The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-23
REPORT MADE
OF INVESTIGATORS
Life Insurance Legislative Commit
tees Findings Make Volume
of $40 Pages.
LEGISLATION is SUGGESTED
IRRESPONSIBILITY OF OFFICIAL
POWER CONDEMNED.

= Albany, N. Y, Feb. 22.-The re- =
+ port of the Armstrong insurance +
+ investigating committee was pre- =
= scented in both houses of the leg =
= islatuTe today. 1t was accom-
= panied by eight bills designed to =
= carry into effect in detail the rec =
concentrations Of the committee.
Senator Armstrong made a state y
y ment in which he said that cOun- y
= sci for the committee, Mr.. y
= Hughes, Mr.. McKeen and himself =
had worked upon the bills until y
o'clock this morning and had =
y not then finished their labors. =
He asked leave for the commit y
y tee to submit a supplementary re-
= port next week. There will be a =
= public hearing upon the bills be-
= fore the investigating committee =
= itself on Friday, March 9, in the =
assembly chamber.
In statement made to news =
3 paper men before the presentation ,
of the report, Senator Armstrong y
= said he hoped to have passed be =
y fore April Is the bill which will ?
= defer the annual elections in the +
y mutual companies from April 10 =
to November This, it is believed, =
= probably would nullify all proxies
obtained I'D TO this time by Thorn
y as W. Lawson and the policy
y holders committee of state gov
errors and others, as well as those
= which the management OF the
y companies themselves have been
y gathering through their agents
%%%%%*%&4$%&$%
New York. Feb. 22-The committee
appointed at the last session of the
New York legislature to investigate
life insurance, made its report today.
The report is extremely VOluminous,
on I'd n
braces q long review OF the testimony
taken by the committee. and its recon-
mendations and conclusions as to rem
ediaI legislation. In addition there is
a chapter devoted to the state insur-
ance department, in which the COM
Inittee declares it would seem the su-
Derintendent Of the department has
had ample power TO ascertain the
transactions of insurance companies,
hut the supervision by the department
has not proved a sufficient protection
against extrava gance and maladmin-
istration. Instances are given or re
DOrts made on the affairs or the Mu-
tual Life Insurance company, the New
York Life and the Equitable Life As
surance society. in which nothing was
brought out to show the conditions de-
veloped in the testimony given before
the committee. No substantial ampll-
f1cation of the powers of the depart
1nent seems necessary. according to the
committee, which holds that most of
the evils which have been disclosed
would have been impossible had there
been a vigorous performance of the
duties already laid upon the insurance
department.
Remedial Legislation.
The remedial legislation recommend
ed by the committee provides for the
safeguarding Of the rights of policy
holders in mutual companies IN the
election of directors; recommends thar
stock companies be given authority To
retire their stock and become mutual
companies; that such naturalization
shall not be compulsory. A recon-
mendation is made limiting new busi-
ness to $3.50, 6G0, GOO a year. Lobbying Is
condemned; the committee favors the
prohibition of contributions by insur-
auce companies for political purposes
The wisdom of economical manage
unent is urged, but the committee does
rot deem II advisable that the legisia-
ture should attempt to prescribe the
expenditures Of insurance companies.
Further recommendations are made
on the valuation of policies, surrender
values, surplus, forms of policies and
publicity OF all facts pertaining to q
COmpauy'S business. An amendment &c
the penal code is recommended to pro-
vide that the person receiving a rebate
should be equally guilty with the one
who gives 1t.
In its detailed report Of the investi-
cation. the committee says the acts o.
the Mutual Life Insurance company
should be thoroughly examined in or
der that the extent to which moneys
have been nlisapplied and the RESPONSE
bility for such may be shown and de-
termined.
Concerning the New York Life com
pany the committee found that it!
transactions with Andrew Hamilton
showed extraordinary abuses and tina
the statement sent from Paris by Ham
uton was without suitable specifca
lions.
Syndicate Operations.
In taking I'D the Equitable Life As
surance society the committee tells o.
the discussions last February Which
resulted in the reorganization of tina
society and in the disclosures which
brought about this grave inquiry. Th'
syndicate operations of the Equitable
and James H. Hyde and the relations
between the society and Kuhn, Loci
& Co, as brought out in testimony be
fore the committee are referred to a.
is the 500, 600 600 Union Pacific pool un
der which the management of Z. II
Hartman, Jacob II. Schiff and james
StilIman. Participation in this pool b!
the Equitable. the committee holds
was clearly an improper transaction
for an insurance company.
Former Governor Odel1s shipbuildint
suit against the Mercantile Trust com
pany is treated Of, the committee hold
ing that the circumstance of the intro
duction of the Amber bill might hav
been sufficient TO induce the settlement
of the suit through fear that proceed
ings inimicaI to its interests might b
taken if those who could initiate then
were not appeared The committee re
mort contains a full statement Of loan
made TO Mr. Hartman and TO Kuhn
Loeb & Co. by the Equitable.
Continued on Page 8.