The Topeka state journal., 1905-12-31
Is Regarded as a GOOd Invest
ment for the State.
IMPORTANT REFORMS.
Are Expected to Follow the
Commuters Report.
Resulting in Immense Saving to
the Policy Holders.

came to close here this even /
ing ct viii be given TO the legislature
shortly after the opening next Wednes- /
day. Just what the report wiz contain
no man knows. 1t is certain however, I
that the revelatfo made as to the
methods of the life Insurance compan-
les have resulted in such reforms and
IN pointing out so many evils to be
remedied, that changes viii be made |
within the six months that win safe
guard the interests of the poIicyholders /
In the future.
The pivotal figure in the investiga- /
tion just closed has been Charles Evans !
Hughes, the chief inquisitor Of the
committee Through his efforts the
searchlight has been turned on the op- /
erations of the life Insurance compan- /
les. revealing conditions that had been
unthought of before the Investigation
began. Irregular and nlegal business !
dealings on the part of the companies, !
the Juggling of accounts for window
dressing" purposes. syndicate opera /
tions for the Individual advantages of
officials Of the company, wrongful in
vestment Of the funds of such corpora /
ti0ns. contributions to campaign funds
from the money of the policyholders-
these and scores of other wrongful prac- (
Nr. Hughes. Abuses too many to
enumerate have been she wa up.
During the progress OF the inVesti- I
cation, ipeXplicable acts on the part
OF insurance company officers and
negligence aud Incompetence en- the
part of ofileis corrected f1 eHe
STATE insurance department haze oeea
pubic
aenufaliszts
epNta ons haze been Blasted, s4sr
Ao Aeia mgr positions ln the bus
ness world have been driven out of
pubic lfes Facts have beAse 1aveIoped
tnat may lead to the criminal tprosecu-
ton Of men who have stood as models
@ business righteousness in the eyes
OF the world.
The future work of the committee
VIII be TO point how the evils brought
70 hgnt may be eradicated and what
Steps should be taken to safeguard the
interests OF p0l1cyhOlders in the future
70 make repetition of the scandals /
impossible This viii be attended to
~ the report which viii be drawn as
As direet festtifft s6f the investtea-
ton some good hasr already been ac-
cOmplshed and some changes have
been wrought in the big insurance
companies The Equitable, over whose
scandal the investigation arose, has
new head. The Mutual likewise h;rs a
new presidents The young prodigy
VINO In large measure directed the |
y
Lie has also given UP his position
Another result has been the institu-
ton Of retrenchment plans by several
OF the companies. Under the new
management. the Equitable promises /
70 reduce Its expenses by hundreds of
thousands of dollars each year.
The Mutual likewise is preparing to
put into effect changes that viii save
IT'S pofcyholders enormous sums every !
year. The retrenchment policy will in
all probability be adopted by every
other company As another result of
the investigation more care in the in
vestment of the assets of the com
panies is being exercised. Methods of
investment that hitherto have been re
sorted to in the future viii be til bOOed
syndicate operations in which the
companies and officers of the same
participate Jointly will hardly be
tolerated
A Good Investment
So the S. days of actual work that
have been devoted to the investigation
have not been wasted. The. cost. while
great to the state has been good in
vestment Of public moneys.
With all the developments of the in
Vestigation there is not a member of
the committee that feels ssat the work
had much more than commenced. That
six months more could be given to the
GuoWledged. That enough has been
brought out to make it possible to
l3ring about large reforms, is regarded
as certain For that reason members
Of the committee are not sorry to have
the investigation close
Even to the last moment the investi-
cation was not without sensa tiOnal de-
Veiopments. Today's proceedings
brought ont one additional fact This
was that the Equitable had successfully
lodged the law in regard to rebating
and had systems of its own by which
this illegal practice could be followed.
George H. Sickles. Buffalo manager
OF the company was the witness from
whom this bit of evidence was elected.
He testified that as far back as 1898
Gage Tarbell, second vice president of
the company. had suggested a. plan by
which rebating could be accomplished.
Sicixles' Instructions were to write pol
tcies at the full premium and then write
out letters of Introduction on which he
was to pay S100 each. "in order to come
in contact with other probable in
surers.
Gave Rebates
The witness admitted reluctantly he had
not quite followed this advice but had
given rebates outright Ihe evidence was
Interesting inasmuch as Mr.. TarbeH,
when on the stand stated he was op-
posed to rebatiug-
as witness IN order 20 explain what
services he rendered. for the retainers
paid him, sent 2 -e9H7Iaalnteation today
TO the company saving he very much de
sired to be heard but that his health
would not permit it. The committee de-
cded to allow him to submit a state
ment if he so desired on condition that
it is forthcoming in the near future
The investigation came to q close with
a sort-of love feast. Chairman Armstrong
made a short speech in which he thank
ed Mr.. Hughes and the associates cOun-
sci for their able and conscientious ef-
forts and commended the other mem
bers of the committee for the attention
they have given to the prOceedfng IN
return the members of the committee.
presented Senator Armstrong with sold
watch as a token Of their appreciation
The committee adjourned sine die but
45fI1 meet again If any statements are Of
Tered BY Senator EEfIl or Mr.. Tarbeu who
NV want to explain Mr. SickIes' testi-