The Garland globe. [volume] (Garland, Utah) 1906-191?, 1906-03-03
INVESTIGATORS
Make REPORT
New York Legislative CON-
mittee ROaStS the Big
Insurance Companies.
Legislation Suggested and Enactment
Of Laws Recommended to Control
Operations Of Companies and
Curb Officials.

New York.-The committee ap.
pointed at the last session of the New
York legislature to investigate life in.
surance made its report Thursday.
The report is extremely voluminous,
extending to $40 printed pages. 1t EN-.
braces long review of the testimony
taken by the committee, and It's rec
concentrations and conclusions as to
remedial legislation. In addition
there is a chapter devoted to the state
insurance department, in which the
committee declares it would seem the
superintendent of the department has
had ample power to ascertain the
transactions of insurance companies,
but the supervision by the department
has not proved sufficient protection
against extravaganza and maladmin.
istration. Instances are given OF re-
ports made on the affairs of 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 ampli.
fcation Of the powers of the depart
ment seems necessary, according to
the committee, which holds that most
Of the evils which have been dis.
closed would have been impossible
had there been vigorous perform.
ance of the duties already laid upon
the insurance department.
The remedial legislation recon.
mended by the committee provides for
the safeguarding OF the rights OF
policy holders in mutual companies in
the election Of directors; recommends
that stock companies be given au.
thortty to retire their stock and be.
come mutual companies in the election
OF directors; recommends that stock
companies be given authority to re-
tire their stock and become mutual
companies; that such naturalization
shall not be compulsory A recon.
mendation is made limiting new bust.
ness to $150,000,000 a year. Lobbying
Is condemned; the committee favors
the prohibition OF contributions by in.
surance companies for political pur.
poses. The wisdom of economical
management is urged, but the commit.
tee does not deem 1t advisable that
the legislature should attempt to pre-
scribe the expenditures of insurance
companies.
Further recommendation are made
on the valuation of policies, surren-
der values, surplus, forms of policies,
and publicity Of all facts pertaining
to a company's business. An amend.
ment to the penal code Is recommend
ed to provide that the person receiv-
ing rebate should be equally guilty
with the one who gives 1t.
In its detailed report Of the investi.
cation, the committee says the acts of
the Mutual Life Insurance company
should be thoroughly examined in or.
der that the extent to which moneys
have been misapplied and the respon-
sibility for such may be shown and de-
termined.
Concerning the New York Like com.
pany the committee found that its
transactions with Andrew Hamilton
showed extraordinary abuses and that
tho statement sent from Paris by
Hamilton was without suitable speci.
fications.
In taking up the Equitable Life As.
surance society the committee tells OF
the discussions last February which
resulted In the reorganization of that
society and In the disclosures which |
brought about this grave inquiry. |
The syndicate operations OF the |
Equitable and James II. Hyde and the |
relations between the society and
Kuhn, Loeb & Co., as brought out in |
testimony before the committee are
referred to as is the $4,000 900 Union |
Pacific pool under the manage |
ment of e, II. Hartman, Jacob II. |
Schiff and James Stillman. Participa-
lion In this pool by the Equitable, the |
holds, was clearly an i'm |
proper transaction for an insurance