The Houston Post. (Houston, Tex.), Vol. 26, Ed. 1 Wednesday, September 7, 1910 Page: 4 of 14
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lltniTn unn rvir 1 O 1 IV ! cl hw ''"V: companies for aay city town. village or ! such poMcy U the eideretlon named or poli cy of laminae other than aa pro- w"flS Tnct OKI ' "' ' "-i '
I I I D A Ml L7 DII 1 IV I A l I mentof any city. village or towa In which loeautyTehall tot take effect and such I to ekuk u4 Im N MMpM lb vlM li Ihli id . . 1 UC v
I K A l .r 111 I I 1.1 I A W I " fire occurred then the iipramrt company or companies .hell not writ tn- I co-lnurno. d.UM or provision shall b I 7 v ' . . ' k
II lkJUl Villi VJJW MJILLj 1 kJ lvil Vf I the fire marshal clerical Mtn. wit- suranee IharaundTr until auch maximum I binding on the assured. I REBATES UNDER BAN. C!al TIllaArl
Governor Campbell Yesterday Affixed Signature
to Measure Enacted By Legislature.
1 " (reajtos Pert
AUSTIN. Texas. September . By re-
ceiving the Rovemor's signature this a(V
rnoon. free conference committee sub-
stitute for senate bill No. T became the
law by which the fire Insurance business
In Texas will be regulated for a while
after the middle of December taikng ef-
fect ninety days after adjournment of
the present session of the legislature and
being successor to the present tire rating
board statute whuh has been effeetle
ince January 1 1910. This law repre-
sents nearly two months of travail on
the part of the legislature and is desig-
nated as a compromise measure the ideas
of the ser.aie greatly pre.lo:niraliiii:
It wa said ih.it ii-e Insurance business
Will be r tulnted for a uile by this
measure becans-- it is M?hlv probahla
that the imp.-: fc.-tirns of the law may
result in its repeal by the next regular
session of the !rlslauire and the de-
cision that the State had best leave the
Insurance companies and ti e people to
solve their ddi: proMenis. As previous-
ly slated having fa. led to secure a two-
thirds vote in the house the measure
does not bear the emergency clause.
The measure at'mpts to prrvide for
competitio'i it) o':: -chim lisrrin-.irs-tlon.
In accordance ith the wish of the
house where t e rate varies for risks
for the s.in-e ns. such rate must be
given publ:- itv as prescribed in the law.
The State irsu-.ir.ee Nard. provided for
In the a -t. ;s civen the authority to lix
and rsvulate nues on fire insurance. The
present statute delegates that preroga-
tive to the Insurance companies the
rating board having power merely to
change a rate after it Is determined by
the insurance companies.
The two members of the board are
called secretary ard fire marshal re-
spectively their titles Indicating their
duties.
The maximum sr-eclfie rate prescribed
Is the rate now prevailing on risks ac-
cording to the fire rating board's ord r
of June S. and as amended July in-
cluding the per cent reduction
The maintenance of the board Is pro-
Tided for bv requiring the insurance eom-
penles to pay annuallr. prorated as pre-
scribed the sum of 125.000
THE NEW LAW" IN FULU
The law In full follows:
An act providing conditions upon which
Insurance companies writing contracts or
policies of Insurance again.:- the hasard
of fire may transact business in the Stat?
of Texas and providing for the making
promulgation regulation and control of
general basis schedules insurance rates
and premiums and forms of Insurance
policies; providing certain conditions and
limitations on Insurance contracts or poli-
cies; providing for maximum insurance
rates and how companies may wr te con-
tracts of Insurance at rates loner than
the maximum rates and the filing of
statements of reduced rates within the
8tate insurance hoard and certified c rtes
thereof with city secretaries ar.1 county
clerks and fixing the fees of said last two
officers for such itrvice: to prevent 'In-
crimination in insurance rates or pre-
miums except as provided in this act : to
create a State insurance board and pre-
scribing the dunes and authority of said
bt-ard and each member thereof and fix-
ing the salaries of the members thereof;
and prvvidir.g for their appointment and
removal; providing certain fluifes for and
to give certain authority to the commis-
sioner of insurance and banking appro-
priating money enough to carry out
the provisions of this act: providing p n-
sltica for the violation of certain provi-
sions of this set: fixing the time when
this a't shall go Into effect and repealing
chapter 18 of the general lavs of the
Siitte uf Texas passed by the first caild
n ssion of the Thirty-first legislature .ind
all other laws and parts of laws in con-
flict herewith and declaring an emer-
gency. Be it enacted by the legislature of fho
Btate of Texas:
Section 1 Every fire Insurance com-
' pany every marine insurance company
every fire and marln1 insurance company
every fire and tornado insurance 00m-
ny and each and every insurance coin-
prny of every kind and name issuing a
contract or j..olioy of insurance or con-
tracts or policies of Insurance against
loss by fire on property within this State
whether such property be fixed or mova-
ble stationary or in transit or whether
such property Is consigned or billed for
shipment within or beyond the boundary
of this State or to some foreign country
whether such company is organized under
the laws of this State or under the laws
of any other State territory or possession
of the United States or foreign country
or by authority of the federal govern -n.ent.
now holding a certificate of au-
thority to transact business in this State
or hereafter granted authority 10 trans-
act business in this State shall be deemed
to have accepted suqh certificate and :o
transact business thereunder upon con-
dition that it consents to the terms and
provisions of this art and that it agrees to
transact business In this State suhjeot
thereto; It being Intended that every con-
tract or policy of insurance aga nti the
haaard of fire shall be lssi el in accord-
ance with the terms and provisions of tins
act and the company Issuing the r3:ii9
ipeverned tneieby icgardless of the xir.J
and character of such property and
whether the same is fixed or mouoK
stationary or in transit. incli'iug :he
shore end of all marine risks insured
against loss by fire.
STATE INSURANCE BOARD.
