The Cairo bulletin., 1905-12-22

STATE EXAMINERS
LEARNED NOTHING
OF the Inside Nanipulations in
life Companies
DETAIL THEIR METHOD
or EXAMINATIONS WHICH WERE
MERELY SUPERFICIAL AT
BEST.
ASCERTaINI D0>LY SOLVENCY
Sales, Commissions, Salaries
Paid Officers or System
Of Loanng.

New ork, Dec. 2l,-Francis Hen
bricks superintendent Of Insurance OF
New York state was the chief wiz
ne.s before the insurance investiga-
tors and testified that the examina-
tions of insurance companies by his
department are made to ascertain cnly
the solVency of compan es and that no
investigation is made into the eXtray-
agance of the management of com
pany or into salaries paid officers,
so long as the company is able to pay
fits obligations. No investigation is
made into the commissions paid
agents the system of | aiming on the
premiums, the advancing CT loans 10
agents. or loans to directors. Employ.
ment q kins people OF officers in high
positions is not inquired nto. This
has long been The custom of the de
partment, Hendricks said, and he &c
cided further that he personally knew
lille or nothing about the various ex-
animal ons made as they were en-
trusted to Isaac Vanderpoel the chier
examiner Of the department.
While Mr.. Hendricks memory failed
him as to any legislation which he had
suggested as a remedy 10 any defects
"a he Laws szssrarpinG. assurance. cou.
panie3 he stated that no measure that
he had ever presented had ever been
opposed in either house OF the legis.
IL In bt
passed against his recommendation
Hendricks said that his department
spent last year about $l37 900 and re-
ceiyed I'M fees and payments $2S7,72G
which was paid into the state treas
nry
To make examinations that would
bring ont .uch information as has
been gathered by the legislative com
mittee, the witness said, would re
quire ten more examiners and an ad-
ditonal appropriation of from $50,
600 to 100000. He thought, however,
he could get he appropriation if he
asked fot it,
Hendricks knew nothing of the large
legal expenses of the New York Life
Equitable and Mutual Life, as they
had never been called to his attention
He had never heard of the wash"
sales of securities nor the year end
loans of the Equitable TO clerks OF
Kuhn, Loeb a. Co., nor had these ever
been brought to his attention.
I:aac Vanderpoel, chief examiner or
insurance department, followed Hen
bricks. and detailed what was done at
an examination. He said that prac'ic-
ally II was a comparison Of a com
pany's sworn repcrt with the books.
lie had never known of wash sales nor
of year end loans; he had never known
The salary Of President McCurrdy of
the Mutual, nor had he ever inquired
what is was. Salaries are in one
lump sum in the salary account and
he had never taken steps TO find out
If these monies had been paid for thar
purpose. The large expenditures in
the supply department had never eX-
cited his curiosity. although the vouch-
ers had been looked at random These
were stamped with the approval of the
expenditure committee and he had
never questioned their legitimacy of
purpose Vouchers for S25.000 pay
ments TO the chairman Of the expenH- !
ture committee he had seen but never
inquired into. Vanderpoel said all |
examinations were conducted in this /
manner. that he never tried to 90
hack Of a voucher or book entry /
This was a eultom which had prevail /
ed ever since he had been in the de-
partment.