Perth Amboy evening news., 1906-07-17
INSURANCE
PROBE is ON
Paying Cost of Investigation by
the Companies Bad Practice
Three Ways to Regulate.

TRENTON, July 17,@The inVesti-
CATION of the insurance companies
doing business in New Jersey was re-
sumed at the state, house yesterday
by the senate committee consisting
of Senator'S Hillery, 1Wakelee and
Minturn who are to report to the next
legislature what changes, if any,
should be made in the insurance laws
of the commonwealth. The position
of the insurance companies in this
matter was brought out at yester-
days sessions by means of letters and
petitions asking that mo change be
made in the laws, it being claimed
that reforms in the insurance bust
ness were not to be accomplished in
this way.
That the new insurance laws of
New York, enacted as a result of the
insurance investigation in that state,
do not please the companies, was
demonstrated in the protests filed
with the committee yesterday. Will
liam H. Corbin, counsel for the COM
mittee, submitted letters he had re-
ceived from the insurance concerns,
together with much other documen-
tary evidence he had gathered during
the recess.
The letter of the Buffalo Insurance
Company said that the new insurance
laws of New York were not only un-
called for but were also foolish. "Be-
cause a few men have been discovered
dishonest is no reason for penalizing
the whole business" concluded this
company.
The Bankers Insurance Company
hoped that New Jersey would pre-
serve her name for conservatism, de-
claring that the remedy for insurance
evils was mo legislation, good man
agement and publicity"
Various other companies expressed
similar views and made similar pleas
for no changes in the Jersey law.
The first witness called was Bank
ing and Insurance Commissioner Da-
vid o. Watkins. His testimony re-
lated largely to the methods of con-
Quoting his department. He said he
had no suggestions at this time, but
WOulu IldhS SOIlC ldtCl. llC ouiiAt
ted that a bad practice prevailing was
that the insurance companies paid
the cost of their Investigations. He
thought the state should pay such
cost and the organizations should be
more fully under the control of the
department.
Henry F. Cabin, an examiner of
the department, was the next witness.
He described in detail the way the
department looked after the life in
surance business.
Elliot Hardin, of Newark, an exam
liner for the department, said that he
had made examinations of the assets
of the companies under the direction
of special actuary, David r. Fackler,
engaged by the department. His tes-
timony simply related to the method
of a%scertaining the assets.
David r. Fackler, of New York,
next took the stand. He has been the
consulting actuary since 1865, and
has been engaged by the states of
New York, New Jersey, Connecticut,
Missouri and others. His first exam
'ination in New Jersey was that of
the New Jersey Mutual in 1877. That
company was placed in the hands of
a receiver upon his report. He has
made three examinations of the Pru-
Dental Company, three of the Mutual
Benefit Life and one of the Colonial
Life, all New Jersey concerns. He
has also made annual reports of liza
bilities made upon policy values bas-
ed upon lists sem to his New York
offices by the various companies.
Mr.. Fackler stated that there are
three ways by which the business of
insurance companies can be regulat-
ed. These are: BY limiting the
amount of insurance in force, limit
ing the new insurance, or limiting the
assets. He favored the latter method
as being the best for the policy hold
ers. as we'll as for the state depart
ments of insurance.
The hearings will be continued to-
day in the chancery chambers in New
ark, where all future sessions will be
held, because of the fact that this city
is the insurance center of the state.