Sec Z. That there may be reasonable
and lust Insurance rates In Texas there
is hereby created a board to be known
as the State Insurance board which shall
RHEUMATISM
PAINFUL & DANGEROUS
Rheumatism is dee to a diseased
condition of the blood cells and cor-
puscles brought about by an excess
of uric acid in the circulation. It is
Hot only a very painful disease but an
extremely dangerous trouble. The
briny acrid state of the blood gradu-
ally forms a coating over the muscles'
and by depositing a cement-like sub-
stance in the joints frequently termi-
nates fatally or leaves its victim a
hopeless cripple. It is natural to
'doctor"the spot that hurts and it is
quite right to use liniments hot appli-
cations etc. to get temporary relief
from a painful joint or swollen tendon;
but Rheumatism is not a skin disease
and such things when depended on
ajone make one careless and the dis-
ease gets a firmer hold on the blood.
S. S. S. cures the disease because it is
the greatest of all blood purifiers. It
goes into the cir-
culation and re-
moves every
particle of the
irritating uric
acid builds up
the blood
makes it rich
and oily and in
this way pre-
pares it for the
proper nourishment of all joints
muscles nerves and bones. If you
have Rheumatism get the uric acid
out of the blood by taking S. S. S a
purely vegetable medicine and enjoy
freedom from its misery. Book oa
Rheumatism and any medical advioa
xrca to au wno wnie. '.: ' 1
pnrr inana oo Attest. I
be composed of the commissioner of In-
surance and banking who shall be chair-
man thereof and two members who shsll
bt appointed by the governor by snd with
the consent of the senate subject to re-
moval as provided for removal of State
f fleers by article Kit of the revised stat-
utes of Texas; the members of said board
other than the commissioner of Insurance
and banking shall be appointed as herein
provided within ten dsijs after this act
takes effect; one of said members to be
so appointed shall b appointed for a
term ending February I. Ull and bien-
nially theref;er; the other of said mem-
bers of said board shall be appointed for
a term ending February 1. lsll and bien-
nially thereafter and the governor in
making his first appointments to fill these
r sieciive offices shall designate which
of said officers shall fill the term ex-
piring February 1. 1911. and which of said
officers shall fill the term expiring Feb-
ruary 1. 112. The commissioner of In-
surance and banking for the purpose of
this act may be referred to as the com-
missioner of insurance.
Sec 3. The members of said board
other than the commissioner of insurance
and banking shall each receive as com-
pensation for their services the sum of
J250O per annum: and the commissioner
of insurance and banking shall receive
ns compensation or salarv for his serv-
ices under this act the sum" of 1500 per
annum In addition to his compensation
as now fixed by law. Such salaries of the
said two appointed members of said
board and the $."iO salary of the commis-
sioner of insurance and banking togeth-
r with the necessary compensation of
experts the clerical force and other per-
sons employed by said board and all
necessary traveling expenses and such
other expenses as may be necessary in-
curred In carrying out the provisions of
this act. shall be paid by warrants drawn
by the comptroller upon the State treas-
urer upon the order of said board; pro-
vided that the total amount of all sala-
ries and said other expenses shall not
exceed the sum of l!5(XH) annually: and
for the purpose of carrying out the pro-
visions of this act there Is hereby appro-
priated out of any money in the State
treasury not otherwise appropriated the
sum of 135.000 or so much thereof as may
be necessary for the fiscal year begin-
ning September 1 1910 and ending Au-
gust 31. 1911.
POWERS OF BOARD.
Sec i The State Insurance board
shall have the power snd authority and it
shall be Its duty to prescribe fix con-
trol and regulate rates of fire Insurance
as provided In this act. It shall make and
prescribe general basis schedules togeth-
er with rules and regulations for deter-
mining maximum specific rates there-
from and furnish each insurance com-
pany now doing business in this State
or which may hereafter be granted a
certificate of authority to do business In
this State a copy of such g-neral basis
schedules; and the said board shall also
have authority to alter or amend such
general basis schedule In accordance with
the provisions of this act Said board
shall al supervise control and regulate
rates of Insurance and snail have author-
ity to alter and revise and to raise and
lower such rates and to alter and re-
vise raise and tower such general basis
schedules or any part thereof and de-
cide all questions required authorized or
permitted to be passed upon by said
board under the provisions of this act.
Said board shall also iiave authority to
employ clerical help experts inspectors
and such other assistants and to incur
such other expenses as may he necessary
In carrying out the provisions of this act
not to exceed the sum of 125000 per an-
num including salaries of the members
of the board and all other expenses to be
paid out of the State treasury
It shall be the duty of said board to
ascertain as soon as practicable the
annual fire loss In this Slate to obtain
to make and maintain a record thereof
and collect such data and information
with respect thereto as will enable said
board to classify the fire losses of this
State the causes thereof and the amount
of premiums collected therefor for each
class of risks and the amount paid there-
on. In sucii manner as will be of assist-
ance in determining equitable Insurance
rates methods of reducing such fire
Iqpees and reducing the Insurance rates
of the 8tate.
Sec. 5 For the purpose of facilitating
the work of said board one of the ap-
pointed members thereof shall be selected
by the board as its secretary who shall
perform the duties which appertain to
that position and whose official title shall
be "Secretary of the State Insurance
Boarfd": the other of said appointed mem-
bers thereof shall be selected by said
board as fire marshal of the State Insur-
ance board and his official title shall be
"Fire Marshal of the State Insurance
Board"; but the said members so select-
ed as secretary and fire marshal as afore-
said shall receive no compensation for
filling their respective positions other
than their salaries as- members of the
State insurance board and shall perform
the duties of these respective positions
at the all! of the board but their ex-
penses incurred in performing the duties
of these positions shall be paid as pro-
vided In this act.
FIRE MARSHAL'S DUTIES.
Sec. . It shall be the duty of the fire
marshal of the State insurance board
who. for the purpose of this act. may be
referred to as the Stat fire marshal: at
the direction of the board and upon the
request of the mayor of any city or vil-
lage or the chief of a fire department of
any city or village: or any fire marshal
where a fire occurs within such city or
village; or of a county or district Judge;
or of the sheriff or county attorney of
any county where a fire occurs within the
district or county of the officer making
such request or of any fire Insurance
company or its general. State or special
agent interested in a loss; or of a poilcy-
hohler sustaining a loss; or upon the dl-
recunn of the State Insurance board to
forthwith Investigate at the place of sueh
nre the origin cau.-e and circumstances
of any fire occurring within this State
whereby property has been destroyed or
damaged and shall ascertain if possible
whether the same was the result of an
accident carelessness or design and
shall make a written report thereof to the
ttate insurance board and shall also fur-
nish lu writing to the county or district
a'torney uf the county In which such fire
occurred all the Information and evidence
obtained by him Includii'g a copy of all
the pertinent testimony taken In the
Tse.
