Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-02-24
NEW YORK COMMITTEE MAKES
REPORT ON INVESTIGATION
OF METHops q
FOR MUTUAL CONCERNS
Recommendations In Report Favor the
naturalization Of Stock Companies,
Bona Eide Election Of OFFICERS, Laws
Governing Investment Of Company
Moneys.

Governing Investment Of Company
Moneys.
Albany, N. Y, Feb. 22.-The
report Of the Armstrong special
insurance Investigating committee
was presented In both houses Of
the legislature today. 1t was ao-
companied by eight bills designed
to carry into effect in detail the
recommendations Of the commit
tee.
In statement made to newspa-
per men before the presentation
of the report, Senator Armstrong
said he hoped to have passed be-
fore April 15, bill which will de-
fer the annual elections in mutual
companies from April Is to No
vember Is. This, it Is believed,
probably would nullify all proxies
obtained up to this time by Tho
mas W. Lawson, and his policy
holders, the committee Of state
governors and others, as well as
those which the management of
the companies themselves have
been gathering through their
agents.
st. Paul, Feb. GA synopsis
of the report Of the Investigation
of the insurance commissions of
five states into the affairs of the
New York Life Insurance compa-
ny, which will be made public in
Louisville tomorrow, was given
out by Minnesota, Kentucky, Wis
consin, Nebraska and Tennessee.
1t will report that the figures in
the last annual report of the COM
pany have been verified to the ex-
tent that the $62,O00,00O surplus
claimed actually exists. The re-
port will contain four principal
criticisms against the way the
company Is doing it's business at
present.
The deferred dividend plan will
be condemned, the investment OF
a great proportion of the assets in
bonds will be deprecated, greater
publicity in certain features of
the business will be recommended
and more representative form OF
government will be advocated.
New York, Feb. 20. - The life insur
ance investigation committee today
submitted its report to the New York
legislature. 1t is voluminous docu
ment encompassing the investigation
of fifteen companies organized under
the laws of New York and In addition
of the Prudential Life Insurance com
pany Of New Jersey.
Recommends Mutual Concerns.
The committee recommends that the
insurance laws be so amended as tt
permit the formation under certain re
strictions Hereunder Of mutual cor
porations without capital stock tx
transact business Of life insurance ant
to prohibit in the future the incorpor
ation Of companies upon cooperative
or assessment plan. Concering the sc
called mutual companies the commit
tee says:
Policy Holders PowerIess.
Notwithstanding their Theoretical
rights the policy holders have had Iii
tie or no voice in the management. En-
trenched behind proxies easily collect
ed by subservient agents and runnin
for long periods, unless expressly re
voked, the officers of these companie
have occupied unassailable positions
and have been able to exercise despot
| ic power. The most fertile source 9
evils In administration has been tn
responsibility Of official power"
Plan for Choosing Officers.
A plan is recommended for the non
ination and election of officers provit
ing that each policy holder shall hav
one vote.
AS to stock companies, the commit
tee recommend naturalization.
Investment Of Company Funds.
On the subject of investment life IL
surance companies, the committee
after declaring against the "synd
cate" recommends that the law b
amended so as provide that no inves
ment in the stock of any corporatio
shall be permitted, except in publ
! stocks and municipal corporations.
Would Limit New Business.
The committee recommends limi
ing the amount of new business whic
each of the larger companies ma
take to $150,OO0.OO0 each year. and ths
no company, except industrial comp
MES, shall issue policies in excess {
certain prescribed limits.
Political Contributions.
1 Contributions by insurance corp
rations for political purposes should /
strictly forbidden" says the repor
and the passage of an unequivoc
drastic measure to remedy this evil
recommended.
i Would Restrict Lobbying.
| Regarding lobbying, the report says
Nothing disclosed by investigation d
J, serves more serious attention than tt
J systematic efforts Of the large insu
ance companies to control a large pa
of the legislature of the state The
have been organized into an offensiy
, and defensive alliance to procure