The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-17
LIFE INSURANCE.


Badwns behalf before y was granted THIS the
Governor promised him and the interview ended.
LIFE INSURANCE.
HEARING BEFORE THE SENATE COMMITTEE CON-
cERNIEG TIE GRAHAM-wHAT BENEFIT POL
ICY HOLDERS MIGHT EXPECT.
ALBANY. May 10, 1877.
The senatc Committee on Insurance had bearing
to-day upon the Graham Insurance bill, which has
recently passed the Assembly. Mr.. Stephen English
said to section ~ clause that the pol
icy holder would not get cent Of a under
it at the most needy time Of his lie. He opposed
giving paldup policy to any ono for surrender
policy, as 1t was unjust TO policy holders well
companies. At the end OF ten years there would be no
duo the surrender policy at all Mr.. Chari.
7. Lewis said that Mr. Englshs in regard to
tho matter The policy holder who takes
out contract binds himself to pay certain premiums
and the companies bind themselves 70 pay him Ger.
tam amount At his death. But tho company cannot
give a reward to any who breaks bis contract ut
the very time when It is valuable to them that he
should keep II. There have been companies who
would rob man who had paid his premiums through
a lifetime and Is compelled by circumstances to
tho pay ment OF premiums at u tme oil old age The
section under discussion remedies that.
SHEPPARD uoMANs' STATEMENT
Mr. Sheppard Romans satd he had u letter from Jus.
tpe Bradley stating That the Court purpossly abstancd
from laying down any practical rule He thought the
was by estimating the true value OF tho premiums
already pad. The lifetime OF policy is on the aver
age only years II the State interfcres at all it
should be to see that tho individual has
all the insurance he has paid tor. The ngl-
interests has done injury, Tie insurance
business has $500, 600 900 accumulated this State,
and the best hvca have been goiug out at terrible
rate since this agitation, 10 the amount Of $4,000 more
than the ISSUE aud the worst lives have remained
The clause in regard 10 the Impairment Of capital has
Inn
or OF OF the members OF the Legislature. It's
will close up several OF tile most promising
young companies in the state and would shut up all
the younger companies ana avor monopolies Capital
is meant Tor and not for ornament and Ii simply
20 ceysd na poron Of bs
must be ad aside as the property OF
the individual and the remainder Tor the expenses
and profit OF tho business Tho law should give every
policy holder all the insurance purchased BY HIM,
minus a margin duo To the company TOR Mo carrying
ot its business The practice indicated by tho clause
IS less liberal than that OF any company New York
city One Of the greatest evils OF lilo insurance is The
fact that SO many policies lapse. Tie causes Tor
this are u loss OF confidence. cessation OF tho
surance interest, and the inability to pay premiums
through various reasons. He had known Instances
where men were their dcalhbcds where thor lie
policies had beer surrendered by their wives IN order
to got money Tor the comforts which should surround
Their last days Insurance IN TINS country had been
OF hobed growth. Agents had almost COM
PEELED men 10 insure 10 get ria o. Them,
their policios than those who deliberately aud
thoushllully make the contract II would DO
twenty per cent commission on the original poiicy
aud two and a hall renewals Every company
must cvade such law or lose its business He
thought he himself must evade IT or close up his COM
pany.
Mr. Wagstai-It would throw tho business right
into the hands OF foreign coinpauiesY
Mr.. Homaus-Yes, SIR. it would; but evasion would
be easy. he conln give an agent a salary and the
commission, and most OF tho companies would do
section B. clause s. lie said, would require force Of
clerks IN each insurance company equa 10 the present
@ itruc
included many reports as 10 the number OF doaths,
number of uoliries forfeited and surrenderc and
other mat icrs that have be sent 10 every State
the Union, that would be among tho most excessive
dutiee OF company. The section providing thut no
extra compensation should DC paid to any officer or
indcicnste because there could never be
quorum obtained unless payment was made 10 d..
rcctors tor attendance
4 NoxErARY MoTivK.
Mr.. Bliss said no knew that 10 be a fact Tor cx-
Governor r. d. Morgan always hurried away to the
meeting oil one OF his companics because there was
hvc-dolar gold piece awaiting him, and he could not
DO Kept five minutes behind time by any business.
because tho secretary always conliscatcd the 50
II any were live minutes late. In regard
to the provision relative 10 appraisers Mr.
Homans SAID 1t SIMPLY multiplied officers, and The
payment OF $40 wouid not many instances cover
his expenses Mr. Bliss held that policy holders could
not be elected directors unless they stockholders.
He thought the cause relative tnat suiect
Constitutional would be vetoed that account,
because there reserved right In tho State
interfere in tina; manner
Mr. traham said the interests OF the policy holders
identical with those OF tho stockholdcrs and
tile company, and sncn provision was not only con-
stitutiJnai but correct.
MIR. Bliss sad the committee mad yielded to popu.
lar ciamor in regard TO the matter.
Mr. WeianJ denied that the committee had been in
fuencca any such way, and Mr.. BLISS dropped that
limo OF argument.
Mr. Honiuns SAID that the provision so far as itro-
errcd 10 capital STOCK companies should be stricken
out, MS policy holders are now entitled to vote III
mutual companies. in regard 10 the clause allowing
any policy holder TO commence sur, provided no
holds policies amounting to 100000 for the winding up
OF any compiny.
Mi. Bliss said that man might take out policies TO
mat amount for the very purpose Of wrcckng COM
pany and make money by tho process. For instance,
he have trend appointed receiver ana son ap
pointed counsel, who, between them, could MAKO
500 geo IN fees.
The details OF this proceeding not fully entered
into, although ar. Wciant asken To know by what
process any money can DO made by wrcckiug com.
pany.
AT this timc Mr. wagstaif declared tho committee
under until ten O'Clock tonight The lnsur.
Committee failed To meet Tonight, owing to the
absence ol Mcssrs. Wagstal and Prince. There wcro
a number OF Insurance present, bu: no action was
taken, and the meeting was adjourned until to-
morrow morning, at nine O'Clock