The daily morning journal and courier., 1906-02-23
NATURALIZATION TIE
 CHIEF RECOMMENDATION
SYNOPSIS OF THE REPORT OF THE ARMSTRONG COM
 MITTEE

Fohcyhoiders Should Elect Directors
 Regulations Urged to Prevent rTr-
 wise Investments and Imnro,,a.
 dicate operations-WouId Limit New
 business to $15O,OOO, O,O0O--Prohibitiop
 Of Campaign Contributions--Amen
 ment to Penal Code Relative to Re-
 bates-Payment of s2O,ooo to Depew
 onWarranted--COmpanies solvent.
 New York, Feb. 22.-The comrittaa appointed at the last session of the New York legislature to investigate life in- suranee made its report to-day. The report IS extremely voiuminous con talning S19 printed pages. It embraces a long review of the testimony takan oy the committee, and it's recommend- atlons and conclusions as to remedial legislation In addition there is a chan ter devoted to the state insurance da- partment in which the committee ds- clares that it would seem that the su- perintendent of the department has had ample power to ascertain the transac- lions of insurance companies. but +ha+ the supervision by the department has not proved sufficient protectinn against extravaganza and maladminis- tratlon. Instances are given of renorts made on the affairs of the Mutual I,ifa Insurance company, the New York I,ife insurance company and the Equitable Life Assurance society, in which noth- Ing was brought out to show the condi- tons developed in the testimony given before the committee.
 No substantial amplifcation of ths powers of the department seems neces- sary, according to the committee. which holds that most of the evils which have been disclosed by the investigatios, would have been impossible and there been vigorous performance of the du- ties already laid upon the insurance de- partment
 The remedial legislation recommended by the committee provides for the safe- guarding of the rights of policyholders in mutual companies in the election of directors; recommends that stock corr panies be given authority to retire their stock and become mutual companies put that such naturalization shall not pc compulsory; various regulations are urged to prevent unwise investments and Improper syndicate operations; the sale of prohibited securities within five years is advocated; a recommendation for the limiting of new business to s150 VVV,VoO a year is made; the committee tavors the prohibition of contributions by insurance companies for political purposes; lobbying is condemned and the wisdom of economical management is urged, but the committee does not deem it advisable that the legislature should attempt to prescribe the expen- ditures 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 company's business. An amendment to 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 it's detailed report of the investi gatton of the companies thescommittee says the accounts of the Mutual Life Insurance company should be thorough ly examined in order that the extent to which moneys have been misapplied and the responsibility for any nlisap- plication which may be shown may be determined.
 Concerning the New York Life Insur-
 (Continued on Third Page.l