Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-09-29
Used by Large Insurance
Companies Condemned
By National Insurance Commits.
siOnerS AssO. In Convention.
Resolutions Adopted FaGoring More Restrle'
live Legislation. .Officers Elected.

Brettcn Woods, N. II, Sept. 2S.-The
Closing session, tonight, of the national
convention OF State Insurance COM
nlissioners here was regarded as the
most important Of the convention. A
number OF the radical delegates desired
10 use strong words in resolutions re-
garding the alleged irregularities in the
affairs of several large life Insurance
companies but they were out-Voted
and the convention adopted resolu-
liens along conservative lines. Gem
nliss!oners Vandtver of Missouri, anG
|-IcGibney Of Louisiana, recommended
that strong action be taken as the re-
suit Of recent developments III New
York. A special c0nu,ittee Of five ap-
pointed to consider the subject passed
the day IN drafting the report. The
resolution which the committee laid
before the convention was accorded
considerable discussion. The resolu-
ton is rs fellows:
That the convention IS sensible of
the reprehensible trarsactions and
practices INDUCED in by the officers of
various mutual insurance companies
HOW under investigation and that the
convention should ard does recommend
its severe cond amnation of those acts,
end
That the members pledge them
selves to aid in the passage Of laws
and tho department regulations where
By such extravaganza ana mi5manage-
menl IT the affairs of life insurance
companies can be done away with.
hs,r ntT of nj o
be required to make q more frequent
accounting to their policyholders and
that the reports of the companies be
moro definite and exhaustive than a
mere statement Of assets and liabili-
ties
Mir. Nandiver thought that the res
uluti0ns were not strong enough and
ne proposed Il substitute which severe
iy criticised the officers OF several COM
ranies, particularly those of large
New York corporation which is said to
have contributed to political funds. AT
ter discussion Mr.. Vandiver's resolu-
ton was lost by a vote of q to 8.
The resolutions proposed by III"
committee were then adopted by Il
unanimous vote.
Il'c lGilONllS "GLt tlcNlFb-
President, j. V. Barry, Michigan: vice
president, Theron Epson, Connecticut;
secretary. John j. Brinckerhoff. Hi
nais; executive committee, Thomas S.
Drake, District of Columbia; Frederick
L Cutting, Massachusetts,; b. F. Car
roll, Iowa; Peau F. Folk, Tennessee,
| and A. l. Voiris. Ohio.
After adopting resolutions on the
death Of Conlr. John G. Linehan CT New
Hampshire, the convention adjourned
to meet at Washington, D. c., in 1906.
The reports of committees developed n
sharp discussion and difference of opinion
among the delegates. The discussion rose
| on recommendations favored by the COM
rlittae on blanks, the committee on assets
| of insurance companies and the commit
| tee on rates OF mortality and interest
The committee on blanks declared that
| there should be throughout the country @
| law in the various states obligating the
| Use. of the gain and loss blank by insur-
ance companies. BY the use of this blank
| the affairs OF the company would be Civ
| or greater publicity. The recommends
| lion was opposed generally by the dele
| gates from the South and West and ia
| yored by those from the East. a tie vote
resulted and President Cutting declared
| that the recommendation has failed of
passage.
A Recommendation thai insurance com
| panies be restricted Ia their Investment
| of securities was adopted. 1t favors de-
| NAL .: the privilege of Investing IN stocks
| of any kind. Tho resolution adopted pro-
vides how lcgisla lures should restrict the
| classes Of securities in which investments
| are made. 1t favors the granting Of the
| privilege Of investing in United States
| bonds, approved bonds of foreign coun-
| tries. in bonds of states. cities and towns
| and railroad bonds of 4 certain demon
stratcd standard value.
| A third resolution criticising what was
| termed excessive premium rates of insur-
| ance companies was adopted after some
| discussion. In reporting the resolution
the committee on mortality declares that
| recent investiga tions had developed the
| fact that excessive rates were enforced in
| certain companies. The committee eX-
| pressed its belief that the rates should be
| lowered. Other committees to report were
| those on laws and legislation. fraternal
| insurance and unauthorized insurance