The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-04-12

preliminary report Of Superintendent
Hotchkiss outlining the facts develop
ed ut the fire insurance investigation
in New York and setting forth the diff
ficulties encountered in following up
the various leads which have been
uncovered. The superintendent says
that obstacles apparently insuperable
have developed in the course of the
inquiry. These, in his judgment, war;
rant further investigation, but he has
no power to pursue them and there
fore has lai 'dthe facts thus far de-
veloped before the governor for ac-
tion.
The governor says in part:
ut is the high privilege of the leg
islature, in the discharge of its obli-
cations to itself and to the people of
the state. to follow the salutary ac-
tion already taken in it's upper branch
by appropriate steps for the exposure
and just use of the law-making pow
er and by providing suitable protec-
tion against the recurrence of such
abuses. This is a promising oppor-
tunity to pursue the opening trials of
corruption, to reveal illicit methods
and agencies to uncover the perfidi-
GUS influences which have dishonored
the state and thus to aid in securing
the wholesome exercise of it's bene-
ficient authority.
"It is the unquestioned prerogative
of the legislature to inquire into the
course of legislation. the integrity Of
legislative procedure and the means
by which its action has been procur-
ed or frustrated. The legislature is
entitled to know how. wherein and
by whom it has been deceived and it's
powers perverted.
important as will be the whole
some and corrective influence of pub
lfcity with respect to these matters,
the purpose and result of inquiry ex-
tend beyond the bounds of mere dis
closure. No subject deserves more
thorough consideration to the end
that the opportunities of those who
are willing to buy legislative favor
or to use representative powers for
personal profit should be limited to
the utmost degree. 1t may be impos-
sible wholly to eradicate these evils
but to the extent that the nature Of
the illicit intercourse is understood
and the methods and instrumental
ties which have been successful are
exposed, there may be intelligent ef-
fort at remedial action through the
statutes and legislative rules.
II therefore recommend an imme-
diate. impartial, thorough and unspar-
ing investigation into legislative prac-
tices and procedure and into the use
of corrupt or improper means for the
promotion or defeat of legislation,
such inquiry not to be limited to, but
suitably to embrace, the matters ad-
duced In the recent proceeding by the
sesiate and these presented by the
report herewith submitted Of the su-
perintendent OF insurance in order
that. so far as evidence may be OBJ
tainable. the actual facts may be
known, that there may be full un-
derstanding of the methods and agen-
cies employed in connection with leg
islative proposals and that we'll con-
sidered recommendations for appro-
priae remedies may be made"
Superintendent Hotchkiss in his re-
port says that the result of the inves-
tigation thus far warrants the sate-
ment that legislative expenditures in
New York by insurance companies
were particularly conspicuous in the
years 1901, 1908. 1904. 1905 and 1903
and notably significant in two or three
of those years.
"The moneys SO paid were disburs-
ed for travelling expenses of indi-
viduals and delegations, annual and
special retainers of regular counsel
$50 called retainers of legislative law
yers. contributions to political COM
mittees. gifts or payments to men of
political prominence and influence and
entertaining legislators and others at
times in somewhat lavish manner
The aggregate of disbursements OF
this character, as the record now
stands - such disbursements being
largely from the treasures of the fire
insurance companies, probably ex-
ceeds $l5O,OOO."