its membership includes all types of carricrs-stock and mutual companies, multiple line casualty companies, life companies with accident and health departments, accident insurance only companies, fraternals, and commercial traveling men's associations. These companies write all lines of personal accident and health insurance. Its membership is composed of the following companies: American Casualty Co., Reading; American Income Insurance Co., Indianapolis; American Life Insurance Co., Denver; American Savings Life Insurance Co., Kansas City; American Travelers Association, Indianapolis; Anchor Casualty Co., St. Paul; A. O. U. W. Grand Lodge, Fargo; Bankers H. & A. Co., Houston; Bankers Indemnity Insurance Co., Newark; Boston Casualty Co., Boston; Business Men's Assurance Co., Kansas City; Central Assurance Co., Columbus; Colorado Life Co., Denver; Commercial Travelers Mutual Accident Association, Utica; Craftsman Insurance Co., Springfield; Empire L. & A. Insurance Co., Indianapolis; Employers Reinsurance Corporation, Kansas City; Federal Casualty Co., Milwaukee; Federal L. & C. Co., Detroit; Federal Life Insurance Co., Chicago; Fidelity H. & A. Co., Benton Harbor; First National Casualty Co., Fond du Lac; First Reinsurance Co., Hartford; Globe Casualty Co., Columbus; Great Northern Life Insurance Co., Chicago; Great Western Insurance Co., Des Moines; Hoosier Casualty Co., Indianapolis; Illinois Commercial Men's Association, Chicago; Illinois Mutual Casualty Co., Peoria; Income Guaranty Co., South Bend; Indiana Travelers Assurance Co., Indianapolis; Illinois Bankers Life Assurance Co., Springfield; Industrial Casualty Insurance Co., Bloomington; International Travelers Assurance Co., Dallas; Inter-Ocean Casualty Co., Cincinnati; Inter-State Business Men's Accident Co., Des Moines; Iowa State Traveling Men's Association, Des Moines; Kentucky Central L. & A. Insurance Co., Anchorage; Loyal Protective Insurance Co., Boston; Lumbermens Mutual Casualty Co., Chicago; Maccabees, Detroit; Massachusetts Accident Co., Boston; Massachusetts Bonding & Insurance Co., Boston; Massachusetts Indemnity Insurance Co., Boston; Michigan Life Insurance Co., Detroit; Midwest Life Insurance Co., Lincoln; Ministers L. & C. Union, Minneapolis; Minnesota Commercial Men's, Minneapolis; Monarch Life Insurance Co., Springfield; Mutual Benefit H. & A. Association, Omaha; National Assurance Corporation, Lincoln; National Casualty Co., Detroit; National L. & A. Insurance Co., Nashville; National Masonic Provident, Mansfield; National Protective Insurance Co., Kansas City; National Travelers Casualty Co., Des Moines; North American Accident Insurance Co., Chicago; North American L. & C., Minneapolis; Northwestern L. & A. Co., Seattle; Norwich Union Indemnity Co., New York; Occidental Life Insurance Co., Los Angeles; Ohio State Life Insurance Co., Columbus; Old Line Life Insurance Co., Milwaukee; Pacific Mutual Life, Los Angeles; Physicians Casualty Association, Omaha; Postal Union Life, Los Angeles; Progressive Assurance Co., Minneapolis; Provident L. & A., Chattanooga; Reliable L. & A., St. Louis; Reserve Mutual Casualty Co., Chicago; Sterling Casualty Insurance Co., Chicago: St. Lawrence Life Association, New York; Time Insurance Co., Milwaukee; Travelers Health Association, Omaha; United Casualty Co., Westfield; United Commercial Travelers, Columbus; United Insurance Co., Chicago; Únited L. & A. Insurance Co., Concord; United Pacific Casualty, Seattle; Washington National Insurance Co., Chicago; Western & Southern Indemnity Co., Cincinnati; Wisconsin A. & H. Insurance Co., Milwaukee; Woodmen Accident Co., Lincoln. Hon. WILLIAM A. ASHBROOK, HOUSE OF REPRESENTATIVES, Chairman Subcommittee, Committee on Post Offices and Post Roads, House of Representatives. DEAR MR. ASHBROOK: In reference to H. R. 6452, to regulate mail insurance business, on which I understand your subcommittee will hold a hearing on March 28: I have received a number of communications from constituents in reference to this bill, some favoring it, and others opposing some of its provisions. One letter, particularly, from a prominent official who states that through the operation of a mutual insurance company in another State they are able to get insurance at a much lower rate than the standard lines would ask, and while admitting that there may be cases where some Federal regulation is required to protect people against wildcat insurance operators, he makes some worth-while suggestions which I believe your committee will be glad to consider in rewriting this bill, and I therefore quote from his letter as follows: "This company, as is common with mutual companies, is organized under an arrangement whereby each member can be assessed, in the event of a loss and in the event the assets are insufficient to take care of the liability. However, in view of our experience, with the very substantial surplus they have, the danger of an assessment is very remote. All of the companies, parties to this arrangement, are able to meet any assessments that might be necessary. "As to suggestions about