Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-11-01
AN APPEAL TO CONGRESS
LocAE. INSURANCE. E,s3T+r ASK FOR
LEGISLATION.
Alleged Absence of Protection Against
wildcat Companies Com
cert of Action.

Now that the controversy which has been
aEitatins them for the last four or five
months has passed the acute stage. and is
believed TO be fairly started toward per-
manent settlement. insurance men doing
business in this city are turning their at
tention, in some instances, to the ways and
means of pressing upon the attention of
Congress at the coming session the i'm
portance of enacting into law the bill to
regulate insurance which failed at the
last session. One of the features of this
measure is the creation of a department
of insurance under the direction of the
assessor of the District. Provision is made
for the employment of an expert in the in
surance business who shall have super
vision of all matters pertaining 10 insur-
ance, the insurance companies and bene-
fetal orders and associations. The super
intendenI is to see that all laws of the
United States relative to all classes OIL
insurance companies are faithfully eA
ecuted.
1t is the purpose of this legislation to
supply the supervision over the insurance
business on the part of legally constituted
authorities which is now practically lack
ing in this District. In most of the states
there are insurance commissioners. or otfl-
GERS whose duty 1t is. among other things,
to see that the companies undertaking to do
business and inviting the confidence of the
public are competent to perform what they
promise, and that they furnish the guaran-
tees in the way of assets. securely invested,
to enable them to meet losses
Importance of the iovemept.
The local Importance of such supervision
! can be appreciated when it is known that
| there is nothing of the kind here, and that
| as a consequence, insurance men say.
this District has nearly always been the
| headquarters Of one concern, if no more,
| that is technically known as "a wildcat
| Such companies are in business simply to
| get the premiums, and when losses occur
| the holders of the policies are unable to
! collect anything or to find property belong
| ing to the company upon which levy can
| be made.
AS a rule, the local business done by such
! companies is very limited, it being pre-
ferred to take in the business furnished by
brokers located throughout the country,
| as they can with less trouble evade the
claims made on behalf of-policy holders
| living at a distance.
| Frequently. 1t is asserted by men in the
! ferent parts of the coilntry asking about
| the financial standing Of a company of this
character the principal office of which is
| located here. The inquiries are always as
to the possibility of collecting the amount
Of policy issued by the company to guar
antee the inquirer from a loss by fire.
Appeal to Law.
| In some cases suits are instituted. and
after while, when the character of the
concern becomes notorious d new company
| Is organized by the same persons and the
| ID organization is allowed TO die
On account OF this state of affairs, said
| to have prevailed in this District for several
years past. and which still continues, it is
| believed 1t Is time that some action was
taken that will surround the insurance
business In this District with the safe
guards that are provided in many of the
states.