The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-12-26

ness.
New York, December 21.-Francis
Hendricks, superintendent of insurance
OF New York state was the chief wit
ness before the legislative committee
of insurance investigation today and
testified that the examinations of in
surance companies by his department
are made to ascertain only the so.v-
ency Of the companies and that no in
V~estlgation is made into the extrava-
gance Of the management of a compa-
ny or into the salaries paid to Off
GERS, so long as the company is able
to pay its obligations. No -investiga-.
ton is made into the commissions
paid to agents, the system of loading
on the premiums, the advancing of
loans TO agents, or loans to directors.
q employment of %kinspeople of
reofficers in high positions is not in
CURED into. This has long been the
custom of the department, Mr.. Hem
bricks said, and he declared further
that he personally knew little or
S ooouL lit tdIIOuS tAdI1lll-
tons made. as they were entrusted tn
Isaac Va%nderpoel, the chief examiner
OF the department.
While Mr.. Hendricks m failed
him as to any legislation which he
had suggested as a remedy to any de-
fects in the laws governing insurance
companies, he stated that no mea-
sure that he had ever presented had
ever been opposed in either house of
1 the legislature. Neither had any bills
kRen passed against his recommended
klMr. Hendricks said that his depart
Tment spent last year about $137. 900
: and received in fees and payments
N$2S7,7 26, which was paid into the
state treasury. To make examina-
lions that would bring out such in
formation as has been gathered by the
Legislative committee the witness said,
would require ten more examiners. and
an additional appropriation OF from
$4,000 to $4,000 He thought, how
ever, 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 Equitable
and the Mutual Life. as they had new
er been called to his attention. He
had never heard of the wash-sales of
securities nor the year end loans of
the Equitable to clerks of Kuhn, Loeb
and Company, nor had these ever been
brought to his attention.
Mr.. Hughes asked:
DO you require the companies to
present a detailed statement of their
legal disbursements, showing the
nonOn IF 1nryxyn,r- r,hN L@1 I'D
what they had it for-has the depart
ment w required that?"
mo, I don't think So
Now, we find information of that
sort being furnished to Prussia and
not to the New York state department.
Here, for example, l nave the state
ment of the legal expenss of the New
York Life, for 1898, giving in detail
the amounts paid, aggregating $751;
725.SS, and the names of the recipients
as furnished to the Prussian govern
ment. Now, did the New York state
department ever have a statement like
that?''
No"
Now, what is your practice in re-
gard to reports that come in? Did
you look them over yourself, the an
nual reports?"
Not all of them, if there is any
thing that the statistician referred
to me -
Then they were referred to the sta
tiscian in the first instance@
yes"
"What were his duties with refer
enc to the report?"
He examined all the reports"
Did you look through the collateral
loans?"
81 don't think So"
Who had charge of that matter?"
Mr.. Vanderpoel."
Did any one in the department en-
deavor to ascertain whether there had
been any shifting of securities or tent
porary arrangement made which would
indicate that the department report
was not true?"
mo, we took the reports as they
were made TO me-"
Unless, then, you had an examina-
ton you would not detect whether
the securities report at the end of the
given year were changed in the begin
! ming of the next year?'
81 think not without examination"
when was it first that you learned
that Kuhn, Loeb and Company, for
example, were taking alleged coilat-
eral loans at the end of the year, elth-
er in their own name or in h e name
of their clerks, without any real loans
being in e~xistanoa or intended to he?'