Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-22

of hostile legislative measures, and In adj
dition q department of the state govern
ment exists for their protection. whose
recommendations have rarely failed TO re-
ceive proper consideration In the legislature
1t Is no difficult matter to direct puoiic
attention to an Objectionable bill affecting
life Insurance corporations. or to have OPP
posing argument and criticism effectively
presented Again. IL, In spite of argument
fairly and publicly presented, the iegisla-
ture insists upon passing law infTnical to
the true interests of the companies, ii is not
the officers, but the policyholders, VINO
must bear the loss. and the consequences.
which can readily be pointed out, are al
most certain TO bring about early repeal
of the obnoxious legislation. The employ
ment of agents to disburse large sums and
of clandestine methods to defeat legislation
is wholly inexcusable.
Pernicious Activities.
The pernicious activities of corporate
agents in matters of legislation demand
that the present freedom of lobbying should
be restricted. They have brought sus-
picion upon important proceedings of the
legislature and have exposed its members
to consequent assault. The legislature owes
it to itself far possible TO stop the
practice of the lavish expenditure OF mon
eys ostensibly for services In connection
with the support of or opposition to bills
rupt purposes.
The legislature should free itself from
the stigma which now attaches to the
progress of measures affecting important
interests The laws against bribery and
corruption. offenses which are difficult of
proof, are sufficiently stringent, but an
effort should be made to strike at the root
of the evil by requiring under proper penal
ties fun publicity with regard to moneys
expended in connection with matters be-
fore the legislature
Corporations should be required to keep
accounts and vouchers in which all such
payments should be fully detailed and re-
ceipted for. and an adequate statement re-
gardlng them should form a part of such
reports as may be required
The question of the lobbying evil was
dealt with at length in the report and it
was said In effect that the sole necessary
remedy for this, as for a good many other
eyils, was publicity. Paid and Interested
adVoca ties of insurance companies wishing
to influence legislation should be required to
appear publicly before the appropriate com
mittee. and any other attempt to influence
legislation should be adjddged INSIDE
meanor. Fees contingent upon legislative
acton. it was declared, should be pro-
hibited.
Salaries and Expenses.
AS to salaries and expenses, 1t was the
opinion of the committee that It was i'm
practicable to fix these by legislative en-
actment, but it was recommended that
wherever the salary was in excess of. say
5000 per year, it should be fixed by the
whole board Of directors and not by any
subcommittee or executive officer, and a
statement of the amount should be pub
Hshed in the annual report of the slIperin-
tendent of insurance.
The expenses of obtaining new business
The committee thought should be limited
ana there was general plan outlined with
TINS In view. Loans and advances to agents
III no tlrO
1t is recommended that the law as to re-
bates should be so amended that the per-
son receiving one Should be equally guilty
with the one giving it
The committee recommends an annual
accounting and annual distribution the
companies to protect themselves against
fluctuations in value by the accumulation
Of a reasonable reserve fund.
Assuming that the funds belonging TO
policy holders through the accumula ton of
deferred dividends have been wasted
through lax ard corrupt administra ton.
AMI that the share Of policyholders has
been determined by secret and arbitrary
methods, the right and method of bringing
suit against the companies are to be lib
eralized
A long section is devoted to the neces-
sity for publicity, and it is provided that
annual statements open to each policy
holder shall state the amount of real es-
tate held, the purchase price, the amount
of money loaned and to whom on what
security. the amount of interest and
many other points of financial nature
that would make clear just what the
company was doing with it's funds, points
all of which have been brought out in
the recent investigation.
Ample powers are recoElrn ended for the
punishment of offenses against the insur-
ance laws, and especial recommendation
is made as to the proof of perjury. But
the committee thinks that the present
law Is almost if not quite ample for the
publication of the insurance business If
1t We're enforced in the proper spirit. The
report says on this point. in conclusion
Most of the evils which have been dis
closed by the investigation would have
been impossible had there been a yigor-
Gus performance of the duties already
laid upon the department, Yigilant
watchfulness in the interest of policy
holders and courageous exercise of the
powers which the statute confers."