The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1905-07-05
HIGH SALARIES
SHOULD NOT BE ENCOURAGED
IN KENTUCKY SAYS
INSURANCE
COMMISSIONER.
Would Bar Anu Company Which Pays
One of Its Officers Over $4,000
a Year.

/
annual report of State Commits
, sioner of Insurance Henry X.
/, Prewitt, now in course of prepare
ton, will contain recommends
ton of the General Assembly that
it enact at the coming session a
statue prohibiting from doing
business in Kentucky any compa-
ny which pays an executive officer
in its employ exceeding $780, 900
per year salary. This is but one
of a number of recommendations
which the Commissioner will
make of changes in the present
laws of the State governing insur-
ance companies and their right to
do business in Kentucky, and it is
expected that Governor Beckham
in his message to the Assembly
will have something to say upon
this subject.
Since the investigation into af-
fairs of the Equitable Society was
begun some months ago, Commits
sioner Prewitt, in conjunction with
Commissioner Folk, of the State OF
Tennessee, has been making gen.
eral investigation of the business
the larger companies doing bust
ness in this State. One matter
they have been especially investi-
eating is that of the salaries paid
to officers of the companies, and
they have a report from each of
the companies, made under oath,
showing the total of such expendi-
lures. These figures the Commits
sioner will be prepared to lay be-
fore the Assembly when it con
venes in support of his conten-
tion that no executive officer of an
insurance company "can earn"
500, 900 per year.
The paragraphs of the report
upon this subject, taken from adj
vance sheets of the report, read as
follows:
From an investigation of the
salaries paid the executive officers
of the different life insurance
companies doing business in the
State, and from recent disclosures
made in the life insurance world,
by the investigation of one of the
largest companies in the country, /
am convinced that a law should'I
be enacted in Kentucky, prohibit
ing any insurance company from
doing business in the State, that
pays any executive officer to ex-
coed $4,000 per year. Compar-
ing the salaries paid life insurance
presidents to the salaries paid the
chief executive officer of the Unit
ed States, l find in several in
stances that the salaries of life in
surance companies double that of
the salary of the President of the
United States, and are ten times
as much as that of the chief execu-
tive officer of any State in the
Union.
The salary Of the Chief Execu.
tive officer of the United States
and that of the States are fixed by
the people. The salaries of the
president Of insurance companies
are fixed by the officers or Board |
of Directors. 1t is useless to con-
tend that any man earns salary
of 800, 900 year, so it resolves
itself, after all, to question that
should be settled by the people.
Insurance is sacred trust. The
people of the State invest in insur-
ance companies chiefly for protec-
ton, and not in the sense of maxi
ing an investment; DESTROYS of
leaving fund at their death for
the protection of their wives and
children. 10 say the least of it,
it is wrong in principle that these
eXorbitant salaries should be taken
from this sacred trust fund, and /
would urge the Legislature to en-
act law to prevent any insurance
company doing business in Ken
lucky, that pays an executive Of
fcer an amount exceeding that
paid the President of the United
States. / am not sure but this
amount is exorbitant, taking into
consideration the duties involved
and the sacred trust fund from
L. -