Hon. W. F. ASHBROOK, House of Representatives: BIRMINGHAM, ALA., March 15, 1935. My attention has been called to hearing Monday before subcommittee of Hobbs bill to bar use of mails for solicitation or collection of premiums of all except qualified insurers. Have not read bill but believe any action very unwise which would prevent such agencies as Lloyds writing risks in this country. MACLIN F. SMITH, Chairman Committee on Legislation, Alabama Bankers Association. Hon. W. F. ASHBROOK, PORTLAND, OREG., March 14, 1935. House of Representatives, Washington, D. C.: H. R. 6452 before your subcommittee for hearing Monday strongly opposed in Oregon. Blanket bonds for small banks unobtainable from domestic qualified insurers have been obtained through London Lloyds. This bill would eliminate such underwriters and leave no blanket bond available. No blanket bonds written in Oregon by unauthorized insurers except when such bonds unobtainable from those qualified. Strongly urge your opposition. T. P. CRAMER, Jr., Secretary Oregon Bankers Association. NEW JERSEY BANKERS ASSOCIATION, Moorestown, N. J., March 15, 1935. Hon. WILLIAM A. ASHBROOK, House of Representatives, Washington, D. C. MY DEAR CONGRESSMAN: In behalf of the bankers of New Jersey, we respectfully request and urge your forceful opposition to H. R. 6452 as presently introduced by Congressman Samuel Hobbs of Selma, Ala., and referred to a subcommittee on the Post Office and Post Roads of which committee we note you are a member. The New Jersey Bankers Association favors any measure which would fortify the postal authorities in prosecuting and eliminating companies of a questionable character whose use of the mails causes loss to our people, but as H. R. 6452 goes further in barring certain insurers whose protection is more desirable than is available from qualified or licensed companies, New Jersey banks strongly oppose the bill without a suitable amendment to modify this objectionable feature. Such legislation would seriously weaken the quality of insurance protection enjoyed by banks, and particularly the larger institutions. In the public interest a sound banking structure demands a free and open market for insurance to safeguard depositors no less than stockholders. As custodians and trustees of public and private funds and securities, banks must not be restricted in their selection of underwriters, particularly with regard to their credit risk, and capacity to indemnify insured losses. We will appreciate your full consideration of this important matter, and your influence exerted against this bill unless amended. Very sincerely, A. H. COATE, Secretary. NEW YORK STATE BANKERS ASSOCIATION, Congressman WILLIAM A. ASHBROOK, Chairman Subcommittee on the Post Office and Post Roads, House Office Building, Washington, D. C. Dear CONGRESSMAN ASHBROOK: Our committee, on behalf of the banks of this State, desires to record its opposition to the Hobbs bill, H. R. 6452, on the ground that it would deny the banks the right to insure with some of the most reputable and strongest underwriters with whom their experience has been most satisfactory and with whom many of the American companies place a large volume of reinsurance. While the banks of this State are in sympathy with any measure which will eliminate insurers of questionable character who make use of the mails to victimize the public, we feel that the Hobbs bill, while it might be helpful in this respect, would at the same time seriously limit the insurance market available to our banks and make it impossible for them to cover certain of their risks which are not underwritten by American companies. Yours faithfully, GEORGE V. MCLAUGHLIN, Chairman Committee on Federal Legislation. THE CHURCH PENSION FUND, 20 Exchange Place, New York, March 14, 1935. Hon. WILLIAM A. ASHBROOK, MY DEAR MR. ASHBROOK: I am writing to express to you, as chairman of the Subcommittee on Post Office and Post Roads, my appreciation of your courtesy and that of the other members of your committee in receiving the statement which I made yesterday in behalf of the Church Pension Fund, the Church Life Insurance Corporation, and the Church Properties Fire Insurance Corporation in reference to H. R. 6452. I understood from you, speaking in behalf of the committee, that we may consider that organizations such as the above, which are administered solely in the interests of the church, will be excluded from the provisions of the proposed bill. In presenting my statement yesterday, I felt that I should confine it to those aspects of the proposed bill which would directly affect our interests. If I may be permitted to do so, however, I would like to present for the consideration of your committee a general question which seems to me to be important. The bill, in the form in which it was introduced, prohibits the use of the United States mails on the part of individuals, partnerships, associations, or corporations in reference to insurance unless they "shall first comply with the insurance laws of the respective States, Territories, or the District of Columbia." This might conceivably be a wise provision if the Congress is satisfied that the insurance laws of the respective States are just and adequate. There is no provision in the bill, however, which would prevent any State from adopting insurance laws in the future which might be quite unjust and which might make it impossible for perfectly sound and honestly administered insurance companies to transact business in that State under those laws. There have been such cases in the past. At one time, I understand, practically all insurance companies withdrew from the State of Mississippi because of certain laws which