Perth Amboy evening news., 1906-03-08
INSURANCE PROBE
AGAIN BROUGHT UP,


Continued from Page ID
/ Prudential Company had done during
the past five years, in which time It's
surplus had doubled, to benefit hold
ers of industrial policies by making
cash surrender. Mr.. Sommcrs quoted
the answer, which was that benefits
had been given the policy holders in
the form of paid up insurance. There
had been no change in the system of
cash surrender. He declared that Mr..
Dryden testified before the New York
committee that policy holders in the
Prudential had the right to vote until
1880, when he secured the passage of
an act taking that right away from
the policy holders. He declared that
he did this to save the Prudential
from falling under the control of de-
signing men, whom he didn't name.
Griggs Fights Inquiry.
When the hearing was resumed af-
ter the Senate's afternoon session,
Mr.. Griggs opened the opposition. He
declared hat the public has no right
to know how much money a man de-
| posted in a bank or what the securi-
ties of a person who has invested his
money in a bank are. "All the infor-
nation that the public is entitled to is
entitled to relative to the banking
and insurance business" said Mr..
Griggs, lis that which it can secure
through inquiry of the department
of banking and insurance"
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against the trust companies and in
surance companies doing business in
the state for the men demanding an
investigation to do so without first
going to the department of banking
and insurance to determine whether
or not there is a need for inquiry. No
stockholders or policy holder in eth
err a banking company or an insur-
ance company has found fault with
these corporations, said Mr.. Griggs.
He ventured the opinion that the
men who have asked for an investiga-
ton without bringing against them
specific charges have worked the fl
nancial institutions of the state a
great injury.
Senator Colby asked Mr.. Griggs
why the banks and insurance compan-
les reported to the commissioner of
banking and insurance. Mr..
Griggs replied that he presumed
that they made the report for the
purpose of satisfying the state au-
thorities that the securities of the
companies were worth 100 cents on
a dollar.
Mr.. Colby argued that the commits
sioner of banking me insurance
should be Obliged to answer ques
tons put TO him by the authorities
Of other states, and expressed the
opinion that the laws governing the
insurance business should be the
same in n state as another.
Mr.. Griggs suggested that it wasn't
necessary to investigate the compan-
.es to get new laws. All that is nee
assary is to enact the laws.
r. V. |Lindabury said that he was
opposed 10 the adoption of the Colby
resolution because the investigation
of the insurance companies had not
been asked for anybody who had a
tight u ask for it,.
Mr.. Lindabury read Il letter receiv-
I'd from a policy holder in the Pru-
Dental, in which the writer said that
she vas greatful for the benefit that
the company had been to her.
Mr.. Colby asked Mr.. Lindabury if
he had any letters from policy hold
ers whose policies had elapsed eX-
pressing JOY over their condition.
None replied Mr.. Lindabury,
but you and | know that if a policy
lapscs the beneficiary has the benefit
Of paid-up insurance for a stated
time"
Mr.. %Lindabury spoke for two hours
and loaded the committee with a
mass OF figures which refuted many
of the statements made by Sommers
and Colby. He charged Colby and
Record with having asked for the in
I yestigation for the purpose of advanc-
ing their own political interests, and
said that Colby might have gotten
from the state department of bank
ing and insurance Information that
he went to Massachusetts after.
The hearing concluded with Mr..
Lindabury's speech.