The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1906-11-16

Inis action on the part of the gov
ernor was taken after an examination
maze or the state records. In which
was computed the amounts of money
PAID out by Alabamians during eight
years TO the five life insurance COM
panles doing the leading business In
the state, and also the amount of
money returned to the citizens of the
state during the same time. This
| computation showed, the statement
said. that in that time the five COM
pdnSes collected S14,000,O00, paying
Deck only $5,000,000, a condition which
mad resulted in drain upon the state
OF more than $1,000,000 a year for
those companies alone.
The statement made by the govern
or in throwing himself into the con-
troversy on life insurance matters fol-
| lows in full:
"A careful person has taken the
trouble to compute from the records
In the office of the secretary of state.
the money paid out by Alabamians in
eight years to the FIVE life insurance
companies doing the leading business
IN Alabama, and also the money re-
turned to citizens of the state in the
same time. He learned that the CON-
panies collected $14.00O,0O0 in that
time and paid back to the state S.
| 100000, being gain to them and a
drain on the state of more than ST.
100000 year for the five companies
alone.
Two of the companies considered
in this figuring are the New York Life
and the New York Mutual. 1t was by
the illegal or improper holding of
their part Of this nine and other mil
lions that the two companies have
been able to pile up together $3.50, 000,-
900.
"A fight is on for this vast sum-
Many people who have gained for
tunes by keeping it together or refus-
] ing TO pay it out to policyholders want
a further lease of life. The admin
lstration ticket in both cases are I'M
doubleday related in the old crowd:
where change has been made in a
director 1T was hardly more than in
name. L have no policy with either
one OF the companies, but l am sure
1t is in the interest of such holders to
vote a change.
1T has been said that the anti-ad-
mfnistration crowd will be as bad as
the administration ticket That can
hardly be true. Those who kept up
with the showing made by the Arm
strong committee cannot conceive of
that being likely or even possible
Hundreds of millions were denied the
policyholders in premiums, while
these vast sums were used to bull and
bear propositions in which the policy
holders were interested Not only
were the dividends denied rightful
claimants, but their own money was
used to depress property holders of
these same claimants. A change can
not possibly hurt the policy holders.
On the contrary, it would recommend
the two companies to the good opin-
ion of the general public which they
greatly need. Not only so, but future
boards of trustees will know that they
can be turned out, and this will sure
ly mean feeling of greater RESPONSE
bility by the board to the owners of
the company. That lesson is worth
everything.
IF the administration ticket wins
out, then there will be no future like
fight in our day. l believe that the
policy holders fight in that case will
be lost, practically forever"
Speaking of the matter, Governor
Jelks said:
Il have taken this step because of
the interest feel, and which believe
the majority of people are taking. in
the management of the great mutual
life insurance corporations. The cleo
ton of new boards of directors for
the companies in question, to my
mind, is a matter of prime impor-
lance. Unless some check is placed
upon the administration of the large
companies, there is not likely to be
any change in the method of con-
Quoting the affairs of the companies.
On the other hand, if new board of
directors should be elected, in addi-
ton to procuring new men for the di-
rectorship, the policyholders will
have impressed upon them they owe
a responsibility to their Office. If the
directors are made to feel that they
may be removed at any time, they
will exercise their Offices with more
care and more consideration for
those who have placed them where
they are.