The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-13
BUTTON OPPOSES
LOCAL LICENSES
Insurance Commissioner Docs
Not Favor Taxation by
Municipalities.
VIRGINIA STATE is SOUND
Difficulties of True Reformers
Observation-Disclosures
Rates Are Low.
VIRGINIA STATE is SOUND

Hearty concurrence In tho recon-
mendation of tho State Tax Commits
sion that the imposition of license
taxes on insurance companies by cities
and towns be abolished IS given in the
commissioners Joseph Button. ISSUED
yesterday. The system of municipal
taxes and fees permitted by the~State,"
says Colonel Button. as unduly op-
pressive to the smaller companies and
tends TO sttfie their growth"
ihere has been a good deal OF dis
cussion Of this matter Of license taxa
uon by cities and towns. Companies
complain bitterly that this form Of
taxation is frequently excessive and
without reason. and contend that but
one UNIFORM tax should be LEVIED by
state law. taking away from munich
psuties the right to add to the burden.
The Sirsfnin State.
examinations during the year were
mace by the bureau of seven fre and
marine insurance companies and five
fraternal beneficiary associations. Re-
garding the inspection OF the affairs
OF the Virginia State Insurance Com
Inc examination showed the company
10 be an more unsatisfactory condi-
tion than 1t was the previous year.
Turing the progress OF the ev1amina-
ton plans were laid for a complete
reorganization. which was successfully
accomplished. The company is now in
sound condition and has a good fu
ture."
The other important fire company
examination n hA
tho Shawnee Fire Insurance Company.
and OF this the bureau says: The ex
animation showed that the reports
rendered the various insurance de-
partments had systematically under
stated the reserve liability. The com
pany was found 10 be in dangerous
condition. and. before the examina
ton could be completed. reinsured Its
outstanding risks"
Woodmnn Rates Low.
Another warning is given the policv
holders OF the Modern Woodmen OF
America, who have refused to nut the
society's rates upon what insurance
oincials consid an adequate basis
The examination of the Modern weed
men, the largest fraternal benehriary
association in the world, was con-
quoted Jointly by the Illinois and Vir-
gina departments. and REQUIRED tbrea
months time. 1t shows the society
says the report, to be a bona f,de fra
terna! association. operated economi-
Carly IN the Interest OF the members
Whiie the examination also show
cd. pursues the report, the societv,s
rates to be inadequate. no blame can
De attached TO the mana cement on this
account The management has con-
Stah'iy urged the membership to adopt
rates that would be permanent ana
the membership has consistently ra
tused 10 do so. The society makes
no pretense In its literature thar ne
rates are adequate The question Of
rates. involving as IT does. the future
or the fraternal system OF Insurance
is the leading question before manv
OF me societies of to-day. The mem
oership OF the Modern NNoodmen of
AiaeI'ca is 10 be congratulated on hav
ing management that takes such an
intelligent view OF the question:"
troubles of True Reformers.
naturally space is given TO III.
troubles OF the United order Of Trua
Retormers. the largest colored order
IN the country. which has been 40
much in the limelight during the nast
year. From It's embarrassment Com
missioner Burton draws a moral. He.
says:
The failure OF the True Reformcrs.
Bank, whose condition had heen Iong
suspected, and the corruption and mis-.
management shown to exist in the
management Of the affairs OF the va
rlous corporations affiliated with the
Grand United Order of True Reform.
ers. brought this colored society To the
verge of dissolution. The members
stood by the society loyalty and have
assessed themselves heavily in an at
tempt to clear the association or tic
indebtedness
that the overdue claims Will be maid
or as rapidly as possible by extra as
sessments. the society was permitted
TO resume business after having had
Its license suspended for six months
The wreck of the once proud True
Reformer shows that the State should
not permit fraternal associations 10
affiliate with or engage in other lines
of business"
Companies on Good Basis.
Regarding the general conditions in
the insurance business in Virginia
the report says:
Life insurance as conducted In tbie
state is transacted on n higher plane
than in many parts of the country. be-
Ing to comparative degree free OF
MISREPRESENTATION. reba ting, twisting
and other bad practices. The com
panies arc OF the hest type. and the
?oun6ei siHaile' companies operating
In the State are all showing substan-
tial progress.
The fire insurance companies trans
acting business in the State are also
of the best type. A constant effort is
made to see that the companies ere
being regularly examined by the va
rious States working together. While
conditions, such as existed In the
Shawnee Fire Insurance Company, the
nix TIE
Virginia State Insurance Company, can
NJ, hn dntacfnd cln