New-York tribune., 1906-07-21
INQUIRY OFF FOR a TINE
WUTTAL BENEFIT PROBED
president Freylinghuysen and Amsi
Dodd Testify Before Committee.

The Senate Insurance Investigation Committee
adjourned yesterday afternoon at the call OF the
chair. That means that the taking OF evidence Is
about over, and that, as Chairman Hilley
pressed Il. the members get rest through
August In other words, IL viii be September
before there are any more public hearings. The
last hearing yesterday was in the Chancery
Chambers in Newark
At the close OF the hearing. Mr. Corbin, the
counsel. said to the Tribune representative that
The Tribune the only paper he had that
had caught 20 his proposition OF Thursday
and published it. He continued:
am very much in earnest in the belief that all
other phases of the insurance question In New
Jersey subordinate the adoption OF plan
icyhOiders more liberal treatment and established
by law, 50 that they cannot be deprived of il. AS
and most Of his associates favor such a plan OF
sime. at least one-half would Belong G exclusively
20 the score OF stockholders, should they choose
proceeds. I do not believe any of the present
shareholders contemplate any such action and yet
that some Of the shareholders became so clamorous
actually being taken 10 increase the capital stock
from 100000 TO S5.Ooo0oO in order that another
enormous watermelon might he cut by few peo-
pie. Nothing but legal proceedings stopped it.
In my judgment, mutual arrangement between
'1he company and the committee, whereby legal
enactment. The Tribune stated this morning,
could be effected. would benefit the company, its
polieyhOlders. and stop all the current clamor
against the Prudential and charges of attempted
whitewash against the committee 1t would re-
snOve one Of the unfortunate features Of politics in
our state and do good all around While believe
we VIII show a number OF excellent things accom-
5Dlished by the investigation. nothing compare
with the plan the committee. for it was not mine
bring the proposed plan about. / hope l shall nave
1ne support OF the press and the people IN my aim
sts inning at the last day of the session Frederick
Frey ylngnuysen president Of the comPany was fne
SdIi S2rnlns questions, the testimony the company
hnghuysen said the company was sixty lone years
Old Every policyholder had a vote and there vas
never been any contests for the election Of officers
redIy pledged to protect and advance the interests
OF the polcyholders- He told the methods of
business anq remarked that In all It's history the
company had never lost cent on any loan 10 had
1nde~ ne Mutu4 never conulDuteo 10 campaign
expended only s7O7 legislative expenses of
ever done and the entire board had to ''5 pass on
any bonds before they were purchased The sal
aries ranged from S25000 year, given the presi-
dent 70 small sums paid minor employees While
there were tremendous gains. The agents, he
,Ihousnt, received moderate commissions much
losses were very low only about per cent on the
He ala not seea it USE ens3o az r1Se agnd some
others who had testified as 20 methods Of manage
dend plan was criticised the ground that it paid
II was better 10 pay dividends annually than
10 pay them az al. He thought officers should
never have any interest in the purchase or sale Of
securities. and that the violation of such a plan
should be made criminal.
AMI Dodd. eighty-four years old. who had been
connected with the company since 1868. was the
next witness. He proved of the most interest
ing witnesses the committee has heard. He had
succeeded the late Justice Bradley arthmetician
Of the company in 1863. and had been president of
the Mutual for more than twenty years He knew
every particular Of the insurance business. He
believed in conservatism, and deprecated many of
the modern methods. He is now general counsel
Of the institution The great race Of the big COM
zanies for leadership had been bad thing. Agents
were often bought from rival companies, and the
EXPENSES of every company had been lInduIy in
creased He considered publicity the hest cure for
All insurance evils.
What do you mean by publcity?' asked Mr..
Anything that Will tear company inside out"
was Mr. Dodd'E answer.
:, he considered deferred dividend and interest
x nd other insurance plans simply species Of gam
bling He did not believe insurance companies such
great humane concerns as they were often adver-
4ised.
L Fl. McCarter. president Of the Fidelity Trust
Company, the last witness. When the
stand Tuesday he said his company had never
ceived bonus in stock He wished to correct that
statement. There had been three instances when
bonus had been received. All were in connection
with securities now controlled by the Public Ser
vice CORPORATION