Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-02-22


sums have been expended in a surrep-
titious manner, and widespread conVic-
ton has been created that large sums
have been dishonesty used"
The Corruption Fund.
After calling attention to the fact that
Andrew Fields and Andrew Hamilton.
to whom large sums were entrusted
and unaccounted for, had remained
beyond the jurisdiction of the commits
tee. the report says: "On account OK
the absence of necessary witnesses and
the lack of proper vouchers. the COM
mittee has been unable to trace the
moneys said to have been disbursed In
connection with legislation But while
it is sufficiently evident that Large
sums have been disbursed for improp-
er purposes. 1t is also clear that pay
ments for confidential outlays exempt
from audit have furnished abundant
opportunities for misappropriations
They suggest the necessity of requir-
ing strict accounting from those who
are responsible for the payments, as
we'll as from agents who have received
the money. "Pernicious activities OF
corporate agents in matters of legisla-
ton, demand that the present freedom
of lobbying should be restricted"
Law Against Lobbying.
The committee recommends that the
Legislative law be so amended that
every person retained or employed for
compensation as counsel for an agent
to promote or oppose the passage Of
bills or resolutions by either house or
executive approval Of such measures,
shall before entering upon service, file
in the office of the secretary of state
in writing, stating the name of his en-
ployer. together with a brief descrip-
ton of the legislative matter, with ref
erence to which service is to be rend-
cred. The committee deems it inad-
visable to recommend that the legis-
lature attempt to prescribe the ex-
pendttures Of insurance corporations,
but suggests that the rate of commits
sions be uniform. Bonuses, prizes, re-
wards or other special Inducements
based upon the size Of particular poll
cies. or upon the aggregate insurance
written, should be prohibited. The
committee recommends that the law
be so amended so that minimum
standard for valuation Of policies other
than industrial should be established,
and so that the preliminary terms in
valuation of the policies issued after
1906 should not be permitted. The SUI
perlntendent of insurance should be
required to fix the legal minimum
standard.
Annual Dividends.
AS to rebates it is recommended that
the penal code be amended to provide
that person receiving rebate should
be equally guilty with one who gives
it. With regard to new policies the
provisions of the statutes should be
The committee recon-
mends an annual accounting and an
nual' distribution; the companies pro-
tecting themselves against fluctuations
in values by accumulation and reten-
tion of reasonable contingent fund
The committee believes the COM
panies transacting business upon
mutual basis should be forbidden from
writing non participating policies. As
suming that funds belonging to policy
holders through opportunities afforded
by deferred dividend contracts have
been wasted through lax and corrupt
administration and that the policyhold-
ers have been denied opportunities to
seek relief in courts, the committee
recommends the repeal Of the existing
law which provides that the action by
the attorney general should be a con-
dition precedent to order, judgment
OR decree for an accounting and that
the matter be left subject to the gen.
eral provisions of the articles Of the
code relating to actions against cor
porations.
Standard Policies.
The committee recommends adoption
Of standard forms Of policies, simple
in form, clear and concise in language,
to he approved by the superintendent
of insurance.
Publicity.
The report goes into the matter of
publicity of accounts of companies at
great length and recommends that an
nual reports should contain statements
of transactions. all properties owned,
loans, commissions legal and legisla-
tive expenses, salaries, balances, death
claims, profits and losses, dividends,
rates, and all manner of funds. The
report recommends that violation of
any provision of the law be made a
misdemeanor. The committee recon-
mends that further powers be conferred
upon the insurance department and
then says: "Most of the evils which
have been disclosed by the investiga-
ton would have been impossible had
there been vigorous performance of
duties already laid upon the depart
ment. vigilant watchfulness in the in
terest Of the policyholders and cour-
ageous exercise of the powers which
the statute confers."
One Of the most important laws reg
ulating mutual companies recommend
ed by the committee looks to giving
to policyholders the opportunity to elect
an entirely new board of directors as
soon as provisions of such law can be
made applicable. To that end the COM
recommends special act to be
passed Immediately, providing for ex-
piration of the terms of office of exist
ing directors of such companies on the
fifteenth day of November next; that
the annual meetings which would 9TH
erwise be held at an earlier date should
be postponed to that time In this
way it will be possible for lists of pol
icyholders to be filed under the stat
ute, for nominations to be made and
for policyholders to cast their votes
in person, by proxy. or by mail. All
existing proxies should be declared
void, so no proxies should be voted at
such election other than those which
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