Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-02-18
Measure If Passed Will Prevent
Chicanery and Bad Transac-
lions With Holders Money
SENATOR MATES THE AUTHOR
Sill Provides Holders Of Not Less Than
One fifth But Less Than Majority of
Shares of Capital Stock Of Corpora
tions Shall Be Entitled to Proper.
tionats Representation on Board.
Special to Times Republican.

I tors Of fire and life insurance compan-
les in Iowa to the minority stockhold-
ers is now being considered in the sem
ate committee and Its author, Senator
Mates, hopes for favorable report.
1t is claimed that the measure, II
passed, will do more to prevent CHI
canery and questionable transactions
with the policy holders money than
any other piece of insurance legisla-
ton that has yet been adopted.
This bill, senate file No. SO, provides
that 1.-The holders of not less than one
fifth. but less than a majority of the
shares of the capital stock of corpora
tons organized on the stock plan under
the laws of this state, for the transac-
ton of fire and life insurance business"
shall be entitled to proportionate rep
resentation on the board OF directors
of the companies, and also provides the
manner in which such. election shall be
made.
The measure does not take from the
control OF the majority the control of
the company, but 1t will give tibet n1i-
nority representation on the direc-
torate sufficient to prevent extrava-
gance and Juggling of accounts. There
are numerous companies In Iowa In
which the organizers have retained a
bare majority OF the stock, and as soon
as the company was placed on paying
basis, the minority have been denied
representation on the board for direc-
tors, and campaign of freeze-out has
been played.
"The day has gone by" said Senator
Mates, when an insurance company
is considered an organization purely
for private gain. 1t is quasi public
institution. and the directors are
trustees for the policy holders. The
affairs OF every life and fire insurance
company in Iowa should be conducted
as economically as Is consistent with a
good business administration, and this
bill simply provides check to extrav-
agance on the part Of the majority. 1t
is so erninently fair that 1t should re-
ceive the support of all persons inter-
ested In clearing up the Insurance
muddle.'' This embraces practically
every voter and policy holder in the
state.
An interesting hearing was given on
the jackson bill to rearrange the law
with reference to taxation OF mort
cages. Several persons appeared be-
fore the senate ways and means COM
nittee and spoke for or against the bill.
Among those for the bill were A. +.
Call. George G. Scott and Mr.. Hop
kins. all OF Sioux City. Marshall
Treynor, representing an insurance
company, spoke against the bill. Bob"
Haines, Of Grinnell, discussed the bill,
but devoted himself to an argument
to show that all moneys and credits
should be exempt from taxation. The
purpose Of the BILL as stated by Sem
ator Jackson, is to place the lenders
Of money in Iowa on par with those
lin other states, so they can lend their
money at home and SO that money
can be borrowed Of home companies
and the mortgages be kept at home.
The bill provides for taxation Of the
mortgages with the mortgaged prop
erty, either together or, at the option
Of the mortgagor, separately, but at
one taxation figure. Mr.. Treynor
thought the bill would be in effect an
exemption OF the mortgages from tax
alton. The committee did not decide
the fate Of the bill.
Five members Of the appropriations
committee made minority report in
the house yesterday in favor of letting
the Des Moines citizens who bought the
seven acres south Of the state fair
grounds and decided 1t over to the state
hold the sack. The directors of the fair
wanted to sell off thirty acres of the
back end OF the fair grounds and buy
the seven acres The Des Moines met,
believed that the thirty acres was too
valuable to part with and that the
state should hold IT. In order that the
fair might not lose the. seven acres
which. is so valuable to it and which it
must have in order to care for the
crowds they bought the land and paid
for it and decided II to the state and
are now trusting to the legislature to
reimburse them. They are j. II. Cow
ME, Jr., r. NJ. Hubbell and George
.McCntcheon The land cost nearly &c.
900. IA minority Of the appropriations
committee. consisting OF Miller of
Bremen, Price, Swift, Moore and Heles
reported against allowing the appro-
priation to reimburse them.
PAPERS FROM DIES MONIES.
New Pension Applications Can BE Sc.
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