The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-02-22

changed, it is Of the first importance
that officers should realize their direo
responsibility to those whom they rep
resent and should rely for their contin
| uance in office upon proved efficiency
and not upon practical inability OF.
the policyholders to depose them.
Protecting Policyholders.
| 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 ,su-
perintendent of insurance, and similar
lists should be open to inspection at the
also open to inspection Of policyhold-
ers within each state and foreign coun-
try should be fled at the general
agencies Of the company in such juris-
dictions. Voting should be limited to
those who have been insured at least
one year before the election and whose
policies are still in force when the cleo
ton is held
"The board of trustees or directors
should annually nominate candidates to
be voted for at the next election and
should file its nominations with the SUI
perlntendent of insurance at least four
months before the election, together
with designation of persons to receive
{ proxies to vote for such candidates.
Il Independent Nominees.
+ ut should also be provided that any
group Of 100 members should be privi-
legged to make and file with the sup
erintendent Independent nominations.
together with names Of PERSONS who will
< receive proxies to vote for the candi.
cate, at least three months before the
election. The corporation should be re-
CURED at least two months prior to the
election, to mail to each policyholder
notice of the election, together with a
suitable ballot containing the names of
all the candidates whose nominations
have been duly filed, with properly adj.
dressed envelope inclosed for the return
: OF the ballot. The periods above men.
: toned have been fixed in order to give
$ opportunity to reach distant policy
9 holders. '
Q "Votes should be limited to the nom
!: mated candidates, and suitable pro-
9 visions should be made for new nom
nations, and the casting of votes under
l. proxies. in case of the death or inca-
j. paclty OF any person nominated. Pro-
vision should also be made for the
l. proper custody of ballots received by
mail, and disinterested persons should
be appointed to act as inspectors of
election.''
AS to stock companies, the commit.
tee recommend naturalization.
Insurance Investments.
;, On the subject of the Investments
l. of life insurance companies, the com.
mittee,. after declaring against "syndi.
l. Gates recommends that the law be
amended so as to provide:
First-That no investment in the
J. stock of any corporation shall be per
mitted except in public stocks of mu
nicipal corporations.
Second-That investments in bonds
secured to the extent of more than one
r third Of the value Of the entire secur
,e ity therefor by the hypothecation Of
rs Third-That no loans shall be made
le upon astocks and bonds which are moi
h the subject Of purchase under the above
)e provisions.
* Fourth-That every company nov
st owning stocks or bonds of the prohib
to tied classes shall be required to dis
e. pose of the same within five years from
to Dec. 81, 1906, and each year prio
III thereto shall make reduction of tn,
o. amount of such Investigations to al
h extent approved by the superintendent
Of of insurance.
~ Fifth-The statute should also forbi,
OF o+ all syndicate participations, transac
ns lions for purchase and also on join
10 account, and the making of any agree
ment providing that the company shall
- withhold from sale for any time, o
~ Subject to the discretion of others, an
We securities which it may own or acquire
~ Sixth-It should also be provides
e, that no officer or director should b
~ pecuniarily interested, either as princi
i 10 pal, co-principal, agent or beneficiary
81 in any purchase, sale or loan made b
the corporation except in case of a loa
upon his policy.
The committee recommends limitin
lai the amount of new business which eac
q, of the larger companies may take
;al $3.50 900 900 a year and that no con
or pany doing business in the state. exceI
IN the industrial companies. shall issu
eo policies in excess of certain prescribe
loi limits.
ed, Political Contributions.
I've
nd contributions by insurance corpor
tic. tiens for political purposes should
,ck strictly forbidden says the repor
ION "Neither executive officers nor direc
Sc ors should be allowed to use the none,
ills paid for purposes of insurance in su
Isl port of political candidates or pla
yer forms. The devious methods taken
ase conceal the payments OF this sort a
a confessions Of their illicit characte
a They illustrate the manner in viii,
it's executive officers have treated II
funds of the company virtually as the
Use own, abusing their power to disbur
nee them without proper accountin