The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-31
APPROVE NEW INSURANCE BILLS.
Very Little Grumbliny Over Changes Made
by Armstrong Committee.

ny AfmStrOnS NOmntittee'
Insurance officers generally expressed
themselves yesterday as pretty wellsatisfied
with the changes made by the Armstrong
committee in its proposed legislation.
Each of the companies still had its own
little individual complaints against the
bills, but In a general way all Of the CON-
panies conceded that the Armstrong COM
mittee has done the fair and square thing.
The agents, too, while inclined to grumble
a bit from force Of habit, are pleased.
Emory McClintock, the Mutual Life's
distinguished aotuary, who has been called
into consultation by the Armstrong DOM =
mittee frequently since the original bills
were introduced, said yesterday
I'VE are pleased with the changes. They
are all in the right direction"
Mr.. McClintook gave it as his opinion
that the bill as amended, restricting the
expenses which any company may incur 4,
provides for workable reforms, although
the companies will have to squeeze some
even underth present liberalizedt terms. He
regarded the changes made in this measure
az very conservative. 1t will now, he said,
allow the companies to pay their agents a
fair remuneration and will at the same time
operate in an economical way in regard
to the management of the companies
The bill as framed will also, through its
conservative restriction Of expenses, OPP
crate to prevent wasteful and e~xtravagant
competition for business among the com :
panies. O
Mr.. McClintock Is the actuary who said
that the companies would not be able to
write SO, 600, 900 of new business a year
under the original restrictions. He gave
it az his opinion yesterday that the big com
panies when the public clamor has died
down will be able under economical man
agement to write business up to the limit
imposed by the Armstrong committee OF
$3.50, 900, 900 a year.
President Charles A. Peabody Of the
Mutual Life also expressed his satisfaction
with the amended bills.
George p. Ide, president Of the Home
Life Insurance Company, who represented
the smaller companies at the hearings before
the Legislature, regarded the changes as
fairly satisfactory" The reforms pro-
posed now are, he said, workable, but he
feared that they would bear heavier on the
small companies than on the large ones.
He thought that the small companies would
nave W tOlltttlu Wlth NoiilO''''o' -
the West and the Middle West.
Although the insurance commissioners
of the West at their meeting in Chicago re-
Gently declared for most Of the reforms
adopted by the Armstrong committee, Mr..
Ide feared that it would be an entirely diff
ferent proposition when they attempted to
convince the Legislatures Of the various
States that a uniform insurance code ought
to be adopted. He feared that the desire
to nave the domestic companies in other
States profit at the expense of the New York
institutions would be too strong and that
every effort would be made to promote the
interests of the domestic companies.
William C. johnson, chairman Of the COM
mittee which represented the agents at
Albany. said:
"The insurance committee has. acknowl-
edged the soundness of the objections raised
by the agents against the limitation Of
agency expenses first proposed by making
a considerable modification of section 9s.
The original section was so drastic that its
passage would nave legislGted the agents
out Of business. The committee, in the
amended section just introduced, has set
up a standard of agenoy, expenses for all
companies which il a trifle lower than the
present expense basis Of those now most
conservatively and economically managed
Personally. l think the agents Of the better
companies will be able to do business under
the limitations now proposed, and believe
the standard set up liz one to which many.
but not all, of the other companies could
ultimately attain. 1t will mean a radical
cut, but il probably can be done"
Mr.. johnson thinks that these restrictions
will, however, be very burdensome to the
smaller and weaker companies. He wants
the operation of the proposed restrictions
postponed until at least January /, 1908
so that the smaller companies may ave an
opportunity to adjust their affairs to the new
standard gradually, Mr.. johnson would
like also TO have the surrender charges"
included in the expense fund.
President Charles A.. Peabody OF the
Mutual Life expects to savs for the policy
holders in the management OF the Mutua !
for the present year more than 81 500 900
He has instituted economies already which
bring the total up close to the above
figures. The cost Of administration has
been cut by about one-fourth of last years
amount. More han 500 900 has been
saved on the home Office building alone
or this amount $50 600 il saved in the run
ming expenses OF the building. Between
$500, 900 and $500 900 has been saved in
salaries. The advertising account will be
cut from about $500 600 to 500 900. There
will be proportionate savings in the print
ing and other supply accounts, and that
which formerly went to the yellow dog will
help to swell the total.
Ii was learned yesterday hat Vice-Presi-
dents Granniss and Gillette were among
This may have had something to 10 with
thar ratirannant