Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-22
Tells Of New York State
Insurance Inquiry.
Was Solely for AsCertaining
So|vency Of Companies.
Recommendations for Legislation to Improve
Conditions Not Opposed.

New York, Dec. 21.-FranciS Hend-
ricks, superintendent of insurance of
New York state, was the chief witness
before the legislative committee Of in
surance investigation today, and tes-
tilted that the examinations of insur-
ance companies by his department was
made to ascertain only the solvency of
the COMPANIES and that no investiga-
ton is made into the extravaganza of
the management of company, or into
the salaries paid to the officers, so long
as the company is able to pay it's obli-
cations. No investigation is made into
the commissions paid to agents, or
loans to directors. The employment of
kinspeople of officers in high positions
is not inquired into. This has long been
the custom of the department Mr..
thcr that he personally knew little or
nothing about the various eXamina-
tons made, as they We're entrusted to
Isaac Vanderpoel, the chief examiner
OF the departments.
While Mr.. Hendricks memory failed
him as to any legislation which he had
suggested as a remedy to any defects
in the laws governing insurance COM
panieS. he stated that no measures that
he had ever presented had ever been
opposed in either House of the LeSis-
latur. Neither had any bill been passed
against his recommendation. Mr.. Hend-
ricks knew nothing of the large legal
expenses of the New York Life Insur-
ance Co., the Equitable and the Mutual
Life, as they had never been called to
his attention. He had never heard Of
the wash sales of securities. nor the
year-end loans of the Equitable to
clerks of Kuhn, Loeb G. Co.
The witness said all annual reports
first went to the statistician of the de-
partment and We're examined by him.
Did anyone in the department en-
deavOr to ascertain whether there had
been any shifting of securities or tenn
porary arrangement made which would
indicate that the department report
WAS not true
''No. we took the reports as they We're
made to me-
"Unless, then, you had an eXamina-
ton you would not detect whether the
securities reported at the end of the
given year We're changed in the begin
ming of the next year"
81 think not without an XaminatiOn."
Isaac Nanderpoel, chief examiner of
the Insurance department, followed M.
Hendricks and detailed what was done
at an examination. He said that prlcti-
citlly it was 4 comparison of the COM
ranieS' sworn report with the books.
He had never known of wash sales, nor
of the year-cnd loans; he had never
known the salary of President McCurdy
L., l.,
what it was. The salaries are in one
lump sum in the salary account, ana
he had never taken steps to find out if
the supply department had never eX-
cited his curiosity, although the vouch-
crs had been looked at at random
These were stamped with the approval
cf the expenditure committee and he
had never questioned their legitimacy
of purpose. The vouchers for the $25,-
900 payments to the chairman of the
expenditure committee, he had seen but
never inquired into. Mr.. NaEderpoel
said all examinations We're conducted
in this manner, that he never tried to
go back of voucher or book entry
This was a custom which had prevailed
ever since he had been in the depart
ment.
Mr.. Vanderpoel was on the stand
when adjournment was taken until to-
morrow.
New York, Dec. 21.-Several CT the
officials of the state insurance depart
mcnt were present today when the N
surance investigating committee began
its session. Among them were franciS
Hendricks, the state superintendent
Alexander Vanderpoel. chief examiner
and Col. Appleton, the chief clerk.
Howard ]. Stokes, third vice presi-
dent and treasurer of the Bankers Life
Insurance. Co. of the city of New York
was the first witness before the COM
mittee today. Mr.. Stokes was on the
stand but a few minutes.
NJ. Stokes said that his company was
examined by the state insurance de-
partment March Is last and that the
examiner reported to the Superlntend-
ent of insurance that the companys
expensas exceeded 1.-The premium m
come. Since that time the witness SAID
Mr.. Stokes received no salary. He for
merly received $4,000, but that was
cr,t off when a general reduction of sal
aries was made in the interest of econ
| omy.
Francis Hendricks, superintendent OF
the state insurance department, was
called as a witness. 1t was MIR. Hend-
ricks. who last summer made an off,
ola; renort on the affairs of the Equi-
ia BILE Assurance Society.
Mr.. Hendricks presented a list OF
emnloyes in his office, giving the salary
of each. Among the employees is Kate
Af Hendricks 8.
nc confidential clerk with q salary OF
$500 a year.
The division of work among ,he
aminers was described. None OIL 'hese
is confined to one set OF insurance
Three appointments as speclal eAa =,
| iners by Mr.. Hendricks, those OIL "A. .
Martin. f. Bulkely and Z. IL. oalu,'
were gone into. He could not rehieii'oe'