Agents to Bring on Exclusive State Fund?

Who speaks authoritatively for the practices of the New York. State Insurance Fund? Is it Edward J. Powers, whom Governor Dewey recently appointed executive director of the Fund, or Thomas G. Gorman, its sales director?

These are timely questions. They are asked because of two incidents: one, Mr. Powers' letter of March 22 to John C. Stott, president of the. New York State Association of Local Agents; and the other, the address made by Mr. Gorman on April 4 in his joint discussion with George V. Catuna of the Travelers Insurance Company before the Brooklyn Insurance Brokers' Association.

As to the first incident: It will be recalled that several bills were introduced at this year's session of the New York legislature aimed to curb what were alleged to be unfair soliciting practices of the State Fund. Two companion bills, in particular, introduced by Senator Bainbridge and Assemblyman Hatfield, sought to amend the Workmen's Compensation Law by inserting therein a new section, to be section 100 and to read as follows:

Sec. 100. Solicitation of business. The direct solicitation by mail, advertising or by paid representatives or agents for business for the state insurance fund is prohibited, notwithstanding any rule or regulation of the commissioners. This legislation, backed by New York agents and others, had advanced to third reading in both Houses of the legislature when Executive Director Powers wrote his letter to President Stott. We quote part of this letter:

From the inquiry I have been able to make in so short a time I have found that Ehere may be some substance to com plaints of unfair practices in solicitation by employees of The State Insurance Fund. I believe that steps can he taken administratively within the Fund to correct any such abuses and that no legislation is necessary at this time. I can assure you that correction of any unfair pimtices will have my immediate attention and I am confident that a satisfactory solution can be worked out. Immediately thereafter President Stott bulletined his association membership and the insurance industry generally, forwarding at the same time a facsimile of Director Powers' letter. The following are quotations from Mr. Stott's bulletin:

This statement by the Director is so sufficient and convincing that it would seem unwise at this time to press further for legislation prohibiting solicitation by the State Fund and, therefore, the bills in the Senate and Assembly to prohibit such...