New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-23
CONTROL FOR POLICYHOLDERS
LET THEM VOTE OR MAKE INDEPENDENT NOMINA-
TIONS-TERM OF DIRECTORS OF MUTUAL
COMPANIES SHOULD EXPIRE NOV. IS.

Of 100000. and the business of which has beer
that the society committed TO the mutual prin-
oa that s stockhoers S had no interest in It's
| surplus. and yet the purchase by prominent
OF $4,000 depite an unequivocai statement Of the
! absence Of selfish intention and the immediate
trustees under a plan inviting the cooperation of
policyholders in the choice of directors, awakened
no little public protest, and was viewed as matter
| or serious concern by other financial interests
The manner in which the stock of the Provi-
! dent Savings was acquired some years ago,
largely through the use of the company's own
funds, and the efforts to secure control of the
Bankers Life, as prominent feature OF an
| investment company, point clearly to the
ing privileges, as Inviting speculative purchases
with an eye to the benefits which may directly
or indirectly flow from the control of the bust
ness and property of such corporations.
The policyhoIders. while having only contractual
rights, are not in position to Withdraw without
they have engaged in venture and contributed
their money for the success of corporation with
pOoes It is but ust S Te y Of the peca
nature OF the Institution they should be admitted
this should be accomplished by direct permission
OF law, without compelling those who are DESTROYS
method OF voting trust which necessarily, under
Wills the eonstit1tionaiify Of siFins to policy
holders the right to vote for directors in st4 3
stockholders has not specifically been adiudged the
Of the Second Department in the case of Lord VS..
L1uitabie Life Assurance Society favor the con-
VOTES FOR STOCK DIRECTORS.
While tho determination of it's validity must
necessarily be left to the courts the committee
believes that all doubt of legislative intention
should be resolved by amending the law as to
confer upon the directors of stock life Insurance.
corporations an unmstakabie authority TO grant
to polieyhoders the right TO vote for directors,
and thus to have that voice in management TO
which their PrePonderate interests justly entitle
them.
1t seems to the committee that an amendment to
directors OF life insurance corporations with capt.
tai STOCK authority 10 confer upon pohcyholders
of a majority OF the stock. and the committee
Feoommends Whenever the Voting privilege shall
open lists nominations and ballotng, as In the case
Of mutual companies. should become applicable.
RETIREMENT OF STOCK.
to give 9 70 pocyhodeTs the ght po Voa bnt an
opportunity should be afforded for conversion into
believe that this conversion should be made COM
Of its accomplishment upon just basis If desired
by the parties in interest After the stock has
at the beginning Of business and the comsany has
retired and the company be managed exclusively by
snd n 1 the OF the poeyhoideTs this object
ST. o,LeI HorGs, Ing law shoula PFoEioe ihet me
9ne fg ne Te9e upon a Sa eq@taoie plan pro-
amount as may fairly be taken 10 be the value OF
the stock with reference to its par value, the divi
dends lawfully payable thereof, ana the eventual
right, II any, OF the stockholders in any accunula
tons OF the company. and without imparing the
eventual rights OF the pocyholders in such accu-
mutations.
Provision should be made for the contamination
OF the plan only after shall have been adopted by
a majority of the directors and approved at a
meeting OF stockholders called for the purpose by
a vote representing the majority OF the stock and
shan also have been approved in writing by the
Superlntendent OF Insurance and by majority OF
the poicyholders voting at a meeting of policy
holders called for the purpose under the supervision
Of the superintendent and at which policyholders
shall be entitled TO vote in person. by proxy by
mall The superintendent should be instructed 10
withhold his approval unless the company upon
reincorporation and after the retirement of its
stock under the proposed plan Shall retain funds
sufficient to maintain its deposit with him and to
meet all liabilities, including its legal reserve ac-
cording the valuation of Its policies and ali sur
plus funds and accommodations the amount
agreed 10 be paid to the stockholders.