The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-22

al EW YORK, Dec. 21.-Francis Hen
IL bricks superintendent Of fnsur-
ance of New York state was
the chief witness before the legislative
committee on insurance investigation
today and testified that the examinu-
lions of insurance COMPANIES by his
department are made to ascertain only
The solvency of the companies and that
mo- investigation is made into the eX-
W7Nagance OF the management of a
company OF into the salaries paid 10
"ih- 80 so long a. the company is able
, 20 pay its obligations. Ne iuycstiea-
ton rs made into the commissions paid
10 agents The system oi luauine ON
thS premiums, the advancing of loans
10 agents or loans Co directors The
employment of kinspeuple eff officers
| I'm high positions is not Inquired into.
4 Knows Little About It.
/ This. has long been the custom of
iSho department N. Hendricks said.
ans ne declared further that ne per
sonally kuew litue or uothiu- about
thc various examinations made. as
. they were entrusted 90 Isaac g. Van
detpOoi, the chief examiner of the de
paTtment.
While Mr.. Hendricks memory failed
him as 90 any legislation which he
had suggested as a remedy 10 any
defects I'm the laws governing insur-
ance companies. ne stated that 40
measure that he had ever presented
had ever been opposed i'm either house
Of the legislature Neither had any
bills been passed against his recon-
Uendauon.
Receipts and Expenditures.
Mr. Hendricks said his department
spent last year about SI3l. 900. and re-
ceived in fees ana payments XeS1.t25
which was paid into the state treas
/ ufF. To make examinations hat would
bring out such information as has
+ been gathered By the legislative com
iUlttee, the witness said would re-
Qutrc ten m0Ie examiners and an adj
ditloUalr appropriation OF from S5o,0jt
So 100000 '.-He thousht, however he
could Set the appropriation NJ he
asked for 1t.
Mn. Hendricks knew nothing of the
large legal expenses of the New York
Lite Insurance company the Equitable
and he Mutual Life as they had never
boon called 90 his attention He had
never heard OF he wash sales ut So
curiues nor the year-end loans of tho
Equitable 10 clerks OF Kuhn, Loeb x
10 his attention.
Statement Not Required.
Ir Hughes asked. DO you require
The companies tu present a detailed
statement of their legal disbursements.
showing the names OF lawyers who
had money and what the had 10 Ton
-hus the department ever required
thato"
NO ! don't think so."
Nov. We find information cf that
sort being furnished TO Prussia and
no, 20 the. New York state department.
Here for. example. i have the state
u.ent OF the legal expenses OF The
New Yorl- Life for 1885 giving I'm de-
tail the amounts paid, dsgresatms
Els-.1-5. and the names of the recipl-
rufs as furnished 10 the PrusSiau gov
rrumeut Now. did the New York
stale department ever have "a state
meut like that
No"
prom the New York Life or amy
other company.
81 think not"
Perfunctory Examination.
wei. ycI have got total in the
ga So nf the New York Life, and the
point il that 10 lad not been the tTa-
ditiou OF The department or the ordi-
mary practice To require UythlnG more
than SO much for legal expenses and
as long as they had enough left 10
meet their liabilities With such "a mar
gin that. in the ordinary expectations
of life would not be exceeded, why YOU
would not lake zap the question Of de-
tails of their disbursements.
u don't know what report they
made. OF course. I am not accurate:
Il is possible they did not puJ them all
IN the legal expenses they reported"
Now, what IS your practice in re-
gard to reports tfaJ came in Did YOU
look them over yourself The annual re-
ports
Didn't Look at Reports.
"Not all Of them: if there is anything
that the slatisJiciau referred 20 me"
"Then they We're referred TO the stat
istician in the tirs. Instance
What we're his duties with reference
10 The reports?
"He examined an the reports
Did you look through the collateral
loans
who had charge Of that maltereJ
Mr.. Nanderpool'
Made No Investigation.
Did any one I'm thp departments en-
deav0r to ascertain whether there mad
been any shifting Of securities or tenn
porary arrangement made which would
indicate thaC the statement MAS nor
true:"
NO, we took the reports as they
We're made 10 me-
Unless. then, YOU had an cNamina-
ton YOU would not detect whether the
securities reported al the end of the
given year were changed ina the begin
ming Of the 3eNt year,"
'I think n0t without an 6Xamnla-
ii n"
'"When was iJ first that you learned
mar Kuhn Loeb & CO.. for example,
were taking alleged collateral loans al
The end of the year. either in their
own name or i'm the name Of their
clerks, without any real loans being in
existence OF intended TO be?'
Il have seen such statement IN the
newspapers; / never learned it
Did YOU learn that in the course OF
your examination this year"
7 don't think So"
The Equitable Memorandum.
Mr.. Hendricks said that IA making
the examination of the Equitable las
spring he did not have his attention
called TO the existence Of a memoran-
dun in lieu of cash kept b. the cashier.
and he was asked.