Evening star., 1938-04-17
INSURANCE GROUP
STUD|ESL|CENS|NG
Board of Trade Committee
:. Has Been Continuously
Active Since 1889.

- lids 0ecIl continuously
Active Since 1889.
Proper licensing and regulation Of
insurance companies and agents In
the District is one Of the important
problems now being studied by the
Insurance Committee Of the Board
Of Trade. one OF the first units set up
by the board when it was organized,
in 1889
Today the committee also is pri-
marily concerned with various phases
Of the Social Security Act-particu-
larly the unemployment insurane fea-
ture-and the securing OF a reduction
in the rates for fire insurance, which
the committee feels should be granted
because of low fire losses In the Dis
trict.
Early Work Recalled.
The committees first work many
years ago was in the direction OF OBJ
tanning more adequate insurance laws
in the District to protect residents
against fly-by-night companies and
companies with inadequate reserves.
At that time it also made surveys Of
the Fire Department and set out to
get fire insurance rates which were
commensurate with the actual fire
loss.
According to its bylaws, the COM
mittee Shall have charge OF all mat
ter pertaining to the organization,
regulation and financial responsibility
OF insurance companies and associ-
ations in the District, including fire,
life, beneficial and all other kinds
whatsoever"
In the early years, the committees
jurisdiction also covered the field now
supervised by the Public Order Com
mittee and investigated the operation
OF better system of police regula-
tions for protection of property against
loss and damage by fire so that fire
insurance rates might be reduced.
Campaign in 1898.
In 1898 the unit conducted a cam
paign against insurance companies
which were doing business in the city
without proper authorization by law
and secured prosecution of some Of
the offenders. Apparently, at that time
many people held insurance policies
with companies which did not honor
losses estimated by the committee to
total $4,000. A bill calling for strin-
gent financial regulation was prepared,
but Congress failed to pass it that
year.
Three years later. W. J. Newton,
then chairman OF the committee. re-
ported the bill drawn up jointly by
the Board Of Trade and the Wash
ington Board of Underwriters had
been enacted into law.
In 1908 the committee recommended
to the board that efforts to secure
hlgh-pressure water system for the
District be made to provide the Fire
Department with better fire-f1ghtng
facilities and thereby reduce the loss
OF property from fires and result in
decrease in insurance rates
Subsequently, the committee asked
the board to take action to obtain
more adequate protection from fires for
the suburban areas of the city along
Fourteenth street, and Connecticut and
Wisconsin avenues. 1t also asked the
District to purchase motor power en-
gines and hose carriers for the Fire
Department so that apparatus would
be able to more quickly and effectively
handle fires in the city.
Compensation Plan Pushed.
In 1921. the committees attention
was drawn to a new type of insurance
-workmens compensation. At that
time a bill was introduced requiring
employers in the District to carry
workmen's compensation insurance on
their employees. The Insurance Com
imttee opposed the measure on the
ground it would create definite hard
ship on Washington business in COM
petition with employers in Maryland
and Virginia, where the law would not
be effective. The bill was killed in
committee after extensive hearings.
In 1922, the committee assisted the
superintendent of insurance in recodi-
flying the Districts insurance laws. It
was in that year also that the activi-
ties of the Fire Department were
transferred from the jurisdiction of
the Insurance Committee to the Pub
lie Order Committee.
The unit in 1924 vigorously sup
ported the Underhill workmen's COM
pensation bill in opposition to a meas
ure introduced in the Senate on the
same subject.
During the last year the committee
has investigated the unemployment in
surance features of the social security
laws and believes the rates in future
years. unless changed. will be too high
and will produce more money than is
necessary to meet the claims. As re-
suit. the committee has recommended
to the Board of Trade that steps be
taken to keep the payments for job
less insurance at a minimum of per
cent of the pay roll.
The committee. which now is headed
by Frederick P. H. Siddons. feels, how
ever, it is little too early to decide
just what rates should be charged in
future years.
Besides Mr.. Siddons, other promi-
nent District citizens serving on the
committee are Richmond B. Keech,
vice chairman Of the Public Utilities
Commission; E. Barrett Prettyman,
former corporation counsel, and Paul
Lesh.
Order Of De Molay.