The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-09-07
POLICY HOLDERS
VOTE BY PROXY
Loose Election Methods of Insurance
Companies.
ENORMOUS SALARIES PAID
INVESTIGATION BY NEW YORK
LEGISLATURE.
ENORMOUS SALARIES PAID

Anew YORK, Sept. e.-Former Governor
IN Frank Black of this state appeared
as counsel for the Equitable Life
Assurance society before the Joint legis-
lative committee today when the commit
lee commenced its investigation of lie
Insurance conditions in this state. The
committee is composed Of Senators VII
liam W. Armstrong, chairman; Frank J.
fully and Daniel j. Riordan, and Assem-
blymen James T. Rogers, Robert lynn
Cox, William Wemple. Ezra \. Prentice,
secretary, and John McKeon.
Before the hearing opened Mr.. Black
said:
We have nothing to conceal and no
one 10 protect We seek no legal tech
nicalities 10 evade answering any ques-
lions, We VIII aid in every way the
progress Of the inquiry"
Paul ID. Crayath was present IN the
interests of Thomas +. Ryan and Thomas
e. CULVER, counsel for j. II. Hyde.
Object of investigation.
Senator Armstrong. in outlining the
purpose OF the investigation. said:
Our object will not be 10 punish any
body for WTOngdOing in the past, but 70
get at al of the salient features of the
modern Insurance business so as TO sug-
sest 10 the next legislature an adequate
law that will not only protect the policy
holders I'm all life insurance companies
but will likewise protect the insurance
companies management from abuse al
the hands of designing persons. As most
insurance companies are mutual IN the
ofN. we shall endeaVOr 10 pass a law that
viii compel them To be mutual in fact.
Then the Officers Of the company VIII
always be working for the interests of
the policy holders. instead of working for
the interests of themselves by the fOrma-
tion of subsidiary companies TO divide the
profits OF the main company. A large
Ion
are good. Il Will be our aim TO make
the. better
Many Witnesses.
Several of the members Of the New
FORK Life Insurance company who had
been subDOenaed appeared before the
committee, as did several officers who
were not summoned. With them came
lhe-company's books covering the bust
ness of the past ten years. The officers
present We're John A. Mccall. president;
George W. Perkins +. 4. Buckner, ID. p.
Kingsley. vice presidents; Rufus ".
w eekS, chief actuary. f.. r Perkins,
second vice president; John -. Mccall,
secretary; T.. d, Randolph, treasurer, and
many Junior officers.
Vice President Perkins said that no
legal counsel was present 10 represent
me company and that none was needed.
James NJ. Beck represented the Mutual
Lille Insurance company of New York,
Lawyers Frank Lawrence and Frank II
company. and Richard Y. Lindaberry the
metropolitan Life Insurance company.
Position of Policy Holders.
I'm the opening of the hearing. counsel
Tor the committee stated mat the first
subject taken uD would be the position
OF the policy holders in the administra-
Ton OF the companies. He quoted the
evidence once given by Henry b. HYDE
FOUNDER OF the Equitable society. 10 show
the positions OF the Equitable stOckhold-
Robert \ Grannis. first vice president
or the Mutual Life Insurance company,
was called as the first witness. He tes-
Ilted that he was "A director of the
United States Mortgage & Trust COM
pany and of the Lawyers Trust COM
pany.
Mr.. Hughes. counsel for the committee
quoted from the charter of the Mutual
the clauses giving rights 10 che policy
holders in the election of Officers and
other administrative rights and had the
bylaws Of the company Identified and
placed ON the record.
vice President Grannis testified that
there had been only one ease i'm the Iast
i've or six years of votes cast by proxy
i'm the Mutual Life Insurance COMPANY
elections. He estimated that President
Richard A. McCurdy of the Mutual and
himself held about 10000 proxies Mr..
Hughes asked who was general manager
OF the Mutual and received the reply that
this position was filled by Robert =.
McCurdy, son of the president of the
Walter c. Oakman, himself a trustee of
the Mutual who testified that he had
served as an inspector of the elections i'm
question, was asked how he knew that the
electors We're genuine policy holders In
reply he said that there was no eXami-
nation of credentials, no presentation OF
policies or any other way of certifying
the right Of prospective voter To cast