The Hartford republican. (Hartford, Ky.) 18??-1926, 1914-03-27
A Matter of Politics.

Although the business feature Of
the fire insurance suspension in Ken
lucky is now the question of greatest
Importance, since it threatens to
paralyze, commercial activity, IT
must be remembered that the trouble
htl1 its orisin in politics. The state
insurance board, which is appointed
by the state auditor, and of which
Ruby Laffoon is chairman, is re-
sponsible for the Glenn-Greene law.
The state insurance board considers
that it was put into office to reduce
insurance rates by law. In fact, the
way to GO. lower insurance rates is
to have fewer fires, since rates are
based upon losses. 1t isan absurdity
to try to get lower fire insurance
rates in a state where the insurance
business is already being done at
loss because of excessive fires, with
out doing anything to improve fire
protection or fire prevention condi-
lions. In fact, the state insurance
board only made a bad matter worse,
as it was supported by tax levieG
upon the insurance premiums, and
this still further increased the cost
of the business, and made it the
more unjust to ask a reduction OF
rates on an already Improbable bust
ness.
Regardless of justice and econOm-
les, the board, being politicians, tried
to force reductions in rates. In every
case, however, it failed to comply
with the provisions OF the law, ard
the companies were able to defer the
greater reductions ordered. The board
thereupon decided to get law I'M
der which it would be easier for it
to have it's own way, and one of the
most Objectionable features of the
Glenn-Greene law is the clause which
requires the companies to make and
apply a schedule of rates, and then
permits the state insurance board
at any time to orber a flat per-
centage reduction on any class. That
means just as much work and money
wasted, and it all comes out of the
rate. The only chances in rates which
are popular are changes downward.
If conditions would Justify reduc-
lions in rates, there would be no
cause for complaint, but the recoitd
of the board shows that it only or
ders reductions and will not per-
nit any increases in rates, no mat
ter how much they are justified by
the conditions.
The board apparently is not con-
crened about the troubles in which
it has involv<i the business interests.
Its members are getting their salar-
les, which they collect from the in
surance companies; and under the
new law are given broader powers
and an increased appropriation. The
people of Kentucky and especially
the business interests should under
stand that the fire inurance CON-
panics were careful u make a clear
record in this matter, and gave ample
and official advance notice that they
would be compelled to suspend bust
ness if the Glenn-Greene bill went
through. Chairman Laffoon and eth
or hackers of the measure SCORED
at this and declared that the insur-
ince companies Were blufflng. The
action by the companies has shown |
hat they were not bluffing, ard the !
responsibility for the Kentucky trou- /
Die rests upon those who misled the |
legislators and refued to permit them
o heed the remonstrances OF the |
insurance companies, the Louisville
Board of Trade and other important
commercial organizations Of the
,tate.