Omaha daily bee., 1915-02-15
Attorney Generals Opinion
On Mutual Insurance Companies


YORK. Neb. Feb ITO the Baitor Of
The Bee IN The Bee OF tho 18th instant
is published what purports 70 be an
opinion Of the attorney general that ell
mutual fire and lighting companies IN
Nebraska are in legal effect unincorpo-
rated and merely exaggerated partner
ships, because their articles OF incorpora-
ton are not filed in the office OF the
secretary of state.
Tho attorney generals opinion, az re-
ported in the press was manifestly not
carefully prepared andN will not bear
analysis. He evidently meant his opinion
to apply 20 Assessment association"
for not one OF tho seventy companies In
Guided in his condemnation is mutual"
company, "a the term IL defined By the
present statute.
The companies affected include all the
county and state farmers Insurance. as
sociations, having more than two hundred
seventy-fiye millions OF dollars Cs27sO0l-
00D at rick. and unless II be correct. the
attorney general should at once publicly
repudiatc IL
II he IL right, II IS singular, but true,
that not one % these companies II legally
orsanizcd. although most OF them were
Incorporated under the direction OF able
and experienced Nebraska lawyers, act
ing not at all in collision. but irdepend-
emily and at different times and places
n he r. right, all the attorneys general
state auditors and insurance commission
ers who have preceded him in the official
service of the state have been seriously
DELINQUENT in the performance OF their
official duties. for certificates have been
issred annually TO ali these companies
from the state insurance department
rcciting that they were conducting their
business IN accord with the law. twenty
four years IL a long time for such a vital
defect In so vast and important busi-
ness 70 escape the scrutiny OF all these
capable lawyers and states officers.
To come biuntly TO the point Chapter
xxxII of the session laws Of Nebraska
for 1871, under which these companies
were originally organised, does not re-
CURE that their articles OF incorporation
be flied in tho office Of the secretary OF
state. and the method OF Incorporation
provided by that statute II mansfestiy
exclusive and complete within itself. and
there Il no ground for any opinion to the
contrary.
But apart from the accuracy, or mac
curacy. Of this opinion Of the attorney
general, the manner OF It's pronunciation
and the sole use to which It has 20 far
been put. are certainly deplorable. No
notice of It ever came to any OF the
companies included IN its sweeping con-
demnation, and the CONSERVATION and dis
may OF the hundreds Of thousands OF
farmers In Nebraska, who first learned
of It in the public press can be better
imagined than described. An opinion
coming from such lofty official source
properly carries great weight. and the
responsibility Of The attorney general IL
accordingly very great. both respecting
the correctness OF his opinion and the
use made OF H.
These assessment associations are not
Essentially evil and they are OF very
great magnitude, They have been trans
acting business for many years under
licenses ISSUED to them annually by the
state OF NebraEka. The Farmers Insur-
ance company OF York county Ii ono OF
the companies mentioned. II is small
and compactly organised ana transacts