The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-02-05
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& FEDERAL CONTROL.
COMMITTEES Of American BAR A.
sociatlsn Attacks state Insur
spes DEPARTMENTS, ,..,s,

tfI ffI1t| TI7ll laflf .Iff III
Charging that more Is lost to insur-
ance policy holders through destfncl-
I've legislation than mismanagcmcnt
and dishonesty OF company onicials
and the incompetence or unfaithfnl-
ness Of the majority Of the state in
nurnnce departments the COMMITTEES
cf the American Bar association on
insurance law asks insurance com.
panies TO frame model law.
The committees report makes The
following recommendations
first--That the insurance commit.
tee be directed to draft and report to
the next annual meeting Of the assoc
citation a bill that shall safeguard the
interests Of the life companies and
their policy holders. but which shall
require deferred dividends on life poll
sies 20 be blennlalIy apportionci, cred
tied and notified 70 the holders Of such
policies.
seeond-the repeal OF the so.caIled
reciprocal or retaliatory tax laws,
Third-rhe repeal Of the valued pol
Icy laws.
Fourth-The creation IN each state
Of the Office Of Are marshal.
Fifth--str,cier incorporation laws
IN the several states, with particular
reference to the capital stock and
stockholders obligations in insurance
companies,
sixth--'rhe enactment Of federal
statute forblddlng the use Of the mails
to persons. associations, co.nartner-
ships or corporations. conducting any
kind Of insurance business in the uni,.
cd states. who nre not licensed to
transact such business by the states
where such persozs, associations, CO.
partnerships or corporations arc dom-
icllcd, or under whose laws any such
corporations are created
Seventh The enactment Of federal
statute providing for the supervision
Of interstate transactions In iasur.
nncc.
After giving figures TO show the iu-
menslty Of The insurance business Ia
tho United States the report says
The most conspicuous exhibition u
legislative unwIsdom is found in the
bills prepared by the Armstrong con.
mittee and passed by the New York
legislature. The most conspicuous be-
cease II has had the widest advertise.
ment and because Of the things which
the committee might have done but
failed TO do; and its ignorance Of the
subject IL confessed,
Government supervision OF insuraa'o
companies is urged as necessity but
the bnrdensome taxes levied agains.
the companies by the various states
nre declared 10 be uniustihable Thesl
taxes. which are said TO amount to
s25, 100000 d year, are ultimately paid
by the polieyhoiders.
OF state Insurance departments IN,
report says
"Ihe trouble is that the state in-
surance departments are sinecures,
They are political prizes knowledge
OF the insurance business is the last
thing required. They are mere coliae-
tion agencies They offer the most
seductive, opportunities for fraud and
graft that exist in the United stntesr
Although denying that this charga
applies to all state insurance depart
mcnts. the report cites the disclosures
made in New York. Pennsylvania and
Minnesota as specific instances ia
prove its general correctness
State insurance commissioners are
quoted as saying that they are power
less to accomplish the objects for
which their Offices we're created, aud
the report adds
AS matter Of fact. the system Of
state supervision as administered un,
der the laws now in force Is a mlser
able failure. The honest aud intelli
gent commissioner 81 barred from ei
fectiye supervision by the very laws
he is bound 10 enforce. which afforc
golden opportunities that dishonest or
hcials have been quick 10 grasp.
The report then quotes figures e
show that the great mass Of insuranc,
business Is interstate in character an.
gives many authorities to show thai
the popular demand Is for fedora
rather than state control II also an
swerH the argument that the supreml
court has held that insuraucl
husiness is not commerce.
"'Fhc real opposition to the fedora
supervision Of insurance does not res
upon the nbssnce OF congresalouh
power. but rather 10 the dlslnclinatioi
to exercise It. That objection Is poIIl
ical IN character and has no solid fouu
i dalion.p