The Cairo bulletin., 1905-07-21
INSURANCE
GRAFT TO THE END
New York Legislature Appoints
Investigating Committee
.AppROpRIATES $4,000
ACTION is IN RESPONSE TO SEN.
sATloNAL MESSAGE OF GOV
ERNoR HiGeINs-PAUL
MORTON WELCOMES SIT

Albany, N. Y, July 20.-There will
be legislative investigation OF the
Life Insurance business as carried on
In this state, both by New York state
corporations and by those of other
states doing business within this state
This investigation will be made by
a special joint committee with ample
powers, composed of Senator William
A. Armstrong, of Rochester; William
J. Tulley, Corning Daniel j. Riorden,
New York City. Armstrong and Tully
are lawyers; Riorden is real estate
and insurance agent
The five assembly members of the
committee will be named by Speaker
Nixon within the next day or two.
Armstrong said tonight that while the
actual hearings by the COMMITTEES
would probably not begin for some
time. preliminary preparations, calcu.
lations and SO on, necessary in pre-
parat,on for the inquiry, would be set
in motion as soon as possible and the
Organization of the committee would
I take place soon as the assembly mem
bers had been appointed.
Governor Decides 1t.
| The institutian OF the committee fol-
lowed hard upon message of Gov
ernor Higgins to the legislature, which
came as complete surprise. Its Of
feet may be described as sensational.
$50, 81 r,.,r ~, -, "a I. toix, ;,,tr,d,,oal
a resolution providing for the appoint
ment Of a joint committee to inves-
| tigate and examine into the business
and affairs OF life insurance companies
doing business In this state, with refer
ence to investments Of said companies
the relations OF officers thereof tc
4 such investments, the relations oi
such companies to subsidiary corpor
ations, the government and control ol
said companies, the contratural rela
tons of said companies to their policy
holders, the cost of life insurance, ex
penses or said companies and othel
phases OF the life insurance business
deemed proper for the purpose of re
I
islature such revision Of the laws re
gulating and relating to life insuranc,
in this state as said committee ma,
deem proper.
$4,000 Appropriated For 1t.
This was adopted by both houses
with an appropriation Of $4,000
Paul Morton. chairman of the boar,
of directors of the Equitable Life As
surance society, made the fo1lowini
statement today in regard to Governo
: Higgins message to the legislator
: recommending an investigation Of tn
life insurance companies OF the state
Il do not object at all to an officia
investigation Of the life insuranc
companies Of the state. The NOR
complete and searching the investigs
tion Is the better it will suit me, an
the better 1t will be for the Equitable
We hope the proposed investigation
! of all New York insurance companie
will be as exhaustive as propose I
: make the investigation of the affair
Z of the Equitable which began over
: month ago by chartered accounts. N
: half-hearted investigation will restor
the confidence of the public in the Iii
: insurance business. The Equtabl
{, society Is concerned 1t is my inter
: tion that the policy holders, trustee
! new directors and the chairman I
! the board shall know the exact cond
: tion Of its affairs from top to bottom