practically made it impossible for them to operate there on any sound basis. There are now existing laws in some States which are so questionable as to their constitutionality that the States have never attempted to enforce them. They are laws, however, and this bill would require the Post Office Department to enforce them or contest their constitutionality. If the bill is passed in this form, the Federal Government will be placed in the position of forever endorsing and assisting in the enforcement of such State laws which would be entirely beyond its control. In other words, once this bill becomes the law of the Federal Government it delegates to the various States a power which I do not believe that they ought to have and a power which would be automatically backed up by the Federal Government. It was developed in the hearing yesterday that the insurance laws of the various States admittedly vary to a large degree. It seems to me that if we accept the statement that this bill is primarily designed to protect the public against misrepresentation and fraud, its purpose might easily be defeated by the enactment of insurance laws by the individual States which are either unjust in their stringency or are thoroughly inadequate. To prohibit the use of the United States mails according to the regulations which may be laid down in a varying manner by every individual State might work great hardship not only on those insurance companies, either in the lifeinsurance field, the fire-insurance field, or any other field, which are administered honestly and upon a sound financial basis, but also on those individual citizens who might otherwise use their facilities to advantage. While I cannot speak officially in behalf of the Church Pension Fund and its affiliated corporations except in relation to the effect which the proposed bill might have upon their interests and the interests of their policyholders, I felt that on account of your courteous and open-minded attitude of yesterday I would be justified in placing this consideration before you. I am taking the liberty of sending a copy of this letter to the other members of your committee who were present yesterday, together with a letter expressing my appreciation of the attitude of your committee. With best wishes, I am, Very sincerely yours, Subject: H. R. 6452. Hon. Wм. A. ASHBROOK, BRADFORD B. LOCKE, Executive Vice President. PENNSYLVANIA BANKERS ASSOCIATION, House of Representatives, Washington, D. C. DEAR CONGRESSMAN ASHBROOK: On behalf of the banks of Pennsylvania I have been informed that the above bill now up for consideration by the subcommittee of the Committee on Post Offices and Post Roads, of which subcommittee you are the chairman, would deny the use of the United States mail to all insurance companies in the conduct of their business, unless and until they shall fully qualify to transact insurance business in any State by complying with the insurance laws thereof. Further, it is my understanding that the bill has directly in mind enabling the Government in this way to attack the operations of insurance companies whose business is of a questionable nature. I trust that you will use your good offices toward having this bill amended in such a way as will not outlaw insurance companies whose business methods are not questioned and whose standing in the business world is above reproach. Otherwise, this bill will be most harmful in its effect. Copies of this letter are being sent also to Congressman Harry L. Haines and Congressman I. H. Doutrich, both of whom are members of the Committee on Post Offices and Post Roads, but as I understand are not members of your subcommittee. I trust that you can see your way clear to give due consideration to the point of view expressed in this letter. Thanking you, I am CHARLES F. ZIMMERMAN, Secretary. Hon. W. A. ASHBROOK, M. C., Washington, D. C. HOUSE OF REPRESENTATIVES, Washington, D. C., March 14, 1935. DEAR MR. ASHBROOK: I have received a telegram from M. W. Hobart, secretary of the Ministers Life & Casualty Union of Minneapolis, which reads as follows: "Will you not kindly refer to chairman of appropriate committee following message which we have just sent Representative Hobbs: 'Regarding Hobbs bill 6452, we submit that companies such as Presbyterian Ministers Fund, Philadelphia; Church Life, New York; Ministers Mutual, Boston; and Ministers Life and Casualty Union, Minneapolis, limiting membership to single professional class are performing service necessary to their members and cannot operate successfully except by mail. Protest any proposed legislation tending to destroy or hamper legitimate organizations. We ask opportunity of presenting our viewpoint before action is taken by committee having bill under consideration.'" I trust that your committee will find it possible to grant the class of insurance companies to which Mr. Hobart refers the requested hearing. Yours very truly, THEODORE CHRISTIANSON. Hon. CHAS. L. MCNARY, Senator, Washington, D. C.: PORTLAND, OREG., March 15, 1935. We are advised of hearing on House bill 6452 before subcommittee Post Office and Post Roads next Monday morning. This bill imposes further burden on grain and flour business of this section which has suffered heavily from loss of markets which we are endeavoring to recover. We solicit your aid in defeat of this bill. KERR GIFFORD & CO., INC. THE NORWOOD-HYDE PARK Congressman W. A. ASHBROOK, Washington, D. C. BANK AND TRUST CO., Norwood, Ohio, March 16, 1935. SIR: This bank has a contract with Lloyd's of London for part of its bankers' blanket bond coverage. Our experience with these underwriters has been satisfactory and the rate materially cheaper than American