The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-05-03

Committee Of AmsrIesn Bar As-
soclaslon Attacks state lneur
nneo Departments.

commIttee Of American Bar As- Z
I socletIon Attacks state lneur Z.
IL aneo Departments. Z
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Charging thst mere Is lost to ipsur-
ance policy holders through destruct-
i've legislation than mlsmaaagement
and dishonesty OF yompeny officials
AVID fthe iheompet4nc9 Dr. unfnthful-
ness OF lha majority of the state in.
aurasce departments. the committee
cf tie American Bar association on
insurance law asks Insurance COM
panles 10 frame q model law.i
The committees report maheg tho
following recommendations
F'irst-That the insurance commit
tee BE- directed to draft and report to
the next annual meeting Of the Assoc
eiation a bill that shall safeguard tie
interests Of tho life companies ard
their policy holders. but which shall
require deferred dividends on life poll.
lies 70 be biennially apportiousi, cred.
ted and notified 10 the holders Of spch
policies.
second--the repeal OF the so-ealled
reciprocal or retallatory tax laws.
Thlrd-.I'he reneal Of she ynlued mol.
Icy laws.
foirth-The creation IN each state
OF the office Of ilre marshal.
Fifth--stEcier incorporation lans
In the aeve1l states, with particular
reference to the capital atock aud
stockholders obligations in insurance
companies.
Sixih-The enactment of federal
statute forbiddlns the use Of the mails
TO persons, associations co-partner-
ships or corporatiunH. conducting any
Bind Of insurance business Ia the unit.
ed States, who are not licensed to
transact such business by the statea
where such persons. associations, CO.
partnerships or corporations are DOM
lciied, or under whose lawn aug such
corporations are created
Seventh The enactment OF federal
statute providing for the supervision
Of interstate transactions ID insur-
ance.
After giving ngures to show the in-
menslty Of the insurance business In
the United States the report says:
"The most conspicuous exhibition Of
Legislative uhwisdom Is found in the
bills prepared by the Armstrong com.
mittee and passed by tae New York
legislature. Tho most conspicuous be.
enuse It 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 10 confessed.
Government supervision Of insurance
companies Is urged as necessity but
he burdensome taxes levied against
the companies BY the various states
Rre declared to bo unlusthnble Thesl
taxes which are said TO amount to-
a25,O0o.OOO a year, are ultimately paid
BY the polleyholders
on state insurance departments tbs
report says:
zine trouble IL that the state ln-
asTaueo departments are sloeeurea.
Ieey are political prizes Knowledge
d the insurance business Is the lasE
thing required They are mere eollec-
tlon agencies. They offer the moss
seductive opportunities for fraud and
graft that exist In the United States
Although denying that this charge
applies to All state insurance depart
ments, the report cites the disclosures
made in New York. Pennsylvania and
Minnesota "a specific inssancea to
prove It's general correctness.
State insurance commissioners are
quoted as saying that they are power
lese to accomplish the objects fog
which their Offices were created. and
the report adds;
"As Q matter Of fact, the ayatem Of
state supervision as administered un-
der the laws now In force Is q miaer.
able failure. The honest and lntelli
gent commissioner Il barred from ef.
feetive supervision by the very laws
he Is bound to enforce. which AFFORD
golden opportunities that dishonest Of
acIala have beea quick to srasp,
The report then quotes figures to
show that the great mass Of Insurance.
business Is Interstate IN character, ard
gives many authorities to show that
the popular demand IL for federal
rather than state control II also on.
awers the argument that che supreme
court has held that inburaues
business ls not commerce.
"The real opposition to the federal
q. a 4