New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-27
DOMINION NOTES.
Insurance Revelations StartLe Cana
dianS-YeLIo5C Dog Funds There.


Ottawa. March 25 CspeclaD.-Ths royal commits
sion appointed to inquire into insurance conditions
in Canada has hardly more than begun its sitttnEs
but the evidence far taken is OF character to
create considerable apprehension among the Cana
dian poHcyholders. So far only officials OF the In
surance Department. whose duty It Is TO inspect
ana watch the operations OF the companies, have
been examined, and revelations have been made
, which would not have been believed only a few
weeks ago by thousands OF Canadians. William
Fitzgerald. Superintendent OF the Department OF
Insurance made the general complaint that under
the present insurance act his powers were restrict
ed and he did not have the machinery necessary to
enforce many Of the provisions OF the law He said
that the act should be amended in a manner 70
provide penalties for noncompliance with its pro-
visions. Certain insurance companies he said had
refused 10 give him particulars as to salarfes Of
directors and officials asked for by the government
IN preparation for the investigation. Their reason
70 compel them to give the information. He con-
tenn ~ n5ras manner the assessment sys-
license fraternaI societies as insurance companies
The most interesting facts were brought out by
Mr.. Blackader, the actuary OF the Insurance De-
partment who also complained OF the lack OF
power OF the department TO enforce its demands
He said that there were occasions on which q
complete inspection Of companies was not made
before the blue books were issued In the last If
teen years this had occurred in about dozen cases
Inc sun LIE Company, he said. had in 1904
":itten on in stocks and bonds more than 10000
done the assets were what they had been before
STOCK nao also been sold TO some OF the directors
pany.s books. Mr. BlaCkader admitted that the
bat E ad OIhsr large insurance companies kept
Is not known 70 the public. When buying large
bonus These, although vaIUeiess at frst and cost
ing Ine companies nothing. attain time goes on
[iGns'aeIaoIe value They are not included in the
Irs assets Of the companies, but form in them
brought out that one company paid as birb az a.
Der cent to obtain ne" business.
that the limit Of investigated that the aGS soT Is
S0CapSn1es outside Of the Dominion is frequently
poWerless TO prevent il. II was said by the COM
that the limit OF investment that the law ALLOWS
Life and the Sun Life have more American invest
menus man the law allows, and 1t stated that
been invested. nav
INITIATED NEW YORK COMPANIES
At the closing sessions OF the commission there
were developments strongly suggestive OF those
recently made in connection with the opera
tons Of companies IN the United States Ac-
cording 10 the evidence OF the government on
Gals the Manufacturers Life made unauthor-
lied investments 10 the extent Of SSS6OOO: market
values Of certain stocks held were inflated IN
the returns; call loans and stock investments for
which no authority exist alleged 20 have been
suppressed from the report. while Messrs NIacken-
zie and Mann, who large railway interests
occupied dual capacities as both lenders TO and
borrowers from the company. Evidence was also
given TO the effect that the company was nipped in
certain investments. and the directors agreed 10
make good the deficiency and establish a security
company to take the unauthorized stock Off the
company's hands. Il was shown that a brokers'
firm, Of the members OF which, Henry Pellat
was recently knlghted by King Edward bought for
the Manufacturers Life one thousand shares OF c
P. r. stock The firm hypothecated the stock for
themselves. and when the time came for its de-
livery TO the Insurance company. they could not
make good and payment Of 10000 was necessary
10 release the stock The company paid this and
also another amount Of $4,000 10 release lien on
was going 10 offer as security Mr. Peilat gave the
company mortgage for E26O0O property which
was only worth $4,000 There was other collateral,
however. in stocks. Mr. Pellat director OF
Mir. Shepley. the counsel for the government sum
married. the whole deal by saying that the COM
pany FIRST Of all bought stock they had no right 10
could not deliver when wanted that the company
had 70 advance money 70 raise the lien and that Il
OF the directors TO cover itself"
Naturally the developments OF this character COM
Ing out before the real work OF the commission has
begun and before the members Of the cOmmiss on
have made personal Inspection OF the books OF any
company has created a pretty general fear that
which startled the policyholders OF American com
The instructions under which the commission e.
working are OF the broadcast kind and, judging
there Is genuine determination get al the lg.-
The commission will report TO the Eovernmepf o.,
act will then be drawn up and submitted TO the
House.
SHORT SESSION EXPECTED.
The Canadian Parliament, which got down 10
business early in the month. expects 20 have "a
comparatively short but busy and important ses-
sion. \ couple OF days before the House met the
announcement was made that the government had
decided that 10 would be impossible 10 proceed
with the revision Of the tarin this session The
reason for the delay is that W S. Fielding Mn