The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-01-16
VIII Not Sacrifice Securities.

The insurance laws Of New Yorw, gen
orally known as the Armstrong laws. re-
quire domestic life insurance companies
to dispose OF their holdings OF stocks by
January l, 1912. For some DAYS rumor
has been current that ], Pierpont Nor
gan has arranged 10 purchase these
stocks from the companies within the
period named.
This rumor may be set down as with
out the slightest foundation in fact. In
the first place, the stocks In question
could not be sold at the present except
at less than their real value and the COM
panies will not be apt TO dispose Of them
on a falling market. Neither Is 1T like
ly that the market securities will I'M
prove sufficiently Within the next twelve
months for the companIes TO realize their
full value. If II were inevitable that they
year. that fact alone would have ten
dency TO depress values. for Intending
purchasers would take advantage Of the
situation and buy at the lowest possible
price.
At the same time the law is imperative
in It's demand for the disposal OF the
stocks In the time stated, and the life
companies will ask the legislature TO re-
who have studied the question say there
is no doubt that their request will he
granted. not only because OF the loss 10
policy holders. which a forced sale would
involve but because this provision OF the
law. being retroactive, is believed 10 he
unconstitutional. AS Is generally known,
lne STOCKS neld by inc IRE insurance COM
paDies were bought at time when such
investments were legal and ii is claimed
that no law would be constitutional which
would require trustees 10 dispose OF law
fully acquired securities at loss to
policy holders.
Almost all the New York companies
are Interested. as a matter OF necessity
While 81 great number of life companies
organized under the laws OF other states,
hold similar investments the law applies
onlv to New York companies
Will Not Interfere With z. of P.
Emphasizing the Importance of the pas
sage by the coming New York legislature
OF bill regulating fraternal Insurance.
denied an application for the cancellation
of the license of the supreme lodge.
knights of pythlas., to do business In
one 7, Barber. aged rs years. holder OF
a fourth class insurance certificate i'm the
order. Some time ago a similar petition
was filed with Attorney General o Nal
ley, who held that the question was one
for the state insurance department TO
decide. Barber complained because his
monthly assessments were increased, but
superintendent Hotchkiss held that it
was necessary for the protection of the
members and their dependents
In making his decision Superintendent
Hotchltlss states the circumstances OF the
case and contributes important dis
cussion of the whole issue, ''It Is an all
sufficient answer to the applicants con-
tention, he says. Ito say that in the
opinion OF this department II might have
deemed II unsafe and ineXpedient for this
fraternal beneficiary society 10 have
longer continued to do business In New
York had not such society taken the ac-
tion concerning which complaint is made.
The truth Is That. while many advocates
OF fraternal insurance have long shut
tncir eyes TO it, tho representative men
OF all these societies, as well as the heads
OF Insurance departments in the various
states, are now of one accord In the
belief that unless prompt and wise ac-
tion he taken by the states i'm ihe or
time mandatory laws. and by the societies
themselves IN the readjustment of their
rates as we'll as IN other directions. fra
ternal insurance~will within the next dec
ade or two end In rccelverships. with
heavy losses(to It's millions OF members
and th,i1N-<spsndentsS ~.
Com fnis$qnev None has bill SIMILAR to
the bne HcpsA VI NeN York wIIsh he
wiz intpbdt1e TO &c present state ftxis-
RI eserye IAws for casas,sz 5son1prnSe-
KCasuali, unde WRITERS IN Vlah aud clee'
u yhere dre interested in tho new unifosc'
ability reserve laws agINed upon M
n be national convention OF iIeurance
rKiissioners AT Mobile. Ala.,f fnst S,. loN
-Srbcr and which will be submtte9 Ne
% of tho law Is 10 provide strpD q,
% for new companies In process OF ~
o ton and for those now opera ing
70 estimated that for every 800 ~ mn
W receipts under the new rcserNR q Avs
~ company must put $50 into rev kSurar
'oo nserve and 500 into loss RESERVES WI
pant $40 for eypenses ANY INV col
carrv-lust have a very large sufplus
% years o., through the first five' or S
serve begin existence. or until me
IS. course OF busf2> be released In VIC u
,e. Insura,,
nd The Guardian casiSlsote Notes ,,r
m. company OF this city has Snii,S "a. a "
license to do business In tse siato ,or
Washington state
The wisdom OF the Utah Ies,s,,,n
ot 1909 regarding all fire CON- nj II
ke OF 1909 recurring all five compa nias a. ", u
Z. ing business IN the state 10 show asvr -
public VIoIinists.T for Instance b,ys,