Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-07-07

other executive officers for taking tnE
step"
MIR. Hendricks eXonerateS Gage F.
Tarbell. second vice president of the
| Equitable, as he states that no sub
stantial evidence appears in support
| of the charges preferred against him.
As to the investment OF the funds OF
| life Insurance companies, Mr.. Hen
bricks says:
Il think it important that the next
legislature should take into conSidera.
| ton the question of the investment OF
| the funds of life insurance companies
and establish standard of Investment
As TO just how far or to what extent
| they should be restricted in their in
vestmentS l am not prepared to offer
| an opinion at this time. Doubtless
! that question will he studied and
thought out 10y the time OF the next
| annual meeting of the legislature.
| There can bc no question. however. of
the wisdom of prohibiting the invest
ment of the fLndS of life insurance
companies in subsidiary moneyed and
| business corporations controlled by life
| insurance companies which occasion
the carrying Of large balances for the
benefit Of those companies ana tor the
stockholders who are largely associated
in the management of the society.
Eliminate Stock Control.
During the progress of this inveSti-
CATION 4 change in the stock control of
the society has been made, and three
trustees have been empowered under a
deed of trust to partially mutualize
the society-that is, it is provided that
twenty-eight of the directors should be
elected by the policy holders, with the
promise that there would be n reduc
tiOu in the expenses Of the company
and that the managers would institute
other reforms in the management of
the society which would inure 10 the
benefit of the policy holders. l do not
question but what this is the honest
intention of those who have acquired
the control of the stock of the society.
l do not think, however, that this will
go far toward restoring the confidence
of the present policy holders or aid in
procuring new business for the society.
In my opinion the only thing that will
restore that confidence and benefit the
company will Ice the elimination of
stock control, and, what / deem OF
equal importance. the elimination OF
Wall street control.
81 early came to the opinion. and so
expressed myself TO the legislature in
the departments annual report this
year. that all the surplus accretiOns Of
this society beyond the per cent div
idends on the stock belong 10 the pol
icy holders. The charter provides that
the business of the society should be
conducted on the mutual plan and pro-
credited with an equitable share OF
the surplus. And | am confirmed in
my opinion 10y an examination of the
statements that were made early in
the existence of this society to the in
surance department, verified under
oath by the president of the society,
that it was purely mutual company
and that all its surplus should he d.
yided in an equitable manner among
the policy holders, and still further by
an examination of the atfidavits made
on behalf of the society to the COM
missioner of taxes and assessments of
the city Of New York. cbntaining the
statement that no surplus earnings he
longing 10 the stockholders and that
all the denominations of the society
are held for the benefit of the assured
and are free from taxation.