The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-02-22
Conclusions of Empire State Legislative
Committee at Last Made
Public.
Eight Bills Are Framing to Make Life
Insurance Companies Protect
Policyholders.

Albany, N. Y, Feb. 22.-The report
of the Armstrong special insurance in
vestigating committee was presented in
both houses of the Legislature today.
1t was accompanied by eight bills de
signed to carry into effect in detail
the recommendations Of the committee.
Senator Armstrong made a statement
in which he said that counsel for the
committee, Mr.. Hughes, Mr.. McKeen
and himself, had worked on the bills
until clock this morning and had
not then finished their labors. He asked
leave for the committee to submit a
supplemental report which will con-
tain the proposed forms. Of the stand
ard life Insurance policies to be pre-
scribed by law. He promised this re-
port next week.
There will be a public hearing on
mittee itself on Friday, March 9, in the
assembly chamber. -
Blow for Lawson.
In statement made to newspaper
men before the presentation Of the re-
port, Senator Armstrong said he hoped
which will defer the annual election
in the mutual companies from April
Is to Nov. Is. This it is believed,
probably would nullify all proxies OBJ
tanned up to this time by Thomas w.
Lawson, and the policyholders' com
mittee Of state governors and others,
/ as well as these hich the management
| Of the companies themselves have been
gathering thru their agents.
! The report of the Armstrong com
mittee. covers 319 pages Of a printed
pamphlet.
Each individual company is passed
in review. There are fifteen companies
organized under the laws Of New York
Issuing level premium policies, and in
a single instance only the committee
departed from the policy Of limiting
it's investigation to companies organ
Iized under the laws of New York. The
company was the Prudential Life In
Isurance company Of New jersey. -
H.. Remedies and Needs. -
| The matters demanding the consid
Grafton Of the legislature for the pur
pose of remedying the existing evils
and Of establishing more securely the
! business of life insurance in this state
are grouped under the following heads
First Organization Of life insurance
corporations.
Second-Control, or the rights Of pol
icyholders in the election Of directors
Third-Retirement of stock.
FouYth-Investment, including syn
: dictate participations.
Fifth-Limitatio of new business.
-Sixth-Political contributions.
Seventh-Lobbying. 1924.
Eighth-Limitation Of expenses.
Standardization Of policies.
Tenth-Rebates. - --=
Embellishments values.
!. Notwithstanding and distr1
. button Of surplus.
! hirteenth-Remedies of policyhold
!: ers, or right to resort to the courts.
. Observation-Disclosures Of policies.
Fifteenth-Publicity and state 81
!: pervision.
5 Sixteenth-Penalties
: ..- Mutual Corporations.
. The committee recommends that al
!. ticle eleven Of the insurance laws b
!: so amended as to permit the formatio
. Hereunder of mutual corporation
:. without capital stock, to transact tn
. business Of life insurance and for sue
!. other purposes as are authorized TO 9
!. connected Herewith in the case
!. stock corporations; provided, at leas
. become members therein in the aggr
. gate amount of at least 81 100000
s be insured upon their lives, and sha
!. have each paid in one full annual pr
+. MUM in cash upon the insurance SUI
!. scribed for, and provided further, th'
!. it shall make the same deposits wit
: the superintendent Of insurance thu
!: are required Of stock corporation
s formed for similar purposes:
!. Section 200, permitting the inco
!. poration Of companies upon the coo
: / ant Mo
!: amended SO as not to permit such COZ
s panies to be incorporated in the futur
:. and foreign companies Of this sort n
s already ,transacting business in tn
!. state should not be permitted to emit
!. the state.
!. Policyholders' Rights.
!: Concerning the so-called mutu
+. companies, the committee says:
!. notwithstanding their theoretic
s rights, policyholders have had little
/. no voice in the management.
/. trenched behind proxies easily collect
s by subseryient agents and running +
long periods, unless expressly revoke
. the officers of these companies ha
!: occupied unassailable positions a
/. have been able to exercise despot
. power. Ownership of the entire sto
Of an unmixed stock corporate
3 scarcely could give tenure more
cure. The most fertile source of ev
!: in administration has been irrespon
!. bility of official power. HoweS
!. much this may be expected in the ca
!. Of absolute stock control, in that of
!. mutual company it proceeds from
. fragrant disregard of the law of
being.
ssWhile it would be plainly UNIV
. lthat the management of a life insura1
company should be rendered unstable
~ that its personnel should be frequen