The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-02-23
Legislative Report on Inyesti.
CATION Scores the Big
Life Companies.
FINDS THAT MUCH COIN
is PUT INTO POLITICS
Urges Enactment Of Laws to
Control the Companies and
Curb Officials.

ALBANY, N Y, Feb. s2.-The report
of the Armstrong special insurance In
yestigating committee was presented
in both houses OF the Legislature to-
day. 1t was accompanied by eight bills
designed TO carry into effect In detail
the recommendations of the committee.
In a statement made to newspaper
men before the presentation of the re-
port. Senator Armstrong said he hoped
to have passed before April Is the bill
which Will defer the annual elections
In the mutual companies from April
Is to November.
This it Is believed. probably would
nullify all proxies obtained up to this
time by Thomas w. Lawson and the
policy holders committee OF State Gov
ernors and others. as well as those
which the management OF the compa
MES themselves have been gathering
through their agents.
The report of the joint commit
tee OF the Senate and Assembly OF
the State of New York appointed
to investigate the affairs OF the
life insurance companies covers
printed pamphlet OF 3ls pages.
After reciting the resolution author
iZins the work and the plan adopted
for the investigation by the committee.
each individual company is passed In
review. There are fifteen companies
organized under the laws of New YORK
issuing level premium policies and In
single instance only the committee de-
parted from the policy OF limiting Its
investigation TO companies organized
under the laws OF New York This
company was the Prudential Life In
surance company OF New Jersey.
Headings of Report.
The matters demanding the consider
! alton OF the Legislature for the pur-
pose of remedying existing evils and or
! establishing more securely the busl-
! ness of life insurance I'm this State are
grouped under the following heads:
! l-Organizntion of life insurance cor
porations
2-Control. or the rights of policy
| holders in the election of directors.
3-Retirement OF stock.
4.-Investment including syndicate
participations.
5-Limitation OF new business.
| 6-Polltical contributions.
Lobbying.
s Limitation OF expenses.
| Valuation OF policies.
l0-RebateS.
ll.-Surrender values
| l2-Ascertainment and distribution or
| surplus.
13-RemedIes of polIcy-holders. or
| right to resort TO the courts.
| 14.-Reforms or policies.
l5.-PublicIty and State supervision.
16.-Penaltles
Organization of Mutuals
The committee recommends that ar
! ticle IL OF the insurance law be so
! amended as to permit the formation
hereunder OF mutual corporations
without capital stock TO transact the
| business of life insurance and for such
| other purposes as are authorized TO be
connected there within the case of
stock corporations: provided, at least
five hundred persons have subscribed to
| become members therein in the aggre
gate amount OF at least 81 100000 to be
Insured upon their lives and shall have
each paid in one full annual premium
In cash upon the insurance subscribed
for. and provided further. that 1t shall
make the same deposits with the super
ntendent of insurance that are re-
ouired of stock corporations formed for
similar purposes.
Foreign Mutuals Barred.
Section 200, permitting the incorpora-
tion of companies under the co-opera-
tive or assessment plan, should be
amended so us not TO permit such COM
panies to be incorporated In the future
already transacting business In this
State should not be permitted TO enter
the State
Concerning the So called mutual COM
panies, the committee says;
Abuses by Officials.
Notwithstanding their theoretical
rights policy holders have had little or
no voice In the management. IT.
trenched behind proxies easily collected
by subserVient agents and running for
long periods unless expressly revoked.
the officers of these companies have oc-
cupied unassailable positions and have
been able to exercise despotic power
Ownership of the entire stock of en
unmiXed stock corporation scarcely
could give a tenure more secure. The
most fertile source of evils In admins
tration has been irreSpoaSibllity OF ON
cial power. However much this may
be expected In the case of absolute
stock control I'm that of a mutual com
pany. 1T proceeds from fla2rant d'sre-
gard OF the law of Its being While it
would be plainly unwiSe that ;he man.
agement of life insurance company
should be rendered unstable or that
it's personnel should he frequently
changed, IL is of the first Importance
that officers should realize that their
direct responsibility to those wnom they
represent and should rely for their con- =
tlnuance In Office upon proved efficiency
and not upon a practical inability of the
policy olders to depose them.
With these objects In View. the fol-
lowing plan is recommended:
Rights of Policy Holders.
at least 1--WE months prior TO each
election, lists OF policy-holders having
at least $1,000 OF insurance In force,
properly classified by States aud coun-
ties. giving names and addresses. he
tween the amount OF insurance. should
be filed with the Superintendent OF In