New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-03
GOOD FELLOWS MUST GO
AS INSURANCE HEADS
Men ChoSenfor Social, Not BuSl-
ness, Reasons Hamper Fra
ternaI Field. Says Emmett.
ARSON CAUSES HIGH RATES
More Stringent Laws Would
Deter Criminal Burning and
Reduce Cost of Fire Policies,
Declares Superintendent.

Albany. Feb. THE abandonment OF
the practice of placing in charge of the
administration of the affairs of fraternal
insurance companies persons who have
secured their prominence because thNy
are good fellows not because they are
good business mon is one Of the solu-
lions Of the weighty problems which
now confront frateynahsm' advanccd by
Superintendent Emmet OF the state IN
surancc Department
"If fratornalisn1 is 10 last as an active
agency for good IN ,re insurance world
The nccessity Of "a reform OF this hlhd
must meet with general recognition, ne
declares in Ills annual report in when ne
deals with the conflict between the So
cial and business forces within these or
ganizationS.
superintendent Emmett points out the
immensity OF the fratcrnal insurance
field stating that there are in the state
upward of five million certificates cover
inc insurance amounting 10 upward OF
$500 O,0 on IL is said that there arc over
10000 PEOPLE interested. directly or IN
directly. in the insurance which Is fut-
nishcd by the fraternal benefit societies
of the country" On the whole. the SUI
perlntendcnt takes an optimistic view OF
the fraterral insurance situation.
Fire Waste Causes High Rates
with regard to fire insurance, Superin-
tcndent Emmett attributes the present
high rates to "our national fire waste.
which. he declares is high here for three
reasons: Men Of criminal propensities
burn their property for the sake of In
surancc: there is widespread ignorance
regarding the fundamental principles OF
fire prevention. and there are still many
improvements to be made in our building
methods. He adds
The first Of these contributing causes
can be dealt with TO some extent oN the
passage of more stringent laws for tie
punishment of the crime OF arson and BY
the gradual upbUilding Of finer moral
sense in certain portions OF our Popuia-
ton. The second can. perhaps. be re
moved I'm time by making the study OF
the principles Of fire prevention and other
kindred subjects obligatory in our public
schools. The third can be met by the pas
sage Of better building laws
superintendent Emmett says If the. state
is to undertake the immediate revision OF
The present standard form of fire insur-
ance policy. as recommended by Governor
Sulzer, IL would be well that this work be
done. If possible. in conjunction with a
committee Of the National Convention OF
Insurance Commissioners He continues:
Legislation with regard 20 life insurance
should be based upon recognition thst
a tremendous housekeeping has already
been accomplished IN this field. and that
in all its larger manifestations the bnsl-
ness is now being conducted in strict ac-
cordancc with the existing law, ana oN
men who have a high sense OF their oDll-
cations as trustees Of the enormous ag-
grcgation Of capital they are handing.
Favors Compensation Law.
The enactment OF workmen's .compen-
sation law. Superintendent Emmett
thinks. will remove the principal cause Of
complaint which the public thinks ii has
against casualty companies. and which
has arisen from the methods which have
been resorted 10 AZ times in the past ~
some companies i'm effeCtng claim settle
ments.'
Superintendent Emmett recommends
the dissertation Of all existing provi-
sions relating TO suretyship from those
relating 10 casualty insurance. and the
creation of an entirely new article deal
ing with the business OF surety insurance
alone"
Superintendent Emmett briefly reviews
the provisions Of the thirty-iour bills
which have been introduced in the Legs
lature as department measures. and re-
fors to the necessity for much moro
thorough revision OF the insurance law
than seems practicable by any means
short Of a comprehensive redraftine OF
tho entire law