Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-08-18
GROWING DEMANDS
FOR REGULATION
OF INSURANCE
Merging Of FrateraaI Orders by
Promoters Vigorously De-
nounced as SCandaIouS Tran
SaCtion,


Especial Correspondence TO Morning Journal
Detroit, Mich, Aug. 17.-Growing
demands hy state insurance depart
ments for regulation OF the ten mill
lions of fraternal insurance, coupled
with united endorsement by repre-
sentatiyes Of both The National Fra
ternal Congress and Associated Fra
tefnities of America of the regulatiNe
bill provided and the corporation of
those two great organizations on an
matters of legislation during the past
year was disclosed by the annual re-
port of President Thomas Il. cannon
OF Chicago To the National Fraterual
Congress which began it's sessions to-
day AT Hotel P-onchartrain.
The ultimate amalgamation of the
Associated Fraternities of America
with the National fraternal Congress
in a giant merger that would mark
the victory Of the sound principles To
winch the congress has been pledged
was indicated as possible. President
Cannon said: should the revised
tentative bill become the law gener-
ally in our states, our National Fra
ternal Congress may then include af-
ter q few years. all the reputable fra
ternal societies of the land. What he
Afi iiiNu NAdllQdiNlN llUllHitllNAAA III
the merger of fraternal societies wero
sc%athingly denounced by President
Cannon, who recommended that ace
ton be taken by the congress regard
ing them in behalf of the good name
of fraternal insurance in general.
Trend Toward State Supervision.
The trend of the times seems to
Indicate q demand FOR more active
state supervision by the respective in
surance departments, said President
Cannon. This demand has been
formulated through the Insurance
commissioners conventions and dur
ing the year there were submitted to
the societies by the %Fraternal commit
tee OF the Insurance commissioners
u series Of some SO questions calling
Tor information regarding the internal
management OF u associations. Some
unfortunate scandals arising out of
the merger Of societies have aceentu-
nted the demand for wider and more
active state supervision.
During the past year there have
been W important conferences be-
tween the Fraternal committee of the
Insurance commissioners convention
n the officers of fraternal societies
Tor the purpose Of formulating Il uni.
form fraternal society law. The first
or these conferences was held In Chi
cago and the second in New York. At
the first conference Il tentative bill
was drafted This bill was the out
come OF an exhaustive discussion be-
tween the Insurance commissioners
II the society representatives. 1t
was not entirely satisfactory to an
concerned and after it was printed
ana circulated a final conference was
had on June 10Th in New York for The
purpose Of overcoming the objections
raised and Of moulding the bin into
more satisfactory shape to an those
interested.
Soi'cnCX the States Demand.
The Insurance commissioners fra.
ternal committee take the position
hat all fraternals should be placed
upon q safe and solvent basis and that
the societies should be compelled To
take such steps I'm regard to ratoa
OF assessments as would place them
upon tins footing and that this re
suit should follow by mandatory leg
lslation governing all societies alike.
The societies representatives were in
formed that this was the purpose or
the Insurance Commissioners and that
unless the societies would agree. Leg
in the nature of q force hill
would be pressed by the Insurance
Commissioners.
THE outcome Of the New York
conference was q compromise tend
ered by some of the representatives.
Of the fraternal societies which in
brief. provided that those societies al
present not having adequate rates Of
contribution. might he allowed. With |
IN 2 reasonable time, 10 L.
a condition Of sol>ency. This fof~S
promise is Incorporated in section 29a
Of the revised tentative bill. which |
viii he hefe~e this ngre for dis
,ussion and action.
your executive committee stood
firmly for the principles of the Ma
ional fraternal congress. as hereto
ore enumerated. They decided. how
ever, to report upon the compromise
sections Of the bill to this %congresA
are agreed that the revised tenta-
i've bill. under the circumstances. Is
he best that can be secured ana viii
insure the united cooperation of all
raternals in the enactment into Law
IF a uniform bill.
High Finance Is GrlIled.
Concerning the mergers of fraternal
ocieties which he referred to as
.~scandalous transactions President
'annOn said:
Regardless of the rights Of mem
'ers' promoters of high finance have
Undertaken 20 merge the memberships |
" different organizations. The main
.h1ect seemingly has been 10 gohble |
he funds OF these societies. pay large |
COMMISSIONS To the merger promoters
no entirely ignore the rights of the
lemhcr8- Thees transactions have |
.een ventilated IN the courts with no
TO the parties concerned and
ave given occasion TO the enemies OF
he fraternal system 10 decry the
hole system as unsafe and unsound
IS q consequence, the good name or
he fraternals IN general has been as /
allied and II IS my opinion. therefore
nat this congress should take some |
elton or give some expression az IL J
g position on the merging Of fra /,
ernal societies"
Cooperation between the congress ,
nd the Associated F%ratcrnities in lit
,ation affecting fraternal insurance
general was mentioned by Prcsi-
ent cannon Important decisions lea
York. Iowa and Texas were re-
The organization Of an as
II the general counsel Of ,