The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-31
WAY To INSURANCE
REFORMS IS NEXT
Remarkable Inquiry with It's Far
Reaching Results Is Now
Ended.
By Publishers Press.

committee headed by Chairman Arm
strong, came to close here this eve
ming. The report Of the committee will
be given to the legislature shortly after
the opening next Wednesday.
Just what that report will contain
no man knows. It is certain, however,
that the revelations. made as to the
methods of the life insurance COM
panies have resulted in such reforms
and in pointing out SO many evils to
be remedied, that changes will be made
within the next, six months which will
safeguard the interests Of the policy
holders in the future. >.,-r.-' -.. ...e-
The pivotal feature in the investiga-
ton just closed has been Charles
Evans Hughes, the chief Investigator
Of the committee. Thru his efforts the
searchlight has been turned on the
operations Of the insurance companies,
revealing conditions which had been
unthought Of before the investigation
began.
Unearthed by Hughes. ii
Irregular and illegal business deal
ings on the part of the companies, the
juggling Of accounts for "window
dressing' purposes, syndicate opera
tions for the individual advantage Of
the officials Of the companies, wrong
full investment Of the funds Of such
corporations, contributions to cam
paign funds from the money Of the
NEUTRALITY-SUSPICIOUS. and scores Of
other wrongful practices have been
dragged to the light by Mr.. Hughes.
Abuses too many to enumerate have
been shown up.
During the progress Of the investi-
cation, inexpicable conduct on the part
Of the life insurance companies heads
and the gross. ineompetency on the
part of the officials connected with
the state insurance department have
been made public. Regulations have
been blasted. Men who held high po-
sitions in the business world have been
driven out Of public life. Facts have
been developed which may lead to the
criminal prosecution of men who have
stood as models of business righteous
ness in the eyes of the world.
How to Stop Evils. . ..-~
The future work Of the committee
will be to point out how the evils
brought to light may be eradicated
and what steps should be taken to safe
guard the interests of policyholders in
the future, to make repetition Of the
scandals impossible. This will be at
tended to in, the report, which will be
drawn as soon as possible -. :. -. : ~.
AS direct result Of the investigation
some good has already been accomplish
ed and some changes have been wrought
in the big insurance companies. The
Equitable, over whose scandal the in.
vestigation arose, has a new head. The
Mutual likewise has a new president
The young prodigy who in a large meas
ure directed the gigantic operations OF
the New York Life also has given uI
j., his position. '....,,
Another result has been the institu
tion Of retrenchment plans by several
Of the companies. Under the new man
agement the Equitable promises to re-
duce its expenses by hundreds Of thou
sands Of dollars each year. The Mutual
likewise, is preparing to put into effect
changes which will save it's policy
holders enormous sums every year. The
retrenehment policy will in all prob
ability be adopted by every other com
pany. $3.50 BE- :-:@
Care Over Investments. 49,
AS another result of the, investiga
ton, more care of the investment of as
sets Of the companies is being exe1
cised. Methods of investment whicl
hitherto have been resorted to in tn
future will be tabooed. Syndicate OF
ertious in which the companies and OF
fcers of the same participate jointl
will hardly be tolerated. So that fifty
five days Of actual work which hav
been devoted to- the investigation hav
not been wasted. The cost, while grea
to the state, has been good invest
ment Of public moneys.
| With all the developments Of the IL
vestigation there is not member Q
the committee that feels as if the wor
had much more than commenced. Ths
six months more could be- given to tn
subject without exhausting It is a.
knowledged. That enough has bee
brought out to make it possible t
bring about large reforms is regarde
as certain. For that reason member
Of the committee are not sorry to hay
the investigation close. II.
Sensational to the Last.
, Even to the last moment the invest
cation was not without sensational d.
velopments. Today's proceeding
brought out one additional fact. TIL
, was that the Equitable had successful
lodged the law in regard to. rebatin
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