The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-02-22
1T is A WHOPPER.
Report Of the Insurance Inves-
tigating Committee.
Covers a Printed Pamphlet Of
3I9 Pages.
PRESENTED AT ALBANY
Summary Of the Findings and
Recommendations.
Policy Holders Have Had Little
Voice in Management.
PRESENTED AT ALBANY

Olce IN management.
Albany. Feb. 22-The report Of the ARM
strong special insurance investigating
committee was presented IN both houses
of the legislature today. 1t was accom-
panied by eight bills designed to carry
into effect in detail the communications
of the committee. Senator Armstrong
made statement ia which he said that
counsel for the committee, MT. Hughes,
MIR. 1cKeen and himself had worked
on the bills until o'clock this morning
and had then finished their labors. He
asked leave for the committee to submit
q supplemental report which win make
the proposed forms Of the standard in
surance life policy to be prescribed by
law. He promised this report next week.
There viii be a public hearing on the
bills before the Investigating committee
itself on Friday March 9. in the assem-
bly, chamber.
In a statement made to newspaper
men before the presentation OF the re-
port, Senator Armstrong said he hoped
to have passed before April Is. the bill
which will defer the annual elections in
the mutual companies from April 10 to
November Is. This, it is believed, pro-
badly viii nulhfy allprodes obtained up
to this time by Thomas w. Lawson and
the policy holders committee of state
governors ana others, as well as those
which the members of the committee
themselves have been gathering through
their agents
The Report.
New York, Feb 22.-The report of
the joint committee of the senate ami
assembly of the state of New York ap-
pointed to investigate the affairs of the
SIN mr. ma nj az a
printed pamphlet of 319 pages.
After reciting the resolution author
izing the work and the alan adopted
for the investigation by the committee
each individual company is passed IN
review. There are fifteen companies
organized under laws of New York is
suing level premium policies and in a
single instance only the committee de
parted from the policy of limiting its
investigation to companies organized
under the laws of New York This
company was the Prudential Life In
surance company of New Jersey
The matters demanding the cOnsid-
Grafton of the legislature for the pur-
pose of remedying existing evils and OF
ablishing more securely the business
of life Insurance in this state are
grouped under the following heads.
Organization of life insurance
interpretations.
Control or the rights of policy
holders in the election OF directors.
3.-Retiren ent of stock.
Investment. including syndicate
participations.
Limitation of new business.
6.-POlitical contributions.
7.-LObbying
Stimulation of expenses.
9.-ValuatiOn of policies
10.=Rebates
11.-Surrender values
-Ascertainment and distribution
Of surplus
an a6ise of r,olfc45l, oIl7ers or
right to resort to the courts.
14.-FOrms of policies.
15.-Publieity and state supervision.
16.-Penalties.
Recommendations
The committee recommends that ar
ticle IL Of the insurance law be so
amended rs to permit the formation
thereunder Of mutual corporations with
out capital stock to transact the busi-
mass of life insurance and for such other
purposes as are authorized to be con
nected herewith in the case of stock
corporations; provided at leas. 500 per-
sons have subscribed to become mem
bers therein in the aggregate amount
of at least 81 100000 to be insured upon
their lives and shall have each paid in
one full annual premium in cash upon
the Insurance subscribed for and pro-
Vided further that 1t shall make the
same deposits with the superintendent
OF insurance that are required Of stock
corporations formed for similar pur-
poses
Section 200 permitting the incorpora-
ton of companies upon the cooperative
or assessment plan. should be amended
60 as not to permit such companies to
be incorporated in the future and for
eign companies of this sort not already
ttansacting business in this state should
not be permitted to enter the state.
Concerning the socalled mutual COM
panies. the committee says:
Notwithstanding their theoretical
rights policyholders have had little or
no voice in the maue cement.
Entrenched behind proxies easily col
1eCted by subservient agents and rum
ming for long periods. unless expressly
revoked. the officers of these companies
have occupied unassailable positions
and have been able to exercise despOtiC
power. Ownership of the entire stock OF
of an unmiXd stock corporation scarce
ly could give a tenure more secure The
most fertile source of evils in admin
istratf0n has been irresDOnsi bility OF
official power However much this
may be expected in the case of abso-
lutte stock control in that of a mutua
company it proceeds from a fagran
disregard of the law of its being
While it would be plainly unwise tina