Rock Island Argus., 1906-02-22
Insurance Investigation
Facts Basis of Rec
concentrations.
TO new YORK SOLONS
Law Proposed Postponing Elec-
tions Would InvaIidate All
Proxies so Far Collected.

Albany. y. 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.
To Postpone Elections.
In a statement made TO newspaper
men before the presentation of the re-
port, Senator Armstrong said he hoped
to have passed before April 10 bill
which will defer the annual elections
in mutual companies from April Is to
Nov. Is.
NuIIify All Proxies.
This, it is believed, probably would
nullify all proxies obtained up to this
time by Thomas W. Lawson and the
policyholders' committee of state gov
eTnors and others, as well as those
which the management of the compa-
nies themselves have been gathering
through their agents.
Is VoIuminOus Report.
II, II u.
ance investigation committee today
submitted its report to the New York
legislature. 1t is a voluminous docu-
ment encompassing in its investiga-
tion OF 10 companies organized under
the laws of New York and the Pruden
tiaI Life or New Jersey.
Allow Mutual Corporations.
The committe recommends that the
insurance laws be SO amended as TO
permit the formation under certain re-
strictions Hereunder of mutual corpo-
ration without capital stock to trans
act the business of life insurance; to
prohibit in future the incorporation of
companies upon cooperative or assess
ment plans Concerning the so-called
mutual companies, the committee says:
Have Little Voice.
Notwithstanding their theoretical
right, policyholders have had little or
no voice in the management Entrench-
ed beside proxies easily collected by
subservient agents and running for
long periods, unless expressly revoked.
officers of their branches have occu-
pied unassailable positions and been
able to exercise despotic power The
most fertile source of evils in admin
istration has been irresponsibility of
official power"
Plan for Elections
a plan is recommended for the nom-
ination and election of officers, provid-
ing each policyholder shall have a
vote. As to the stock of companies.
the committee recommends mutualiza-
ton.
Governing Investments.
On the subject of investments of life
insurance companies. the committee
after declaring against the syndicate"
recommends that the law be amended
so to provide no investment in stock
OF any corporation shall be permitted
except in public stocks and municipal
corporations. The committee recon-
mends limiting the amount of new
business with each of the larger COM
panies may take TO $3.50, 100000 year,
and that no company except industrial
companies shall issue policies in excess
of certain prescribed limits.
No Political Contributions.
Contributions by insurance corpora
tions for political purposes should be
strictly forbidden, and the passage of
an unequivocal, drastic measure to
remedy this evil is recommended. Re
garding lobbying, the report says:
Control Legislation.
Nothing disclosed by the investiga-
ton deserves more serious attention
than systematic efforts of large insu:-
ance companies to control large part
of the legislation of the state. They
have been organized into an offensive
and defensive alliance TO procure or tOl
prevent the passage of laws affecting
not only insurance, but great variety
of important interests to which.
through subsidiary companies, or
through connections of their officers,
they have become related"
Could Not Trace Money.
After calling attention to the fact that
Andrew Fields and Andrew Hamilton,
to whom large sums were entrusted
and unaccounted for, had remained be-
yond the jurisdiction of the commit
tee, the report says:
"On account of the necessary wit
nesses and lack of proper vouchers,
Continued on Eighth Page)