The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-12-26
The State Superintendent
Of New York Shows
Little knowledge of In
surance AHairs-Puts
Blame on Others.
Depew Matter Was "An-
cient History" and it
(. Was Left out Of Report.
Testimony Reveals
L-axity Of Duty.

New York, Dec. 21.--''We have left
the management of the companies in
the hands of the officers of the COM
pany."
State Superintendent of Insurance
Hendricks, appearing as witness be-
tore the Armstrong committee today,
thus summarized the work of his de-
partment, adding that the chief aim
and practically the sole object of the
department was to see that the COM
panies remained solvent.
The testimony given by Mr.. Hend-
ricks brought out the following facts
That the literature of the various
companies, much of which Is mislead
ing, has never been examined by the
department,
That the estimates of dividends on
which business is secured, and which
have been proved extremely inaccur-
ate. have never been examined by the
department.
that though all policy forms we're
submitted to the department. those
containing ambiguous and misleading
clauses have never been prohibited
That the superintendent was aware
that the law gave him power to ex-
anime into these matters
That a list of examinations prOduc-
ed by the superintendent did not con-
of the Mutual which lasted year and
cost the Mutual $4,000.
That although this examination last
ed so long, Mr.. Hendricks never visit
ed the Mutual offices, never placed an
officer under oath, and never knew per-
sonally of the high salaries paid or
the other abuses.
That virtually all matters of import
ance went to either Chief Examin-
er Vanderpool or Deputy Appleton.
That the department never learned
of the very large sums paid Andrew
Hamilton, simply accepting the total
for illegal expenses" as long as the SOL
yency of the company was not impair
ed.
Questioned as to the specific instan-
ces in. which the department had ap-
parently failed to act Mr.. Hendricks
made the following admissions:
That he might have barred the En-
pire Life Insurance company from do
ing business under the law.
That he had left the matter of the
Depew Improvement company out of
his report because it was ancient his
tory" to him.
That he had refrained from men
tloning the U. p. holding syndicate In
his report on the Equitable because
the society had lost no money and the
testimony was contradictory.
Mr.. Hendricks showed little know
ledge of the insurance laws and ad-
mitted that virtually all the import
ant disclosures made recently had nev-
er been brought to his attention. All
responsibility for the facts that the
numerous examinations should have
disclosed and didn't he placed on Ex-
aminer Vanderpoel.
The superintendent In answer to a
question said he thought ten more ex-
aminers would facilitate the work Of
the department greatly, but admitted
that it would cost no more than 1t
does at present to get itemiSed state
ments of expenses and investments in
stead of general statements.
1t would not do. he said to allow
the department to attempt to take a
hand in the management of COM
sanies. A decided responsibility would
be had; 1t would be better to have the
state run the insurance companies.
Many matters, had. according to his
statements. been referred to the at
torney general, but he had not mem
oralized the legislature or barred any
company.
Isaac Vanderpoel, chief examiner,
followed Mr.. Henrdicks. He said the
Mutual examination lasted from jan
uary to September 1908, He had IL
examiners assist him, and went
through the books to verify the an
nual report on receipts and dlsburse-
ments.
Are you prepared to swear that the
statement of income as set down In the
report of the previous year was COR
rect?"
According to the books, yes sir"
Didn't you learn that the receipts
were greater than reported and that
part of these receipts were used to re-
duce the apparent cost OF getting bus
iness2"
IT did not"
"Is this the first you have heard
OF III"
'Tt is" r.
ibid Won learn tha amount OF the