Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-03-05
DRASTIC INSURANCE LAW
Proposed For t!,e Protection Of Some
Maine Counties

II IS understood that within 4 few
days the most drastic and far-reacn-
ing insurance measure ever present
ed to the Legislature of Maine will
MAKE its appearance. It Will give the
STA. = insurance comm. ssionar the
absolute power TO fix all fire insur
ance premium rates IN the State OF
Maine
This bill IS beng drafted because OF
4 strong complaint made 10 q. Wal
don Smith. State insurance commas
sione-. by Il delegation of prominent
Arnostool county men. This delega-
ton, consisting Of Clarence a. Pow
ers Of Fort Fairfield. member Of the
Executive Council, and state Sena
tors belmont Emerson Of Island Fails
and Lea1der e. Tuttle Of Caribou,
charged that ArOCs took county was
being Disseminated against by fire
insurance companies and they had
with them a policy on State proper
- to which an 50 per cent. loss clause
had been attached while the fiat pre-
MUM rates We're preserved without
+ the usual reduced credits. Repre-
sentatives Of the insurance c0mpa-
mes with whom Commissioner Smith
took the matter up save as the rea-
son for TINS unusual proceeding the
abnormal loss "a ito and the unprotit-
able business relations OF fire insur-
ance companies with Aroostook
county property.
The insurance comm .ss,ore- earn
estly assured the men from Aroos-
took that he felt soma remedial as
ton could be secured and that he
would Immediately get in touch with
the New England Insurance Ex-
change Of Boston with a view of ad-
ju4icating the matter. He further de-
Clared that he would INSIST upon re-
! lief from from such discriminatory
I rulings as the exchange might have
! made. not only upon State property.
/ but also upon high grade risks OF
private property.
NJ, Smith immediately wired
! George E. Macomber OF augusta.
Frank W. Alden IF Waterville. Ben
Barker OF Portland and W. D. Chad
| bourne Of Portland, the members OF
the committee representing The ey-
change having n charge The Arcoll-
TOOK fire insurance underwriting. Tho
commissioner assured these officials
/ tnat the department was ready to
move N the matter Immediately an
! less definite action was taken AZ once
10 relieve the situation and . put
out of consideration as moral haZ-
aru rlsks SUCH State property as had
been tt'is Disseminated against The
acton OF the insurance lepar. lnent
! WIS endorsed by the most influential
| fire underwriters OF Portland Ban
COR ana other important centars. who
declared that such discrinaina ION
was wholly Unca!lcd for Wiia.n :
! hours Chairman Alden of the ABOVE
named comm taee teleph0net Com
missioner Smith that So far as state
! property was concerned the clause
! would be removed and the State ia
| terests IN tbs connection would 10
| immediately relieved r.0m an bu.-
/ C.enSome clause.
IN response TO this concession. -h,.
I commissioner said N his opinion b.
| believed that il was highly advisable
! that distinct and general under
standing be had upon tn. question
/ and appointed Thursday afternoon I'll
. o'clock. March 6, for 4 hearing il,
! his department to which the Aroos-
! TOOK men have been invited togeth-
| er with the committee representing
the New England Insurance E.;-
, change- All people who may be IN
| terested viii then be gwen an on
F., portunIty TO be heard. for it involves
not only an attempt to discriminate
against one county. but, according
to Mr. Smith. creates the question
as TO whether Or not the validity of
such discrimination does not affect
the license rights OF companies With
drawing or having withdrawn from
! Aroostook county underwriting 20 do
/ business in other sections OF the
State
The contemplat ted rate fixing bal.
II IS argued. would prevent any such
recurrence Of the condition COM
planned Of by Councillor Powers acd
senators Emerson and Turtle.