Daily press. [volume] (Newport News, Va.) 1896-current, 1906-02-23
HARTMAN POOL IS CONDEMNED
PoIicyholdcrs' Money Uscd in an Elk.
travagant Manner, But the Commits
sioncr Never Found Out About
Crimes Which Were Evident il He
Had Only Looked.
(Ry Associated Preaa.l

NEW fOltN, FEB. 22.-Thc com
mittec appointed at the last session
of the New York legislature to invcsti-
gate life insurance made its report
today.
The report Is extremely voluminouS.
extending to 3i9 printed pages. 1t
embraces Il long review of the testi-
mony taken by the committee and con-
illusions as to remedial legislation
In addition there Is chapter de-
voted to the State insurance depart
ment, In which the committee declares
that It would seem that the superin.
tendcnt of the department has had
ample power to ascertain the transac-
tons of insurance companies. but that
the supervision by the department has
not proved sufficient protection
against extravaganza and mal.admin.
istration.
State Reports Worthless.
Instances are given Of reports made
on the affairs of the Mutual Life in
Surance Company, the New York Life
and the Equitable Life Assurance
Society. In which nothing was brought
out to show the conditions developed
In the testimony given before the COM
mittec
powers Of the department seems nee
essary. according to the committee.
which holds that most of the evils
which have been disclosed by tho in.
vestigation would have been impossi
bic had there been vigorous per-
Torrance of the duties already laid
upon the insurance department.
Remedies Suggested.
The remedial a inn rn,.n,,-
mcnded by the committee provides for
the safeguarding of the rights of pol
icyhOlders In mutual companies in the
election of directors; recommends that
stock companies be given the right to
retire their stock and become mutual
companies. but that such mutualizn.
ton shall not he compulsory: various
regulations are urged to prevent I'M
wise and improper syndicate opera.
tons: the sale of prohibited securities
within five years is Advocated; a rec.
concentration for the limiting of new
business to $l50,000,000 a year Is
made: the committee favors the pro-
hibitlon Of contributions by insurance
companies for political purposes; lob
bying is condemned and the wisdom
of economical management is urged
but the committee does not deem It.
advisable that the Legislature should
attempt to prescribe the expenditures
Of insurance companies.
Rebates Condemned.
Further recommendations are made
on the valuation of policies. surrender
values. surplus. forms of policies and
publicity of all facts pertaining to n
company's business. An amendment
TO the penal code is recommended to
provide that the person receiving
rebate should be equally guilty with
the one who gives it.
In its detailed report of the investi-
cation of the companies the committee
says the accounts of the Mutual Life
Insurance Company should be thor
oughly examined In order that the
extent to which moneys have been
misapplied and the responsibility for
any misapplication which may be
shown may be determined
Hamilton an Extravaganza.
Concerning the New York Life In.
surance Company. the committee
found that It's transactions with An
drew Hamilton showed extraordinary
abuses. and that the statement sent
from Paris by Hamilton was without
suitable specifications.
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 abou.the legislative inquiry
The syndicate operations of the
Equitable and James II. Hyde. and
the relations between the society and
Kuhn. Loeb and Company. as brought
out in testimony before the commit.
tee. are referred to at considerable
length. as also the S50.000.000 Union
Pacific pool under the management of
T.. II. Hartman, Jacob II Schiff and
James Stillman. Participation in this
pool by the Equitable, the commission
holds. was clearly an lmpropertransac
ton for an insurance company
OdeI Used Club.
Former Governor Odell's shipbuild-
ing suit against the Mercantile Trust
Company. which was settled by that