Los Angeles herald., 1910-08-18
FRATERNAL HEAD
TALKS INSURANCE.
Gains Made in Efforts to Bring
All Societies to State
of Solvency
HIGH FINANCE DEALS FLAYED
Merging of Organizations by Pro-
motors Denounced as Scan
daIOuS Transactions
HIGH FINANCE DEALS FLAYEI

DETROIT, Mich, Aug. 17.-Growing
demands by state insurance depart
ments for the regulation of the ten
billions of fraternal insurance, coupled
with united Endorsement by represen-
tatives of both the National Frater-
nal congress and Associated Fraterni-
ties of America of the regulative bill
proposed and the cooperation of those
two great organizations on all matters
Of legislation during the past year was
disclosed by the annual report of Pres
ident Thomas II. Cannon of Chicago to
the National F'raternal congress, which
began its sessions Tuesday.
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
which the congress has been pledged
was indicated as possible. President
Cannon said: SHOULD the revised ten
tative bill become the law generally in
our states, our National Fraternal con-
gress may then include after few
years all the reputable fraternal so
cieties of the land" What he termed
"scandalous transactions in the mer-
ger of fraternal societies" were scath-
ingly denounced by President Cannon,
who recommended that action be Ia
ken by the congress regarding them
in behalf of the good name of frater-
nal insurance in general.
TREND TOWARD STATE SUPERVISION
"The trend of the times seems to
indicate a demand for more active state
supervision of the respective insur-
ance departments" said President
Cannon. "This demand has been form
ulated through the insurance commits
sioners' conventions and during the
year there were submitted to the So
cieties by the fraternal committee of
the insurance commissioners series
of some thirty-six questions calling
for information regarding the internal
management of our associations. Some
unfortunate scandals arising out of the
merger of societies have accentuated
the demand for wider and more active
state supervision.
During the past year there have
been two important conferences be-
tween the fraternal committee OF the
insurance commissioners convention
and the officers of the fraternal soci-
cites for the purpose of formulating a
uniform fraternal society law. Inc
first of thees conferences was held IN
Chicago and the second in New York.
At the first conference a tentative Dill
was drafted. This bill was the out
come of an exhaustive discussion pe-
| tween the insurance commissioners and
the society representatives. 1t was not
| entirely satisfactory to all concerned
| and after it was printed and circulated
| a final conference was held on June
| Is in New York for the purpose OF
overcoming the objections raised and
of molding the bill into more salts
factory shape to all those interested.
sOLyENCY THE STATES DEMAND
"rhe insurance commissioners fra
ternaI committee takes the position
that all fraternals should be placed
upon a safe and solvent basis and that
the societies should be compelled TO
take such steps in regard to rates OF
assessments as would place them upon
this footing and that this result should
follow by mandatory legislation gov
erning all societies alike. The soc1-
cites representatives were informed
that this was the purpose OF the lnsur-
ance commissioners and that unless
the societies would agree, Legislation
in the nature of a force bill would
be pressed by the insurance commits
sioners.
"The outcome of the New York con
ference was a compromise rendered by
some of the representatives of the ira
ternal societies, which, in brief, pro-
vided that those societies at present
not having adequate rates of contribu-
ton might be allowed, within rea-
sonable time, to progress to a condl-
ton of solvency. This compromise Is
Incorporated, in section 23a of the re-
vised tentative bill, which will! be be,
fore this congress for discussion and
action.
"Your executive committee stood
firmly for the principles of the Ma
tional Fraternal congress as heretofore
enunciated They decided, however, to
report upon the compromise sections
of the Hill to this congress and are
agreed that the revised tentative bill
under the circumstances is the best
that can be secured and will insure
The united cooperation of all frater-
nails in the enactment into law OF a
uniform bill"