The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-12-22
AN | DON 7 THINK
So MAN IS HEARD
New York Superintendent
of Insurance.
DID He SWEAT? NOT He
He Shows That Examinations of In
surance Companies by His Depart
ment are Made Only 10 AsCer-
tain Their So!vency. Hen
bricks Didn't Conduct These.
(By the Associated Press. }

(By the Associated Press)
New York, Dec. 21.-Francis Hend-
riclls superintendent of Insurance of
| New York State, was the chief wit
ness before the legislative committee
of insurance investigation today and
testified that the examinations of in
surance companies by his department.
are made to ascertain only the SOL
vency of the companies, and that no
investigation is made into the extrava-
gance of the management of the COM
pany, or into the salaries paid to Off
GERS, SO long as the company is able
to pay it's obligations. No investiga-
tion is made into the commissions
paid to agents, the system of lending
on the premiums, the advancing OF
loans to agents. or loans to directors.
The employment of llinSpeOple as Off
GERS in high positions is not inquired
into. This has long been the custom
Of the department, Mr.. Hendricks said,
and he declared further that he per-
sonaIly knew little or nothing about the
various examinations made as they
were entrusted to Isaac VanDerpoel,
the chief examiner Of the department.
While Mr. Hendricks memory failed
him as to any legislation which he
had suggested as a remedy to any de-
fects in the laws governing insurance
companies, he stated that no measure
that ne had ever presented had ever
been opposed in either house of the
Legislature Neither had any bill been
passed against his recommendation.
Mr.. Hendricks said that his depart
ment spent last year about $4,000
and received in fees and payments
$2S7,72G, which was paid into the
State Treasury. To make eXamina-
tions that would bring out such infor-
nation as has been gathered by the
Legislative committee, the witness said,
would require ten more examiners, and
an additional appropriation from $50
900 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 Equit-
able and the Mutual Life as they had
never been called to his attention He
had never heard of the wash-sales of
securities nor the year end loans of
the Equitable to clerks of Kuhn, Loeb
and Company nor had these ever been
brought to his attention.
Chorus of L Don't Think So.
Mr. Hughes asked:
10 you require the companies 70
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
TWO-X
mo. l don't think Sol"
"Now 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, aggregatng
$197,725.SS. and the names of the
recipients as furnished to the Prus-
sian government. Now, did the New
York State Department ever have a
statement like that?"
mo"
"Now, what is your practice in re-
gard to reports that came in? Did
you look chem over yourself. the an.
nual reports?'
mot all of hem, if there is any
thing that the statistician referrei
to me?"
Then they were referred to the
statistician in the first instance?"
Eyes"
What were his duties with refer
ence to the report?'
He examined all the reports"
did you look through the collat-
eral loans?"
"I don't think So
''Who had charge of that matter?'
"Mr VanDerpoel"
"Did any one in the department en-
deaVor to ascertain whether there had
been any shifting of securities or tenn
pOrary arrangement made which
would indicate that the department
was not true?"
mo, we took the reports as they
were made to me-
"Unless then, you had an eXamina-
tion you would not detect whether the
securities reported at the end Of the
given year were changed in the be-
ginning of the next year?"
Il think not without an examlna-
ton
when was it first that you learned
that Kuhn Loem & Company, for ex-
ample, were taking alleged collateral
loans at the end of the year either
in their own name or IN the name OF
their clerks, without any real loans
being in existenc or intended to be?"
II have seen such statement IN
the newspapers; | never learned it."
did YOU learn that in the course of
your examination this year?'
81 don't think So
Mr. Hendricks said that in making
the examination of the Equitable last
spring he did not have his attention
called to the existence of memo
randun1 in lieu of cash kept by the
cashier and he was asked:
"What examination was made un-