Evening star., 1922-03-22
DISTRICT ON EVE OF PROSPERITY,
SPEAKERS TELL TRADE BOARD
Representative Focht Looks for Tide of
Business Activity-Representative Ed
monds Approves New Insurance Law.

Insurance Law Report.
Mr.. Lea's report on the new in
surance law read, in part. as follows:
Eight firms in this country place
practically all of the Insurance and
place it abroad or with foreign COM
panies for the reason that the for
eign companies, owing to lack of
legislative restrictions and lower
taxation, can quote lower rate. and
thus render 1t impossible for the
American companies to compete,
which is a distinct disadvantage to
American commerce, because price
competition In international COM
merce is SO close that frequently the
diference in the cost of insurance
premium determines the country in
which the order is to be given. There
is no International agreement on
rates. such as there Is on fire insur-
ance In this country. which. by con-
wide organization, is enabled to
charge the proper rate to cover the
hazard which consequently makes
lxed rate. Such Is not the case in
marine insurance, which Is very fluid
and Is subject only to the conditions
and demands in the VARIOUS coun-
tries. thus practically putting it in
the hands of the brokers. instead of
the companies. This law removes
these restrictions and lowers the tax
alton so as to enable the companies
in the United States to compete for
their share of the business.
Covered by Foreign Insurance.
The United States government,
both by expenditure of money and by
legislation, has endeavored to create
neet of vessels to carry our cargoes
abroad and to compete for the worlds
trade. Over these vessels flies the
htrf I,nl III
rendering 1t useless. Is the cover Of
foreign insurance, because our lead
ing competitors have for years used
marine insurance to pre- empt leading
INES or trade: nations that are strong
in marine insurance facilities may
deny the service altogether, or give
IL only under unfavorable conditions
10 the citizens of other nations which
40 not possess adequate facilities of
their own. as possession of sufficient
uuIiuerWrtlng capacity, free from
! foreign control. is essential to the
proper protection of commercial
secrets from our trade competitors.
fofelgn underwriters. when insuring
american carSoes. necessarily learn
the facts concerning the carriers
used. the consignees. methods of
packing and handling financial affilia-
tions of the consignors, costs of pro
auction and the conditions and price
OF sales; therefore, there is pressing
need for ample and independent
american marine insurance and we
TAKE IL for granted that no American
citizen wishes to see such a deplora ble
state of affairs to continue.
Interest to the District.
Having set forth the national and
International aspects of this bill. I de-
sire briefly to touch upon its interest to
the District of Columbia. although it is
no
ure. one should not lose sigh, of the fac.
that various sections of the bill are de-
signed to benefit the District of Column
Dla IN very important particulars Sec
uon s provides for the creation of cor
poTatons Tor the sole purpose of trans
acting a reinsurance business, and there
seems to be no reason why purely re-
insurance companies cannot adyanta-
geously organize in the District Incl
| dentally would like to state that move
ments are already on foot to accom-
plish this purpose and organizations
possessing millions of dollars are con-
sidering taking advantage of the law
ana establishing companies in the Dis
trict at the present time. Section q
provides for the organization within the
Dlstrlct OF corporations engaged ex-
ciuslVely in the writing Of insurance in
foreign countries, the capital stock of
which corporations may be owned by
american companies engaged in the
same kind Of insurance.
Will Foster Success,
other sections Of the bill will serve
very materially in fostering the sue
cess of these two types of companies
as well as other companies which
may decide to organize within the
District; moreover. the American
Marine Insurance Syndicates already
have their domiciles in the District
and one of the essential purposes of
the entire bill is to bring about a
| legislative situation under which
| these syndicates may develop and
thrive SO that it will no longer be
| necessary to send nearly half a bill
| lion dollars of premiums abroad, car
rying with it. vital trade secrets for
the information of our commercial
rivals in the competition for the trade
of the world.
Bright Prospects Here.
There is no reason why. with this
favorable legislation. Washington
should not become one of the coun-
try's largest insurance centers, and as
! We have the finest material for the
selection Of efficient clerical forces of
any city in the country the opening OF
offices for those desiring to take ad-
| vantage. of this bill will afford en-
ployment to many people,"
On motion of Edwin c. Brandenburg;
Judge Charles S. Bundy, one of the
pioneer members of the Board of
| Trade. was elected an honorary men,
| ber. The motion was adopted amid
generous applause. Judge Bundy, al
l.though in his ninety-first year, took
the floor and. in voice that indica ted
His appreciation, thanked his COL
workers in the organization for the
honor bestowed upon him.
President Thomas Bradley then ad-
journed the meeting to the ballroom,