The Birmingham age-herald., 1923-09-26
Governor Signs Bill Taking Penalty Off Fire Insurance Companies
STATE CAPITAL BUREAU l
 THE AGE-HERALD !

Members of the house of repre- sentatives witnessed an unusual spectacle Tuesday when they took from the table a motion to reconsider the vote by which they defeated the state self-insurance bill last Friday: proceeded to reconsider the vote ana then after reconsidering the vote passed the bill which made an ap- propriation of S100,000 as an insur- ance fund out of which the state will pay losses on public buildings, including school buildings owned by the state.
 It is an unusual thing for motion to be taken from the table, in fact the general opinion has been that when bill has been passed, mo tion made to reconsider and the mo- tion to reconsider laid on the taple no further effort can be made to take up the measure again. But the insurance bill passed through Una process.
 Opponents of the bill when it was considered last Friday, contended that it would put the state into the fire insurance business since all ire policies would be cancelled and losses would be paid out of the m surance fund. They were successtdl in defeating it and one of their mum Der. in an effort to administer the last rites oyer it's bier made a mo- tion to reconsider and then moved to lay his own motion on the taDle. Representative J. Lee Long of Butler who voted against the bill made the motion to take the motion to recon slider from the table and was sue cessful, this put the bill in line Tor passage.
 Under the terms of the bill an in- surance fund of $100,000 will be ere ated for use in meeting losses which may be incurred before the insur
 
 sufficient to protect losses. Instead of paving premiums to fire insur- companies in the future, the state will pay into the special insurance fund about 60 per cent of the amount which has gone annually to fire in s11rance companies. When this fund sf all have reached S500,000 the sur plus will be returned to the gen l eral fund.
 The measure was proposed by the | administration and was introduced l by Senator Foster. 1t passed the l of the bill contended that it Woulo | put an unusual hazard on the state i and that the insurance fund, whlcl ever would be greater than S5OO,ooo would be forced to protect fire losses on property valued at upward O. | SlS,0OO,OO0 The state now pays an l nually about $113,000 as premiums on fire insurance.
 O O o
 Penalty Removed.
 Governor Brandon attached his signature Tuesday afternoon to th' bill repeating the code section whlcf 1 levied penalty of 25 per cen against all fire insurance companies wIich are members of tariff asso' 1 citation. This put an end to f1gh l wtich has been made at every ses sion of the legislature for 70 years
 Insurance companies contende' that this section of the code forced them to collect higher premiums ant predicted that as soon as 1t wa: repealed the insurance rates in Ala bsma would be decreased. The sec ton was written many years ago wien war was made on all insur' ance companies, which were mem bers of a tariff association, anc 1 whose rates were controlled by th' 1 tariff association.
 Agitation was started Tuesday il favor of the veto of the bill bu agents of insurance companies con ferred with Governor Brandon dur ing the afternoon and he immedi' | ately attached his signature to th' l bill.
 Governor Brandon also attached | lis signature to the bill making ap l pfopriations to the states higher in stitutions of learning, including the University of Alabama, Alabama Polytechnic and Alabama college (Montevano). Several other loca bills also met the approval of ths | governor.