Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-28
Committee of American Bar
Association Gives Results of
Exhaustive Investigation Into
Recent Legislation Thereon,
OVER REGULATION IS
R0UNDLY CONDEMNED
Hostile Laws in Texas and Ar
kansas Pointed Out as Fx-
ampIeS of Needless ReStdc-
ton on Legitimate Work,


Portland. Me, Aug 27-Too much
regulation" of the Insurance compa
nies Of America was roundly con-
demned in a report submitted by the
committee on insurance law at the
annual meeting Of the American Bar
association In this city The commit
tee found as result Of It's exhaustive
investigation extending over year.
that much of the general. non-dis-
criminating distrust of Insurance COM
panies and their management" which
followed closely upon the hcels Of the
Equitable controversy was "unreason-
able and unmerited. and due to the ig-
norance Of the public respecting the
principles upon which insurance is
based and the methods which should
be employed In supervising it, This
condition has made possible. the com
mtttee declares, the enactment Of laws
ostensibly supervisory but actually
destructive In their tendency and on
the whole "a greater menace to the
interests of policy holders than they
have suffered through The misman-
agement and dishonesty Of company
officials and the incompetoncy and
unfaithfulnoss character lie Of many
state insurance departments The
report declares that ihe admiuistra-
ton of the Insurance avs of many
states has been characterized either
by unblushng fraud, mostly in the
form Of blackmail or by gross in
competency. II condemns the plac-
ing OF unfair burdens In the form Of
taxation uDon the Insurance compa-
a hagn a in Of 0 lTft
states, and views with alarm" the
tendency already evidenced IN Texas
and Arkansas to require that a large
proportion OF the reserve value of life
insurance written within the state
shall be invested within that state.
There is no occasion for general
distrust of the life Insurance compa-
mics OF America" says the report,
though il may wen be doubted
surance which enjoy current popular
ity will bear scrutiny: and II is certain
that the sentiment of frateru8lism Is
widely prostituted by the dishonest
and extravagant Management of some
OF the so-called fraternal orders The
individual who misappropriatcs trust
funds deserves censurc and punish
ment but II is Just as dishonest to
steal under protection Of law as with
out II. IL is just as dishonest for the
states 10 lay unholy hands on trust
funds as for an individual and the
states commit mOnstrous injustice
when they seek even partially TO
maintain themselves by legislative
raids upon trust funds
AT the St. Paul meeting Of the as
sociation. your committee met the so
called conference of state insurance
commissioners. attorneys general and
governors who had voluntarily under
taken TO reform the insurance legis-
lation Of the country There We're
many Of the state commissioners
present. but your committee learned
Of no governor or attorney general
who attended. Excepting some half g
dozen commissioners, who seemed
notably fair-minded. the attitude 0f
the commissioners appeared TO your
committee to be one OF hostility to the
and their apparent general
desire was TO Increase their own pow
ers without any sp0nding checks
upon them. instead nf planning for
more efficient supervision Of the COM
panies. or the protection Of the invest
ments already made by the great army
Of policy holders The bills submitted
to that conference had been prepared
by a previously appointed committee
Of fifteen. None were approved by The
and the whole matter was
referred back To that committee or
fifteen. which. as your committee are
met later I'm Chicago, and The
Insurance bills, which have flooded
the legislatures in session during the
past winter under the professed en-
dorScmeut Of the insurance commis-
sioners of the United states in confer
ence with the governors and attorneys
general were, IN some Instances. en-
dOrsed by a bare majority Of a mi-
nority of that committee Of fifteen;
that Is. 10 be specific. your committee
are informed that bill which with
some modification WIS passed iu Mis-
souri, and introduced ia numerous
otheu state legislatures. and which
bars out Of the state companies which
pay salaries 20 any official exceeding
u certain sum per aunum. was pre-
pa red by "a comm -luucr from one
of the states south pf the ohio river,
and put through thc So-callcd COM
mittec OF fifteen hy vote or TOUR 10
three. such legislation vcrgcs upon
Mysteries and those re~ponsiblc Tor y
must be actuatcd hy am insane hatred
" the few big companies whose pres
idents or managing Officers receive
large salaries But 10 does not follow
that because four out N seven OF thc
of fifteen regard kLa 90"
or $4,000 per annum - the outside
limit OF compensation for man quail
flied 70 look after the investment pi
trust funds amountng to hundreds ol
millions 81 dollars. that the Judgment
af these few ought fu control or ihai
the interest Of the policy holders tu
these great life Insurance comranies
ought 90 be placed in jeopardy be
cause Of their impIacahle hostility.
Insurance supervision i not only
demanded as a public right but con-