Waterbury evening Democrat., 1906-01-03
ALBANY ACTIVE PoliticiansofeyeryShad
 There. LEGISLATURE. OPENS Senator Chauncey M. Depew Asked to Resign-O Odell Present
 Governor Higgins
 Message.

l TOT the aSSeIuDly SpedktISHlp III MohJ years: the understanding that Senator Edgar S. Bracket of Saratoga would i introduce his joint resolution request ing the resignation of United States Senator Chauncey M. Depew; the in
 tensftyl of feeling resulting from the
 disclosures of the insurance investiga,
 ton all these things drew upon the
 opening of the session to-day degree
 of public interest greater than for
 many years past
 There was very much more than I the usual interest also in the annual
 message of Governor Higgins to the Legislature
 l The political atmosphere to-day was
 strangely quiet after the speakership
 struggle.
 State Chairman Odell left for New
 burgh. He would say nothing as to the speakership, the state chairman ship or his future plans.
 Soon after convening, Governor Hig- gins presented his message, which was
 as follows:
 Governor Higgins message to the legislature, which was presented to that body to-day, was awaited with
 much interest because of what he might say regarding the legislative in vestigatiOn of the insurance compan- ies. The governor in his message urg- ed drastic insurance law and hinted at the necessity of other forms of in- surance. The governor says:
 1.-The eyes of the whole world are fvrp o,,<1e, .h this legislature does not produce an
 insurance law which shall be drastic
 but practicable. radical but sane. in d
 spirit which shall be courageous but
 not hysterical, it will fail to meet the
 expectations of those who have confi-
 dence in the ability of popular govern
 ment to solve its own problems as
 they arise.
 Future effective action by congress
 or the xederal government is not prob-
 able and the possibility of such action
 should not for an instant retard the
 work of the state.
 While life insurance has received
 almost exclusive attention it cannot be assumed that other corporations dealing in indemnity and investment contracts have been blameless. and q word of caution may not be amiss re- garding assessment associations. ac- cident insurance companies, cooper atiye fire insurance companies and the like. Better allow free and unregu- lated insurance than permit such con- cerns to exist under laws which do not protect our citizens but enable the promoter of doubtful schemes to be- guile the investor to financial disap- pointment and fatten himself on false promises and deluded hopes.
 "The policy holder now demands something better from the state than a guarantee of sOlvency. He has learned that his insurance will be cheaper and safer when the companies are compelled to invest their assets for his benefit exclusively. and are prevented from diverting funds to the individual undertakings of specula- tive directors and to the payment of vast salaries and exorbitant cOmmis- sions, gratuities to men of influence and contributions for political cam paign purposes. He invokes the pow CT of the state to shield him more effectively and to curb the companies ana tnclr ulrectOrS.
 "You will be called upon to make radical revision of the law for the ben eft of investors in life insurance and for the regulation and restraint of the companies. We may we'll consider ar this time the expediency of provid- ing for more thorough regulation by the department of insurance. Under the new insurance law of Germany, not only are thorough investigation and publicity insured. but the govern ment director actually enters into the | business methods of the corDoratfon.
 We can learn much from a careful examination of this law. although some of it's provisions may be deemed 100 paternal for our differing con ditions of business and political life, or objectionable as leaving too mucn to the discretion of the insurance de partment
 '"The funds of insurance conl- panies should sacredly be safe guarded for the policy holders by the state and every element of per sonaI gain eliminated from their man To accomplish this result it | has been suggested that large amounts | ought. for the safety of the insured as well as for the good Of the commm- l fly. to be invested in bonds secured | by mortgages on real estate at a con Servative valuation: that deposits with | or loans to moneyed corporations should he subject to suitable reStric- tions: that the control of subsidiary companies should not lr permitted; that insurance dirertors should nave no conflicting business connections: that investments in corporate bonsIS should he regulated so as to prevent | speculation and loss from an attempt to float doubtful enterprises: that T,oIi- ries should be of standard forms 70 that the abuses arising from ambig- uity. complexity and incOmpletenesS of the contract may he ersdicarei and the contract matlp definite in form and substance: that a uniform system 1f audits and sccounts should he prr- srribe-i hy the iTE<urznrs. department hat full publicity fo policy hoIderS should he assured: that deferred d.vi- lend Tolieies <eould h-e prohibited or greatly restricted: that polIcie< sboukl he further safexIIsrlp,I from for feiture. that an equitable distribution ,f the gains of the coalpeny to the policy bolders eatifted fherefo should tzp rr~1ufrp<7. frzr r->x7~.r krR.zc~. .R-.--rsr