Evening star., 1928-10-28
BAY STATE VEXED
BY INSURANCE LAW
Suggestion of Politics Com
pIicateS MuddIe of CompuI-
sorry Policies.
Special Dispatch to The star.

Special Dispatch to The star.
BOSTON. October 27.--Gradually the
muddle centering around the Massa-
chusetts compulsory insurance law is
widening like the circles in a lake
after some one has heaved in big
rock, and again there is a suggestion
of politics over the latest row, whose
serious side may be outlined through
the following questions some motorists
are asking:
Will the $4,000 motorists insured in
the Car Owners Mutual Insurance Co.
be forced within five days to get new
policies in other companies or get on
the road?
VIII the State officials try to arrange
some way to prevent this big army
from being tossed aside that way By
giving it a few days leeway?
Will those against whom damage
suits have been brought be forced to
defend them through their own at
torneys. and later settle the claims out
of their own funds instead of having
1t done by the company?
Is there another feud starting be-
tween ex-Comrnissioner Wesley E.
Monk. who resigned over the row about
increased rates, and Gov. Alvan T..
Fuller, leader of the fight against the
rates becoming effective?
Are some of the big insurance COM
panies trying to maneuver smaller nu-
tual companies out of business?
The news broke in the papers
couple of days ago that the attorney
generals Office was going to seek an
Injunction against the Car Owners
Mutual Insurance Co. on the allega-
ton of Acting Insurance Commissioner
Linnel that the company was insolvent.
Then the fire began to blaze bit when
reporters seeking information at the
statehouse were told that at the
governors office it was something for
the insurance department to clear up,
as 1t was supposed to keep track of
the companies.
IF any company unworthy of doing
business in Massachusetts, is operating
here 1t received a certificate that it
was worthy from ex-Commissioner
Monk, and the new commissioner will
have to solve the problems left behind
by the old commissioner" was a state
ment made by Herman Macdonald,
Gov. Fuller's secretary.
Reply of Monk.
"The governor had better not crowd
me too far or / may say something.
I can say plenty if 1 want to- was the
preface to a reply shot back by Mr..
Monk.
Amplifying it he went on:
The governor can say 1 did not do
my duty, but know whether 1 did or
not. The reason the mutual company
was up against it was solely because
OF insufficient revenue. The only way
out Of this muddle is to have an ad-
vance IN rates to the level I suggested
before leaving Office.
mo self-respecting person would
hold that job down the way they want
ed me to hold it. AS far back as last
August I instructed the Car Owners
Mutual Co. not to write any more poll
cieS for 1929.
i told the officers that there would
be deficit. guess some one in the
governors office did not want the story
made public on account of politics. be-
cause his Office was notified three
months ago that three of the mutual
companies were on the ragged edge
then" M -
Judge Pierce Of the Supreme Court
has been asked to set a date for a
hearing on the complaint of the in
Eurance commissioner to the attorney
general seeking the Injunction. The
claim Is made that the liabilities reach
more than million and the assets are
more than half that sum.
President Edward T. Fearing of the
company, on the other hand. saws.
I'VE are ready to submit to any further
investigation by competent and inn
partial committee and can prove be-
yond any possible doubt that the Car
Owners Mutual Insurance Co. is prop
erly solvent and entitled to the sup
port OF the public and the protection
OF the State"
Vice President Oliver Roberts calls
attention to the fact that. while the
Massachusetts, laws call for an audit of
an insurance company once every three
years, and at times oftener, this COM
pany has been audited four times in
tnree years, and the first three were
Iouno all right, while he has not seen
the last one. The auditors were q
competent firm, he added.
Ask Increased Rates.
With ex-CommiSsioner Monk COMING
out again at this time advocating the
need OF increased rates while the mem
bers Of the Supreme Court are ponder
ing over the law points, and the abb
sence OF Gov. Fullers personally paid
attorney" Elijah Adlow, appearing on
behalf Of the people," assisting one
OF the assistant attorney generals: the
statement about the frequent audits
and the intimation of persecution" of
small companies, no one will be sur
prised If the insurance companies are
allowed to get what they sought, and
ever Wnlch there was SO much sup
posed turmoil.
Incidentally all the blanks for regis
tration plates for 1929 are being held
up by Motor Vehicle Registrar George
A. Parker because he cannot fill in the
insurance figures. So he announces
tnat blanks for the first 10000 num-
bers only will be sent out. and that
all others will have to call for their
plates. In that case with the delav
now there will be big jam getting the
1923 ones, and lot of more lamenting
on the part of the motorists.