The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-04-09
39TH YEAR
ON
HIGH SALARIES
Prepares Brief Against Legislation
to Clip Pay of Life InSur.
anCe Presidents.

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 a brief in re-
lation To the matter of salaries paid
by life insurance companies. The oc-
casion for it's presentation. 1t Is said.
Is the fact that certain western states
have now pending before their res
pective legislatures bills that would
limit rhe salaries of life Insurance.
officers to $4,000 year. while In
others the limit is fixed at $25.00q
year
The hrief. ii is announced, Will be
filed tomorrow with the Wisconsin,
legislature by Robert Lynn Cox. VINO
will appear rs attorney for the ASST
citation of life insurance presidents
In opposition to the bill proposed for
the investigation of reserve funds In
the state. largely increased taxation
of premiums, receipts and other SUB
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
Iness 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 iudlclally 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
izens of the United States and of the
several states. The 18th 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 lnev-
liable effect of the contemp plated leg
islation TO abridge these privileges
and immunities' of corporate citizens
of the United States by imposing on
them limitations concerning the COM
pensaiion to be paid to their officers
and employees in the face of the law
of their creation and domicie, which
makes them free from such llmita-
ton.
He considers salaries paid to the
presidents and first vice presidents OF
/ 30 leading companies, and adds:
From this examination it appears
that the total premium receipts of
/ the 80 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 per cent; that Their percent
age of their premium receipts so ex-
pended by the 24 companies paying
salaries less than $4,000. was 5 of
/ | per cent; but that the percentage
of the premium receipts so expended
/ by the five companies paying to their
presidents and vice presidents $780,
600 per annum or upward amounted
to only 10 of 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 lc-
gitimate subject of stare poIIcituda
and these considerations of solvency
and absolute security gain circula
tive force from the fact that the ad
mitted assets of these five companie.
amount to more than one billion aht
five hundred million dollars