The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-02-22

company should De rendered HAiStdDAs
or that its personnel should be ire
quently changed, it is of the first inn
pOrtance that officers should realize
that their direct responsibility Is to
those whom they represent and should
rely for their continuance in office
upon proved efficiency and. not upon
practical inability OF the pOlicyhoiders
to deDOse them.
The Committees Plan.
with these objects in view. the fol-
lowing plan is recommended: At least
five months prior to each election, lists
of policyholders having at least $1,000 of
/ Insurance in force, properly classified
by states and countries, giving names
and addresses, but not the amount OF
Insurance, should be filed with the super
intendent Of insurance and similar lists
should be open to inspection at the
home office OF. the corporation. Lists
also open to inspection OF pOltcyholders
within each state and foreign country
should be filed at the general agencies
of the company in such jurisdiction
Voting should be limited to those who
have been insured at least one year De
fore the election and whose policies are
still in fierce when the election IS neiu.
The board of trustees or directors snOulu
annually nominate candidates to be
voted for at the next election and should
file Its nominations with the superin-
tendent of insurance at least louI
months before the election together win
E X
les to vote for such candidates. II ShOuIu
also be provided that any group OF one
hundred members should be privileged
to make and file with the superinLeLO-
emf independent nominations, tosetaeI
with names of persons who viii receive
proxies to vote for the candidates, at
! least three months before the election.
1.-THE CORPORATION should be required
at least two months prior to tne eiec-
ton to mail to each pOhcyhOIder nolice
I of the election, together with su1ta pie
ballot containing the names OF all the
candidates whose nominations nave
been duly filed with properly addressed
envelope fnclosed for the return OF the
ballot. The periods above mentioned
have been fixed in order to give oppOr-
tunitv to each distant pohcyholder-
Votes should be limited to the nonl-
mated candidates and suitable pro-
visions should be made for new nOmf-
nations and the casting of votes under
proxies in case of the death or the in
capacity of any person numbered
Provision should also be made for the
proper custody of ballots received py
mail and disinterested persons should
be appointed to act as inspectors OF
election.
As to stock Companies.
AS to stock companies the commit
/ tee recommends mutualization
On the subject of investments of life
insurance companies, the committee
/ dlLGI QEClaLlIE against ~ AAA4Aelleo
recommends that the law be amended
so to provide:
THAT no investment in the stock
/ of any corporation shall be permitted
except in public stocks of mutual cor
pOratiCns.
THAT investme nts aud bends Sc
cured to the extent Of more .ha1 one
third of the value Of the entire security
therefor by the hypothecation of cor
I pOrate stocks shall be prohibited.
g-Fhaf loans shall made
upon stocks and bonds which are not
the subject of purchase under the
above provisions.
THAT every company now owning
stocks or bonds of the prohibited class
shall be required to dispose of the
same within five years from December
( 81, 1906. and each year prior thereto
shall make a reduction Of the amount
/ Of such investments to an extent APP
I proved by the superintendent of insur-
ance
5.-The statute should also forbid
/ all syndicate pardcipatiOns, transac-
/ ticns for purchase and sale on joint
+ account. and the making of any agree
ment providing that tn lie compaE- shall
/ withhold from sale for any time, or
! subject to the discretion of others any
/ securities which it may own or nc
/ quire.
ct should also be provided that
no officer or director should be prac-
tically interested either as principal,
/ co-principal, agent or beneficiary in
/ any purchase, sale or loan made by the
/ corporation except in case of a loan
+ upon his policy
The committee recommends limiting
/ the amount Of new business which
+ each of the larger cOnDanies NAV take
to $3.50. 100000 a year, and that no
| company doing business in the state,
except the Industrial companies shall
4 issue policies in excess of certain pre-
! scribed limits.
1frfbTrtfOr9s nv fT7s447-a ?, 90 oorT,rr n -
! lions for political purposes should be
/ strictly forbidden The committee
! reCOmme ends the passage of an un-
I eQuivOcal and drastic mea sure to rem
edy this evil. Not only should it be
/ expressly prohibited and treated rs a
! waste Of corporate moneys. but any
/ officer. direct or agent. making or au-
thorizing or consenting to such contri-
button should be guilty of a misde-
meanor and the prohibition should be
/ extended to all corporate contributions
/ of this character.
Lobbying.
Nothing disclosed by the investiga-
ton deserves more serious attention
/ than the systematic efforts of the large
/ insurance companies than to control
a large legislation of the state. They
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
through subsidiary companies or
through the connections of their Off
GERS they have become related Their
! operation have extended beyond the
state and the country has been divid-
ed into districts so that each company
might perform conveniently its share
of the work Enormous sums have
been expended in a sureptitious man
2 ner. Irregular accounts have been
kept to conceal the payments for
which proper vouchers have not been
: required This course Of conduct has
created a widespread conviction that
E large portions of this money has been
dishonesty used.
Andrew Fields. who represented
! both the Mutual and the Equitable in
t legislative matters and was in control
of the supply department of the for
t mer company, remained beyond the