The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-31

within the $3.50 900, 900 a year limitation,
those are domestic companies. and as TO the
rest it seemed advisable TO the committee
to adopt this policy: Let the State OF New
York make the New York companies the
best in the world; let the New York legisla-
ton be of such character that 1t will be
attractive to the Legislatures OF other states.
"There is one change in regard to political
contributions where the punishment OF
the corporation is eliminated and the PUNISH
ment Of a stakeholder, officer. employee
or agent who is privy to n such contri-
button in any way is substituted The
provision against lobbying remains In the
bills.
Section OF in the original bill, providing
for a uniform loading on premium and
endowment policies, has been eliminated.
The committee new plan enforces re-
trenchment where there has been misman-
agement, and yet it provides sufficient Tor
an economically managed company. II
the company finds it cannot give the agents
proper commissions it will have to cut ex-
penses by retrenchment at the home Office.
Many agents have written to the committee
saying such a law would be a good thing:
Regarding the ascertainment and dis
tribution of the surplus, the
adheres to the policy that there shall be
only annual dividend policies. Existing
policies cannot be affected, but in the future
domestic companies will only write annual
dividend policies, and companies doing
business in the State will IN future only
write annual dividend policies.
Hereafter there will be no deferred
dividend policies issued in this State,
but only annual dividend policies, with
annual distribution, and the p~olcyhoider
can take it in cash or have 1t accumulate
he wants to get it. Deferred dividends
are alluded to in this n only. that
after being declared they an be left with
the company: a..
"Tbe standard forms Of policies are re-
tanned and remain substantially "a they
were. Only important change is that
they apply to domestic companies only.
The committee believes lit will he but a
short time before the New York standard
form will prove to he the standard in in
surance throughout the States.
THE provisions compelling full reports
of the financial operations Of the company
to be filed with the State Insurance Depart
ment is retained, and it must include the
salary paid every salaried official.
Concerning the contingent reserves
there was a good deal of talk OF fixing a
definite sum Of SIS, 900 900 as a contingency
reserve, and after that it should be 5 per
cent. In looking over the list the sliding
scale was thought to be a Just one until S
per cent. was Tea ched, and there it was the
time to stop. But in order that by no pos
sibility il should ever be said that anything
that was don in this legislation tended to
the insecurity Of the p~olioyholder. it is pro-
vided that in any year the Superintendent
of Insurance might provide an additional
contingency reserve for varying reasons,
such as if a panic was going on or cholera
or any condition that requires an extra
amount Of risk
Senator Armstrong says the bills remain
as they originally were in their substance
and purpose, and that they have not been
emasculated or weakened in any respect.
The suggestion that the bills would have
hard Shedding getting through the Senate
has disappeared and the impression about
legislative halls was that there would be
little if any opposition manifested.
Il am we'll satisfied with the bills as they
now are" said MIR. Hughes. Il believe
they reach the situation in a correct man.
ner. OF course, l am not a prophet, and as
to whether they will stand the test of time
that remains to be seen. The Legislature
sits annually for the purpose Of correcting
matters that need revising