Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-10-27

been said against him. true or false"
Iona Newspapers
IN DEFENSE OF RISK Law.
! iSioux City Journall
The publisher of this newspaper re-
ceived a distinct shock recently when
he discovered that for years he has
been assisting in the payment of the
insurance on the Hampton Chronicle
/ and other printshops over the state.
I The Chronicle is mentioned because it
! has been the most violent critic Of the
new insurance law in this state. This
year the insurance on this institution
was more than 20 per cent less than in
previous years. The Chronicle COM
plains that the new insurance bill has
permitted the companies to nulct the
/ people of the state Of vast sums. II
the bill does result in the state of af-
fairs which the Chronicle fears, 1t is
a bad bill, but if it has equalized rates
over the state and yet maintained the
rates where they are just and honest.
it is a good bill Here in Storm Lake
fire insurance is cheaper which would
indicate that in times past Storm Lake
! has borne more than its share Of the
insurance burden Of Iowa. In other
! words. this establishments has been
assisting to pay the insurance OF other
institutions over Iowa.-Storm Lake
PilotTribune.
! No doubt the Chronicle will be sur
| prlsed to find there are two sides to
question which it decided rather
hastily in the naturally restricted light
/ OF its own experience. Undoubtedly
when the debate warns up. as II Is
| sure to about the time the next legis-
lature convenes. hundreds Of pleased
I policy holders will be found ready to
testify to a reduction Of rates under
the new law Whether the avera ge rate
paid by the policy holders OF Iowa as
whole has been increased or de-
creased must be disclosed later For
I the present it may be said that If there
has been an increase It has come in
/ spite Of the precautions taken by the
| insurance department to prevent It,
! In a recent letter to Editor G. l.
| Caswell. of the Des Moines Bulletin. a
/ member OF the senate. who voted for
the law. but has since become dubious
of its wisdom. Commissioner English
explained the basis Of the present bu-
reau rates. Eventually under the new
! law the Iowa rates will be based on a
new survey. which is now in progress
and will not be completed for many
months. At the outset the rates adopt
! ed by the new rating bureau and ten
tatively approved by the insurance de-
/ partment We're based on the published
rates of the old Cedar Rapids ratfE
I bureau. These rates were increased or
diminished a certain percentage wholly
in the interest Of equalization. The
main purpose Of this "once over" re-
/ vision was to remove glazing discrimi-
nations between communities and
/, classes Of risks. Before giving tenta-
| tive approval to the new schedules.
however. Commissioner English took
into consideration the fact that there
had been widespread cutting Of the old
bureau rates and that in many COM
munities the average bureau rate was
not the rate actually paid. Commits
sioner English explains his efforts to
make allowance for this as follows:
When submitting to me a prelim
mary schedule of percentages, 1t was
apparent to me that the application Of
same in connection with the new term
rule to be established would increase
the average cost Of insurance paid by
the people of the state This was
unwilling to permit. I recognized, Of
course, that in the equalizing Of rates
charged as between the various prop
critics by the application Of non-dis-
criminative schedule some would nee
essarily be increased and others low
cred. My idea of proper adjustment
at this time was that the amount paid
by Iowa policy holders as whole
should not be increased.
"All investigation Of rates being
charged by thirty-one leading COM
panies operating in Iowa upon 1880
risks, disclosed to me that an average
cut of about II per cent from the
schedules Of the old inspection bureau
was In force. Some companies were
cutting but very little, others more.
1nasmuch as business had been ac-
cepted voluntarily by the companies on
this basis. held that the department
was justified in regarding same as
adequate when applied without dis
! elimination. In view OF this situation
took the position that unless this
Judgment was accepted the department
would be justified in making an order
putting such basis IN force. A new
schedule Of percentages was therefore
worked out and filed by the bureau
and as a result lows will at once en-
Joy lower rates than probably would
have been promulgated had the law
not given the Commissioners power to
review rates"
Incidentally Commissioner English
tells Senator Caswel1 that fnvestiga-
tons so far as they have progressed
j go to show that the general level OF
the new rates is lower in Iowa than IN
Wisconsin. Minnesota. Michigan, In
. diana, Missouri or Kansas.
II in fact it shall develop that there
has been n, increase in the average
cost of Insurance. In Iowa the bottom
will fall out of the case against she
rew insurance law And in any event