfere with the administration OF the
affairs OF the organizations without bring
ing any additional benefit to the policy
/ rT,t,o f,c Of hat snnfada fnanranpp
companies are not affected by the law
! gives color to the assertion that It Is a
plan to hamper the state companies in
stead of to foster and encourage them.
Uniform Rates I'm state.
Another bill, He r. 4Os. also introduced
! by Kotouc at the instance Of the insurance
department, has for its purpose the estab-
lishment Of uniform fire insurance rates
! throughout the state. It's provisions have
been discussed considerably and much on,
position has arisen since it has been placed
! before the body. Auditor Barton defends
this measure in a lengthy statement given
out Saturday, taking as his only ground
for wanting the bill that It will bring
about a uniform rate in all parts Of the
state He says II adopted the law will SO
regulate the business of fire insurance
| tnat the owner OF n Sinai llNNt VI FlhpNiA ~
p will pay no higher rate for his Insurance.
than the owner OF large property and
that there will be no difference in ratei
between sections OF the state He admits
that II will raise the rates in some part
OF Nebraska and on some classes OF prop
, erty. but insists that II VIII reduce others
so as TO establish a level. He does no
say whether the new level will be higher
I than the present, but contents himself
with the statement that the rate will b'
uniform. To prevent discrimination is hi
sole object IN asking that the bill b.
passed
The majority party In the legislature Il
beginning to feel that the principal prob
lens Of the session are overcome and tina
the party pledges have been for the mos
part redeemed As soon as the sittinl
committee Is appointed Wednesday the fat
OF all pending legislation Will remain II
the hands OF these seven men chosen fo
the work OF sorting out the remainin,
bills and little can be done by the am
bitious senator who meets with a rebuff
from that committee. The house will sp
point its sitting committee probably dur
ing the week and dozens OF measures Jha
were introduced with some hope OF sue
cess will go by the board
In the most important things, however
the work OF the legislature is outlined II
the bills that are well along toward
: final settlement The two houses hav
not yet agreed upon their initiative an
! referendum law, but each house has com
10 an agreement upon its own measur
and a compromise viii probably not be dif
ncult
County option Lost.
Tn liquor legislation the county optic
bill Is admittedly shelved. The Evan
Z anti-treat bill Is up for a discussion I
CONTINUED on second PageJ