Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1905-12-28
WERE SUPERFICIAL.
New York Superintendent of Insur-
ance Tells Of Examinations.
ONLY MADE TO ASCERTAIN SOLVENCY
Hendricks Himself Knew Little Of
Methods or RepOrts-Examiners
Followed Precedent, Accepting

New York, Dec. 22.-Francis Hen
bricks, superintendent of insurance OF
New York state was the chief witness
before the legislative committee of in
surance investigation Thursday and
testified that the examinations of in
surance companies by his department
are made to ascertain only the solven-
cy of the companies, and that no in
vestigation is made into the extrava-
gances of the management OF COM
pany or into the salaries paid to Of
tlcers so long as the company Is able
to pay its obligations. No investiga-
ton is made into the commissions paic
to agents, the system of loanlng on
the premiums, the advancing OF loans
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.. Hendricks said, an0
he declared further that he personal
ly knew little or nothing about the
various examinations made, as they
were entrusted to Isaac Vanderpoei
the chief examiner of the department
While Mr.. Hendricks memory failed
him, as to any legislation which he
had suggested as remedy to any de-
fects in the laws governing insurance
companies, he stated that no measure
that he had ever presented had ever
been opposed in either house of the
Legislature nor had any measures
been passed against his recommended
tion.
Mr.. Hendricks said that his depart
ment spent last year about $lS7,O0O
and received in fees and payments
1921, 726, which was paid into the state
treasury. To make examinations that
would bring out such information as
has been gathered by the legislative
committee, the witness said, would re-
1uire ten more examiners and an ad-
ditional appropriation of from $4,000
to 100000. He thought however, he
could get the appropriation If he asked
for it.
Mr.. Hendricks knew nothing OF the
large legal expenses Of the New YORK
Life Insurance company, the Equitable
and the Mutual Life. as they had never
been called TO his attention. He had
never heard Of the wash sales of Sc
curities, nor the year-end loans OF
the Equitable to clerks of Kuhn, Loeb
& Co., nor had these ever been brought
ito his attention.
Mr.. Hughes asked:
do you require the companies to
present a detailed statement Of their
legal disbursements showing the
names Of lawyers who had money and
what they had It for-has the depart
ment ever required that?"
mo. don't think So"
Nov. we find information Of that
sort being furnished to Prussia and
not to the New York state depart
ment. Here, for example, ! have the
statement Of the legal expenses OF
the New York Life for 1898, giving
in detail the amounts paid, aggregat-
ing SISTERS, and the names Of the re-
cipIents as furnished to the Prussian
government. Now, did the New York
state department ever have a state
ment like that?"
mo"
From the New York Life or any
other company"
81 think not"
well, you have got total In the
case Of the New York Life, and the
point Is that It had not been the ira
ditiou Of the department or the ordi-
nary practice. to require anything
more than so much for legal expenses,
and as long as they had enough LEFT
10 meet their liabilities with such q
margin, that IN the ordinary e1pecta-
lions Of life would not be exceeded,