The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-02-06
Holland Suggests Business Men
Remember Old Ruling
When Attempt Was Made 20
Limit Business.
is THERE NEW DANGER?
Improbable Oil Concerns
Might Be Sold to Public.
Prosecution Ex-
pected to Prevent Action.

New York. Feb 6=Shortly after
Colonel Roosevelt became governor of
New York state popular attention was
called to the fact that the yearly in
creases in the business of some of the
larger life insurance companies were
progressing at so great a rate that in
the course of a few years those COM
panies would be in possession of assets.
liabilities and responsibilities which
would constitute them a serious
menace. For that reason the Iegis
lature was asked to prohibit any life
insurance company of New York state
from accepting new business in any
one year in excess of hundred and
fifty million dollars. That precise sum
was not named in the bill as first
drawn, but it was presumed that the
legislature would limit the amount of
new business the life insurance COM
panies could take in a year to that
sum. AS there were only three or four
life insurance corporations chartered
by New York state whose yearly new
business apprOximated that figure. or
was in excess of it, the presumption
was that the legislation was aimed at
these companies. Governor Roosevelt
became greatly interested not only in
the measure itself, but in the principle
upon which it was based and then, as
has ever since been his habit while in
public office, he obtained all the in
formation possible that bore upon the
question. Among other facts to which
he gave much thought wa the law in
Germany respecting life insurance
business. He learned that the German
government was willing that life in
surance corporation should get all the
business it could because the govern
ment regulated and supervised the
business and had authoritative control
over the cost of policies.
Summoning the men who were adj
vocating the measures before the New
-Se-Io 80
Governor Roosevelt said: It have ex-
amined your proposed bill very care
fully: I am satisfied that the principle
is all wrong. I do not believee that
any company should be prohibited
from getting as much business as it
lawfully and fairly can. And I am
sure that there is no danger in bust
ness prosperity of that kind provided
the state exercises adequate legislation,
supervision and control over the COM
panies. So say to you that If this bill
passes the legislature and reaches me
shall veto it,"
vented the passage of legislation which
was aimed at the great insurance COM
panies and the yearly new business
gained by them constantly increased
A Later Experience.
After the investigation which was
conducted by q legislative committee
into the management of some of the
larger life insurance companies of New
York had been completed and the re-
port made to the legislature in the
first session of Governor Hughes adj
ministration, it was recommended by
Governor Hughes that the life insur-
ance companies should be prohibited
from making new business in excess
of hundred and fifty million dollars
year. The legislature accepted the
recommendation. A few of the COM
panies had been able to report new
business in excess of that amount and
one, at least had written new poll
cies the year previous for a little over
three hundred millions.
This legislation seriously impaired the
efficiency of some of the life insurance
companies It involved, for instance, the
cutting down of the working organiza-
ton. A much larger force was needed to
write the policies for three hundred mil
lions than for a hundred and fifty mil
lions In various ways this legislation
unfavorably affected some of the greater
life insurance companies. This was made
clear both to Governor Hughes and TO
the legislature. SO that in the latter part
of Governor Hughes second term the law
was repealed and new statute passed