The Barre daily times. (Barre, Vt.) 1897-1959, 1906-02-23
Gust All Directors and Cancel
Proxies Startling Feature
TOSECURE NATURALIZATION
Policyholders to Be Given Opportunity
to Name Their Own Candidates for
Directors and to Vote for
Them.

Albany, Feb. 20. The report Of the
Joint legislative committee appointed
to investigate the affairs Of life insm-
ance companies was presented to the
states lawmaking body yesterday.
The report was accompanied by eight
bills, designed to carry into effect In
detail the recommendations Of the com.
mittee. Mr.. Armstrong asked leave for
the committee to submit supplemental
report, which will contain the proposed
forms Of the standard life insurance poll
cies, to be prescribed BY law. He prom
ised this report next week. The bills
were referred at once to the committee
on the whole.
Remedial legislation, drastic in charac-
ter, and striking at the abuses which
were uncovered AZ the result Of the pub
lie hearings held in this city, and III
which Charles Il. Hughes acted as in.
quisitor, is recommended TO the legisla-
ture.
In a lengthy digest of the testimony
addueed at the hearings, Mr.. Hughes,
in forcihle but judicial language, con
denins the abuses which, he found, had
existed in the big life insurance com
-panies, directing hiis attention to not
able extent to Andrew G. Fields, legis
latiye agent Of the Mutual Life; Andrew
Hamilton, who held similar position
with the New York Life, and 4. ID. Jor-
dan, formerly controller Of the Equit-
able.
Power for Policy Holders;
In treating OF the control, or the
rights Of policyholders in the election
Of directors the committee finds that
Notwithstanding their theoretical rights
policyholders have had little Or no voice
in the management"
II Is pointed out that the officers, in
trenched behind proxies, have occupied
unassailable positions, and have been
able to exercise despotic power The
committee declares, in this connection,
that ownership Of the entire stock Of
an unmixed stock corporation scarcely
could give tenure more secure
The recommendation is, therefore,
made that 4 law be enacted providing
that @at least five months prior to each
election, lists of policyholders having at
least 81 900 OF insurance in force, prop
erly classified BY states and countries,
giving names and addresses, but not the
am0Hnt OF insurance, should be filed
with the superintendent of insurance,
and similar lists should be open to in
|spcetion at the home office of the cor
porations."
II is further provided that voting
should be limited to those who have
been insured at east ono year before
been insured at least one year before
force when the election is held. .Also
that any group OF 100 members should
be permitted 10 file with the superin-
tendent nominations independent OF
those made by the various boards Of
trustees.
The companies should be compelled
SO the report recommends, TO circulate
ballots containing the names of all can
didates who have been nominated, either
by the trustees or Independently, aud
TO cancel all proxies.
Provisions for Voting:
Provision is made iii the recommends
ton for voting in person, by mail. or By
proxy, and for the limitation of the life
Of proxies to two months proceeding
each election.
In order to insure q fair start in the
new plan Of control the committee rec.
ommends that special act be passed
providing for the expiration Of the terms
Of Office of existing directors on Nov. 10
next, and for the postponement of all
annual meetings Of mutual companies
until that date.
In this way it is believed policyhold-
ers can be informed Of all nominations