New-York tribune., 1905-12-18
SETTLE ON REFORMS.
Il SUMMARY DRAFTED.
MEMBER of Insurance COMMITTEE
Submits One.

The general form Of the recommendations Of
the Legislative Insurance Investigating Com
mittee has already taken shape in the minds
Of the committee, while the specific recommend
ations for legislation are still more or less I'M
settled. 1t is settled that certain phases Of the
existing insurance evils are to be dealt with
drastically. A member of the committee yester-
day made the following rough summary of the
points to be covered in the recommendation for
legislatlon:
Ffrst-The prohibition of campaign contribu-
tions, charitable gifts or any similar extraVa-
CANT and improper use of policyholders money.
Standardization Of deferred dividend con-
tracts and OF ambiguous contracts OF an Sorts
substituting therefor standard life policy.
Third-Absoute publicity. obtained by annual
accounting to policyholders, by the Ming OF gam
and loss exhibits and other information pub
licity and by heavily increased penalties for false
statements to the Superintendent of Insurance
Fourth-Strict limiting Of salaries OF ofncers'
of commissioners and advances to agents
Fiftll-Regulating and compelling companies
to live within their "loadings
Sixth-Provision for the naturalization OF
stock companies by the redemption OF capftal
stock in life insurance companies
Seventh-Standardizing of life insurance m
vestments after the manner OF savings pank m n
vestments. and possible prohibition of syndl-
cate operations in which officials are interested:
Eighth-Provison to compel the reduction or
large surpluses. either by taxation or some other
similar device, compelling their distribution IN
the form Of dividends. thus eliminating the
Wall Street speculative interests IN insurance.
Ninth-Drastic laws making industrial m
surance cheaper, and reducing the causes OF
Iapses, shown to be so frequent.
Tenth-Possible limitation of the amount OF
business any company can write.
James McKeen Is working at the report at the
present time.
The committee tomorrow VIII complete its
probing Of the Provident Savings Life, and viii
then examine the affairs of the Life Association
o4 +t,a I ifa & AxpaCteQ
that almost if not all the week will be oecu-
pied with the smaller companies. At present 1t
is not expected that the State Insurance De-
partment will be reached before next week. the
last of the committees sessions.
Paul Morton president Of the Equitable LlLe
Assurance Society yesterday issued e;tt5
letter to policyholders, in which he submitted
the results of the examination OF the company
by chartered accountants, which have aIreaoS
been made public, and general appeal for sup
port from the policyholders. This appeal is for
the support of policyholders through pubic SEN
tinent to prevent strike legislation, and proIns-
ing to make public any such attempts and hgnt
them thus by exposure. He declares that ms
company will make no more campaign coht[ii-
buttons He urges policyholders to retain pom
cies, not only in order to receive the cneapess
policy possible but also return with interest
OF any excess paid. =,
In closing his letter Mr. Morton declares the
effort of his administration will be not TO
have the biggest company" but the safest and
best"
''It will be the policy, he addS, not TO So
licit or secure new business at the expense OF
the present policyholders, and In case it Is
determined that business in any section of the
world is improbable that field will be aban-
doned."
1t was reported yesterday, but could not be
confirmed that, in accepting the presidency o.
the Mutual Life, Charles A. Peabody had. fol-
lowing the precedent of Paul Morton, demanded
that he have the designations of all subord1nates
to use or not he should subsequently deelde
Still another matter of doubt was whether ne
would also follow Mr. Morton's example anC
give up all his other business affairs. 1t
known that q considerable sentiment in respec
! to this exists among Mutual policyholders.
| Buffalo, Dec. 17.-Assemblyman Robert Lincoln
Cox one Of the members Of the legislative insur-
ance investigating committee, tonight, in an inter-
view declared that the committee in its recon-
mendations to the legislature, should suggest
simple and uniform policy for all companies doing
business in the state and that the investments OF
the companies should be restricted so that there
can be no use funds for the profit OF any indl-
Id11aI officers or stockholders. Mr.. Cox further
said If was his opinion that the companies should
eIerIy five years so to prevent the accumulation
If East siirplIlses. and that the amount OF pre-
va1,1s as well as the salaries of officers, should
- fTed nv a State law Mr.. Cox also expressed
The oninion that the law demanding the consent
Of the Attorney General before suit can pc Drougnl
egaiTs+ the insurance companies should be amend
ed SO as to make the Attorney Generals consent