Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-13
Does that sound honest?
EVIL OF SYSTEM.

company cannot afford to pay, do you
wonder that you are outstr.pped In the
race for business. One of the insur-
ance journals reports that a single
agent for one of these companies In
Salt Lake City wrote S24l 900 in the
month OF September 1907 How many
of you would he glad to write that
amount In year? BY these methods
the entire business of life insurance is
injured, the confidence of the general
public Is destroyed and countless Wild
ows and orphans, who would other wise
have been benefited through it's bene-
ficient influence, will suffer untold pri-
walton and misery. II places the hon
est insurance agent, representing an
honest company and presenting to the
public reasonable plan of insurance
with reasonable premium and q rea-
sonable promise of results at a great
disadvantage. 1t Is high time to call a
halt.
I'm section 13, Revised Statutes. we
find sufficient law to answer the pur-
pose, and If any company objects, let
IL appeal to the courts for redress
These schemes are not only hurtful to
the insuring public, and to the agent.
but they are also injurious 20 the COM
pany which writes them.
LICENSE RENEWAL REFUSED.
''The following letter has been sent to
all companies engaged in this kind of
business:
:" The insurance department of this
state has reached point In investigat-
ing the matter of advisory board con-
tracts, special income contracts and
stock agency schemes. so that it will
require from all insurance companies
who make application for our license
for the yeaE 1908 certificate signed by
the president and secretary of the
company to the effect that the COM
pany pledges itself to refrain from
writing any advisory board contracts.
special income contracts. or to engage
in any stock schemes of any character,
or offer any other special inducement
In the sale of life Insurance in this
state, and no company which does not
furnish such a certificate win have
it's license renewed for the year 1908.
After such license has been granted,
II it shall be discovered that the com
pany has engaged in that kind of bust
ness. such fact, when established, will
be sufficient ground for the cancellins
of the company's license to do business
within the state
ASSISTANCE IS ASKED.
I'VE are unaIterably opposed to the
admission of any new company that Is
even suspected of any such devices
against our people: in short, the in
surance department assures the Life
Underwriters association that we are
of you all the information you can
furnish to assist In compelling the re-
suit so devoutly to be wished.
MATTER OF VALUATIONS.
"a subject which has been under
careful consideration by the insurance
departments of all the states has been
the subject of valuations. 1t Is well
understood that there has been great
schrinkage in the market price of all
stocks and bonds of the character
which are held for Investment by in
surance companies, during the last IL
months. and II the market quotations
at the close of business Dec. 81 1907,
should be taken as the basis OF valua-
ton for these securities many compa-
MES would close the year with i'm
paired capital. Notwithstanding the
fact that these securities have shrunk-
ducing the same dividends that they
were a year aro and all agree that
they are worth far more than -
ed prices. How to reach a basis of
valuation which would be fair and just
to all companies has been the problem.
On the 18th and 18th of December
conference of insurance commissioners
was held at Louisville, KY, where the
matter was discussed fully and az a
result of the deliberations of that con-
ference the following resolutions We're
adopted
RESOLUTIONS OF AGREEMENT.
'"Its is the sense of this meeting OF
insurance commissioners that state
departments. in determining the vclu-
alton of securities included In the fin
ancial statements of insurance cor
porations may ascertain the real mar
ket value by taking the mean of mar
ket prices on the first day of each
month and the 31st day of December In
the year 1907. and computing therefrom
the average value for the year by d.
viding the aggregate of said amounts
by 10: provided, that In any particular
case, where exceptional facts warrant
departure from this rule It shall not
apply.
+" Resolved, That committee of
seven commissioners in addition to the
chairman. be appointed at once as O.
committee on valuation OF securities
for 1907, and that said committee shall
be empowered to employ expert APP
praisers to make up list OF such Sc
curities held by insurance companies
as they may deem necessary, with
statement OF the market value OF each.
and report the same TO such commits
sioners as may request it, as early as
practicable after Jan. 1. 1905
ut seems To me TO be only fair to
take "A stock which Ia paying the same
dividend IN 1907 as 1t paid In 1906 and
accept as It's value for the purpose OF
making an annual statement, the aver
age price Of the stock during the sew
eral months Of the year. and this de-
partment has issued a circular letter
which has been sent To all insurance
companies, notifying them OF the ac-
ton OF the conference, quoting the res
olutlons and expressing its opinion
that this would be a fair and just So
luton Of the valuation problem, at
the same time making known It's will
llngncas TO accept such valuations MS
arc placed upon the securities by Its
home department"
In conclusion, Colonel Squres said.
81 am happy 10 say that all the insur-
ance composites organized In this state
are IN such financial condition ms to
be able IN show splendid surplus,
taking their securities at the selling
price al the end OF December.
'"lf time permitted | shoudd have
been glad TO 30 into the question OF
fraternal insurance which under our
law r. left entirely without super
vision, but IN the time limit of an after
dinner speech, II Is impossible 10 dis
cuss every problem which Is vexlng
the department. ! invoke the aid nf
every member of this association IN
the warfare, which II just beginning