The Providence news. (Providence [R.I.]) 1891-1906, 1906-01-03

GOVERNOR HIGGINS MESSAGE.
Governor Higgins message TO the legis-
lataire which was presented TO that BODY
today was awaited with much interest
because Of what he might say regarding
the legislative investigation OF the IN
surance companies.
The governor. in his message urged n
drastic insurance law and hinted at the
necessity OF a like investigation or other
forms of Insurance.
The governor says:
"The eeys OF the whole world are now
turned towards New York and II this leg
islature does not produce an insurance
law which shall be drastic but practicable
radical but sane, In spirit which shall be
coura geous but not hysterical II VIII ran
10 meet the expectations or those VINO
have confidence IN the ability OF popular
government To solve Il own problems, as
they arise
Future effective action by Congress or
by the federal government is not proba-
BILE and the possibility OF such action
should not retard for an Instant. the
work OF the state.
while life insurance hmas received al
most Exclusive attention IL cannot be as
sumed that other corporations dealing in
Identities and investment securities have
been glameless and n word or caution
may not be amlss regarding assessment
corpanies accident Insurance companies; ;
cooperative fire insurance companies and
the like. Better allow free and unregula-
ted insurance than permit such concerns
TO exist under laws which do not protect
our citizens but enable the promoter Of
doubtful schemes tao beguile the investor
10 financial disappointment and fatten
himself promises and deluded hopes.
The policyholder now demands some
thing better from the state than a guar
nntee of solvency. He has learned that
his insurance will be cheaper and safer
when the companies are compelled TO in
vest their assets for his benefit exclusive
Is. and are prevented from diverttng
funds 10 the individual undertakings OF
speculative directors and 10 the payment
OF vast salaries and exhorbitant COM
missions, grauities 10 men OF influence
and contributions for political purposes.
He invokes the power W the state to
shield him more effectively and 10 curb
the companies and their directors.
"You will be called upon 20 make a
radical revision OF the law for the benefit
OF investors In hfe Insurance and for the
regulation and restraint OF the companies
We may well consider az this time the cx-
pediency OF providing for more thorough
regulations by the department OF insu-
rance Under the new insurance law OF
Germany not only are thorough invcstiga-
ton and publicity insured. but the gov
ernment director actually enters into the
business method OF the corpora tlon.
I'VE can learn much from "a careful
examination OF this law, although some
OF its provisions may be deemed too pa
ternal for our differing conditions OF busi-
ness and political Hfe or Objectionable as
leaving too much 70 the discretion OF the
insurance department
THE funds OF Insurance companies
should sacredly be safeguarded for the
policyholders by the state. and every ele-
ment OF personal gain eliminated from
their management To accomplish this
result n has been suggested that large
amounts ought. for the safety OF the N
sured. as well as for the good OF the COM
munity 90 be Invested IN bonds secured
by mortgages on real estate at couser-
yative valuation that deposits with OF
loans 10 moneyed corporations should bs
subject 10 suitable restrictions. that the
control Of subsidiary companies should
not be permitted: that Insurance directors