The Washington herald., 1907-02-19
INSURANCE MEASURE PASSED
House Puts Through Parker Assess
ment Plan.
Measure Has Been Urged by Presi-
dent 10 Prevent SuindIing of Poor
People in the District.

Notwithstanding strenuous opposition.
the Parker insurance bill was passed by
the House late yesterday afternoon. the
vote being 1l6 10 80. The bill was reported
from the Committee on Judiciary Chair
man Babccck of the House District Com
mittee spoke In favor Of its immediate
passage. reading the Presidents message
on the subject Of correcting the insurance
laws Of the District
Mr.. Babcock said that the existing law
made it possible to sWindle poor people
who invested in assessment insurance:
and so much complaint has been made to
the President that ne felt il to be his duty
to call the attention Of Congress distinctly
to the evil and ask for prompt legisla-
tiou. Some Of the assessment companies
now doing business in the District, he
said. were paying % per cent Of pre-
miums 70 stockholders through forfeit
ures of policies.
/ Mr.. Ames. Of Massachusetts, opposed the
bill. and asked Mr.. Babcock IL il was
not true that in response TO tine Presi-
dents wishes very different bill had
been framed. which had received the APP
prevail Of the District Commissioners.
This Mr.. Babcock. in part. admitted was
the fact, but he claimed that the pending
bin had been passed on by the Judiciary
Committee and was a thoroughly wise and
beneticent measure. The changes in the
original bill had been made by the Ju-
dietary Committee and were regarded as
giving strength to the measure.
Mr.. Butler said that the convention OF
Insurance commissioners Of the United
States had recommended a totally diff
ferent remedy for the existing evil and the
Insurance commissioner Of the District
had Endorsed the same measure. The
drift OF Mr.. Ames' argument was against
the sanction OF assessment companies
Mr.. Sheppard, Of Texas. declared that
the effect of the bill would be to drive ali
the business 10 the large companies and
that there would be no companies that
could AFFORD TO 90 insurance business
among the poor.
Mr.. Sullivan, Of Massachusetts. asked
that the bill be sent back 10 the commit
tee 20 be perfected. II was unwise, he
urged. to take up such an important mat
ter and pass it in forty minutes, when 1t
failed TO command the confidence OF the
House. The House should bring ont
bill that would be regarded as the model
law on insurance. 10 be copied by all the
States he thought the bill should he
defeated. rather than passed as the best
that could be had this session.
When the vote was taken a disposition
70 hlibuster was manifested. and the
House. having decided by 1l6 10 30 to
suspend the rules and pass tho bill. Mr.
Sheppard called for tellers But thirty
seven members seconded the demand and
that being less than one-fifth Of 4 quorum
the Speaker declared the bill passed
The bill provides that assessment life
companies must have $4,000 assets to
issue policies up to 81 COO and 100000 in
vested assets II they issue larger policies
and that these assets shall always be at
least 8 per cent Of the total risks of the
company.
In case Of District companies the securi-
ties will be deposited with the register
Of the Supreme Court. In the case Of for
cign companies the superintendent of in
suranCe must be satisfied that the securi-
ties are properly maintained
The small sick-beneft companies are re-
quired 10 have guaranty fund of at
least $4,000. and that it be at least per
cent OF their outstanding life risks
The expenses of such companies, incud-
ing dividends, are not to exceed 30 per
cent OF the premiums received in any
year. so that at least the balance of
premiums and all forefeitures shall be
paid in losses or dividends or placed in
reserve for the benefit Of the policy
holders
When risks on lives over forty-five years
Of age exceed in number those on lives
under that age the excess in the oldest
lives must be secured by "a fun legal life
insurance reserve equal to a single pre-
MUM for life insurance Of such excess
OF risks.
The act does not affect fraternaI bene-
fetal associations, nor associations Of Off
GERS and enlisted men. civil service en-
ployes, or the employees of a single firm.
Nomination Reported Adversely.
An adverse report was made by the
Senate Judiciary Committee yesterday
on the nomination of James D. Elliott
10 be United States district attorney for
South Dakota. Elliott has already had
one term. In the Senatorial night in
that State he took sides against Sena-
tor kittredgc.
Always the Same.
Tho~r,'S D-~o