Evening star., 1927-09-20
INSURANCE CODE
PLANS DISCUSSED
D. C. Companies Seen 0p'
Grating Under Combination
System Unauthorized.

District OF Columbia insurance COM
panies are operating under a system
of combination which is unauthorlzed
by law ard has been declared illegal
in some OF the States, ii. L. Jansen,
general counsel of the Federation OF
Mutual Fire Insurance Companies, de-
clared today The federation is holding
Is eleventh annual meeting at the May
flower Hotel in conjunction with the
thirty second annual convention OF the
National Association of Mutual lnsur;
ancee Companies.
Thomas NJ. Baldwin, ir.. suporintend-
ent of insurance of the District, ap'
pealed to the federation to urge its
representatives in Congress to support
the bill to be introduced in the next
session to give the District a new in,
Surance code. The measure would le-
CaliZe combinations of insurance COM
panies to- fix rates and would put those
rates under supervision of Congress.
Proposed New Code.
Discussing the proposed new code,
Mr.. Janisch declared that the mutual
companies are not now operating in
conjunction with the stock companies
in the District. The measure, he said,
would allow them to act with the stock
companies IN SetllIlS rates. I-SSaiiHcu
combination and public regulation of
rates. be said, has operated in other
States to prevent gOuging by COM
panies and to protect the public
against fiy-by-night organizations.
In about 80 States, he said, Compen-
sation companies are combined under
public regulation, and fire insurance
companies in about 20 States. The
proposed new District of Columbia
law has been recommended by the
Convention OF Insurance Commission
ers. he declared.
Only three companies are seeking to
insure aviators and property from
aviation hazards. Prof. Stephen b.
Sweeney of the University of Penn
sylvania told the convention. The
great losses from aviation forced all
but one company out or the business
back in, 1929, he declared, and they
are slowing in coming back.
- Greater Scale Seen.
Prof. Sweeney said the activity of
the Department of Commerce was do.
ing much to make aviation safer by
eliminating gypsy pilots, and express.
ed the belief that eventually the in
surance companies would be able to
go into aviation insurance on greater
scale as a result or TINS work. Inc
Dole race, he said, would have been
even more disastrous had it not been
for the department. Insurance com.
panies lost little on that race, how
ever, because of clause in their poll
cies which, provides that the policy
shall not be paid if land planes go
more than a mile from shore or if sea-
planes go more than five miles inland.
The human element was declared
the most important factor in fire In
surance by Walter c. Hill of Atlanta,
Ca, in talk on moral hazards. All
fires start through the human agency,
he said, and companies really insure
the person with reference to his prop
erty.
one of%the greatest collections OF
sun spots ever witnessed. causing the
lessening of solar radiation, was re-
sponsible for the recent Mexican hur-
ricane and the storm in japan, Her.
bert Browne; ocean meteorologist, told
the Cyclone division" yesterday. At
the same time he sounded warn
ing that the same sun spots are
going to be the cause of other
storms in the near future and at
tributed to them the recent hot wave
and n gold wave. he declared due in
a few'days. 'Tdllfng fr0sts and freez-