The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-12-31
COMMISSIONER ENJOINED
National AID Association Secured the First
Point In Its Fight.
FRATERNAL INSURANCE LAW INvOlytI
II the states Contention Is Correct
No Order Nor Organization
Gun Operate in Texas.


Fort Worth. Texas. December 29.--Judse
W. ID. Harris OF the Seventeenth district
court. in an elaborate opinion, covering
thirty pages OF manuscript handed down
today, granted the prayer Of complainant;
in the suit of the National Aid Association
vs.. jefferson johnson, State insurance
comm ssioner. and others.
The controversy involved many nice
points Of law ana the decision, which is
the first Of its kind TO he delivered in this
State, was looked forward 10 with grca;
Interest by reason of the fact that II in
wolves the very existence in Texas of fra
ternal insurance orders chartered under
the laws OF ether States.
In granting the relief prayed for and en-
Joining the commissioner OF insurance
from discrimiratsng aSainst the complain
ant and requiring 1t TO take out permit
TO do business in Texas as a general in
surarce companN Judge Harris said In
substance:
The defendant contends that every ira.
terIal or benevolent organization, which
has any feature OF life Insurance III II, Is
the same rs old line insurance companies
--iand bases this contention on the decision
in Farmer VS.. State (69 Texas, 6ol), ana
tine opinion of the assistant attorney gem
eral as TO tie effect of that decision, and
his construction of the statutes or the
State wsah reference to insurance.
THE question that arose in the case Of
Farmer VS. State was as to tae right oil a
corporation, claiming TO be organized for
benevolent purposes TO 40 business IN
Texas. That corporation was incorporated
September ), 1883. and the Charter was
amended February %. 1855. At these dates
title 90 chapter 2, article 566, division :,
relating to corporations, read as follows,
viz: The support Of any benevolent, char-
itablo, ETC, Undertaking
.'In the case of Farmer VS.. STATE to9
Texas, 65l), Chief Justice Willie, IN reh-
,seting the opinion OF the court, and adj
dressing himself to the contention OF the
appellant in that case. that by the act OF
March 2S 1885. it was recognized as ben-
evident association. and its Incorporation
as such declared valid by the act of 1885.
says: In cur opinion the Statute applies
to nc other associations except those Or
gangzed under title 20 Revised Statutes,
for benevolent purposes. III organized for
profit the law does not intend 10 change
their nature. CT declare that 1t be benepo-
lent. which was not so in reality.
When the corporal on mentioned in the
case OF Farmer va. State was Incorporated
there was no provision in article o66 defin..
ing for what purposes corporations could
be formed under which the incorporation
could claim it hail a right to exist except
under div. SONS 2 and "a above quoted.
Ncthing In that article was said about In
csrporations for insurance business.
"At that time the statutes with refer
ence TO insurance companies in Texas was
embraced in title %, Revised States, 1873.
I'M ,xrac coma IF H.
tiers. and the first article OF first chapter
was article 2190. as above quoted. The
other articles in first chapter prescribe
what Is necessary to form an insurance
| company in Texas, but nowlere refer to
corporations other than those created in
Texas. 1t is clear from chapter of that
| title that 1t was contemplated that other
corporations than those created under
\ Texas statutes would do business In Texas,
and be under the supervision of the insur-
| aDce commissioner,
THE appellant in the case OF Farmer
| VS.. State admitted that it was not organ
| lied for charitable purposes. 1t claimed ii
| was benevolent institution, and had {
right 10 exist by virtue of divisicv 2, arti-
Gle 566, and by virtue of division n OF saiC
| article and that the act of 1885 creating
article 2971is' gave 1t validity
Article 2971a followed the last article o
chapter In title SO, and is the same a.
1895. and expressly provides that nothinl
in title SO shall affect or in any way appl.
to mutual relief associations organized IN
der Texas laws. or which are organize
under the laws of any other State, whio
have no capital stock ami whose relic
funds are created by Assessments mad
upon 1t members in accordance with thei
several bylaws and regulations, ETC.. an
request a report, ETC., to be made TO tn
insurance commissioner where the ssso
citation was not conducted by lodges
quorum of whose members met in thei
respective lodge rooms at least once
Q each month
I'm Farmer VS.. State 1t is true tha
Chief Justice Willie CONSTITUTES act {
March 2S. 1855. article 29T1a, but It was M
necessary SC TO do in that case, as the ar
pellant was Incorporated long before tbs
act.
'.The act of 1895 constitutes chapter
! title 5S, Revised Statutes. 1885. This char
ter relates To shome life and accident II
surance companies. II embraces matter
to which chapters !. 2 and 3 OF title b3
part related
a Article 3O96a SAYS: so much of chal
tiers !. 2 and 3 OF title SO as relate
: home life anil accident insurance con
panies and so much Of the laws and par
of laws THAT are Inconsistent with the prs
VISIONS OF this chapter t4) are hereby n
Uealed
: "In this chapter "a, acts 1850 the lesis
3 latrre in article 3O96w again says certal
= Organizations are not subject 10 the n
quirement of that chapter.
r "Slnce the adding of act 1855. artic
g 3036, and act OF 1889, articles 1880. 1901 en-
i, 3092. code 1895, and the adding Of scclio
u 46 to article 5s6 (acts OF 1899, II Is cles
0 that there aps mutual relief association
v organized and chartered under the gener
: Incorporation laws OF Texas, and which a.
: organized under the laws OF some oth'
il Stale, which have no capital stock al
q whose relief funds arc crcrtei and su
tained by assessments made upon u
members thereof in accordance with tha
several By laws and regulations and who
s. business Is conducted by lodges, euoru
!. OF whose members meet In their respscii
20 lodge rooms at least once IN each mont
to who are exempted from any and all OF =
ID duties imposed upon insurance comDani
by title IS as II now Is; ana mare y
r mutual benefit organizations doing btf
IT ness In this State through lodges Or cou
T. ellis. such as the Order Of Chosen Fr.ent
be knights OF Honor and kdldred organic
lions, to which none Of the exactions
lchapter or title SO apply.
This IA also apparent from tne ACT
&. 1898. article 3o96w OF Revised statue
- 1Sa5 The last part OF criticize SOs6w Is
ne same as the last part OF article 5oso.