The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1905-09-19
new YORK LEGISLATIVE COMMITTEE
PROBING INSURANCE COMPANIES
nY MARfEN Z rEW

staff CORES pdndenCe 81 The Star.
NEW YORK Sept. ~ "a com
mitlec appointed BY the New York
Legislature Ia holding meetings In
this city TO determine just how
much the wealthy and refined gen
tlsmen who head the country 3
duped the public which supports
them
This Is an o~u,Frowth Of the as
founding scandals In high finance
which followed a quarrel among the
Officers OF the Equitable Life Aaaur-
anee society aud is the fuifillmsnt %
n public demand. The object IL TO
frame state laws which will compel
insurance concerns to live up 90 the
requirements Of their charters.
A coferie OF very respectable gen
tlemen are on the rack and the vast
army of policy holders in MI parts
Of the country are AZ last To have
a "lookin upon the affairs 81 the
concerns they have made rich and
powerful
Are the thousands Of men and
women who invest their savings or
fortunes In so-eailed mutual inauF-
anee companies FOOLS
According To the initial ~reveia-
tons from the Investigation. Emit
tnAi" IL a nice word. which sounds
"a II = policy holder might have
something 20 say about the manage
m.nt OF the company he IL investing
In. like n xtockholdeF In some CON
panies.
II took Charles T. HuThsa who 10
conducting the Investigation. only n
few hours TO demonstrate that. az
the Insurance companies now pFae-
tice naturalization. II amounts 10
nothing more than being an aitrar-
tive and gilttertnE argument To hold
before the investing public. that the
policy holders have absolutely no
voice in the management Of the In
surance they are support
ing and which are supposed TO be
operated By them through their
servants. the officers and directors.
High officials ~ ON Of the mes,
important insurance concerns In the
world have frankly admitted on the
witness stand. under oath. that
weeks in advance o. the election.
the executive committee. without
consulting the wishes Of the policy
holders. have named the Ticket for
~trusteeahipa and directorate. that
these selections have never been
contested. that there vas only one
ticket TO vote for even n the policy
holders did vote and. In short. that
by devious methods. the affairs OF
ihesr concerns were In the tight
grasp o. the handful Of men who,
theoretically. are the employees OF
the policy holders.
The testimony shows clearly that
ao-ealled naturalization IL farcieal
and a mere form. II In n OF the
most remarkable disclosures IN
modern high finance as ~praetieed
today.
A corrective measure Ia suggested
In the formation Of a Law which viii
compel Insurance companies 10 hold
their elections ai stated intervals,
which the policy holders will be in
formed 81. and a system OF voting
by mall will be agreed upon.
The insurance Investigation In ex-
nected TO bring out what uses. prop
or or improper. are being made OF
invested public funds OF gigantic
amounts. II will be aEeeriained ~
there are any other Of these great
fiduelary concerns, besides the
Equitable. whose inner circles are
applying intrusted money to the in
terest ~ independent institutions
and enterprises for private gain. II
NAV be- explained why most Of the
big insurance concerns consider II
necessary TO maintain subsidiary
trust companies. In short. the In
yestigailon nay reveal 20 the ever
lastingly astonished gaze OF the
pubIle Just how much insurance
companies are mismanaRed rs re-
CARDS the best interests OF the pol
lev holders and In the interest OF
The inner circles. MIR. Hughes. the
chief lnauisItor, will ask the re-
spactable heads OF the insurance
companies, I'm legal yerbiage, just
how big fools they consider their
cmployers-the policy holders.
With the fact established that a
handful Of men do. In reality. con
troll tho very life Of the nations In
surance companies. and with the OBJ
vious tendency on the part OF the
D heads Of the vast Industrial and
commercial enterprises being to fur