The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1906-02-23
IT May THwART
THE LAWSON PLAN
Armstrong Committee Makes
Its Report to New York
Legislature.
NEW LAWS ARE ASKED
lew LAWS ARE ASKED
If Recommendations Of Committee Are
Carried Out, Proxies Secured by
Lawson and Others May 30
of No Value.

Lawson and Others May Be
of No Value.
Albany, N. Y, Feb. 24.-The report
OF the Armstrong special insurance in
vestigating committee was presented in
both houses Of the legislature.
It was accompanied by eight bills
designed to carry into effect in detail
the recommendations of the commit
tee. In statement made to newspaper
men before the presentation of the re-
port, Senator Armstrong said he hoped
to have passed before April 10 bill
which Will defer--annual elections IN
mutual companies from April Is to No
vember Is. This it is believed probably
would nullify all proxies obtained up to
this time by Thomas w. Lawson. and
policyholders, committee of state gov
errors and others, as well as those
which the management OF the compan-
les themselves have been gathering
through their agents.
Is Very voluminous.
The report of the committee covers
printed pamphlet of S19 pages. There
are fifteen companies organized under
the laws of New York issuing level
premium policies, and IN single in
stance only does tie committee depart
from the policy of limiting its investi-
cation to companies organized under
the laws of New York. This company
was the Prudential Life Insurance COM
pany Of New Jersey.
The committee recommends the In
surance laws be so enacted as to per-
init the formation under certain re-
strictions hereunder Of mutual COR
porations without capital stock to
transact the business OF life insurance:
70 f,,t,,V i,,1n Tow, of
companies, upon the cooperative or
assessment plan. or allowing foreign
companies, of that Sort not already
transacting business in the state, to
enter the state.
Policyholders Powerless.
Concerning these called mutual COM
panies the. committee says:
Notwithstanding their theoretical
rights, policyholders have had little or
no voice in the management En-
trenched behind proxies easily collected
by subservient agents. and running for
long PERIODS unless expressly revoked,
officers of these companies have Occu-
pied unassailable positions and have
been able to exercise despotic power.
Ownership of the entire stock Of
unmixed stock corporation scarcely
could give tenure more secure. The
most fertile source of evils in admin
istration has been the irresponsibility
of the official power. However, much
of this may be expected in the case of
absolute stock control. In that of the
mutual company IL proceeds from the
fragrant disregard of the law of it's
being. While it would be plainly un-
wise that the management CT Il life
insurance company should be rendered
unstable or that it's personnel should
be frequently changed. i: IS of first i'm
portance that officers should realize
hniy n tn
whom they represent and should rely
for their continuance in office upon
proved efficiency and not upon prac-
tical inability of the policyhollers to
aepose them"
Syndicate interests Condemned.
A plan is recommended for the nomi-
nation and election of officers provid-
ing that each policyholder shall have
q vote.
AS to stock companies the committee
recommends naturalization. On the
subject of investments by life insur-
ance companies. the committee after
declaring against 'syndicates." rec
ommends the law be amended so as to
provide that no investment in stock of
any corporation shall pc permitted. ex-
cept in public stocks and municipal
corporations.
The committee recommends limiting
the amount of new business which each
of the larger companies may take to
$3.50, 900. 900 a year, and that no company
doing business in the state except in
dustrial companies shall issue policies
in excess of certain prescribed limits.
Stamp Out Campaign Gifts.
Contributions by insurance corpora
tons for political purposes should be
strictly forbidden. and the passage of
an uneQuiVOcal, drastic measure to rem
edy this evil is recommended.
Regarding lobbying the report says:
Nothing has bean disclosed by the
Investigation which deserves more SER
ious attention than the systematic eff
forts Of large insurance companies to
control large part of the legislation
Of the state. They have been organ
lied into an offensive and defensive al
lance to procure or to prevent the
passage of laws affecting not only in
surance, but great variety of impor-
tant interests to which, through sub
sidiary companies, or through the con-
nections of their officers, they have be-
come related. Their operations have
extended beyond the state, and the
country has been divided into districts,
so each company might perform con-
veniently its share Of the work.
Enormous sums have been expend-
ed in surreptitious manner and wide
spread conviction has been created that
large sums have been dishonesty
used"
Corrupt Use of Money.
After calling attention to the fact
that Andrew Fields and Andrew Ham
ilton, to whom large sums were en-
trusted and unaccounted for had re-
manned beyond the jurisdiction of the
committee, the report says
ION account of the absence of neces-
sary witnesses and lack of proper
vouchers, the committee has been un-
able to trace moneys said to have been
disbursed in connection with legisla-
ton. But while it ia sufficiently eyi-
dent large sums have been disbursed
for improper purposes; 1t is also clear
payments for confidential outlays, ex-
empt from audit, have furnished abund-
ant opportunities for misappropriations.
They suggest the necessity OF reuuir-
ing strict accounting from those who
are responsible for the payments as
well as from agents who have received
moneys.
1.-THE pernicious activities Of corpor4
ate agents in the matters Of legislation
demand that the present freedom of
lobbying should be restricted,
Must State Their Business,
The committee recommends the legis-
lative law be SO amended that eyery
person retained or employed for COM