The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-10-04
FOR BLACKMAIL.
Three-fourths of the Bills on
Insurance Legislation
Are introduced With That End
in View Says Mccall.
HEAD OF N. Y. LIFE
Again Appears Before the Legis-
IatiVe Committee.
He Will Pay No Attention to
Action of Nevada.


president of the New York Life Insur-
ance company, testifying before the
Legislative investigating committee to-
/ day in a statement on the general leg
1 islatiye experience of his company,
said that three-quarters of the bills on
insurance legislation introduced in the
various states were backmailing bills.
Mr.. Mccall said before the insurance
! inquiry began today that the company
had received a telegram from Samuel
Davis. the superintendent of insurance
1 of Nevada, saying that he proposed TO
! consult the attorney general OF STATE
with a view to a possible revocation OF
the New York Life companys license
to do business in Nevada. He would
/ act" said Mr.. Mccall, unless certain
/ gentlemen did certain things that
I would require a considerable amount
of resignation on their part. don't
think they viii do it and Mr.. Davis will
find things are not altogether his way
John G. Mccall, secretary OF the
company, stated there were only $4,000
people in the entire state and that
/ LOO of them We're policyholders. The
| company had never thought it worth
while to have a branch office in Ne
vada, but all the business was trans
acted from California and Utah.
Mccall on the Stand.
For the first time since the investiga-
ton began, James McKeen, associated
~
| committee, conducted the examination.
| Mr.. McKeen, who has been studying
/ the technical end of the life insurance
/ business, opened by outlining to Mr..
| Mccall the power and scope of the
| committee and said its report to the
| legislature will in no way be limited by
| the testimony taken at the sessions.
MI. Mccall in answer to questions
/ by Mr.. McKeen, then described in de-
/ tail the system used in making reports
to state insurance departments and
also explained the mortality tables fol-
/ lowed by the New York Life Insurance
| company.
Mr.. Mccall was questioned as to
surrender values under the Massa-
chusetts laws and also as to nonfor-
feiture laws. He said the hrst non
forfeiture law was known as the law
of 1851 and was the result of a general
demand that a pOlicyhOlder should be
remunerated for premiums paid If the
policy was surrendered before its ex-
piration.
Mr.. Mccall said a company surplus
is earned by a less mortality than that
assumed to be probable and also by Sc
curing a rate of interest on money and
| investments better than that counted
upon in the actuaries' tables. Asked
as to the difference between government
supervision in England and state super
vision in New York, Mr.. Mccall said
there was practically no government
supervision in England The only thing
of this nature, he said, was the fling
of a statement by the insurance COM
panies with the board.
Goes Into History.
MI. Mccall then went into a history
of life insurance in this state. telling of
the great number Of companies started
from 1875 to 1880 and of the failure of
the most of them through extravaganza
and competition.
MI. Mccall said that the increasing
compensation to agents was tempta-
tion for agents to rebate, but Mr.. Nc
i Call said under the New York license
| system the agents contracted not to do
so and forfeited benefits of that system
if they violated their agreements. He
then went into a detailed statement of
/ general legislation, saying:
with the beginning of every year, I
dare say, it is the feeling of every ex-
| eeutive Officer-I know it is of myself
that for the ensuing five or six months
| of the year we shall be badgered and
harassed to death in every state in the
union by introduction of bad bills of
/ every kind. Sometimes men of honor
feel they have a right to amend a law
and their motives are all right, but
mainly the general insurance legislation
! of this country emanates from people
who are desirous of striking at insur-
ance companies. believe that three out
of four of the insurance bills introduced
in the United States are Matchmaking
bills The management of these COM
panies really tremble in the beginning
of the year as to what they have to en-
counter during the first six months of
the year.
1T is a condition which I think your
committee can do much to prevent if it
will but pass law similar to the Massa-
chusetts law-which has been very ef-
fective I think-that every bill intro
duced shall be lodged or reported in the
office of the secretary of state"
During the testimony in answer to a
question by Mr. McKeen President Me-
Call denied that the New York Life In
surance company Disseminated against
/ American soldiers in the Spanish war.
1t was alleged recently that the New
York Lie Insurance company at the
outbreak OF the war made more liberal
terms with Spanish policy holders who
might serve as soldiers than it did with
Americans in similar circumstances.
Mr. Mccall said that the New York
law of 1899 did not wholly prevent re-
batting but it had done much good and
that the New York Life Insurance
company had done as much as possible
to make the law effective. He had dis
charged many agents for rebating.
Every Fund Has a Glass.
After explaining the tontine and de-
ferred dividend plans of insurance, Mr..
every fund of the New York Life
Insurance company has a class There
is no fund which may be expended for
, the motives of its officers. There is
no reserve or surplus that does not
come under the provisions Of the laws
&C New York"
Mr.. Mccall was asked if he agreed
with Elias Wright, sponsor for the
Massachusetts forfeiture law of 1851,
, that a life insurance company's reserve
, should be the absolute property Of the
policyhoiders. The witness replied that
he did not: he thought Mr.. Wrlghts
view an extreme one. His own view,
q Mr. Mccall said, was that a charge
| or1surf the reserve on a surrendered