New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-23
THE POINTS OF THE REPORT
Summarizes Testimony Given in investigation and Gives
Remedies for Existing Evils.
STORY OF INSURANCE GRAFT TOLD.
Methods Mutual Equitable and New York Life Descbed-Compani Good
State Now-Fiigh Mutual Reserve Salaries

The insurance committee in its report 10 the
state legislature declares in tie beginning of
rs report that its aim was TO make the investi-
CATION sufficiently thorough and comprehensive
70 reveal the matters that significant in gov
ernment and administration and TO lay a sound
basis for necessary legislative reform.
L declares that as the companies chartered by
This State transact so large a part Of the life
insurance business OF the country. there is no
reason 10 doubt that the measures found neces-
ssry for the adequate protection Of the policy
holders Of these companies are equally neces-
fary for the protection Of policyholders in other
companies and that the the suggested legislation
should extend 10 all companies doing business
within this jurisdiction.
7 is asserted that although an opportunity
has not been afforded for a thorough examina-
ZION q che transactions OF the companies Of
other States, Information from them of no little
value has been received by the committee in re-
sporse 10 its inquiries. and forms part of the
record. Although il has not been possible 10
examine fraJerlal organizations or a consider
sble number Of assessment companies, the in
vesriga-ion Of certain companies now doing bust
ness upon a level premium basis which started
Is assessment companies has thrown light upon
certain practices which should receive the at
tertion q the legislature In one instance a
special examination was made Of an assessment
company not 10 be regarded as typical but which
indicates in 2 striking way possible results
der the present law.
METHODS OF THE MUTUAL.
OF the three great life insurance companies
which were under FIRE most Of the time in the
trvest!gatior the report first deals with the
Mutual Life Insurance Company. which at the
END Of 1904 had outstanding 65s.S44 policies rep
-esenting sl,5476ll.ssO of insurance. Basing
zes-iFarion. the committee says Of the MutuaIs
methods
], Is q purely mutual company. and in theory is
governed exclusively by its policy holders. Those
,re75e- having az least sloeJ Of Insurance. is en-
Is composed OF 1hirtysix persons divided into four
equal classes. in practice the polcynolders have
had Ltle concern with the selection OF trustees or
with 1le management OF the COMPANY Notices OF
r.-rs bar have moi been mailed 10 poucyhoiders
There are probably between 10000 and 10000 policy
holders entitled 70 vote ioT trustees olt Ior long
period OF years not more than 20 votes have been
cast II any election. The voters who vote person
ally have generally been employees OF the company
or e. gs I1s s-las 70 zo,s h. nrov
bur as RUE proxies nave not been used IN order
20 secure the continuity OF the management and 10
Dent Richard a McCurdy and Vice President Rob
IL se5s ~ the local nsnae rTesf These
proxies. unless revoked. run for ten years and #
rarely exercised. The officers have nor found II
5ecesssrT 20 use these proxies. ~ there has not
Teen contested election But throlsh their proxies
S r md .s 81 e Sg sc e eI3 ~ os &t
lave ben IN ars control. and In eject have been
snie 70 choose the members Of the board OF trus-
tees. through whom. IN turn, they themselves have
slto0art. maintained almost without challenge.
Whsrevor efforts have been directed against it