Perth Amboy evening news., 1906-08-24
Insurance Company Made a
Clean Breast of Its Methods
and Conditions and
Welcomed the
Chance.
No Graft for Anyone and the Money
of the POIiCyhOIders Is Held in
Thirty Banks or Invested
in Bonds and Bought in
the Open Market.

The widespread discussion Of life
insurance affairs for the past year
has caused a more than usual inter-
est to be taken by the New Jersey
residents in the investigation of the
business of life insurance, being
conducted by the special senate COM
mittee recently appointed by the leg
islature.
New Jersey has three domestic
comprehensive Colonial of this city
and the Prudential and Mutual Ben
eft of Newark. Although all three
testified before the Armstrong COM
mittee in New York, it was expected
that the inquiry by the New Jersey
senate committee would be far more
thorough and searching than the
New York hearing.
Quite naturally, interest in this
county has conferred in the eXamina-
ton of the Colonial. Nearly every
large city of Importance in the Union
can now claim a local life insurance
company, and Jersey City's sole pro-
duct of this kind in recent years has
been the Colonial. Hence the resi-
dents of this city and county, who
have watched with interest the pro-
gress of this company since it's or
ganization nine years ago, felt a Pc
culiar interest in the outcome of its
investigation at the hands of Counsel
William H. Corbin and the senate
committee.
Despite the fact that the majority
of it's officers and directors were
home-bred and well known in this
section of the state, the revelations
as to certain features of the life in
surance business brought to light by
the Armstrong inquiry, have caused
a general suspicion to attach to the
entire business in general and to al
most every company in particular
! Hence the people of this county well
coined this New Jersey investigation
as an opportunity to get a true line
on the Colonial and it's methods.
Mr.. Ernest j. Heppenheimer, sec
ond vice-president of the company,
was the only witness from the Col
onial on the stand. Other officers OF
the company were in attendance at
the hearing, prepared to testify as to
any detail of it's business, should oc-
casion require. Mr.. Heppenheimer's
testimony brought out many details
about the company and its methods
of interest to anyone who has a life
Insurance policy.
Mr.. Heppenheimer, on being
sworn, in answer to a question by
Counsel Corbin, stated that the cap
ital stock of the Colonial was $3.50,
600, issued and fully paid, and
$4,000 authorized; shareholders
were required to contribute a sur
plus to provide for the heavy eX-
penses incidental to the establish
ment of an insurance company.
Mr.. Corbin-FHas your company
yet paid any dividends"
None at all to stockholders, but
for the past four years we have been
paying dividends to policyholders."
us your company on a paying
basis?" !.
Eyes. 1t has been for some time
what salary is paid your presi-
dent?"
Nothing. The question of econ
omical management has always re-
ceiyed the closest attention of ouI
| officers. and it seemed fitting tc
President Young that he should ap-
ply this principal to himself. Ac'
cordingly he has steadfastly declined
to accept any compensation for his
services, and although the matter OF
salary has been preached to him on
several occasions he has refused tc
entertain the same
docs he receive any other COM
pensation?"
None whatever
"What do your directors and com
mittee members receiver"
Nothing at all.
"How are your assets invested?"
ON real estate and bonds"
'fDo you carry any stocks?"
None whatever"
where do you purchase your
bonds?"
I'm the open market, wherever We
can obtain the best price"
ssHas any officer or director of the
company had any connection witt
syndicate purchaser"
absolutely none"
Have they ever profted in any
way by any sales to or by the Co
Ionial?"