Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-06
INSURANCE INQUIRY
Black as Counsel for Equitable
Society,".
INVESTIGATION OPENS
TROUBLES IN NEW YORK UNDER
INVESTIGATION.
Prominent Attorneys Start an Impor-
tant Query Into Company
Developments.
INVESTIGATION OPENS

NEW YORK, September 6.-Former Gov.
Frank s. Black of this state appeared as
counsel for the Equitable Life Assurance
Society before the joint legislative commit
tee today, when the committee commenced
its investigations of life insurance condi-
tions in this state. The hearing was in the
chamber of the board of aldermen in the
city hall. The committee Is composed of
Senators William w. Armstrong. chairman:
Frank ]. Tully and Daniel J. Riordan and
Assemblymen James T. Rogers, Robert
Lynn Cox, William w. Wemple. Esra P.
Prentice. secretary, and John Mckeown...
Before the hearing opened Mr.. Black said:
I'VE have nothing to conceal and no one to
protect. We seek no legal technicalities to
evade answering any questions. We will
aid in every way the progress of the in
quiry.'
Paul D. Cravath was present in the in
terests of Thomas F. Ryan, and w. {. Gull
liver attended as counsel for James HaZen
Hyde.
In opening the hearing counsel for the
committee stated that the first subject
taken up would be the position of the pol
icyholders in the administration of the
companies. He quoted the evidence once
given by Henry B. Hyde, founder of the
Equitable Society, to show the position of
the Equitable stockholders.
Robert A. Granniss. first vice president of
the Mutual Life Insurance, was called as
the first witness. He testified that he was
a director of the United States Mortgage
and Trust Company and Of the Lawyers
Trust Company.
Mr.. Hughes, counsel for the committee,
quoted from the charter of the Mutual the
clauses giving rights to the policyholders
in the election Of officers and other admin
istrative rights and had the bylaws of the
company identified and placed on the rec
ord
Senator Armstrong in outlining the pur-
poses of the investigation, said:
Our object will not be TO punish any
body for wrong doing in the past, but to
get at all of the salient features of the
modern insurance business, to sug-
gest to the next legislature an adequate
law that will not only protect the policy
holders in all life insurance companies, but
Will likewise protect the insurance company
mana cement from abuse a the hands of
designing persons. AS most insurance COM
panies are mutual in theory. we shall en-
deavor to pass law that will compel them
to be mutual in fact: Then the officers of
the company will always be working for
the interest of the policyholders instead of
working for themselves.
Several of the officers of the New York
Life Insurance Company who have been
subpoenaed appeared before the committee,
and also several officers who were not sum
moned. With them came the companys
books covering the business Of the past ten
years; The officers present were John A.
Mccall. president; George w. Perkins, T. A.
Buckner, D. P. Kingsley, vice presidents;
Rufus W. Weeks chief actuary; E. r. Per
kins, second vice president; John C. Mccall,
secretary; E. D. Randolph, treasurer, and
many junior officers. Vice-presdent Per
kins said that no legal counsel was present
to represent the company and that none was
needed.
James NJ. Beck represented the Mutual
Life Insurance of New York Lawyers
Frank r. Lawrence and Frank H Platt,
Mutual Reserve Life Insurance Company
and Richard V. Lindaberry, the Metropoli-
tan Life Insurance Company