The Birmingham age-herald., 1906-02-23

to legal expenses on the recommendation of Andrew c. Fields are taken up. The committee points out that Fields acted also for the Equitable. Concerning the moneys paid to Fields and the money by hlm of a house in Albany the committee says:
 ''At times members of the senate while serving on it's insurance committee were guests at this house in Albany which the Mutual maintained" Contributions by the Mutual to national campaign funds and as testified to by Senator Platt. to the republican committee, are cited, and the committee says it is apparent that contributions were made by insurance companies in state campaigns with the idea that they would be protected in matters of legislation. The committee finds that the Mutual Life Insurance eompany's accounts and vouchers both of legal expense" and of the supply department" are not in a satisfactory condition. On this subject the report says:
 Vouchers Are Too General.
 Many of the vouchers furnished are too general to supply proper information, and other cases the large amounts ex- pended, for advertising, printing and sta tionery, travelling, etc, demand an ex- animation which shall go beyond a mere checking up of vouchers however de- tailed. It is clear that in the interests of the policy holders the accounts of the' company should be thoroughly ex- amined in order the extent to which moneys have been misapplied and the re- sponsioility for any misrepresentation which may be shown should be definitely determined. In the magnitude of it's labors it would not be possible for your committee to undertake this task. which appropriately devolves upon those eharg- ed with the supervision of the capital affairs
 The committee declares, however that despite extraVagant and improper outlaws tie Mutual assets have largely increased would seem to be no reason to doubt lss entire solNeney and it's possession of large amount of assets in excess of all it's liabilities, including its legal reserve. Smallness of dividends or the Mutual Life's policies Is declared to be due main ly to the large amounts expended for new business.
 Dlsburse Enormous Sums.
 The New York Life Insurance company. the committee finds, has permitted it's executive officers to disburse enormous sums of money without proper account ing. The transactions with Andrew Ham ilton show extraordinary abuses, and of Hamilton's explanatory statements sent from Paris the committee says the state- ment Is without suitable specifications. The compensation of S90,3S6 to Hamilton by the New York Life for his work In securing a court decision adverse to the republican national campaign committee are taken up and the committee says that despite vigorous insistence upon the propriety of these payments, apparently nffOrt n1ada to in the books of the company Details of the New York Life's syndicate oper- ations disclosed during the investigation are given at length. As to the solvency of the New York Life the report says:
 There is no ground known to the com mittee for the questioning of the sound ness of the company. It is absolutely able to meet It's engagements, and the serious abuses which have been disclosed have not affected its soivency"
 Of the New York Life's deferred divi- dend system the committee expresses the opinion that without this system, making available a large surplus upon which, according to its theory 1t may draw, the company would find it impos- sible to expand its business at the present rate without disclosing the real results"
 Equitable Directors Censured.
 The directors of the Equitable Life As surance society are censured by the com mittee for non-performance of the func- tions with which they were charged
 TOT the most part they have been figureheads" says the report Those charged with the actual management Of the society failed to realize their re- sponsibility to the policyholders, involving the society in unwarranted outlays and entering into transactions to further their individual interests''
 The Equitable's statement of September 30 1905, showing a surplus of s67,142. S65, is printed In the report. The committee says 1t has no reason to doubt the substantial accuracy of this report, but says that If $7 664 GAO agents balance and miscellane- ous advances carried as assets were ex. cluded the surplus according to the de- partment rule would have been s59 479, ,224.
 Tn connection with the Equitable the settlement of former Governor Odel1 ship-buildinR suit by the Mercantile Trust company and the introduction of Senator Amblers bill to repeal the charter of the Mercantile Trust company, Is dis cussed.
 Regarding Hyde Pool.
 Although the bill was not pressed, ' says the report land MT. Odell's suit was not brought until months later. Ii may be that the fact of the introduction was sufficient to induce Tear on the part of officers of the trust company that proceedings inimcal to its interests night be taken If those who could ini- tiate them were not appeased. 'The $50, 900, 900 pool in Union Pacific preferred stock in November 1902 entered into by James H. Hdye, had for its obvious ob- 1ect" says the report, "the unification of control of the stock and the restric- tive features of the pool agreement made it clearly an improper transaction for an insurance company. The United States Life company is next taken up. The com mittee finds that this company is forced to make large expenditures for new busi- ness in an effort to meet the severe competition of the three companies which gets the pace. In particular agencies of the company 1t was found that the com missions, salaries and expenses have run as high as 236Ds 23S and 2G0 per cent. of the first years premiums.
 "The Manhattan Life Insurance com pany had expended in 1904 amounting 10 about fl per cent of its premium income. and It's insurance expenses were 135. Ss per cent. of the total loadings on its pre- miums. This may be explained, says the committee, to some extent by the large proportion of the assets invested in real estate involving a relatively greater annual expenditure. According to its
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