Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-05-15
DISTRICT AFFAIRS.
Assessment Insurance Companies
Considered by the Attorney.
STRING ENT LAY VS. NEEDED.
Mr.. Thomas Thinks That Care Should Be
Taken to Guard Ignorant Policy Holders
Lead or Iron Pipes for Water Connec-
tions-Other Interesting Items.

Attorney 8. T. Thomas this afternoon
rendered an important opinion in relation to
insurance companies in the District of Co.
lumbia.
The opinion was called out by the application
Of the New American Home Assurance Society
of the District OF Columbia for permit to do
licensed insurance business in this
District. Mr.. Thomas opinion is in
substance as follows: The statute regu-
lating insurance in this District provides
that no insurance company organized or in
corporated in this District after January 26,
1887, shall transact the insurance business
unless the whole Of its capital be not less than
Sl0O, 900. and actually and in good faith.
paid up in full in cash, except life insurance
companies which issue to their members
policies or certificates on the assessment
plan. 1t is made the duty Of the Commits
sioners to ascertain and determine upon evil
dence satisfactory to them to be filed in
their office, whatever in the ca ne of assess
benefits which are to be realized by as
sessments upon their members, and upon be-
ing satisfied in this regard to issue to
such companies authority to transact business
1t is commended by Mr.. Potter that all the
Commissioners have to do under the law is
%
Home Assurance Society" is a mutual benefit
society. 'and whether its certificates in form
agreed to pay such benefits, by assessments
TO be levied upon its members" The law seems
to be capable Of this construction. and take
occasion in passing to say, this being the first
time the statute has heen particularly
brought to my notice, that in view
OF the fact that hundreds Of assess
ment insurance companies have in recent
years failed and refused to meet their obliga-
tons; and that few, it any, Of them can con-
tinue solvent SO rs to meet policies taken by
persons in middle life or younger, the law
should be amended, so as either to create
an insurance commissioner with appropriate
powers, or SO as to impose upon the Commits
sioners OF this District more than the perfume
tory duty OF ascertaining in the case OF an as
sessment company, whether Its certificate in
form. agree to pay benefits to be realized by
assessments to be levied upon members. think
the Commissioners should be authorized also to
pass upon the character and plan of the COM
pany applying for authority to do BUSH
ness, and to judge whether it's schemes is such
a one as would be beneficial or harmful
to the public. Life insurance on the CO.
opei alive or assessment plan. based on the
collection of assessments from members to pay
benefits or death losses as they occur,
have, in the absence OF restraining laws,
multiplied very rapidly in the past twenty years
IL very often happens that such companies are
FOR the most part controlled and managed
by persons unfamiliar with the principles Of
life insurance, assumed cheapness being the
attraction. As this plan OF insurance il
intended primarily for poorer classes, it is
the duty OF the state to see to it by proper
restraining laws that such companies are not
fraudulently conducted. One slept In this
direction is to require their contract Of in
surance to be plain and intelligibIe. The
right Of the insured, who is generally the
party who knows least about the contract,
should be vigilantly guarded and protected.
In this PARTICULAR case, from a mere casual
examination Of the very lengthy member
ship certificate, a document too verbose for the
simple and cheap insurance, it seems to me that
the certificate as quoted, fails to show what
are to be the benefits" and is not on its face
binding policy or contract, agreeing to pay
benefits" And then the language, 'un-
less otherwise Endorsed by the President
of the society," in section 8, as
read it, contains power TO destroy all benefit
to the insured at any moment at the will OF the
society," l notice in its certificate
Of incorporation that this company allows
its intention to do business in the states
l see no authority for this in the law.
II Tho New American Home Assurance So
ciety" will reform its certificate of membership,
SO as to show what are to be the benefits and
SO as to more clearly show the agreement to
pay benefit, authority should be granted to it
to do business and l SO advise you.
IRON Oh LEAD PIPES.
Engineer Commissioner Powell has raised an
important question relating to the new plumb
ing regulations. Under the old regulations house
connections with the water supply were al
lowed to be made with iron pipe. The
new regulations require lead pipe. The
matter was brought to the attention Of Capt
Powell this morning and he decided to investi-
gate the matter. believing that lead pipe
would probably contaminate the water which
passed through it. Plumbing Inspector
Robinson was sent for. and gave his views
on the matter. He maintained that lead pipe
was vastly superior to iron pipe in several
ways. In the first place it was more durable
and its use would prevent the frequent tearing
up OF the streets Of the city, which
was necessary when iron pipe was used The
latter he said was short lived. After a little
while it became coated with rust, and if
quickly eat its way through. He did
not believe that lead pipe was chemically
affected by the Potomac water, but on the con-
trary was protected, q lining was formed
about the inside of the pipe Prot. Richard
son, the Districts chemist and inspector Of
asphalts and cements. substantiated what Mr..
Robinson said. He had examined this question
thoroughly and found that while there
were any number Of wells and springs about
the city whose water would affect lead pipe
the Potomac water made no difference to them.
Lead pipe will still be used.
NO APPROPRIATION AVAILABLE.
In regard to the recommendations Of Prof,
Langley with respect to improving the roads
to the Zoo, Capt. Fiebeger sums up the
whole matter in his Endorsement Of the
papers, in which he says: SIT appears that it
will cost about $4,000 to change the
grade from the present per cent grade to an 8
per cent grade and macadamize the street.
There is no appropriation available for the
work. The present appropriation ga ,000) will
only suffice to widen the street to its full width
and to lay drains and walks. A further study
will be made of Lanier avenue"
APPLICATIONS FOR LIQUOR LICENSES.
Applications from the following persons for
bar room licenses have been received by the
excise board: James H. Costello. 405 10th street
northwest; Mary A. Collins, 3O15 K street north
west; Max Marshall, 312 9th street northwest.
THEIR SUPPORT PLEDGED.
The Commissioners today received the fol-
lowing letter from the Christian Endeayor
Union:
We, the Young Peoples Society of Christian
Endeavor OF the District of Columbia number
Ing about 1000, In mass meeting assembled,
representing nearly or quite all of the
societies in the District, seeing that
your honorable body and the police judges are
making an honest effort to enforce the new law
with regard to the sale Of Intoxicating liquors
and to lessen the number Of saloons in certain
aQn frfnna Of