Omaha daily bee., 1909-02-12

Chairman T. s. Allen who is attorney for
certain fraternal interests, has been in the
senate a number Of times laboring with
Mr.. Bartos and with the individual mem
bers OF the insurance committee to force
a meeting, Notwithstanding Mr.. Allen is
not registered as a lobbyist on the record
book in the secretary of states office.
Two bills introduced by Senator Volpp OF
Dodge county have claimed attention and
although they are innocent looking on their
face. there has been a disposition to make
much over them. One permits the taking
over Of the business Of mutual accident,
sickness and benefit societies, together with
all their assets. claims. etc, by a stock
company of five members, and the other
bill permits mutual companies Of this sort
to transfer their business TO stock compa-
MES Of this kind. 1t is said. that the inter
est Of Mr.. Allen rests particularly in these
two bills, and that he has told Mr.. Bartos
and others Of the good that will come to
various mutual societies through their pas
sage. The measures will provide the
method for consolidation Of companies and
will, Mr. Allen is quoted az saying, be
largely in the interest of any company
that is taken over from the ranks of a
mutual into the fold Of the stock compan-
les.
Regulation of Mutuals.
Among the bills introduced by Senator
Bartos is one to make mutual fire insurance
companies pay to their deputies and agents
soliciting insurance the 81 fee which is
claimed in their reports to be all that is
allowed in the way of commission. II have
investigated" said Chairman Bartos, and
while 1 find that the reports OF the COM
..sao. ,.,I-. a. annaar that tho aCaptfa foo
of 81. is all that is paid in the way Of com
mission, they are really paid what will
amount to 25 per .cent Of the premium in
some instances. This is actually more than
the stock companies pay on a 1900 policy,
and 1t makes the expense roll of the mutual
companies so high as to render their BUSH
ness unsafe.
Another bill of mine changes the law
governing mutual fire companies which now
may have a guaranty fund. As a matter
of fact. my Investigations reveal that while
they are permitted to have a guaranty fund
/ have found none that really do have such
a fund, and they secure business on the
theory they have a fund when they do not,
which is a decided injustice to others OF
the same business who are regulated
strictly.
NJ study of mutual insurance has con-
WINGED me that the expenses of conduct are
too high, thai the law as It now stands per-
mits Misrepresentation, and that as a mat
ter Of fact there is misrepresentation every
day of the year in the mutual Insurance
business. Salary rolls are padded and ex-
pense lists grow in a manner all out of pro-
portion to the business transacted.
Now, mind you, 1 do not refer to the
small farmers mutual companies that are
organized quite generally over the state,
which go into the companies for mutual
protection merely and pay their officers
merely nominal. sums for actual work dono.
Their rates are low and they are generally
patronized and they furnish protection be-
cause they are not being operated for the
benefit of a number of individuals, but for
the members themselves. My bills will not
harm them in the least"
The Bartos bills would affect life COM
panies as well as fire and their scope is
extensive.
With relation to mutuals Mr.. Bartos seeks
to compel any person joining a mutual CON-
pany to sign a specific statement that he
will be responsible for his proportionate
share of any losses the company may sus-
tain.
The supreme court in a South Omaha
case" continued Mr.. Bartos, has decided
that there is no limited liability in mutual
Insurance. I'seek to give notice TO pros
pective policy holders that when they be-
come members they are undertaking this
liability, which is no more than following
the state courts holdings and should not
ba objectionable"