The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-04-13
From Tuesdays Daily.
GROVER CLEVELAND ON
SOME HIGH SALARIES.


New York, April Former Pres
ident Grover Cleveland. counsel for
the American association of life In
surance presidents, has JUST submit
ted TO that association brief in re-
lation to the matter of salaries paid
by life insurance companies The oc-
easion for its presentation, it is said,
is the fact that certain western states
have now pending before their res
pectiye legislatures bills that would
limit the salaries of life insurance
officers to $4,000 year, while in
others the limit is fixed at $4,000
year.
The brief. it is announced, will be
filed tomorrow with the Wisconsin
legislature by Robert Lynn Cox, VINO
will appear as attorney for the asso-
citation of life Insurance presidents
in opposition to the bin proposed for
the investigation of reserve funds In
the state, largely increased taxation
of premiums. receipts and other SUP
jects.
After calling attention to the fact
that insurance companies are private
corporations, Mr. Cleveland says:
Whether these companies are
classed as stock corporations or mu-
tual corporations. in either case, bus
mess interests are confined to con-
tract relationship based upon the eX-
ecution of life and other incidents at
taching exclusively to the individual
policy holders in each corporation. 1t
has been judicially decided beyond
the report OF controversy, that in le-
gal conception these companies are
within the definition of persons and
| so far as their rights are concerned,
they are on the same footing as cit
liens of the United States and of the
several states. The 14th amendment
to the federal constitution provides
that No state shall make or 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, lib
erty or property without due process
of law.
1T Is clearly the intent and inev-
table effect of the contemplated leg
islation to abridge these privileges
and immunities' of corporate citizens
of the United States by imposing on
them limitations concerning the COM
lpensation to be paid to their officers
and employees In the face of the law
of their creation and domicile which
makes them free from such limita-
ton.
| He considers salaries paid to the
presidents and first vice presidents OF
20 leading companies, and adds
From this examination 1t appears
that the total premium receipts OF
the 20 companies amounted to $440,-
665,90S; that the percentage of the
receipts paid to presidents and vice
presidents by all of the companies is
20 of l per cent; that their percent
age of their premium receipts so eX-
lpended by the "a companies paying
salaries less than $4,000. was IS of
l per cent; but that the percentage
of the premium receipts SO expended
by the five companies paying to their
presidents and vice presidents $50
600 per annum or upward amounted
to only l9 of l per cent. In view of
the universally conceded solvency
and soundness of all companies pay
ing these larger salaries no one could
have the hardihood to claim that the
small percentage of their premium
receipts thus expended could by any
possibility impair the absolute secu-
rity of their policy holders CON
tracts, which phase of the subject
might properly be considered a le-
Ultimate subject of STAKE po1icltude,
and these considerations of solvency
and absolute security gain circula-
tive force from the fact that the adj
mitted assets of these five companies
amount to more than one billion and
five hundred million dollars