Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-02-23

ing. authorizing or consenting to any such
contribution should be guilty of mis-
demeanor and the prohibition should be
eNtended 10 all corporate contributions or
Nothing disclosed by the Investigation
deserves more serious attention than the
systematic efforts of the large insurance
I legislation OF the state They have been
organized into an offensive and defensive
/ passage Of laws affecting not only insur-
ancc but a great variety of important in
/ terestS 10 winch through subsidiary COM
panies. or through the connection OF their
office. they have become related. Their
operations have extended Beyond the state
and the country has been divided into
/ districts so that each company might per-
/ form conveniently it's share of the work.
| Enormous sums have been expended I'm n
surreptitious manner. Irregular accounts
| have been kept to conceal the PAYMENTS
for which paper vouchers have not been
required. This course of conduct has
created a widespread conviction that large
portions of this money has been dishonesty
used.
Andrew Fields who represented both the
Mutual and the Equitable in legislative
department of the former company. re-
manned beyond the Jurisdiction during the
sessions Of the committee. The. general
| solicitor of the Mutual. TO whom the chair
man of the committed on expenditures
| entrusted large sums. died just before
the beginning of the investigation and APP
parently left no account as to how the
money had been spent. Andrew Hamilton,
who 81 Tts n ro years t5a ecei we'd upwards
]
the warrant of its president in connection
with its bureau of legislation and taxation,
has remained abroad and has failed to
render any proper account showing the
disposition of the money.
Cannot Trace Money.
The officers of the company say that they
have no knowledge of the uses to which
II was put. The officers of the Equita BILE,
from whom light might have been ex-
pected on the disbursements of their COM
ton or have been disabled by illness. On
account of the absence of the necessary
witnesses and the lack of proper vouchers
the committee has been unable To trace
the moneys said to have been dsbursed
In connection with legislation. But while
" is sufficiently evident that large sums
have been disbursed for improper pur-
poses, It is also clear that payments for
eonhdential outIays exempt from audit
Interpretations. They suggest the ne
ccesslly of requiring strict accounting
payments we'll as from the agents who
have received the moneys.
1t has been insisted that the insurance
companies, have been continuously
fnenaced by the introduction of improper
and Ill advised Legislative measures in
PEELED TO maintain constant watchfulness
and to resort to secret means to defeat
them An insurance corporation. however.
Ids position of peculiar advantage in
opposing any Legislative measure which
really antagonizcs the interests of policy
ho!der5. \ very large proportion OF the
insurance. 1t is easy for the company
to apprise them Of hostile legislative meas
state government exists for their protec-
ton. whose recommendations have rarely
ia.iCd 10 receive proper consideration in
Tie Legislature.
Interefcrcnce with Legislation.
1t is not a difficult matter to direct pub
lie attention to Objectionable bill af-
fectlng life insurance corpora tons, or TO
have opposing argument and criticism ef-
fectively presented. Again. If, in spite of
argument fairly and publicly presented, the
legislature insists on passing law inimical
to the true interests of the companies it
Is not the officers. but the policy holders
who must bear the loss, and the conse-
quences which can readily be pointed out
are almost certain to bring about an early
repeal of the obnoxious legislation. The
employment of agents to disburse large
sums and of clandestine methods to defeat
legislation is wholly inexcusable The
perntcious activities of corporate agents
in matters of legislation demand that The
present freedom of lobbying should be
restricted They have brought suspicion
upon important proceedings of the legis-
consequent assault The legislature owes il
to itself as far as possible to stop the
practice of the lavish expenditure of
moneys ostensibly for services in connec-
ton with the support of or opposition to
bills and generally believed 10 be used for
corrupt purposes The legislature should
taches to the progress of measures affect
ing important interests
Publicity Recommended.
The laws against bribery and corruption,
onences 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 penalties fun
publicity were regarded to moneys ex-
pended in connection with matters by the
legislature. Corporations should be
CURED to keep accounts and vouchers in
which all such payments should be fully
detailed and receipted for, and an adequate
statement regarding them should form part
~
In the case of insurance corporations
the remedy lies. first, generally within
of all expenditures and Vouchers, stating
In detail the purposes for which moneys
legislative matters have been expended.
And further. the company should be COM
PEELED TO set forth in its annual statement
TO the superintendent of insurance all sums
so disbursed, giving the names of the
payees, the amounts paid and the specific
purpose of the payment.
Professional services in promoting legis-
latlon may be entirely honorable and are
frequently necessary; We are not inclined
which will interfere with the presentation
to a legislator of the views of his con-
believe that where legislation is opposed
or promoted by paid professional advocates
the matter should be the subject of suit
able regulation.
publicity" for Lobbyists.
The committee therefore, recommends
that the legislative law be so amended that
every person retained or employed for COM
pensatlon as counsel, or agent, to promote
or oppose the passage of bills or resolutions
by either house or executive, approval of
such measures. shall, before entering on
the service file in the Office of secretary OF
state writing stating the name or names
OF his employer, together with a brief de-
scription of the legislative matter with
reference to which the service is to be rem
dered. The secretary of state should be
required TO provide docket to be known
as the docket Of legislative appearances"
with appropriate blanks and indices in
which the names of counsel and agent NAV
be properly entered. Fees contigent on leg
islative action should be prohibited IL
should also be made the duty of every cor
poration and association doing business in
the state within two months after the ad-
Journment of the legislature to file with the
secretary of state itemized statement
duly verified. showing in detail all expenses
paid or incurred in connection with legisla-
ton pending at the last session, Including
all disbursements or COMPENSATION paid or
payable TO counsel agents, Exception
may be made OF the duly accredited coun-
sci OF municipalities, public boards and
pubic institutions, and of the ordinary pro-
fesslonal services, in drafting bills or ad-
Vlslng clients as to the construction and
erect OF proposed or pending legislation
where the professional service is not other
wise connected with legislative action Vio-
lation or the law should be made a misde-
meanor and the failure TO file the state
ments required should subject the offender
TO appropriate penalties.