Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-21

tendent has forestaIled the possibility of an
Injunction BIZ doing the only act which he
could be asked to.rbe enjofned from doing,
namely. undertaking to exclude the society
from doing business.
And as respectsdthe corporation counsefs
inclination 'tQ adoHt the construction of the
law respecting beneficial associations, as
claimed by the superintendent of insurance
in his brief,a have only to say, first, that
1t Is 10 be npted with satisfaction that the
inclination IN the direction Indicated; and,
secondly, that the question here fmme-
diately INVOLVED was not raised by me, was
NOT consideged bYc me. and was not pre-
senteo 10 the corporation counsel at my
conference with him. and that the most SUI
perficial Reconsideration of the question
must convince the corporation counsel of
the error of his Inclination.
Contention Of Lodge.
The brief declares that the society has
never contended that it could have the
right to do business as fraternal benefi-
cial association without having lodge sys-
tenn with ritualistic form of work or rep
resentative form of government. Mr.. Davis
asserts that the society had lodge sys-
tenn, rftualfstic form of work and represen-
tative form of government In replying to
one OF the contentious of the Superintend-
ent OF insurance with reference to member
snip IN fraternal societies, Mr.. Davis says:
II the extraordinary contention of the
superintendent was sound, the absurd re-
suit would follow that any. nines persons
incorporating themselves as q fraternal
oenehciai association could not add to their
numper, but would be required to go on
lnsurlng one another, with the interesting
outcome that the last survivor Of the nine
would not only have to pay the beneficiary
Oh ms immediate predecessor In death the
entire benefits coming to him, but also
would nave SO to do without having any
provision or means for his own insurance;
LOT, from the ry-character of such an as
to- n.:o
11cial plan, and not for profit there would
De no assets wherefrom the beneficiary of
the last survivor could receive a benefit;
ana II IL were that the association had as
sets ana the beneficiary OF the last sur
vivor might be entitled to all of such
assets, that would convert the association
INTO tontine for the benefit of the last
survivors, beneficiary-a suggestion simply
ridiculous in view of the clear import of
the law that the association is contem-
piated TO be perpetual for the purposes of
oene1clal insurance
NO such understanding as the superin-
tendent processes of what constitutes a
fraternal beneficial association was ever
Deiore heard of, and it is interesting to in
quire now 1T happens that the superintend-
ent is permitting the many other associa-
tons similar to the Royal Benefit Society
to be carrying on business here in view
OF the notorious fact that every one Of
them Is daily adding to its membership as,
of course, is it's right and the contempIa-
ton of the law
Il cannot believe that the corporation
counseis inclination to the superintend-
ents view can have any other explanation
than the press of work, ablng him from
serious attention to the propositions in
volved.
Power Of Superintendent.
LAS respects the superintendent sweep
ing assertion in this connection that the
superintendent has supervision of all mat
tiers pertaining to insurance insurance COM
panies and beneficial orders and associa-
tions" with the power and duty to see that
each and all, faithfully execute all laws of
the United States relating to Insurance. it
is enough to point out the unfortunate fact
for the superintendent that the provision
here quoted,is part Of the excluded subchap-
ter five, and that nothing like it is to be
found in suhchapter twelve.
1T does not affect the argument to saw
that unless the superintendent has in re-
spect of fraternm beneficial associations,
the powers defined in subchapter five he has
not adequate powers in respect of such as
soc1ations, for the simple reason that what
ever powers he has he must find in the law
and that the fault, If any there be- in the
limitation of his powers is the fault of the
law, which cannot be made good by any
mere assertion or attempted assumption Of
fault" sSi&1-.4 II o. tfs-.-..
After discussing; the, laws, Mr.. Davis con-
I'm view OF the plain provisions of the
law and the spirit and principles in accord
ance with which they were enacted, it is
little short of monStrous that the superin-
tendent of insurance should arrogate to
himself the arbitrary right, without an ac-
cusation and an opportunity to be heard
'peremptorily to exclude a fraternal benef-
clal association from doing business in the
District. What the superintendent did in
the case Of the Royal Benefit Society was
to open correspondence with the insurance
departments of various states, and, upon
n mott nr xrhjo oh y,a oJo
received from them, condemned the society
without hearing or opportunity to be
heard.
Alleged Injustice.
AN Illustration of the gross injustice
thus done the society is in the following
instance: He wrote to the insurance depart
ment of one of the states asking in what
character the society was doing business in
that state. He received reply stating that
the society was, and for several years had
been, there licensed as an assessment asso-
citation, and he thereupon jumped to the
conclusion that the society was occupying
a false position, and condemned it accord
tngly; whereas the fact was as nv own
personal investigation developed, that the
society had applied in that state for per-
NIT to dc business as fraternal beneficial
association and was informed by the insur-
ance department that according to the law
or that state the society, although a fra
ternal beneficial association under the laws
of the District of Columbia was. under the
laws of that state, in the class of assess
ment associations; and in order to do bust
ness in the state the society was acord-
ingly required to apply for and obtain a
permit as. an assessment association not
withstanding that the class Of business
which it applied for permission to do, and
has uniformly and consistently been doing,
in the state is exactly the same as the
class of business it transacts here as a
fraternaI beneficial association
Not to multiply instances it may suffice
to restate the general proposition previ-
ously set forth. that the Superintendent has
no power right to condemn such asso-
Citations as the Royal Benefit Society and
exclude them from doing business in the
District, but that his only power or right
in the premises Is to invoke the interposf-
ton of the court and ask it's Judgment
after a summons to such association with
the necessary right of the association to a
hearing of what it may have to say In the
premises" ,.t.s
In closing his appeal to the Commission
ers Attorney Davis submits a list of cues
lions relating to fraternal beneficial asso-
Citations, which he desires answered by the
corporation counsel Mr.. Davis SAYS that
the questions involved In the case under
consideration affect every such association
District