The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-02-24
THE INSURANCE REPORT.

The report submitted on Thursday by
the committee of the New York Legis-
lature that made the sensational dis
closures and developments of graft in
the life insurance investigation, is
fairly up TO public expectations 1t
condemns faithfully the abuses dis
closed and makes specific recommend
ations for legislation that Will pre-
vent their recurrence And what a
shameful scandalous mass Of graft
and malversion of trust funds followed
in the wake of the lax practices to
which those abuses gave risel
The recommendations for legislation
are for the recognition Of the rights of
policy holders I'm mutual companies;
that they shall have an actual voice In
the selection of directors; and it urges
the compulsory declaration and distri-
button of dividends every year. 1t
makes many direct and admirable rec
concentrations for legislation, and does
not fail to condemn the participa-
ton Of the Equitable In the stock
jobbing deal which led TO the dispute
between Ryan and Hartman
OF all the recommendations by the
committee. which are all judicious and
wise, probably none would be more
far preaching IN beneficial effect than
the one which emphasizes the PROPOSE
ton that dividends should be declared
annually. Many would say that the
deferred dividend practice is the most
unwholesome practice OF all, and the
conspicuous mother of all evils. the
speculation evil, the auxiliary trust
and subsidiary company evil, the
grossly padded salary evil, the politi-
cal donation evil. and all other forms
OF unfaithfulness to fiduciary obliga-
tlons.
For, If the rightful dividend money
were distributed every year. as It
should be, there would be no such
quantities OF needless money on hand to
play hockey with: no enormous sums
that the officers of the company didn't
know what to do With except TO gobble
in the form of salaries for themselves
ana tnelr TSldllNeSr ana QlSSlpdle IN
gifts to politicians or pools.
One thing, however, we are gratlled
to note with unstinted satisfaction in
this committee report. That Is, the un-
qualified assertion that "in spite OF the
irregularities shown. there is no reason
TO question the solyency OF the Mutual
Life, the New York Life. nor the Equi-
table Life companies" This is precise
ly what we have been saying to the
policy holders in these companies. both
in general advice and In reply to spe
cihc inquiries The reason why this
been taking more from their policy
holders than there was either need or
taking or fairness in exacting. 1t is
this excess of demands on the policy
holders which has produced the excess
money that was squandered and un-
the statements Of the insurance mel,
that no more was required from the
policy holders than was necessary for
the safety OF life insurance business.
had been true, then Indeed would the
policy-hglders have had reason for
alarm; There would have been no mar
gin for the waste that prevailed, and
on that basis the companies would
necessarily be now in cramped financial
condition. But that statement was not
true far more was required from the
policy holders than was necessary,
therefore the squanderlng did not af-
feet the soundness OF the companies
The lesson is, there should be dimin-
ished requirements from the policy
holders, and life insurance should cost
far less than ii has cost In the days
when the officers received princely sal