stant before every class of insurance companies, but is greatest among assessment companies whose operations are extended over widely scattered States, and among diverse and miscel laneous populations. The difficulty must also be considered of collection in case of contested policies of co-operative companies of other States. As a rule there are no assets and there is no particular responsibility. As the payment of the assessment is absolutely voluntary, so the payment of the benefit is practically voluntary. State courts are powerless, and the "assessments" for costs in the Federal courts, if no other obstacle existed, would be fatal to their use. There are

enough of these associations in this State, or there will be if they are properly protected by law, to answer all the wants of the people of this State, and it is respectfully submitted that this class of insurance in this State, with the exceptions named, should be confined to companies organized and located in this State.

Many co-operative companies of other States, already in operation in this State when the law of 1881 was passed, claim the right to continue business here regardless of the authority of this Department. That seems to be a violent construction of the law, but whether so or not, it is a bold and impertinent presumption. It compels the Department to protect itself as far as possible against the raids of these defiant outsiders. Soon after the law went into effect, questions arose as to its limitations, and a construction was asked from the Attorney-General. That officer decided that the operations of the law were confined to societies which paid a benefit on the "decease, sickness or other physical disability of a member," and that they could not pay an endowment during life. If they wanted to pursue that class of business they could do it under the general insurance laws of the State. The Department, following this decision, has ruled ac

cordingly since, and has declined to authorize any assessment society having an endowment feature to do business in this State, whether such society was located in this State, or elsewhere. In some cases some of these societies having this feature had taken some steps previous to this decision of the AttorneyGeneral, in compliance with the law. In all such cases these societies were notified by this Department that they could no - longer be recognized as lawfully doing business here. The Order of Chosen Friends, located at Indianapolis, Indiana, was among those so notified. It persisted, however, in its claim of a right to do business here. At various times, many of its members and others interested, wrote to the Depart ment and made inquiries in person as to the rights of the company in this State. The uniform answer of the Department was in harmony with the decision of the Attorney-General. At length the Order served notice on the Superintend ent to show cause before Judge Westbrook why he should not be restrained from writing such letters or making such answers to inquiries on the subject. The Superintendent duly appeared by counsel and showed cause, and Judge Westbrook denied the order for an injunction. He, however, accompanied that denial with an opinion as to the construction of the law which holds that a man is "physically disabled" on arrival at the age of seventy-five years, and therefore this organization is lawfully here. With all due deference to the learned Judge the Department is unable to admit the force of his reasoning, or to comprehend that the legislature in enacting this law intended to fix the limit of man's physical ability. The right to enact laws involves the right to repeal them. ̈If, therefore, by virtue of this law, a uniform period is fixed for such disability, the mysteries of nature and the laws of science may at any time be changed by act of the legislature. It

hardly seems possible that such powers are within the range of constitutional or judicial bounds.

In its notice for a motion to show cause, the order also included notice for a trial of the matter on its merits. That trial has not yet been reached. The Department is ready and anxious to meet it, and has respectfully declined a proposition from the counsel of the Order of Chosen Friends, since the denial of the injunction by Justice Westbrook, for a discontinuance of the trial. The issue has been forced upon the Department by the Order of Chosen Friends, and it has no disposition to run away from it. Indeed, it prefers to have the question tested in this case rather than any other, because if sustained in its view in this case, it will cover every possi ble phase of endowment. This is, perhaps, as little objec tionable as any, for a great many old men do need help. But the question is not whether they will need it, but whether they are likely under this promise to get it. A society should have its roots pretty well grounded, and have ability to show at least reasonable basis for its promise, before coming into this State from Indiana and luring money from the pockets of our people on the strength of an endowment to be paid fifty years hence. That is a long time and there are more chances that the insured will outlive the period than that the society will. But if by chance the society should outlive the period, how few of its members will, and who gets the money which, if it can be paid at all, must be set aside for that purpose. The truth is, it is an unreasonable if not an impossible promise, a mere bait to lure confiding people into membership.

It is simply one of the many schemes which are resorted to in the name of benevolence and charity, to make these societies tributary to the selfish ends of speculating individuals.*

NOTE-Since this report was written the suit has been withdrawn on application in court by the Order of Chosen Friends, and against the protest of this department.

This department draws a very wide distinction between speculative insurance under the guise of co-operation, and honest co-operation. All companies, under whatever guise organized for money-making purposes, should be subjected to the most rigid requirements, and the department should be enabled to distinguish these from all others before the people. In doing this the Superintendent must necessarily exercise some discretion, and must be careful not to do injustice, either to the people or the companies. A benevolent and charitable association in good faith is ordinarily a blessing which ought to be encouraged and sustained. But those which take the name only for personal ends are wolves in sheeps' clothing. In the garb of christian charity they are enemies of the public welfare. No law or supervision can be too severe for such as these. Laws which will destroy them are exactly what is needed. In every corner of the land great numbers of these scheming plans for money-making and personal aggrandizement are springing up and going among the people as life insurance associations under the plea of benevolent and charitable purposes. In many cases they are downright frauds, intended to rob the people. In many other cases they are wild and delusive schemes of crazy theorists, bubbles which are sure to burst. In all cases they are simply individual speculations entitled only to condemnation and avoidance because their appeal for support is based on really fraudulent grounds. Unable to stand on the legitimate business of their own neighborhoods they swarm here in large numbers from distant States, Ohio, Indiana, Michigan, Maryland, Massachusetts, Connecticut and Pennsylvania, intruding themselves in spite of law and denying the restraints of law. In the aggregate they gather up vast sums of money from that class of our people who are least able to bear the drain, and carry it off to distant States, where the method of its expenditure is known

to no one save those who receive and handle it. These irresponsible concerns should not be confounded with honorable associations of respectability, responsibility and character, having for their basis the strength of established benevolent organizations. All such have the cordial sympathy and support of this department. They are performing a good work. They honestly exercise their functions, and they scatter innumerable blessings in their path.

Companies that are organized under the insurance laws of other States must be insurance companies. There are decisions of courts and opinions of Attorneys-General upon this point. This is the construction of Insurance Commissioners, and ought to be of the people who are the real law makers, in whose interest all law is supposed to be enacted, and who are bound to uphold the laws or repeal them in due form. It was the intention of the law of 1881 to embrace within its scope all associations or companies of an insurance character not already embraced under the laws of 1853 and acts amendatory thereof. Whatever is insurance comes under one act or the other. If under the act of 1881 it must be subject to its provisions. If under the act of 1853 it must be subject to that. No concern can rightfully escape all law by any form of subterfuge. The character of the business done, not the name of the organization, fixes the class of insurance. Somebody must determine this character. There seems to be no other officer than the Superintendent to do this. It matters not as to the methods of organization, whether open corpora tion or secret society, it is the character of business which must settle the question. Life insurance is life insurance under whatever guise it is offered, and it should be subject to and obey the law according to the propositions it makes. The Department has accordingly said to all speculative and money making concerns, in whatever State located, that they are