New-York tribune., 1905-07-21
THE GOVERNORS MESSAGE
Recommends Consideration Of the
Investigation of Insurance.

Albany. July 20.-The Governors message to
the legislature. read after the Hooker rollcan
had been made, In far as II related to the
insurance situation. was as follows:
The unfortunate scandals recently made public
by internal dssensions in the Equitable Life AS
tigation Of its affairs by the Superintendent Of In
feeling of intense alarm In the breasts Of thous-
ands Of citizens who have invested their money
OF non-resdents who have been taught to respect
the New York companies as safe and secure
ent conducted. is subject to State supervision and
aegpao9 m TOR me purpose OF soef6s ~ s
companies. it is evident that evils and abuses may
be credited to the policyhoiders may be diverted
10 70 oher purposes that expenses OF o3eTan9n y
deal Indirectly with the trust funds for their per-
ca exist reflects discredit upon the State.
Legislation is no panacea for the Ills of the body
eolitIc that rise from a disordered moral sense
The multiplicaton Of penal statutes does not di,
6ymPtom Of its gr4wth But 1t Is as
cent and inadequate and that the manaseInent mt % OF
The funds Of these great companies Is not suffi-
The State owes duty to policvholders and
benehcIaries beyond that OF comparing assets with
their existence p by the exhibition Of Satisfactory
investments must be restricted Salaries must be
limited to amounts bearing closer rea tion to the
tees must be held to a stricter accountability and
the poIicy@hodeEs u @ must be given more effective
1t may well be that the harsh and arbitrary
made not only penalty for insolvency, but also q
summary check upon solvent company when 1t
greed The State cannot permit the subjects Of
It's supervision TO exist as licensed prodigals OF
piice to the otfence.' fel' "''O1'
we cannot judge all life insurance companies by
to rid ourselves of the vermin that nfest 1t, nor
the disease: A revision Of our insurance law is
necessary, but 1t should be made with calmness;
deliberation and intelligence. and after carefuI
study and investigation.
Speaking of Superinten Hendricks's In
vestigation of the Equitable, the Governor says;
Within the scope of his authority and the limits m
SuY i' with impaTtip thoroughness Although he
has Informed me that by reason OF the statutory Y
reason of the magnitude of the task imposed upon
him. he would welcome the aid of legislative in
tSst he With his Staff Of experts and 9 with the
authority vested in him to conduct inyestiga tons
well qualified to collect all necessary evidence
other inVestigaton outside the courts Of justice
was necessary or desirable. pending the investi-
1t is. however, of the highest Importance that a
revision Of the insurance law shouid be enacted as
that the Iegisature should determine for itself
how the information upon which to base such a
revision may best be obtained II In its judg-
bers is calculated to produce the most satisfac-
tory results, such an investigation cannot too
In order that you may be free to consider and
act upon the subject this session l. therefore.
pursuant to the constitution, do hereby recon-
mend for your consideration the question OF the
appointment OF joint committee OF the Senate
and Assembly. with the usual powers Of such
committees to investigate. after your adjourn
ment. the operations Of life insurance companies
doing business in the State for the purpose of
prenaring and recommending to the next regular
session of the legislature such proposed legisla-
ton as may be adequate and proper to restore
public confidence and to compel life insurance
companies to conduct q safe. honest and open
business for the benefit Of their policyholders.