Evening star., 1901-02-05
BOTH SIDES GIVEN. HEARING
AND OPPONENTS OF
SENATE BILL 5591.
Measure Pending I'm Congress to
~ Amend Charter of Mutual Fire
Insurance Company.

The District Commissioners today gave a
hearing on Senate bill 5591, to amend the
charter of the Mutual Fire Insurance Com
pany of the District of Columbia, both
those advocating the measure and those
| opposed to it's passage being heard. The
officers and managers of the company were
| present, represented by Attorneys r. Ross
Perry and Samuel Maddox, and the Com
missioners were informed by them that
the company is opposed to the bill In ad-
vocacy of the measure Mr.. Andrew ..
Nash, the vice president of local insur
ance company; Mr.. A. D. Smith, who
stated that he represented two policies
combining five risks; Mr.. Wilton j. Lam
bert, representing nearly a hundred risks,
| and Mr.. Jesse B. Wilson, for many years
| a manager and president of the company,
| addressed the Commissioners. At the con-
ciusion of the hearing the Commissioners
took the matter under advisement. stating
that they will give it early and careful
consideration.
Mr.. Nash first addressed the board, stat
ing that he approves the principles of the
bill. and is of the opinion that there should
be general law of its nature. The assets
OF the company, amounting to about $36a'-
600, Mr.. Nash stated, are entirely under
the control of the trustees of the company,
who compose it's board of managers
He explained the manner of voting prox-
les, saying that each risk entities the policy
holder to one vote, and that while there are
about 1000 policies, there are 10000 or 15-
900 votes To Mr.. Perry Mr.. Nash stated
that he is not now policy holder, and that
he spoke merely in the interests of the pub
| lic The bill meets his approval, he said,
because 1t will prevent control of the COM
pany by proxy votes, or by a combination
of such votes, and such legislation, in his
| Judgment, should be made general here.
Alleges Abuse of Privilege.
Mr.. Smith said there has been some abuse
of the proxies in his opinion. and he re-
ferred to the fact that at the last annual
meeting of the company only about 65 or
| 20 persons were present, and that some of
those present held and voted hundreds of
| years old. Mr.. Smith charged that proxies
! are solicited, and he expressed the belief
| that it would be for the best interests of
| the company. as well for policy holders
| that no proxy shall be good for more than
| one year, as provided in the proposed bill.
Mr.. Lambert also advocated the bill. and
| referring to the voting of proxies, declared
| that to such practice safely be attrib-
| uted the litigation in which the company
| has been involved during the past ten or
fifteen years He explained that the advo-
Yates of the bill do not desire the abolition
of voting by proxy, but demand that it
| shall be done under certain restrictions
The COmpany's View.
| On behalf of the company Mr. Perry
| referred to the fact that voting by proxy
has been held by the courts, not only right
| and proper in the case of this corporation,
| but also in all other like cases. He spoke
| of the development of moneyed corpora
| tions since the time the company was incor-
! porated some forty-five or more years ago
| and of the a bsolutely necessary right of stock
! holders to the privilege Of voting when kept
! away from meetings, by proxies. Mr.. Perry
| also referred to the litigation in which the
| company has been involved. saying that in
! every instance the courts have upheld the
| management and the right of the stock
| holders to give proxies and to vote through
| proxies. The bill in question, said Mr..
| Perry, will do the very thing which those
| opposed to the present management of the
! company declare against. the placing of its
| affairs in the hands of few.
| No one who has given a proxy. stated Mr..
| Perry, has complained here or elsewhere
that it was improperly used. and he said
| that in every case where persons have been
put out of the company by the cancella-
| ton of their policies. it has been done for
| good and sufficient reasons, and for the
| benefit of the corporation. Mr.. Perry also
| referred to the fact that at the last annual
| meeting of the company, a resolution was
| unanimously adopted protesting against the
| passage of the bill.
Mr. Maddox spoke in opposition to the
| bill, saying that the company was organ
| lied by seven men, one of whom, Mr.. NJ
| G. Emery, is still with it, example OF
| the survival of the fttest He said there
| has been no real, well-grounded complaint
! made against the management of the com
pany, and he referred to the fact that but
| four five policies are represented by
| those who appeared at the hearing and ad-
vocated the passage of the bill.
Amended by Mr.. Wilson.
! Mr. Jesse B. Wilson, for many years
manager and president of the company, ad-
vocated the bill, and offered the following
| amendment thereto THAT manager,
| officer or employe shall be permitted to
| licit proxies be competent to act vote
proxies for the election of managers for
said company" Mr.. Wilson severely crIti-
cised the management of the company dur
| ing the past few years of it's existence. de-
| c1a thar eunIoye nj the cnmnany