The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1906-03-03
brave Abuses Have Existed hut Sol
vency OF DIG Companies HAS NOT
Keen Asfecied-New York Gasur-
snce Commissioners Offce Scored
Tor Lax Performance OF Dulles,

voteo 20 the state insurance depart
ment. in which the committee de.
clares it would seem the spuerintend-
emit of the department had had ample
power to ascertain the transactions of
the insurance copmanies, but the su-
perrvision by the department. has not
proved sufficient protection against
extravagance and maladministration.
Instances are given of reports made
on the affairs of the Mutual Life, New
York Life and Equitable Life compa-
MES, In which nothing was brought
out to show the conditions developed
in the testimony given before the COM
mittee.
No substantial amplicfiation of the
powers of the department seems neoes-
sary, according to the committee,
which holds that most Of the evils
which have been disclosed would have
been impossible had there been Wig
orous. performance of the, duties al
ready laid upon the insurance depart
ment.
Legislation Recommends
The remedial legislation recon-
mended by the committee provides for
the safeguarding of the rights of the
policy holders in mutual companies in
the election of directors; recommends
that stock copmanies be given author
ity to retire their stock and become
mutual companies; that such mutual
ization shall not be compulsory.
A recommendation is made limiting
new business to $3.50, 900, 900 a year.
Lobbying is condemned. The COM
mittee favors the prohibition Of con-
tributions by insurance companies for
political purposes.
The wisdom of economical manage
ment is urged, but the committee does
not deem it advisable that the legisla-
ture should attempt to prescribe the
expenditures of insurance companies.
Fruther recommendations are made
on the valuation of policies, surrender
value, surplus, forms of policies and
publicity of all facts pertaining to a
company's business.
An amendment to the penal code is
recommended to provide that the per-
son receiving rebate should be equal
" guilty with the one who gives 1t.
wants Accounts Examined.
In it's detailed report of the investi-
CATION of the committee says the &C.
counts Of the Mutual Life Insurance
Company should be thoroughly exam
ined in order that the extent to which
moneys have been Incorporated
and the responsibility for such may be
shown and determined.
Concerning the New York Life In
surance company, the committee found
that its transactions with Andrew
Hamilton showed extraordinary abuses
and that the statement sent from Paris
by Hamilton was without suitable
specifications.
In taking up the Equitable Life As.
surance Society, the committee tells of
the dissensions last February, which
resulted in the reorganization of the
society, and in the disclosures which
brought about this grave inquiry.
The syndicate operations OF the
Equitable and James 81. Hyde, and the
relations between the society and
Kuhn, Loeb & Co., as brought out in
the testimony before the committee.
are referred to, as is the $50, 600, 600
Union Pacific pool under the manage
ment of Hartman. Schif and Still
man. Participation in this pool by the
Equitable, the committee holds. was
clearly an improper transaction for an
Insurance company.
The payment Of $40, 900 a year to
Senator Depew is considered by the
committee as an unwarranted expend-
iture.
The committee finds that, in spite of
the irregularities shown, there is no
REASON to question the solvency OF the
Mutual Life, the New York Life. nor
the EQUITABLE Life companies.
..Nothing disclosed by the investi-
oation.'' says the report, deserves
more seriousa attention than theeys-
tomatic. efforts Of the large insurance
companies to control large part OF
the legislation Of the state.
sThey have been organized into
an offensive and defensive alliance to
procure or to prevent the passage
81 laws affecting not only insurance
INIT great variety Of important in
tereets to which, through Subsidiary
comuanies, or through tho contrib
tnions Of their officers, they have be-
como related.
: 1srheir operations have extended