Sec. 7 The State fire "--marshal shall
have the power to administer oaths take
testimony compel the attendance of wit-
nesses and the production of documents
and to enter at any reasonable time any
l-uildiiipM or premises where a fire has
occurred or is In progress or any place
contiguous thereto fo. the purpose of in-
vestigating the cause origin and circum-
stances of such fire. And he may enter
and examine at any reasonable time any
building structure or place for the pur-
pose of ascertaining the fir hasard and
may remove or require the owner or occu-
plant to remove or &afely store combus-
tible material dangerously exposed or Irn-
poperly plai ed therein and to remove any
unnecessary exposure to fire hasard
found therein; the said Slate fire marshal
Is hereby authorized when necessary to
apply to a court of competent Jurisdiction
for the necessary writs or orders to en-
force the provisions of this section and
in such case he shall not be required to
give bond.
Sec. S. If for any reason the State fire
marshal is unable to make any required
Investigation In person he may designate
the fire marshal of such city or town or
some other suitable person to act .fpr
him: and such person so designated shall
have the same authority as is herein
given the State fire marshal with refer-
ence to the particular matter to be in-
vestigated by him and shall receive auch
compensation for his services as may be
allowed by the Stats Insurance board.
If the investigation of a firs is mads at
the request of an insurance company r
at the request of a policy holder sustain-
ing kwa or at the request of the mayor.
HOUBTON DAILY POST:
nesses snd officers' fees incident ana
necessary to such Investigation shall be
paid by such Insurance company or such
tmitcv Koldr or auch cltv or town as the
case may be otherwise the expenses of
such investigation are to h paid as part
of the expenses of the Btate insurance
board. Provided the party or parties
company or companies requesting such
Investigation shall before such Investiga-
tion Is commenced deposit with the State
Insurance hoard an amount of money In
the Judgment of said board sufficient to
defray the expenses of said fire marshal :
In conducting such investigation.
AS TO ClVJl. ACTION.
Sec . No action taken by the State
fire marshal shall affect the rights of sny
policy holder or sny company in respect
to a loss by reason of any fires investi-
gated nor shall the result of any such
Investigation be given in evidence upon
the trial of any civil action upon such
policy nor shall any statement made by
any Insurance company Its officers
agents or adjusters nor by any policy
holder or any one representing him. made
with reference to the origin cause or sup-
posed orlgn or cause of a fire to the
fire marshal or to sny one acting for
him or under his directions be admit-
ted In evidence or made the basis for any
action for damages.
Sec. K The said board Is authorised
and empowered to require sworn state-
ments from any insurance company af-
fected by this act and from any of its
officers directors representatives; gen-
eral agents. State agents special agents
and local agents of the rates and
premiums collected for fire Insurance on
each class of risks on all property In
this Stale during an or all years for the
five years next preceding the first day
of January l'.'lO ami of the causes of
fires if such le known. If they are In
possession 01 such aata and information
or can obtain it at a reasonable expense;
an l said board Is empowered to require
such statements for any period of time
after the first day of January TOO; and
said board is empowered to require such
statements shuwing all necessary facts
and information to enable said board to
make amend and maintain a general
basis schedule provided for in this act
and the rules and regulations so applying
same and to determine reasonable anN
proper maximum specific rates and to
determine and assist In the enforcement
of the provisions of this act. The sail
Iniard shall also have the right at Its
discretion either personal or by some one
duly authorised by 11 to visit the offices
whether general local or otherwise of
any insurance company doing business
In this State and the home office of said
company outside of this State if there
be such and the office of any officers di-
rectors general agents. State agents lo-
cal agents or representatives of such
company and there require such com-
pany Its officers agents or representa-
tives to produce for Inspection by said
board or any of its duly authorised rep-
resentatives all books records and pa-
pers ef surh companv or such agents and
representatives; and said board or its
duly authorised agents or representatives
shall hsve the right to examine such
books and papers and make or cause to
be made copies thereof: and shall have
the right to take testimony under oath
with reference thereto and to compel
the attendance of witnesses for such pur-
pose: and any company. Its officers
agents or representatives falling to make
such statements and reports herein re-
ferred to and failing or refusing to per-
mit the examination of books papers alio
records as herein required when so caned
upon or declining or failing to comply
with sny provision of this section shall
be subject to the penalties provided for
tn section 15 of this act.
KEY RATE SCHED11.ES.
Sec. 11. Immediately upon the taking
effect of this act. or as soon thereafter
as practicable said board Is empowered
and it is hereby made' Its duty to pre-
pare a system of general basis schedules
together Mith rules for applying the same
for determining fire Insurance rates on
property In this State; the said general
basis schedules and the rules for apply-
ing the same to be at all times reason-
able; the said Iward may employ and use
any facts and information in the posses-
sion of or In the records of the present
State fire rating board as well as all
facts obtainable from and concerninK fire
insurance companies transacting business
In this State showing the experience of
said companies and eharjres for premium
on fire insurance anil generally as to the
transaction of their said business during
the years named in section 10 of this act
or during anv other period of time in
order to devise and fix reasonable gen-
eral basis schedules andxules for apply-
ing the same for determining such gen-
eral basis schedules showing the rates on
all classes of risks Insursnble bv anv
company In this State shall show all
charges credits terms privileges and
conditions vl k'h In anywise affect su-h
rates or the application of such rates to
specific risks or the cost of Insurance;
provided that su-h schedules and the
rile for applying the same shall be fur-
nished by the said board to any and all
Insurance companies affected by this act
applying therefor; and the same shall be
furnished t.i any citlxen of this State ap-
plying therefor upon the payment of the
aetual cost thereof: that such general
basis schedules and the rules prescribed
with reference thereto shall not take ef-
feet until said hoard shall have entered
an order or orders fixing the same and
shall have given notice to all insurance
companies affected by this act. author-
ized to transact business In this State.
