New-York tribune., 1905-06-23
THE EQUITABLE AND THE LEGISLATURE


The Insurance Departments report OF It's IN
| ,estioation into the management and condition
of the Equitable Life Assurance Society IS seaFch
ing ana fearless. II any features OF the case
are not explored In detail-aS, for example, tile
enormous balances carried in the society aAiiiA
sted institutions-itis is to be supposed that super
intendent Hendricks either considered that they
had been adequately dealt with IN the report u
the Erick committee, and that brlef out pialh
reference to them by himself was sufncleut' of
else reserved them for future treatment 1hose
who have been heedlessly insinuating that MI
Hendricks would smooth over the rouSh places
,,bich he discovered and leave his findings color
loss must now be ashamed of their suspicious.
At several points he has penetrated even deeper
than did the Frick committee, and from hrst U
last the report contains ample evidence VI .ne
care the courage and the 1mparuaIty WIN
which the investigation was conducteu- Fer-
hans the first reflection which it Will Suggest ID
that such scrutiny and such verdict py tne
Insurance Department We're sorely heeueo
long ago. 49,.
Mr. Hendricks refers his report TO the AltoF-
uev General for such action as that onlcer OF
tbe State government may see fit to take. Until
Mr.. Mayer has had fun opportunity to CONSIDER
his duty It would be unbecoming to anticipate
his decision. But there is something Wnlcn re-
ouires to be done outside Of his ofilce. 1nere
has been, thus far, an unmistakable dls1nchnauon
on the part Of the legislative leaders to take up
the affairs of the Equitable society at the preseht
extra session. So far as the impatient ueIlanu
in some quarters for a legislative inVesugatloh
is concerned, we greatly doubt the advantage
of such q proceeding. If there were reason to
think that there are depths which have not
heen or could not otherwise be explored, we
sbouId not mildly approve, but insistently urge,
an inquiry under the authority of the legislat-
rre But we do not believe that the trlck anu
Hendricks investigations have left anything
hidden for q committee of the legislature 10 IN
cover, though it is possible that the prone winch
Mr Morton's unimpeachable accountants are
now inserting may let out some new facts 10
sustain conclusions already reached.
Because, however, an Investigation by the
legislature seems to be unnecessary, 1T does not
follow that legislative action of any sort ought
to be discouraged. Superintendent Hendricks
says:
No superaciai measures will correct the exist
ing evils in this society cancer cannot bo
cured by treating the symptoms. Complete
naturalization with the elimination Of the stock,
to be paid for at a price only commensurate with
its dividends, is, in my opinion, the only sure
measure of relief
We said last week, in referring to Mr.. Ryan's
acquisition Of majority Of the Equitable stock
and to the deed of trust, that definite and final
opinion on all the issues WHICH uau DecH IdlSeu
could not be formed until Mr.. Hendricks had
made his report; that an amendment to the char
ter might be needed, and additional legislation
prescribing the classes Of securities in which the
investments of life insurance companies could
be made. The expectation thus suggested has
been confirmed by the findings and recommends
tons Of the Superintendent of Insurance. A
way ought to be provided by which the society
may acquire the stock for the permanent pro-
lection of the policyholders' interests, We have
already expressed belief that Mr.. Ryan, in
buying the stock control and Immediately vest
ing it in trustees whose probity and disinter-
estedness are above suspicion, was actuated by
honorable motives and performed an exceed
ingly useful service at critical moment Sub
seuuent incidents have strengthened that belief,
and we have little doubt that Mr.. Ryan, If he
did not originally contemplate such a step,
would now cheerfully cooperate in accomplish
ing the object which we agree with Mr.. Hen
bricks in considering indispensable.
The general principle enunciated by Governor
Higgins is sound-that the legislature should not
be expected and empowered at an extra session
TO take I'D miscellaneous business which it did
not see fit TO transact at the regular session.
But the affairs of the Equitable society are not
covered by that rule An emergency has arisen,
and it is not advisable to put off dealing with it
for eight months. We earnestly hope that the
Governor will recommend Immediate attention
to a grave and pressing question.