The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-01-11
appeal. Our laws should be changed
to bring about this desired result.
Life Insurance.

appeal. Our laws should be changed
to bring about this desired result.
Life Insurance.
Since the last session of the legis-
lature the subject Of insurance, and
life Insurance in particular, has occu-
rlsi a conspicuous place in the public
mind and will no doubt receive your
particular attention.
In February, 1906, a conference of
governors, attorneys general and in
| surance commissioners was held at
| Chicago to consider and further the
adoption of uniform insurance legisla-
ton. A committee appointed by that
conference has given careful consid-
GRAFTON to the subject since that date;
it's report will be before you and | be-
speak for it your most earnest consid-
Grafton.
The recommendations of the COM
mittee consist of seventeen proposed
bills, which may be summarized as
follows:
The adoption of standard policies,
or at least standard provisions in all
policies, so that for the future ambig-
uous and fraudulent policies will be
unknown and open competition be-
tween the companies introduced; the
abolition of the deferred dividend sys-
tenn, to which is traced many of the
evils to which | nave referred: a COM
pulsory accounting for present surplus
funds held by companies heretofore
operating upon the deferred dividend
plan; regulation of salaries aCd invest
ments: preservation of vouchers for
expenditures. Prohibition of discrim-
ination in provisions to secure COM
plete publicity through annual reports
are proposed as measures which, while
leaving the details OF the management
to the officers of each company, will
result in fair competition, ample Sc
curity and proper use of funds, while
%frequest accountings and full publicity
will force honest and economical man.
agement.
Problem Of Expense Limit.
How to limit expenses is perhaps
the most p%erpleXing problem connect
ed with this entire question; eminent
actuaries radically disagree; the Off
GERS of many of the smaller companies
scattered through the West and South
claim that if the provisions of the
New York law upon this subject were
to be generally adopted it would result
in their humiliation and a most power
full monopoly in the business of life
insurance be established. Under these
circumstances | believe the committee
acted wisely in combining itself to the
establishment of what may be termed
great landmarks for the guidance of
the companies and the public. If these
fail the state must go further in it's
control of management.
Another bill of prime Importance is
that regulating the election of direc-
tors in mutual companies, providing
for the introduction of a representa-
tive form of government and cumula-
tive voting. If large mutual COM
panies are to be managed solely in
the interests of policyholders they
must be afforded the means of ex-
pressing their desires; the blind trust
heretofore reposed in the manage
ment Of those companies has in some
instances been woefully abused.
The bill reported by the committee
prohibiting political contributions will
meet the approval of all. This prohi-
bition should extend to all corpora
tions and if our law at present is lot
sufficient to prevent such contribu-
lions it should be amended so as to
make it effective.
1t is not necessary for me to refer
further to the work of this committee
than to say that each of it's recon-
mendations meets with my hearty APP
prevail.
Alleged Lumber Trust.
Section 5168 of the Revised Laws
provides that no person or association
of persons shall enter into any pool,
trust agreement, combination or un-
derstanding whatsoever with a view of
restraining trade within this state. or
which would tend in any way to limit,
control, or maintain, or regulate the
price of any article of trade, m%anufac-
ture or use within the state and also
provides a serious penalty for a viola
ton of this section of the statute.
Although this statute has been in
force and effect for several years
there have been no prosecutions or
punishments for violation of the law,
though it is generally understood and
as a matter of fact positively known
that combinations in violation of this
statute have been effected and to such
an extent as to menace the public well
fare.
| call your attention to the fact that
the price of lumber of all kinds has
gradually risen to a point where the
building of homes and the use of lum-
Der are almost prohibited. This is
NOT due in any preat measure to tariff