FlUXd OF BASIS SCHEDT.T.E3.
Sec. 12. It Is further provided that
after the adoption and promulgation of
the general basis schedules and the rules
and regulations for applying the same
as herein provided for by the board every
Insurance company writing fire Insur-
ance policies within this State shall
within a reasonable time file with the
State insurance board Its application ol
said general basis schedules to the spe-
cific risks of the State and the specific
rates ohtained thereby In accordance with
the several provisions of this act; and
provide) further that any one or more
insurance companies may employ for the
application of such general basis sched-
ules arid the making of such specific
rates the service or such experts as they
may deem advisable for such purpose but
the i-or.truet or contracts of employment
of such experts shall first be admitted to
the State insurance board for Its ap-
proval; provided further that the State
insurance board shall have authority and
It shall be the duly of said board per-
sonally or by its agents to Inspect and
supervise the work of said experts In the
application of said general basis sched-
ules in tie determination of specific
ratesi which rates shall be the maximum
Insurance rates that may be charged for
Insurance In this State; provided fur-
ther that any company may write In-
surance at a lower rate than the maxi-
mum on any risk or class of risks In any
particular locality; and provided further
that any company making any such re-
duction shall forthwith file with the State
Insurance hoard a statement of such re-
duction showing the maximum rate and
the reduced rate thereon such statement
to be on forms prescribed by the board
and signed by the State or general agent
of such company which statement when
so filed shall be subiect to the Inspec
tion of the public. The State insurance
noaru. upon me flung or sucn statement.
shall file a certified copy thereof with
the city secretary of any city town or
village 01 sucn locality 11 mere be sucn
or if there be no such officer then the
hoard shall file certified ooov thereof
with the county clerk of the county of
such locality which said statement when
so filed shall be subject la public Inspec
tion. The county clrk or city secretary
aforesaid shall receive as compensation
the sum of 10 cents for such Statement
filed bv him. which shall be Dald to him
by the State Insurance board out of funds
which shall be deposited with the State
Insurance board for such purpose by any
auch companvl; provided further that
said company or companies shall file with
the hoard copies of all maps and copies
of the analysis of all applications of said
genral basis schedules to the specific
risks of this State if required to do m
bv the board. And It shall be the duty
of the expert or experts representing the
Insurance companies or any Insurance
company In this Stats to furnish at the
date of the Inspection to the owners of
all risks Inspected for the purpose of .ap-
plying the genral basis schedules pro-
vided for In this act. a copy of such in-
spection report showing sn defects that
operate as charges to Increase the insur-
ance rate.
It Is further provided that the maximum
pecifls i by a company or
WEDNESDAY MOBNING.' SEPTEMBER 't
spscifie rate shall bars been approved
by the Board: the hnanl ahal Ihava tha
authority to reject said maximum specific
rates so snade or say part thereof or to
alter amend modify or chance the soma;
cr to permit such maximum speclfio rates
toTecome effective for a limited time or
any rnodtncatlun or change thereof for a
limited time taNlts discretion; provided
however that tha said board shall have
authority In It discretion to permit the
said company or companies to apply the
said schedules of basis rates to risks other
than mercantile and special hazards with-
out having first submitted the maximum
specific rates so made to said board for
approval. But such rates that the board
may permit any company or companies to
apply without the board's approval shall
always be subject to review by the board
snd by tho proper showing of any policy
noiurr or noraera mav oe reouceo. 11 is
further provided that all changes niade
by any company In the maximum specific
rates made by It In applying the general
oasin scneuuies snail be subject to tne re-
view of the board for Its a not-oval or dis
approval and shall be reported to the
ooara in sucn manner anil torm as may
be prescribed by the board. Provided
further that any insurance company or
companies affected by this act shall have
tne ngnt at any time to petition tne
board tor an order changing or modifying
the general basis schedules or the appli-
cation of the general basis schedules f
the specific risks; and the board shall con-
sider such petition as provided tn this
set and enter such order as the board
may deem Just and equitable to sucn comr
rany or companies to competing eoml
ponies and to the public. Provided fur-
ther also that any company or polloy
holder affected by this act shsll have the
right to apply to the board for an order
reducing the maximum specific rates of
Insurance on property within this State
and the board shall consider such appli
cation and enter such order with reterence
thereto as it may ceem Just and eoultahle
to such company to competing companies
and to the public.
The board shall also have the power
and authority to give each city town vil-
lage or locality credit for each and every
hasard they may reduce or entirely re-
move also for all added rtre-nghtlni
equipment or Improvement that has a ten-
dency to reduce the fire hasard of any
such city town village or locality. The
board shall also have the power and au-
thority to compel any company to give
any and all policy holders credit for any
and all hazards that said policy holders
may reduce or remove. Said credit shall
be in proportion to such reduction or re-
moval of such hazard and said company
or companies shall return to such policy
holder or holders such proportional pant
of unearned premiums charged for such
hazards that may be reduced or removed.
FURNISH POLICT HOLDERS COPIES.
Sec. IS. It Is provided that after the
approval by the board of the maximum
specific rates made by the Insurance com
panies hereunder that thereafter when a
policy holder shall be furnished by the
company with a copy of the analysis of
his maximum specific ra'e showing the
Items of charge and credit which deter-
mine the rate unless such policy holder
has theretofore been furnished with such
analysis of his rate; it Is also further pro-
vided that the general basis schedules and
all maximum specific rates and lacal tar
iffs filed In accordance with the provisions
of this act shall be opn to the Inspection
of the public and each local agent shall
have and exhibit to the public copies
thereof relative to all risks upon which he
is authorized to write Insurance.
