Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-01-08

but the difficulties are not insurmoun'
able and | believe the effect of SUCH
legislation would be to at once lighter
the burdens of the people ana increaFi
the revenue Of the railways. The mal
who travel little is at present at to;
tireat disadvantage as compared witt
the man who travels much.
Regulating the Fares.
What is commonly known as TN
"long and short haul clause in OIL
statute absolutely forbids q railwa
from charging Il less passenger fa''
for greater distance than lesser OF
on the same line The general justics
of such provision is unqucstionahlc.
but | believe that there are circum.
stances under which the railways
should bepcrmitted tomeet competition
without affecting intermediate points.
You will better understand what !
mean thrA'gI an illustration. A pas.
senger desiring to travel from pes
Moines to Marshalltown has the option
of several routes The Chicago and
route. and the fare which that com
pany is permitted to charge Is three
cents per mile. I can see no good
reason why the Chicago and North
western. for instance should not be
permitted to carry the passenger for
the same fare that is allowed to the
Chicago and Great Western line, with,
out affecting the charge to intermediate
points between Des Moincs and Mar.
shaltown on the Chicago and North.
western line
therefore recommend such an
amendment to the law as will authorize
the Board of Railroad Commissioners.
under such circumstances. and after
due investigation. to relieve the rail
ways from the effect of the long and
short haul clause in the statute. ! do
this not only because | believe 1t ia
just to the railways. but because it
will greatly convenience the travelling
public
Life Insurance Companies.
This state long ago adopted the
policy of requiring all its OWE life
insurance companies doing business
upon the legal reserve"plan to deposit
securities with the state auditor in AN
amount not less than the legal reserve,
for the protection of policy holders.
1t cannot he doubted that this is Il
wise system. We have seen that the
possession of great volumes of securi.
ties which can be changed. mnnipu-
lated, and used for individual profit
and Interior purposes, presents a
temptation that most men cannot re-
sist, and constitutes a menace that
ought not to be perpetuated.
/ believe, therefore. that from this
time forward all "old line" life in
surance companies organized under
the laws of other states, and desiring
to carry on business in the state of
Iowa, should be required to deposit
with the state auditor securities equal
in amount to the legal reserve upon the
policies issued upon lives in this state,
for the protection Of such policy hold
,ers; the deposits to continue until the
state in which the company is organ
lied shall require deposit of the en-
tire legal reserve with some state OIL
transfer the securities so placed with
him to the officer of the state in which
the company is organized. If few
states would adopt this plan, 1T would
result in every state, having insurance
companies, requiring the deposit.
earnestly recommend to you careful
investigation of this phase of the gen.
eral subject.
Accumulation of Surplus.
Another grave defect in the methods
of life insurance developed by the re-
cent study of the subject, is the accu-
of a so-called surplus, which.
in great measure at least, represents
deferred dividends; that is to say, the
sum which the company, in vague
way, promises to distribute at flu
ture time to its policy holders, but con-
corning which there is no specie agree
ment fixing the amount of the distribu
ton.
l therefore recommend that the law
be so strengthened as to require al.
annual accounting between each com
pany and its policy holders so that Al,
the close of each year the policy hold
ers will be notified of their respective
shares in the surplus of the preceding
year. The amendment should also pro
vide for the options which at that
time may be exercised by the policy
holder; namely, to withdraw the divi-
dend in cash or to use it for the pur-
pose of purchasing further insurance.
In so recommending, it must not be
understood that / advocate the dis
annually, of the entire sur
plus.
For Few Standard Policies.
There is more fraud and deception,
sometimes Intentional and sometimes
unintentional, practiced upon policy
holders by reason of the variety in the
forms of life insurance contracts than
in any other way. There are hundreds
of these forms, differing oftentimes but
slightly from each other, and these
differences are, in my opinion, in many
instances created for no other purpose
than to enable the agent to found upon
them an argument, the fallacy of
which cannot be detected by the un-
skilled mind. and the effect of which
is to create an atmosphere of mystery
about the entire life insurance bust