Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-08-28
Committee Of American Bar
Association Gives Results of
Exhaustive Investigation Into
Recent Legislation Thereon.
OVER REGULATION is
R0UNDLY CONDEMNED
Hostile Laws in Texas and Ar
kansas Pointed Out as Ex-
ampleS of Needless ReStric-
ton on Legitimate Work,

Portland, Me-, Aug. 27-Too much
regulation of the Insurance eompa-
nies of America was roundly con-
demned in a report submitted by the
committee on insurance law at the
annual meeting Of the American Bar
association in this city The commit
tee found as a result OF its exhaustive
investigation extending over a year
that much of the general, non-dis-
eliminating distrust of insurance COM
panies and their management" which
Followed closely upon the heels of the
Equitable controversy, was "unreason-
able and unmerited and due to the ip
norance of the public respecting the
principles upon which insurance Is
based and the methods which should
be employed in supervising IT," This
condition has made possible, the com
mlttee declares the enactment of laws
ostenslbly supervisory but actually
destructive in their tendency and on
the whole "a greater menace to the
interests of pOlicy-holders than thew
have suffered through the misman-
agement and dishonesty of company
officials and the incompetency and
unfaithfulness characteristic of MANY
state Insurance depg rtments." The
report. declares thakissle adtAinistra.
uon OF the insurance laws of many
states has been characterized either
by unblushing fraud, mostly In the
form of blackmail, or by gross in
competency. 1t condemns the plac-
ing of unfair burdens in the form of
taxation upon the insurance comma
nies as has been done in some of the
states, and views with alarm" the
tendency already evidenced i'm Texas
and Arkansas to require that large
proportion of the reserve value of life
insurance written within the state
shall be invested within that state.
There is no occasion for general
distrust of the life insurance compa-
nies of America, says the report,
though 1t may well be doubted
whether all of the schemes Of life in
surance which enjoy current popular
lty VIII bear scrutiny; and 1t Is certain
that the sentiment of fraternalism is
widely prostituted by the dishonest
and extravagant management of some
of the sO-called fraternal orders The
individual who misappropriates trust
funds deserves censure and punish
ment, but II is Just as dishonest 10
steal under protection of law as with
out 1t; 1t is just as dishonest for the
states to lay unholy hands on trust
funds as for an individual, and the
states commit monstrOus Injustice
when they seek even partially to
maintain themselves by legislative
raids upon trust funds
AT the St. Paul meeting of the as
soclatl0n your committee met the So
called conference of state insurance
commissioners, attorneys general and
governors who had voluntarily UNDER
taken to reform the insurance legis-
lation of the country. There were
many of the state commissioners
present, but your committee learned
of no governor or attorney general
who attended. Excepting some half q
dozen commissioners, who seemed
notably fair-minded, the attitude Of
the commissioners appeared to your
committee to be one Of hostility to the
companies. and their apparent general
desire"was to increase their own pow
ers without any corresponding checks
upon them, instead Of planning for
more efficient supervision of the COM
panies, or the protection of the invest
ments already made by the great army
of policy holders. The bills submitted
to that conference had been prepared
by previously appointed committee
of fifteen. None were approved by the
conference and the whole matter was
referred back to that committee OF
fifteen. which. as your committee are
advised, met later In Chicago. and the
insurance bills, which have flooded
the legislatures i'm session during the
past winter under the professed en-
dorsement of the insurance commits
sioners of the United states In confer
ence with the governors and attorneys
general were, In some Instances, en-
dorsed by a bare majority Of a mi-
nority of that committee OF fifteen;
that is, to he specific, your committee
are Informed that a bill which with
some modification was passed In Mis-
souri, and introduced in numerous
other state legislatures, and which
bars out Of the state companies which
pay salaries to any official exceeding
certain sum per annum was pre-
pared by commissioner from one
of the states south Of the Ohio river,
and put through the so-called COM
mittee Of fifteen by vote Of four TO
three Such legislation verges upon
Mysteries and those responsible for II
must be actuated by an insane hatred
OF the few big companies whose pres
idents or managing officers receive
large salaries. But It does not follow
that because four out Of seven Of tho
committee Of fifteen regard $4,000
or $4,000 per annum ne the outside
limit OF compensation for man quail
flied TO look after the Investment Of
trust funds amounting to hundreds Of
millions OF dollars, that the judgment
of these few ought to control. or that
the interest Of the policy holders In
these great life insurance companies
ought 10 be placed IN jeopardy be-
cause OF their implacable hostility.
Insurance supervision Is not only
demanded as public right, but con-