Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-04-18
PRESIDENT on INSURANCE
Chief Executive Sends Special Message to
Congress on the Subject.
FAVORS BILL FOR DISTRICT OF COLUMBIA
Measure Prepared by state COmmIs-
sIOners TO Govern Life Insurance
Meets with QualiRed Ap-
provaI of Roosevelt.

WASHINGTON. April II. - President
Roosevelt today transmitted to congress
the following message relating to insurance
legislation:
TO the Senate and House Of Representa-
uNcS: | rcwith transmit tho report and
recommendations, with accompanying pa
pers' OF the insurance convention which
met in February last in Chicago. The con-
vcntion was called because OF the extra
ordinary disclosures OF wrongful insurance
methods recently made by the Armstrong |
legislative committee OF the state of New
York. the suggestion that It should he
called, coming to me originally from Gov
crnor John A. Johnson of Minnesota, !
through Commissioner Of Insurance Thomas
d. O'Brien of that state. The convention
consisted Of about 100 governors attorneys
general and commissioners of insurance
Of the states and territories of the union.
The convention was seeking 10 accomplish
uniformity Of insurance legislation through !
out the states and territories and as
to endeavor to secure the enactment by
the congress Of the United states OF a
proper insurance code for the District of
Columbia which might serve model
for the several states. Before adjournng,
the convention appointed committee of
three attorneys general and twelve COM
missioners OF insurance of the various
states to prepare and have presented to the
features suggested by the convention.
BnI Is Prepared.
The committee recently met in Chicago
and in thorough and painstaking fashion
sought to prepare bill which should be
at once protective of policy holders and
fair and Just to insurance companies and
which should prevent the graver evils and
abuses of the business and at the same
time forestall any wild or drastic legisla-
ton which would be more harmful than
beneficial The proposed bill Is discussed at
length in the accompanying letter by super
intendent Thomas f. Drake of the depart
ment Of insurance in the District OF
/ very earnestly hope that the congress
at the earliest opportunity viii enact thls
bill into law with such changes as It's
wisdom may dictate. l have no expert
familiarity with the business, but have
entire faith in the right Judgment and
convention which met at Chicago and os
which committee the convention formu-
lated the measure herein advocated. we
are not to be pardoned II we fail to take
every step in our power to prevent the
possibility Of the repetition of such scandals
as those that have occurred in connection
with the insurance business as disclosed
THEODORE ROOSEVELT.
The White House, April II, 1905.
Draft of Proposed Bill.
The bill recommended was drafted by
amending the measure introduced in con-
gress by Representative Butler Ames
CMass) 1t provides for the establishment
of an insurance bureau in the Department
of Commerce and Labor and for the ap-
pointment of commissioner who shall
ance company or who shall not be inter-
ested in the business OF any company ex-
cept as a policyholder. The commissioner
( Is reautesd-atvleastsones in three years to
examine all companies doing business In
| the District Of Columbia. Forms are pre-
scribed for the issuance of annual state
! ments and the commissioner is authorized
| to demand other information from the COM
panies II he believes 1t necessary.
! II upon examination the commissioner is
| OF the opinion that any domestic insurance
| company is insolvent or has exceeded it's
| powers or is in any manner transacting
| business contrary TO the provisions of this
! act the bill provides the commissioner
shall lay the facts before the attorney gem
/ eral, who may apply to the supreme court
of the district for an injunction restraining
| it's further business. Under the same con-
ditions he is authorized to revoke the GER
. tifcate OF a foreign insurance company.
/ minimum capital stock of $4,000 is pro-
I posed for accident companies. 100000 for
/ plate glass and elevator insurance and $780,
900 for all other companies. It limits the
investment of capital stock. Companies may
also be organized on a preliminary stock
plan.
Liability of Directors.
Directors are made liable for any illegal
investments, and companies are not per-
mitted to do both participating and nom
| participating business. Under the require
ments for organizations OF the insurance
! corporations the capital stock shall be paid
in within twelve months after the date Of
organization, but no policies shall be issued
until the capital stock has been paid I'm.
| The bill provides for the investment of the
capital of domestic companies practically
as is provided by the Ames bill
The bill contains a plan whereby all
policyholders shall he enabled to participate
through proxies in the election of directors
at the annual meetings The salaries Of all
officers and agents over 5000 a year must
be AUTHORIZED by a vote of the board Of di-
rectors OF the insurance corporation. PEN
sions cannot be voted 10 member Of the
family Of an officer after his death and dis
bursements Of over $l00 require properly
itemized vouchers.
The bill prohibits rebating of portions of
premiums and discrimination between
classes Of insured Standard forms of pol
icies are prescribed. A policy cannot be
forfeited after the payment Of two full an
nual premiums. No insurance company
which issues a contract, the performance Of
which is contingent upon the payment of
assessments made upon survivors. shall do
business with the district
Provision is also made for fire, marine,
casualty. title fidelity and surety insurance
companies by the bill. All insurance COM
panies their officers or agents, are pro-
hibited from making political contributions.
In letter commenting on the bill
Thomas r. Drake, superintendent Of the
Department of Insurance for the District
Of Columbia, says that it makes very few
changes from the general and ordinary pro-
visions OF law I'm force in tho various states
Inuu o MAI GU NAV pE EpEE