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

NContinueo rom flrst Fa9s)
 
 incorporated in the future and foreign companies of this sort not already trans- acting business in this state should not be permitted to enter the state.
 Concerning Mutual Companies.
 Concerning the so-ealled mutual eanl- panies, the committee says:
 Notwithstanding their theoretical rights policyholders have had little or no voice in the mana cement. EntreEched behind proxies easily collected by subservient agents and running for long periods, un- less expressly revoked, the officers of these companies have occupied urassail- able positions and have been able to ex- ercise despotic power. Ownership of the entire stock of an unmixed stock corpo- ration scarcely could give tenure more secure. The most fertile source of evils in administration has been Responsibility of official power. However, much this may be expected in the case of absolute stock control, in that of mutual com pany in proceeds from a fragrant dlsre- gard of the law of its being. While 1t would be plainly unwise that the manage ment of a life insurance company should be rendered unstable or that it's personnel should be frequently changed, 1t Is of the first importance that officers should real ize their direct responsibility to those whom they represent and should rely for their continuance in office on proved eff cacy and not on a practical inability of the policyhoders to depose them.
 Plan Is Recommended.
 With these objects In view, the follow ing plan Is recommended: At least five months prior to each election lists of policyholders having at least 5000 of in- surance in force, properly classified by states and countries, giving names and addresses, but not the amount of insur- ance, should be filed with the superin- tendent of insurance and similar lists should be open to inspection of policy holders within each state and foreign countries and filed at the general agencies of the company in such jurisdictions.
 Voting should be limited to those who have been insured at least one year be- fore the election, and whose policies are still in force when the election Is held The board of trustees or directors should annually nominate candidates to be voted for at the next election and should file it's nominations with the superintendent of insurance at least four months before the election, together with designation of persons to receive proxies to vote for such candidates. It should also be pro- NlutQ lndl diS biohP Oi INV hiNiHpNi Q should be privileged to make and file with the superintendent nominations, to- gether with names of persons who will receive proxies to vote for the candi- dates at least three months before the election. The corporation should be re- quired at least two months prior to the election to mall to each policyholder no tice of the election. together with suit able ballot, containing the names of all the candidates whose nominations have been duly filed, with properly addressed envelope enclosed for the return of the ballot The periods above mentioned have been fixed in order to give opportunity to reach distant policyholders. Votes should be limited to the nominated can didates and suitable provisions should be made for new nominations and the east ing of votes under proxies in case of the death or incapacity of any person nom.- mated Provision should also be made for the proper custody of ballots received by mail and disinterested persons should be appointed to act as inspectors of cleo tion."