Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-09-07
Will Nov Be Dug out
Regarding Insurance..
New York Legislative Committee
Begins Investigation.
Numerous Witnesses Begin Their Stories OF
Their Companies Methods

counsel for the Equitable Life Assur-
ance Society before the joint leglsia-
tive committee, today, when that COM
mittea began its investigation of life
insurance conditions in this state. The
hearing was in the chamber of the
hoard Of aldermen in City hall. The
,ommittpe was composed Of Senators
William w. Armstrong chairman;
Frank J. Tully and Daniel J. Riordan,
and Assemblymen James T. Rogers,
Robert Lynn Cox, William w. Temple:
Ezra =. Prentice, secretary, and John
McKeown.
Before the hearing opened Mr.. Black
said:
"Wc have nothing to conceal AMI no
one 10 protect. We seek no Legal
technicalitics to evade answering any
questions. We will aid in every way
the progress Of the inquiry"
Paul y. Cravath WAS present in the
interests of Thomas F. Ryan and w.
&. CULVER was present as counsel for
James II. Hyde.
Senator Armstrong said that the OBJ
ject of the committee was not to in
stitutr criminal proceedings or to pun
ish anybody for wrong doing, but to
get at all Of the salient features of the
modern insurance business and this
suggested needful legislation to the
next Legislature. He added AS most
insurance companies are mutual in
theory, We shall endeavor to pass
law that will compel them to be mu
tual i'm fact. A large number of the
present insurance laws are good. 1t
will be our aim to make them better.
Several of the officers Of the New
Z. In " hO been
yubloenaed. appeared before the com
'nittcc and also several officers who
were not summoned With them came
the company's books. covering the bus
mess Of the past ten years. Vice Pres
idcnt Perkins said that no legal counsel
WIS present to represent the company
and that none was needed.
James NJ. Beck repr scented the Mu
tual Life Insurance Co, of New York.
Lawyers Frdsk Y. Lawrence and
Frank IT, Plitt the Mutual Reserve
Ifo ms Co.. and Richard V. Linda
bury tho Metropolitan life Insurance
co.
In opening the hearing counsel for
.he committee stated that the first sub
lccf yikiin 4rfty tcr,il1 BE ff.N POSITION Of
the policyholders in the administration
If thr companies. He quoted the evil
dcnce .lnce given by Henry r. Hyde.
founder of the Equitable Society. 20
show the position of the Equitable
Stockholders.
Robert \. Grannss. first vice presi-
dent of the Mutual i.if" ms. Co.. WAS
then called as tn" first witness. He
testified that he WAS Il director of the
United States Mortgage and Trust CO..
md of the LAWYERS Trust Co.
Mr.. Hughes. counsel Tor the commit
tee quoted from the charters Of the Mu-
tual. The clauses giving rights to thu
poliCvholdcrs in the election of officers
and other administrative rights and
had the bylaws of the company iden
titled and placed on tn" record.
Vice President Granniss stated that
there had been only one case in the last
i've or six years Of votes cast by proxy
IN the Mutual Life Insurance Cos.
election. He estimated that President
Richard a. Mct'urdy of the Mutual
and himself held about . 600 proxies.
Mr. Hughes asked VIII, was general
the reply that this position was filed
Ivy Robert II. McCurdy. son of the pres
il"nt of the company.
Walter G.. Oakman. himself II trustee of
the Mutual. who testified that he had
served as an iuspcCtor of tho elections il,
question. was asked hov he knew that
tn, electors wcr" genuine polio holdsrS
In reply he Sud that there WAS no exam
Iultion Of credentials. no presentation Of
policies or any other way of certifying
IN" right OF prospective voter to cas-;
his ballot Mr.. Oakman testified that hc
relied on officers of the company. who
he said. We're always present during tn.
two-nnur election period to tel him
whether electors presenting themselves
were entitled to vote
George f.. Ginning. president Of tho
United States Mortgage Trust Co.. who
had acted rs a Mutual election inspector
s'id that IN all cases the inspectors ac
copied the statements of voters as t.
their eligibility.
The amounts of salaries paid to Off
Gers "t the New York Life Insurance Co
w"rc gwen ny John c. Mccall. secretary
son at President John A. Mccall! of thu
NV York Life. that the day after h,
Eradnat'd from Harvard, in 1922; he wen
g work Tor the New York Life INSURANCE
e" II i salary Of $500 a year assist
ant secretary. and that he now received
S''n I'll" presidents salary, he said
was SlN.NN The salaries of the first vic,
M sldcn;s were s25.Ho. $4,000 and A0.GTl
and Of the three second vice presidents
Thor" We're MIR. Mccall said about Is.
proxies in the office of his company mad
out in the names Of the president an,
vice, presidents.
Edward Rhodes appeared for the Mu
tuil Benefit Life Insurance Co. of Ncv
Jersey. which does business in New York
II" claimed that the salaries paid to tn
officers of the New jersey company wer
very low, hut the figures were NO. stated
The Metropolitan Lie insurance CO. wa
represented among the witnesses by Vic
President Haley F'iskC. and ny Fredercl
tIcckCr controller.
The latter said that in an election o
1901. ont Of N9Sn votes cast all eXcep
three four were voted by proxy Mi
Fiskc said that the presidents salary wa
SlH,Na. his own S1a0N and the lesser off
GERS from So go down
Charles W. Camp of the Mutual Reserv
Lite Insurance Co. WAS the last witneS
examined today.