Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-09-07
Iowa Insurance Man Tells Com
panies of the Nation Methods
Must Be Revolutionized
PLEADS FOR CONSERVATISM
Sidney a. Foster Of De' Moines' Dis
cusses Possible Financial Panics
and Convertible Assets ~ Too Much
subservieney to Wall Street in In
,uranee Circles.

4 companies Of the United States were
called upon today to revolutlon1ze
their methods of valuing their assets
as measure against trouble in times
4 81 financial panic The call was made
q at the closing session Of the American
Life convention here by Sidney A.
Poster Of Des Moines. Iowa, secretary
of the Royal Union Mutual Life IN
5.surance Company. Delegaes repre-
venting fifty life companies heard MI
Fosters plea for conservatism, Whlch
Il caused a sensation.
Discussing Possible Financial IAN I Fan an
Mes and Convertible Assets" Mr.. Eos
ter declared that at the time the insur-
X ance companies now fix values they DO
that work under the handicap OF .
market manipulated for the advantage
d sc large financial interests In Wall
street. Despite this. he asserted, the
gn1anagement Of life insurance COM
spanies all over the country IS .enolns
every year to greater protee'tleo 'ea ZOE !
policy holders rights. 81
alg;s Ia ..On Decem Der 81, when our reports
are now made Mr.. Foster said AN !
Including the insurance ompanles'
are anxious to make the biggest snow
\ ing possible, and this with too littie
regard for the real values possible, anu
regard for the real values or securl--
ties. At that time the market ct can oe'
and probably is. manipulated to serve
the purpose Of the larger financial IN
tarests. If we are, to take advantage
nfsmarket values In listing our secur1-
ties the valuation should be based on
an average IN period long enough 20
5 take into consideration the downs OF
4 tine market, as we'll as its ups
Stunning that convertible assets
means railroad and other securities
having a negotiable value, I hold. that ia
the way to prevent the evil OF q pos
ssible impairment Of values is for the
companies to carry and report the Ell
securities. in all financial statements
at a figure near their cost; price, ratneri
than at their market. value, witnouI
regard to current apprec iation. sThls
fiictitious values will never trouble tie
management of the companies.
San agreement between the cor
s,ay,ies can be made, or ruling by f.ur
l4tSta insurance departments can pc
gwen. which will avoid IN laf Sc INA s..
ma the evils of financial pardcs and
those OF generalization and fuctuation
~ values. These securities are usual
~ carefully acquired and are worth
what Is paid for them, therefore z
valuation on a conservative interest
rate will represent, their real value,
which should not be increased during
q year when there happens to be
gsboom' IN prices" III
life insurance corporations MT
Foster said '.have been the. target for
all clashes Of reforners. Among them en-
are men who talk glibly Of how and
what to do who have IL, their lives
made little progress in their personal
AFFAIRS. The idea is to follow q clam
For, q king agitator, the lnouthpiece OF |
aaarm, and the result the passage OF |
Legislation Of which some states are
going to be thoroughly ashamed.
Is ssImprovement in life insurance Sc
curities started before any legislative
Mctum or Investigation commission
opened up the sore side Of any insur-
lnce family imbroglio and discovered
The abuses of reckless admin tration. [
rhe public is beginning to understand
Il was not the fault Of deferred divi-
lends, but the lack Of conscience in
administration over the II accumulated
sund Within five years Wisconsin,
Texas and North Dakota will apologize
Tor recent, legislation, and hand in
lnand, join in placing the blame upon /
New York.