KANSAS INSURANCE REPORT 1896
During the year 1896, Mr. George T. Anthony, State Superintendent of Insurance, reported comments concerning the "Benefit Fund for Fire Departments" in the Kansas Insurance Report. The new law was quite controversial and a portion of his comments is quoted below:
"Under the above title, the late legislature, by act approved March 7, 1895, provided that, in all cities having an organized fire department, under the control of the mayor and council, and having, in serviceable condition for fire duty, fire apparatus and equipments belonging thereto to the value ofS1,000 or upwards, every fire-insurance company, not incorporated under the laws of this state, doing business in such cities should return to this department a just and true account, verified by oath, of all premiums received from fire-insurance business done in such cities, and pay a tax of 2 percent, thereon, for the creation of 'benefit fund for fire departments' therein.
"It is but just to report to you that this law met a general and violent protest from insurance companies generally doing business in this state, and an organized opposition to its enforcement, embracing a majority of them. This opposition assumed a virulent and defiant attitude never before known or supposed possible, in a country where loyalty to law is the paramount duty of the citizen and the prime element of safety to the public. The law was declared unjust, unwise, and unconstitutional, and the methods prescribed for its administration by this department unreasonable, inquisitorial, and unbearable; that enforcement of the law in the manner proposed would result in the immediate withdrawal of insurance companies from the state, leaving its people unprotected and helpless against the ravages of fire and tempest.
"It becomes a profound pleasure to report that this revolutionary purpose was abandoned by those who threatened resort to it, and severely condemned by those who had reused to commit themselves to it. Every company finally yielded, and made the returns in form and manner prescribe by me, and paid the tax, penny for penny, as assessed upon such returns. A few paid under formal protest, reserving the right to bring suit against the state for its recovery when the law should become invalidated by decree of a court of last resort.
"During the heated controversy pending the execution of this law, I have refused to consider or give the least respect to the questions of wisdom, justice and constitutionality of the law, that have been urged as reasons for its nonenforcement, simply answering that my duties were administrative, not judicial, and that it was none of my official or personal concern at to the merits of a law that it become my sworn duty to execute; that if a bad law, as alleged, the shortest road to relief from it was the path of rigid enforcement.
"The situation is altogether changed now, and in this communication it is not an impingement upon official pererogative and propriety, but strictly in accord with them, to discuss the merits of this law. Indeed, the incumbent of this office is commended by statute to accompany this report 'with such suggestions as he deems expedient."
"It is a pleasant duty to stand now as a defender of this law, and to commend it as wise in statesmenship, just in purpose, and undoubtedly, within the limit of legislative power conferred by the constitution. It is the one tax that has been imposed with absolute wisdom and justice, and against which no valid objection can be raised in the interest of insurer or insured. Next to the soldier who deems the flag and the constitution of his country stands the brave and fearless fireman. They alike perform duties the value of which cannot be estimated nor paid for in money, and each may rightfully command practical gratitude in the form of rewards for faithfulness, and protection from disaster so sure to follow in the line of their duties. From whence the pride of profession in fire departments springs may not be within comprehension, but that it exists as an inspiration to valorous deeds and heroic daring, to the very courting of death in the protection of the lives and property of those in whom they have no personal interest, must be recognized as a universal fact in our state and country.
"But stripped of the robings of sentiment, and presented in the nakedness of a cold, calculating business proposition, the maintenance of these fire departments and the protection of firemen from casualties, by resort to municipal taxation, supplemented by a corporate taxation under laws now being considered, will find abundant vindication, both as a rightful and economical collection and use of money. I do not believe there is a single city affected by this law wherein it has not occurred more than once, in a single day or night, property owners and insurance companies have been saved from losses greater in amount than either or both will be called upon to pay in taxes to their fire department in 10 years. The protection from fire losses purchased by the maintenance of these organizations yields to the citizen a much greater return, measured by its cost, than comes to them from the fire insurance, and insurance companies themselves will find an equally profitable investment in their contributions to the 'benefit fund for fire departments under the existing law. And in their mad assaults upon it they simply knew not what they did.
"I hope this law will be allowed to stand unimpaired, and with a single amendment, making it apply to companies incorporated under the laws of this state, as it now does to companies admitted to do business here from other states and countries."