New-York tribune., 1906-06-02
MAY RETAIN STOCKS,
CHANGE OF Law AWAITED
Insurance Com panies' Plan-Wast-
ing Money Agdin. Says Untermyer.

ing Money Again, Says Untermyer.
According to one of the new Armstrong laws
no domestic life insurance company may after
yesterday buy any stocks except stocks or
municipal corporations. nor may IL buy any
bonds that are secured merely by stock. Within
five years after yesterday the companies must
dispose OF all the stocks they now hold.
This does not mean that they are going 10
| throw any large blocks of stocks on the market
at this time Indeed, II is believed in some quar-
ters that the companies will keep their holdings
as long possible hoping that there may be a
! modification OF the law by future legislatures.
The law provides that they may get rid of such
portions of their stock holdings in each of the
five years as may be agreed by the State
Superintendent of Insurance.
A list of securities owned by the Mutual
December 81, 1905, shows stocks of par value
OF s31,71O 800 and a net market value of s73,Ss4
299 The figures of the stocks held on December
81. 1905 by the Equitable have not yet been
published. but the figures for the year previous
show holding of stocks at a par value Of about
s175O0.OOO. the market value of which at
that time over s53.000.O00.
The New York Life Insurance Company has
held no stocks since 1902. In that year it dis
posed Of its stocks in order to comply with the
Prussian law and that it might continue doing
business in that country The Equitable and
Mutual discontinued their business in Prussia
rather than comply with the laws. which. they
considered. hampered them too much
In a statement issued yesterday Samuel I'm
terrnyer counsel for the international policy
holders committee, says he is informed that
the New York Life and the Mutual Life are
paying $S 10 a thousand names for the copying
of the policyholders' lists. whereas another
company offered TO do the work for So thou
rrg.fc to alxa
the money spent by the New York Life in pub
fishing the reports of the public accountants.
and takes fling at the Mutual for retaining so
many of the old trustees on the new committees
of the board.
After naming the two firm that are preparing
the policyholdcrs' lists. Mr. Untermyer says:
am credbly Informed that a responsible and
efficient company offered 10 do this work AT the
rate of So a thousand names but that they gave
out the contract at the rate of SS 30 thousand
the understanding that those who took the
contract 10 copy the lists for the companies
else. In other words. they wasted thousands or
dollars of the pocyholders' money in order to
keep from the pocyhOlders the best machinery
for getting copies of these lists.
In the light of recent events, such as the list
of the Mutual Life committees, il must be ap-
parent every that the Armstrong COM
mttee made great mistake in recommending
legislation which kept these men in power until
next December and gave to them all these op-
portunities of squandering the polcyholders
money in the attempt 10 keep them out or their
property.
Referring 10 the balance sheet published by
the New York Life. Mr.. Untermyer says:
The information the policyhoIders have been
waiting for. and still waiting for. and for
which they will have to wait until they come
into their own. is not TO what is left, but what
has been converted and misappropriated. and
when, and by whom Where is the report of
the Fowler committee?
In the Mutual Life the pOlicyhoders are also
waiting 10 get at the suppressed reports of the
Truesdale cri 'httee, at the answers IL any,
made by the -rustees to the questions put 10
them as to their personal interests and profit in
the transactions OF the past.
The so-called Committees in these two COM
panies have been in existence for six months
more. Why is ii that they never discover any
thing OF the corruption and mismanagement that
have characterized their administrations until
either the Armstrong committee the District
Attorney discovers il for them. whereupon they
promptly proceed TO make "scapegoats" OF the
men who have been detected and resume their
Investigations" awaiting in terror the next
discovery Of corruption by the public authori-
ties. which they then again proceed to expose
after II has been uncovered. in spite OF them.
Up 10 this time they have succeeded fairly
well IN holding on, but the surface of this bot
tomless pit Of corruption has barely been
scratched Some Of the chief offenders have
thus far escaped unsoathed. but in the end the
story must be told
The defiance OF public opinion and the rights
OF the policyholders in reappOinting of the old
committees In the Mutual the squandering of the
policyholders' money in the New York Life in
bidding for votes az the election under the guise
OF furnishing information. and the sending Of
Their high priced officers abroad TO bid for sup
port at the elections. are but a few OF the many
instances OF their methods
The ne~ committees Of the Mutual will meet
early next week 20 designate a member from
each for the general committee which has large
powers This committee has already been agreed
on. IL is said.
Gage f. Tarbell. second Vice president OF the
Equitable. in a letter sent 10 the agency force
yesterday calls attention 10 the recent address
OF Charles f. Hughes. when he said that the
Armstrong committee had found the sOlidity Of
the great companies the Rock OF Gibraltar.
Mr.. Tarbell adds
The newspapers are helping now instead of
making IL hard for You had only one tongue
70 argue with your clients. while the newspapers
had a thousand. Now the great influence Of
the press is on your side. 10 help make your work
easier.