Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-03-21

III Senate Provides Control
D Beneficial. Societies by In
surance Department
koTECTIoN TO MEMBERS
Nommissioner j. Denny ONeil Says
& Law Would Safeguard Their
interests
From a stor Correspondent

4H'ey HARRISBURG, March 81.
w bill to place all fratefnal societies un
the control OF the state Insurance De
ffment was introduced in the Senate to-
~ ~ Senator william r. Crow of Fay
l1s, at the request Of Insurance Com
< Missioner J. Denny O'Neil.
4 The measure II the second of the series
<;of Insurance bills which O'Neil will have
IDresented to the Legislature. o'Neil today
Z '1u6ued Q statement in which he explained
r, o,s provisions of the bill in full. His state
INT follows:
& 1.-THE act defining fraternsl benefit So
ofoties is designed to provide specific
method for the operation OF societies work
the lodge system and fixing a
p4an of operation SO that all such societies
can absolutely carry out every contract
Nh This act was drafted by a committee Of
\ ne National Convention of Insurance Com
hmiesioners in conjunction with committee
4 ~ the National Fraternal Congress of the
United States, OF which association virtu-
ally every recognized fraternal society Is
- member II has also been approved and
s srooommended for adoption in this state by
1he representative fraternal societies OF
tennsylvania.
i ssrbe act in exactly the form as presented
- now n law III tHiTtN-ioui s'No'NS' 'hN'NN''S
New York. Massachusetts, Connecticut and
Virtually all Of the eastern states except
Pennsylvania.
"This at requires all fraternal organiza-
lions to be under the direct supervision OF
the Insurance Department, provides COM
prohensive method for organizing new socie-
Ties, and requires that all societies shall
nFadually adjust their rates on a table OF
mortality which has been adopted by the
National Fraternal Congress itself. This
n not required to be done at once. but each
society is given period OF time within
which to accomplish this. certain per-
centage Of Improvement being required each
year until solvency Is obtained.
\ ..rhe present laws applicable to fraternal
nocieties are wholly Inadequate TO cover the
n1tuation today and give the Insurance De-
aartment no supervision whatever over such
6ocieties Any Ave persons, no matter how
Irresponsible, can apply to the court and
obtain q charter which will enable them TO
operate without adequate protection for
and without any supervision
Whatever by the department, and irresponsi
Bile societies from other States can, by
merely applying for registration. transact
business in the State without any super
vision
q .'Most Of the insurance trouble at the
present time is due to the fact that such
0ocieties have been operating without being
subject TO any supervision, and hundreds
Or thousands of dollars have been lost TO
policy holders through mismanagement. In
ne majority of cases the only resource
the families of the deceased members of
these organizationS have is the amount Of
benefts agreed to be paid them under their
policies. and IL the society is not solvent.
these families are left without any support
whatever.
"It Ia manifestly the duty OF the state
10 provide such laws as will adequately pro-
'fect the many thousands of people who
becoms members of these organizations"