The Providence news. (Providence [R.I.]) 1891-1906, 1896-05-02
CONCORD, N. H., May /, 1895.

CONCORD, N. H., May !, 1895
f. d. somerby. Supreme President Iron Hall OF
Baltimore City, Baltimore, Md.
DEAR SIR = When application was
made to this department by the Iron Hall
of Baltimore City for authority 10 tram,
sact business In New Hampshire, 1t was
referred to the attorney general with
request for an opinion as 10 the right OF
the order to a license. The substance OF
the reply was that II * was such an asso-
clation as is described in section I of the
law relating to fraternal associations, 1t
was the duty of the commissioner to
grant Ii license to do business here, etc.
a fter careful examination Of the pa
pers submitted, as we'll as the methods of,
the association as compared with corpora
tions whose claim to be called "Fraternai
Beneficiary Associations" has never been
questioned, / am Of the opinion that the
Iron Hall of Baltimore city is not such
an association as IL described In section
OF the law referred to.
In deciding this matter the rights of
the associations already authorized to do
business here, as well as the title OF the
law, and the law itself in it's entirety,
have been taken into consideration.
The several lines OF insurance, fire, life,
casualty, etc., with their different plans
of management, as well as their business.
methods, have been classified for years.
so that today there is no rnistakiDg tho
place occupied by each. Corporations
like the Iron Hall have been Known ns
Assessment Endowment Associations
and as the methods of the new Iron Hsil
are practically the same as those cf the
old Iron Hall, the insertion OF dozen
words in the section mentioned Cannot,
in my opinion, allow Ii to claim ahllia-
tion with the legitimate fraternal essccia-
tIons which have ever repudiated ali con-
nection with 1t.
The law reads that the business OF the
associations to which it refers must he
carried on 'for the sole benefit of their
members and benefciaries and not for
profit"
Twenty nine of the orders authorized
to do business in New Hampshire paid,
in benefits, for the year ending December
81, 1895, over eighteen millions OF dol
lars. with an expense account OF but
fraction over six per cent. OF the income.
Their record since their organization,
proves that they have been carried on for
the sole benefit OF their members, and OF
this immense sum, not one copper had
been paid for any but sick, accident, or
death benefits. The record of the Iron
Hall. and OF every corporation or oroer
conducted on the same plan, has been
lust the opposite, for IL Is well known
fact that they have been managed, moi
for the benefit of the members, but for
the enrichment of the officers, and the
greater part of the money was paid, not
Tor sick, accident, or death benefits, but
for life payments, called indifferently,
endowments, pensions, hnal payments,
etc.
More might be said of the methods OF
associations of this kind, out they are too
well known to require repetition.
When the courts of this state, or tho
legislature of New Hampshire define an
endowment order like the Iron Hall OF
Baltimore city 70 he fraterrel beneficiary
association of the same class as the.
Ancient Order of United Workman,
Knights of Honor, etc, its right to cer-
tiicate OF authority to do business here
will be unquestioned. Until one or
the other is done, the present Insurance.
commissioner OF New Hampshire Will not
assume the responsibility OF granting the
required permission, and With this un-
derstanding OF the situation, license
can not be issued ~ the Iron Hall OF BAL
timore city or TO any other corporation
conducted on a similar plan.
(Signed) JOHN &. LINEHAN,
Insurance Commissioners.