The Dickinson press., 1906-03-17


and recommendation to the New York
state Legislature is at least scathing
rebuke upon the prevalent methods of
the big life insurance companies.
Whether the legislation it desires will,
greatly improve the situation is doubt,
stringent though that legislation is in
important points.
The recommendations are as follows:
/. More direct control of mutual COM
panies by policy-holders. This is to be
encouraged by the publication of lists of
policy-holders, making proxies non
renewable, and by the privilege of
groups of policy holders to nominate
tickets of officers, which must be pub
lished by the company.
2. Such prohibition of investments as
shall make it impossible for trusts and
pools to use the surplus of the COM
panies.
3. No company allowed to write more
than s15o,ooo,ooo of new business a year.
This is to check the growth of the
largest companies who are supposed to
be the worst sinners against the public
interests.
4. Contributions to political purposes
are prohibited and the accounts are to
be kept So that any transgression of this
requirement can be easily detected.
5. All salaries above $1,000 year are
to be fixed by the full board of trustees,
not by special committees.
E. Agency commissions are to be put
on uniform percentage basis. No
bonuses or prizes are to be allowed, with
restrictions of renewal commissions
which must end after four years from
the original writing of the policy.
7. Equal punishment to receivers as
to granters Of rebates. As not one agent
in 1000 has been punished for giving
rebates contrary to laws that have long
existed in most states, this provision is
not as terrible as it sounds.
8. Policies must continue in force after
lapse of premiums as long as any sur
fender value remains. -,
9. No deferred dividends. ~
10. All policies issued by mutual COM
panies to be participating.
II. Instead of the i.llumerable differ
ent forms of policy by which the public
is confused and so deceived, only four
forms shall be permitted, Wis: straight
life, the same with premiums p., ID f"r
only term of years, endowment ..ud
term for short periods.
IL. Full and definite annual reports.
| I3. Fuller publicity and detail in all
other accounts of the companies.
The committee also recommends tha,
the annual meetings of the companies
be postponed until fall, when full boar 8
of directors shall be chosen. This will
invalidate all proxies given to Thomas
Lawson.
Thorough as these recommendations
would have seemed year ago, they are
now criticised as not going far enough.
The abuses of industrial insurance are
not met and these are the worst abuses
of all, since they increase the cost of
insurance to the poor. There is no
limitation, either, of the big salaries.
While the rank and file of policy-holders
are given greater facilities to express
and enforce their wishes, it is hardly
possible that SO large and various a
body as the policy-holders of great life
insurance company will ever have much
to do with the business management
What they cannot do, it is felt that the
state should do for them to greater
extent than is contemplated by the Arm
strong committee.
1t is in vain that one tries to discover
in these recommendations a prospect of
reduction in the price of life insurance
in America, so out of all bounds in COM
parison with the rates that prevail in
Europe. The limitation of investments,
though necessary on account of the COM
plicity Of the companies with speculat-
ors and monopolists, hardly seems cal
culated to increase the income of the
companies. The wasteful and expen.
sive commission system to agents is
retained with the same temptation tc
rebates for the rich with the resulting
increasing expense to the poor. Indeed
the public is beginning to ask, "Wha>
sense is there in solicitation to life in
surance any more than for the invest
ment of my surplus in savings bank?"
After all this turmoil, what has beer
gained for the people? The affairs o
the Equitable are in the hands of Ryan
The investigation of the Mutual Life
by its directors is bowling farce, and
every decent man refuses to be con
cerned in it, while the new president
Peabody, is hopelessly discredited, the
proved tool of the nonopolies. Some
, scoundrels have been exposed and have
died or are dying from modification
] Ru+ o+hnre .ra yoadv <r taL> thar III c>o