Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-02-22
: IH[ INSURANCE
REPORT IS kAD[
PUBLIC TODAY
Recommendations Made to New
York Legislature as Result OF
the Investigation
DRASTIC LAWS ARE URGED
DRASTIC LAWS ARE URGED
Plan Which Will Insure the Policy.
holder a Voice in the Election of
Officers Of Insurance Companies
Favored-Law Restricting Lobbying
at the Capital Suggested.

Albany, Feb. 22-The report Of the
Armstrong special insurance investi-
gating committee was presented In
both houses Of the legislature today.
It was accompanied by eight bills de-
signed to carry into effect in detail the
recomm mendations Of the committee. In
d statement made to newspaper men
before the presentation of the report,
Senator Armstrong said he hoped to
have passed before April 15 bill
which will 6efer the annual elections
in mutual companies from April 10
to November Is. This, it is believed,
would nullify all proxies obtained up
to this time by Thomas W. Lawson
and the polcyholders' committee OF
state governors and others, as we'll as
those which the management of the
companies themselves have been gath
ering through their agents.
New York, Feb. 22.-The report of
the joint committee Of the New York
state legislature appointed to investi-
gate the affairs of life insurance COM
panies, made public today, covers a
printed pamphlet of 319 pages. There
are fifteen companies organized under
the laws OF New York issuing level
tn - ety, y,or1n In.
stance only the committee departed
from the policy Of limiting its investi-
cation to companies organized under
the laws Of New York This company
was the Prudential Life Insurance
Company Of New Jersey. The COM
mittee recommends that the insurance
laws be so amended as to permit for
nation, under certain restrictions
hereunder, Of mutual corporations
without capital stock to transact the
business Of life insurance; to prohibit
in future Incorporation of companies
upon the cooperative or assessment
plan, or allowing foreign companies of
that sort not already transacting bus
mess In the state to enter the state.
Mutual in Name Only.
Concerning the so-called mutual
companies, the committee says: Not
withstanding their theoretical rights.
the policy holders have little or no
voice in the management. Entrenched
behind proxies easily collected by sub
servient agents and running for long
periods. unless expressly revoked, the
officers Of these companies have oc-
cupied unassailable positions and been
able to exercise despotic power. The
ownership Of the entire stock of an un-
mixed stock corporation scarcely could
give a tenure more secure. The most
fertile source Of evils in administra-
tion has been irresponsibility of Of
ficial power. However much this may
be expected in case of absolute stock
control, in that of mutual company
it proceeds from fragrant disregard of
the law Of its being. While it would
be plainly unwise that the manage
ment Of life insurance company
should be rendered unstable or that its
personnel should be frequently chang
ed, It is OF the first Importance
that the officers should realize
their direct responsibility 10
those whom they represent and
should rely for their continuance in
office upon proved efficiency and not
upon the practical inability of the pol
1cyholders to depose them"
A plan is recommended for the nom
viding that each policyholder shall
3,oVy fA A,
the committee recommended mutuali-
zation.
On the subject Of investments of life
insurance companies, the committee
after declaring against "syndicates"
recommends that the law be amended
so as to provide that no investment
in the stock Of any corporation shall
be permitted, except in public stocks
and municipal corporations. The COM
mittee recommends limiting the
amount of new business which each of
the larger companies may take, to
$15O, 100000 year; that no company
doing business in the state, except in
dustrial companies, shall issue policies
in excess of certain prescribed limits.
Eliminate Politics.
Contributions by insurance corpora
tions for political purposes should be
strictly forbidden, and passage Of an
drastic measure to rem
edy this evil is recommended. Regard
ing lobbying, the report says: Moth
ing disclosed by the investigation de-
serves more serious attention than the
systematic efforts of the large insur-
ance companies to control a large part
~ tho LEGISLATION of tho state Thew
have been organized into an offensive
and defensive alliance to procure or to
prevent the passage of laws affecting
not only insurance. but a great variety
Of important interests to which. thru
companies. or thru the con-
nections Of their officers. they have
become related. Their operations have