New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-23

The committee declares unequiVocally TOT 'ii'
full control Of mutual companies by the pohcE'
holders and advises that the terms of the pres
ent directors OF such companies. since they were
not elected by the pocyhoders. shall expire Oh
November 10. after which date the polieyholoers
shall elect new directors. The comnlluee pe-
lieves that policyholders heretofore have peeh
nonentity so far as elections OF directors anu
trustees have been concerned. II WOULD give
them the right to make independent nominations
and force the companies to inform them seven
months in advance OF the election OF the names
OF the candidates.
The committee advises that stock insurance
corporations be empowered by law 70 allow poi
icyholders to vote for directors. and believes the
law should give such companies the opportunity
10 become mutual companies. the part o. 'ie
report dealing with these subjects says: "An
existing proxies the committee holds, should he
declared void"
MUTUAL AND MINED CORPORATIONS
siye OF assessment companies and fraterna socie-
ties) organized under the laws Of THIS STATE i41l
the Mutual the New-hork Lite me -NECuS I,,t,,sl
serve and the Security Mutual are purely iIa -
companies in four others the Aainin it siihough
stock corporations policyholders are entitled 70
provisions qualifications ana manner OF Eo,
Ing the pocyholders wolld II ihey eAerCseo r Hl
companies, while bare majority IN iuII1yet LSPi
sent more than tWo-thirds OF the outstahdIng ~,
suranco. exclusive of industrial policies written
by the fifteen companies.
Notwithstanding their theoretical rights, pol
icyholders have had little voice in the
MANAGEMENT lntrenched behind proxies, easily
collected by subservient agents and running Tor
Iona periods, unless expressly revoked. the Off
GERS of these companies have occupied unassah-
able positions and have been able TO exercise
desPotic power.
Ownership Of the entire stock OF unInxed stock
corporation scarcely could give tenure more Sc
The most fertile source OF evils IN admins
traiion has been iITesponsi5ility or ofcla poMed,
However much this may be expected IN me case
psnV IN Iroceeds from a fragrant disregard Of the
isSWa; Of its being.
The end to be attained is to provide the means
for free and effective expression of the wish
Of the poIicyholders at all times, and partcu-
larry In an emergency, and 70 destroy the ma
chinery BY which in the past they have been rem
dered ell but helpless.
boI6er e0n c6s 2 os dTeoy for heir rus
should be retained and that in case il becomes
ton of their interests they should not be tram
melled by any reference 10 geographical or other
il has. also been suggested that all voting BY
committee 70 be en- N advised remedy. -
not Only shouq the iicy1qlaer not De ostra an
vote directly but Re should be privileges to com
his vicinage by giving proxies TO trusted agents
desired, exercise their authority according TO their
On The other hand, It is the judgment of the
committee that proxies should not only be revoca-
be az pleasure but should be required TO be given
within two months of the election, and should be
valid only for that election. AL existing proxies
But while policyhoider should be limited to
S0ting IN person or by mail there seems to be no
70 vote in either Of these ways if he so desires
and voting IN this manner may properly be confined
purpose.
PUBLIC LIST OF POLICYHOLDERS
Policyholders should have appropriate means of
they may readily communicate with each other and
is candidstes 50 that her g1scsa6 o1iq qr name me
once 81 director may be discussed and appraised
tgll opportunity should be Afforded for direct and
ne company should be compelled TO place IN The
nSnas o. every policyboder ballot containing the
putty or an attempt 10 foreslsll opposition BY The
subsequent substitution OF an inferioT ticker The
nominated IA d prescribed manner.
With these objects in view. the foIIo,viro MIA,
IS recommended; Al least five months prior to
t esen eIsStIon, lists Of policyholders having at
ited by States and countries. oivino names and
actresses but not the amount OF insurance
snoula be hled with the Superintendent of In
sursnce, ane similar lists should be open TO in
sPectron at the home office of the corporation
LISTS also open 20 inspect of policyholders
within each State and foreign country should be
'leo az the general agencies Of the company in
such jurisdictions. The above Limitation Is 20
tne amount OF insurance will serve to exclude the
hoiaens OF Industrial policies, who in the Metro
politsn company number several millions
Voting should be limited to those who have
been insured ct least one year before the election
sno whose policies are still in force when the
election rs held. The board of trustees or direc-
tors shoUld annually nominate candidates TO be
voted for at the next election, and should file its
nominations with The Superintendent of lnsur-
snee al least four months before the election,
together with designation of persons to re-
eeive proxies 10 vote FOR such candidates.
X should also be provided that any group of
one hundred members should be privileged TO
make and file with the Superintendent indie
penoent nominations, together with names Of
persons who viii receive proxies TO vote for the
candidates, at least three months before the
election.
The corporation should be required at least
two months prior 20 the election to mail TO each
polieyholeer notice OF the election, together with
suitable ballot containing the names Of all the
candidates whose nominations have been duly
hieo, with properly addressed envelope inolosed
for the return Of the ballot.
oUSTING OF PRESENT DIRECTORS.
The present directors Of mutual life insurance
companies in this State have been elected without
the actual participation IN their selection of any
considerable number OF pohcyholders. Il Is
portant that an opportunity should be given 10
ne Poicyholoers TO elect entirely new boards OF
recommended be MADE applicable
To that end the committee recommends that "a
special act should be enacted provid no for the
expiration OF the terms Of office Of existno d.
nectors OF such companies the 18th day OF
November next, and that the annual nnee.inos
which would otherwise be held at an earlier date
should be postponed to that time. IN this way il
will be possible for lists Of poicyEolders 10 be
and for the poicyholders ther votes in per-
son by or ~ m sb5u "a ssy may
thai no proxies should De voted a. such election
within two months prior thereto. The first election
should be under the supervision o: The Superin-
appoint inspectors Of election and see that IL ts