Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1906-1908, 1907-04-12
HITS INSURANCE ACTS.
Mr.. Cleveland Says Many Laws Pending
in Western States Are Uncon-
stitutional.

NEW YORK, April S.-FOrmer Presi-
dent Grover Cleveland, counsel for the
Association of Life Insurance Presidents,
has just submitted to that ASSOCIATION
brief in relation to the matter of salaries
paid by life insurance companies. The
occasion for its presentation, 1t is stated,
is the fact that certain western states
have now pending before their respective
Legislatures bills that would limit the
salaries of life insurance officers to S0O,-
600 a year, while in others the limit is
fixed at $4,000 a year.
The brief was filed today with the Wis
consn Legislature by Robert Lynn Cox,
who will appear as attorney Tor the aSso-
ciatlOL. of life insurance presidents, IN
opposition to the bill providing for COM
pulsOry investment Of reserve funds III
the state, largely increased taxation OF
premium receipts, and other subjects.
After calling attention to the fact that
insurance companies are private corpOr-
ations, Mr.. Cleveland says:
Whether these companies are classed as
stock corporations or mutual corporations,
III either case their business interests are
confined to contract relationships based
upon the expectation of life and other IN
cidents attaching exclusively to the indiyid-
ual policy holders in each corporation, 1t
has been judicially determined, beyond the
reach of controversy, that in legal contemp-
lation these companies are within the denni-
ton of persons, and, so far as their rights
are concerned, they are on the same footing
as citizens of the United States and of the
several states.
Relies on the Constitution.
The fourteenth amendment of the federal
constitution provides that mo state shall
make enforce any law which shall
abridge the privileges or immunities of
citizens of the United States nor shall any
state deprive any persons of life, liberty, or
mr. IyrfN fhnrr duo n In"
He then takes up for consideration
salaries paid to president and first vice
presidents in twenty-nine leading com
panies, including the five large companies
that pay $4,000 or more, and adds:
From this examination it appears that the
total premium receipts of the twenty nine
companies amounts to $40, 660,9OS; that the
dents and vice presidents by all the com
panies was 29-100 of one per cent; that the
percentage of their premium receipts so eX-
pended by the twenty-fOur companies pay
ing salaries less than 900 was 511OO of
one per cent: but that the percentage OF
premium receipts so expended by the five
vice presidents $4,000 per annum or up.
wards amounted to only 1900 of one per
cent.
Only Wants "Fair Play"
After arguing that the doctrine of
comfy fOrbidS one state from seeking
to interfere with the internal affairs of
citizens of other states except where alb
solutely necessary for the protection of
its own citizens, he concludes:
These corporate citizens of the United
States, having entered states other than
their own. exhibit in their defense the
tifcate of fitness and approved equipment
granted them by their home states. They
ask such consideration of these certificates
will save them from anomalous and i'll
furious limitations upon their business OPP
erations, and such treatment their home
Endorsements and faith in the American
standard of fair play have led them to eX-
pect.