Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-12-10
Senate Committee Considers
Bill to Prevent Fraud.
DENY Fuse OF MAILS
VIGOROUS PROTEST ENTERED
AGAINST THIs LEGISLATION.
Senator Dryden introduced the Meas
ure, but Regulates Authorship
al Sides Considered.

=
The Senate committee on post offices and
post roads gave a hearing today upon the
bill introduced by Senator Dryden. at the
request of the national insurance commits
sioners, for the purpose of denying the use
of mails to fraudulent insurance companies.
Reau E. Folk state treasurer and insurance
commissioner Of Tennessee, spoke for the
measure. while score of insurance Off
Gals, agents and brokers represented the
opposition. sen
Dryden Defines Bill.
Senator Dryden made statement, dehn-
ing The purposes of the bill. He said there
were many fraudulent insurance concerns
in the south and west, and the state inSur-
ance commissioners are trying to devise a
scheme to drive them out of business. Inc
bill submitted. he said, affects SUBS antial
and leg timale interests, many or WHICH
had wr.tten him protesting against its pas
sage. These interests include many cen
Germs which have made It their custom to
place with foreign companies all their sur
plus insurance. Such foreign companies, IN
many instances, are, not aui horiz d to dc
business in many of the states In which IN
sur. nee was written.
Senator Culberson asked whether Senator
Dryden considered mutual companies wouid
be affected by the bill. Senator Dryden
repudiated authorship of the measure and
said that his own company. in fact, would
be prevented from doing business II the
bill becomes law Inquiries brought out
the fact that amendments were not OPP
posed If such changes were to exempt
legitimate concerns from its provisions.
Effect Upon Business.
Mr.. Folk made brief talk in favor of
the measure. and was questioned by sew
eral senators to bring out the extent of
it's effect upon. insurance business. He was
followed by A. 1. Varys, superintendent OF
insurance of Ohio, who offered amendments
which were intended to eliminate many OF
the objections made by representatives OF
legitimate insurance companies, and OF
members of the committee who expressed
their desire to protect such interests
Senator Burton said he knew of one COM
pany in the state of Kansas capitalized at
81 600. 600 which had been refused charter
to do business in that state, though the
company was solvent. He declared that
the charter. was held up by the insurance
commissioner because of a personal feeling
against certain OfficialS.
Representing Manufacturers.
John r. Walters. a New York insurance
broker, who filed authority to speak for 443
manufacturers who have joined to write
their own insurance, protested against the
bill, though. he said. the amendments Of
fered would satisfy his interests If it were
not for the fact that to place the bill on
the statute books would offer the opportu-
nifty for amendments which might injure
the legitimate companies. He declared 1t
was just tar all valid concerns to Kill the
bill.
Elijah R. Kennedy of Weed & Kennedy.
New Yorka Philip 8. Tilden, representing
the Merchants Association Of New YORK,
and chairman of committee of ten from
the New York Board of Trade and Trans
portation Company John p. Murray OF
New York, representing a large number OF
merchants and manufacturers, and num-
Der of others were heard.