The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1906-03-02

MAKE REPORT
New York Legislative Com
mittee ROasts the Big
Insurance Companies.
Legislation Suggested and Enaetment
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 its report Thursday.
The report Is extremely voluminous,
extending to 319 printed pages. It 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 chapter devoted to the state
insurance department, in which the
committee declares it would seem the
superintendent of the department mas
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-
fication of the powers of the depart
ment seems necessary, according 10
the committee, which holds that most
of the evils which have been dis.
closed would have been impossible
had there been a 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 mutua
| companies; that such naturalization
shall not be compulsory. A recon
| mendation is made limiting new bust
ness to $3.50, 100000 q 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 tina
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 a rebate should be equally guilt.
with the one who gives 1t.
In it's detailed report Of the investi
cation, the committee says the acts 0
the Mutual Life Insurance compan!
should be thoroughly examined in OF
der that the extent to which money
| nave UCcu lulodppiiCu ohu ShS ASoPo>
sibility for such may be shown and dc
termined.
| Concerning the New York Like com
pany the committee found that 1t
transactions with Andrew Hamilto
showed extraordinary abuses and tina
thd statement sent from Paris b,
Hamilton was without suitable spec
fications.
In taking up the Equitable Life Al
surance society the committee tells {
the dissepsions last February whic
resulted in the reorganization OF ths
society and in the disclosures whic
brought about this grave inquir.
The syndicate operations OF tn
Equitable and James H. Hyde and tn
relations between the society an
Kuhn, Loeb & Co., as brought out
testimony before the committee ar
referred to as is the $50,000OOO Unto
Pacific pool under the manage
ment Of e. H. Hartman, Jacob I
Schiff and James Stillman. Particip'
ton in this pool by the Equitable, Ia
committee holds, was clearly an IN
nrnner transaction for an insuranc