The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-12-01
INSURANCE LAWS
OF THE DISTRICT
WEAKEST IN UNION
Superintendent Drake
Washington Offers Fine
Field for Business, Says
Annual Report.
Three Hundred Abused
License Privilege-Four
Companies Barred.

That the insurance laws Of the Dis
trict Of Columbia. are 1.-The Weakest,
most ambiguous, and the hardest to ad-
minister of any in the United States
is the assertion made by Thomas Z.
Drake, superintendent of insurance. in
his annual report submitted TO the Com
missiOners yesterday. Preceding this
is the statement that the District. be-
cause Of its wealth, is one of the hest
fields for insurance in the United States
and that there are more insurance
agents-about 1 SOO-in Washington than
IN any other city Of corresponding size
IN the world.
In support Of his statement concern
ing the insurance laws, Mr. Drake
quotes speech made by Representa-
tive B. W. Mccall Of Massachusetts at
the last Congress, in which he said
that under the District code there is
an insurance company operating which
appropriates 10 its treasury 80 per cent
OF all the premiums collected.
Would Grant Tax Exemption.
The superintendent says that I'm his
Judgment the exemption under the Dis
trict code of fraternal beneficial assoc
companies from payment of taxes on
premium receipts should be extended TO
insurance companies OF every descriu-
ton, for the reason that insurance of
all kinds has become as necessary a
commodity and as staple as bread.
Mr.. Drake refers at length to the
bill introduced at the last Congress by
Representative Butler Ames OF Massa-
RF-h
department OF the District TO the De-
partment Of Commerce and Labor. and
concerning which he forwarded a report
to the President at the latter's request.
The bill was made the subject Of a spe-
cial message by the President, who
urged its passage. upon the ground that
every means should be taken to pre-
vent repetition Of the then recent In
sursnce scandals. Many objections and
over two hundred amendments were
made to the bill, which finally failed.
300 Abused License Privilege.
Following the issuing of a rule. April
80 1907, requiring every insurance COM
pany to furnish in connection with rs
annual statement, an affidavit from each
Of its principal agents IN the District
giving the name and address Of every
person to which a commission was paid.
# was discovered, says the report. that
over 800 persons had operated as solicit
tors and brokers during the last fiscal
year. or had abused their license privil-
eyes not only during the year but from
the establishment Of the department
January l, 1902 The bulk Of these de-
linquent license fees, II is stated. have
been paid.
Mr.. Drake announces that he viii
again submit to the Commissioners for
transmission to Congress the draft of
bill which will require that insurance
policies or renewal receipts be counter
signed by agents who are located IN the
District Of Columbia.
The total amount Of premiums paid
during 1906 10 the companies licensed to
90 business in the District Of Columbia
was S4.233. 57349, an Increase Of S232, 7SS. p.
Total losses paid in the District amount
ed to H.SSO ,JO351, an increase Of $3.50, -
S73.f7
The American Home Life Insurance
Company. the Proyident Relief Assoc
citation, the Peoples Mutual Benefit So
Ciety, and the UIiOn Insurance Com
pany wero not rehcensed owing to their
alleged failure to pay their taxes.