Evening star., 1934-03-26
.2D|STR|CT BILLS
PASSEDBY HOUSE
IN TARIFF DEBATE
EIectrifying of Steam Rail-
roads in Washington
Given Approval.
MORTGAGE EXCHANGE
MEASURE ALSO 0. KID
Hearings Are Opened Before Sub.
committee on New Insur-
ance Code.

The House interrupted debate on
the tariff bill today to pass two Dis
trict measures, this being District day
in the House.
The House first passed the Senate
bill authorizing steam railroads now
operating here to electrify that por-
ton Of their lines within the District.
This measure applies particularly to
the Pennsylvania railroad.
The other bill passed authorized
building and loan associations to
exchange mortgages held by them for
bonds of the Home Owners Loan
Corporation which, in effect, carry
a guarantee by the Federal Govern
ment of both principle and interest
Representative Mapes, Republican,
CT Michigan, objected TO considera-
ton of the electrifcation legislation.
saying it should have been referred
to the Interstate Commerce Commits
S4O4 anu tlldG SdCl4 pI OpOSlIlOllo SI4Ou4u
be passed upon by responsible
agency.
Refers to Loans.
Majority Leader Byrns pointed out
that the Public Works AdminiStra-
tion had allocated loans of more than
100000. 900 for electrifcation of this
railroad He said it was reasonable
to assume that the Government would
not have done so without any inyesti-
cation to determine the justification
for this project.
When Mapes continued his objec-
ton that the bill should not be passed
without Interstate Commerce Com
mission approval, Byrns contended
that the effect would be to deprive
large number of men of employ
ment for several weeks.
The insurance subcommittee of the
House District Committee, Of which
Representative Harlan (Democrat) of
Ohio is chairman, opened hearing
meanwhile on the bill setting up a
new insurance code for the District.
Among the witnesses heard were
John B. Payne, a certified public ac-
countant, formerly with the Bureau
of Internal Revenue. who as a mem
Der of the United States Bureau of
Efficiency made an intensive study Of
the insurance business in the District
of Columbia and was subsequently ap-
pointed by the District Commissioners
to help draft the new insurance code.
He later became deputy superintend-
ent of insurance.
Others who testified were Elwood
Seal, assistant corporation counsel,
and j. A. Marshall. superintendent
of insurance, who promised to present
in writing amendments to the bill
recommended by the District officials.
Amendments Presented.
Howard w. Casey represented the
Association of Life Insurance Presi-
dents of New York and the Acacia
(Masonic) Insurance Co. of the Dis
trict. He presented a number Of
amendments recommended by both of
these clients and said they are very
anxious to get up to date life in
surance codes and would support this
legislation with the proposed amend
ment.
Mr. Payne explained the proposed
code as the first complete code for
government of all branches of the
insurance business in the District of
Columbia except fraternal. He pointed
out that it establishes a proper rela-
tionship between insurance laws in
the District and other States in the
Union thus making it easier for in
surance companies to transact busi-
ness.
Mr.. Payne told the subcommittee
and the large attendance of represen-
tativeS of the leading insurance COM
panies of the United States that the
present District law means almost
nothing, from an administration or
licensing standpoint. The present
insurance department. he said, is en-
tirely inadequate, understaffed and
lacks sufficient authority. Hawaii and
Puerto Rico. he stressed, are much
better protected than the District and
by comparison the Hawaiian code is
Utopian.
Fees Are Declared Too High.
The license fees in the District,
Mr. Payne said, are too high and it
is impossible to check up on licensed
solicitors. In other words, the honest
insurance agent is overcharged and
the fraudulent solicitor escapes.
There is insufficient provision at
present, he pointed out, for court dis
position and liquidation of insolvent
companies and he cited, as an ex-
ample, the failure in recent years Of
several companies which illustrated
the weakness in the present set-up.
Tax collection regulations are SO
complicated, said Mr.. Payne, that
they have resulted in considerable
loss in revenue to the District.