The Montgomery advertiser., 1905-10-12
STATE TO AID WOMAN
NEGREss APPLIES TO INSURANCE
 COMMISSIONER.
The widow ef Philip Bailey Seeks to Force Company to Pay Policy
 on His Life.

when the widow and friends of Philip Bailey. a negro who died last January in this city, appeared at the once of Secretary of state F. R. Me collecting an indemnity from the Southern Home Industrial Association. of Birmingham, the great value of the law regulating such organizations passed by the last Legislature, was again demonstrated.
 The act that was passed in 1903 put ting restrictions on these mutual aid societies before allowing them to do business in Alabama has perhaps &C., complished more good for the State than any other law without being much in the limelight. It Is regarded as a boon to the negroes of Alabama partic- uiariy. It Is among this race that the associations of this character do the bulk of their business It was chiefly for their protection that the law was framed and finally passed in the face of some opposition.
 Before 1903 the widow of Philip Bai- ley could have had no refuge except the courts in collecting their contested claim of $110. This Is the amount es- timated to be due the woman on the death of her husband. The officers of the company in Birmingham pointediy refused to pay 1t because they assert that Bailey died of tuberculosis and that the disease was in his lungs be- fore he took out his policy with the company. The widow thought of bring ing suit for the debt in the courts but was told of the existence of a law in Alabama whereby every corporation such as the Home Industrial Associa- tion is required to place $l.000 in the State Treasury as a guarantee of the payment of it's obligations before un- dertaking any business at all.
 Learning of this law Bailey's widow s..< t.A Is also the State Insurance Commission CT. Commissioner McDavid was re- sronsible for the passage of this law in it's main features and has been very attentive to all complaints against the mutual associations ever since 1t went State Intervention in contesting the claims came through the mail The Bailey woman came in person. She ayowed that there is no proof that her husband had the consumption when the insurance was taken out in 1902, and that in all justice the indemnity should bs paid. which aas been due since Jan uary.
 Commissioner McDavid assured the wcman that he would at once take up the claim with the company with a view of getting an amicabie settlemen, without rssorting to the courts. He has done 1t before with signal success for since the State undertook the reg ulation of the organizations they have shown marked respect for the law. Tn this way sort of bulwark has been thrown up between the masses of ne- groes in Alabama and the mutual soci. aties.
 That the business of these companies among the negroes and some whites has grown to such magnitude as to de- TnAad careful supervision is proven by the figures on the books of the Insur- Anee Commissioner. Under the law the State gets 1 per cent. of the total col lections of every company and last year tt was over sf,900. There are only hf- teen Of the societies complying with the law.
 Before the law went into effect there were almost any number of these mu- tuai aid organizations. but the regu- tative measures did away with a big majority of them. Those who qualify are compelled to deposit either in cash or marketable securities an amount equal to si,odo They also must pay an annual license of s20 and file with the Commissioner statement of the assets and liabilities. The mere fact that with