East Oregonian : E.O. (Pendleton, OR) 1888-current, 1915-01-21
WELLS HAS OPPOSED
INSURANCE REFORMS
AS ACTIVE LOBBYIST
COMPANIES SHOULD CIRCULATE
OWN AFFAIRS" HE DE-
CLARED IN REPORT.
Favored Combination Reducing Com
missiOns-IIas Taken Active Part
in Opposing Insurance Legislation
Proposed by Ferguson in the Inter-
csts OF Public.


SALEM, ore, Jan. 21.-At noon
Yesterday Harvey Wells became state
insurance commissioner. succeeding
j. w. Ferguson, who was removed
/ By Governor James Withycom5e for
political reasons.
] With the change in commissioners
Il Is expected there viii be marked
change in the policy OF the depart
ment. as Mr.. Wells. who for many
years has been in the employ Of the
George H. Tyson Insurance agency,
and has been an active lobbyist against
insurance legislation proposed by
Commissioner Ferguson and others in
the interests OF the public
In 1912 Mr.. Wells was a member
Of commission appointed by Cover
nor West to draft a new insurance
code. The commission failed TO agree
and then Commissioner Ferguson sub
mtted a code he had prepared This
was approved by all the members OF
the commission except sir. Wells.
In a written minority report to the
Governor. Mr. Wells stated that his
objection was 20 the section author
izing the organization Of rating bu-
reaus by resident general agenets re-
presenting fire insurance companies
He also objected 10 giving the insur-
ance commissioner power Of super
vision over fire insurance rates, say
ing that the insurance companies
should have the right Ito regulate
their own personal affairs"
In reference TO the supervision Of
the insurance commissioner, who
would. under this section. have juris-
diction over the matter OF rates. ]
have 10 state that this appears TO me
to be the height Of folly" states Mr.
Wells in his minority report. for the
reason that the insurance commission
er has no data OF any kind whereby
he could judge the correctness Of a
rate; and while there is no good rea-
son why the insurance commissioner
should not have the right TO examine
the accounts and methous Of a rating
bureau. the knowledge OF ascertain
ing an equitable rate upon any classi-
fication would be entirely foreign TO
his office"
He argued that the insurance men
themselves are so familiar with the
business and so closely connected
with the home office and the Nation
al Underwriters association that they
are in much better position to fix the
rates than would be the insurance
commissioner.
In Favor OF Combinations.
Wells also argued in favor of allow
ing the insurance companies to form
combinations as to the amount of
commission TO be paid TO agents. He
said II this was not done the commits
sions would grow from Is per cent
which is the percentage ordinarily
paid to country agents for commits
sions, to 90. So. or even 40 per cent
"A combination Of this kind would
not be an injustice to an agent, for
the reason that they would all be on
an equal footing" he said. "and any
reduction in rate could be made on
an equal or average basis and the
public benefited thereby"
When the proposed code was in.
troduced in the senate two years ago.
the insurance lobby became so strong
against it that the bill was finally
withdrawn.