The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-02-23
PUBLICITY FOR
ALL BUSINESS
Life Insurance Committee Makes
It's Report and Recommends
Many Regulations, Includ-
ing the Elimination
Of New Busi-
ness.
(By Associated Press,


NEW, YORK. February 22.--The COM
mittee appointed at the last session OF
the New York Legislature to investigate
life insurance, made It's report to-day.
The report IL extremely volrimnous, ex-
tending to $40 printed pages 1t embraces
a long review of the testimony taken
by the committee and Its recommends
tions and conclusions as to remedial legis-
lation. In addition there Is chapter de-
voted to the State Insurance Department
III which the committee declares that 1t
would seem that tho superintendent Of
the department had had ample power TO
ascertain the transactions of insurance
companies. but that the supervision by
the department has not proved sufh-
cient protection against extravaganza and
ma1administration. Instances are given
of reports made on the affairs OF the
Mutual Life Insurance Company the
New York Life Insurance Company and
the Equitable Life Assurance Society.
in which nothing was brought out to
show the conditions developed in the tes-
timony given before the committee.
No substantial ampfication of the
powers OF the department seems neces-
sary. according to the committee. which
holds that most of the evils which have
been disclosed by the Investigation would
have been impossible had there been
vigorous performance OF the duties al
ready laid upon the insurance department.
Remedial Legislation.
The remedial legislation recommended
by the committee provides for the safe
guarding of the rights OF policyhoders
in mutual companies in the election OF
directors; recommends that stock conf
panies be given authority to retire their
stock and become mutual companies, but
hot t,ntitt lizutipn Qhull nor bn
compulsory: various regulations are urged
to prevent unwise Investments and I'M
proper syndicate operations; the sale of
prohibited securities. within five years is
advocated; n recommendation for the
limiting OF new business to S15000O, 900
year Is made: the committee favors the
prohibition of contributions by insurance
companies for political purposes; lobby
ing is condemned. and the wisdom of
economical management Is urged, hut
the committee does not deem 1t advis-
able that the Legislature should attempt
to prescribe the expenditures of insur-
ance companies.
Further recommendations are made on
the valuation of policies, surrender values.
surplus, forms or policies and publicity
of all facts pertaining to u company's
business. An amendment to the penal
code is recommended to provide that the
person CeCeNlIS tIcDuLc SiohAu ~ aSp'st'-
ly guilty with the one who gives 1t.
In Its detailed report of the investi-
cation OF the companies, the committee
says the accounts of the Mutual Lie
Insurance Company should be thoroughly
examined in order that the extent to
which moneys have been misapplied and
the responsibility for amy misapplication
which may be shown may be determined.
Concerning the New York Life lnsur-
ance Company the committee found that
Its transactions with Andrew Hamilton
showed extraordinary abuses and that
the statement sent from Paris by Hamil-
ton was without suitable specifications
Tells of Disclosures.
In taking up the Equitable Life As
surance Society, the committee tells OF the
dissensions last February, which resulted
in the reorganization of that society, and
in the disclosures which brought the leg
islatiye inquiry. The syndicate opera
tons of the Equitable and James, II.
HYDE and the relations between the So
ciety and Kuhn, Loeb and Company, as
brought out in Testimony before the COM
mittee, are referred to mt considerable
length. as also the s5O0W,000 Union Pa
c!tlc pool under the management of p. III.
Hartman, Jacob II. Schiff and James
stillman. Participation in this pool by
the Equitable, the committee holds, was
clearly an Improper transaction for an
insurance company.
Former Governor odells shipbuilding
suit against the Mercantile Trust Com
pany. which was settled by that company
is treated Of the committee holding that
the circumstances of the Introduction of
the Adler bill might have been sufficient
to induce that settlement on the part of
the officers of the trust company through