Rensselaer Semi-Weekly Republican, Volume 39, Number 90, Rensselaer, Jasper County, 16 July 1907 — BANE OF THE LIFE INSURANCE COMPANIES IN INDIANA HAS BEEN LIFTED AT LAST [ARTICLE+ILLUSTRATION]

BANE OF THE LIFE INSURANCE COMPANIES IN INDIANA HAS BEEN LIFTED AT LAST

ISpcclnl Correspondence.] first tfme in recent years—the only Instance in the history of many companies—special contracts are not being written by life insurance companies doing business in Indiana. It Is likely that this bane of the life insurance business will be no longer experienced in this state. All of the companies ceased writing special contracts the first of June, not by their own volition, but as the result of a decree Issued by Auditor of State Billheimer. That this great reform in the insurance business has been accomplished is due entirely to the fearless position taken by the auditor of state and his determination to compel the companies to cease writing a policy that Is generally believed to be a burden to the vast majority of policy holders who do not have special contracts. Many of the companies protested against the decree of the auditor, but the latter stood his ground and informed the companies that unless they ceased the special contract writing he would bring suits to mandate them to obey the law. There was some question as to whether the auditor could compel the companies to give up writing special contracts, but he took a chance and they acquiesced in his demands. Big pain for Public. The result of the auditor's crusade will be a big gain to the public that buys Insurance. Experts figured recently that the burden of special contracts on the other policy holders cost them 15 or 20 per cent annually on their policies that they should have received in dividends. In view of the fact that there is probably more than $100,000,000 worth of Insurance in force in this state, the annual saving to the policy holders can be appreciated. Many of the companies objected to the auditor’s demand on the ground that it would put them out of business. This appeal came from some of the younger organizations that were at-tempting-to build up on an exclusive special contract basis. It was the opinion of the experts connected with the auditor's department that it would be unsafe to permit any of these companies to continue writing special contracts. Three or four have quit business since the auditor made his ruling, but they were not strong enough to stand up and make a fight within the laws as the auditor interpreted them. It is believed that as the result of the action of the companies the Insurance business in this state will soon be on a much stronger foundation and that it will be only a matter of a very short time before Indiana takes first rank as the home of insurance companies that can be relied on. Republican Reform Accomplished. One of the principal features of the Insurance bills defeated during the last session -of the legislature because of the almost united stand of the Democrats against them was the clause forbidding the writing of special contracts. When these bills were defeated it was .not thought that there would be any Insurance reform for at least two years. The Insurance men who had fought the wills were In high glee, believing that their victory woultf be permanent. It develops, however, that they reckoned entirely without their host and that this desirable reform has finally been accomplished by the servants of the people who were nominated and elected by the Repute Ucan party. Apropos of the reeult of Auditor Blllhelmer's demand, it may be stated

here that the Democrats were consistently opposed to insurance reform during the recent session of the legislature. The only time they were ever for the Babcock-Farber bills was when they thought they might put the Republicans in a hole. Then their leaders sent out the word that they must support the measures. They thought they were playing a political masterstroke, but a little later, when they thought they could play more politics, they reversed their actions and caused the death of the bills. Those who were in close touch with the Democratic leaders throughout the session knew that they never thought seriously of the proposed reforms in the insurance business and that they never cared to take any position except in hopes of embarrassing the Republicans. Under these circumstances the reform that has been accomplished by the auditor’s department is all the more significant. Not asly has the writing of special contracts been stopped, but unddr the new laws enacted by the recent legislature the auditor is enabled to keep such close tab on the life insurance companies that the opportunities for fraud have been minimised. The auditor has a new deputy in the insurance department who Is giving such close attention to the securities deposited by the Insurance companies that they will not have any chance of putting up worthless paper as a guarantee of their good faith and as security for the money they have obtained from their policy holders.

When the local editor and the local merchant put their shoulders to the wheel of local progress the town will move, its industries will thrive, it will prosper. But remember the editor cannot do it all; he asks and must have the merchant’s assistance.