The New York herald., 1879-02-01
Superintendent Smyth Refers ,Legisla-
tors to Printed Reports.
GOTHAM'S GOVERNMENT
A Searching Investigation Of the De-
partments Threatened
COOPER AND KELLY NOT AGREED.

ALBANY, JAN 81, 1879.
Mr.. Simonson called up his resolution in the
Assembly to-day asking for an investigation Of the
Mutual Life Insurance Company as to the act Of that
corporation in issuing new policies with rebate of
thirty per cent on premiums The preamble to these
resolutions, it will be recollected. dealt rather
severely with the conduct of the company in this
respect. stigmatizing its acts illegal and unprece-
dented Consideration of the matter brought the
''Bald Eagle from Rockland" General Hustled, to
his feet in a vigorous defence of the company. He
denounced the form and wording of the
resolutions, and argued to the entire
propriety of the Mutual Life people allowing
such rebate as specified. Some OF the
ablest lawyers in the State had given opinions sup
porting the company in this respect. The question
was simply as to the conduct of the business of the
company. H-to illustrate-the Chemical Bank OF
New York has been borrowing money at three and
one-haf per cent will it work any injury to the de-
positor, to whom is paying three and onehah per
cent, to say to the public. deposit with us and we
shall give you five per cent? AS to the rebate Ques
ton it to be said that in 1876 1876 1877 the bus
Of life insurance throughout the country was in
such that the expenses Of the companies in
excess of their incomes True, the Mutual Life had
reserve enough to meet all demands made upon it,
but unwilling to shut its doors and meet its OBJ
legations from that reserve. The oldest. and con-
fessedy the ablest and strongest company of its
kind in the world. the Mutual Life determined that
1t would not meet the emergency by resorting to the
devices which other companies were practicing
1t would not pay salaries or expenses of agents,
neither would it increase its commission to
agents. Instead it adopted policy whereby
whatever reduction was made the premium
Injured to the policy holder. 1t resolved that for two
years it would replenish its force by rebate of
rfv on all aken WA no
unusual or novel proceeding. He the speaker. had
two policies OF his e The first he took out in 1860
insuring through agent Fifteen years later he
took out second policy. but. having grown in wis
aom since 1s6O he took it directly from the company
and this saved him the commission which he would
have had to pay an agent. Any man could do the
same and thus secure a rebate. Mr.. Hustled then
referred to the record made by the Mutual
Life as the best answer to o portion
Of the preamble. In ten years it's assets had in
creased from $1O.OO0.OoO to sss.oOO. .OOO-fgurcs
which demonstrate the consummate skill with which
The affairs must have been managed The speaker
then alluded to the in the preamble which
states that the company has deantly refused to re-
gard the wishes Of the policy holders and grossly
mismanaging its trust There was foundation
for such statement. The trustees of the COM
pany such men as Lucius Robinson,
Governor of this State Alexander Rice, Ex-Governor
of Massachusetts; William +. Dodge and George
H. Andrews. There never had been o time during
the last twenty years when the expenses Of the
company not moro than met by the receipts.
The resolution with which the unfair preamble con-
cudes calls upon the Judiciary Committee to inquire
into the legality of the policy. The proposition
was absurd. Was this Legislature Court of Appeals
in the opinion Of tho gentleman who introduced the
resolution? Any policy holder go before judge
and get an order for the Mutual Life to show
why it should not be restrained from doing business
ON this new plan. Why. then. invoke Legislative
aid? As to that part of the resolution which
asks the Legislature to remove the officers of the
company, IL they shall be found to have exceeded
their rights, he would simply it was Of all things
the most preposterous. This Legislature had no
power to remove as insignificant official con-
stable and certainly had power to do
quested. In conclusion. Mr. Hustled said that he
policy holder in the company and had been
from 1860 and spoke in the interest Of the policy
holders. He hoped the resolution would not pass
ATTACKING INSURANCE MANAGEMENT.
Mr.. Sloan in reply said that the resolution in
1t evident that policy holders and leading nsur
ance men differ widely as to the wisdom OF the new
policy adopted by the Mutual Life He felt that it
was proper for the Legislature to make examina-
tion for the purpose of finding out whether the
company had as 1t was claimed In some Quarters,
to the resolution. 1t made allegations to
the truth of which he knew nothing. Aud
therefore he could not vote for the resolu-
tion taken in connection with the preamble.
To the end that the inquiry might be made he would
cusion Mr. sloan said that he could not but feel that
the Mutual Life would be glad to have tho
tion made. to the end that II the policy adopted
not in conflict with the charter and the out
come Of wisdom and prudence. those facts ought to
appear Mr. Sloan then offered the following substi-
tute:-
Whereas the officers of the Mutual Life Insurance Com
pany ,eeensy adopted pas for Obtaining business
per cent upon the annual premiums for years thereby
ob,sning his =. rate largely below the
This rebate thirty cent is alleged and in
thar G and
is & policy 50 %
examine the legality the action Of officers Of the
Ss 9 s s % s the matter,
tsinns il such action Is il violation charter Of the
Of he affairs Of the The Judiciary COMMITTEES
sr and IN the
Mr.. sMYrH AND THE APPRAISERS.
The Superintendent of Insurance, in answer to n
resolution OF the House as to whether. since his
accession to Office any members OF the Legislature
have had any bills or claims before his department
Tor services ~ counsel. &C.. replied
have tho honor report that the rmaton called for
oy sad resolnon Is $ eon'aned IN document No. @t A.
snswer to said luton, and add 'Ss; since thai
~ was to the assembly on ,hs 10Th
titles q appr.isns property as acsasres Of any
nen and none before the department since my
session to the vce of other than what
tc mentioned In said communication have the honor to
eeman your obcdient servant,
JOHN .. sMyTH Superintendent
GLoBE INSURANCE. coxrANY's AFFAIRs
Another resolution. introduced by Mr. Terry
passed IN the Assembly calling upon Mr.. Smyth to
furnish the particulars as to recent examinations by
his department OF tho Globe Insurance Company of
New York city. The resolution reads -
Resolved That tho Insurance be directed
90 furnish To this House within days all that
have been made to him any by appraiser counsel
or oy deputy supcrintcndent other subordinate Of the
lnruranco Department concerning ordered
y, him otherwise of the affairs tho Globe Mutual Life
Insurance Company Of New York. aud also the date or
Gates when said reports or examinations made
Adopted.
InE kEiLr-coorEn APPROPRIATION CONTROVERSY.
Mr. Brooks has come to the front with a series of
preamble and resolutions relative to the laws gov
ernng appropriations and the satisfaction of jdp-
mcnts In New York city, They follows:--
Whcroas s represented by portion OF the public prcss
o the city OF New tork that ihcreces vi
tns psr Of vmcss VI ssd si 20 10 the application snd