Morning journal and courier., 1881-02-24
At The state Capitol.


The Bill to Tax BENEFIT Associations Be-
fore the Insurance Committee-A FOr-
midab1e Array OF Rem0nstrants-New
Haven Largely Representative Conn
mfttee sit Down ora the Obnoxious
PrOpositiOn-Other Matters of Interest
Before Various Committees.
HARTFORD, Feb. %, 1881.
Especial to the JOURNAL AND CoUR1ER.l
This has been field day for New Haven
parties,at the Capitol. Various matters affect
ing the interests of your citizens to be heard
before committees brought large number
of prominent gentlemen to the Capitol, and
this afternoon nearly every committee in
session had more or less of them before
them. The principal interest seemed to
center in the Insurance ommittee, who had
the proposed bill taxing benevolent associa-
tions before them for consideration. The
committee room being too small the hearing
was adjourned to the Representatives hall.
Here were assembled representatives of
nearly all the benevolent associations in the
State. The hearing opened with statement
by the author of the bill, who is II. W. Lyon
of Bridgeport, agent for the Northwestern
Life Insurance company of Milwaukee, Wis.
He said that he had no personal interest in
the bill, except that he wanted all life in
surance companies to be taxed alike and to
stand on an equal footing. He said that
portion of his bill gave wives the power to
assign policies on the lives of their husbands
after obtaining their written..consent, and he
thought this should be the law in this State
as it was the law in many other States.
Another proposition was that no policy shall
be forfeited after two annual payments have
been made. He then passed to notice the
last section, which proposed to tax all institu-
tions that issued policies payable on the
death of another, and he said from the for
midabIe remonstrances that had been pre-
scented against the bill that here was where
the fight would come. He said that when he
drew this section he did not have in mind the
Masons, Odd Fellows, Knights of Honor and
other kindred institutions. After reading
from different authorities to show that ben
eft societies in other States were
held by law the same as insurance companies,
he said that SO far as benefit societies that in
sured onlytheir own members were concerned,
they should be exempt from the provisions
of this act. Yet he thought the State of
Connecticut should look after the interests of
the insurance companies, and the cooperative
companies should be restricted without GER
tain limitation. In closing he said there was
merit in some of this bill, and he urged the
committee to make such amendments as are
needed, and thereby give the State an effec-
tive law.
Lawyer Hyde, of Hartford, said he did
not see how this bill in any way changed
the present law on the statute books, SO far
as bringing cooperative insurance companies
under all the provisions of the present in
surance law. He said the Hartford Life and
Annuity company, at which the proposed
law was evidently. aimed, certainly came
under all the restrictions of ordinary insur-
ance companies.
James G. Patterson, president of the
Travellers Insurance company, was the next
speaker. He commenced by saying that he
thought he could show that there was no
need of the passage of any such law as pro-
posed. The law, he said, as at present on
the statute books was all that was needed,
and it was useless to lumber up the laws with
such useless burdens He said the whole
bill was crude and SO Ill digested that it was
in no shape to be passed. Yet he said there
was some merit in the fourth section. How
ever, he said the benevolent societies, like
the Masons or Odd Fellows need have no
fear from the insurance companies SO long as
they do not go outside of their own order to
solicit insurance. He said no insurance man
had ever thought of doing anything of this
kind. But he said there were organizations
that went outside and solicited insurance and
he believed they should be taxed. He re-
ferred to the Mutual Benefit company of
Hartford and the Hartford Life and Annuity
company, both of which he said were not
brought under the same rules as the life in
surance companies. While they solicited in
surance, yet they were not taxed on their re-
serve. They were not benevolent societies in
any sense of the word, yet they seek the
protection of benefit societies. All he asked
was that the law might be SO changed as to
bring these two companies he had named I'M
der the self same rules as other life insurance
companies.
Mr.. Hyde, speaking for the Hartford Life
and Annuity company, said that the idea of
Mr.. PATTERSON was to kill all cooperative
companies whether it be the Annuity, Mutual
Benefit or any other. He then defined
operative insurance, which was on the prin-
ciple of paying whenever there was loss.
The money, he said, was in the hands of the
insured instead of the vaults of the company
to be used for banking purposes, and per
Now, said Mr.. Hyde, the gentleman who last
addressed you wants to force us
to build up reserve in
der to break down our cooperative system.
It was not fair and not honest.
Mr.. PATTERSON replied to MFR. Hyde with
considerable earnestness. He also read from
the form of policy issued by the Annuity
company to show that the fund that they
were accommodating was for the benefit of the
stockholders and not for the insured. He
said the so-called policy of insurance, issued
by the Annuity company, was no insurance
at all it was simply certificate of member
ship.
L. P. Deming, of New Haven, interrupted
Mr.. Patterson to say that as the matter be-
tween the insurance companies was simply
personal matter and something that the ben
eft associations care nothing about he asked
that they give way and let the benefit socie-
ties be heard. Then if they wanted to fight
like Kilkenny cats, why, he had no objec-
ton.
Mr.. Patterson gave way and Mr.. Deming
called F. Fl. Waldron, of New Haven, secre-
tary of the Masonic Mutual Benefit associa-
ton, who made the following statement The
association which have the honor to repre-
sent Cthe Masonic Mutual Benefit association
of New Haven) respectfully demonstrate
against legislative interference, as it is ben
evolent institution, doing it's work in bust
ness way. It is not joint stock concern in
any particular. We pay no dividends, and
there are no large salaried officers. We en-
pIoy no salaried agents or solicitors. We
issue no written policies as do insurance COM
panies, and we have no large reserve fund.
We do not pretend to do insurance business,
as we guarantee no specified amount to be
paid in the event of death, but do limit the
amount to not exceed a certain gum, viz.
stances become member of this association
unless he be member of the brotherhood
which it's name implies. We are band of
men and brothers associated together for the
purpose of affording peeuniary relief to the
families of our deceased MEMBERS defraying
funeral expenses, etc.
During the past seven years the association
has paid benefits amounting in the aggregate
to $172, 7O7, without any litigation or cost to
the benefciaries for collection. The total
cost per annum for the running expenses of
the association, such as printing, postage, sal
aries, etc., has been but 70 cents per men,
Der. There are at the present time nearly
800 members in this association, and if there
are on an average four persons dependent on
each member, we have 10000 persons de-
pendent on this association. 1t is safe to say
that 60 per cent of our members are men of
limited means, and they avail themselves of
the benefits of this association to make
provision for their families in the event
of their death. There is no doubt
in my mind that this and kindred associations
are great benefit to the public. could
cite number of instances which have come
under my observation where the town would |
not only be obliged to take charge of and
bury the remains but provide for the family