Canada. Royal Commission on Life Insurance : The Royal Commission on Life Insurance was established under Order in Council P.C. 320, 28 February 1906, under An Act Respecting Inquiries Concerning Public Matters (R.S.C., c. 114, 1886) and on the recommendation of the Minister of Finance. The Commission was mandated to inquire into: (a) the general subject of life insurance and life insurance systems in Canada; (b) the operations of the various companies chartered by the Parliament of Canada, or by any province and licensed under the Insurance Act, transacting life insurance in Canada, including expenses of management and investment of funds; (c) the operations of companies, other than those chartered by the dominion or a province, transacting life insurance in Canada; and (d) the laws of the Parliament of Canada relating to and governing the business of life insurance, in both Canadian companies and companies other than Canadian, and to consider and report upon any necessary amendments. The Commissioners were Duncan Byron MacTavish, Chairman, John Woodburn Langmuir and Ambrose Leonard Kent. The Secretary was Henry Taylor Ross.
In 1899, the Laurier administration amended the Insurance Act (62-63 Vict., c. 13, 1899) to allow insurance funds to be invested in stocks and bonds. In 1906, a letter written by Davies of the Supreme Court of Canada and former Member of Parliament, was made public. In it Davies expressed regret about supporting the 1899 amendment, and apparently was in favour of an inquiry into the insurance industry. At that time, charges of irregularities in the operation of Canadian insurance companies abounded. As the populace of Canada and the United States invested about 00 million a year in insurance companies and fraternal orders, there was growing concern about how this money was being handled. One of the main causes of this heightened concern was the 1906 investigation of insurance companies in New York State. This investigation resulted in the resignation of some executives in the insurance industry because improper management and misuse of policy holders' money. The report of the "Armstrong Committee" in New York State, and the subsequent changes in laws pertaining to New York's insurance industry, increased public awareness in Canada of the possibility that irregular business procedures existed in the insurance industry here. Perhaps the major factor leading to the appointment of the royal commission, however, was the publicity the insurance issue was given in the Toronto World. From 14-28 February 1906 the press campaign against insurance companies in Canada was front-page news. Practically every day, for 14 days, the World attacked Canadian insurance companies, especially the Canada Life Assurance Company. The World charged that policy holders who had placed their trust in insurance brokers and had deposited their investments with them. This money was being filtered to major shareholders who were making excess profits. The World alleged that some very prominent and respected "gentlemen", including two Liberal Senators (General A. Cox, President of Canada Life, and William Gibson, a Director of Canada Life), were involved in questionable business practises. The articles in the World increased public awareness about the issue and suspicion mounted over the possibility that other well known individuals might be involved in irregularities in the insurance industry (See Toronto World, 14-28 February 1906 and Canadian Annual Review, 1906, pp. 215-216). Hearings of the Commission were held in Ottawa, Toronto, London, Waterloo, Hamilton, Winnipeg and Montreal from 7 March to 24 November 1906. There were 741 exhibits filed with the commission. RG33/4 General Inventory
