The Spanish Fork press. [volume] (Spanish Fork, Utah) 1902-current, 1906-03-01

MAKE REPORT
New York Legislative Com
mittee ROastS the Big
Insurance Companies.
Legislation Suggested and Enactment
Of Laws Recommended to Control
Operations of Companies and
Curb Officials.

New York.-The committee ap-
pointed at the last session of the New
York legislature to investigate life in.
surance made It's report Thursday.
The report is extremely voluminous,
extending to 319 printed pages. 1t EN-.
braces long review of the testimony
taken by the committee, and its rec
concentrations and conclusions as to
remedial legislation. In addition
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 to ascertain the
transactions of insurance companies
but the supervision by the department
has not proved a sufficient protection
against extravaganza and maladmin.
istration. Instances are given of re-
ports made on the affairs Of the Mu-
tual Life Insurance company, the New
York Life and the Equitable life AS
surance society, in which nothing was
brought out to show the conditions de-
veloped in the testimony given before
the committee. No substantial ampli-
flcation of the powers of the depart
ment seems necessary, according to
the committee, which holds that most
of the evils which have been dis
closed would have been impossible
had there been vigorous perform
ance of the duties already laid upon
the insurance department.
The remedial legislation recon.
mended by the committee provides for
the safeguarding of the rights of
policy holders in mutual companies in
the election of directors; recommends
that stock companies be given au.
thority to retire their stock and be.
come mutual companies in the election
of directors; recommends that stock
companies be given authority to re-
tire their stock and become mutual
companies; that such naturalization
shall not be compulsory A recon.
mendation is made limiting new bust.
ness to $150,000,000 a year. Lobbying
Is condemned; the committee favors
the prohibition of contributions by in.
surance companies for political pur.
poses. The wisdom of economical
management is urged, but the commit
tee does not deem it advisable that
the legislature should attempt to pre-
scribe the expenditures of insurance
companies.
Further recommendations are made
on the valuation of policies, surren-
der values. surplus, forms of policies,
and publicity of all facts pertaining
to company's business. An amend
ment to the penal code Is recommend
ed to provide that the person receiv-
Ing rebate should be equally guilty
with the one who gives 1t.
In its detailed report of the investi-
CATION the committee says the acts of
the Mutual Life Insurance company
should be thoroughly examined in Or
der that the extent to which moneys
have been misapplied and the respon-
sibility for such may be shown and de-
termined.
Conserving the New York Like CON-
pany the committee found that its
transactions with Andrew Hamilton
showed extraordinary abuses and that
tha statement sent from Paris by
Hamilton was without suitable speci-
fications.
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 about this grave inquiry.
The syndicate operations of the
Equitable and James H. Hyde and the
relations between the society and
Kuhn, Loeb & Co, as brought out in
testimony before the committee are
referred to as is the $4,000, 900 Union
Pacific pool under the manage
ment of e. II. Hartman, Jacob H.
Schiff and James Stillman. Participa-
tion in this pool by the Equitable, the
committee holds, was clearly an i'm
proper transaction for an insurance
company.