Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-01-08
GOV. CUMM|NS
|. ON INSURANCE.
Recommends Enactment of Laws
For Better Protection OF
PoIicyhoIders.
THE RAILROADS AND POLITICS.
Want Caucus and Convention Pre-
served as They AtIord Better Chance
To Dominate MARS OF the State.

Des Moines, la, Jan. Sat o'clock
today join. soxron OF the house and
senate was held, and GOV. Cummns'
biennial message was read
There has been much discussion OF
life insurance among the people IN
general during the last two years. II is
just beginning TO be a little understood
by the pollcyholders, The opportuni-
ties for dishonesty and extravaganza
have been 80 fully exploited In the IN
T'estgations recently carried on IN New
York that the public mind is eugrossod
With the inquiry. what can be done
to insurance fidelity and protect those
who have contributed the immense
sums now IN the possession Of the in
surance companies?
This state long ago adopted the poll
Icy OF requiring all It's life insurance
companies doing business upon the le-
gal reserve plan to deposit securities
with the state treasurer In an amount
not Less than the legal reserve for
the protection OF the polcyholders. II
cannot be doubted that this Is a wise
system. We have seen that the pos
session OF great volumes OF securities
which can be changed. manipulated
and used for individual profit and utter
Tor purposes, presents temptation that
most men cannot resist, and constitutes
q menace that ought not To be perpet-
uated | believe. therefore, that nom
this time forward all Old line life IN
surance companies organized under the
LEWIS. of other states and desiring TO
carry on business in the state OF Iowa.
should be required To deposit with the
state auditor. seouritles equal in
amount 10 the legal reserve upon the
policies issued uron the lives in this
state. for the protection of such policy
holders, the deposits To continue until
the state IN which the company Is or
Ranized shall require deposit OF the
entire legal reserve with some state
officer, at which time our auditor should
transfer the securities go placed with
him TO the officer Of the state In which
the company Is organized. n a few
states would adopt this plan, II would
result In every state, having insurance
companies, requiring the deposit.
Another grave defect In the meth.
DDS OF life insurance Is the accumnla-
ton of so-called surplus, which, In
great measure at least, represents de-
ferrei dividends. The surplus so en-
isting Is not reckoned as liabilities for
the reason that no policy, so far as !
have been able TO ascertain. contains
any more positive assurance OF dlstrl-
button than that the pollcyholder shall
BE- entitled to such share OF the surplus
as the directors OF the company may
determine. The whole scheme of de-
fcrred dividends has a tendency to lead
the business away from the field OF tn
vestment-a tendency which is ALTO
gether too prominent, and which should
be checked by snch rea Sonable regua-
tons as can be prescribed without In
juring the legitimate enterprise OF In
surance. II seems to me that every
consideration OF safety and fair-deal.
ing requires that the surplus 10 be
credited or paid 20 participating policy
holders shall he ascertained and paid
or otherwise disposed OF every year. |,
therefore. recommend that the law he
50 strengthened as to require an annual