Sec. 14. It is lurtber provided that un-
til the general basis schedules herein pro-
vided for shall have been promulgated by
the board and the maximum specific rates
t Hereunder determed all companies sub-
J?ct to the provisions of this act shall
write insurance at the rates now In force
in this State Including the reductions
heretofore ordered by the State flre-ratlng
board. In localities where such specific
rates have been determined and filed with
the board; provided the general basis
schedules from which such specific rates
have been made and such speOc rates
shall be subject to the authority of ths
board under this act. lYovided further
however that wherever such specific rates
have not been determined then the board
shall designate at what rate the com-
pany shall write insurance; provided how-
ever that sll rates under this section
shall be maximum rates and the compa-
nies shall have the right to write Insur-
ance below such rates by complying with
the terms and conditions of section 11 of
this act.
AS TO RAT1-T REVISION.
Sec. 15. The said board shall have au-
thority upon reasonable notice not ex-
ceeding thirty days of Its intsntlon to do
so. to alter amend or revise said general
basis schedules promulgated by it or the
specific maximum rates approved or or-
dered by It as herein provided and to
give reasonable notice of such alteration
amendment or revisions to the public or
to any company or companies affected
thereby. Such altered amended or re-
vised schedules or maximum rates shall
be the schedules or maximum rates to be
thereafter charged fur Insurance by any
companv In this tate; provided that
the board may order changes to be made
to meet unusual co nditions In any par-
ticular locality should such conditions ex-
ist or arise by giving similar notice to
the public or to any company affected
thereby. Provld-d the changes or amend-
ments made to the seivral basis schedules
shall apply only to policies of insurance
written after the order of the board mak-
ing such changes or amendments becomes
effective. Provided further that no poli-
cy existing prior to the taking effect of
such changes or amendments to the gen-
eral basis schedules shall be affected by
such changes or amendments unless there
shall be a change in the hazard of the
risk necessitating a change in the rate
applicable to such risk in which event
such policy shall be affected by such
changes or amendments unless there
shall be a change In the hazard of the
risk necessitating a change In the rate
apt licablc to Fuch risk. In which event
such policy shall he subject to the new
rates applicable under the changed or
amtnded general basis schedules.
Sec. 16. It shalt be the daty of the
State Insurance board to make promul-
gate and establish uniform policies of
insurance applicable to the various risks
of this State copies of which uniform
policies shall be furnished each company
doing business n this State or which
may hereafter do business In this lltate.
That after such uniform policies' shall
have been established and: promulgated
and furnished the respective companies
doing business in this State such com-
panies shall within sixty days after the
receipt of such forms of policies adopt
and use said form or forms snd no other:
and all companies which may commence
business in this State after the adoption
and promulgation of such forms of poli-
cies shall adopt and use the same and
no other forms or policies. The said in-
surance board shall also prescribe all
standard forms clauses and endorse-
ments used on or in connection with In-
surance policies. All other forms clauses
and endorsements placed upon insurance
policies shall be placed thereon subject
to the disapproval of the board. Provided
no endorsement clause or rider so at-
tached or In any way affect such policy
or any provision thereof until same shall
have first been approved by said board.
The board shall also have authority In
its discretion to change alter or amend
such-form or forms of policy or policies
and such clauses and endorsements used
In connection therewith unon glvlnc no
tice and proceeding in accordance with
section 20 of this act.
Sec. 17. Any provision In any policy
of insurance Issued by any company sub-
ject to the provisions of this act to the
effect that if said property la Incumbered
by alien of any character or shall after
tne issuance 01 sucn policy oecome in-
cumbered bv a lien of anv character
that such Incumbrance shall render such
doIIcv void shall be of no fores and ef
feet and any such provision within or
placed upon any sucn policy snau do ao
solutelv null and void.
Sec. 18. No comoanv subject to ths
provisions of this act may Issue any
policy or contract of Insurance covering
nronertv In this State which hall eon-
tain any clause or provision requiring
the assured to take out or maintain a
laraer amount of Insurance than that ex
nressed In such nollcv. nor In anv way
providing that the assured shall be liable
as co-Insurer with the company issuing
the Dollcy for any part of the less or dam
age which may be caused by tiro to the
property described In such policy ana
any such clause or provision snail be null
and void and of no effect: nrovlded. that
it may be optional with ths assured to
accept a policy or contract 01 insurance
containing a co-Insurance e la use or pro
vision when a reduction In tho rata of
Insurance on ths property described la
riLTNO Of COMPLAINTS.
Sec. 1. It la provided that any eltlsen
or number of el rise oa of this State or
any policyholder or policy holdsra or aay
Insurance oompsny affected by this act
or any board of trade chamber' of com-
merce or other civic organisation or ths
civil authorities of any town ( city or
village shall have the right to file a
petition with ths Insurance board setting
forth any cause of complaint that they
may have as to any order mad by this
board or any schedule promulgated by
this board or as to any specific rata ap
proved by this board and that they
shall have tho right to offer evidence tn
support of the allegations of such peti
tions by witnesses or by depositions or
by affidavits; that upon the filing of
such petition the party complained of. If
other than tha board shall be notified by
tha board of tho filing of such petition
and a copy thereof furnished ths party
or parties company of companies 01
whom complaint Is mads and tho said
petition shall be set down for a hearing
at a time not exceeding thirty days after
me tiling 01 sucn petition and tlte boara
shall hear and determine said petition;
but it shall not be necessary for the
petitioners or any one or them to bo
present or to present the cause to the
board but they shall consider the testi-
mony of all witnesses whether such wit
nesses testify In person or by deposition.
or by affidavits and if It be found that
the complaint made In such petition is
a Just one then the matters complained
of shall be corrected or required to be
corrected by said board.
eec. 30. Tha state Insurance board shall
give the public and all insurance com-
panies to be affected bv Its orders or
decisions reasonable notice thereof not
exceeding thirty days snd an oppor
tunity to appear ana be heard with re-
spect to the same; which -notice to the
public shsll be published In one or more
dally papers of the State and such no-
tice to the Insurance company or com-
panies to be affected thereby shall be
by letter deposited In the nostofftoe an-
dressed to the State or general agent of
sucn company or companies if the ad-
dress of such State or general agent oe
known to the board or. If not known
then such letter shall be addressed to
some local agent of such company or
companies or. if the address of a local
agent be unknown to the board then oy
publication In one or more of the dally
papers of the State and the board shall
hear all protests ot complaints from any
Insurance company or any citizen or any
city town or village or anv commercial
or civic organisation as to the inadequacy
or unreasonableness of any rates fixed
by It or approved by It. or as to tne
Inadequacy or unreasonableness of any
rreneral basis schedules promulgated by
t or the Injustice of any order or de-
cision by It; and If any Insurance com-
pany or other poiin or commercial or
civic organisation or any cltv town or
vmage wpici: snail oe interested In any
such order or decision shall be dis
satisfied with any regulation schedule or
rate adopted by such board such com
pany or person commercial or civic or-
ganization city town or village shall
have the right wlthlng thirty days sfter
the making of such regulation or order.
