New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-14
HARRTMAN NOT CALLED.
Senator Dryden argues for Federal
Insurance Control.

Insurance Control.
No effort was made by the legislative insurance
| investigating committee yesterday call E. H
! Hartman to take the stand and explain his po-
htical influence threats which have been described
by Thomas +. Ryan. Moreover, it is understood TO
be the unanimous opinion of the committee that
it will not call him. On the other hand, both
members Of the committee and others believe that
Mr.. Hartman will ask to be allowed to tell his
story, and no doubt seems to exist in the minds OF
those close to the situation that Mr.. Hartman will
again TESTIFY, though not at the request or demand
of the committee.
Resuming the stand yesterday, Senator John F.
Dryden, president of the Prudential detailed at
some length the growth and policy Of his COM
pany His views favoring federal control of insur-
supplied the main interest his afternoon
testimony In the morning he talked about the cost
of industrial insurance His testimony indicated,
as it had Tuesday, the expensiveness of such
policies to the poor the vast number Of lapses
reaching nearly two-thirds in this business. and
also the rather CHASTITY detail of payments to I'M
dertakers. Just at the close of the session Vice
President Fisk of the Metropolitan Life took the
stand and told about the industrial business of his
company. He still on the stand when the ses-
sion closed.
In discussing the subject Of federal supervision.
which he has publicly advocated. Senator Dryden
said:
believe such supervision would be great ado
for it In Boston regard the right Of Congress %
regulate insurance possibly debatable. num-
Der of decisions this question have been oased
on State precedents. There has never been fed
r decision boT but h9P9 f saes M
Court and that it will assert jurisdiction in the
IN the matter Of insurance we are no now Just
fee %9 Mere act We are facing fifty different
legislative enactments. Long ago a congress OF
between the insurance laws of various States, but
how long would it take to secure It? how e sc
in the effort get uniformity in divorce laws
am told that fire insurance companies are af-
fected by fraudulent companies and here again the
enough to reach These companies 1 am told. go
in half a dozen, but never issue a policy in the
State of their Incorporation and therefore cannot
believe we ought to have one federal and general
CODE which Congress should provide.
TOO MANY INSPECTORS"
In response to Mr.. Hughes's questions. Senator
Dryden admitted that the chief Of annoy
to insurance companies was the power of the
various superintendent to revoke licenses and
that the visits of commissioners also regarded
as a nuisance. He admitted that there was a di-
vision among insurance companies and officials on
the subject of federal supervision. He argued that
the federal department, If constituted could ex-
anime far more efficiently than any State depart
1nent and that a government department would be
far more effective than the fifty of different States
now maintained He recognized the right of these
departments to supervise. but complained at the
number of supervisors entaied-
He said his company did foreign business, but
declined to give any expression of opinion on the
wisdom of engaging in such business. He de-
clared himself opposed to any limitation in amount
of business that could be done by company. and
suggested that. If such limit set, it would
be avoided by the transfer of new business to e
subsidiary company.
The testimony regarding the cost Of industrial
insurance to polcyholders was exhaustive. John
K Gore, the actuary of the Prudential, testified
that between 1900 and 1904, that company had
collected on industrial policies about sn0000OO0 and
Maid out to policyholders about sS9GO0O0 of which
900 represented surrender values or this last
figure only $4,000 actually paid In cash. the
rest being in pad-up policies Since its organlza-
ton the Prudential has taken in $S065c0,OOO and
paid out 1922 O00,0OO the balance being SS45"'Wo
The liabilities are $7517O1SO and the surplus s13OOG-
co., The dividends last year were only $4,000 and |
the surplus increased $300GOOo. The extent OF the
industrial business of the Prudential is indicated
bv the fact that in five years it has amounted 10 |
co., twice the amount of ordinary insurance
SMALL RETURNS TO INSURED.
Accen,:ng the actuarial figures, Mr.. Hughes estt-
mated that the policyholders got average return
in the aggregate of only about one-thrd of what
they paid In but the actuary objected to this de-
claring the future the benefit would be greater
The actuary admitted that lapses were more
panies, but insisted that the company preferred TO
have the polcyhoders keep on paying as thls
would bring in more money. Nj Gore es9m ;4ted
the average industrial policy at Sl2O he aQHltteu
that in the last five years. in which the Pruden-
tails surplus has doubled there has been no in
creased advantage to the policyholder save the
issue to any eighty years old policyholder OF ten
years standing of a paid-up policy. That was
reduced TO figures and showed that If the policy
holder had paid in 10 cents week for this time
hat is, $52-he would get SIG. Mr.. Gore gave
ong list of risks the company would not accept.
These included actresses aeronauts and others or n
vide range. The payment TO undertakers. MI
Gore admitted, acknowledging that in some cases
he funeral held until the company was
leard from. The payments since January have
averaged sos 08 to policyholders, and SIS 06 to the
ndertakerS.
Senator Dryden made an eloquent plea for indus
rial insurance, which suggested Richard A. Nc
'urdyS famous utterance about the missionary
haracter of insurance. His statement made
n answer to the following question asked by Mr.
hughes:
''What is your judgment Of any system that
axes from the very poor more money than they
et, the average. in return?" !
The Senator replied
From an economic standpoint l believe that in ,
ustrfal insurance is the greatest OF educate .
mong the poor. II teaches saving. The child is
aught from the cradle the value OF insurance as
rejection TO the family Later, man. he will 7
e able to take out ordinary insurance. 1t tncul-
ates the wish to lift himself TO a higher plane as
% other single force has done:
If one OF these people asked offhand whether
e We're insured in the Metropolitan or in the
PRUDENTIAL he probably couldn't say but he knows
hat John Smith is his agent These people
1oUldn't money at all If they not per- 4
1aded 10 do so by the agent
EQUITABLE SUIT TO-DAY. i