The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-01-24
AN Risks Given Protection
Come Under the Bill.
MUTUAL COMPANIES AFFECTED
Senator POmerOy Afraid Farm
ers Would Be Imposed Upon.
NighswOnger Wins Fight, How
ever, With Votes to Spare.


to spare the senate today passed a bill
introduced by Nighswonger of Sedg-
wick, requiring that fire insurance
companies insuring property in terri
tory contiguous to cities and under the
protection OF city fire departments
shall pay a percentage of the pre-
miums on that business into the fire
mans relief fund.
The fireman's relief fund is created
from a small percentage of premiums
on property within cities having paid
fire departments. The purpose of the
bill was to make the bill cover prop
erty outside the city limits but still
under the protection of the depart
ments.
There was no particular objection
to the bill in the main but nalf a dozen
members feared it would work harm
to the mutual fire insurance COM
panies and an amendment was offered
eXempting them from it's provisions.
The excuse given was the statement
that mutual companies are not oper-
ated for profit.
Policy Holders Profit.
Il understand that they pay no div
idends to their stockholders said
Senator Nighswonger. but the policy
holders profit by obtaining a lower
rate in mutual companies than in old
line companies. The method is diff
ferent but the principle is the same
Senator Getty of Wyandotte, who
has been clashing with Senator
Nighswonger regularly. changed front
on this particular bill and aided the
senator from Sedgwick
In my county," he said. additions
have been plated outside the city
the people and institutions located in
territory contiguous to the city limits
expect and receive projection from the
city department. That being the case
the fire insurance companies writing
insurance upon that property should
pay a part of the premium into the re-
lief fund the same as they do upon
business written inside the city limits
And there is no reason why a mutual
company should not pay the same as
an old line company. 1t reaps the
same benefits The fire department
plant is insured in a mutual or an old
line company when it makes a run
to put out a fire.
Force Rate Raise.
Senator Pomeroy of Jackson, fear
ed mutual companies would be re-
quired to raise their rates generally to
pay the premium.
IldI, ne Sdlu, WOuIu require
farmers all over the state insured in
mutual companies to pay tribute for
the benefit of fire departments in
cities in which they have no interest. -
1t was explained by Senator highs
wonger that the bill would apply only
to business written in the territory
contiguous to the city limits, hence
would have no bearing whatever upon
farmers and their premiums.
And what if it did," asked Senator
Getty, nothing cuts down fire insur-
ance rates like ample fire protection
Nothing cuts down losses like fire pro-
lection. 1 maintain that the ia rmer
in a mutual insurance company bene-
fits as much as anyone else from CITY
fire department protection insured in
his company
Senator Nighswonger finally offer
ed an amendment excluding all mu-
tual and reciprocal fire insurance
companies mot sharing in the bene-
fits of city fire department protection.
Under that amendment if they write
no business in the territory referred
to in the bill, they will not come un-
der the provisions of the act
On roll call twenty-seven senator's
voted for the bill and six voted against
it.
A bill introduced by Senator Hart
of Jewell, lengthens the terms of Of
(CODtinIIeu on p. 90 Tue