Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-22
sUPT. HENDRICKS
CONTINUED from Page One.)

who recommended Mr.. Bulkeley nor
what his business was before ne APP
uointed him. A Mr.. Graham ana Sena-
for Plat recommended the two others.
OF the appraisers appointed, one, Mr.
Taggart of Newburgh, was recommend
ed by ex-Gov. Odell.
Mr.. Hendricks detailed the practica.
duties of his office. Since Jan. l, 1885,
there had been 46 examinations of life
Insurance companies including the
Equitable four times, New York Life
twice and the Mutual three times.
Mr. Hendricks had never taken any
steps TO verify estimates of returns
given out by companies. Mr.. Hend-
rick3 was asked if the agency COM
missions of companies had ever been
considered by the department ana ne
replied that the department did not I'M
dertake to manage the companies.
Asked if he ever considered any appar-
ent tXtravaganceS in companies MI.
Hendricks gave the same answer.
He said: mo amount of examination
will make men honest. You take the
Equitable for instance; unless we had
had help from the inside we never
would have found anything. We had
gone through and examined their books
and found no regularitieS."
Mr.. Hughes called attention to the
three examinations of the Mutual Life.
In 1902 and 1903 this company paid
to the department about 100000 for
examinations. Those examinations
were very thorough. Mr.. Hendricks
said, but he did not learn of the sal
aries of the officers of this company
nor of any extravagances. He never
heard of A. c. Fields and learned
nothing about the supply department.
He looked only for the solVency of the
company.
Mr.. Hendricks said he had supposed
these companies were successfully
managed. He said:
You must leave the management of
the companies to the directors. Half
of what has been discovered here
would never have been apparent to
u.s." Mr.. Hendricks said the depart
ment had not exercised all its privil-
eyes, because of the expense which
would be entailed. He said he had
never tried to get a larger appropria-
ton for his department.
Mr. Hughes asked if in looking over
the collateral loans of a company any
attempt was made to find out if there
was any shifting of accounts to get
the better of the departments. and
witness replied:
81 presume not. The reports were
accepted as presented
Mr. Hendricks said he never heard
Of the loans at the end of last year
from the Equitable which Kuhn. Loeb
& Co, took in the names of clerks un-
til he read it in the newspapers. He
said his department did not require
gain and loss exhibit annually to show
just how the companies stood. Asked
il he thought it advisable to require
such n report Mr.. Hendricks replied:
I'm inclined to think it is
He did not know Andrew Hamilton
but had heard he represented an in
surance company. He never heard of
the large amounts Of money paid to
Hamilton by the New York Life.
Mr. Hughes showed the witness a
detailed statement of legal expenses of
the New York Life which had been
furnished to Prussia and had not been
given to the state insurance depart
ment This showed that in 1898 the
New YORK Lie ndQ PAD out sums
aggregating Si97,125 for legal expens-
es and gave the names of the recip-
tents of the money
Suppose you had had n statement
like that put in your hands you would
have done something wouldn't you
made it 4 subject of official comment
at least?"
Mr.. Hendricks vouchsafed no reply
to this inquiry.
Mr.. Hendricks said he never at
tempts to examine all the reports sub
mitted to his department. The statis-
tician examines all of them, however,
and that official was supposed to refer
to the superintendent any matters
which appeared to him to be question
able