Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-04-01
UPHEAVAL BRINGS REFORM
Result Of the New York Legislatures In
sursnoe Investigation.
PUBLIC AND COMPANIES ALIKE BENEFIT
Remedial Legislation Proposed aud
It's Likely Erect on the Future
of the Life Insurance
Business.

Early last year when the Equitable Life
Assurance Society had but just started in
its family quarrel, its board of directors
appointed a committee of its members t.
ascertain the truth or falsity of the charges
which were being made and published To
the detriment of the company. This COM
mittee made an investigation along certain
lines and its report the Prick report)
made some severe structures on conditions
as It found them.
SO many statements and mis-statements
appeared in the magazines and in the daily
press, relating to the management of the
large life insurance companies that the
state of New York, through a special ses-
sion of its legislature. In the summer OF
1906, decided to enter the field of investlga-
ton. The result was the appointment OF
the legislative COMMITTEES with senatorArm.
strong as chairman; this committee was
charged with the investigation of the in
surance companies Of the state, and di.
rected TO make its report at the session OF
the legislature which would convene Janu-
airy l. 1906.
Ten Volumes Of Testimony.
| After about six months Of arduous work
this committee completed its labors and
on February % made public its report OF
some 800 printed pages. The committee
! investigated by examination Of witnesses
and documents fifteen New York life in
surance companies; also one New Jersey
| company. Testimony was taken which will
fill at least ten large volumes, the ex-
animation Of witnesses being conducted by
Mr.. Charles r. Hughes one of the most
astute lawyers in this country. The evil
| dence, while II is true that 1t was but
| ex parte, was of a startling nature, as II
came to the public through the daily press
This committees work, while inquisitional
/ to a certain extent, was conscientiously
and thoroughly performed.
! other examinations have been made in
| the last year of New York companies
some by commissioners of various states
! others by the companies themselves; these
! examinations, however have differed from
the legislative investigation in that they
| entered less largely into topics, but went
more particularly into the exact finaRcial
transactions and the condition Of the com.
| panies examined.
Results of the Inquiry.
One of the first results Of these various
Investigations, apparently made necessary
| by faulty management in some companies
was at the start TO alarm the policy
| holder. Such a wave of distrust swept
over the country that had not the times
been exceedingly prosperous a panic might
easily have been precipitated. Men, whose
names had been always held in high
honor and were considered above reproach
because of their connection with the in
| surance scandal, were constantly reviled
and treated to all manner of harsh cpl
thets Popular idols were indeed cast
down, never to be raised again TO receive
the public homage Many policy holders
went so far as TO insanely discontinue
their insurance, canceling their policies, re-
CARELESS of the fact that the solvency OF
companies was hardly questioned.
| The demoralizing effect in the early stages
OF investigation was felt, not only by tho
| insured, but by the agent, the company and
the public as well. Thousands of agents
] small army of successful solicitors
found themselves suddenly confronted with
peculiar condition; for quite a season
thes men. who had been tried in the bust