or rate or schedule or within thirty
dsys after the hearing above provided
tor to oring an action against said
bosrd In the district court of Travis
county to have such regulation or order
or schedule or rate vacated or modified;
and shall set forth In a petition therefor
the principal ground or grounds of ob
jection to any or all of such regulations.
scneauies rates or orders; In any sucn
suit the Issue shall be formed and the
controversy tried and determined as in
otner civil cases and the court may
set aside and vacate or annul any one or
more or any part of any of the regula-
tions schedules order or rates nm.
mulgated or adopted by said board which
snau oe iouna by tne court to be un-
reasonable unjust excessive or inade-
quate without dlstrubing others.- No in-
junction. Interlocutory order or decree
suspending or restraining directly or In-
directly the enforcement of any schedule.
iLe uruer or regulation of said board
shall be granted.
Provided that in such suit the court
by Interlocutory order may authorize
the writing and acceptance of fire In-
surance policies at any rate which tn
the judgment of the court Is fair and
reasonable during the pending of such
suit upon condition that the party to
such suit In whose favor the said in-
terlocutory order of said court may be
shall execute and file with the commis-
sioner of Insurance and banking a good
and sufficient bond to be first approved
by said court conditioned that the party
giving said bond will abide the final
Judgment of said court and will pay to
commissioner of Insurance and banking
whatever differences In the rato of In-
surance It may be finally determined to
exist between the rate as fixed by said
board complained of In such suit and
the rate finally determined to be fair and
reasonable by the court In said suit; and
the said commissioner of Insurance and
banking when he receives such differ-
ence In money shall transmit the same
to the parties entitled thereto.
LEGAL ACTION BY COMPANIES.
Whenever any action shall be brought
by any company under the provisions of
this section within said period of thirty
dans no penalties nor forfeitures shall
attach or accrue on account of the failure
of the plaintiff to comply with the or
ders schedules rates or regulations
sought to be vacated In such action un-
til the final determination of the same.
Either party to any such action if
dissatisfied with the Judgment or decree '
of said court may appeal therefrom as
in other civil cases. No action shall bo
brought In any court of the United States
to set aside any orders rates schedules
or regulations made by said board under
the provisions of this act until all of ths
remedies provided herein shall have been
exhausted by the party complaining.
If any Insurance company affected by
the provisions of this act shall violate
any of the provisions of this act the
commissioner of insurance and banking
shall by and with the consent of the at
torney general cancel Its certificate of
authority to transact business In this
State.
Sec. 21. No company shall engage or
participate In the Insuring or reinsuring
of any property In this State against loss
or damage by Ore except In compliance
with the terms and provisions of this
act: nor shall any such company know-
ingly writs Insurance at any rate higher
than the maximum rates herein provided
for and It shall be unlawful for any com-
pany so to do. And It shall be unlawful
for any company or Its officers directors
general agents. State agents special
agents local agents or Its representa-
tives to grant or contract for any spe-
cial favor or advantage In the dividends
or other profits to accrue thereon or In
commissions or divisions of commissions
or sny position or any valuable consfd-
eration or any Inducement not specified
In the policy contract of insurance; nor
shall such company give sell or pur-
chase offer to give sell or purchase di-
rectly or Indirectly as an Inducement to
Insure or In connection therewith any
storks bonds or other securities of any
Insurance company or other corporation
partnership or Individual or any divi-
dends or profits accrued or to accrue
thereon or anything of value whatso-
ever not specified In the policy; but noth-
ing In this section or In this act shall
be construed to prohibit a company front
sharing Its profits with Its policy hold-"
ers provided that such agreement as to
profit sharing shsll be placed on or In
the face of the policy and such profit
sharing shall be uniform and shall not
discriminate between Individuals or be-
tween classes; provided however that
no part of the profit shall be paid until
the expiration ot the policy.
Any company or any of Its officers di-
rectors general agents State agents
special agents local agents or Its rep-
resentatives doing sny of the acts In
this section prohibited shall be deemed
guilty of unjust discrimination; provided
however. that if any agent pr company
shall Issue a policy without authority
and any policy holder holding such pol-
icy shall sustain a loss or damage there-
under said company or companies shall
be liable to ths policy holder (hereunder.
In the same manner and to the same ex-
tent as If said company bad been au-
thorised to Issue said policy although
the company Issued said policy In viola-
tion of the provisions of this act. But
this shall not bs construed to give any
company too right ta Issue any contract
' r
1010:
Sec II. No person shall knowingly iw
Cairo or accept from any lnsuranoo com-
pany or front aay of Its agents sub-
agents brokers solid tors employes in-
termediaries or representatives or any
other parson any rebate of premium pay-
able on the policy or any special favor
or advantage la tha dividends or other
financial profits accrued or to aoerue
thereon or aay valuable consideration
position or Inducement not specified la
ths policy of lnsuranoo and any person
so doing shall be guilty of a violation of
the provisions of this section and shall
be punished by a fine of not exceeding
t1M or by Imprisonment tn the county
is. 11 for not exceeding ninety days or by
twin auch fine and imprisonment.
