The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-04-13
Especial Correspor dence J

tSpcclul correspondence.
Now York, April l3. Some far
reaching effects Of the reform wave
in favor of strengthening the
State supervision of insurance con-
panies. started by the New York
Legislature a year ago when it en-
acted the measures drawn by Gov
crnoi' Hughes, who then was coun-
sci for the Armstrong Investigat-
ing Committee, have been shown
during the past winter in the legis-
latures of the various states.
Bills along the lines of those
presented by the Armstrong Com
mittec have been introduced this
year in at least two-thirds of the
legislatures. A great majority OF
the bills introduced were in confor-
nifty with the recommendations Of
the committee appointed year
ago by the Chicago conference of
insurance commissioners of the diff
fercnt states. seventeen b:als were
recommended by this comttee, and
in addition to these bills measure
has been introduced in the legisia-
ton cf many states, especially In
the South, which is attracting as
much attention as all the confer
encc bills together
This proposed law requires, that
seventy per cent of the reserve
maintained against policies written
in state shall be invested in the
securities of the state or its corpor-
ations. The avowed purpose of this
, measure, which first was proposed
by Insurance Commissioner Folk
CT Tennessee. Is to draw some Of
the funds OF the great insurance
companies out Of Wall street and
compel their Investment in states
from which revenues Of the ccm-
pnny are secured. BY this means it
is believed that one of the serious
evils of life insurance finance can
bc checked.
Although this measure was not
recommended BY the conference
committee, it is met with decided
favor and, in the same measure, it
isTeeting the general opposition of
the leading insurance companies,
especially the opposition cf the big
companies centered in New York.
The reason for this opposition from
the New York companies is obvious
for the passage of the measure
would greatly reduce the amount of
cash funds in the treasures of these
companies which FOR years have
been. and are still available for al
sorts of market manipulation. stock
juggling, and promotion underwrit-
ing schemes in which the heads of
these companies, may see fit to en-
gage.
These reasons which lie at the
bottom of the opposition shown by
tho insurance people. are the very
reasons which should and probably
will cause the placing Of the Folk
bill on the statute books of many
states before their legislative ses-
sions have terminated. 1t mnst not
be presumed, hcwever, that the in
snrance campanies are sitting by
quietly Wilde this is going on.
Grover Cleveland now president, of
tho Association Of Life Insurance
Presidents, has written brief ar
gning against compelling the insur-
ance companies to invest any mater
ial portion OF their reserve in State
securities aud II. l.. Cox. who was
member OF the Armstrong Com
mittee. but who is now secretary of
the organization Mr.. Cleveland
heads. is appearing in the Western
and Southern States to marshal the
friends OF the insurance companies
against the seventy per cent bill.
So Interested have the New Yorl,
ea'apanles become in the defeat of