The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-04-18
MUST CORRECT
INSURANCE EVIL
President Roosevelt Sends Mes
sage to Congress Covering
Investigation.
SPECIAL CONVENTION
DEALS WITH PROBLEM
Grave Wrongs and Abuses of
This Business Should Be
Taken Up.

WASHINGTON, April 17-President
Roosevelt today transmitted to Congress-
the following message relating to insur-
ance legislation:
To the Senate and House OF Representatives:
Il herewith transmit the report and recon-
mendations, with accompanying papers OF the
insurance convention which met In February
last in Chicago
Extraordinary Showing.
Tho contention was called because of the ex-
traordinary disclosures OF wrongful Insurance.
methods recently made by the Armstrong Leg
islative committee OF the State of New York
tho suggestion that should be called coming
TO mo originally from Gov. John A. johnson
OF Minnesota, through Commissioner Of Insur-
ance Thomas D. O'Brien OF that State The
convention consisted OF about 100 Governors.
Attorneys General and Commissioners of In
surance OF the States and Territories OF the
Union.
Sought Uniform Laws.
The convention was seeking to accomplish
uniformity OF insurance Legislation throug ghout
the States ard Territories, and as a primo
step toward this purpose decided 70 endeavor
TO secure the enactment by Congress- or n
proper insurance code for the District Of Co
lumbia which might serve AS q model for the
several States. Before adtourning the oonven-
tion appointed COMMITTEES OF three Attorneys
General and twelve Commissioners OF Insur-
ancc OF the various States to prepare and have
presented TO the Congress a bill which should
ton.
Time to Prepare Bill.
The committee recently mot in Chicago and
In thorough and panstaking fashion sought
to prepare n bill which should be at
protective OF policy-holGcrs and fair and
just TO insurance companies and which should
prevent the grnver evils and abuses OF the
business and at the Same time forestall any
Wild or drastic legislation which would be
moro harmful than beneficial. worry earnestly
hope that the Congress. at tho earliest oppor-
la lrh
changes as It's wisdom may dictate
Has Faith in the Work.
have expert familiarity with the bust
ness, but have entire faith In the right
judgment and single-mndcd purpose OF the In
ourance convention which met at Chicago and
OF the committee OF that convention which
formulated the measure herein advocated. We
arc not TO be pardoned IL wo fall 10 take every
step In our power 10 prevent the possibility Of
the repetition Of such scandals those TINT
have occurred in connection with the i1sur-
ence business disclosed by the Armstrong
committee. THEODORE ROOSEVELT.
The White House. April H. 1906.
To Re-Establish Bureau.
The bill recommended was drafted by
amending the measure introduced in
Congress by Representative Butler
Ames OF Massachusetts 1t provides for
the establishment of an insurance bureau
In the Department of Commerce and
Labor and for the appointment OF COM
missioner who shall have no official con-
who shall not be interested In the busi-
ness OF any company except as a policy
holder
May Restrain Business.
II; upon examination. the commissioner
Is OF the opinion that any domestic in
surance company Is inSolvent has eN-
ceeded It's powers, or is In any manner
business contrary to the pro
shall lay the facts before
the AttorneyGeneral. who may apply TO
the Supreme court of the district FOR an
injunction restraining its further bust
ness Under the same conditions he Is
TO revoke the certificate Of
foreign insurance company.
Minimum Prescribed.
A minimum capital stock of $4,000 Is
for accident insurance. $1,000
for plate-glaes and elevator insurance.
bill limits the investment OF capital
stock. Companies may also be organ
zed on a preliminary stock plan,
Directors Are Liable.
Directors are made liable for any illegal
Investments and companies are not PEI
mitted to do both a participating and
lon-participatinS business. Under the
'equirements for organization OF insur-
ancc corporations the capital stock ehau
DC paid In within twelve months after
he date of organization but no policies
shall be issued until the capital stock
has been paid in The ball provides for
he investment OF the capital OF demstic
companies practically as Is provided by
ho Ames bill.
Provides for Proxies.
Tho bill contains a plan whereby all
shall be enabled 10 partlci-
,atc through proxies In the election of
directors at the annual meetings The
alaries OF all officers and agents ovcr
500 year must be authorized by vote
( the board OF directors OF the insurance
Pensions cannot be voted To
member of the family OF an officer al
er his death. and disbursements Of over
loo require properly itemZed vouchers.
Limitations Are Made.
No insurance company W--ich issues
the performance of which is
ontingent upon the payment and assess
rents upon survivors. shall do business
-ithn the district
Provision is also made for fire.
lalne, casualty, title. fidelity and surety
lsurauce companies by the bill All I'M
france companies. their officers or
gents are prohibited from making politi-
Al contributions.
Opinion Of Insurance Man.
In a letter commenting on the bill,
homas e. Drake, superintendent OF the
eDartment OF Insurance for the District
Columbia says that it makes very
w changes from the general and Or
nary provisions of law in force In the
!, ri StntgS