Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1905-10-19


The subject Of life insurance is so little
understood by the public in general that
It is not strange there should he marked
misapprehension in relation to the prob
able or possible results of the investiga-
tion in progress into the affairs of soma
of the insurance companies IN New York.
For exampls it is stated that some policy
holders who had paid-up policies were
moved by the announcement of a confer
ence of the insurance commissioner of
Vermont to query whether or not to
take the money to which they were en-
titled. and throw up their policies.
These and other reports in circulation
seem to make desiNQble renewed emphasis
Of the fact that no question has been
raised about the entire solvency of the
great companies investigated. Indeed
the inquiry has served to demonstrate
that the companies have an immense sup
ply of money or its equivalent in reserve.
and one complaint has been that their
resources are so enormouc as to make
1t possible for them to control the money
situation to a marked degree. Here for
example is what Chairman Armstrong
OF the committee of investigation has to
say:
81 regret very much to see other States
apply drastic remedies in advance of ac-
tion in this STATE. Our committee was
Y Amounted ia iuvpatiHutp conditions in tno
Insurance business and propose remedial
legislation. ! sincerely hope other States
will wait until we have had an opportun-
lty to complete our work.
"These insurance companies are perfect
~ solvent and are able TO carry out every
contract they have made or may make.
There is no reason for refusing to per-
init them to continue to do business. IL
Nevada proposes to do one thing. Mis-
souri, another thirg. and some other State
still another thing. there will he a chaotic
condition of affairs. | believe there is due
at least tho courtesy to New York State
to wait until the investigation il COM
plcted and our remedial. legislation is ap-
piled.
"Our committee will make the mos,
thorough Investigation possible, and when
we are through we shall make it oui
business 10 adopt such legislation as will
safcsard the policyholdcrs and make thu
insurance business safer and sounder ant
more attractive than it has ever been be-
fore. If other States jump in before VIZ
can complete our work or can adopt any
legislation everything Will be confusion
In the insurance business of the country
"Another point: When a number O.
western insurance commissioners were II
New York recently. we had n conference
with them. and We promised to submit Il
them for their suggestions what rcrnedia
legislation it was proposed to adopt. II
this way We hope to secure uniform &C
ton in all the States. 1t is not right fo
other States to take action after on
committee has been at work only fou
weeks, and long before We have reached
the end Of our investigation. Any actor
they might take at this time would b
premature.
"Our committee was not appointed I
tear down the insurance business of tn
country. but to build it up. We are sim
ply tearing down some OF the rotten tim
bers TO get the right foundation on whicI
to build. We are trying to do this worl
man-fashion. thoroughly. and c%onscicn
%tiousiy. 1t Ia not IA pleasant task at best
Out we arc n0I uOuelHk ana NAH Ho' uo"b
any responsibility. The insurance body
sound, but il Is afflicted with some ulcers
We arc performing n surgical operatio
for the removal of these ulcers from tn
body. not trying to kill the insurnnc
body. Because we have discovered som
rottenness, it is not right for outsid
States TO cripple the insurance bushes
and handicap o,r efforts"
This statement by the chairman OF tn
BODY engaged in investigating the cond
Non of insurance companies ought to hav
. rcassuring effect for all concerned saw
those officials who may have abused III
trust reposcd in them. Tn compani'
themselves are declared to be In sonn
condition and with the removal Of abuse
and measures adopted to assure that thes
viii not be repeated the insurance con
.1panics will be In n better position tina
Xor many years to give satisfactory ser,
Nee to thslr patrons