Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1906-09-28


wealth of the United States. II ne
would stop for moment to consider
the Importance, then, Of the insur-
ance question Z in It's relation to our
business affairs and to life itself,
think we will all agree that there IL
need for the greatest care and watch
fitness upon the part Of state officials
that every public interest along this
line be safeguarded and protected.
The state of Minnesota is to be con-
graduated over what 1t has accom-
plished in the field Of insurance dur
ing the past two years. Before my
Inauguration. my attention was called
to the uncertain and unsettled condi-
lions Of one of the great life insur-
ance companies doing a business
throughout the entire western coun-
try, with it's central organization and
home Office in this state. It was shown
me that by reckless 'extravagance and
a total disregard Of the interests of the
policy holders, the persons in control
Of the organization and the manage
the confidence of the people. there
problem was one requiring great
ability, conservative judgment, and
unquestioned integrity, and it is a
pleasure now to feel and know that
the man selected for the position Of
insurance commissioner Of Minnesota
was not only equal to that occasion,
but has become a leader in the insur-
ance reform (which is agitating the
entire country.
do not propose to discuss the vari-
GUS and specific acts of the depart
ment of insurance further than to say
that through the efforts of the insur-
ance commissioner, Thomas D.
O'Brien, the company referred to was
stopped in it's mad course toward
bankruptcy, placed on sound con-
servative business basis, and the as
sets preserved to the thousands Of
people who had invested in it their
savings. Through the efforts of the
state, the company has been reorgan-
lied and set of honest and efficient
directors and officers installed; the
former officials, recreant to their trust,
have been indicted and In part con-
victed; the interests Of the policy
holders have been protected; the COM
pany itself preserved and strengthened.
and Minnesota saved the shame of q
financial scandal.
The department in like manner has
supervised the business of other in
surance companies whose home Of
flces are located within the state, and
unsafe and unsound companies either
have been directed toward safer
methods and put upon a safe busi-
ness foundation, or have been required
to suspend their charters. It is safe
to say, and doubtless will not be ques-
toned, that there never has been that
general care and efficient supervision,
that thorough-g going investigation and
at the same time constructive super
1ntendence, OF insurance affairs with
In the state of Minnesota, as during
the past two years.
Nor have the efforts of the admin.
istration been confined to the insur-
ance situation within our own state.
BY reason Of its activity. energy and
Intelligent management Minnesota
has become pioneer in the movement
for Insurance reforms within the ma
ton, and to such an extent that the
governor of Minnesota and the insur-
ance commissioner appointed by him
were approved and commended by
Theodore Roosevelt, president of the
United States, in a message to con-
gress upon the insurance question, in
which due credit was given for our in
terest and work along this line.
Such large proportions Of the in
surance in force in Minnesota is writ
ten by companies organized in other
jurisdictions, that 1t has been neces-
sary for the insurance department to
extend its activities beyond the
boundaries OF the state. When the
scandals disclosed in New York in the
early portion Of 1905 made the policy
holders Of the large New York COM
panies solicitous as to the solvency
Of those companies. the Minnesota
department, in conjunction with four
other state departments, entered upon
an examination Of the affairs Of the
New York Life Insurance company.
That examination occupied many
months and established the entire
solvency of the company, so that it
was feh that the policyholders could
await with entire, serenity the result
Of the movement to secure a general
reform and uniform laws upon this
important subject. Under my direc-
ton, the insurance commissioner Of
this state proceeded to Washington
and requested President Roosevelt to
1naugurate such movement and he
promptly instructed the superintend-
ent OF insurance for the district Of
Columbia. to cooperate with us. The
result was a representative gathering
ut Chicago on February last, in
which thirty-two states of the Union
were fully represented.
The good effect Of this conference
cannot be overestimated. It first
strengthened the advocates Of reform
then contending in the legislature ct
the state Of New York. Through a
committee Of fifteen, which !, as chair
man Of the conference, appointed, uni
form bills adopted by all the states
generally along the lines Of the bills
proposed by the Armstrong COMMITTEES
In New York, have been prepared and
at recent meeting Of that commit
tee held in the city Of st. Paul, 1t ap-
peared that the committee had per-
elStently and intellipent1v continued