The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-21
THE STATE CAPITAL.
An Important Measure to Regulate
Insurance Companies.
PROTECT POLICY-HOLDERS.
Mayor Ely Objects to Special Oppres-
sive Legislation for Gotham.
FIFTH AVENUE RESERVOIR
Efforts to Keep Street OffaI Out OF
New York Bay.
OUR FOREIGN TRADE.

OUR FOREIGN TRADE.
ALBANY, March 20, 1878.
The special ordcr OF the Gay in the Assembly was
the new Insurance bill recently reported from the
Insurance Committee by Mr.. Hepburn, after having
been agreed 10 by all the members of the committee
except MI. Reagan. Mr. Hepburn, who arose to de-
lend the Dill, explained that it was tho product Of
careful scrutiny and deliberaton He said that the
committee had the principal insurance bills
introduced the Legislature and into this one,
and had endeavored to devise a when
should preserve the good features OF them
all and indicate It's title Gan act to
provide for maintaining the solvency Of life
insurance companies, and protecting right of pol
lcy-holders In the OF the debate the first
section OF the bill, which provided for examinati lon
Mt least in five years OF every life insurance
pany organized under the OF this State Mr. Fish
moved 10 shorten tho periods between the examina-
tons TO three years. This motion was strenuousy
opposed by Mr. Hepburn, and also by Mr.. Prescott,
who urged that although the companies might DO
able to stand such frequent examinations the cost to
the pucy-holders, VINO are the chief parties
interested would be far too great The enormous fees
which recent developments show TO have been paid
for examinations under the direction OF the Super
intendcnt of Insurance are we'll known DO taken
out OF what are called return premiums, which would
otherwise be payable policy dividends
But Mr. Fish's argument that recent developments
Also prove that policy holders all the protection
which frequent and thorough examinations can AFFORD
Them prevailed, and his motion was adopted.
AN IMPORTANT AMENDMENT
Another important amendment suggested by Mr..
Fish was also adopted, adding section OF the AS
semby bill Of last to section 10 OF the bill before
the House. This amendment prohibits officers or
clerks OF insurance companies from receiving any
compensation profits from the companies except
their regular annual salaries. and forbids officers,
directors and trustees to hold positions in any
bank. trust company or other depository of moneys
In which the companies with which they are con.
ncctod shall Keep moneys securities deposit
TEXTS BILL.
Tho BILL which was read almost to It's close and
which is ofthe important the few general
acts which have been considered by the present
Legislature, is herewith copied in full
AN Act provide for maintaining the solvency Of life
companies and protecting the rights of policy
The people OF the state Of New York.
sEcroS I.-Tie Superintendent Of the Insurance De-
pstsnt TO be made. an examination q eyery
Of this sase a e oucs IN hrce ssars so.sr
sns os.sr in his di sse.ios y in ii: opinion The
sSpSn;sd y him 70 h.s SHAH
pany the affairs thereof; and In making
ae"s u"da. III. .assors have pssS%' TO
sass under s aS
or Ss
other person sas fail neglect appear Tor sxsmna-
JUSTICE the -
person moned and has failed neglected
s IS " al Ss aa
sd WITH al the aso Of the
issued Justice Of the Supreme duly served
and any person who shall answer falsely in such proceeding
superintendent shall have free and unrestricted access
books records and papers and Of
e
or the Of BY HIM
Of msdcmeanor and shall conviction thereof fined
900 Or imprisoned for not more than one year. both
sEc a..-w.hin thirty days ATTIC. the competion Of
the result Of the examination in newspaper In which
~ the s O.
an .sS % the GUY ss G 1
holders this State require IT, to make examination
Ted under than q this as
%ens !" such .xs%nsiion or oUssfuesns the ssSsrin
sondsnt or his deputy In the work or any s
pyed License 70 do business sa. Dreaded
sompsny State has BEEN :s duly Examined
standard Of The state Of New York. 9''''S y '"'
sursnee company deputy personas
s s s s s for
necessary travelling and other actual expenses and all
company and al charges &c. sg.n.. any company By
IN the form Of an bill shall frs. Be approved
BY the said superintendent, then yomp
company shall have become insOlvent on recsviHs csr
ss Sss Of a .sd ad sy s
Inc n%sunt the ed %s 10 him the to said saa
son psrsSas and mo company examined nor any
Of gin, gratnity otherwise. other nrther
hi. Or their EMPLOY Tor services services or
poses OF Of my e ss
shsrgss now authorized By law said superintendent. OK
other employee Of insurance company. vio
at9g the provisions OF this section shall be guilty OF
srs Whsnsv:s the said superintendent shall have
tered ~ other state country. aad doing NE is
It's sns SssS "1s nss
by the law Of this state hereinafter pro-
d It's agents cs"sd I" '" do business in this
sas that such license Is withdrawn until such sms as
that the assets Of such company sufficient and
oFs shall have e rsns Ss such
Does Csnsf Of uh issue or n
:Sssss ..I policy previously issued. .h. saIlsy
any company to discontinue business shall with
such notice or wshdrawa and the reasons Therefore
be published in the in which the stste notice,
a-wbensver shall appear the said superin-
THAT HS sw Of any ne
Its liabilities including
calculated the American experience table Of
mortality, with Interest ut tour ana half the
serve required by law, and that the business
the not SUCH In his jud gment
TO make policy holders that business
continued ne report the facts to the Attorney General
Whenever shall appear 70 the superin that tho
Of such company invested according TO law
less than per cent Of total Iiabil-
lties OF the company, estimated by the standard
liked by law, hs shall report the TACT TO the
Attorney General On RECEIVING such report 1t shall
the duty the Attorney General 10 apply forthwith
the Court requiring such company
why business should not BIZ closed. And IL
such ANY shall full show to said within
exceeding sixty days that the interests
policy holders and II the public obid such action the
said order enoiug snd restraining said
the further prosecution OF Its business and
shall appoint receiver all the
he said receiver hiing bond to the people
OF the State Ut New York, amount ami with
by said conditioned Tor the faithful
ormance 81 his duties shall take possession OF all the
sets creats OF said company except such special do