The Birmingham age-herald., 1910-07-10

ter of course. It is an indirect tax then upon every policy holder in the state and Is especially heavy in fire insurance. Should this tax be lifted from the companies l feel sure that the reduction in fire insurance rates lslature seriously consider this mat ter.
 "The strength ening of the law in re- gard to local agents is greatly need ed. The people of the state have been during the past Is months put to con siderable annoyance and in some in- stances expense by Irresponsible agents. An examination of agents should be one of the conditions upon which license should issue.
 Live stock Insurance
 "The repeal of the law providing for the organization of live stock in- surance companies, as enacted by the legislature of 1907, is urged. Only one company was ever organized under this special enactment stno Us c.. c4 |. was brief. Within IS months from it's organization the department was forced to put the company in the hands of receiver. This law can do no good on the books and may be the means of a great deal fo harm.
 
 ''The repeal of all special charters to insurance companies granted by the leg islature in the past years in earnestly recommended.
 FraternaI Insurance
 This subject is becoming more and more important Many of the states of the union have laws requiring fraternal insurance companies to come under the supervision of the various insurance de- rlar rt Tn fn ant To bama has been unable to secure any leg islation whatever on this subject. The result is that the state is filled with a number of irresponsible so-called fra ternals who are imposing upon the poorer class of people, and the amount of money collected by these concerns Is enormous. I may state here that the department in 1909 attempted to secure the cooperation of the fraternal bodies for the passage of a law giving the department the right of supervision and examination, but such law died in committee. It Is easily un- derStOod why we have been unable to se- cure legislation along this line. when the departments attitude has been mis- represented by head officers of certain fraternal organizations. The legislature can i'll afford to ignore the demand that Is arising in all parts of the United States for the correction of abuses being en- gagged in by some so-called fraternal in- surance associations. The fact that Ala bama is without adequate laws on thls subject makes the people afraid of the al- legged fraternal insurance sharks who have sprung from practically all of the states north of us. I sincerely hope that the legislature will pass, without amend ment, the uniform fraternal bill that will be presented by the national convention of insurance commissioners.
 UuwfSe LexisIatf0n
 '"The state of Alabama is rapidly de- veloping, and naturally cheap money is desired, and I know of no better source to secure large volumes of money than from insurance corporations. However, these corporations are slow to invest In those states that enact drastic and un- wise laws It Is to be hoped that every safeguard will be thrown around the pol icy-holder and at the same time liberal spirit will be shown the companies. The experience of those states that have at- tempted to compel impossible things of insurance companies has been disastrous. It occurs to me that one of the most popular fallaces Is the making of rates by a state board in the matter of fire insurance. My observation has been that those states providing for rate-malxing bureau have not benefited the insurer, but on the other hand have caused a great deal of confusion. bringing j~ the state number of weak corporctk and the result iias bv... M stronger companies from the state. Ala bama, hope, will not attempt to begin the experiment of making rates.
 Amended Charters
 Under the present laws of the state a number of mutual aid or industrial associations have been formed. In num- Der of cases the charters of these cor porations or associations have been taken over by promoters, the charter amended and stock sold. and the companies be- gan business upon the legal reserve ba- sis. I am of the opinion that this is ak evasion of the legal reserve laws of V state. The mutual aid laws should so amended that these charters tt be used for promoters schemes,