an amendment to the bill. It is not unusual in Federal legislation affecting corporations, to exempt companies of this kind. I call your attention to the internal revenue act, title 26, United States Code Annotated, section 982. This section begins as follows: 'Organizations exempted-The following organizations shall be exempt from taxation under this chapter.' Then follows 10 paragraphs that are unimportant. Paragraph 11 reads as follows: 'Farmers or other mutual hail, cyclone, casualty, or fire insurance companies or associations (including interinsurers and reciprocal underwriters), the income of which is used or held for the purpose of paying losses or expenses.' Probably the word 'domestic' should be inserted ahead of the word 'Farmers', although it does not appear in the internal revenue act. "This act undoubtedly was written by someone who has had in mind the oldline companies, which are stock companies, and which, in addition to providing for losses, commissions and expenses, also endeavors to include enough in the premiums to provide dividends to the stockholders. I can see how people might be defrauded by the operations of such companies, but not in a mutual company, and there would be no incentive to defraud as the parties are simply associating themselves together as partners. These suggestions are respectfully submitted for the consideration of your committee. Yours very truly, CHARLES A. HALLECK. INDIANAPOLIS, IND., March 26, 1935. Hobbs bill, United States Congress, H. R. 6452, is not fair to insurance associations as we are. We have been in continuous successful fair and legitimate operation for more than 28 years. This bill will injure us and many others greatly, hence we pray and earnestly ask that you report unfavorably upon this bill. AMERICAN TRAVELERS ASSOCIATION, J. F. IRISH, Secretary. CINCINNATI, OHIO, March 25, 1935. Hon. WILLIAM A. ASHBROOK, House Office Building: Trust House Representatives bill 6452 can be framed to avoid injury Young Men's Christian Association Secretarial Alliance. This mutual death benefit organization, over 50 years old, includes 65 percent of American secretaries. Injustice to these public servants to interfere with this actuarially sound program having limited membership. JUDSON J. McKIM, Chairman Executive Committee. [Telegram] LAFAYETTE, La. Hon. WILLIAM A. ASHBROOK: We are very much opposed to Hobbs' bill 6452 prohibiting the use of the mail for soliciting or collecting insurance premiums. We have been in business for almost 14 years. We have almost 30,000 members. We have rendered a service to a class of people who were unable to afford the high insurance premiums. We have served widows and orphans in time of need to such an extent that we have thousands and thousands of testimonial letters and in behalf of these thousands of members in behalf of our 62 employees we respectfully request that the bill be defeated or amended so as to exclude associations operating on nonprofit basis. AMERICAN BENEFIT ASSOCIATION, Hon. W. A. ASHBROOK, Washington, D. C. COMMERCIAL TRAVELERS MUTUAL DEAR MR. ASHBROOK: Referring to meeting held Monday, the 18th, on Hobbs' bill, at which meeting this association was represented and, in order to give you some information regarding the standing of this association, I am enclosing herewith our last annual statement which, I know, will give you some valuable information. We particularly call your attention to bottom of page 3, 52-year summary. Certainly, if this bill should become a law, which I sincerely hope it never will in its present form, would put this association and similar ones right out of the picture. Your kind attention will greatly oblige, Yours very truly, H. E. TREVVETT, Secretary. P. S. Also may I have the pleasure of shaking your hand a little while before committee convenes? [Telegrams] W. F. ASHBROOK, OKLAHOMA CITY, OKLA., March 18, 1935. Post Office and Post Roads Committee: We are vitally interested in legislation which would prevent operations of London Lloyds in this country. Their facilities are needed here because they provide competitive market and forms of indemnity not procurable through American market. They have character and great financial responsibility. Therefore, they should not be regarded in same light as irresponsible companies which we understand this bill is primarily designed to curb. Hon. WILLIAM ASHBROOK, BRANIFF AIRWAYS, INC. KANSAS CITY, Mo., March 26, 1935. Member of Congress, Washington, D. C.: We respectfully request that the Hobbs bill, H. R. 6452, be reported unfavorably by your committee as the purpose of measure can be accomplished by action of individual insurance departments of the States and should the proposed measure become a law, many established reputable companies, including our own which are legally authorized and licensed yet do a legitimate insurance business by mail would be forced out of business. NATIONAL PROTECTIVE INSURANCE CO., LAFAYETTE, LA., March 27, 1935. Hon. WILLIAM A. ASHBROOK, Chairman, Washington, D. C.: Passing Hobbs' bill 6452 would place me in serious