The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-02-23
to all corporate contributions Of this
Substituting is Serious.

to all corporate contributions OF this
character.
Substituting is Serious.
Nothing disclosed by the investigation
deserves more serious attention than the
systematic efforts of the large insurance
companies to control large part of the
legislation of the State. They have been
organized into an offensive and defen-
sive alliance to procure or to prevent the
passage OF laws affecting not only In
surance. but great variety of important
interests to which. through subsidiary
companies. or through the connections
of their officers. they have become related.
Their operations have extended beyond
the State and the country has been d.
vided into districts so that each COM
pany nigh perform conveniently its share
of the work. Enormous sums have been
expended in n surreptitious manner. IT.
regular accounts have been kept to con-
ceal the payments for which proper
vouchers have not been required. This
course of conduct has created wide
spread conviction that large portions
of this money have been dishonesty used.
1.-THE pernicious activities of corporate
agents in matters of legislation demand
that the present freedom OF lobbying
should be restricted. They have brought
suspicion upon important proceedings of
members to consequent assault
IAN effort should be made to strike Mt
the root of the evil by requiring. under
proper penalties. full publicity with re-
gard to moneys expended In connection
with matters before the Legislature. Cor
porations should be required to keep ac-
counts and vouchers. in which all such
payments should be fully detailed and
recepted for and an adequate statement
such reports as may be required
Want New Boards
One of the most Important of the laws
regulating mutual companies and recon-
mended by the investigating committee,
looks to the giving to policyholders of an
opportunity to elect entirely new boards
of directors as soon as the provisions OF
such a law can be made applicable. To
that end the committee recommends a
special act providing for the expiration
of the terms Of office of existing direc-
tors OF such companies on the fifteenth
day of November next, and that the an
nual meetings, which would otherwise be
held at an earlier date should be post
poned to that time. In this way
1t would be possible for lists Of policy
holders to be filed under the statute. fof
nominations to be made and for thc
policyholders to cast their votes In person,
by proxy or by mail. as they may desire.
All existing proxies should be declared
void, so that no proxies should be voted
at such elections other than those which
are given under the statute within two
| months prior thereto. The first election
should be under the supervision of the
superintendent OF insurance, who should
be directed to appoint inspectors of cleo
tons and see that 1t Is conducted accord
ing to law The new boards OF directors
should divide themselves into two classes,
so that thereafter one-half OF the board
may be elected annually, and errors in
management promptly corrected. AS the
annual election in one of these companies
would otherwise take place In April. It
Is important that this special act should
be passed immediately.
Legitimate Expenses.
AS to expenses the committee says:
'By the limitation OF their new bust
ness, the three great companies will be
able very largely to diminish their agen-
cy le,dnenses. This also relieves the
smaller companies to marked degreo
of the competition to which they have
hitherto been subjected Some limita-
, ton of the expense in getting business
is imperativelys required; otherwise there
Is little reason to doubt that there will
be continuance Of the present extrava-
Eant methods"
The committee recommends tho adop-
ton of standard forms of policies, SIM
pie In form and in clear and concise Ian
guage,
Tho committee expresses dlsapproval of
deferred dividends, saying'
There Is no reason why the dividend
should not be annually declared The de-
ferred dividend plan Is to BIO supported
If at all. upon tho ground that there
should be no Interference with freedom
of contract But in this matter free
dom of contract should yield to import
ant public policy. or all the reforms
suggested by tho committee, nothing. It
Is believed. Is more imperatively demand
cd than that the companies should be
compelled to exhibit the results OF their
management by annual accounting"
He Made Sure.
A story Is told of the Sudan railway
which shows patient llteralness. To an
Official there came the telegram from
an outlying station; ''Station master
has died, Shall bury him?" The re-
ply was sent: Yes; bury station mas
ter. but please, make sure he is really
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