Omaha daily bee., 1907-08-28
LAWYERS TALK INSURANCE
B. W. Breckenridge Presents Report
to Bar Association.
FEDERAL CONTROL IN NEW FORM
Paragraph I'm the Report Relating v
to wildcat" Companies Draws
Out Very Warm
Debate.


Debate.
PORTLAND, Me-, Aug. 6.-The program
for the meetings today Of the American
Bar association was devoted exclusively to
the reading OF reports of standing and
special committees. The most important
of these was the report on insurance law,
which was prepared by special order OF the
last annual convention and which already
has been published and widely commented
upon throughout the country. About
forty European delegates have arrived to
attend the convention OF the international
law association, which opens Thursday.
Breckenridge Presents. Report.
Ralph w. Breckenridge Of Omaha, chair
man Of the standing committee on insur-
ance of the American Bar association,
presented the committees recommendations
today follows:
That this association disapproves and
condemns the prevailing custom, which
makes state insurance commit ssionerships
political prizes TO be distributed as without
regard TO fitness or knowledge Of the In
That all companies created under the
laws Of foreign countries, be REQUIRED to
make depositions at least In one of the
in the United States.
| Inc Ieptdl OF lne Nhlubu pOnCy ldWs
The creation in each state Of the ONCE
OF fire marshal.
The enactment of a federal statute for
bidding the use of the malls to persons,
associations, copartnerships, or corpor
ations conducting any kind OF insurance
a ses bS
the state wherein such persons, associ
ations. copartnerships or corporations are
tdomlciled, or under whose laws any such
corporations are created.
The apportonment and contingent dis.
tribution Of the deferred dividend surplus
on existing life policies Of all companies
as condition precedent to the transaction
of business outside of the home states of
the several companies.
Discuss Federal Control.
The first four articles of the resolutions
were adopted without discussio nor change.
The fifth paragraph brought out a spirited
contest. The committees report recon-
mended approval of a bill forbidding the
use Of the mail service to any persons or
associations conducting any kind of in
surance business in this country. unless
they obtain a license permit to conduct
business from the proper officer Of the
United States, or of the state wherein they
are domiciled.
The members favoring the recommenda-
tion and the proposed action contended
that the purpose was to afford protection
against the wild cat insurance COM
panies. which organize In some states with
out any intention of doing a legitimate
business In that state. and then commit
fraud in other states. Those opposed con-
tended that 1t was only another form of
the attempt to secure federal regulation In
preference to state control. The recon-
mendation was defeated when put 10 q
vote.
LittIeneld Takes Part.
Congressman Littlefeld of Maine, who
is a director Of the Equitable Assurance
society, vigorously opposed the sixth nrti-
Gle calling for the "apportionment and
contingent distribution of the deferred
dividends surplus on existing life poll
cles of all companies a condition
precedent to the transaction of business
outside OF the home states Of the com
panies" He stated that If such a law
should be enacted and complied WITH
every insurance company in the United
States would be bankrupt The proposed
legislation, it was brought out by other
speakers, is intended to compel the com
panies to carry out the contracts they
have made with policyholders by showing
exactly what portion of the surplus le-
gally belongs to the policyholders and
that It shall be carried on the books as
a liability instead of an asset as at pres
ent.
A motion to table this recommendation
was carried by a standing vote Of ITO
to rs.
Report on Commercial Law.
The report of the standing committee
on commercial law was read by George
Whitelock OF Maryland.
The reports on judicial administration
and remedial procedure and commercial
law were accented after debate,
PaDer by Mr.. Prouty.
"A fundamental defect In the act to
regulate commerce" had been prepared by
Charles A. Prouty OF Vermont. a member
of the United States Interstate Commerce
, commission. AS Mr.. Prouty was unable
to attend the convention. the paper was
read by Judge William H. Stake OF Phila-
delphia.
I have felt that the present plan OF the
act TO regulate commerce should be sub
stantially modified. and desire to call your
attention to what seems to me q funda-
mental defect in that act.
, Every discussion of this subject should
problem. The railway has come 10 take
the place OF public highway, and some
/ methods must be found TO make II such.
, This means that the government must see
TO II that our railways are open to all
members of the public alike and that the
! charges made for their use are reasonable,
=
that the facilities provided are adequate.
Protection for All.
But these highways, while public in their
) use, are private IN ownership, and the capt.
tai invested has been put there upon the
representation that It shall be allowed to
earn a return. While, therefore, the gov
ernment must protect the citizen in the use
. OF these avenues of transportation, II must
also protect the individual in the enjoyment
, OF his property.
! An examination of the present act to
regulate commerce shows that the authors
Z OF this statute had in mind both these
ideas. The Affirmative provisions OF that
act are, that charges for services rendered
shall be reasonable, and that no undue dis
elimination shall be made between different
persons. Otherwise stated, these highways
shall be open TO the whole public alike.
and upon fair terms. To secure these bene-
fits there are certain requirements with
respect to the publication and observance
OF tariffs, the keeping OF accounts. etc, and
/ severe penalties are pro fdsd Tor infractions
of statute. A commission is created and
that commission is reouled by the terms
OF the act to enforce It's provisions.
, Both Ideas Present.