Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1906-02-26
MOST EVILS COULD
HAVE BEEN AvERTED
DUTIES OF DEPARTMENT NOT
PERFORMED VIGOROUSLY
COMMITTEE MAKES REPORT
Recommends Remedial Legislation
Says That Accounts in Mutual Life
Should Be Thoroughly Examined
Payment Of $4,000 to Depew I'm
acknowledgements are Solvent.

New York, Feb. 23.-The committee
appointed at the last session Of the
New York legislature TO investigate
life insurance, made its report yester-
day. The report is extremely volum-
inous, extending to 319 printed pages.
1t embraces a long review of the tes>
timOny taken by the committee ana
it's recommendations ana conclusions
as to remedial Legislation. In addl-
ton there is a chapter devoted to the
state insurance department in which
the committee declares it would seem
the superintendent of the department
has had AMPLE power jtoa&Scertain the
transactions of the insurance COM
panies but that the supervision by the
department has not proved sufficien.
protection against the extravaganza
and maladninistratiOn. Instances
are given of the reports made
ON the affairs of the Mutual life,
New York Life and Equitable Life
Assurance society, in which nothing
was brought out to show the condi-
tiOns developed in the testimony
given before the committee.
No substantial amplifieatiOn of the
powers of the department seems nee
essary, according to the committee,
which holds that most Of the evils
which have been disclosed by the in
ves.tigation would have been impOss1-
BILE had there been vigorous pee
Torrance of the duties aalready laid
upon the insurance department.
Remedial Legislation.
Remedial legislation recommended
by the committee provides for the
safeguarding of the rights Of the pol
icyholders in the mutual companies
in the election of directors; recon-.
mends that stock companies be given
authority to retire their stock and be-
come mutual companies, BUT that
such naturalization shall moi be com
puls0ry: various regulations are
urged TO prevent uuWise investments
and improper syndicate operations;
the sale of prohibited securities
within five years is advocated; re-
commentator for the limiting OF new
business to $150,000.000 a year is
made: the committee fayors prohibi-
ton Of contributions by insurance
companies fer political purposes; lOb
bying is condemned AID the wisdom
of economical management uTgef,
but the committee does not deem il
advisable that the legislature should
attempt TO prescribe the expenditures
of insurance companies.
Further recommendations are made
on the valuation of policies, surrendeH
values, surplus, forms of policies and
the publicity of ali facts pertainina
TO company's business. An amend
ment to the penal code is recon-
mended to provide that the person
receiving a rebate should be equally
guilty with the one who gives it.
Accounts Should Be Examined.
In its detailed report of the investi-
gaticn OF the companies the commit
tee says the accounts OF the MutuaT
Life should be thoroughly examined
in order that the extent to which the
moneys have been misapplied and the
responsibility for misapplicaton which
may be shown may be determined.
Concerning the New York Life the
committee found that its transactions
with Andrew Hamilton showed extra
ordinary abuses and that the state
ment sent from Paris by Hamilton
was without suitable specifications.
In taking up the Equitable Life As
surance SOCIETY, the committee tells #
the dissentions last February which
resulted in the reorganization of that
society and in disclosures which
brought about legislative inquiry
The syndicate operations of the AQuir,
able and James H. Hyde and the rela-
lions between the society and Kuhn.
Loeb & company as brought ort in the