Evening star., 1928-01-29
TREADWAY OFFERS
AUTO SURETY BILL
Measure Is Based on Law
Now Effective in MaSSa-
ChuSettS.

Under the automobile liability, o
compulsory insurance bill. introduced II
the House by Representative Treadway
Republican. of Massachusetts,, which Ill
based on the law that has heen III sue
cessf,,l operation III Massachusetts, dur'
ing the past year. the District automo
bile owner would have a choice oil three
alternatives:
He could take out liability insurance
with an authorized insurance company
He could take out a surely eond paya'
bic to the District
He could deposit with the S'lpcrln.
tendent of licenses $4,000 i'll cash OF
securities.
Differs From Jones Bill.
The Treadway bill differs from thal
introduced in the Senate cy Seha'oi
Homes. Republican. of washington III
that 1t proyidss that the Liability lns,r-
nnce or surety bond be purchased from
private companies. while the Jones piii
would create an insurance ftnd 20 oe
administered by the Federal Employees
Compensation Commission.
While judgments would be remoereo
hv the courts, as AT present. the Tread
way bill provides limitations Under the
compulsory insurance plan-S5.0o0 for
each death or injury and Slo,ooo ior
env accident, regardless of how many
persons are injured or killed. II the
Judgment of the court is in excess OF
these figures the plaintiff must make
up the difference in any way he can.
Representative Treadway has been in
conference with the insurance COM
missioner about the provisions OF ms
bill during the week.
Emphasizing that automobile liaoli-
ity insurance legislation is being con-
sidere6 IN ~ States. seven Or eight OF
which have already enacted laws, kep-
resentative Treadway is urging an early
hearing on his bill before the. House
District committee. Representative IN
Gerhill. Republican, of Massachusetts.
is chairman OF the subcommittee on IN
surance and banking of the District
committee, to which this bill will be
referred.
Provisions Of Bill.
The principal provisions OF the Tread
way bill are as follows:
Section ! requires that security for
the payment of compensation Tor per-
sonal injuries and death caused by the
operation Of motor vehicles in the Dis
trict, to be furnished as q condition to
registration. 1t eXenpts ircm this Pro-
vision cars owned by the United States,
any State, the District OF Columbia.
any foreign country or its diplomatic or
consular officers. It also stipulates that
under rules and regulations promul-
gated by the superintendent OF licenses
with the approval of the Commission
ers, a motor vehicle or trailer not other
wise subject TO registration N the Dis
trict, which Is owned by a person en-
eaged in business In the Dist let. or
regularly employed In the District, may
be registered here. II, while not so reg
istered, bodily INJURY or death is caused.
the owner or operator Is restricted to
the single defense that at the time of
the accident, the car was being oPer-
ated with due care.
Action to recover for such injury or
death may be brought in court through
service on the superintendent of licenses
who shall be deemed to have been ap-
pointed agent for the owner or operator
The superintendent of licenses r,ust
find out the address o. the defendant
and send him a copy Of the process by
registered mail
Section of the bill covers certif-
Gates of security. Such certificates of
an insurance company or of a surety
company must be III the form rre-
scribed by the Superintendent. Of IL
censes. II must state the rate at which
and the classification under which the
motor vehicle liability bond or policy
are issued and the amount Of premium
thereon An insurance or surety COM
pany issuing a form of certificate other
than that approved by the -uperintend-
dent Of insurance Is punishable by q
fine Of from $50 TO $500.
Penalties Provided.
Whoever issues, CT alters without au-
thor1ty. or forges any certificate or
knowing that the policy or bond pre-
required has not in fact been issued
or executed. or Is not In force, or tnat
the cash or securities have not been de-
posted. or who. cognizaflt OF these facts,
attempts 10 file such certificate with the
superintendent Of licenses, shall be pun
tsnable by fine Of up To $1,000, or i'm
prtSoninent for up 10 one year. Or both.
The superintendent Of licenses is re-
cuired TO furnish copy Of mis- record
Of each registration TO the company
that is signatory 10 the certificate ac-
cnfnpanying the application for such
Section of the Treadway Tin coy-
ers security by owners of more than
one vehicle. such as a manufacturer or
dealer. In lieu of taking out a single
policy or policy covering more than
one motor vehicle or trailer. ssich man.
u.acturer or dealer may furnish a la
biltty bond covering all the cars or trail
eTs owned by him.
Section covers additional security
when action is brought. The tegisirant
OF a motor vehicle or trailer Who de-
posts cash or securities or the persofi
responsible for the operation OF the reg
sol
the service Of any process or SGmn1ons
bringing action In which the Judgment
is secured by such deposit. give written
notice To the superintendent Of licenses
of the beginning Of such action. The
superintendent OF licenses may there
upon require a liability bond or policy
or may require the deposit Of fErther
cssh or security az additional security
for the payment OF judgments In this
action.
Deposits Covered.
Section refers 70 deposits in LIEU
of bond or policy. The applicant for
registration may, instead Of procuring
q motor vehicle liability bond or policy,
deposit with the superintendent Of Ii
cerlses, cash In The amount o. s., 600, Gr
bJDcs. stocks or other evidet.ce Of in
cestsdness satisfactory To the tuperin-
tendeDt NJ q market value of not Jess
Than 5000, as security for the payment
81 all judgments rendered against such
applicant tor bodily injuries. Including
death.
The deposi'Or shall be entitled 10 the
Interest accruinR on his cash deposit
anc 70 the income payable Oh the
securities deposited and may. from time
b time. With the consent Of the
superintendent VI licenses. change such
securities.
On presentation by a qualified officer
Of an execution lssaled On any Judgment