The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1913-04-25
STATE OF MISSOURI
WITHOUT INSURANCE
WITHIN SHORT TIME
BIG COMPANIES STILL INSIST
THEY WILL WITHDRAW FROM
THE STATE.
OBJECT TO The ORR Law
Insurance Men Are Urging the Gov
trnor to Call An Extra Session of
the Legislature to Regulate the En-
tangled Conditions.

KANSAS CITY, April 21.-The sit
uation in Missouri, where the princi-
pal fire companies have withdrawn
their business on account of an OBJ
jectional Jaw passed by the last leg
islature, IS the principal topic IN fire
insurance circles these days. The
insurance men in St. Louis and Kan
sas City believe that some remedy
for the situation will be found before
many more days, the calling OF a
special session of the legislature and
further consideration of the insur-
ance laws being the most feasible
remedy suggested.
The Kansas City and st. Louis pa
pers are printing interviews in which
the organization of mutual ccmpa-
MES to take over the insurance busi-
ness in the state is urged. 1t is
hardly believed that this will be
done, however,
One prominent insurance represen-
tatiye in ST. Louis hays of the condi-
ton there:
Gov. Major has in view. the call
ing of special session of the legis-
| lature to amend the law relating to
the selection of United States sena-
| tor in Missouri. He can, without any
additional expense to the state, place
before the special session the revi
sion of the insurance laws of the
state. l can appreciate that he was
unwilling to veto the Orr bills, rs by
doing so he would have assumed in
dividual responsibility for whatever
happened. Exactly the reverse is
true for the call Of the extra session
If Gov. Major does not provide for in
surance legislation in his call he will
assume individual undivided !"espon
sibility for whatever happens.
"The fire. insurance compaa ale.
have before this withdrawn from q
state About six years ago Arkan
sas passed law similar to the Orr
law and the companies left the state
Arkansas had no cities as large as st
Louis and Kansas City and the c,yaot
lie conditions which in Arkansas fol
lowed the withdrawal of the compa
MES would be immeasurably multi
piled in Missouri, with the importan
Interests that must have insurance.
"The suggestion that mutual com
lpanies, interinsurance companies ant
new stock companies to be formed
could take care of the insurance bust
mess of Missouri if the big companie.
withdraw is SO absurd that 7 an
loath to believe the members IF the
administration to whom 1t is ereditet
really made it. The prime elemen
of sound underwriting is proper
distribution of the risk-that l., NJ
company that expects to pay its loss
'es can concentrate its risks in ONT
city or in one state. To distribute
risks properly required either 4 we
scattered agency force or the cooper
alton of other insurance companies
which can be built up only by year.
of we'll doing. Mutual and interim
surance companies, unless managed
with supreme care, have in the pas
gone along very well until there wal
a big loss and then they suspended
III the big companies were to with
draw then the insurance of Missouri
would be written by companies thai
have no standing in the insurance
world. They might or might not pay
their losses and would certainly col
lect their premiums. Banks and life
insurance companies which make
many loans on buildings have lis
Ol dCCcplcu IRE IubulAHCo COHpdHics
and will accept policies from no 9th
ers. These are big, sound, establish
ed companies which are planning t
withdraw The insurance Offered
would, therefore, tend very little tt
aid credit
/ c. j. Kehoe, president OF the F. D
Hirschberg Insurance Agency, say.
that If the insurance companies arr
compelled to abandon the Missouri
field, it would mean the abolishmen
of the ST. Louis Fire Prevention Blu
lreau and the salvage corps that ar,
maintained by the insurance ccmpa