The Montgomery advertiser., 1906-02-02

Legislation governing insurance, and counselled patience on the part of the
 legislators until grounds for such leg islation be acted upon. Otherwise. he said, the impetuosfty of a few States
 might undo all the good work planned for the others. During his addFess he took q shot at extremists and agita- l tors, saying:
 T may say that I think the mana gers of the so-called polieyholders' as.
 soeiations had better be the subject of
 little inquiry by the policyhoiders for in many instances, 1t Is not unlikely that they are men who live by agita' tion and whose occupation and salary will be gone just as soon 'as we can ar
 rive at normal conditions.s After reviewing conditions In New York be concluded by offering the fol- l lowing suggestions:
 First--That he believed official ac- l ton by other States should await the | coming in of the Armstrong report. Second-That the insurance corpora l tions and their directors have the pow CT to bring every action to recover
 wasted funds, which the people of the | State of New York, through the attor- ney General could bring.
 Third-That such actions as may be
 necessary and proper should be brought l by the directors and their responsible ity should not be shifted.
 Fourth--That if such a course Is not sincerely and thoroughly pursued, the State may be depended on to act. Insurance Commissioner R. E. Foik l of Tennesseey led the discussion fol lowing the reading of Attorney Gen' eral Mayer's report.
 He offered a resolution providing thai | 1t be the sense of the convention that ] in all deferred dividend contracts now | existing there shall be an annual ae. counting to each policy holder anu that further issue of deferred dividend contracts be prohibited.
 He regarded, he said, the present sys' tenn as being the root Of the greater part of the evils and abuses brought to l light In the life insurance system. Tns present arrangement, he declared, com stituted a gambling contract which ne considered opposed to public policy. Insurance Commissioners Host oi Wisconsin and Wolf of California spoke in favor Of the resolution President R. R. Weeks, of ths New York Life Insurance Company took ex' | ception- to the declaration that the de- ferred dividend system constituted a gambling contract. He defended the system as a reward for persistence where the policy holder was willing tc ! await the disbursement of funds unoei 1 the deferred dividend plan. rather than surrender a portion of the earning l power of the funds through more freouent accounting.
 Mir. Wolf of New York, attorney toi the New York Life Insurance Compa' ! ny. defended the deferred dividend sys' tenn.
 Governor Cumnins of Iowa said; "Af ideal situation would not permit any dividend. Public insurance companiei should not take from policy holder one penny more than is necessary t' carry out the contract entered into When we attempt to disassociate tn legitimate from the investment coupa nies we shall have entered upon tn right course There should be no part
 nership between policy holders an' | companies
 | q believe that mutual companie | should not be permitted to write othe l than participating policies. The tenden 1 cy of all legislation should be to lmi the investment feature and enlarge th - indemnity. -. 1 '"The policy holder is at the meg 1 of the company under the deferre' | nrsrnIum system. There is no sentl l meht in my part of the country to con,
 pei the company to disburse the ruhu | entrusted to it's care every year