Sec. tl. The provisions of this law
shall not deal with the collection of pre-
miums but each com nan r shall be per-
nitted to make auch rules and regula
tions as II may aeera just Between tne
company Its agents and Its policy hold-
era: and no bona fide extension of credit
shall bo construed as a discrimination or
In violation of tha provisions of this act
All policies heretofore Issued or which
shall hereafter be Issued by any insur-
ance company prior to the taking effect
of tins act which provide thact said poli-
cies shall be void for nonpayment ot pre-
miums at a certain specified time shall be
and the same are la full force and effect
I rovided. that the company or any of its
agents have accepted the premium on
said policies after the expiration of the
dates named In said provision fixing the
date of payment
Sec. H. The commissioner of Insur-
ance. u)Kn ascertaining tha-any insur-
ance company or officer agent or repre-
sentative thereof has violated any of the
provisions of this act may at his discre-
tion and with the consent and approval
of the attorney general revoke the cer-
tificate cf authority of such company of-
ficer agent or representative; but such
revocation of any eertlfloaTe shall In no
manner affect the liability of such com-
pany officer agent or representative to
the infliction of any other penalty pro-
vided by this act and provided that any
action decision or determination of the
commissioner of Insurance and banking
and the attorney general tn such cases
shall be subject to the review of the
courts of this State as herein provided.
Sec. lit. Any Insurance company af-
fected bv this act. or any officer or direc-
tor thereof or any agent or person act-
ing for or employed by any Insurance
comiiany. who alone or In conjunction
with any corporation company or per-
son who shall wilfully do or cause to be
done or shall wilfully suffer or permit to
be done any act matter or thing prohib-
ited or declared to be unlawful by this
act or who shall wilfully omit or tall to
do any act matter or thing required to be
done by this act or shall cause or wilfully
suffer or permit any act matter or thing
directed not to be done or who shall be
guilty of anv wilful Infraction of this act
shall be deemed guilty of a misdemeanor
and upon conviction thereof shall be pun-
ished bv a fine of not less than $300 nor
more than $1000 for each offense.
Sec. 2. No person shall be excused
from giving testimony or producing evi-
dence when legally called upon fb do so
at the trial of any other person or com-
pany charged with violating any of the
rirovislons of this act on the ground that
t may Incriminate him under the laws of
this State; but no person shall be prose-
cuted or subject to any penalty or forfeit-
ure for or on account of any transaction
matter or thing concerning which he may
testify or produce evidence under this
act except for perjury in testifying.
COMPANIE8 EXCEPTED.
Sec IT. This act shall not apply to
purely mutual or to purely profit sharing
fire insurance companies Incorporated or
unincorporated under the laws of this
State and carried on by the members
thereof solely for the protection of their
property and not for profit; nor to purely
co-operative lnter-lnsurance and recipro-
cal exchanges carried on by the members
thereof solely for the protection of their
property and not for profit.
Sec. 28. Not later than March 15 after
this act shall take effect and annually
thereafter. It shall be the duty of the
eommlsslocer of Insurance for the pur-
pose of reimbursing the State for the
amount to be expended during the cur-
rent year In carrying out the provisions
of this act. to collect from each Insur-
ance company affected by thia act which
transacted business In this State during
the preceding calendar year or any por-
tion thereof the proportion of said $55000
which the gross premiums collected by
said company during such year from per-
sons or upon property located In this
State bears to the aggregate amount of
gross premiums so collected during such
year by all Insurance companies affected
by this act transacting business In this
State; provided that In computing such
gross premium receipts there shall be de-
ducted therefrom the amount paid out
for reinsurance and for return premiums
on canceled policies. .If at the end of
any yesr after thla act shall take efTect
It shall be found that the aggregate
amount expended In carrying out tne pro-
visions of this act during such year has
been less than $25000 the amount re-
maining unexpended shall be applied In
the reduction of the amount to be col-
lected from said companies for the suc-
ceeding year. The amount due under the
provisions of this section by each com-
- jnv shall be certified by the commis-
sioner of Insurance to such company and
he shall revoke the certificate of authori-
ty of any companv which shall fall to
pay the same within thirty days afer
the receipt of such certificate; provided
that the collection from Insurance com-
panies provided for In this section shsll
not be made for any year during which
any such company shall be liable under
the laws of this State to the payment of
an occupation tax at a rate of two and
one-halt per cent or snore of the gross
premiums received less deductions for
reinsurance and return premiums on can-
celed policies.
See. 19. If any part of this act be for
any reason held unconstitutional It shall
not affect any other portion or part of
this act.
Sec. 30. Chapter 18 of the general laws
of the Thirty-first legislature passed by
Its first called session and approved April
1 1909. entitled: "An act providing the
conditions upon which fire insurance com-
panies shall transact business in this
State; and providing for the regulation
and control of rates of premiums on fire
insurance and to prevent discrimination
therein; and to create a fire Insurance
rating board; and to provide penalties for
violation of this set and declaring sn
emergency" and all other laws and parts
of laws In conflict with this act are here-
by repealed.
Sec. 11. The fact that there Is now no
sufficient law In this State prohibiting
unjust discrimination In the collection of
fire Insurance rates as between citizens
of this SUte; nor protecting citizens In
securing reasonable rates constitutes an
emergency and sn Imperative public ne-
cessity requiring that the constitutional
rule requiring bills to be read on three
several days to be suspended and that
this act take effect and be In force front
and after Its passage and it la so enacted
FOB nrJU&ED EMPLOYES.
German Expresses Views as to the
Proper Compensation.
(Hearts Pott SHcicl.)
AUSTIN Texas September 6. Repre-
sentative S. H. German today authorised
the following Interview on the proper
compensation of employes Injured In the
discharge of their duties:
' "The fact that Colonel Roosevelt In his
recent speeches Is laying stress en a law
fixing an automatic system for the com-
pensation of employes who are Injured In
the course of their duties will no doubt
give great force to this movement. While
lt Is fortunate that a man of so high
'standing should be behind this move-
ment yet Mr. Roosevelt Is not the flrSV
to advocate sucn- measures. Some of the
great minds of the country have been en--gaged
on this proposition for a number
of years and within the last few years
several of the legislatures have taken the
question seriously In hand.
"New York has recently enacted a law
by which employers and employes may
adopt a compensation pian ana tnus
greatly modify the old rule In liability
cases. The Wisconsin legislature has had
a committee -storking on a measure of
this kind for a number of months having
had public hearings at many places In "the
State on the bill and I now have In my
possession a copy of the bill which will
be Introduced In the next legislature of
that State In many reap sets It Is an
Ideal bill on this aubJeel: thouch. of
l0ourse it will hart ta be wtoaiaoa aowe-
lepxU of jbtoiiishing Cure ly tie
Htw sad Wonderful Hexics y
jjrodttot Known u CutioUy.
