Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-01-03
INSURANCE SCANDAL REASON.
People Staggered by Relation
Shown to Exist Between Him
And the Equitable Life.
Gov. Higgins IN His Message Dwcils at
Length OH the Insurance Question
And Need of a New Law.

Brackett of Saratoga, soon after the
legislature convened today, introduced
a resolution demanding OF Chauncey vi.
Depew his resignation as United States
senator from this state. The resolution
IN full follows:
Since the adjournment of this sem
etc the people of the state and nation
have been staggered by the relation
shown TO have existed for years be-
tween the Equtabl Life Assurance So
ciety and Chauncey NJ. Depew, one of
the senators OF the state in the United
States Congress.
Recognizing that these disclosures
have caused a total lack OF confidence
IN the ability of the senator named 10
properly represent the people in the
body to which he was elected.
Resolved, by the senate, that Chaun-
cey M. Depew be and hereby is request
ed to forthwith resign his seat in the
United States senate"
GOV. HIGGINS MESSAGE.
Albany, N. Y, Jan. s.-The state leg
islature convened at noon today for the
one hundred and twenty-ninth session.
under conditions In some ways re-
markable. The closing OF one OF the
bitterest factional fights for the as
sembly' speakership In many years;
the expectation of many that the de-
feated faction would at once inaugu-
rate policy OF reprlsal: the under
standing that at the opening OF the ses-
sion Senator Edgar S. Bracket of sar-
atoga would Introduce his long herald
ed joint resolution requesting the resg-
nation OF United States Senator Chaun-
,ey NJ. Depew. the intensity Of feeling
IN many quarters resulting from the
disclosures OF the Insurance investiga-
tlon--all these things drew upon the
opening Of the session today a degree
OF public interest greater than for many
years past.
lhere was very much more than the
usual interest also In the annual mes
sage or Gov. Higgins to the legislature
Whlch included important recommends
lions as TO life insurance, the mort
gage tax law. the savings bank surplus
tax and electoral reform.
Inc governor. in his message, says
Inc eyes OF the whole world are now
turned towards New York and II
,nls legislature does not produce an in
furance law which shall be drastic.
spirit which shall be courageous but
not historical, It will fail to meet the
expectations OF those who have conf
uehce IN the ability of popular govern
inent to solve its own problems as they
arise.
Future effective action by Congress
or the federal government Is not prob
able, and the possibility OF such action
thouid not retard for an instant the
work OF the state.
While life Insurance has received
almost exclusive attention. It cannot be
assumed that other corporations deal
ing IN indemnity and investment con-
tracts have been blameless, and a word
OF caution may not be amiss regarding
assessment associations, accident in
burance companies, cooperative fire in
suranee companies and the like. Bet
Yer allow free and unregiated lnsur-
aloe than permit such concerns to ey.
~ under laws which do not protect our
QUEENS, but enable the promoter OF
uouptfud schemes to beguile the in
Nestor TO financial disappointment and
tatten himself on false promises and
deluded hopes.
The policyholder now demands
something better from the state than
guarantee OF solvency. He has learn
eu that MS Insurance will be cheaper
hu SAFER When the companies are COM
PEELED to invest their assets for bis
neneht exclusively and are prevented
rom diverting funds to the individual
Undertaking Of speculative directors
suu 20 the payment OF vast salaries ami
cNorpltant commissions, glatuities to
men oil influence and contributions for
poilicdl campaign purposes He in
ohes the powers of the state to shield
nm more effectively and to curb the
companies and their directors.
You will be called upon to make a
Iaulcal revision of the law for the bene-
Nv OF investors in life insurance and for
.ue regulation and restraint OF the com
panles. We may well consider at this
ume me expediency OF providing for
more thorough regulation by the de-
Iartment of insurance. Under the new
insurance law OF Germany not only are
thorough investigation and publicity
,sured; but the government director
sStually enters into the business meth
VI OF the corporations.
we can learn much from careful
elimination of this law, although some
W Hs provisions may be deemed too
taternal for our differing conditions OF
business and political life or objection
soe as leaving too much to the dlscre-
"on or the insurance department,
Inc funds OF insurance commands
mould saoredly be safeguarded for The
poncyholders by the state ana every
cement or personal gain eliminated
NJ, ton ,neir management. To accomplish
ils result u has been suggested that
isi amounts ought, for the safety of
ne insured as well as for the good of
ivy community, TO be invested In bonds
eueo by mortgages on real estate al
s :. value, that deposits with
nuns TO monied corporations should
~ subject to suitable restrictions, thar
Ne control OF subsidiary companies
snouiu not be permitted; that Insurance
ntetors should have no conactIny
business connections that fnvestmemts
corporate bonds should be regulated
r., as 10 prevent speculation and loss
I'm an attempt TO float doubtful en-.
,,pi,ses' tRat policies should be Of
i r, sn forms 80 that the abuses aris-
s ron ambiguity, complexlty and in
oonpleteness Of the contract NAV no
10. and the contract made defi-
80 W FORM and substance; that a mi
sbo,,,, system of audits and accounts
S sug oe prescribed by the Insurance
srNrtment: that full publieitv tn no,-
R}AulQers phout1 ~ -. ~ wv