New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-27
WHAT DOES PIERCE WANT!
THE STATE SUPERINTENDENT OF INSUR-
ANCE IN NEW LIGHT.
PRESIDENT MCALL OF THE NETWORK LIFE
OPENS MS BOOKS TO THE PUBLIC
AND PIERCE oBJEcTs-sURPRIsE


Albany June 2G-Life insurance policy-hoders
living here and elsewhere have expressed great as
constituent the past week what they consider
an attempt by James +. Pierce, the Superntehd-
ent of the Insurance Department. TO block an IN
vestgation into the affairs Of the New-York Life
Insurance Company said investigation having been
invited by President John A. Mccall, OF that com
pany who has addressed his invitation TO the SUI
perntendents % insurance departments OF the
States OF Massachusetts,. Missouri, Illinois, Ohio'
kentucky. Texas and Kansas.
Why should Mr.. Pierce object to what. upon its
face least. is in the interest OF the great policy
holding public. who must naturally desire the full
est possible Information about the companies In
which they may have placed their money? The
only explanation of Mr.. Pierces conduct thus far
given is that he fears If the New-fork Life Is eN-
anined he may be called upon inspect other life
insurance companies-nOt that there Is any sus-
/ picion that any OF the other companies are In
financial trouble, but probably because the Super
intendent fears that he will have to work in the
summer time when other State officials have the
opportunity to enjoy A vacation. This seems to be
the only plausible explanation OF Mr. Pierce's con-
! duct.
BE this az II may however. the Superintendent
IS indeed in arrears far as the work OF eXaTnin-
Ing into the condition OF life insurance companies
/ Is concerned. for no thorough examination OF the
great Hfe Insurance companies. with one exception
/ has been made since John \. Mccall exposed the
rotten condition OF the Security Life, the Universal
! the Globe the Knickerbocker and the American
/ Popular thirteen or fourteen years ago so long
an interval having elapsed. Mr. Pierce may think he
has reason to shrink from beginning the great task
OF examining the lfe insurance companies yet IN
view OF the harmful effect OF the recent financial
panic when many OF the securities held by Ire IN
+ surancc companies deprecated in value, and when
their real estate properties must have suffered from
the prevailing depression, good many pohcy-ho'd-
ors keeny desire that he should begin such an
examination OF the companies at once
To tho mind Of the layman the correctness OF
/ Mr. McCalrs position In throwing open his COM
/ pany's business to the public would appear 10 be
sclf-cvident. AMI the remarkable position assumed
/ by the superintendent in antagonzing this Plan
| VIII probably furnish food for considerable dis
cusson before the summer Is over.
When Mr.. Mccall Invited the Insurance commits
sloners 81 the States above mentioned to look into
IN. affairs OF his company OF the 30th Ok June
1 ne inclosed TO Superintendent Pierce, AS a matter
Of courtesy copy OF this letter OF invitation being
/ evidently Impressed with the idea that Mr.. Pierce
would be quick 70 offer his assistance. encourage
ment and sympathy In the proposed reform. In
stead OF acqulcscing in Mr.. McCalrs plans. super
intendent Pierce Submitted the whole matter TO
] the Attorncy-C General asking for opinion:
Flrst-As to whether the commissioners OF other
States have any authority. under the laws OF this
State. 70 make such an examination.
Second-As to what force there would be in the
|
animation were made.
Third Would the findings be binding In any
way upon the Department OF the State OF New
York. and
Fourth-Is the New-york Department compelled
by law 70 have anything 20 do with the proposed
examination.
The Attorney-Ciencral. who appears 20 have been
cooked and primci FOR reply. promptly reported
J. That the Commissioners u other states are not
prohibited from making such examinations, II re-
quesi-d
. That their findings would have NJ binding force
In the state OF New-York.
3 That the Insurance Department Of the State Of
New-YoIk could not recognize them In any way.
ana that they would De Of little or no value az n
protection to policy-holders; and
4 That the Superintendent Of New-York Is not
required to have anything whatever 20 10 with such
an examination
This places superintendent Pierce In a very unique
position. and considerable surprise Will be expressed
when 1t s. made known that he has chosen this At
titude Of hostility 10 the proposed examination by
his fellow Commissioner ~ other states. Evil
IDENTIFY President Mccall himself was surprised. for
/ he has written n second letter - the Superin-
,enIent which has been printed by one or two In
surancc journals. expressing himself in way that
IS not likely 20 be misunderstood. Mr.. Mccall said
IN effect and In pointed language that every super
inicnlent Of Insurance Is authorized by the laws OF
his own State 20 investigate any company foreign
or domestic transactlng business therein and in
a-fnuch rs only about one-nlnth Of the policy
Of the New-York Life reside In New York State. an
investigation 10y Insurance Commissioners OF other
States would clearly be OF very great value 70 the
| policy holders OF hts company.
This statement OF Mr. Mccall" said prominent
Insurance man. expresses such sclf-evilent truth
that Is surprised 20 learn that there be any
dissenting opinion. and not only will the question
Zoe asked by Insurance men and by the holders OF
Insurance policies: why should the Insurance De
hut "a fha her
! great companies take the same position" Life In
/ surancc companies public, or. at least semi
! public Institutions. having IN their control great
trun, funds. AMI President McCalrs invitation for
this combined investigation Is clearly recognition
u the principle that those who charged with the
administration ~ these important affairs should be
made 10 show. from time TO time. Just how those
affairs are being administered. II is all right u
talk about the personal integrity Of the heads OF
these great companies but the personal integrity
business has received too many rude shocks 20 salts
fy Interested polcy-holiers throughout this broad
land What tho Insurance public wants is a plain
statement Of the methods employed by The manage
ment OF these great companies. NOR especially As
some OF them Insist on putting ont statements each
year which simply convey no Information at all 10
the average citizen.
. I'm New-York and Massachusetts," said The Trb-
unes informant. ARE located fifteen OF the twenty
SIX wcll-known American lie insurance companies.
The Massachusetts Department Is compelled. by the
laws OF that state to investigate each Massachu
sets company at least In three years, and II
is also clothed with authority 10 investigate "A com
panv organized under the laws OF any other State
whenever II ~. The New-York State De-
parm, NJ has the same authority, although no spec
fed period Is named within which any company
must be examined.
Now 1t II pretty well known that in New-York
State are three companies whose combined business
In 1899 more than one-half OF all the life In
surance written In this country during that year
, These companies the NewYork Life. Of which
Mr.. Mccall IL president; the Equitable. OF
which Mr. Henry b. Hyde is president and
= the Mutual Life. whose president is Mr.
! Richard \ McCur1y. The only of these
companies that has been examined within