Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-07


chuSettS.
Special Dispatch to The Star
BOSTON, October 6.-The agitation
that aroused the motorists of Massa.
chusetts over the compulsory insurance
law and the subsequent resignation Of
Commissioner Wesley E. Monk, with his
plea for increased rates, is Subsiding
News of the discussion has effaced Itself
from even the innermost pages of the
Bay State newspapers.
1t was an interesting time-that few
weeks preceding the primary voting
in Massachusetts, September 18. Fol
had not this been a presidential year
with State officers to be chosen also
and candidates galore. the rates pro-
posed by former Insurance Commits
sioner Wesley E. Monk would have
gone into effect for 1929 on January
] next, many believe. Now that it is all
over it is generally agreed that Mr.
Monk was victim of political expedi-
ency, an honest, courageous public
official.
To get the perspective it is neceS-
sary to silhouette the background of
this law, the only one of its kind in the
United States. For nearly 10 years
the demand for such a law has been
before the Massachusetts, Legislature.
Attorneys for persons killed or injured
found in many cases that the motor car
was (a) mortgaged to some relative or
friend, CD the owner carried no in
Surance, (c) any other possible prop
erty was in some one elseS name and
Cd so the aggrieved person, or his
family. could not collect even an under
takers BILL
Drivers fragrant.
Things became SO fragrant when
headS of families were killed by reck-
less drivers, or permanently manned
so that wives and children sometimes
became objects of charity, that the
Legislature passed a resolve for an in
vestigation as to the possibility of legis-
lation. The former highway commits
SlonerS-now legiSlated out of existence
were ordered to make a study. They
conferred with insurance and bonding
officials, then filed report that such
law would place the control of motor
lists In the insurance companies through
SAYING who could and who might not
get policies. The report was accepted.
But the legislation came up each ses-
sion, hnally coming to showdown as
70 an insurance law or a State fund
lost. VOC
Lieut.. Gov. Alvan T. Fuller was elected
governor IN 1924. He is the distributor
IN eastern New England for Packard
cars. BUSINESS man. millionaire and
very independent, he had been hearing
OF THESE cases Of killed and manned due
10 personal compensation bills filed in
the Legislature. He objected to Iegis-
Iatlon put through by log-rolling or for
some one with pull So he enunciated
IN his inaugural to the 1925 Legislature
that it should pass a compulsory inslIr-
ance automobile law. That seemed q
mandate. After long fight a bill was
passed In the closing days of the Legis-
laLure and signed by Gov Fuller to take
erect January /, 1927. That meant
GIVING the insurance commissioner more
IMAM gear to work out its problems
There was little heard of the law for
ABOUT year. Then in the Summer of
1875 the commissioner announced that
ne was preparing to get rates ready for
the new law. These had to be an
nounced by September each year.
Ratins Bureau Started.
There were conferences at the State
mouse with insurance men. A rating
bureau had been established in one nf
the insurance Offices. State representa-
ives, and sometimes the commissioner.
SAT IN at the conferences. Some of the
automoolle organization executives won
oered when there would be any confer
ence with them. There never was.
Finally, in August, 1926, Commissioner
MONK announced a hearing, to which
various people went. Just before the
talking started he said in an offhand
way that the rates were all set, and dis
cuSsion would not change them, prob
aoly: This was wet blanket for auto
mobile men,
However, when he announced the
rates it was found that he had forced
the insurance companies to chop down
their premiums between 20 and Is per
cent from what they had been charging
In the Boston congested area, and about
5 per cent in the country places. Motor
lists then had to go through a bedlam
Tor registrations unless they turned
things over to their regular brokers.
Some did not register their cars until
Spring. The law got its start and no
one could register car without policy.
Then those interested began to watch
its operations.
After few months one of the first
things to come up was the cancellation
OF policies by insurance companies.
That meant person could not continue
on the road. Right here the value of
former criticism of insurance by State
law had its turn, for the Legislature met
this situation with an appeal board
composing the insurance commissioner.
the motor vehicle register and one of
the State assistant attorneys general.
In majority Of the cases the insurance
companies were ordered to reinstate the
policies. On more than one occasion
members of the board used some sharp
language, criticiZing the actions of GER
tain insurance officials. And the Su-
preme Court decided that Commissioner
Monks rates were not unjust and I'M
reasonable following suit filed by truck
and taxicab men.
Time came for hearing on the rates
Tor 1928. This was held in August,
1927. At that hearing some members
of the Legislature criticized the coming
plan, claiming apparent unjust classifi-
cations. Commissioner Monk decided
that the law had not been in effect
long enough to give complete data, so
the old rates went through for 1928.
Protest New Rates.
This year the first rumblings began
TO be heard in Midsummer. At con-
terence of insurance men statements
were made that many fraudulent claims
were being paid rather than fight them
IN court. Then there came the brief
statement that Commissioner Monk was
gong over insurance statistics to fix the
1929 rates and that they probably would
De higher than in 1928 Just about
Then the seekers for political honors
were getting their campaigns under
way: Lieut.. Gov. Frank A. Allen had
as MS primary opponent Frank A.
Goodwin, ex-motor vehicle registrar re-
moved for talking back to Gov. Fuller
ana openly criticizing him. There were
SIX or seven candidates for lieutenant
governor. Joseph E. Warner, former
Speaker of the House. defeated in a
fight for lieutenant governor by Gov.
Fuller eight years ago and now filling
the uneXpired term of Attorney General
Reading, who resigned after a legisla-
tive inquiry, was out to capture the
nomination for that Office Down the