Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-11-11
ONE man Power
Company Is What Barnes,
an Albany Attorney,
Says Of Equitable Ryan Was
| No Change for the Better.
Mass Of Figures Of Much Value TO Commit
tee Presented al Insurance Hearing,

III Ia,
! sions of the week. today, the Legislative
Il committee of insurance investigation
\ has secured a mass of detail and fig
/ ures which, while of apparent little in
/ terest to the laity. is of inestimable
| value to the committee. The greater
| part Of the week has been devoted II
| the Metropolitan Life Insurance Co., the
| examinations of President Hegeman
! and James NJ. Craig, the actuary of the
| company, being Of a most technical ma
| ture. When adjournment was taken
| today, the committee had not finished
| the examination of President Hegeman
| and he will be called again, next week.
New York, Nov. 1O.-William
Barnes, ST., of Albany, was the first
witness before the insurance investi-
| eating committee, today. Mr.. Barnes,
who appeared at his own request.
| testified that he was a lawyer and was
superintendent of insurance from
| Jan. l, 1860 to Jan. l. 1870. He identl-
| fled the vouchers dated July l, 1901,
JULY -, 1902. July is. 1908, and july
I, 1904, each for the sum of $666t6 FOR
| irLa.urrs and legal services rendered.
| The services We're for opinions TO the
New York Life, Equitable Life Assuf-
ance Society and Mutual Life lhsur-
ance Co, associated in several meas
ures Of legislation
For the Equitable he had written
several opinions for the president and
vice president recommending the mu-
tualizing of that company as provided
| in the original charter. The sum of
each voucher from the Equitable was
| a third of the entire sum witness re-
ceived for the services to the three
companies Vouchers of the Mutual
Life dated June 90. 1901, June 80. 1902.
and July /, 1904, each for $666.66, were
shown. They represented the Mutual
Life Insurance Company's share in
the payment for services.
Mr.. Barnes said he received $1,000
| from the Mutual Life for special SER
vices, Sept. l, 1905 This was for an
oral argument before Senate COM
mttee, protesting against the repeal of
Section Sc. Of the insurance laws.
Witness said he represented the three
companies.
Were you paid by the New York
| Life and the Equitable?" asked Mr..
Hughes, counsel for the committee.
The Equitable did not pay any
thing" replied Mr.. Barnes. THE
Equitable had too much trouble
themselves to take care of their own
matters and We're too much irritated
by the opinion that | had given them
that the officers of that company
should mutualize themselves because
the stockholders wanted to pocket the
whole power in that company, which
they hold to this day. That company
| is a onc-man power, today, just as
much as it ever was. except for the
change of the name of the man from
James HaZen Hyde to Thomas F. Ryan
that is the only change made. and
the policyholders have no controlling
power in it.
| Mr.. Barnes told at length his rea-
sons for opposing the repeal of Sec
ton Sc of the insurance laws. His
main point of opposition was the in
advisabiity Of allowing a policyhold-
er, without the consent of the attor-
ney general to bring q suit involving
the company, or appointing a receiv-
er or asking for an accounting. Mr..
| Barnes said he did not understand
| that Section Sc prohibits amy action
by policyholders. to dissolve the COM
pany or prohibit any action for an ac-
counting under a policy.
Mr.. Hughes asked: What is there
in Section Sc which makes an excep-
ton in case the policyholder charges
| or seeks to prove bad faith. 1t says,
no action for an accounting shall be
| brought?
Mr.. Barnes replied that the courts
made such exception prior to the pass
age of the act. 1t was Judge Peck
hams decision that it would not cover
bad faith, Mr.. Barnes said.
In order that the company should
be properly protected in maintaining
its reserve, you think that these mat
tiers should be left to the discretion Of
| the board of directors and the officers
of the company without an opportuni-
| ty on the part of the court to review
them and decide whether the actions
of the boards is proper" asked Mr.
Hughes.
| Mr.. Barnes said in reply: Judge
| Peckham said that probably every pol
| icyhoder in the country would not
| commence such an action, but that still
they could commence at least a score
| of them in every county of this state
| ana Iii -eVefy Stdte IN tnlS C1lOn. mat
| would make a beautiful hot scratch
| for our companies and make an Amer
| lean insurance company's name known
| all over the country i'll a most unfOr-
| tunate and undeServed way. InSur-
| ance companies which are unquestion-
| ably solvent and able to nay all their
liabilities at maturity would thus in a
thousand ways be subjected to this
same sort of crusade. not so much by
counsel and this commission, as by our
friends here Cunning around and look
ing at the newspaper men) who send
cOlored reports from Maine to Texas
and from the Great Lakes to the Gulf
OF Mexico to create excitement in this
matter. We, don't want to have every
500 policyholder turning himself into
attorney general or superintendent of
insurance. A thousand suits may be
commenced at one time
, Last winter when / made that argu-
ineht, had only slight acquaintance
win two or three senators. When the