Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-02
PAVORS SOCIETY
DRAKE-ROYAL BENEFIT CoNTRO-
vERsY AT AN END.

Superintendent Drake of the Department
of Insurance, upon the advice of Mr..
Duvall, corporation counsel, and with the
approval of the Commissioners. has decided
In favor of the latest contention Of the
Royal Benefit Society, holding that 1t does
not require license from the insurance de-
par tment, but Is entitled to do business as
fraternal insurance society because 1t
was incorporated under an act of Congress
enacted prior to the District code. and was
then granted license by the assessor of
the District to carry on its business L.,
definitely.
The first application of the society was
for a license and Superintendent Drake de-
clined to grant it a license on an opinion OF
the corporation counsel approved by the
Commissioners. Counsel for the society.
Henry E. Davis, appealed for reconsidera-
ton of the case. Pending that, officers OF
the society filed charges against Superfn-
tendent Drake, which they afterward with
draw, on the advice. 1t is understood, OF
their counsel, Mr.. Davis, who had had moth
ing to do with the charges. Mr. Davis then
submitted to the Commissioners a long
brief, containing number of questions OF
law, and making the case turn upon the
claim that the society did not need license
from the insurance department, but was
entitled to do business under the old license
of the assessor because of it's peculiar char
acter as a fraternal insurance company in
corporated under an act of Congress passed
before the insurance department was
created by the District code. This was re-
ferred to the corporation counsel by the
Commissioners, and, after careful deliDera-
tion, he has decided that the superintend-
ent of insurance may properly take the
view taken by counsel for the society,
which Superintendent Drake, with the ap-
prevail of the Commissioners, has done.
In a communication to the superintendent
of insurance dated April %, 1893, the cor
Il have been RlVluS
consideration to the matter OF the Hoyai
Benefit Society of the District OF Columbia,
which, with certain briefs, was referred 10
me by the Commissioners. and have
reached the conclusion that there is grave
question of doubt as to whether thls So
ciety, which was Incorporated under an act
of Congress enacted prior to the code OF
law for the District of Columbia ana
granted a license to carry on its business
indefinitely, Is required to have incense
from the superintendent of insurance Inc
question involves matter of statutory con-
structfon, and am of the opinion that the
doubt in the premises could be resolved by
the superintendent in favor of the society,
and that he could treat the society as belng
authorized to transact the business OF ira
ternal insurance in the District of Column
bia."
Thereupon Superintendent Drake yester-
day addressed letter to the Commission
ers in which he said: Having been ad-
vised by the corporation counsel that the
Royal Benefit Society having been incor-
porated under a law of Congress enacted
prior to the code, and having been granted
a license by the assessor of the District to
carry on it's business indefinitely, is not re-
quired to have license from the superinten-
dent of insurance, have concluded to re-
solve the doubt in the society's favor. and
will treat it as being authorized to transact
the business of fraternal insurance in this
District
When Mr. Drake presented the papers
late yesterday afternoon to Commissioner
mcfarland, who has immediate supervis-
ly approved them, and Commissioners West
and Biddle did likewise. The case of the
Royal Benefit Society is unique, and the de-
csion does not make precedent that will
affect insurance companies of different
class