Employed Officers' Alliance, Y. M. C. A. of North America__. John C. Ketcham, Commissioner, Department of Insurance, State of Raymond S. Mauk, Fire Insurance Commissioner, Austin, Tex--- Charles R. Howe, chairman Arizona Corporation Commission, Phoe- F. H. Shenberger Agency, Portsmouth, Ohio_. Walter L. Mitchell, Portsmouth, Ohio__. McClurg Insurance Agency, Portsmouth, Ohio_-. Morgan Insurance Agency, Portsmouth, Ohio--. The George E. Kricker Co., Portsmouth, Ohio‒‒‒‒ The Johnson Insurance Agency, Portsmouth, Ohio___ The Hutchins & Hamm Co., agents, Portsmouth, Ohio_. Rickey Realty Co., Portsmouth, Ohio--- Hugh O. Caughey, secretary, West Unity, Ohio--- Long, Boynton & Regenold, Toledo, Ohio--- J. S. Hilbert, East Liverpool, Ohio--- Fred P. Thomas Insurance Agency, Cleveland, Ohio__ The Merrill Dodge & Jackson Co., Toledo, Ohio---- Carl J. Florian, the Florian Laux Co., Toledo, Ohio-- Board of directors, Lafayette Chamber of Commerce, Lafayette, La__ R. P. Reutler, secretary, Sandusky Insurance Board, Sandusky, C. W. Davis, president, The Albert Rees Davis Co., Cleveland, Ohio_ Jos. A. Kysela, president, The Jos. A. Kysela Co., Cleveland, Ohio__ L. S. Hillebrand, treasurer, Leo S. Hillebrand Co., Toledo, Ohio--- R. S. Douglas, assistant counsel, Cleveland Trust Co., Cleveland, Robert L. Bowen, superintendent of insurance, Columbus, Ohio___ 137, 138 Frank Yetka, commissioner of insurance, St. Paul, Minn_- Garfield W. Brown, commissioner of insurance, St. Paul, Minn_-_- H. A. Mathews, vice president, Irving Trust Co., New York_-- John S. Whittemore, secretary-treasurer, Commercial Travelers Acci- dent Association, Boston, Mass--- S. C. Mead, secretary, The Merchants' Association of New York____ W. A. Kenyon, president of Government Group Insurance Confer- H. R. Kurrie, Chicago, Indianapolis & Louisville Railway, Chicago, Joseph J. Glatzmayer, executive vice president, Harbor Carriers of Moses G. Hubbard, Jr., Fuller, Brown, Hubbard & Felt, Utica, N. Y_ Sonnenschein, Berkson, Lautman, Levinson & Morse, Chicago, Ill__ Val Nolan, United States attorney, Department of Justice, Southern REGULATING THE USE OF THE MAILS WITH RESPECT TO INSURANCE CONTRACTS WEDNESDAY, MARCH 13, 1935 HOUSE OF REPRESENTATIVES, COMMITTEE ON THE POST OFFICE AND POST ROADS, Washington, D. C. The subcommittee this day met at 10:40 a. m., Hon. William A. Ashbrook presiding, for consideration of H. R. 6452, which reads as follows: [H. R. 6452, 74th Cong., 1st sess.] A BILL Making it unlawful to use the mails to solicit or effect insurance or collect and transmit insurance premiums in any State without complying with the insurance laws thereof Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter it shall be unlawful for any individual, partnership, association, or corporation to use the mails of the United States for the purpose of, directly or indirectly, soliciting, negotiating, or effecting insurance, indemnity, fidelity, or surety contracts, or for the purpose of transmitting policies, certificates, or other evidences of such insurance transactions, or for the purpose of collecting premiums on such contracts (except renewal premiums on life-insurance or accident and health contracts), or to report any such transaction, unless such individual, partnership, association, or corporation shall first comply with the insurance laws of the respective States, Territories, or the District of Columbia where such contracts are solicited, negotiated, or effected, and the laws of the respective States, Territories, or the District of Columbia, where the property insured or the subject matter of the insurance is located. This section shall not apply to newspapers, magazines, or periodicals of general circulation or to contracts or reinsurance. SEC. 2. Whoever shall willfully violate any of the provisions of this Act shall upon conviction be fined not more than $5,000 or imprisoned not more than two years, or both; and any officer, director, employee, or agent of any person, partnership, corporation, association, or other similar organization who knowingly participates in any such violation shall be punished by a like fine or imprisonment, or both. SEC. 3. The Department of Justice shall enforce the provisions of this Act. Mr. ASHBROOK. Before we proceed it might be well if those who intend to speak would give their names and whom they represent to the reporter. (The following gentlemen responded: Mr. John L. Milne, actuary of the Presbyterian Minister's Fund, Philadelphia; Mr. Bradford Brooks Locke, Church Pension Fund, Church Life Insurance Corporation, Church Properties Fire Insurance Corporation; Mr. Calvin W. Hassell, Post Office Department; Mr. R. V. Fletcher, vice president and general counsel of the Association of American Railroads; Mr. J. A. Marshall, superintendent of insurance of the District of Columbia; Mr. R. B. Robbins, Teachers' Insurance and Annuity Association.) 1 STATEMENT OF R. V. FLETCHER, VICE PRESIDENT AND GENERAL COUNSEL OF THE ASSOCIATION OF AMERICAN RAILROADS Mr. ASHBROOK. Judge Fletcher has another important appointment, and therefore we will give him an opportunity to be heard first. Mr. FLETCHER. My name is R. V. Fletcher; I am a lawyer, and vice president and general counsel of the Association of American Railroads, Transportation Building, Washington, D. C. I will take just a few minutes of your time. As I read and understand the pending bill, its purpose is to reach companies engaged in the business of writing insurance in a commercial way and for profit, and who have not complied with the laws of the several States. It so happens that many of the common carriers and also the Railway Express Agency, which is owned by the railroads of the United States, have a number of so-called "relief associations connected with their pension departments, taking somewhat various forms, but having for their purpose the welfare of the employees through the extension of relief payments of amounts upon death which can be used for burial expenses and for the support of the families of the employees. This takes various forms, Mr. Chairman, but, generally speaking, the object is to take care of persons who are sick and who have died or who would be made better by having benefits paid to their families after death, and sometimes annuities during life. Some of these men are now in the employ of the common carriers. Some of them occupy a pension or a retired status and they go, of course, after their active railroad work is over to various parts of the country and live where they can do so more comfortably and more economically. These departments are all on a voluntary basis. In some cases they are maintained by employees and contributions from employers. It is not my idea that it is the purpose of the pending bill to affect that particular class of benefit or providence associations. With that thought in mind I venture to offer a suggestion that this bill might very well be amended by making an additional exception so that the act will not apply to common carriers having relief departments, pension or annuity plans, or to the other organizations or associations for the benefit of their employees or former employees, or to associations of such common carriers administering such departments, plans, or organizations. I think that an amendment intended to accomplish the same end has been suggested to the author of the bill by some of my colleagues connected with the Express Agency. Either of those amendments would, I think, accomplish the purpose we have in mind, and I commend them to your serious consideration. I shall file a statement showing exactly the language we have in mind. It is in the form of a letter addressed to the Chairman of the Committee on Post Offices and Post Roads, which reads as follows: |