Omaha daily bee., 1907-05-03

LETUP ON FEDERAL CONTROL
B ", Breckenridge Says Insurance Law
yers Win Urge Other Reforms
WANT GRAFT SHUT OFF IN THE STATES
Omaha Man on Return from East
Advocates Appointment of Ne
brnska Commission by
the Governor.

Ralph w. Breckenridge. chairman Of the
insurance committee OF the American Bar
association, has returned from a two days
meeting Of the committee held in Phila-
delphia last week. al which insurance re-
forms we're. discussed and many Of them
embodied in a report which Will be made
at the meeting OF the Bar association In
Portland, Me, in August. At the last
meeting other business prevented the con-
sideratiOn Of the report of the Insurance
committee, but this year 1t has been made
a special order and will be thoroughly dis
cussed. Such of the reforms as are en-
dorsed by the national association will be
placed before the various state legislatures
for the purpose Of securing uniformity in
insurance legislation.
Heretofore the committee had laid great
stress upon federal supervision Of insur-
nnce companies, but this year II has de-
cided not to. urge this particular reform,
but will devote It's energies to others. Of
which an annual apportionment of deferred
dlvidends and changes in state laws tend
ing TO raise the standard of Insurance COM
missioners are the most important.
Enough Now to defeat II.
while a majority of the committee does
not concede that It was mistaken in advo-
eating federal supervision" said Mr.. Breck-
enridge I'VE realize that it has a suf-
1cient number Of opponents TO defeat it
now. We are anxious to secure favorable
action on these other things and will defer
our recommendations for federal super
vision"
One of the most important Of the changes
advocated by the committee is the COM
pulsory listing OF the surplus of life in
surance companies as liabilities instead Of
assets, as they are now listed. The recon-
mendation also provides for a contingent
distribution OF dividend surplus on all poll
Giles now in force or q statement Of the
value of immature policies at given time.
The committee will also seek to secure
favorable action on its recommendation
that insurance commissioners where APP
pointive shall be taken out OF politics and
the offices filled on a merit instead of a
political basis. This the committee believes
will secure a higher grade OF commits
sloners and better work by the insurance
departments.
Graft Is Immense.
I'm many of the states where the in
surance commissioner is appointed the Of
fee is looked upon as one Of the most i'm
portant political plums," said Mr.. Brock
enridge, and the result is the graft in
the offices has been continuous and i'm
mense. The office has been used for black
mail and thieving until 1t is no wonder we
have the big scandals of the New York
investigation, besides smaller scandals in
many of the states-Pennsylvania, for in
stance.
"Our committee has recommended that
men Of higher efficiency be appointed or
where possible, the oGicelbe made elective.
It is because INSCRIPTIONS men or men OF
little ability have been placed in these OH
ces that insurance companies have been led
to resort to trickery and corruption.
81 do not want to be understood as re-
fiecting on our own insurance department.
In Nebraska It would be impossible to make
the office of insurance commissioner cleo
tive without an amendment to the consti-
tuition For this reason. personally, 1 think
the commissioner should be appointed by
the governor and accountable to some one
besides the auditor. l do net believe the
Office should be a mere bureau in the aud
itor's Office"
shut Out the wild Cats.
The committee also favors the shutting
enactment Of federal laws prohibiting the
use OF the mails by them. This, 1t is be-
lieved, would be effective because the
greater part OF their business is transacted
by correspondence.
The other recommendations of the COM
mittee are as follows:
A requirement that all foreign insurance
companies deposit with at least one state
sufficient fund to prevent a recurrence OF the
San Francisco incident, when several Ger
man companies doing business without hav-
ing made a deposit repudiated their con-
tracts.
The repeal of retaliatory tax laws, since
they increase the cost OF insurance to the
polcyholder.
The repeal of the valued policy laws, as
they result in fraud, perjury, arson and
other crimes.
The appointment Of a FIRE marshal in
each county with sufficient number of
deputies to make the work of his office eff
foient.
The following members of the committee
were present: Ralph W. Breckenridge,
Omaha: Rodney A. Mercur. Towanda, Pa. {;
Burton Smith, Atlanta, Ca. w. r. Vance,
dean Of the Law school OF the George
Washington university. Washington, D. c.
Robert Dunlap OF Chicago was the only abb
sent member.