Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-10-16
IOWA MAN TELLS NATIONAL AS.
ISOLATION OF AGENTS SOME
PLAIN FACTS.
DISCRIMINATION BLAMED
FOR HEAVY FIRE LOSS
Fierce Competition Responsible for Tax
That is Becoming Burdsnseme and
Fastening Day Of State Insurance.
Says Henry e. Sampson, Assistant
Attorney GeneraI-ead Risks Taken.
- Tines-Republican.

Des Moines. Oct. Reinsurance dis
elimination is largely responsible for
IN annual fire loss in the United States
IF over 1925. 100000 and fire insurance
rate ten times as high as that in Eu-
gopear cities.
Some day the FIRE tax will become
uu.densome and if the people become
convinced IL is due 10 fierce COMPETE
sion between companies and between
agents, they Will turn to some form Of
state insurance.
These were central thoughts imposed
Upon the national convention OF fire in
sllrance agents in session IN Cincin-
natl today by Henry E. Sampson, OF
the attorney generals office Of Iowa.
propriate advice.
fact that the FIRE insurance
business had become the very
basis OF credit and the foundation OF
commercial success and prosperity,
with premiums collected amounting 10
s35S.UoV.O00 annually. but full! OF COM
Pick and vexatious problems. During
the evolution OF this great industry
BAD practices have crept in.
CIT cur way, lie said. the public
and the insurance companies are not
on speaking terms. They call each
other vie names and stand ready to
fight upon the least provocation. Upon
one side We hear charges Of exorbitant
rates. excessive profits, insurance
trusts, enemies TO society. etc. On the
other side there are counter charges of
vicious legislation. unfair courts. an
just decision, state officials seeking
political preferment, unfair press. a
-ostrum appealing to popular clamor,
etc. PoHcyholders claim that some
companies refuse to pay just claims.
While the companies are morally GER
tain that they are being held up by
dishonest insurants. Agents are COM
planning that companies do not protect
them and their business, while on the
other hand the companies feel that
their agents are agents in name only
ard that under the commission plan
their interests are not always those of
the company. Those interested in de-
creasing the fire loss complain because
OF the large amount of undesirable
risks written. claiming that 1t results
IN detriment to the company and in
~ 49, PNSAtS- LSSe ulNe2ilNN
conditions are not confined to the state
Of Iowa. Il would be easy to name
otner states where conditions are even
worse. Nowhere do we fnd that feel
ing Of mutual faith and confidence be-
tween the public and the insurance
companies which should exist"
Bad Risks Taken.
Mr.. Sampson said that it would No,
denied there iS IN
DOCKS which never should have become
written, and this is due to desire IN
secure premiums in e field of compet;-
tion, that the fire loss is greatly In
excess Of what it should be. that the
2uoAc Is careless in the building and
protection OF its property. and that the
cost OF writing the business is greatly
n excess Of what it would be under a
oetter system, that We have too MANY
insurance agents., 900 of them in
Lo"a-and that many Of them are I'M
4uaAHeo Tor their profession. We also
md instances of discrimination in
rates. Relating Of premiums. over in
surance. under insuring, acceptance of
hazardous risks. These evils are gem
=ral. The people have been drawing
differences from this condition. Can voI,
blame them for feeling that insura noe
rates are the results of guess work
Nhen they see the utter contempt
Which underwriters themselves feel for
heir rates? The result has been pc
-!tions for legislative interference. Il,
said the most equitable rates exis,
where there has been least legislation.
Most of the lesser evils" said Mr..
Sampson, ARE the direct and natural
esults of conditions which are funda-
mentally wrong-in fact. many of
them can be traced directly TO the
practice Of discrimination and Relating.
or to the method Of employing agents
on commission basis"
Equal Rates for Like Hazards.
He declared the rates should be equal
for like hazards. 1t is the duty OF the
companies to stimulate among the
agents a growing sentiment for fair
dealing with all property owners by in
sisting upon the correct tariff rates In
all instances.
Discrimination is natural and in
eVitable under your present method Of
doing business he said. premiums
are everything, not only to the COM
pany whose profits depend upon them.
not only to the agent whose commits
sions depend upon them, but also to