The Montgomery advertiser., 1907-06-29
ASKS FOR OPINION
GEORGIA DECISION MAY HAVE
 ALABAMA EFFECT.
The Ruling on the Co-operatiye Insur- ance Agency Plan ReOpens
 Question Recently Decid- ed by Attorney Gen- eral GarbeR.

The adverse decision of the Attorney General ef Georgia on the Co-opera- tive Agency plan adopted by a well known insurance company Of Geogia has reopened the question in Alabama. The opinion of Attorney General Hart of Georgia has been referred to Att torney General Garber of Alabama Tor an opinion on it's effect on the opera tions of the plan in Alabama.
 It Is probable that Colonel Garber will render an opinion on the new phase of the question today. The plan in qtrestIon; provides for the estab- company to work in conjur&tion with the insurance company, to write in surance for the company. The Agency Company proposed to sell It's stock, eithsr to policy holders or non1poliey stock sale. to be turned over to. the tn- surance company a plan which would leave the agency company without as- sets
 The business was permitted to begin in Georgia, as there was apparently no law which would prevent Its opera ton. The Comptroller, who had the right to grant 1t permission, however, General of Georgia who decided that the plan was illegal because both the agency company and the insurance company, purportins to be different
 
 same companies. The organization was illegal so far as the incurance company was concerned the Georgia Attorney General held, because the such an organization under its charter. Continuing Attorney General Hart said:
 [ "Manifestly the insurance company under this contract indefinitely sur vtve. Neither of them are creators of wealth. yet they are, under this scheme, expected to feed upon each other and the argument is each will grow rich. This Is impossible. In time one must consume the other. The scheme might be floated for while, appealing to the greed and credulity of the public, but Its voyage must be short-lived, for 1t could not stand the test of time, nor survive the stress of financial storm. Life insurance is not a thing with which thoughtful men would wish to trifle, and life. insurance companies should be confined to the business for which theN are organized. Wild ex- perfments and speculative schemes are no part of the business of life in- surance. This life insurance eompany's contract with the agency company is an illegal contract. engaging the in surance -company in a business other than that of life insurance. for which 1t was incorporated, and clearly falls within the condemnation of the law
 Based on the attorney generals g opinion, the comptroller general will prohibit the company from putting its proposed plan into operation.
 Upon the promulgation of this find ing of the Georgia Attorney General Insurance Commissioner Julian referred the question to Attorney General Gar Der, of Alabama. Colonel Garber had passed upon the operation. of the plan in Alabama and he found that there was nothing in the law to prevent the sale of these shares of stock to policy holders or non-policy holders in Alabama. If any wrong was to be done, it was to be done through a deficiency in the law But the Georgia opinion declaring the. organization of the plan illegal In the place of the company's birth put a naAy phase on the situation and the Attorney General will hand down another opinion on it's effect on the company's operation In Alabama.