Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-07-26
STATE PROBE:
OF INSURANCE
NEW YORK LEGISLATURE VOTES
FOR INVESTIGATION.
ALLIE BUSINESS INCLUDED
Empire State Companies as Well as
otrers Operating There to Be
Thoroughly Examined by joint
Committee of Lawmakers With
Fund of $4,000 Available.


Albany, n. Y, July 21.-Both houses
yesterday afternoon adopted the Arm
strong insurance investigation reso-
luton /, approp.fates $4,000 for the
expenses on the Investigation.
The Legislative inquiry will deal with
the life insurance business as carried
on in this state, both by New York
state corporations and by those of
other states doing business withia this
state, This investigation will be made
by special joint committee with ann
pie powers. composed of Senator Will
lam 4. Armstrong of Rochester, Will
lam J. Tully of Corning and Daniel J.
Riordan OF New York city. Messrs.
Armstrong and Tully are lawyers and
Mr. Riordan is a real estate and in
surauce agent. The five assembly
members of the committee viii be
named by Speaker Nixon within the
next day or two. Mr. Armstrong said
! last night that while actual hearings
/ by the committee would probably not
/ begin for sometime. preliminary prep
la1atiOns, calculations and so on, nee
/ essary in preparation for the inquiry,
would ne set in motion as soon as pos
sible, and the organization Of the com
mittee would take place as soon as
the assgmhly members had been APP
pointed The institution of the COM
lmi,tee followed hard upon a message
LOT Governor Higgins to the legisla-
| ture. which came as a complete sur
prise It's effect may be described as
/ sensational
/ Mr. Armstrong imme diately intro
iduced a resolution providing for the
appointment Of joint committee to
investigate and exam inc into the bust
ness in this state. with reference to
/ the investments of said companies,
the relations of the officers thereof 10
such investments, the relations of such
companies to their policyholders, the
+ cost of life insurance, expenses Of said
companies, and other phases of the life
1 insurance business deemed proper, for
the purpose of reporting to the next
/ session of the legis, AZURE such revi-
/ sion of the laws regulating and relat-
ing to lite insurance in this state as
said committee me-: deem proper. This
was adopted - both houses with an
appropriation of $4,000.
Morton pleased.
Paul Mo, ton, chairman of the board
of directors Of the Equitable Life AS
surance society, made the following
statement IN regard to Goyelpor Hig-
gins message:
4 do not object at all to an official
investigation of the life insurance
1mpanies Of the state The more
complete and searching the lesisla-
tive investigation is the better it wilg
suit me and the better it will be for
the Equitable. We hope the proposed
investigation Of all New York insur-
ance companies will be as exhaustive
as propose to make the investigation
OF the affairs of the Equitable. which
began over month ago by chartered
accountants. No halfhearted investt
cation will restore the confidence Of
I the public in the life insurance bUsi-
ness So far as the Equitable soci-
! ely is concerned 1t is my intention
/ that the policy holders, trustees, new
directors and chairman Of the board
shall know thu exact condition Of its
affairs from top to bottom
| Thousands Alarmed.
In calling the attention Of the legis-
lature to the insurance matter, the
governor said:
The unfortunate scandals recently
made public by the internal dissen-
sions IN the Equitable Life Assurance
society AMI by the comprehensive in
vestigatioH Of It's affairs by the super
intendcnl Of insurance have not with
CUT just cause alarmed thousands who
Aave invested in policies Of life tusur-
anCe and Of the thousands Of uon-resi-
dents who have been taught to respect
the New York companies as safe and
secure.
investments must be restricted,
salaries must he limited to amounts
bearing a closer relation to the cnn-
melcial value If the services rem
de1od. trustees must be held to stricS-
ca account, and the policyhoiders
must BE- given d more effectivo share
in fbc government of the companies.
Il may we'll be that the harsh and ar
5itraIy remedy Of dissolution and re-
cciycrship should be made not only a
penalty for insolvency. but also a
suamar! check on a solvent COM any
when IL becomes irredeemably the
piaythmg Of lawle5s greed. The state
cannot permit the subjects Of it's SUI
peryision 10 exist as licensed prodi-
gals Of other peoples money without
becoming an accomplice to tha Of
fense.'