Perth Amboy evening news., 1906-07-18
is
ON THE STAND
Investigating Committee Met in
Newark Yesterday and Has
Adjourned Until Thursday.

II a fAH II. .t AFH EM L
NEWARK, July 1S:=Shifted from
: Trenton to Chancery Chambers In
the Prudential Life building in this
+, city, the session of the legislative in
/ surance investigating committee did
not develop especially sensational
features yesterday, nor did the SEES
sion excite much public interest.
Only a few persons attended 1t except
those directly engaged and the wit
nesses called. There was a time
when it looked as though William e.
COrbin, chief counsel to the commit
tee, was on the trail of a scandal af-
fecting both the Prudential Life and
the Fidelity Trust Company, but
nothing came of it. David P. Flack-
Ter, expert astuary for the State De-
partment of Banking and Insurance,
a on the witness stand. 1t had
been shown chat during the last six
years the cost of examining the Pru-
Dental Life and the Mutual Benefit
had been $4,000 for the former and
81 900 for the latter for each exam
ination.
did you pay any of this money to
any state officer OIL to any person
other than those who assisted you in
the examination?" inquired Mr.. Cor
bin.
mo, sir" said Flackler emphatic
ally.
why did you suggest to the State
Insurance Commissioner that the in
surance companies should be COM
PEELED to reduce commissions to
agents and limit the salaries OF offic-
ers?"
Because of the way expenses were
climbing in the insurance companies
owing to the strife for business"
Il see by one of your reports be-
fore us that you recommended that
when the Fidelity Trust Company
and the Prudential Insurance Com
pany were examined again that the
examinations be made simultaneous
" SO as to prevent any interchange
of securities reported as assets" said
Senator Minturn. "Now, how came
YOU to make that recommendation"
Because the two companies re-
ported among their assets consider
able blocks of the same issues OF
bonds Flackler replied.
DO you mean they were the iden-
tical bonds reported by both compan-
ies?" persisted the senator.
With tense interest the auditors
awaited the reply of the actuary,
seemingly expecting he would throw
a bomb into the Prudential! and the
big financial company which 1t had
nurtured. Several of those who rev.
ell in scandal expressed disappoint-
ment when the actuary replied:
mo, not as far as can learn. but
simply bonds of the same issue.
Flackler said the excessive Conn
missions and salaries exposed by the
Armstrong committee in New York
had been exceedingly injurious to
The financial interests of the insur-
ance companies and the business IN
general. He did not think, however,
that New Jersey insurance companies
had suffered as much as some others.
Toward the close of the session
the committee put Uzal H. McCarter,
president of the Fidelity Trust Com
pany, of this city, on the rack. he
admitted that in event or frlctloh
among the Prudential Life stockhold-
ers the Fidelity Trust would be able
to control the company.
"The Fidelity Trust already owns
nearly a controlling interest, ne
said. .,,
That the scope of the INJURY Will
| include not only insurance companies
but financial companies afiliated
with them was shown by the calling
of Mr., McCarter.
Ernest j.. Heppenheimer, OF the
Colonial Life of Jersey City, said the
I. president, first vice president and d.
rectors of that company received no
fees or salaries. He himself got
$4,000, the secretary $4,000 and the
assistant secretary $4,000. Aside
from these no salaries running up in
to large amounts were paid. me
Metropolitan, John Hancock n Pru-
Dental were, he said, the only COM
p~etitors O. the Colonial in the local
industrial field. He denied his COM
pany eve had contributed as
as one cent for compaign expenses or
lobbying.
The hearing will be resumed on
| UNl,,r11ny HL tHA.