Daily capital journal. (Salem, Oregon) 1903-1919, 1907-01-11
TO MAKE
SECOND
ATTEMPT
Fraternal Insurance Bill is
Not Dead But Sleeping

AZ ledSL one OF the HIteen D1llS en-
acted by the legislature of 1906 and
vetoed by the governor will be pre-
sented again for legislative enact
ment at the forthcoming session, but
no attempt will be made to pass it
Notwithstanding the governors We
to-" It is that one which defined
fraternal beneficiary associations.
and provided for the regulation and
control of the same.
p. A. Mcpherson, vice-president of
the Order of Washington, of Port
land, has spent the past week in Sa-
lem. looking after the interests of
this bill. and has had certified copies
of its draft made with the governors
veto attached. Now he is going over
the measure and comparing its pro-
visions with the laws already upon
the statutes. with the result that he
has found numerous defects and dis
crepancies, which would render the
act ineffective. and he is having a
revised and corrected draft made, to
present anew to the legislature.
AS the title OF the bill indicates, II
defines what fraternal beneficiary as
sociatlons are. and provides for the
regulation and control of the same
through the agency of the insurance
commissioner, backed up by the pro-
visions of the proposed law. This
commissioner, whose salary shall he
fixed by the legislature, Is TO be ap-
pointed by the governor, and his
principle duty, besides those already
performed by the secretary OF state,
ex-ofIicio commissioners of insurance,
will be TO carry on systematic and
rigid inspection OF the standing and
financial conditions OF all associa-
tions coming within the Jurisdiction
Of the act. and to regulate them ac-
cordingly.
Tn the main. as he states in his
veto message, Governor Chamberlain
was In favor OF the bill. but de took
espeoial exceptions TO sections -
and 81. which he looked upon as
vicious and sufficiently so to make
the complete draft Objectionable as
a law in his eyes. II was an almost
exact copy OF bill drafted by the
executive committee OF the National
Convention of Insurance Commits
sioners, but both the National Fra
ternities Congress and the associated
Fraternities of America opposed It,.
In passing upon the bill the COVER
nor said:
Section 12 eXempts all property
and funds OF such associations held
or used to further carry out their
purposes from taxation under the
general tax or revenue laws of TIE
state. while the bill. as originally
prepared by the National Fraterni-
ties Congress only exempted such
property as was held and used for
lodge purposes. and the funds Of
such associations. IL might happen,
therefore, that II this bill became a
law all of the funds OF any associa-
tlon might be invested In a magnih-
cent business block in the city of
Portland, and entirely exempt from
taxation. This ought not to be per-
mitted,"
Aside from this 1t has been found
that this section is also in contra
vention with the constitution of the
state, and would produce a condition
exactly parallel to the case of the
Hibernian Society building, corner
OF Sixth and Washington streets.
Portland, OF which a test case was
made, and it was held in the 2Sth
Oregon, page 1913. that the building,
the greater portion of which was
leased out. was not exempt from tax
alton. AS to Section 81, he said;
Section 81 provides one rule OF
conduct for associations organized
prior to 1900. and another rule Tor
those OIBdhiAeu oAhSN'
OF legislation that ought not to be
adopted, and in fact 1t was subject
about which the fraternal commit
tee of the national convention OF In
surance commissioners and the exec
utive committee of the National Fra
ternal Congress differed. 1t was
proposed by the latter, but not agreed
TO by the former. The legislature OF
Oregon. however. Notwithstanding
this disagreement. had embodied II
In the law which has been enacted.
Section 81 reads; Associations or
ganized prior TO A. ID. 1900. Associ-
ations coming within the definition
OF ''Fraternal Beneficiary Associa-
= amaannT