The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-08-14
INSURANCE QUEST
WILL Be 1H !!
WESTERN STATES PROBING THE
NEW YORK COMPANIES.
At Request Of New York Life, That
Company Will Be Handled First,
Actuaries Will Report as to Expenses
Handling Of Assets, and Proper Dis
tribution of Surplus.

Thomas D. O'Brien, insurance COM
missioner, returned today from New
York city, accompanied by 4. }. Hartl-
gan, acUuary for the Minnesota de-
partment MIR. O'Brien says that SIX
states will enter into an examination
OF the New York Life insurance COM
pany, beginning Oct. l. These states
are Minnesota, Wisconsin,, Tennessee,
Kentucky, Nebraska and Louisiana. ,
The commissioners OF these states met
last Thursday at the Manhattan in
New York. With them met the legls-
lative committee headed by Senator
Armstrong, which is interested III IN
vestlgating the big three The fol-
LOWING day, Friday, on invitation OF
President Mccall, they met at the New
York Life offices. MIR. Mccall stated
he would be glad to have the commits
sioners examine his company before
the examinations made OF other COM
panies. He requested, however, that
The legislative examination now ready
to be begin, be allowed to reach COM
pletion before the states entered upon
their investigation. The commission
ers met later and considered this re-
quest, with result that it was agreed
the examination OF the New York Lite
should be the first, and begin Oct. l.
The insurance commissioners named
Actuaries s. H. Wolfe of New York
and r. E. Forester OF the Pennsylvania
insurance department., as authorized
representatives to make all prelimin-
airy arrangements for the examination.
In view OF the fact that the Mutual
Life of New York is now being thoroly
examined by the New York depart
ment, and that an examination OF the
Equitable is now reaching completion
under direction Of President Morton
the commissioners decided not to make
any arrangements at present to inves-
tigate them. 1t is probable that the
state officers will simply verify re-
ports Of Investigations Of these last
two mentioned companies.
In explaining the objects the com.
missioners have in view in examining
these New York companies, Commits
sioner O'Brien said today:
."The state departments intend to
examine the methods and system used
by these big companies, having espe.
cially in view a demonstration of
whether annual dividends are desirable
in future.
Disclosures, particularly as to thu
Equitable, have resulted in a condition
| Of unrest among the policy holders of
all the large New York life insurance
| companies, and for this reason a thorc
investigation is necessary.
!lSC, Cue lnNesC1gaIlOn SnOulQ eS
tablish the financial responsibility OF
the companies; the conviction that we
| have that they are absolutely solvent
should be demonstrated beyond right
| to criticize this point.
'Second, the management of the
companies should be made public. They
claim to be mutual. Are the policy
holders treated as holders of contracts
with a mutual life insurance company
should be? Are the expenses of the
| companies just what they should be
Or, is it true as rumored that asset!
are being used in speculations
HThird, the examinations should
demonstrate what changes in insuranc,
laws are desirable to hereafter pre-
vent such troubles as may be disclosed
now to exist. And important among
these, will be the decision of whethe
a law demanding annual distribution
of surplus to policy holders should b.
enacted.'