Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-22

poration. Lists also open TO Inspection OF
polieyholders within each state and foreign
country should be filed at the general
agencies OF the company in sucn jurisd!cr
lions Voting should be limited to those VINO
have been insured at least one year before
the election, and whose policies are stitl III
force when the election Is held.
The board of trustees or directors should
annually nominate candidates TO be voted
for at the next election. and should ME us
nominations with the superintendent OF IN
surance at least four months before the
election together with designation or per
sons to receive proxies to vote Tor sucn
candidates IL should also be provided that
any group of one hundred members should
be privileged to make and file with me
superintendent independent NOMINATIONS, ~
yether with names OF persons who VIII re-
ceive proxies to vote for the candidates
at least three months before the election.
Every PoHcyholder Notified.
THE corporation should be required at
least two months prior to the election to
mail to each poleyholder notice of the
election together with suitable ballot con-
taining the names of all the candidates
whose nominations have been duly filed,
with properly addressed envelope Enclosed
for the return of the ballot.
1.-THE periods above mentioned have been
fixed in order to give opportunity to reach
distant polcyholders. Votes should pc
limited to the nominated candidates and
suitable provisions should be made for new
nominations, and the casting of votes under
proxies, in. case Of the death or incapacity
OF any person nominated. Provision should
also be made for the proper custody OF
ballots received by mail and disinterested
persons should be appointed to act as In
spectors of election"
As to stock companies the committee
recommends naturalization.
On the subject of the investments of life
companies, the committee after declaring
against syndicates,' recommends that the
law be amended so a s pTOVidp:
Investments In Stock Companies
l. That no investment in the stock of
any corporation shall he permitted except
In public stocks of municipal corporations
2. That investments In bonds secured to
the extent of more than one-third of the
value of the entire security therefor by
the hypothecation of corporate stocks shall
be prohibited.
3. That no loans shall be made upon
stocks and bonds which are not the sub
Ject of purchase under the above pro
visions.
4. That every company now owning
stocks or bonds of the prohibited classes
snali be required TO dispose of the same
WITHIN hve years from December 81 1906
ana each year prior thereto shall make
Ieuuctlon of the amount of such invest
nents TO an extent approved by the super-
lntendent of Insurance
o. me statute should also forbid all
N''NN PAL tltlpdIOnS, transactions for
purchase and sale on joint account and the
making OF any agreement providing that
the company shall withhold from sale for
any Time or subject to the discretion Of
o'h"rs, any securities which it may own or
acquire '"' VI
o. 1t also should be provided that no
ulnter or director should be pecuniarily
interested either as principal coprinrinaj
agent or beneficiary in any purchase. sale
or loan made by the corporation, except in
case OF a loan upon his policy
New Business Limited.
a committee recommends limiting the
amount of new business, which each of the
larger companies may take to s150. 100000
year. and that no company doing bust
ness In the state. except the industrial com
paHies, shall issue policies in excess Of
certain prescribed limits
contributions by insurance corporations
Tor political purposes should be strictly
forbidden. Neither executive officers nor
directors should be allowed TO use the
moneys paid for purposes of insurance in
support of political candidates or plat
forms. The devious methods taken to CON
ceal the payments of this sort are con-
LESSONS Of their Illicit character They
illustrate the manner in which executive
officers have treated the funds of the com
pany virtually as their own, abusing their
power 10 disburse them without proper
accounting.
Whether made for the purpose of SUD-
porting political views or with the desire
TO obtain protection for the corporation
these contributions have been wholly I'M
justitiable. In the one case executive Of
ficers have sought to impose their political
views upon a constituency of divergent
convictions. and in the other they have
been guilty of a serious offense against
public morals
Political Contributions.
The frank admission that moneys have
been obtained FOR use in state campaigns
upon The expectation that candidates thus
aided I'm their election would support the
interests of the companies has exposed
both those who solicited the contribu-
lions and those who made them 20 severe
and Just condemnation.
The committee recommends the passage
OF an unequivocal and drastic measure
to remedy this evil.
Not only should IL he expressly pro-
hlblted and treated a waste Of cor
porute moneys, but any officer director
or agent making, authorizing or consent
ing to any such contribution should he
guilty of a misdemeauor and the pro-
hibition should be extended to all corpo-
rate contributions Of this character.
The Lobbying Evil
Nothing disclosed by the investigation
deserves more serious attention than the
systematic efforts of the large insurance
companies to control large part of the
legislation Of the state. They have been
organized into an offensive and defensive
alliance To procure or to prevent the
passage of laws affecting not only insur-
ancr. but q great variety of important
interests To which, through subsidiary
companies or through the connections Of
their officers they have become related
Their operations have extended beyond
the state and the country has been di-
vided into districts so that each company
might perform conveniently its share of
the work
Enormous sums have been expended In
q surreptiuouS manner. Irregular ac-
counts have been kept to conceal the
payments for which proper vouchers have
not been required. This course of conduct
has created q widespread conviction that
large portions of this money have been
dishonesty used. Andrew G. Fields, who
represented both the Mutual and the
Equitable in legislative matters and was
in control of the supply department Of
the former company, remained beyond
the Jurisdiction during the sessions of
the committee
No Account Of Moneys Spent.
The general solicitor Of the Mutual. to
whom the chairman OF the committee on
expenditures iutrusted large sums died just
before the beginning Of the investigation