Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-12-24
Work of the State Insurance
Commission Appears to Have
Been Expensive Luxury
REPORT READS LIKE LECTURE
Senator Jamison Apparently Manpu-
lated tho Proceedings in Behalf of
tho companies-LesisIative Situation
Will Become lmportant-Expense
Over $4,000.
Special to Times-Republican.

Special to Times Republican.
Des Moines, Dec. 24-The report OF
the state insurance commission, or leg
islative special committee, is the most
expensive and most adroit job OF
whitewashing the state of Iowa has
ever fathered This was the deliberate
verdict of member of the Legislature
who will have a great deal to do with
whatever insurance legislation is con-
sidered. He had read every line of the
report.
The report of the commission, or part
of the commission, as finally filed. ii
printed, would make large volume OF
considerable interest to amateurs get
ting first lessons in the great business
Of insurance, but hardly of general In
terest to the public. The report reads
more like lecture on insurance to be
delivered to a convention of insurance
men. The discussion relates to meth
ods of management, to the elements of
chance in the business, to rates and
percentages, and fees, and expenses,
and all those things which must be
considered by those who are engaged
in the insurance business. The argu-
ment runs smoothly following the wei!
beaten paths of the insurance text
books, and skillfully avoiding those
matters which are causing the policy
holders so much worry.
1t appears that the differences of the
members of the commission were dis
closed right at the outset Of the in
vestigation. The difference was vital.
Some of the members desired that the
Investigation should proceed almost
entirely from the standpoint OF the in
surance companies and their relation to
the state and to, the insurance depart
ments of other states. These members
constitute the majority. The others
took the position at the beginning that
the investigation should be approached
from the standpoint of the public and
the policy holder, and that the chief
concern of the state is the protection
of the public. This wide difference in
the view point was never lost sight of.
Senator Jamison, who is Of forceful
individuality, took the lead in making
the fight for an investigation, having
relation largely to the interests of the
companies. He virtually directed the
whole investigation and he wrote near
ly all of the majority report Senator
Bleakley acquiesced entirely In the
end Mr.. Clary, the sole democratic
member, joined with the two senator's.
Representatives Jones and Kendall
insisted all along that the commission
should not lose sight of the interests
of the policy hoders The differences
of course centered around the manner
of treatment of the surplus and re-
serve funds-the source of all the scam
dals which have perplexed insurance
companies. That these differences were
not more exploited early was due to
the belief and hope that in the end the
entire commission could be got to
agree upon something that would deal
fearlessly with the recognized weak
ness of all companies. But near the
end of the hearing it turned out that
this was not to be.
The way in which the report is writ
ten, in it's treatment of the one vital
matter, will cause some amazement.
The subject of deferred dividends is
discussed evidently with view to pre-
senting it with an apology, and yet the
commission says that it has:
arrived at the setted conviction that
the deferred dividend system of insur-
ance ought to be discontinued in the
state of Iowa"
But this should not be right away.
Tho oui1 ho off
sole remedy proposed is that of certi-
flying to the policy holder annually
what is due him; or, in other words. it
is recognized evil. but it will be le-
galized and the companies be required
to report annually how it is getting
along.
While the report has admissions
along the line of the reports of the
New York commission and the nation
al commission and in general showing
that the deferred dividend scheme is
wholly indefensible, yet the major
portion of the report is defense in
fact of deferred dividends and the leg
islature is advised to do nothing that
will make any material change in this
regard.
Those who have read the report in
dicate that in several other matters
the recommendations are such that
the present Iowa laws will be weakened
rather than improved.
In view of the peculiarities of this
report the situation in the legislature
will become doubly interesting. 1t is
possible that in the senate Jamison
may go to the head Of the insurance
committee and in the house Speaker
Kendall may put Representative Jones
in charge. Then would be witnessed
a fight between the two houses of much
interest. Jamison is a forceful man in
every way and he probably would be
able to defeat any legislation looking
to protection Of the policy holders in
the matter of the deferred dividend ac-
cumulations. Jones is man of great
earnestness and personal influence, and
with the speaker having his sympathy