The Detroit times., 1912-08-24
ORDER UF OWLS IS NOT
LOCALIZED TO CARRY ON
INSURANCE BUSINESS
State Officials Issue Statement
After Conducting Inves-
tigation
METHODS ARE QUESTIONED
Question is Raised as to System
Used by Organizers Through
out the State
From a Statt Correspondent.

'-@N%NSA~NSs +NANh'I 'NAos VI Wv
eraL- weeks the Order of Owls has
been unuer investigation by the state
insurance commission. In Lansing.
rs we'll az other places in the state.
There mas been some question raised
as TO the methods employed by the
organizers of local nests" After a
thorough investigation the insurance
department issued the following state
ment today:
BY reason OF the many inquiries
that have come TO the department or
insurance relative 10 the legal status
OF the Order OF Owls, and its right 10
operate In the state OF Michigan. We
deem II important that the people OF
this state be advised as 10 the situa,
ton regarding said order.
Monday. Aug. 10, We had a confer
ence with Jonas Hoover, who repre-
sented himself 10 be the general coun.
sci OF the home nest OF said order,
and he informed US that the home
nest Is not an insurance organization
or fraternal beneficiary society with
In the Michigan statutes; that II any
insurance business was done IL is
transacted by local nests OF said orr
der; that all moneys collected from
the members OF local nests, except
the IS or more initiation fees and 40
cents per annum. goes into the local
nest treasury, and Is controlled by the
local nest the disposition OF initia-
ton fees upon the organization is, as
We are informed by Mr.. Hoover, as
follows: Out Of the total amount col
lected, 800 is paid TO the home nest
OF said order for charter and regalia,
the organizer.
The per capita tax which, If the
statement OF Mr.. Hoover Is correct
that the order has 5000, 900 members.
would amount TO approximately $780,
900 per annum, Is used by the home
nest OF said order composed Of Ave
persons, who elect all members and
their successors, for such purposes as
It shall decide upon. The said home
nest assumes no responsibility for the
acts OF the local nests but permits the
local nests to go ii alone Mr. Hooy.
er stated that II a local nest violated
state law, II would probably have
its charter revoked by the home nest.
That the home nest assumes no gu
pervision over the methods used by
organizers or the literature they dis
tribute: that the order is not organ
lied under the laws of any state or
country, but Is a voluntary associa-
ton; that the organization purposes
II has the community entity, but when
its legal status Is questioned, IL has
only the individual entity OF It's mem
bers. That when the home nest has
furnished ritual, regalia and char
ter and has permitted the local nest
TO use the name Order Of Oowls' and
permitted II to pay per capita tax
each year. II has discharged all Its
obligations to the local nest. That
the home nest is not responsible In
any way for the doings of its organ
lzers or any local nests or represen-
tatives thereof.
The law Of the state OF Michigan
prohibits the transaction Of a life In
surance business by individuals, as
sociations. firms, or corporations, ex-
cept in the manner provided by said
law. hence, II the local nest should
vote TO furnish a specific death bene-
At, II Ii claimed by Mr.. Hoover that
II Is absolutely and entirely up to the
local nest to decide whether or not
TO give up this benefit. II 1t does not
decide to. or does not do 1t in accord
ance with the laws OF the state OF
the parties or members OF
the local nests, associating themselves
together for that purpose, are liable
TO the penalties imposed by the law.
The one important fact TO be borne
in mind by one considering member
ship in any local nest OF Owls, is that
the Order Of Owls does not authorize
or provide for an insurance, and can
not grant authority TO a local nest
to give insurance or any Of its bene-
Ats. and any organizer who makes the
representation that a proposed nest
can pay benefits for death, sickness or
accident without compliance with the
laws Of this state. is making a mis-
leading statement"