The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-04-24
INSURANCE LAPSES
Franklin Murphy, the Re-
publican Boss, Speaks
For His Company.
WANTS POOR PEOPLE TO SUFFER LOSS
They Can Better Afford to Lose
Money, He Believes. Than
He and His Wealthy
Friends.
WANTS POOR PEOPLE TO SUFFER LOSS

Special to the Jersey City Neacs-
TRENTON, April "a, 1s94.-An interesting
hearing on House Bill No. 81, Assemblyman
Eisele's insurance measure, took place before
the Committee on Banks and Insurance prior
to the opening OF last nights session.
Franklin Murphy of Newark was present
in behalf of the United States Industrial In
surance Company Of that city, and Commits
sioner of Banks and Insurance Duryee was
on hand to listen to explanations. Assem-
blyman Edwards of Essex presided, and
Messrs. Cross, Baker and Eisele of the COM
mittee were in attendance. Mr.. Thompson
did not grace the meeting with his presence.
Mr.. Murphy, after remarking that he
knew the committee meant to be fair, pro
ceeded to tell why, in his opinion, MI.
Eisele's bill should not become law. It
would ruin his company, he said,
and bring disaster to another strug-
Cling concern tmeaning the Citizens Mutual
Of Atlantic City, which was represented by
a Mr.. johnson. Mr.. Murphy did not pre-
tend to be able to enter into a technical dis
cussion of lapses and general insurance
terms; he simply desired to submit OF read
from a statement of facts furnished by off
GERS of the United States Insurance Conn
pany.
This company, last veal, had received in
premiums $3.50, 900 in round figures, and in
the same period had expended for salaries,
commissions and the general requirements
of running the business, S290,000 1t had
been in existence six years, and one and a
half millions of dollars had been invested in
that time, and it was only now that the con-
Germ could see its way clear to realizing any
thing. So far as he was personally inter
ested, and so far as his partner in the warm
ish business was concered, Mr.. Murphy said
they could afford to lose on their insurance
investments, but to his way of thinking the
bill was an unjust one.
BIG COMPANIES WOULDN'T SUFFER.
Continuing in this strain, Mr.. Murphy en-
deavored to convince his hearers that COM
panies like the Prudential and Metropolitan
would not suffer, comparatively speaking,
but that concerns not fairly established on a
financial footing must necessarily go to the
wall. John F. Dryden and a Mr.. Knapp
the latter representing the Metropolitan
seemed to have the faculty OF making the
insurance business a success, he said, and
besides they started in at a time when every
thing was plain sailing.
At the outset or the United States career
the management was injudicious and extrav-
agant, but there had been a change, and
things were much different now.
What percentageof your policies lapse in
three vearsf' suddenly asked MI. Eisele.
Mr.. Murphy shook his head slowly and
then replied that he was not an expert on
insurance, as was Mr.. Eisele. But had he
known the kind of questions Mr.. Eisele
would nave asked he would have submitted
them to the officers of the United States
Company and obtained the desired informa-
ton. To this Mr.. Eisele said that he sup
posed he was entitled to use his knowledge
of the business if the occasion called for it.
He then declared that his bill was not ruin
49, =. -.l 111I %In% 20 II 1n
a law the same insurance companies
would be found doing business at the old
stands, and making money at that.
The policyholders would be merely liber-
ally treated, however, he e on to say,
and people who paid in money for three
years, n through misfortune or other
cause were obliged to stop payment on
back. The more literally a p~olicyholder
was treated the longer he would hold his
policy and the more profitable he would be
to the ompany Mr.. Eisele argued. He
cited the John Hancock Company,
a foreign corporation that he declared
into New Jersey and does
business where the Prudential and the
owing chiefly to liberal treatment OF policy
holders. Mr.. Eisele's reference to the John
was made to prove that il that
company could enter the field, do business
and make money in certain lines, the Pru-
DENTAL and other companies should be able
to do likewise.
The question was argued in this way for
some time, and occasionally Messrs. Edwards,
Gross and Baker would interject remarks or
CALCULATIONS of approval of some utterance
Of Mr.. Murphy's.
COMMISSIONER DURYEA'S OPINION.
Once when Mr.. Murphy said that Eisele's
bill would ruin the United States Company.
Do~1, orI Ir~.rr,,,oa CDn,roiccio11or n11Ysvoo
81 think it would"
Still this did not deter Mr.. Eise1e from
keeping up his fight. He expressed unwill-
ingness to nave inserted in his measure
amendments exempting existing policy con-
tiacts.
"You would have three years in which to
fortify your company against a drain.p said
Eisele, ssand the United States should be in
good shape in three years. Then you must
into consideration that every policy
holder is not going to cash in every three
years"
But Mr.. Murphy did not care about at
taching any amendment to the bill; he de-
sired to have the entire measure wiped out.
Competition in the insurance business would
produce better results than any legislation
could, he argued. To ruin the United States
Company meant to give the Providential
and Metropolitan the field to themselves.
Mr.. Eisele held that policies were issued on
the basis of established rates and the law of
average, therefore the policy holder could
not be the sufferer by a decrease in the num-
Der of companies in the business.
After this Mr.. Murphy and Mr.. Eisele be-
came involved in o discussion over the rela-
tive merits OF the insurance business and the
varnish-making industry, The point was on
the question as to which business paid
agents or statesmen the most on commits
sions. Mr.. Eisele didn't seem to think that
the Prudential would take its big building in
Newark out of the State and locate its home
Office In some place other than New Jersey.
if his bill should become a law. 1t had been
said that President Dryden, Of the Pruden-
tial, intimated that there would be a re-
moval.
The discussion was continued until the
hour for the Legislative session to begin had
almost arrived. The committee adjourned
without giving the slightest intimation Of
their intention in regard to the bill.
BILLS IN THE ASSEMBLY.
One to Abolish the Present Local
I* 5000 r