Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-12-21
INSURANCE CIRCLES or STATE
TO BLAME FOR PRESENT
ANTAGONISTS.
STORM EXTENDS FROM IOWA
TO SEVERAL OTHER STATES
Having Succeeded In EmaseuIatino
Workmsn's Compensation Law, In
suranee Men Become Grsspins and
Seek to Override Other Meritorious
, Measures.
Special to Times Republican.

Special to Times-Republican.
| Des Moines, Dec. 81. From the
storm that has been stirred UP and the
outcry that is being made, one might
infer that the ententers and alliance
and the Turks and the Japs and all the
rest Of the worlds fighting force had
been turned against the insurance
companies, and the biggest battle Of
the war is under way.
| The storm which Commissioner
Garst started in Iowa last fall when
he wrote his report on workmen's COM
/; pensation has been carried to New
York where rate making is an indus
try: and the other day the insurance
commissioner Of Illinois "blew up" fol-
lowed by minor explosion in Mis-
souri,, and on top Of that was the ac-
ton of the national convention of in
surance commissioners.
! The Garst plan is for the state to
take out of the hands of the casualty
companies the right to levy tribute on
all industry and to have the state con-
troll the compensation funds.
1 u0 4AlllOlS PIOpOSdl 1S 70 udNo LIS
same thing done as to all fire insurance
business and to adopt insurance pure
and simple. Missouri looks along the
! same way.
| What was done at the national
meeting was virtual condemnation Of
the present system Of having rates
made in the interest solely of the COM
panies, with the insured having no
rights.
Started HoId.Up Game.
| What really has happened in Iowa is
| that the insurance people in their great
| glee over having emasculated the orig
inal workmen's compensation bill and
having enacted their own kind Of
law, Immediately became grasping and
greedy and started a hold-up game
which has turned the whole state
against unrestricted compensation in
surance. The industrial commissioner,
having exposed the thing boldly, they
are now digging trenches and prepar-
ing for siege.
| But the Illinois report in which Com
missioner Potts goes after the fire bus
mess is the most sensational thing
which has struck the insurance world
for a long time. But it closely follows
the line Of work which 1t was neces-
sary for tho legal department Of Iowa
to engage in for a long time-that Of
breaking up the organizations thru
which the insurance companies evaded
the Iowa anti-compact law. When
this was done Iowa secured reason
able handling Of the fire insurance bus
mess and there has lately been small
complaint.
Commissioner Potts, in a report Just
sent out, reported that after full inves-
! tigation he found that "the fire insur-
ance business is illegally and oppres-
sively conducted in Illinois and its
methods demand redical legislative re-
FORM" Continuing he wrote:
THE most Objectionable feature dis
closed is the usurpation by the stock
fire insurance companies of powers,
rights and privileges not incident to
their business and detrimental to the
best interests Of the people Of this
state. Such usurpation is accomplished
by means of nation wide system Of
interlocking organizations. comprising
all company officials from the presi-
dent to the local agent. with con-
trolling boards dominated by eastern
influence"
Potts Report stirs Things.
Details are given of this manner OF
controlling the business and fixing
rates. and absorbing companies, etc.
He gives statistics showing that the
cost of collecting and administering
the insurance tax is at least SO per cent
| of the amount collected, and he shows,
also. that the European experience
where the state handles the business
Is to reduce this cost to as low as Is
per cent.
But the Potts reports stirred things
up greatly. The Insurance World, a
leading insurance organ, hasa page or
two on the Amazing absurdities of
Superintendent Potts" and his aston
ishing ignorance" OF the underwriting
business. So the war is on in Illinois.
The commissioner does not, however,
make start for state insurance all at
once, but suggests supervision and reg
ulation Of rates.
AT the national convention of insur-
ance commissioners the plan Of reform
In insurance matters as outlined In
the report Of a committee headed by
Commissioner Eckern, Of Wisconsin,
was adopted. This includes the filing
of schedules of insurance rates with a
state official and also the power given
to the commissioner to revise such
rates and reject those that are exor-
bitant. This plan is to be recon-
mended as uniform for all the states.
1t would, so the commissioners believe.
be a long step toward heading off the
movement toward state insurance
which Is making great Roadway in all
the states.
The fact Of this general storm in
other states foreshadows some work
this winter in Iowa for the insurance
lobby.
BEST SALE OF SEASON.
Record Prices Of Year in Grinnell
Vicinity Obtained by II. Nj. Bray.
Special to Times Republican.