companies, although we give an American company a fair share of our business. We do not feel, however, that Lloyd's should be prohibited from writing this type of coverage as without this competition the American companies could raise their rates at their own will. We trust that you will use your good offices to see that no legislation is passed prohibiting Lloyd's from doing business in the United States. Yours very truly, Mr. W. A. ASHBROOK, LOUIS F. KISPERT, Cashier. THE CANAL WINCHESTER BANK, Canal Winchester, Ohio, March 16, 1935. Representative, House of Representatives, Washington, D. C. DEAR SIR: It has come to my attention that Senate Bill 209 by Matthews would eliminate Lloyd's Insurance from the Ohio field. One of the high costs of banking at the present time is insurance. We believe, that if Lloyd's were eliminated from the Ohio field it would have a tendency for American insurance companies to raise their rates, which at the present time are almost prohibitive. We urge that you oppose this measure. Respectfully yours, W. J. MOORE, President. تا Now, if any member of the committee wishes at this time to insert any letters or telegrams that are not duplications, he may do so. Mr. DOBBINS. I have a radiogram from John Kellogg Co., of Chicago; a wire from the Illinois Commercial Men's Association saying that they wished to be represented, but that it would be impossible for them to be present today and asking for a hearing in the future; a wire from the A. V. Gruhn, American Mutual Alliance, Chicago; several letters that I do not think it necessary to offer, from those interested in and policyholders of the Ministers Life & Casualty Co., of Minneapolis; a letter from Byron B. Servies, an attorney, of Chicago, with reference to the effect of the bill on Lloyds underwriters; and a letter from the Illinois Bankers' Association, that I would like to have appear in the record. (The letters and telegrams referred to are as follows:) Hon. DONALD C. DOBBINS, CHICAGO, ILL., March 16, 1935. House of Representatives, Washington, D. C.: We desire enter our protest against Hobbs House bill 6452. We consider same detrimental our business as grain merchants, involving unnecessary handicap and expense. JOHN KELLOGG Co. Hon. DONALD C. DOBBINS, House of Representatives Office Building: CHICAGO, ILL., March 16, 1935. Respectfully request an opportunity to be heard before your Subcommittee on the Post Office and Post Roads on House bill 6452. Impossible to present case on Monday. ILLINOIS COMMERCIAL MEN'S ASSOCIATION, CHICAGO, ILL.. March 16, 1935. Hon. DONALD C. DOBBINS, House of Representatives: Under We are very much opposed to House bill 6452 in its present form. stand hearing scheduled for Monday. Would like continuance to permit our organization which represents mutual fire and casualty companies to be heard. This bill would seriously handicap strong and legitimate institutions now serving a real purpose, which institutions are under strict supervision in the States in which organized and from which they do business. There are some conditions insurancewise which need correction and this, the author of the bill undoubtedly has in mind. Some of the proponents of the bill, however, see in it an opportunity to further a plan to localize insurance business in the interests of a limited group but to the disadvantage of the insuring public and the insurance companies. Some of our Illinois organizations of high standing are very much interested in this matter, and we are anxious for opportunity to present our views to your committee, but notice of meeting comes too late to permit us to be adequately represented on Monday morning. Shall appreciate anything you can do toward securing continuance. AMERICAN MUTUAL ALLIANCE, CHICAGO, March 16, 1935. Hon. D. C. DOBBINS, House of Representatives Office Building, Washington, D. C. DEAR SIR: You can count me as being absolutely opposed to the passage of House bill no. 6452, known as the "Hobbs bill", relating to the use of the mails by insurance companies or organizations which may not be licensed in some or all of the States. (This bill has apparently been designed and caused to be introduced by interested parties primarily to prevent Lloyds Underwriters, of London, England, from doing business in this country. Lloyds, as you know, is licensed in Illinois and also in the Provinces of Quebec and Ontario. In this country they furnish principally specialized and unusual forms of insurance contracts to the insuring public along lines not usually furnished by domestic insurance companies. They shorld not be excluded from continuing to give our citizens the benefit of the sahe kind of insurance service which has been rendered to them in the past. Lloyds of London is an institution which was founded about A. D. 1685. This is, therefore, approximately its two hundred and fiftieth continuous year of successful underwriting. The underwriters never welsh on their contracts; their whole history of doing business is an ornament to the institution of insurance. The Congress would be doing the people of this country a grave injustice if Lloyds of London were exluded from undertaking risks here by the thin diguise of a penalty for using the mails. If the Hobbs bill passes it might very likely cause Lloyds to retire as licensed insurers from our own State of Illinois from which State they now issue insurance contracts covering in Illinois and elsewhere and to which State they report their premiums and pay substantial taxes thereon just the same as other admitted companies do. The State of Illinois, upon the retirement of Lloyds therefrom, would lose considerable revenue which, as you know, is badly needed here. |