The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-20
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Special to The journal |
Hudson, Wis, Dec. 20-State Senator James !
A. Frear Of Hudson. who will be chairman of |
the legislative committee to examine into the |
affairs Of Wisconsin life insurance companies |
gave the following statement as to the work !
of the committee, when interviewed today upon |
his return from Madison:
1.-The resolution appointing an investigating |
committee in accordance with a recommen-
dalton in the governors message asking that
railway companies and insurance companies in
the state be Investigated.
+ 'Altho it does not so appear in the message,
it has been repeatedly asserted by those claim
ing to know the facts that the railways OF
Wisconsin have contributed large amount of
money to defeat tax and rate legislation, larger
than ever before used in any state. As
the net raise in state railway taxation alone
amounts to considerably than $500 600
annually the Importance of this legislation to
the state and to the roads cab be easily deter
mined by the standard Of dollars. The rebate
inves tigation by the railway commission depart
ment showed $5,O0OOOO paid in rebates to
Wisconsin business, and balance due the state
from gross-earnings tax amounting to than
$3.50, 900. Other reasons also justified an exam
nation of railroad finances
with his request for a railway. invest1ga-
ton the governor recommended at the session
just closed insurance investigation by the
same committee. Only two life companies are
organized in Wisconsin, the Northwestern Mu-
tual and the Wisconsin Life. The Northwestern
is of the largest companies in the country,
| having assets of 5000 0oo 900 and. surplus of
ment have been made, but the Importance OF
the business conducted by the company and the
| responsibility which the state owes to its pol
| icyholders caused the recommendation for an
investigation into its affairs and such other
work the committee might determine to un-
| dertake. -.~-'. ~
Will Meet Next Month.
| "a joint investigation was directed by the
| assembly, but in the senate the resolution was
divided, that part referring to railway inves-
tigation being defeated by close vote.
| |, "A joint committee of seven members, three
from the senate and four from the assembly
was then authorized to make an Investigation
| on insurance matters, and bill was passed
appropriate such as might be necessary
to carry the work. :
| mo meeting of the committee will be held
| till next month, and not before then can the
work be outlined. 1t has been urged upon
| members of the committee that the investigation
/ include fire insurance and examination Of
| methods whereby nonresident boards arbitrarily
determine rates and absolutely destroy competi-
| ton. The committee may decide such matters
plant. In the meantime all complaints or
charges filed with the committee will be care
fully considered and the extent of results
may be measured in part thru the amount of
assistance rendered by the public.
THE Importance Of life-insurance business in
state can only be appreciated when the fig
ures are presented. In Wisconsin the total
/ amount of insurance carried amounts to about
$500, 900, 900, half of this amount being for
fraternal insurance, and the total is rapidly in
creasing, so that the insurance business has
| become matter of much moment to the half
million policyholders of Wisconsin,
| 1T is impossible to predict what particular
powers Will be assumed by the committee, or
the result of its labors. It Will take up the
1 work without favor or prejudice and endeayor
to ascertain the exact facts
The committee is directed to report the re-
suit Of its investigations to the next legisla.