Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1906-01-03

Albany. Jan. Gov Higgins mes
sage TO the legislature. which was pre-
sented TO that body today. was awaited
with much interest because of what he
might say regarding the Legislative in
vestigation of insurance companies.
The governor. in his message. urged a
drastic insurance law, and limited AZ
the necessity of like investigation for
other forms of insurance The COVER
nor said:
World is Looking.
The eyes of the whole world are
turned towards New York, and if this
legislature does not produce an insur-
ance law which shall be courageous.
but not hysterical. it will meet the ex-
pectation of those who have confidence
in the ability of popular government TO
solve it's own problems as they arise.
Future effective action by congress
or the federal government is not prob
able and the possibility of such action
should not retard for an instant the
work of the state.
While life insurance has received
almost exclusive attention. il cannot
be assumed that other corporations
dealing in indemnity and investment
contracts have been blameless, and
wise action may not be amiss regard
ing assessment associations, accident
insurance companies, cooperative fire
insurance companies. and the like.
Better No Regulation.
Better allow free and unregulated
insurance than permit such concerns
TO exist under laws which do not pro
tect our citizens, but enable the pro-
moter of doubtful schemes to beguile
the investor to financial disappoint
ment and fatten himself on false prom
ises and deluded hopes.
1.-The policy holder now demands
from the state something better than
a guarantee of solvency. He has learn
ed his insurance will be cheaper and
safer when companies are compelled
to invest their assets for his benefit
exclusively, and are prevented from
diverting funds to individual under
takings of speculative directors and
the payment of unjust salaries and ex-
orbitant commissions. gratuitieS to
men of influence and contributions for
political campaign purposes. He in
vokes the power of the state to shield
him more effectively and curb insur-
ance companies and their directors.
VIII Ask Radical Law.
You will be called upon to make a
radical revision of the law for the ben
eft OF investors in life insurance and
for the regulation and restraint of the
this time the expediency of providing
frt- 90 ha
department of insurance.
Cleveland Rebate Referee.
New York, Jan. 3.-Ex-President
Grover Cleveland has agreed to serve
as rebate referee" for the three big
life insurance companics-the Equit-
able, the Mutual, and the New York
Life. Mr. Cleveland will, so to speak,
be the court of last resort in the settle
ment of all disputes between the COM
panief and their agents, or between the
companies policy holders in reference
TO rebating cases.
Mr.. Cleveland will receive for his
services a salary of s12, 200 year, to
be paid jointly by the three companies
named above The late Thomas b.
Reed served in a similar capacity for
the luEeC DAS companies ShOINiy dltci
his retirement from congress, but the
Office was discontinued by the COM
panies.
Changes Official Status.
Persons familiar with the life insur-
ance situation express the opinion that
the naming of Grover Cleveland as re-
bate referee. is only the first step in
a movement which may result in max
ing the ex-president the most power
full factor in the reorganization of the
life insurance business. These persons