Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-07-20

v Albany July 20.-Both houses u
.s,r,s,at,,ra adopted q joint resolution
,,rov,5;np for appointment Of speclai
committee to investigate the iiie M
.nrs,,c,. companies and appropriaaeu
$4,000 for expenses
Albany, N. r. July 2O.-eiovernor
irr,ro,ns this afternoon sent to the
j legislature "a message recommending 9
FOR It's consideration the appointment
of i ioint commission to investigate
the buedness of life insurance as carried
on In this state
Albany, July. 2o.---In calling the at
tention OF the legislature today to IN
surance matters the governor says:
.IJnfortunate scandals recently made
public by the internal dissensions IN
the Equitable Life Assurance Society
and BY comprehensive investigation OF
It's affairs by the superintendent OF in
suranee have not without just cause
aroused feeling Of intense alarm In
the breasts OF thousands Of our citt-
zens who have invested their money
] IN politics OF life insurance and of
thousa nds OF non-residents who have
been taught to respect New York
companies as safe and secure. While
the business OF life insurance as at
present conducted is subject to- state
supervision and regulation for the pur-
pose OF guaranteeing solvency and full
fillment of contracts on the part of the
companies, it is evident that, evils and
abuses may exist under our law; that
the earnings which should be credited
to the policy holders may be diverted
to otter purposes; that expenses of
operation may be exiravagant and
swasted.ul; that unwise investments
may lie legally made, and that truss
tees may deal Indirectly with trust
funds for their personal advantage.
That such condition of affairs can
exist reflects discredit upon the state.
The state owes duty to the policy
holders and benef1ciaries beyond that
of comparing assets and liabilities and
permit tting companies to justify their
existence by exhibition of a satisfac-
tory balance sheet and prompt pay
nient OF losses. Investments must be
restritted, salaries must be limited to
amounts bearing closer relation to
the commercial value Of services, rem
dered: Trustees must be held to a
strictt.r accountability and policyhold-
sers must be given more effective
share In the government Of compan-
aeAn
It may be well that the harsh and
arbitrary remedy OF dissoultic< and
receivership should be made not only
summary check upon a solvent COM
the play thing OF lawless greed. The
state cannot permit the subjects OF its
supervision to exist as licensed prodi-
gals ef other peoples money. We cam
not jlldge all life insurance companies
4 by the sins of one. We should not de-
stroy the, edifice to rid ourselves OF
vermin that infest 1t, nor should we
Kill the patient to stop the progress Of
disea.,e. Revision Of our insurance
laws is necessary, but 1t should be
made with calmness, deliberation and
Intelligence, and after careful investi-
CATION" Speaking Of Superintendent
Hendricks investigation Of the Equit-
able the governor says that within
the scope of his authority and the linn
its Of his time the superintendent has
performed his duty with impartial
thoroughness'
in the senate Senator Armstrong
imme diate.y introduced concurrent
resolution providing for the appoint
ment tof a special joint committee to
undertake an investigation.