The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1911-12-14
AMERICAN PEOPLE
NEVER READY FOR
STATE INSURANCE
Is the Opinion Expressed BY
New York State Super
intendent.
SOCIALISM CAUSE S
Some of the States to Try the
Experiment, Hotchkiss
Points Out.

NEW YORK, Dec. 13.-Amer!cans
are not ready and will never be read,
for state insurance in the opinion ex-
pressed by the Hon. W. H. Hotchkiss
superintendent of insurance for New
York state, and Chairman of the Ma.
tional Convention of Insurance Com
missioners. who addressed the AS,
ISOLATION OF Life Insurance Presidents
in New York today.
Wisconsin, next month, inaugu-
rates q system whereby the state IT.
self will grant life insurance and an
nuities 10 residents, yes, even to
strangers within her gates. without,
however, as yet the obligation as
sumed to see that the indemnity is
paid" said Superintendent Hotch-
kiss. Commissions are at work in
other states with. doubtless. similar
statutes in view, The growth OF po-
litical socialism suggests more OK
periments Of the same kind The
present drift is unmistakable.
what is needed by our people is
not the submergence OF this great
institution of sovereignty, but the
proper coordination of insurance
and government. Each should do for
the other only what each can do
better than the other. In some
things-underwriting and adjustment,
for misunderstanding by private
corporations has been eminently sue
cessful The very nature OF these
things makes impossible their econ
omic accomplishment through the
ordinary processes OF government.
These the state should, save for
helpful supervision, let alone. But
where corporate initiative has failed.
the state should coordinate with its
creatures. In some felds-in yours
now less than in any other-compe-
titlYe practices prevent rate-making
that is level with economic cost. The
temptation to withhold too much for
salary or overhead charge, or to pay
too much-often far too much-for
business, is ever present Hence,
home office disbursements, generally.
and commission payments are, IN
some quarters. higher than can be
justified by the service performed.
AS results, so-called gentleman'e
agreements to maintain rates thus
swollen are branded as trusts. and,
despite their existence, rate wars are
waged which profit the few. but nost-
pone that adjustment of premium
charge to economic cost which is es-
sentlal to public satisfaction.
Save, perhaps in the life field-and
here the state has already acted
insurance by private corporations
has not in these particulars stood the
test. Here, therefore. government
has duty. 1t must lend a hand
Indeed, while leaving to its insur-
ance corporations all technical and
specialized functions and making no
effort, save through proper watchful-
ness, to interfere with these fac ore
in the rate charged, will not the State
in the not distant future coordinate
with corporate insurance and regu-
late or limit expenses of all kinds;
II it does not, the present drift to,
ward state insurance seems likely tc
continue. For, whatever be the field
the people will not long pay for the
insurance Of the future more thar
such service is rightly worth.
How many insurance men ever
know that, while state life insurance
has been in force in New Zealand
more than forty years. its early sue
cess has not been maintained, It's
present situation is unsatisfactory
It's alleged reduced expense ratio is
due more to its inertia than it's eff
cheney, and that, while it has the
prestige of a governmental institu.
ton, the proportion of state insur
ance TO total Insurance in force IL
that dominion is less and less eacl
year?
HAS insurance done anything t.
make IT plain that the boasted stait
insurance system of Germany is de
feating its object by oblIterating tbs
! line between compensation and char
lty, or sought to emphasize the dan
gers that Turk in an Insurance pro
posal where as in Germany eithe'
the employers contributions to tn,
fund or the employers claims 70,
sickness, accident or old age ar
4
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