The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-10
The INSURANCE MEMS PLEA.
THEY STATE THEIR OBJECTIONS
TO THE ARMSTRONG BILLS.

NNoNA ehut 'S
Dividend Contract and Reducing the
Amount That Agents Can Make
Committee Not Much Impressed.
ALBANY, March 9.-For nearly thirteen
hours to-day and tonight the members Of
the insurance committees Of the two houses,
as we'll as members Of the Armstrong in
surance investigating committee and other
members of the Legislature, listened to
arguments advanced by the heads Of in
eurance companies and others identified
with the insurance business as to why the
more important Of the bills introduced
IN the Legislature by the Armstrong COM
mittee should not become laws.
After listening to the arguments members
of the Armstrong committee freely declared
that they were disappointed. Their disap-
pointment, they said, consisted in the fact
that they did not hear a point that they had
not anticipated when the bills we're pre-
rared. They say that all the arguments
that they listened to could be broken down
by a score of reasons that the features OF
the bills complained Of should be per-
mitted TO remain. And from expressions
Of members Of the committee the hearing
did not cause them to believe that any of
the bills would be changed, except to per-
feet rather than to reduce the effectiveness
of the bills. The mem bers Of the CON-
mittee say they had expected to hear con-
vincing reasons why the bills should be
amended in many material respects, but
they assert that they see no reason why
they should alter the intent OF any one Of
the bills.
COMMITTEE WILL ~IBERA
But they will deliberate on some Of the
matters brought out to-day. The principal
consideration will be given to the agents.
Insurance men tonight said that they had
based their main hope of getting changes
in the bills on the arguments of the agents.
The agents contend that the bills practi-
cally l~egislate them out Of Office. or rather
compel them to work for no considera-
ton whatever. The insurance companies
wanted the Legislature to see what the
agents looked like. About 500 came from
New York, and there were hundreds more
from all over the State, the delegation from
Buffalo and Rochester coming in a special
train. And members Of the Legislature
remarked that the agents did not look like
o body of men who were suffering from a
lack Of the good things of this world.
other points that will be studied
and gone over carefully will be the
claims that the ratio Of the contingent
-e1x-o funl &c too lou. fhaf tho o,irtaiI-
ing Of new business that a corporation can
do is too small; that there is a likelihood Of
other States adopting retaliatory legisla-
ton against corporations from this State.
The latter is believed to be one of the few
things that can be expected, for members
of the committee assert that the people will
know that the insurance companies OF this
State are regulated in the interests Of the
policyholders il the amendments to the
insurance law are adopted, and that other
States will nave to conform TO the standard
set by this State.
A THREAT NoT WORTHY OF ~NSIDEBATIoS
The threat that foreign insurance COM
ranies would be practically driven out
of this STATE If the bills become laws was
rot regarded as being worthy Of con-
sideration. The contention that they
N'ulu NlIblu" llolIl llIhN q ICY bNN
70 effect, because the statistics show hat
New York State is the most fertile field
for the life insurance business, and that
in the future the proudest recommendation
of an insurance company will be that 1t
is permitted TO do business in this State.
But the hearing is not closed yet. While
the committee had decided that they would
wind up the hearing to-day, it has been
decided to give the insurance people more
time. Senator Armstrong says that the
hearing will be resumed next Thursday
afternoon at 2 O'Clock, and will continue
Friday and all of Saturday il necessary.
The arguments made to-day and next
week will be- typewriter ard will be con-
sidered in executive session by the COM
mittee and Attorney Charles Z. Hughes.
The arguments will be carefully studied
to see if there is any reason for a change in
any of the bills.
The actuaries will probably be invited
to sit in executive session with the COM
mittee, although the members said they
were somewhat disappointed that the &C
tuaries did not bring out more forcible
arguments to-day against the bills. The
actuaries were supposed to be men who had
facts and figures at their tongues end,
but all the time to-day they talked too much
in generalities to leave the impression they
desired against the bills.
MAD DIRECTIONS TO THE BILLS.
What were considered the main points
advanced as being injurious to the insurance
business were:
Limiting the amount Of new business
that a company can do annually; reducing
the amount OF the contingent reserve fund;
abolishing the deferred dividend contract
in a policy; limitations upon Investments;
compelling foreign insurance companies
doing business in this State to have two
standards Of policies, one for this Stat
and the other for other States; establishing
expense limitation; reducing the amount
that agents can make.
No hearing held within recent years
in the Legislature attracted as much at
tention among insurance people as this one
has. Every comp any doing business in