The Montgomery advertiser., 1906-04-18
FOR UNIFORM LAWS
TO CONTROL THE LIFE INSURANCE
 BUSINESS
President sends Draft of Bill to Com rress For Passage For the Dis trict of Columbta-Its
 PrOyfsIOus.


 Washington. April i7.-Presdent | Roosevelt today transmitted to Con- gress an important message relating to | insurance legislation. Accompanying | the message were, the report of the | insurance conventions which were held i in Chicago last February. Among the | recommendations is draft of bill which Congress is urged to enact in- i to law with such amendments as its | wisdom may suggest.
 ] The President urges the enactment ; of the proposed measure, as he de- l clares. eve are not to be pardoned if we l fail to take every step in our power to prevent the possibility of the repeti- | tion of such scandals as those that | have occurred in connection with the | insurance business as disclosed by the Armstrong committee
 The text of the Presidents message l follows:
 ITO the Senate and House of Repre- .J herewith transmit the report and recommendations with accompanying napers of the insurance convention | which met in February last at Chica- 1 go. The convention was called because | of the extraordinary disclosures of | wrongful insurance methods recently ! made by the Armstrong legislative l committee of the State Of New fork l the suggestion that 1t should be called 1 coming to me originally from GOV John A. Johnson of Minnesota through l Commissioner of Insurance Thomas U. O'Brien of that State. l "The commission consisted of about I 100 governors, attorney generals, com = missioners of States and territories or | the Union. The convention was seek | ing to accomplish uniformity of in- surance legislation throughout the States and Territories and as prime step towards this purpose decided to endeavor to secure the enactment by inc Congress of the United States of A proper insurance code fer the Dis trict of Columbia which might serve as A model for the several States. Before adjourning the convention appointed committee of three attor- ney generals and twelve commissioners of insurance of the various States to prepare and have presented to the Con- gress a bill which should embody the features suggested by the convention. The committee recently met in Chi cago. and in thorough. painstaking fashion sought to prepare bill which should be at once protective of policy holders and fair and just to insur- ance companies, and which should pre- vent the graver evils and abuses of the business, aHu aJ tnG 5dftft tillIC IofC stall any wild or drastic legislation which would be more harmful than beneficial.
 "The proposed bill is discussed at length in the accompanying letter by Superintendent Thomas E. Drake Of the Department of Insurance in the District of Columbia.
 T very earnestly hope that Con- gress at the earliest opportunity will into law with such changes as it's wisdom may dictate. I have no expert familiarity with tho business, but I have entire faith in the right judgment and single minded pur- pose of the insurance convention which met at Chicago and the committee of that convention which formulated tue measure herein advocated. We are nr to be pardoned if we fail to take every step in our power to prevent the pos sibility of the repetition of su;h scan dals as those that have occurred in connection with the insurance bpsi- ness as disclosed by the Armstrong committee.
 Theodore Roosevelt.
 "The White House. April 17, 1J06," The bill recommended was drafted by amending the measure introduced in Congress by Representative Butler Ames, (Mass.) It provides for the es- tablishment of an insurance bureau in
 the Department of Commerce and Labor
 and for the appointment of commis-
 sioner who shall have no official con-
 nection with any insurance company.
 or who shall not be interested In the
 business of any company except as rolicyholder The commissioner is re- quired to at least once In three years
 examine all companies doing busi- ness in the District of Columbia.
 Forms are prescribed for the issuance
 of annual statements and the com
 missioner is authorized to demand other information from the companies If he believes 1t necessary.
 If. upon the examination, the com missioner is of the opinion that any domestic insurance company is insol- vent, or has exceeded its powers or is in any manner transacting business contrary to the provisions of this act, the bill provides the commissioner shall lay the fact before the attornev general. who may apply to the Supreme Court of the District for an injunction restraining its further business. Under the same conditions, he is authorized to revoke the certificate of a foreign insurance company.
 A minimum capital stock of $50.000 is proposed for accident companies; $100,000 for plate glass and elevator insurance; $200,00O for all other com panies. It limits the investment of capital stock. Companies may also be orga nized on a preliminary stock plan.
 Directors are made liable for any illegal investments and companies arc rot permitted to do both a participat- ing and a participating business
 Under the requirements of the organi- zation of insurance corporations, the capital stock shall be paid In within twelve months after the date of organi- zation but no policies shall be issued until the capital stock has been paid in. The bill provides for the invest ment of the capital of domestic compa- nies practically as Is provided by the Ames bill.
 The bill contains plan whereby all policyholders shall be enabled to par ticipate in the election of directors at the annual meetings. The salaries Of all officers and agents over $50o0 a year must be authorized by vote of the Board Gf Directors of the inSur- ance corporation. Pensions cannot be voted to a member of the family of an officer after his death and dlsbursa a- ments of over $100 require properly ftemized vouchers. The bill prohibits rebating of portions of premiums aud discrimination between classes of i'm sured standard forms of poli,'es are prescribed. A policy cannot be far | feited after the payment of full annua; | premiums No insurance cpmpany which issues contract, the perform
 ance of which is contingent upon ,ho