Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-12-23

L NEW IOTk, D0C. Gl.-EXdUQlueT VAIL
derpoel of the state insurance depart
ment testifying before the legislative
investigating committee today, said he
was aware that the report Of the Mu-
tual Life Insurance company to the
insurance department for 1904 was not
entirely correct. The report showed
no profits from the sale of ledger as
sets. He knew this to be untrue, he
said.
Hendricks Admits Laxlty.
Superintendent Francis Hendricks
of the New York state insurance de-
partment by his testimony yesterday
revealed the remarkable laxity which
prevails in the states inspection OF
insurance companies.
So long as company is able to pay
| it's Obligations Superintendent Hen
bricks admitted, he makes no effort to
| learn whether there is extravaganza in
the management, as to what salaries
the officers are paid, or anything else
regarding the conduct of it's affairs.
| No inquiry is made as to whether kins-
people of the officers are employed in
high positions.
Mr.. Hendricks not only testified that
the examinations of the companies are
of the most superficial character, but
showed little knowledge of the various
examinations that have been made,
/ and referred the investigators to his
subordinate, Isaac Vanderpoel, chief
examiner of the department.
Hendricks Proves Forgetful.
While Mr.. Hendricks memory fall
ed him as to any legislation which he
had suggested as a remedy to any de-
fects in the laws governing insurance
1 companies, he stated that no measure
that he had ever presented had ever
been opposed in either house Of the
Legislature. Neither had any bills
i tion.
Mr. Hendricks said that his depart
ment spent last year about 1000
and received in fees and payments
$287,726. which was paid into the state
treasury. To make examinations that
would bring out such information as
has been gathered up by the legisla
tive committee the witness said,would
require ten more examiners and an ad
/ ditional appropriation of from $5O,OOC
to 100000. He thought however, he
could get the appropriation if he asked
for it.
Mr.. Hendricks knew nothing of the
large legal expenses of the New York
Life Insurance company, the Equit
able and the Mutual Life, as they hat
never been called to his attention. He
i had never heard Of the wash sales OF
securities. nor the year end loans Of
i the Equitable to clerks of Kuhn, Loci
o. ~ nor had those ever been brought
to his attention.
Requires No Detailed Statement.
! Mr.. Hughes asked:
do you require the companies tt
present a detailed statement of thei1
& legal disbursements, showing the
names of lawyers who had money ant
what they had it for-has the depart
) ment ever required that?"
mo, don't think so"
Now, we find information of tina
sort being furnished to Prussia, ant
not to the New York state department
Here, for example, have the state
ment Of the legal expenses of the New
York Life for 1898, giving >in detail
the amounts paid, aggregating $197
725.S8, and the names Of the recipient
as furnished to the Prussian govern
ment Now, did the New York stat
4 department ever have a statemen
like that?"
mo"
From the New York Life or an.
other company"
II think not"
The remainder of his testimony wa
7 very similar to the above
| j. +.