New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-29
INSURANCE LEGISLATION.
CHARACTERISTIC DEMOCRATIC WORK.
,xr,Mor,, AMENDMENTS TO THE CODE Af'
PROVED BY GOVERNOR FLowER-ThEi"


,no-o ora provisions that have caused most o inc
life insurance men OF the State 10 lose all ia''h c
| IN tho honesty OF the Democratic MAJORITY VI Wv
| 7 crislatnre or in the business sense OF Tue "''
The Insurance Code. which has been work OF so'e
roors ros passcd BIZ the Assembly OF 1901. but u
reached the senate inst after the desi"io'"' 10
David g. III was responsible had bes'in an" IVY
I, d,ed During frat session the supporters Oh ,'c
wildcat irresponsible and fraudulent ehuo"" '"' ~
s,rnnce companies struggled haru 10 sco"'o
ments 10 the proposed code that wouIi Pc''' 49,
n, continue n business which VIGOROUSLY was
Lent II not criminal They were uhs"ccV'" " A..
efforts that year TO have their amendments put Ill wv
cotc The Insurance COMMITTEES Oh H'c
xoud have nothing to do with the supporters OIL con
| Germs TINT arc twin brothers to bun'os'eo''"s A..
When the code came up again TINS year III Wv
Assembly, there wns no Thought tha' 'eIo s,.
onv modification az it, There were inc s""'
of the committee who passed upon the previous e'
r,roucbou, the entire session the supporters vi '
wildcat concerns pounded away AT '"e .os,
cou,tt.e IN ret thcin amendments put into tne 'o''
wc,,,nc after meeting ard hearing upon hearing "eo
bod but majority OF the members OF t'' oon"' ~
rcfnscd IN uphold the endowment nssociauohs' i"o
| IN therefore was reported TO the Asseho'y ~ w.
condition that II was In when II lett the h"'uH " US
statutory Revision Commissioners. and as eupe'in-
s,a, -, insurance had recommended 1t. IL was
O. ,ho tho attack upon the code In the Interest Oh
tho wildcat concerns began INC ioop' WIS o''"o
into active use. No one knows now mnch INJURY '''
need ny the hackers Of these fraudulent concerns Dun
,hat money was uscd 10 get tho amendnchos i"'' "'
measure few who were there doubt
II seems 10 he the policy OF the loDpy 10 "Vi
,oct most ~ the Gods bill, until late date III Tue
..ss,or There were many changes that they wnnt"d
to make I'm tho interest Of their "chchs' ho' oh.'
I'm the Insurance Code, but In the various ot"er oo'
measures the work Of the statutory hcVIsion No"'
r,.xone,s With the other code bills. the IN
nnfi 10
Of the session and unit, the lobby had perfected all
., o., arrangements and had received votes enough To
mn, into Il the amendments that would prolong the
NE Of the endowment frauds. They chose Assem-
blyman Qulgey Of Brooklyn. rs their acnVc agent
en- tho noor Of the Assembly 10 propose and press Tue
,doption OF the amendments They selected Eoou
man Ouglcy previously had Sustained good repu-
to,ion for fnrncss ard honesty. and many members
believed In him implicitly. II was his second year IN
,he Assembly and II the legitimate Insurance men Of
IA. STATE had their way IL would he lis last Qn,gcy
ldcd his tine ani when the word WAS gwen on' thN
the Uouse had been fixed the bill brought up
on second reading and he sent Ia the desk Inc ameu
ment the adoption OF which lns extended fo al cast
another wear The life OF the concerns that have Tor
their pray the poor wOrlln1nan ana the hfcchahio'
IIis amendments verc adopted by close vote III
smile OF the opposition Of tho chairman OF the
Insurance Committee. who characterized the c"orN
which had been made 10 amend the bill IN terms WINCH
coud not be misunderstood All Of the reputable mem
hers Of the Assembly voted against oulgley's amend
menr hut they found that they were In the minority
The lin went 10 the Senate during rs closing hours
and hcrc received majority vote because IT was too
late TO amend 1t and SIN have IT pass before the
honr Of adjournment
Governo, Flower signed the bu In spite Of ths Oh
Iee<on, urged by hs advisers. James r. Pier'c' INC
state suIrrintcndcnt Of Insurance. eS senator John
J. Linson. cx-Collcctor Daniel Maeone, and Professor
t-,ti,a all Of who r.
