New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-17
NOT TO PRESS SUITS.
AW4ITS HOUSECLEANING
attorney General Erpects Insurance
Officials to Restore DiUerted Funds.

was IHdue yesterday that Attorney General Mayer
had decided to give the directors of the Mutual
Life, the NewYork Life and several other COM
panies whose scandals were aired by the Arm
strong committee a chance to cleanse themselves
and to obtain the restitution of wasted and mis-
appropriated funds by business methods Ii this
housecleaning is neglected, or if 1t does not come
up to the standard which the Attorney General
thinks the public good demands, suits will be
instituted against the Equitable. A conference
between the Armstrong committee and the Ma
uonal Association of Insurance Commissioners
was announced for next Friday morning, at
which the report to the legislature will be dis
cussed. The Equitable Life yesterday requested
the Armstrong committee to draft law making
II a misdemeanor for any agent of life insur-
ance company to induce a poCyholder to dis
continue any existing policy for the purpose Of
reinsuring in another company.
For some time directors of the big companies
have been working with Attorney General Mayer
to bring about the result which was announced
yesterday postponement of legal action until
the Investigating committees had an opportunity
to bring their offending directors and officers to
book, with the promise of its abandonment If the
internal reform is satisfactory. 1t was admitted
in insurance circles yesterday that members OF
the Truesdale committee of the Mutual Life and
the Fowler committee of the New-York Life had
been to the Attorney General with this mission
They made the point that they would be only
too glad to bring about this reform and thus
escape the annoyance, expense and continued
publicity while the blanket suits brought by the
State attorney were dragging their weary way
through the courts.
The Attorney General made trip TO Albany
to confer on this matter with Governor Higgins,
and it is said that the proposition met Win MS
approval. The insurance companies have prom
ised to do their part Of the work as thoroughly
as the State could do it and to wind 1t up much
rapidly.
In this proposition the Equitable Life seems
to fare badly, as it is not the intention of the
Attorney General to drop the suits against tha1
company which were commenced last summer
when that company was the only one in relation
tn which an investigation had been begun. AT
that time it was important to show to the puoic
at large that the State would take action. Inc
Attorney General also wished to make clear th'C
he felt a certain legal liability in the matter'
1t is possible that Paul Morton and Thonas r.
RYAN will exert themselves to have the Equlla-
BILE included with the other companies in the sell
cleaning programme to the end that tne SUITS
might be abandoned or permitted to drift along
on the calendar of the Supreme Court
WORK MUST BE THOROUGH.
Attorney General Mayer refused to discuss
the matter Yesterday afternoon 1t was under
stood however. that he has informed the COM
panies that their duty must be thoroughly DONE
suits Instituted for restitution Of FUNDS Where
that is necessary, and whatever addltlonal steps
that NAV be necessary taken 10 restore public
confidence Recommendations can be expected
shortly from the Truesdale and Fowler commit
taes that the directors begin restitution SUITS
Having been thoroughly warned on the sup
tact Of rebating and overawed by the appoint
Cleveland
bate referee. life insurance agents have taken
IN the practice of twisting man
who is already insured to give up an old pollcy
in one company for a new policy IN announcer
The Eouftab BILE Life managers for the Inetropoh-
tan district at their regular monthly neetiis'
worried ont an interesting letter on this subject
which has been sent to the Armstrong comHt-
tee.
The agents ask that the committee oraI' Ia"
making It a misdemeanor on the part OF agents
N nractice twisting" and Of companies to en-
courage il For the correction OF the ABUSE they
recommend that several questions De lhcor-
,,oro+ tod in the poIicies afterward written
~, 1vav of fulfilling an agreement which the
,eeisIattve insurance investigation committee
made with the insurance commissioners or sew
eral Western States, the full committee Will meet
in this city Friday. The resolutions contained
in the report will be submitted to the Nlsluhs
commissioners and they will receive an oppor-
tunitv to discuss them. Senator Armstrong,
who was at the Hotel Normandie yesterday,
made an announcement to this effect He would
not name the place in which the conference
would he held Friday morning. It is under
stood however that 1t will be in of the
committee rooms at the Bar Association. where
much of the work on the report has been done,
or at one of the big hotels. The Senator said
that out of courtesy to the legislature, to whom
tho coron1ittee was about to report, nothing
cerning the conference on Friday would be made
public Among the insurance commissioners
who are expected to be present Will be those or
Kentucky Missouri, Minnesota, Tennessee and
Wisconsin one or two of these already have
taken action against some of the big New-York
companies
THE QUESTION OF FEES.
Senator Armstrong said yesterday that the
committee had determined on the fees which
will be paid the attorneys who conducted the
Investigation The exact sums, however. will not
be announced before the report is submitted TO
the legislature. OF the legal assistants, Charles
e. Hughes will come in for the largest fee.
.Tarnes McKeen. Matthew c. Fleming and Ed
ward NJ Scudder the latter young lawyer
who had charge of the financial work of the
cor,nittee. will draw from the State in the order
named. The legislature appropriated S5O.OOO
for the expense of the committee, with the pro-
vision that more would be forthcoming If this
was not sufficient. It is said that this 100000
will NOT pay all of the expenses or the com
mlttee
G II Venner, of No SO Wall-st., who recently
won in the lower courts a mandamus suit re-
outring the New-York Life Insurance Company
to furnish him with list of policyholders. yes
terday requested Attorney General Mayer to
begin proceedings for the recovery of alleged
a nd 70 Ona