The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-23
rs" FIND SNAG In
INSURANCE LAWS
State Commissioners Struggling
with Compensation of Life
Risk Employees.
SEEKING TO CUT OFF
OFFICERS SALARIES
National Conference Puzzles Over
the Double Emolument
Problem.

The insurance commissioners com
mittee of ffteen' in session at the
capitol, St. Paul, struck a snag today
over which they argued for several
hours. The snag was this question:
How can an officer OF an insurance
company have his salary so fixed, by
legal requirements, that the, company,
If it pleases, cannot be really paying
him an amount vastly in excess OF
what the company report indicatesF
The question followed a discussion
on drafting a bill permitting, compan-
les to limit officers and employees to
twelve month contracts, and yet not
renewal commissions. Commissioner
Charles F. Libbey of Maine, chairman
of a special committee to which the
subject was referred yesterday, re,
ported that special provision should
be inserted in the bill that commissions
be allowed only to non-salarled en-
ployees.
amendment to the proposed bill, pro-
viding that "the limitation as to time
shall not be construed as preventing a
life corporation from entering into a
contract with it's agents for payment
Of renewal commissions.
How About Presidents?
HPermit me to suggest said Com
missioner T. D. .O'Brien of Minnesota,
company is it's agent, tho not soliec-
itor, and therefore under this amend
ment might be allowed renewal COM
missions in addition to his salary. A
corporation can legally act only thru
its agent.
can be called it's agent" said Carroll.
Jewell, if it isn't true, then it $ a
new principle in law to me- was Mr.:
O,Brien's comment The amendment
was adopted, nevertheless:
This question being thus disposed
of. the commissioners proceeded to the
reiative one of how to fix an insurance
officer,s salary. so that he shall draw
that alone and not receive an addltlon-
al salary (not "a commlsslon) Tor othef
Some of the commissioners We're in
clined to think that it is all right Tor
such an official occasionally to receive
additional money Tor addltlonal WORK
For instance. an officer may be an ex-
pert attorney and his speclal SERVICES &c >
REQUIRED to defend a case against the
company. Or he may be both d1rec-
tor and actuary.
John B. Hadley of Michigan tried to
nour oil on the troubled waters by sug-
testing that executive officers be linn
tied to drawing but one hxed salary
and no other remuneration.
Mr.. Carroll offered an amendment
"No officer, director or trustee, paid
salary for services, shall receive. any
other compensation or emolument.
NH. Hosts Query.
eff you adopt that said zeno NJ
Host Of Wisconsin, chow will the lit
tie new company ever get along, whose
president receives, perhaps, only $500
year salary and hustles as a common
solicitor to write business and get suf
ficient commissions to exc out his liv
ing?'
F'Well now, when you go to opening
the door for the new company re
piled Mr. Carroll, "the old one is sure
to slip in. We want to bar the posi-
bility Of paying exorbitant compensa
ton, half of it being disguised al
agents commissions. I know thru per
sonal investigation that officers of in
surance companies often receive com
pensation far in excess of what il
shown in the form Of report that thu
laws require be made to us
At late hour today the commission
ers were still discussing the subject.