predicament. For 10 years my sole means of livelihood has been a position with T. B. A. Association and as one with a wife and child to support respectfully urge that this bill does not go through. OLIVER J. LE BLANC. Hon. JAMES M. MEAD, HOUSE OF REPRESENTATIVES, Chairman Committee on the Post Office and Post Roads, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: I am enclosing a letter received by me from Messrs. Calhoun & Barnes, Inc., 401 Carondelet Building, New Orleans, La., requesting that your committee approve the proposed legislation contained in H. R. 6452, "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." I would appreciate very much if you would be so kind as to bring Messrs. Calhoun & Barnes, Inc., approval to the attention of your full committee when considering this proposed legislation. Thanking you for your kind indulgence, I am, PAUL H. MALONEY. CALHOUN & BARNES, INC., In re bill H. R. 6452. Hon. P. H. MALONEY, Congressman, State of Louisiana, Washington, D. C. DEAR MR. MALONEY: We are advised that the above bill, introduced by Congressman Hobbs, of Alabama, prohibiting the use of the mails to unauthorized insurance carriers, is to be reported upon by the Post Office Committee. We earnestly urge you to ask the Post Office Committee of the House to report this bill out favorably. With best wishes, we are, Hon. JAMES M. MEAD, CALHOUN & BARNES, INC., HOUSE OF REPRESENTATIVES, Chairman Committee on the Post Office and Post Roads, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: I am enclosing a letter received by me from the Ledbetter-Page Insurance Ageny, Inc., 404 Carondelet Building, New Orleans, La., requesting that your committee approve the proposed legislation contained in H. R. 6452, "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." I would appreciate very much if you would be so kind as to bring the LedbetterPage Insurance Agency's approval to the attention of your full committee when considering this proposed legislation. Thanking you for your kind indulgence, I am, PAUL H. MALONEY. LEDBETTER-PAGE INSURANCE AGENCY, INC., In re bill H. R. 6452. Hon. P. H. MALONEY, Congressmen, State of Louisiana, Washington, D. C. DEAR MR. MALONEY: We are advised that the above bill introduced by Congressman Hobbs, of Alabama, prohibiting the use of the mails to unauthorized insurance carriers is to be reported upon by the Post Office Committee. We earnestly urge you to ask the Post Office Committee of the House to report this bill out favorably. With best wishes, we are, Yours very truly, LEDBETTER-PAGE INSURNACE AGENCY, INC., DENVER, COLO., March 27, 1935. Hon. JAMES M. MEAD, House Office Building, Washington, D. C. Our organization with enrolled membership of 60,000 Federal and public employees wish to file our protest against the enactment of House bill 6452 as written. It will interfere vitally with legitimate insurance enterprise. We sympathize with desire to regulate the operation of questionable concerns. We recommend that the last sentence of section 1 of the bill shall be amended to read as follows: "This section shall not apply to newspapers, magazines, or periodicals of general circulation or to contracts of reinsurance or to labor unions or associations, nor to associations who do not issue insurance policies for which they assume any responsibility and whose insurance policies, if any, are issued by legitimate licensed insurance companies." FEDERAL POSTAL EMPLOYEES ASSOCIATION, Hon. JAMES M. MEAD, HOUSE OF REPRESENTATIVES, Washington, D. C., March 26, 1935. Chairman Committee on the Post Office and Post Roads, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: I am enclosing a telegram received by me from Mr. Chris Nungesser, 144 Carondelet Street, New Orleans, requesting that your committee approve the proposed legislation contained in H. R. 6452, 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. I would appreciate very much if you would be so kind as to bring Mr. Nungesser's approval to the attention of your full committee when considering this pro posed legislation. Thanking you for your kind indulgence, I am, Sincerely, P. H. MALONEY. New Orleans, La., March 27, 1935. Hon. PAUL H. MALONEY, House of Representatives: I strongly urge that you recommend to the Committee on the Post Office and Post Roads their approval of House bill 6452 prohibiting use of mails for soliciting of insurance or collecting of insurance premiums in States without complying with insurance laws thereunder. Kindest regards. CHRIS NUNGESSER. HOUSE OF REPRESENTATIVES, POST OFFICE COMMITTEE, House Office Building. GENTLEMEN: I am enclosing telegram just received from Mr. Harry E. James, Barnett National Bank, Jacksonville, Fla., a prominent insurance man there. He is very desirous of having your committee report favorably on the Hobbs bill. Sincerely yours, W. J. SEARS. JACKSONVILLE, FLA., March 22, 1935. Hon. W. J. SEARS: Please use your influence to have Post Office Committee report favorably on bill H. R. 6452 prohibiting the use of the mails to unauthorized insurance carriers. HARRY E. JAMES. |