The news & observer., 1905-11-21
Policy Holders Should be
Protected.
LEGISLATION URGED
Governor Glenn Answers the Letters
Asking Him Why Some Action Has
Not Been Taken In Regard to
the Foreign Companies 0per-
atinq in This State.

Governor Glenn yesterday issued an
address to the people of North Caro-
lima, in which he states emphatically
his position in regard to what the at
titude of the State should be toward
the insurance companies which are
guilty of the corrupt use of funds paid
into the treasures of the companies
by the policyholders. He urges strongly
the necessity for legislation which will
give the authorities ample control over
the insurance companies doing busi-
ness in this State, and says that the
home companies are ample, honest and
reliable.
The full text of the address is as
follows:
ITO the People of North Carolina:
when upon investigation, the Off
GERS of some of the largest foreign
life insurance companies admitted that
large sums of money belonging to their
companies had been used for influ
encing elections, lobbying Legislatures
and other improper purposes, / felt
that our people should be protected
against such practices, and therefore
carefully studied our insurance laws
hoping 1 could find some provision, by
which such companies could be de-
barred from doing business in our
State, until the wrongs thus done
their policyholders were corrected.
I'VE have no such law however,
though there should be, and in no un-
certain words. ! will ask the next
General Assembly to amend our ex-
isting laws, so that the Insurance
Commissioner, by and with the consent
of the Governor and Council of State,
can stop any company illegally APP
propriating the funds of their policy
holders. from tranSacting any business
in the State, until their officers make
good the amounts improperly paid out
All corporations and insurance COM
panies have a perfect right to employ
counsel to attend to any legitimate
matters, or properly represent them
before legislative committees, in order
to express their views on pending
measures. but they have no right to
use funds that would otherwise in
crease the dividends of their share
holders. or policyholderS, by corruptly
paying it out to Influence Congress. or
Legislatures. or in controlling the re-
suit of elections.
Tine argument they make that GER
tain laws passed or party placed in.
power, would impair business. and
thereby lessen their earning capacity
even if true, and it is not. cannot JUS
tify or excuse their doing acts recOg
nized by. all as illegal.
Formerly our people were too poor
to establish home insurance companies
in North Carolina, bat now we have
honest. reliable companies III this
State which, with the clean foreign
companies, are amply able and will
ing To handle all our insurance. The
companies now under investigation are
all solvent, and the policies held by
our people perfectly good-U hold
one myself, and therefore should not
be surrendered. Neither do l desire
to do these companies any wrong, if
they will themselves do right, but be-
fore doing any new business, or eX-
pecting our people TO patronize them,
they must practice equity and compel
their officers to correct the misappro-
priations already made or steps viii
be taken to control them.
This statement is written in an
sUer to many queries and letters, ask
ing me why some action has not been
taken No action can be taken with
out some law TO authorize it. but every
effort will be made to correct this
omission and thus in the future pro-
tect our people Feeling deeply the
trust reposed in me by the people
in electng me Governor of the State.
/ assure them that in this matter. as
well as all others appertaining to their
welfare | will trV and bring before
the Legislature all such measures as
will best promote their interests and
protect them from wrong.
81 am glad to state that both the
Insurance Commissioner and Council
of State are with me in my effort to
thus secure better protection TO our
Respectfully,
"R. B. GLENN.
Governor"