The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-21

Il 1--s---.-.-------..--.-------
to the Equitable titua,io ..IIe says he e'ill
believed that no inveat igntfnn can he more
! thorough than thar Of the stare u nIrnnce
Department and that nothing Is likely to be
gained By the policyholdrr%.
Il have been urged to send in messages
on various matters at various tiine.; ne
q said TO the newspaper mon tonight, 'hl'
4 have thought II would be extremely m
\ fort unate and Improper to do 30 while the
Legislature vas considering the mater Oh
the Hooker trial.
Il have always believed that we were not
sufficiently informed 10 warrant ua IN for
mulating the necessary legislation on the
insurance stuotion at this time and that
we should wait for tho outcome OF the
further examination into Equitable aHairS.
The message / sent to the Leg 'ature to-
day have had in mind for day or two:
+ 1t was written 10 meet the almost universal
demand for further action, but | am stu
Of the opinion that probably nothing is to
be gained to the policyholders by 1t. Supt.
{ Hendricks OF the Insurance Department,
has informed me from the start that he had
no objection to the Legislature particirot-
ing In the investigation of the Equitable,
that he would probably not be ready to
( make his complete report by Jan. and that
the legislative Investigation would greatly
In his message to the Legislature Gov.
Higgins said
Gov. Higslns's Message.
!, TO the Legislature
I was led to convene the Legislature In
this extraordinary session by reason OF an
close OF the regular session. Justice of
the Supreme Court stood accused by the
Judiciary Committee of the Assembly
Of unftness to remain on the bench
No other, provision could he made for
the speedy constitutional determination
Of the question whether cause existed
/. for his removal from office, The
right Of the people to an untainted Judiciary
and the right of the accused Judge TO be
heard in his defense alike imposed upon
me the imperative duty OF slmmoning you
TO dispose Of the case,
The Constitution provides that the Gov
ernor shall have power to convene the Leg
islature on extraordinary occasions" and
that 1at extraordinary sessio no subject
shall he acted upon except such as the
Govern9r may recommend for consldeTa-
sole judge of what constitutes TIE
extraordinary occasion which shall Justify
him IN, convenng the Legislature, in
extraordinary session end doubtless
to such session, when convened. for its
considerable But the clear distinction
made by the Constitution between the
functions Of the Legislature in regular
and In extraordinary sion plainly inaicate
that an extraordinary session should be
convened only in RESPONSE to some omergent
public demand and that such subjects alone
should be recommended for consideration at
such a session as are of general pressing
and unusual importance. A matter so
solemn and SERIOUS in its nature as Il pro-
ceeding for the removal from Office Of a
Justice of the Supreme Court should not lie
interrupted or complicated by the inter-
lection therein of ordinary Legislative
business. ........-.-..-
POWERS OF The EXTRA SESSION
Under our system of annual sessions
of the Legislature emergencies that call for
consideration at an extIaordinary session
must NECESSARILY be rare. l have Accord
ingly rsfrained from recommending any
subject of lesisat ion for your considera-
ton pending the hearing in Justice Hooker's
case, and now refrain from submitting to
you not only important matters which
we're before YOU at your regular session,
but also. new matters OF minor or local
One subject in nv Judgment should he
submitted to you for your consideration.
s The unfortunate scandals recently madeEuI-
lie by the internal dissensions in the Eq',i-
table Life Assurance Society and by the
comprehensive Investigation OF its affairs
BY the Superintendent If Insurance have,
not without just cause, aroused a feeling
Of intense alarm in the breasts Of the
thousands Of our citizens who have
invested their money in policies Of life
insurance. and of the thousands OF non
residents who have been taught TO respect
the New York companies as safe and Sc
cure. While the business of life insurance.
as at present conducted. is subject to
Stute supervision and regulation for the
purpose of guaranteeing solvency and
{ the fnlflnent Of contracts on the
{. part Of the companies, it is evident that
evils and abuses may exist under our law,
that earnings which should be credited to
the poicyholders NAV be diverted TO other
purposes, that expenses of operation may
be extravagant and wasteful that unwise
Investments NAV be legally made and that
trllstees may deal ind ectly with the trust
40 for narsopnl advantage.
such condition of affairs can exist reflects
discredit upon the State. -,
Legislation is no panacea for the ills OF
the body polite that arise from a dis
ordered neral sense. The MULTIPLICATION of
penal statutes does not diminish the spirit
Of lawlessness, but is rather n symptom OF
its growth But it is apparent that our
insurance law II in some particulars var o. o.
management of the funds OF these great
companies is not sufficiently safegnarded.
LICENSED PRoprGALs OF OTHER PEOPLES
MONEY
The State owes 4 duty to policyholders
ard oeneficiaries beyond that of comparing
assets with liabilities and permitting the
companies to justify the ir existence by the
3 exhibition of satisfactory balance sheet
and The prompt payment OF losses. Invest
rnents must be restricted, salaries must be
limited to amounts bearing a closer rela-
ton 70 the commercial value of the services
/ rendered. trustees must be held to strict
accountability and the policyholders must
be given a more effective share in the
government Of the companies. 1t may
! well be that the harsh and arbitrary
remedy of dissolution and receivership
should be made not only a penalty
for insolvency, but also a summary check
upon a solvent company when It be-
comes Incidentally the paything OF law
less greed. The State cannot permit the
subiscts Of it's supervision TO exist
! licensed prodirals of other peoples money
without becoming an accomplish to the
offense.
We cannot Judge all life insurance COM
4 paniea by the sins of one. We should not
destroy the edifce to rid ourselves of the
vermin that infest it. nor should we kill the
patient to stop the progress Of the disease
A revision Of our insurance law is necessary.
but 1t should be made with calmness, de
lherniion a nd intelligence and a fier careful