TO THE SENATE

MARCH 14, 1900

From the Journal of the Senate, p. 646

To the Senate:

I have the honor to inform the Senate that I, on the 12th inst., approved, signed, and caused to be deposited with the secretary of state, Senate file No. 218, an act for the consolidation of the miscellaneous portion of the state library with the historical department, and defining the duties and fixing the salaries of the librarian, assistant, and the curator, and making an appropriation for the support of the state library.

LESLIE M. SHAW.

TO THE HOUSE OF REPRESENTATIVES

MARCH 14, 1900

From the Journal of the House of Representatives, p. 798

To the House of Representatives:

Gentlemen-I have but very recently received the resolution passed by your honorable body on February 28th, in which attention is called to a report current in various portions of the state that the governor, secretary of state, auditor of state, and treasurer of state hold important offices in building and loan associations and insurance companies doing business in the state of Iowa, which the attorney-general is alleged to have declared "oppressive upon persons whose only crime is their inability to pay;" and wherein the governor, secretary of state, auditor

of state, and treasurer of state are requested to report to the House of Representatives, as soon as possible, in what building and loan associations and insurance companies they hold official positions, if any, the name of the company or association, together with the salary they receive; and wherein the committee on Compensation of Public Officers is directed to report a bill prohibiting members of the executive council from holding any official position in any building and loan association or insurance company doing business in the state of Iowa during their term of office or within one year after their term of office shall have expired.

In response to the foregoing I have the honor to report that I hold no official position in any building and loan, or savings and loan association, nor am I a stockholder in any such organization, nor have I any connection with or interest in any institution over which the governor of the state of Iowa, or the executive council, has any oversight or supervision whatsoever.

Conceding to the general assembly the right to inquire into the private business affairs of such persons as may have been elected to the several offices of this state even in matters over which such officers have no supervision or jurisdiction, and having no objection to such inquiry, I have the honor to state that I am a stockholder and director in the National Life and Trust company, a legal reserve insurance company doing business in the state of Iowa, which stock I purchased at par, and paid therefor exactly as reported in the articles of incorporation long since made public. I have received, since the organization of said company, $35 for services rendered as such director and as a member of

the committee on loans. It is unnecessary to call the attention of this honorable body to the fact that neither the governor nor the executive council has any supervision whatsoever of insurance companies; and the criticism that such institutions "are oppressive upon persons whose only crime is their inability to pay" might be predicated with equal force against banks, landlords, lawyers and persons engaged in many other branches of legitimate business.

The state of Iowa enjoys a most enviable reputation throughout the nation; her financial institutions have the confidence of the people at home and have heretofore stood well abroad. No legal reserve company organized within this state, so far as I am able to learn, has ever failed, or violated its contracts or insurance. The Iowa companies now have in force over $200,000,000 insurance, about twothirds of which has been written outside of this commonwealth. They have thus demonstrated their ability to sustain themselves in the home field against all comers, and to make quite a respectable showing on their merits in other states. I do not understand that anyone has presumed to criticise any Iowa insurance company from a legal standpoint, and the wholesale semi-official criticism, from a personal point of view, ought not so much as raise a presumption that they are pursuing methods which are impracticable, reckless or unsound, or that the insurance written by these home institutions is essentially different from policies sold by older eastern companies which are permitted to do business within this state. Persons can doubtless be found who are willing to animadvert upon the banks of Iowa and the banking laws of this state; but such criticisms generally

rest upon personal grounds or are caused by a lack of experience in the actual operations of such institutions. The proceeds of life insurance, as well as all forms of endowment and investment policies, are in this state exempt from execution, and from the payment of claims against the estates of deceased, and it has never heretofore been considered a breach of official ethics to be associated with financial institutions wherein the people of this state have thus been encouraged to invest their savings.

For many years it has been quite generally claimed at home, and conceded abroad, that the insurance laws of Iowa are among the best and most conservative of any in the United States, and yet I voice the sentiment of all good people when I express the hope that if they are found defective in any essential feature, you will promptly correct and strengthen the same. I have no word to say in behalf of the newer companies. It is relatively immaterial what becomes of them, but the older Iowa companies that have struggled for so many years, and with such honor to themselves and to the state, ought not to be expelled either by indefinite criticisms, or by hasty adverse legislation incited thereby. It is easier to tear down than to build up. It is easier to drive out than to invite back. Therefore, if your honorable body shall deem it wise to amend this branch of our laws, I respectfully recommend that you consult disinterested experts, for insurance, like banking, and many other lines of business, is sufficiently complicated to render it somewhat doubtful whether inexperienced persons, whatever their professional training or good intentions, are competent to give opinions of any considerable value as actuaries.

Personally, I have no objection to the proposed legislation prohibiting state officers from being identified with insurance companies or building and loan associations within one year from the expiration of their term of office; but I see no reason for such restriction that does not apply with equal force to all persons holding official positions in the state, and likewise prohibiting the embarkation in banking, renting land, practicing law or medicine, or any other business or profession which, under certain circumstances, may become "oppressive upon persons whose only crime is their inability to pay."

Very respectfully submitted,

LESLIE M. SHAW,

Governor of Iowa.

TO THE HOUSE OF REPRESENTATIVES

MARCH 17, 1900

From the Journal of the House of Representatives, p. 837

To the House of Representatives:

I have the honor to inform your honorable body that I have approved, signed and caused to be deposited with the secretary of state, the following bills originating in the House of Representatives:

March 14th. House file No. 8, an act to amend section ten hundred and ninety-six (1096) of the code, in relation to time of closing polls at election.

House file No. 33, an act to legalize the resolutions and proceedings of the council and mayor of the incorporated town of St. Anthony, Marshall county, Iowa.