Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-02-22
10 PAcEs-LAsT EDITION.

should be limited to the nominated can
didates and suitable provisions should
be made for new nominations and the
casting OF votes under proxies In case
OF the death or incapacity OF any person
nominated. Provision should also be
made for the proper custody of bal
lots received by mail and dIsinterested
persons should be appointed 10 act as
inspectors of election"
As to stock companies. the commit
tee recommend naturalization.
INVESTMENTS.
On the subject of investments OF life
insurance companies, the committee.
after declaring against "syndicates
recommends that the law be amended
so as to provide
l. That no Investment IN the stock
or any corporation shall be permitted
except In public stocks Of mutual cor
porations.
2. That Investments in bonds secured
to the extent OF more than one-third
OF the value OF the entire security
therefor by the hypothecation OF COR
poration stock shall be prohibited.
3. That no. loans shall be made on
such stocks and bonds which are not
above provislonS
4. That every company now owning
stocks or bonds of the prohibited class
shall be required to dispose OF the
same within five years from Dec 81.
1906, and each year prior thereto shall
make reduction of the amount Of
such Investments to an extent approved
by the superintendent of insurance.
5. The statutes should also forbid all
syndicate participations, transactions
for purchase and sale on Joint account,
and the making of any agreement pro-
viding that the company shall with
hold from sale for any time or sub
ject to the discretion OF others, any
securities which II may own or acquire.
Cit should also be provided that no
officer or director should be pecuniarily
interested either as principal, co-prin-
cipal. agent or beneficiary In any pur-
chase. sale or loan made bY the corpor-
alton except In case of loan upon
his policy.
The committee recommends limiting
the amount of new business which each
Of the larger companies may take to
$50, 100000 year, and that no, company
doing business In the state, except the
industrial companies. shall Issue poll
cies In excess OF certain prescribed
limits.
POLITICAL CONTRIBUTIONS.
Contributions by insurance corpora
tons for political purposes should be
strictly forbidden. The committee rec
ommends the passage OF an unequivo-
cal and drastic measure to remedy this
evil, Not only should Il be expressly
prohibited and treated as a waste of
corporate moneys. but any officer. direc-
tor or agent, making, authorizing or
consenting to any such contribution
shall be guilty of mlsdemeanor and
the prohibition should be extended to all
corporate contributions of this char
acter.
Nothing disclosed by the investiga-
ton 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 Of
fensive defensive alliance to procure or
to prevent the passage or laws affect
ing not only Insurance but a great
variety Of important interests to which,
through subsidiary companies, or
through the contributions OF their Of
ficers they have become related. Their
operations have extended beyond the
state and the company has been d.
vided into districts so that each COM
many might perform conveniently its
share OF the work Enormous sums
have been expended in surreptitious
manner. Irregular accounts have been
kept TO conceal the payments for which
proper vouchers have not been required
This course Of conduct created wide
spread conviction that large portion
OF this money has been dishonesty
used.
FIELDS AND HAMILTON.
Andrew Fields, who represented the
Mutual and the Equitable In legisla-
tive matters and was In control OF
the supply department of the former
company. remained beyond the juris-
dictlon during the sessions of the COM
mittee. The general solicitor OF the
Mutual, to whom the chairman of the
committee on expenditures entrusted
large sums. died just before the be-
ginning of the investigation and APP
parently left no account as to how the
money had been spent. Andrew Ham.
ilton, who within 10 years, received
upwards Of 100000 from the New
York Life Insurance company upon
the warrant Of Its president, In con-
nection with its bureau OF legislation
and taxation, has remained obroad and
has failed to render any proper ac-
count showing the disposition OF the
say that they have no knowledge OF
the useH TO which Il was put. The Of
ficers of the Equitable from whom
light might have been expected upon
the disbursement of their company
either remained out of the turlsdic-
ton or have been disabled by illness.
on account Of the absence of the
necessary witnesses and the lack OF
proper vouchers the committee has
been unable to trace the money said
TO have been disbursed In connection
with legislation. But while 1t Is SUIT
fciently evident that large sums have
been disbursed for improper purposes,
II Is also clear that payments for con-
fidential OUTLAWS exempt from audit
have furnished abundant opportunities
for INSTRUMENTATION They suggest
the necessity If requiring a strict ac-
counting from those who are respon-
sible for the payments, as well as from
the agents who have received the
moneys.
Ii has been insisted that the insur-
ance companies have been so continu-
ously menaced by the introduction OF
improper and III advised legislative
measures I'm many states, that they
have been compelled to maintain a
constant watchfulness and to resort
10 secret means to defeat them. An
insurance corporation, however holds
n position of peculiar advantage In
onposlng any Legislative measure
which really antagonlzed the interest
Of policyholders. very large pro-
norton of the voters of the state hold
pollcles of life insurance. II Is easy
for the company to apprise them OF
hostile legislative measures, and IN ao-
dltion a department of the state gov
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