The Birmingham age-herald., 1906-02-23

received upwards of S1 ,O0o.000 from the New York Life on warrants of It's presi- dent in connection with it's bureau of legislation and taxation, has remained abroad and has failed to render any proper account showing1 the disposition of the money. The officers of the com pany say they have no knowledge of the uses to which 1t was put. The officers Of the Equitable, from whom light might have been expected on the disbursements of their company, either have remained out of the jurisdiction or have been dis abled by illness. On account of the ab- senee of the necessary witnesses and the lack of proper vouchers, the committee has been unable to trace the moneys said to have been dlsbursed in connection with legislation. But while 1t Is sufficiently evidence that large sums have been dis bursed for improper purposes 1t is also clear that payments for confidential out lays exempt from audit have furnished abundant opportunities for misappropria- tions. They suggest the necessity of re- ouiring & strict accounting from those who are responsible for the payments as well as from the agents who have re- ceived the moneys.
 It has been insisted that the insurance companies have been so continuously menaced by the Introduction of proper and ill-advised legislative measures in many states that they have been com pelled to maintain constant watchtul- ness and to resort to secret means 10 defeat them. An insurance corporation however, holds position of peculiar ad- vantage in opposing legislative measures which really antagonize the interests Of policyholders very large proportion of the voters of the state hold policies of life insurance It Is easy for the com pany to apprse them of hostile legislative measures and in addition department of the state government exists for their protection whose recommendations nave rarely failed to receive proper consider alton in the legislature. It Is not difn- cult matter to direct public attention to an objectionable bill affecting life insur- ance corporations or to have opposing argument and criticism effectively pre- sented Again, if in spite of argument fairly and publicly presented, the legis- lature insists on passing law inimieal to the true interests of the companies IL Is not the officers but the policyholders who must bear the loss and the conse- auences which can readily be pointed out are most certain to bring about an early repeal of the obnoxious Legislation. Ihe employment of agents to disburse large sums and of clandestne methods to de- IedL ieBlSlhlloh 10 WANA@
 Should Restrict Legislation.
 The pernicious activities of corporate agents in matters of Legislation demand that tho present freedom of lobbying should be restricted. They have brought suspicion on important proceedings Of the legislature and have exposed US members to consequent assault Ihe legislature owes it to itself, so far as
 41,. n expenditure of moneys ostensibly for serV- ices in connection with the support or or opposition to bills and generally be- lieved to be used for corrupt purposes.
 The legislature should free itself from the stigma which now attaches 10 the progress of measures affecting important interests The laws against bribery ana corruption, offenses which are difficult or proof, are sufficiently stringent. but an effort should be made to strike at the root of the evil by requiring under prop CT penalties full publicity with regards to moneys in connection with the matters hefore the legislatures Corporations should be required to keep accounts and vouchers in which all such payments should be fully detailed and receipted for and an adequate statement regarding them should form part of such reports as may be required.
 Tn the case Ol luoht aiiSO WI PSAHNi'f'@ the remedy lies first, generally within the requirement. of a proper autho1za- ton of all expenditures and vouchers stating in detail the purposes for which moneys paid for legal expenses In con- nection with / legislative matters have been expended. And further tho com pany should be compelled to set forth in its annual statement to the superin- tendent of insurance all sums so dis 4lNo af payers, the amounts paid and the spe- .eifc purpose of the payment.
 Professionals Sometimes Necessary.
 Professional services in promoting legis- lation may be entirely honorable and are frequent necessary. In England members of the so-called parliamentary bar have been held in deserved esteem. The draft ing of bills and the presentation of argu- ments for and against their enactments before legislative committees call for high order of professional ability In Massachusetts and fin Wisconsin statutes have been passed requiring that persons who professionally advocate or oppose legislation affecting corporate interests should enter regular appearances and disclose for which clients they are acting. In Wisconsin 1t is made a misdemeanor fo rany person to accept fee contingent upon the passage or defeat of a pending measure and by statute passed there in 1905, it is made unlawful for any person employed for 6 pecuniary consideration to attempt personally to direct or influ- ence a member of the legislature to vote for or against any pending measure oth- erwise than by appearing before regular committees, by publications public ad- dresses or by statements, arguments or briefs delivered to all members of the legislature and filed in the office of sec retary of state We are not inclined to recommend legislation on this subject which will interfere with the presenta- ton to a legislator of the views of his constituents or of citizens generally, but we believe that where legislation Is op- posed or promoted by paid professional advocates the matter should be the sub ject of suitable regulation.
 The committee therefore recommends that the legislative law be so amended that every person retained or employed for compensation as counsel or agent to promote or oppose the passage of bills or resolutions by either house or execu- tive approval of such measures shall before entering upon the service, file in the office of the Secretary of State a writing stating the name or names of his employer, together with brief de- scription of the legislative matter with reference to which the service Is to be rendered. The Secretary of State should be required to provide docket to be known as the docket of legislative ap- pearances," with appropriate blanks and indices fin which the names of counsel and agent may be properly entered. Fees con tingent upon legislative action should be prohibited It should also be made the duty of every corporation and associa- tion, doing business In the state within a aax..tr