New-York tribune., 1906-04-20
AMENDMENT DAMAGING. .
Hughes and Other Reformers Indig-
nant OUer Senate's Action.

The passage Of the White amendment TO the gen.
eral insurance bill caused expressions OF surprise
disappointment and indignation yesterday by the
men who have been working for insurance reforms
ana who had hoped to effect a change in the pres
ent management Of the mutual insurance COM
panies.
There are those who still think the bill may be
put through in its original form by reconsidera-
1ion OF the Objectionable amendment which shat
tered Its backbone, taking away II does the op-
portunlty OF the policyholders to put of Office
an objectionable management Others who have
watched the work OF the insurance lobby in AL
bany the belief that the strength it evinced
1oreshadows the defeat of the entire bill or its
complete enasculation.
Charles f. Hughes, counsel to the Armstrong
committee, expressed the prevailing opinion of the
insurance reformers when in a statement, he said
the defeat Of the provision for the publication of
the lists OF policyholders would embitter the con-
troversy. The statement follows:
The amendment which passed the Senate vester-
oay Is most damaging amendment. The claim
that IT IS in the interests of the pocyholders is
interests of the policyholders require that the ad
Lsninistration minis Of these companies should be con-
can be enforced only by giving absolute freedom to
changing the management whenever it is guilty of
abuses.
In mutual companies the policyhclders are the
members and the directors are simply their APP
p 10 manage & LHe d II ls Of the
iree opportunity 10 know each other, TO commun-
cate WIN eacn OtAer and TO eneCt whatever COM
olhauons may De needed TO secure proper repre-
sentaton.
amendment have committed a grave tactical blum
der Instead Of allaying agitation and permitting
would, by reason Of equal opportunity and fair
ment they would, by keeping from the policyhold-
ers the information which they are entitled.
Importance the solicitude that is said to be felt
for the pohcyholders lest they should be induced to
1t should be clearly understood by the public that
trench the infringement and make it more difcuIt
for the policyholders TO assert their rights.
John De Witt Warner. counsel for the Policy
holders Association OF the Mutual Life Insurance
Company, issued a singing statement arraigning
those who were responsible for the amendment. It
opens follows:
The Introduction yesterday of the White amend
ment and its temporary successful SUPPORT by the
ciais Of the companies concerned, and including
fore utilized Viii stir the policyhoiders as has
nothing since Hamilton arraigned the same mar
For it shows the management OF the companies
concerned as cabals Of speoulators who, having
Somewhat into their pockets, propose to give the
policyhodeTs chance whatever TO them
them as unfit 10 remain.
they have shown themselves TO be Of the class who
may be depended upon TO carry off anything that
isn't too heavy or too hot.
Mr.. Warner declares that the White amendment
would make the organization Of any policyholders'
movement abortive. because the management of
the companies would be able to learn the objects
OF such movement and would organize counter
movement through their agency force. He adds:
If there is anything that could further embitter
relations between the policyholders and their faith
less trustees II is this slap IN the face. 1t may
we'll be that have not had exposes enough.
But if this amendment remains shall have
plenty more.
Samuel Untermyer. counsel for the international
Policyholders' Committee, said he too disgust
ed to make any comment the blow to the gen.
eral insurance bill. He sent a long telegram TO
Senator Bracket. which said, in part:
We are amazed at this complete destruction at
one blow Of everything accomplished for the policy
holders. The action OF paid officials like Kingsley
and Mcintosh. openly lobbying for days against
the interests of othose they paid TO protect, is
uneXamped for audacity, and demonstrates anew
the lengths to which the managementS are willing
go in the desperate efforts to prevent the at
tempts at restitution that would follow change.
The law department OF the Mutual Life made pub
lice yesterday a brief by Julien T Davies, gen
eraI solicitor in opposition to the Bracket taxa
ton bill, which would the funds of insurance
companies He declares that the principle that in
| surance funds ought not TO be taxed IS a funda-
mental principle of political economy. He argues
that # would make it difficult, If not impractcabe,
TO compete with foreign insurance corporations in
this state. and especially elsewhere, and that It
would nullify the beneficial effects of the Arm
| strong committee investigation.