The Washington herald., 1911-08-09
DISTRICT BILLS
PASS IN HOUSE
Insurance Companies Curbed
by Measure.
FRAUDULENT SCHEMES BARRED
Representative Urges Protection to
Poor Residents OF Washington
from "Insurance Sharks''-Ex-
cess Rates Charged by Unsafe
Concerns-Mrs. Mathews on List

Invoking a special rule for the pur-
pose, the House yesterday took up bills
affecting the District of Columbia, and
managed to pass three before adjourn
ment last evening. They were meas
ures TO classify and define health, ac-
cident. and death benefit companies and
associations. operating in the District;
giving the District of Columbia a right
of appeal to the Supreme Court of the
United States in patent cases, and au-
thorizing the Commissioners of the
District to place the name of Annie NJ.
Matthews on the pension roll of the
police and firemen's pension fund.
The adoption of a resolution to ad-
nit the District legislation occupied
considerable valuable time after the
House convened. Representative Mann
insisting upon a quorum before per-
hitting its consideration.
Insurance Bill First.
Acting on authority granted in the
resolution to advance the bills in the
order he saw fit, Chairman Johnson, of
the District Committee, chose as the first
measure the Senate bill affecting certain
classes of insurance concerns, which, 1t
is alleged, have found means of collect
ing large annual tol from individuas in
the District of Columbia seeking their
benefits. under a loosely drawn set of
laws which allow immense latitude and
provide but little assurance to the pa
irons that their premiums are being paid
into sovent and responsible concerns.
In a long debate on the measure to
regulate and systematic the operations
of these concerns, it was charged by
Representative Nelson, of Wisconsin, that
the District was infested with 'insvf-
ance sharks represented by so-called
life and accident associations, which
yearly collect tribute of half a million
dollars from the peope of Washington
in the over walks of ife, 60 per cent of
whom are women.
According to Mr.. Nelson, some of these
companies are composed of but three
persons-in one case the three being
father, mother. and son-and in all not
more than seventy-five people are shaing
in the immense sum collected annually
from the poor people through this chan
mel.
Excess Rates Charged.
Citing a particular company as a fair
example of those the the bill aimed to
eliminate Representative Nelson called
attention to one company with a capital
stock of 81, divided into 100 shares of
cent each. Others, he said, had a capital
stock of only $40, and all of them were
charging rates 40 per cent in excess of
the old-line companies.
Chairman johnson told the house there
was no regulation for these companies
under the present laws; that the insur-
ance commissioner had no authority to
investigate them, while it was known
that many OF them had no assetsJ The
Senate bill under consideration, which
had the approval Of the District corpor-
alton counsel and the insurance commits
sioner, would bring these offending con-
Germs under the law and compel them to
maintain assets for the protection OF
their policy holders.
The measure which was passed by the
House designates every corporation, Joint
stock company, or association not affect
ed by the regular insurance code of the
District as health, accident, and life
insurance companies or associations" 1t
requires such concerns shall, within
ninety days of the passage of the act,
have in assets or in capital stock fully
paid up In cash not less than $4,000 as a
capital or guarantee fund. which assets
may 5e invested In United States, State,
and municipal bonds. railroad bonds of
roads which have paid 10 per cent divi-
dends on capital stock for ten years,
and bonds of the District of Columbia.
Limit Placed ON Insurance.
Acording to the terms of the bill. no
company is allowed to issue insurance
providing greater death benefit than
$780, or a greater weekly indemnity than
$50. on any one person. unless such con-
cern has 100000 In assets OF capital stock
fully paid In cash and approved.
As District taxes the companies are
required to pay per cent OF all moneys
received from members of policy or GER
tifcate holders within the District The
companies are required to file state
OF insurance.
Largest Morning Circulation.