New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-04
INSURANCE INVESTIGATION.
THE LEGISLATIVE COMMITTEE.

TESTIMONY OF JAMES NJ. FREEMAN, VICE PRESIDENT
or THR GLOBE MUTUAL AND HENRY D. HYDE,
PREsIDENrOFTHE NEUTRALITY-SUSPICIOUS., PERTr-
NENT AND 1MPER1EENT, FRANKLY ANSWERED..
ALBANY, N. Y, April 3.-The insurance
Investigation postponed this morning until $3.50 p.
m owing to the nonarrral Of Mr.. Hyde of the Equi-
table, who subpenaed to appear at o'clock. At the
hour named the committee resumed their investigation
Mr.. Cowdn presided and said that the committee had
devoted great deal Of time to the investigation and
had taken full testimony In regard to the subject The
members have received number of anonymous letters OF
denunclatoy character but very few Offering any vau-
able information suggestions TO legislative remedies
He believed the country greatly alarmed by the out
comDgs OF the investigation, but he anxious that pol
icy holders should wrongly informed that their
money bad been thrown away, as the committee mas
still the highest confidence In many OF the larger CON-
panies He desired therefore, to have the testimony here
after taken refer solely to the facts of life insurance
management
Mr. Skinner read letter to the effect that society
calling itself the Order of United Workmen was engaged
taking out insurance policies that were worthless by
reason OF the disturbance among polcyholders-
Mr. weiant desired say that he did not wish to be
understood that he the committee had done anything
in the furtherance Of this investigation which they
wished undone.
James NJ Freeman Vice President Of the Globe Mu-
tua was called TO the stand aud in relation 10 his pre-
vous testimony that neither he nor any officer OF the
company had any office in any other corporation sad 'n
he desired TO qualify that statement The answer WAS
wrong. He had meant insurance companies ohly' anu
not other corporations. The President OF the Globe NIL
tual President Of the Long Island City Shore karoau
and the witness is Treasurer. The capital STOCK
OF The railroad is $4,000, not all PAID.
There was about $4,000 paid IN winch
had been issued to contractors for building hc roau
there was no money 10 upon Ine about
OF the stock; 10000 had been otherWIse issuoui
~ III he cannanv owed the contractors
miles of railroad for which this IN STOCK Wa
cost of the road was something over Sloooou,
the Globe Mutual loaned the rillr1ad eon iiay.
the road was eStended bonds were Issued ana he
company then advanced them at one sne npe
81 900 more at another; these bonds covered he MVo
frouchise: the cost was about 100000; the GLOBE
Mutual Company did not loan any ony on stock % @oo
ness had borrowed from company on about SIooOo
of the bonds; Of these bonds came to nm al pr
and others at 80 per cent had @ fht being 70
per the par value; he had id Tor no pDnS ~
cash the remaining bonds were sod by the company al
O. Can YOU not tell US where your company got these
c r hsrG on we're o for which he
these bonds at 30 cents on the dollar witness row.
81 900 also he having done some contractors Work
for this he took bonds of the company al 30 ana
them to the Globe at sO tAe coHeJTs are &c, ,b fra,
Coz they responsible men the elder 1i tnr urn
being worth $4,000 or S7J,oUo tue last II ~
been made by the President and myself on Oh our
Witness resides on the line of the railroad at Ravens
siderable real estate there ana witness about 10 acres
None the bonds have been offered ioi SAFE tne a,e
taken by the Globe in 1874 TIC railroad company mas
paid any interest upon us loan lh'eies 's uuo
and by Worrel * Co. has been all pad. Inc receipts
OF the railroad from 10000 to S2looO' ana ,he
loaned money upon other railroad bends to Johh Van
Nest 900 $50, 900 of the New-York West shore
and Chicago Railroad. The road was never oullt ana
the bonds are no, worth more than ten cents on
the dollar. No interest has been paid upon Tue loan:
l,ff- nt
secured 10y his notes. He is wealthy ana ms estate Is
fully able to pay IT. The Globe has loaned no oner
money upon railroad stock. IL has yer iost anythhg
on temporary II has loaned $1,000 upon shares
of Home FIRE Insurance company to me; dLe , par
with insurance companies VIM Stnrgs Is director
in tHe Home Fire and Atlantic Marine Insurance
Compnny He is no relative Of mine. hy father mar
ried his daughter He Is nanagins agent OF me Gi9Pe
at "A salary OF $1,000 have brother WHO IL nor III tue
empoy of the Globe The cashier IL nv Druhcf-lnaW
He receives $500 and has no other business have
rolhcr IN London who in the pay OF the Globe on
cnnmissiu1 OF 80 per cent upon original premiums.
has received abont $40 on each policy ana mas sem over
about 800 policies He has done no business Tor inc
last SIX months. and has received nothing except as
stated. 8, ---.-. ,.--
vious statement to there beng only one director in
surcd there three also tn statement tha his law
Irrs charge cent and expenses for searches;
That was IA mistake; lie charges only one per cent ana
necessary disbursements.
TESTIMONY OF HENRY j. HYDE.
Henry r. HYDE President OF th,, Equitable, being
called testified that could not give the total amount
OF Tontine policies in his company. They are loaded
from 80 to 40 per cent; the balance is reserve upon
the policy This system commenced seven OF eight
wears ago The Tontine reserves are Kept win the re-
serves on other policies; but estimate what should
be set aside the Tontine policy and separate actual
amount was Kept.
He declined to go into detailed statement al this
fine saving IL would be too complicated The Ionline
orv ia AS the ordinary life rate resery1ng the same
that IA reserved under other policies, but the surplus Is
held and divided the poDcyhoders at the emu Oh
the Tonne period. which varies from ten 10 twehy years
II one Of the Tontne policies Is forfeited the reserve
goes those which are not forfeited II womb require
an actuary TO explain all the tcchncaes OF the lonne
theory statement is 10 be published III rev day as
to the amount reserves held upon Iontne p1cles'
and the witness very positively refused 10 guess AZ IT.
O. Exclusive of the loading upon the premiums on inc
Tontne policies has the reserve ever oe se o n
other purposet A. Please stat tnlng5 corIeeuy lou
gel the matter all wrong. VIII say tbt me reserves
used for any incorrect pGr'ss Te To"Se
fund bears the common expense OF per 9ent upon al,
the w rsGS Consist n Of the reserve and the load
ng We know which Is Tontine reserve ana when ne
onr accounts the two kept separate The Surplus
all the Toniine policies Is apous T1,xoU'oOo
scssed to pay anything; did not use
~ nav gTend. no dividends have been declared
when there were funds In the asset To pay them
first dividend was declared IN isoi nave no he LIS
how much was the amount OF insurance upon hem nor
t onnt Of reserve upon them have information
s To the amount OF reserve upon life policies when
have forfeited portion OF the Tontine fund has
ever been applied to any other purpose ,
In the reports the State Superintendent the witness
tbnugh Tie company stated the Tonne reserve separate
from the lie reserve but on copy OF the last report
being shown hun he could not find II IN that paper, ana
stated That lie does not rccoect In regard To u.
The amount was ascertaned Tor 1876 separate
from the life reserve, and also various other
lie hut cannot state more specifically
there were entries Of the amounts made in the
companys books; cannot approximate to the amountof
nolres forfeited i'll 1876, TO the amount OF slI-
ns. no paIt of the surplus upon the TOune policies
mas cyrr been used for the purpose of paying life lll-
a. haNy. D1gu