The Washington times., 1906-01-03
Sounds Clarion Call for
Reform in Annual
Message.
DEPEW ASKED TO RETIRE
Senator Bracket Introduces
a Resolution to | his
Effect.

- the New York Legislature. First came
the message OF Governor Higgins, scoF-
! ing the past methods of conducting life
Insurance in the State. and then follow
ed the Introduction of a resolution cali
ing for The resignation OF Senator De-
! pew
The governor in his message makes
some important statements and recon-
mendauons regarding insurance.
An Important Problem.
''The problem oil State regulation" he
says. has become one OF oversnadow-
ing Importance. 1t calls for calm. cour-
ageous and int 'Igent treatment. We
must aim 10 cure not to XIII; 70 pre-
serve, not 10 tear down
The governor goes on To say that the
average policy holder has rested content
in "a belief in the financial soundness OF
The great companies which have been
heaping up riches almost beyond the
dream of avaFiee.
The bitter struggle for the control Of
the Equitable. last winter, the cover
nor continues. brought scandal and dis
credit upon great managers of the In
surunce business and aroused the pub
lie from confidence and indifference TO
the keenest interest in the subject
He declares the policyhoIder now de-
mands something better from the state
than the guarantee of soIvency. lie has
learned that his insurance viii be much
better and safer when the companies
are compelled go invest their assets for
his benefit exclusively and are prevent
ed from diverting funds TO the individ-
udl undertakings Of speculative direct
raf
and exurbitont commissions. era tuities 70
men of mfhseHees -ssssl cen tFtbtsttesss. fer
political campaign purposes The pol
icyholder. declares the governor. in
vokes The power Of the State TO shield
him more effectively and 20 curb the
companies and their directors.
Lav Needs Radical Revision.
You viii De- called upon. said the
governor. Ito maize a radical revision
Of the law for the benefit of investors in
life insurance and for the regulation
and the restraint OF the companies We
may wei consider at this time the ex-
pediencv OF providing for more
thorough regulation by the department
OF insurance
The governor then calls attention TO
the new insurance law OF Germany By
which thorough investigation and pub
Hcity $ insured and SAYS we can learn
much from a careful examination of this
law
The governor says the funds of insur-
anCe companies should be sacredly safe
guarded by the state and every clement.
of personal gain eliminated.
To accomplish this result he declares,
II has been suggested that large amounts
ought 70 be invested in bonds secured
hX mortgages on real estate, that de-
I,osiis VIII or loans 10 monied corpora
lions should be subject To suitable re-
HtIletGns, that the control of subsidiary
companies should not Ee permitted, that
insurance directors should have no con
diCtiug business connections. that in
VeSrment incorporate bonds should be
regulated so as 10 prevent speculation
ana less from attempt to float doubtful
enterprises. u =
Policies Of STANDARD Form.
.ie states that policies should be Of
standard forms so that abuses arisins
from ambiguity. completely and incom-
pieteness of a contract may be eradi-
Gated and the contract made definite in
form and substance; that a uniform sys-
TEN OF audiJs and accounts should be
prescribed; that fun publicity should be
assured, that deferred dividend policies
should be prohibited or greatly restrict
ed; that policies should be further safe
guarded from forfeiture. that am equit-
able distribution OF gain TO the policy
holders entitled thereto should be re-
quired; thar policyholders should have
an effective voice i'm the government of
the companies, and that the discretion
oi the directors should be subject TO
Judicial or administrative review
In concluding the Governor saws.
The eyes OF thew hole world are now
turned toward New Yorq and if this
legislature does not produce an insur-
ance law which shall be drastic. bat
practicable radical but sane in a spirit
which shall be conra geous. but not hys-
terical il will fail to meet the e=peeta-
uons of those who have confid -nce in
the inability Of popular governs ent to
solve its own problems as they rise"
Wants Depew's Resignation.
The resolution calling for the resig-
nation OF United States Senator Depew.
long promised. by Senator Bracket of
Saratoga was introduced by him this
morning. Accompanying it was a NAM
moth petition bearing The names of
several thousand persons calling for
the resignation asked FOR. The resolu-
ton read as follows:
since the adjournment of this senate
me people Of this State and nation have
Veea staggered by the relations sbov-r
TO have existed for years between rbe
tqtltable Life Assurance Society and
< A. DepeW; one Of the Senators of the
STATE IN the United States Congress
recognizing that these disclosures
have caused a total lack of confidence
In Che ability of the Senator named To I
properly represent the people in the hod1, 1
re which he was elected
Resolved. by the Senate That e NJ I
Depew be. and hereby is, requested to /
lContfnuea ON second panaA