crnts ard all e, ccpt Mr. crc members Of the >taiu
torv Revision Commls.i)n. superintendent If'rce dc
nounccd the amendments which we're prepared by tue
endowment fraud In the strongest terms, ana ne mas
denounced them since they were incorporated IN Inc
Inv behind him he had the dcnuncailon' Of HIS
predecessors In ONCE. each ono OF whom hai taken
occasion IN hs reports to call attention to an
evil wlnch yearly growing more extensive ana
more dangerous. In his annual report for his year
sup nntendcnt fierce says:
There has b-en enacted IN the reviNon An. vi
og21 under the requirements relating To IHt"!bA
Beneficiary societies. order, or Ns'pcialf.'' pro
vision which permit, these as~.ia 10 MAKE ne /"
payment OF money upon ne eAtru III ., , uN
pcrfd ard without reference 10 death or diabiuy.
wish 10 place nysNlf In mo whh my pr''T 1917
IN oiNc- to disappearing THIS class 81 Ou,hcss M,
undertaken Ly n-liuon- ~ the character ,.t iorth
In the title % he at,cle ano'ci ag,vc, M WI snc
general net providing FOR the incorporation anu 80.
iat,n o, c,opcgilv" or assessment HE and ca'nnty
iss3. the suIcnnt cnd',t Of this DemHmen, AZ that
umc In the text Of H., annual report T. the LesiS,
referring u the" -pci~lcS, places hinis'i
on rcord to the following Ict In the frat place all
organization tat promise - pay any definite amount
phy Acsl condition, arr frauds
oGicln.. who by rca.on ~ their cNpcnnce as
supervi-o v oNccrs Of the husne-, 81 in'nrincc IN
tn ir respective state. ~rrr c9n't ut,' me s,''.'a
legislation appointed by the National O'nN,hn,'l
fouoWlng resolution To- thai body: Resolved That
N" assessment, endowment ana bond aN~cria on. ar"
founded upon 4 dclusivc and dangerous assumption,
ll Of peril the people. and ccriaIn 10 bring carly
and lrravo.ablr dlaaStcr ha; legislation honid b.
sought 20 prevent their lufhcr Inc rInrat "a and To
bring those In cSil enc" TO a ,peedy close; ,.,,
! opposed to the bc~t ~ my ablly IN" nn'puph |
,n mi n, L"g,sIat"r has seen NJ nevertheless 70
ccnn"nancc the tran action Of TIL elias Of business
superintendent Picrcc /, Tho culy one who OPP
posed the adoption Of the amendment surern !
tondent Merrill. Of the Massachusetts Insurance De
partmon' went to Albany at his Own expense several
times during the session and argued earnestly before
the Insurance Committee against the endowment Ms
soc.atons. lie told VI the ad experiences that the
vorbingmcn Of Massachusetts had Lad with them ard
his arguments we're Of suncient fore 10 cause tho |
mcnerS Of the committee to vote against the amend
mcnt,. lie compared them With Ferdinand Warts |
notorious banking chemc. whf(7 paid dcposi,o" large
profit" cut Of dcposi's OF the experience OF Mns~i-
chusctfT In the nctunl working OF these soctllod !
orders" Mr.. Merrill aid
"Of the nNy-six cor oraions chartered In Massa-
chusetts, eighteen within the last six months every
which hns reached ts paying period has gone into
the hands OF assignee receive. In disastrous bank
ruptcy and ruia Nor nre hcae all what are termed
the short term cricrS the list ucudna of SiA
months term eight OF ono year, ono Of one and one
half years Of three years, three OF five years.
VI years aud two OF ten years. Forty thousand /
rl1cao holders in these coOccrns IN Massachusetts
alone. who had contributed from ESQ 10 $40 each,
found themselves minus their entire payments and
with no hope OF receiving from the bUkcn concerns
more than n pittancc. Five ~ the MANAGERS
today In the suffolk County lull ut ca,. twenty have
turned their back upon Nl,SachnscttS and directed
more have been indicted by the Grand Jury II suffolk
County for their fraudulent transactions"
John a. Mccall who tbs supcrin tnndcnt ~
Insurnce belorr Robert A. Maxwell was appointed.
not Only denounced thes" concerns ycars aeo
York Life INSURANCE Company, he declares that they
ought not 10 be allowed 10 exis.. To II Tribune ~.
porte ne sald Yesterday:
. am MOI opposed to these concern or occount