The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-04
AGREE ON INSURANCE BILLS.
COMPANIES DECIDE on THEIR
STAND AT ALBANY.
Meetings Yesterday OF Corporations Biz
and Little-NO Lobbyists and No
Lawyers to ~Attend-Outslde Concerns
Doing Business Here Find Many Faults.

Oh inc Armstrong COHlfnittee Wnlcn tney
win oppose at the public hearing before the
Legislature on March o.
The programme was determined at con-
ferences held in this city yesterday. More
that fifty life companies in fact, every
company of importance in the country
doing business in this State-were repre-
sented at the meetings. Here are the recon-
m~endations which the companies will
oppose;
1. The restriction OF investments.
2. The limitation Of the contingency re-
serve fund.
8. The proposition that there shall be
nv forfeiture of a policy 30 long as the re-
serve upon 10 justihes its being carried.
4. The prohibition Of deferred dividend
policies.
s. The standardization Of policies, espe-
cially as applied to outside companies.
g. The restriction Of expenses to the load
ings on the premiums plus the mortality
gain.
7. The proposition to make every viola
ton Of the insurance law a misdemeanor.
8. Che lipitation Of business.
9-1O. Two other collateral recommended
lions relating to the curtailment Of ex-
BOllDCS bhllu tlO oh oAAN
Each Of these subjects will be taken up
at the public hearing by an insurance ex-
pert, who will represent all OF the COM
panies.
There will be no lobbyists and no lawyers.
That was announced definitely yesterday.
The presidents of, the big three companies,
Paul Morton Of the Equitable, Charles A.
Peabody Of the Mutual and Alexander E.
Orr Of the New York Life, will attend the
hearing.
The allotment Of the subjects was made
yesterday, contingent on the approval OF
the outside companies. The speakers, in
addition to stating the companies objeo-
lions to the present recommendations, will
submit suggestions for changes. h COM
pany representatives at the hearing will
include some of the most distinguished
~actuaries in the country, including Emory
McClintook Of the Mutual, Joel @. Van Cise
of the Equitable and Rufus W. Weeks Of
the New York Life.
The meeting at which the agreement was
reached was held in the offices of President
Peabody Of the Mutual, beginning at 8
o'clock and lasting until about 8. The
Mutual Life was represented by Emory
McClintook and Mr.. Peabody; the New
York Life by President Orr, Vice-President
Darwin Kinsley and Actuary Weeks; the
Equitable by William R. Day, the society's
comptroller, and Mr.. Var Cise.
There was present also a committee repre-
senting the smaller New York State com
panies. This committee consisted Of ex-
Lieut. Gov. Timothy L. Woodruff, president
of the Provident Life, George f. Ide, presi-
dent of the Home Life, and John A. Tatlock,
president Of the Washington Life.
The conference was preceded by a meet
ing Of the representatives Of outside com
panies at the Home Life offices, 258 Broad
way. More than forty companies we're
represented at this meeting. nearly all of
the delegates being ~actuaries. Thu senti-
ment of this meeting was strongly against
the attempt Of the Armstrong committee to
apply its recommendations to outside COM
panies.
The proposition to standardize policies
is one which, in the opinion Of many of the
foreign ~actuaries, is going to cause lots of
trouble. Some States may be willing to
accept the form proposed by New York
and some may not.
One mar who attended the meeting said
that the outside companies are wild" over
the restrictions imposed on the expenses
which any company may incur and that
many experts expressed the opinion that
the foreign companies would be obliged
to withdraw from New York State if the
recommends tions were adopted in their
present form.
The meeting of the outside actuaries
began at 1890 o'clock in the morning and
lasted until 2:3O in the afternoon. COM
mittee was appointed to cooperate with
representatives Of the big three in regard
to the Armstrong committee recommended
tons 1t is to this committee of seven that
the slate prepared at the meeting In the
Mutual Life Building will be submitted.
There is scarcely any doubt hat the pro-
gramme will be accepted.
An effort was made at first to keep the
meeting in the Mutual Life Building quiet,
but later the conferees talked frankly and
fully about it. They wanted it Under
stood that there was to be no opposition
Of the sighting sort to the Armstrong COM
mittee recommendatio All the COM
panies want is simply workable reforms
Some of the reforms suggested the COM
panies deem to be "non-workable."
They believe that the committee will con-
cent to changes when the facts are pre-
sented in the proper way. Suggestions
for liberalizing the recommendations will
be worked, out by the combined actuaries
Of the more important companies.
The recommendations to which the COM
panies object most seriously are those cur
failing the expenses. One distinguished
actuary has given it as his opinion hat the
big companies won't be able to write
$40 900, 900 of insurance a year under the
proposed restrictions, and that the agency
force of every New York company will be
completely dis~organized, if not destroyed.
The proposition to make every violation
Of the insurance law a misdemeanOr is
another Of the recommendations which
is opposed with equal unanimity. The in
surance officers argue that it is imposs ible
to tell at the beginning Of the year what
the expenses for the year will be, Every
company makes an estimate, and this sti-
mated amount is added to the net premiums
and called the loading. The Armstrong
report says that the expenses must be kept
within the loading and the mortality gains.
To make a violation of THE law a crime is,
in the opinion of the officers, too harsh.
WN