Omaha daily bee., 1906-01-04
ES OF THE WORLD UPON NEW YORK
Radical Revision that Will Protect Policy
Holders is Suggested. D
AoRE THAN solvtNcy is DEMANDED
Every Element of Personal Gain from In
vestmsnts Should Be Eliminated.
SENATOR DEPEw is ASKED TO RESIGN
Resolution introduced in New York
Legislature Requesting His RE-
tirement Is Withdrawn
After Debate.

AFTER Debate.
ALBANY. n. Y. Jan. s.-The New York
state legislature started of with a rush
today. ASIDE from the reading in both
houses of the annual message of the gov
ernor, the most important DEVELOPMENTS
were the election of Speaker James w.
Wadsworth. jr., of Livingston. thus finally
closing one OF the most sensational sneak
ership campaigns of recent years and "A
long debate in the senate over Senator
Brackets resolution requesting the res
lgnation of United States Senator Chauncey
M Depew on the grounds of disclosures
in connection with the Equitable Life As.
surance society, which ended in Senator
Brackets withdrawal of the resolution
| for the time being.
report gained currency tonight that
Senator Brackets action in some WAY
represented the wishes of President Roose-
welt, Senator Brackett requests the As
sociated Press to contradict this rumor.
Message of Governor Higgins.
Governor Higgins message to the iegis-
lature, which was presented today, was
awaited with much interest because of
what he might say regarding the legisla-
tive investigation of the insurance COM
panies. The governor in his message urged
drastic insurance law and hinted at
the necessity of like investigation of
other forms Of insurance. The governor
| says:
The eyes of the world are now turned
toward New York, and II this Legislature
does not produce an insurance law winch
snail be drastic but practicable. radical
Dut sane, in "a spirit whcn snail be cour-
aseous but not hysterical, it will fail to
meet the expectations OF those who have
cohnuehce IN the ability of popular gov
| erhment TO solve Its own problems as they
arise
Future effective action by congress or
thc ueral government is not probable and
the possibility of such action should not
retaId for an instant the work OF the
While life insurance has received al
most exclusive attention, il cannot be as
sumed that other corporations dealing In
indemnity and investment contracts have
| been blameless, and "A word of caution may
not be amiss regarding assessment associa-
lions, accident insurance compan mics, CO.
operative ire insurance companies and the
( lTi>c. BETTER allow free ans uTieguiated
insurance than permit such concerns to
| exist under laws which do not protect
\ our citizens but enable the promoter OF
doubtful schemes to beguile the investor
| TO financial disappointment and fatten him
self on false promises and deluded hopes.
The policy holder now demands some-
| thing better from the state than a guar
| antee of solvency. lie has learned that his
| insurance will be cheaper and safer when
| the companies are compelled to invest their
| assets for his benefit exclusively, and ara
prevented from diverting funds to the in
! diVidual undertakings of speculative di-
rectors and to the payment OF vast sal
aries and eXOrbitant commissions, gratui-
| ties to men of influence. and contributions
| for political campaign purposes He IN
vokes the power OF the state to shield him
more effectively and to curb the companies
and their directors,
| Radical Revision Suggested.
You will be called upon to make a radical
| revision of the law for tho benefit OF in
veStorS In life insurance and for the regu-
| lation and restraint of the companies We
| may well consider at this time the eXpe-
| uiency of providing for more thorough
regulation by the Department of Insurance
| Under the new insurance law of Germany
| not only are thorough investigation and
publicity insured. but the government di-
methods of the corporation.
| We can learn mucn from z careful eX-
animation of this law, although some of its
! provisions may be deemed too paternal for
| our differing conditions of business and
political life, or Objectionable as leaving
too much to the discretion OF the insurance
The funds of insurance companies should
| be sacredly safeguarded for the policy
personal gain eliminated from their man.
agement To accomplish this result IL has
been suggested that large amounts ought.
| for the safety of the assured as well as fol
! the good of the community. to be invested
In bonds secured by mortgages on real es-
| tate at conservative valuation; that de-
posits with or loans to moneyed corpora
! tions should be subject to suitable restric-
tions; that the control Of subsidiary com,
| panies should not he permitted: that insur-
ancc directors should have no conflicting
| business connections; that investments in
| corporate bonds should be regulated so as
to prevent speculation and loss from an AT.
/ tempt To float doubtful enterprises. thar
policies should he of standard forms so that
! the abuses arising from ambiguity, COM
pleNity and incompleteness of the contract
may he eradicated and the contract made
definite in form and substance; that a uni.
nj
be prescribed by the insurance department;
that full publicity 10 poiicy-hoders should
be assured; that deferred dividend policies
! should be prohibited or greatly restricted, ,
that policies should be further safeguarded
from forfeiture; that an equitable distribu-
ton of the gains of the company to the
policy-holders entitled thereto should be re-
quired. that polcy-holders should have an
companies and that the discretion OF the
| directors should be subject TO judicial or
administrative review.
Session IL Remarkable.
The state legislature convened at noon
for the 18th session. under conditions
in some ways remarkable The closing Of
one OF the bitterest facUonal fights for
the assembly speskership in many years;
the expectation Of many that the defeated
faction would at once inaugurate a policy
OF reprisal; the understanding that at thu
opening of the session Senator Edgar S.
long heralded Joint resolution requiring tha
resignation OF United States Senator
Chauncey NJ. Depew; the intensity of feel
ing In many quarters resulting from tho
disclosures OF the Insurance investigation
all these things drew upon the opening ot
the session To-Day a degree OF public inter-
est greater and more evident for many
years past
There was very much more than the
usual interest also in the annual message
OF Governor Higgins TO the legislature,
which included important recommendation
as 10 life insurance, the mortgage tax
law. the savings bank surplus tax and
electoral reform.
Demands DeDew's Resignatfon.
Senator Bracket OF Saratoga. soon after
the legislature convened today. introduced
a resolution demanding of chauneey 81
Depew his resignation as United States
senator from this state. The resolution IN
fun follows.
Since the adjournment OF this senate the
| people OF the state and nation have beeu
I staggered ~ tbs reiaucn shown - haEs