Los Angeles herald., 1910-09-16
STATE RULES DIVIDE
INSURANCE FACTIONS
National FraternaI Congress in
Line with ComiSSioners'
on Public Safeguard
Especial 10 Tho Herald)

CHICAGO, Sept. l5-The final
breach, amounting to an open war by
the National FraternaI congress upon
the opposition to state regulation of
fraternal insurance, the position of the
Associated Fraternities Of America,
was reached when the executive com
mittee Of the congress, at a meeting
here, formally lined up with the in
surance commissioners. The societies
which comprise the membership of the
congress have about 5000 900 members
those Of the Associated Fraternities
about the same. Only recently there
was prospect of a merger of the two
great bodies, this split having been
caused by the fact that many So
cieties now insolvent refuse to read
just their rates to adequately meet
their promises Of insurance or agree
to any safeguards Of law decisively to
protect the public.
The formal action of the congress
was embodied in resolutions Of the ex-
eCutiVe committee as follows:
Resolved that 1t is the sense Of this
executive committee that no further
conference be held' with representa-
tives Of the Associated Fraternities of
America, looking toward an agreement
upon a tentative bill to be proposed in
the several legislatures during the
coming legislative session, for the
reason that there is no apparent dis
position on their part to agree upon,
or support any legislation looking to-
ward the proper conduct and ultimate
solvency of the business of fraternal
insurance.
Resolved further that it is the sense
rlp Il 10
representatives, Of the National Fra
ternal congress should confer with and
cooperate with the insurance commits
siOners Of the several states to the
end that such legislation may be had
as will secure a proper conduct and
ultimate sOlyency Of fraternal insur-
ance associations.
President j. ]. Hynes gave out as
the explanation Of this action the fol-
lowing statement:
"The executive committee heard the
report Of Mr. Piper who represented
the congress at the session of the As
ISOLATED Fraterniun7 held at Atlantic
City and presented the tentative bill
approved OF by the congress. The
fraternities so emasculated the bill
sections they attempted to approve
and sections that they entirely elm
inated-that the bill is nothing at all
like the insurance commissioners bill
we approved, After hearing that re-
port the committee unanimously re-
solved to have nothing further to do
with the Associated Fraternites and
we will take up the matter of the
tentative bill with the Insurance COM
missioners and do what we can to get
the necessary legislation.
"I think that il is about time that
a line Of demarcation between the fra
ternal congress, composed Of orders
that have adopted adequate rates and
orders that are about revising their
rates so as to comply with the Ma
tional Fraternal congress mortality
table, and the Associated Fraternities
composed of orders that are not In
sympathy with the fraternal congress
upon adequacy Of rates; who seem to
be opposed to placing fraternal or
ders upon a plan leading to solvency,
and [ cannot see what benefit II is
to us to hold any conference with
such a body.
TN the first place we differ radically
upon what is adequate rates; that Is
the vital principle of the congress,
and I don't believe that it would be
common sense to trust the protection
Of that principle with those who are
opposed or the enemies.'