New-York tribune., 1907-08-28
INSURANCE DISCUSSION.
TOO MUCH REGULATING.
american Bar association Regrets
General Distrusf.

session of the annual meeting of the American
Bar Association in this city to-day The COM
mittee found result of It's exhaustive IN
vestgaton, extending over q year, that much oI
the general. non-discriminating distrust Oh III
surance companies and their management
which followed closely upon the heels OF 'he
Equitable controversy, was unreasonable ana
unmerited and due to the ignorance or the pun
lie respecting the principles upon which insur-
ance is based and the methods Whlch shouiu oe
employed in supervising TT
This condition has made possible, the COM
mittee declares, the enactment Of laws ostehsi-
bly, supervisory. but actually destructive In thelr
tendency, and the whole "a greater menace
to the interests of polIcyholders than they have
suffered through the mismana cement and dis
honesty of company officials and the incom-
petency and unfaithfulness characteristic or
many state insurance departments.
The report declares that the administration OF
the insurance laws of many states has been
characterized either by unblushing fraud mostly
in the form Of blackmail. or by gross lhcom-
petency It condemns the placing of unfair bur-
dens in the form OF taxation upon the insurance
companies as has been done in some of the
states and views with alarm" the tendency al
ready evidenced in Texas and Arkansas to re-
ouire 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 companies Of America, says
the report, though 1t may Wel De douoeeu
whether all of the schemes of life insurance
which enjoy current popularity Will bear scru-
tiny; and It is certain that the sentiment OF
fraternalism IS widely prostituted by the dls-
honest and extravagant management of some of
the so-called fraternal orders. The indivduai
who misappropriates trust funds deserves CEN
hints q fuSt iSnOurSt
to steal under protection OF law as wlthoue7''
II is tust as dishonest for the states to Law un-
holy hands on trust funds as for an individual
and the states commit monstrous lhJustice
when they seek even partially to maintain them
selves by legitimate raids upon trust funds
The morning session began promptly on time
Ralph W. Breckinridge OF Omaha. committee
chairman, presented the report OF the stahdihs
committee on insurance. The recommendations
follows:
That this association disapproves and con-
dernns the prevalent custom which makes state
insurance commissionershfps political prizes 10
be distributed as such without regard TO htness
knowledge of the insurance business
That ell companies created under the laws OF
foreign countries be required to make deposit
In at least one of the states before transacting
business anywhere in the United States.
The repeal of the valued policy laws.
The creation In each state OF the office OF fire
marshal.
the use OF the mails persons associations.
copartnerships, or corporations. conducting
any kind of insurance business in the United
States. that are not licensed TO transact such
business by the state wherein such persons, as
sociations. copartnershps. corporations are
domiciled under whose laws any such cor
porations are credited.
The apportionment and contingent distribu-
tion OF the deferred dividend surplus on exist
ing life policies OF all companies as n condition
precedent TO the transaction or business outside
OF the home states OF the several companies.
The first four articles Of the resolutions were
adopted without discussion change The
fifth paragraph. after a spirited contest and de-
bate. defeated
Congressman Charles f. Littleield. of Maine.
a director OF the Equitable Assurance Society.
vigorously opposed the sixth article calling for
the "apportionment and contingent distribution
OF the deferred dividends surplus existing life
policies of all companies as n condition precedent
to the transaction of business outside OF the
home states OF the several companies.
He stated that II such r. law should be enacted
| by the states and complied with by the COM
panies there IS not an insurance company in the
| United States that on the face OF Its statement
would not be bankrupt.
A motion to lay upon the table the resolution
and an amendment which had been offered for
| the purpose OF strengthening IL was carried by
! a standing vote OF 11O to 1S.
The first paragraph or the resolution was re-
considered and amended to read follows:
THAT this association disapproves and con-
demns the treatment of state insurance commits
sionerships political prizes. to be distributed
as such without regard to fitness or knowledge
Of the Insurance business
Henry D. Estabrook read the report on judicial
administration and remedial procedure. The re-
port of the standing committee on commercial
law was read by George Whitelock. OF Maryland.
The reports judicial administration and
remedial procedure and on commercial law were
accepted after a debate.
At the meeting of the section of legal educa-
ton this afternoon Roscoe Pound. dean of the
! College of Law OF the University of Nebraska,
! delivered an address on THE Need OF Socio-
logical Jurisprudence" He said THE ap-
! peals OF the called unwritten law are appeals
! from the clear and settled law to the indi-
viduaI feelings of the citizen. Much OF this in
| dividual self assertion against the law is due
! no doubt To the lack Of a settled social stand
| ard of Justice during a period of transition.
| Rut q large part must be attributed to a wide
| spread disrespect for law and to general
sentiment that unless the individual does so
| assert himself he or those In whom he feels an
| interest will not be dealt with as Justice re-
| qures."
shortly before the adjournment decided
stir was caused by the Introduction by Henry
s. Dewey. of Boston, of set of articles of faith
| in which the following appeared: That this
association teaches that every good law is In
| harmony with unwritten law. called: that
| the unwritten law. called is the Word of
| God; that the real foundation Of the common
law Of England. called, is the unwritten law,
so called and that this unwritten law is the real
foundation of all good laws since the beginning
| of the world. the foundation Of common law.
| common sense common Justice thrOue hOut tho