Evening journal., 1911-03-08
MIX-UP OVER AN
INSURANCE BILL
Senate Finally Killed the Bill
Prohibiting Giving Of Op-
tiOnS With Policies
SESSION LASTED NEARLY
THE ENTIRE AFTERNOON


companies i'm Delaware giving op-
tions on stock IN the companies to
policy holders at the time policies are
sold. The bill If passed would have
caused the Continental Company OF
Wilmington to cease giving stock op-
tions with insurance, and the bill was
advocated by committee represent
ing the Underwriters Association Of
which most Of the other big life in
surance companies are members. The
Legislators who have been lombard
ed with insurance talk all through
the session, were glad today when
II was over.
United States Senator Harry A.
Richardson sat beside President Pro
Tenn Monaghan during the afternoon
session.
As soon as the bill was called for
action Senator Finn offered a sub
stituto TO the effect that companies
now issuing options on stock with
policies may continue so doing until
their entire authorized capital stock
shall be issued. after which they
shall issue no further options on
stock. and also prohibiting new COM
panies from Issuing such options on
stock. This substitute was referred
to the Senate in committee of th3
whole, in which arguments for and
against the bill were permitted.
James b. Owens. Of the committee
representing the Underwriters As
sOclation, said enactment Of To, orig
inal bill partly would accomplish
what was intended by the original,
aud he also contended such a law
would prevent deception and misrcp-
resentation
The original bill would have caus-
ed the Continental Insurance Com
pany of Wilmington to discontinue
issuing stock options with insurance.
Philip Burnet of that company. look
the floor and opposed the substitute
bill He said the issuing of stock
options was either right or wrong,
and such a law as the substitute bill
on the books would give competing
insurance agents a chance to say
something to the effect that the Leg
islature realized the practice was
wrong but desired to protect a Della
ware company.
J. b. Sweeney, another ropresen-
tative Of the Underwriters Associa-
ton, also took the floor In opposl-
ton TO the issuance Of options with
insurance policies. He said thirty
six states have passed bills similar
10 the original bill introduced i'm the
Senate
Mr.. Burnet again opposed the sub
stitute and said he inclined to the
belief that it would be class legis-
lation.
Offered An Amendment.
Senator President Pro TEN. Monag-
han az this sage offered am amendment
70 the original bill to the effect. that "A
company could offer stock options al
price not exceeding the book value.
that the proceeds should be paid 10
the company without deduction and
that it should be unlawful 10 sell such
stock on commission.
Mr.. Burnct favored the amendment
and explained its features.
Mr.. Sweeney said IL would be easy
to get around the insurance feature.
He said he understood contract had
once existed In the Continental Com
pany whereby a commission of twen-
ty-iive per cent. was offered for the
sale Of stock
Mr.. Burnet denied this. and Mr.
Sweeney said DR. Peter w. Tomlinson
/ had so informed him coming to Doyor
on the train in the morning.
DR.. Tomlinson was present when
Mr.. Sweeney made this statement, and
the doctor said he did not recall nam
ing any figure.
The Senate decided that the hearing
was developing too much toward per.
sonalities, so a vote was ordered. Tn,
substitute bill was defeated. The com.
mittee Of the whole then was dis
solved. and after the Senate resumed
its session it developed that the com.
mittee of the whole had not been N.
structed how 10 report. Senator Film
oontended that the report should D.,
unfavorable and Senator Marshal
made such report to the Senate.
The substitute then was put on fna
action and II was lost. Senators
Pierce. Ellison, Dutton, Finn and Mil
Ter voted for the substitute.
Senate In a Mix-up.
Then a contention arose as z,
whether the amendment offered b,
Senator Monaghan was TO the origina
bill or to the substituto Senator
DreNler made point that the origina
bill was improperly drawn. inasmucl
as it contained two section "opes
Senator Miller also contended that th,
amendment contained a defect. Presi
dent Monaghan ruled that both wer,
improperly drawn. but Senator Film
appealed from his decision so far AZ
the original bill was concerned. TIL,
legislative attorneys were summoned
10 give a legal opinion ON the matter
Attorney Janyier decided that Will,
the original bill as drawn was some
what irregular It was legal 70 wal
decided that the amendment was
drawn improperly. Senator Ewing
then maved that the bill be recon-
mitted, hut his motion was lost
President Monaghan called for ,
vote on the original bill, and it wal
defeated by vote OF IL to 3. Senators
Ellison, Ewing and Miller supporting
It.
Senator Finn moved that the vot'
by which the bill was defeated be re
considered. his idea being to get
reconsideration voted down, whlcl
would prevent the. bill being called NJ
again. Senator Ewing, however
moved that Mr.. Films motion be lai,
on the table. and this prevailed. I
the bill is not called up within thro,
days 1t cannot be considered again
TO HONOR DELAWARE TROOPS.
Il -.