Enema Bolls Carbuncles Sslt Rheum
Ulcers aoree. Wounds Stings Brulaeas
All Eruptions On Faee Scalp Hands
V "edy Quickly Cured By This Ea
traordlnery .Olegovsry. -
It Is Certainly An Awful Blow to Be Told
It Is Cancer But Don't Worry
Get Cutlclsy.
A wonderful substance rained In Mex-
ico and called Cutlclay Is doing things
every day that are simply marvelous.
The doctors applied an ex-ray to what
they called a cancer on the face of Mrs.
Mary A. Heelan matron at the Harrison
central station In Chicago. This left a
car burnt mark. Cutlclay was after-
ward applied and not only was the sore
cured but the scar also disappeared.
There are probably thousands on the bor-
derland of operations who may be saved
by a timely use of Cutlclay. It you know
of a case hasten to mention this marvel-
ous product of nature. W. L. Stansbury
of El Paso. Texas well known railroad
official mentions a neighbor of his who
astonished everybody by curing himself
of cancer by the wonderful Cutlclay.
Dwlght Brown In the Chicago depart-
ment of supplies says Cutlclay banished
ell his dread of cancer the sore on his
face healed new skin formed and he got
rid of all worry. Every sore spot on the
surface of the body Is quickly cured by
Cutlclay. There is no drawing sensation
no burning smarting -or Irritating effect
just a calm quiet wonderful disappear-
ance of the sore a scab quickly forma
and before you know It new skin forma
and the cure Is complete. You can get a
large M cent can of Cutlclay at any drug
store. If you am too far from a store
and have use for Cutlclay at once send
$0 cents to The Cutlclay Company Chi-
cago and they will mall the can to you
postpaid. It Is sold and highly recom-
mended In Houston by A. B. Klesllng We
Main street.
1 1
what to meet conditions In our 8tate. In
addition. 1 have a copy of the New York
law recent) enacted and a copy of the
bill providing for industrial insurance
which was introduced in the Illinois legis-
lature some two or thre years ago.
"The plan of the proposed system Is to
Insure fo employes compensation fixed
on the basis of a per cent of their earn-
ings where such employes are Injured In
the course of their duties regardless of
the question of negligence except In cases
of gross and willful negligence; thus plac-
ing the burden of compensation for In-
juries on the industry the same to be
paid as a part of the running expenses
of the concern nnd not leaving the wur-
den on the eniplove alone 11s It now Is.
"Just the best method of reaching the
desired result of course. Is in doubt;
some contending that a policy of indus-
trial insurance will be more desirable
while others claim that a straight liabil-
ity act fixing a state of compensation
would be more desirable. It Is my opin-
ion that a combination of tho t-.vo plans
may perhaps be most effective and satis-
factory for our State.
"It Is my purpose to continue the study
of this problem and to Introduce at tbe
regular session of the legislature bills
along these lines. I doubt whether the
public mind is educated to the point of
adopting such legislation tn Texss at
this time; but there Is no doubt In my
mind of the great need of such a law
ad I shall therefore urge It to the extent
of my ability. I make this statement
at this time so that those of you who are
Interested In the matter may offer such
suggestions as may seem proper and so
that the public mind may be turned to-
ward this great question. The great aim
of such legislation Is to fix the law so
that deserving employes who are Injured
In the course of their duty may receive
compensation when It Is most needed
without the Intervention of the middle-
man and without the great cost and
worry Incident to delays. Employers will
also be relieved from the great burden of
personal Injury litigation and In tho
long run will find such a rule less expert
slvo than the present method. In addi-
tion the public and the State may bd
relieved from the great cost of litigation
that Is now burdening our courts for
after all It Is the people who pay the
costs.
"It Is my purpose to prepare a full dlt.
cusslon of this subject In the near fu-
ture which will be furnished to the pub-
lic press Together with copies of such
laws on this subject as I ah Ink most
suitable to meet the present conditions."
VETEBAX ADDRESSED H0TTSE.
W. 0. Bearers a Former Confeder
ate Made Entertaining' Speech
(TYowtes Pott SptciaO
AUSTIN Texas September I. It re
malned for' Hon. W. Q. Beavers of Sill
county ex-Confederate veteran of twen-
ty-slx bsttles and a teacher In the pub
lie schools of Hill and Ellis counties for
more than forty years to deliver (lis
moat entertaining address that has bserl
made by any of the numerous citizens ef
the State who have been called upon is)
address the house during the third and
fourth called sessions. For about fifteen
mlnhtes thla afternoon he made ths mem-1
bers sit up and take notice by his threats
at the anti-Campbell and antl-Baile1
men.
Reviewing his own democracy he said
that he never had scratched the name Of .
a democratic nominee and never woutd.
He said there were those who would like:
to have his place as he would and draw"
his salary but added that drawing UiU
salary was about all that tbe most 1
them could do. Hs was loudly appUudedi
Mr. Beavers has been recently tsuxinif
treatment In the hospital at the Ckmfed
era to home In this city and he was pvo
fuse In his praise of the general man
agement of that Institution seylnjlit
was the best that any of the States have
nrovlded for their citizens whofotMbl
for ths Confederacy.
A resolution was adopted expreasfna
sympathy and hope of en early recovery
house who has been 111 for several days
and for the mother-in-law of Hon Justd
Penn member from Laredo who Is scrl-
Vf lastly lea.
Make the Liver
Do its Duty
Nks naws ia tse wasa &m assr ii right the)
sears asd bowels sss ngbt
CART EM'S UTTLS
UVU rILLS
sztreiaamrrc
Mlalsxy Kief ta .
sfetooMy.
hGs
Ctaraiat Mesa Signature
ills
A I ilTTLsT I
w r 1 11 - -
His Si rial mi Paste ess sites- latiaa
ssssTOtMlWsa4t
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The Houston Post. (Houston, Tex.), Vol. 26, Ed. 1 Wednesday, September 7, 1910, newspaper, September 7, 1910; Houston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth606073/m1/4/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; .