Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-10-04
INSURANCE WOES
TOLD BY ACALL
Head of the New York Life Says
Companies Are Victims Of
Blackmailers
MOTIVE BACK OF THE LAWS
Claims Two-Thirds Of the Bills Intro.
duced in Legislatures are Destined
to lnjure Insurance Companies
Companies Are Kept Ia Hot Water
Investigation Continues.

New York, Oct 4-Jonn A. Mccall,
president of the New York Life 1nsur-
ance Company, was again before the
legislative committee for investigation
Of life insurance companies today. In
a statement on the general legislative
experience of his company, Mccall said
that three quarters of the bills on In
surance legislation introduced into the
various states, were blackmailing bills.
Mccall denied the New York Life
Insurance Company Disseminated
against American soldiers in the Span
ish war. 1t was alleged recently the
New York Life, at the outbreak of the
war, made more liberal terms with
Spanish policyholders who might serve
as soldiers than it did with Americans
in similar circumstances.
Mccall began the testimony by de-
failing the system used in making re-
ports to state insurance departments
and explained the mortality tables fol-
lowed by the New York Life Mccall
said the company's surplus Is earned
by lesser mortality than that assum-
ed to be probable, and also by secur-
ing rate of interest on money and in
vestments better than that counted up-
on in the actuaries' tables. He then
went into the history Of life insurance
in this state, telling Of the great num-
Der Of companies started from 1876
to $780, and Of failure Of most of them,
through extravaganza and incompe-
tency. VII
Mccall stated the Increasing COM
pensation to agents was temptation
for agents to rebate but said under the
"Nylic" system, agents contracted not
to do so and forfeited the benefits OF
that system if they violated the agree
ments. He then went into detailed
statement Of general legislation, say
ing:
With the beginning of every year,
dare say, 1t is the feeling of every ex-
ecutive officer-I know 1t is of myself
that for the ensuing five or six months
OF the year we shall be badgered and
harassed to death in every state in the
union by introduction Of bad bills OF
every kind. Sometimes men Of honor
will feel they have a right to amend
a law and their motives are alright.
but mainly the general insurance leg
islation Of this country emanates from
people who are desirous of striking at
the insurance companies. I believe
three -fourths of the insurance bills in
the United States are blackmailing
bills. The management Of these COM
panies really tremble in the beginning
of the year as to what they have to
encounter during the following SIX
This is condition which l think
your committee can do much to provide
against, If it will but pass a law sirn-
liar to the Massachusetts, law, that ev-
cry bill introduced shall be lodged or
reported in the office of the secretary
of state"
Mccall said the New York Life be-
gan to make loans to its own policy
holders in 1892.
"You know it is against the law for
COMPANIES to make loans against their
own policy"
81 never heard that before
Rufus Welles Weeks actuary and
second vice president of the New York
Life succeeded Mccall as a witness. He
said the company paid agents more.
for deferred dividend policies, which
are easier to write, than they paid for
writing annual dividend policies. This
was becausce the deferred dividend
policy was much more to be desired
by the company, because it furnished a
fund to carry on new business. Asked
about the declaration made by the New
York Life in it's returns to the Prus-
sian government, which showed divf-
dend on deferred dividend policies, and
for explanation of greatly increased
in the fiscal year of tontine,
Weeks said there was very little con-
nection between the final allotment and
Interim allotment. The share Of the
surplus each policy had earned was
added till the end Of the period.
"Interim dividends are simply added
to satisfy the Prussian governm ent"
YES" said Weeks.
counc;Inoen are Enioinad
Omaha, Oct. 4.-Judge Sutton, in the
district court granted a temporary in
junction against the Omaha city coun-