Omaha daily bee., 1906-03-10
INSURANCE MEN AT ALBANY
Legislative Committee Listens to Argu
ments of officials and Aotuaries,
FIRST SPEECH is BY PAUL MORTON
Head of Equitable Society objects to
Proposed Restrictions as TO
Investments for Life
Companies.

ALBANY, n. Y, March s--For many
hours today, until nearly midnight tonight,
the joint special legislative insurance in
Vestigating committee listened to argu-
ments of insurance presidents, actuaries
and agents against some of the most far
reaching provisions of the bills amending
the state insurance law and embodying the
recommendations of the committee, as the
result of It's investigation of the life insur-
ance business in this state.
The hearing was a disappointment to
those who had expected either a bitter on
slaught the bills or an occasion of SEN
sational utterances. With few exceptions
the speeches were of a technical character.
An interesting feature Of the hearing was
the presence of the three new presidents of
the big three" lie companies of New York
City-Paul Morton, head of the Equitable;
Alexander E. Orr, president of the New
York Life, and Charles A. Peabody, presi-
dent of the Mutual Life. All three spoke
briefly, President Morton filing a written
communication, one of the principal sub
jects of which was the proposed restrictions
upon the investments of life insurance
companies. Former Lieutenant Governor
Timothy l.. Woodruff, president of the
Provident Savings Life, marshaled the
forces I'm opposition to the main provisions
of the bills and introduced the speakers.
All agreedein the assertion that the adop-
ton of the main proposed restrictions upon
business investments, commissions and cost
of new and renewal business, would work
great damage to the companies and prob
ably drive many foreign companies out Of
the state.
There was little reference TO the more
sensational disclosures of the insurance in
vestigation and no opposition to the rec
concentrations designed to stop and prevent
corrupt practices, campaign contributions
and the like.
First Public Hearing.
Today's hearing was the first public OPP
portunity of the insurance companies to
express themselves upon the provisions of
the ten bills presented by the committee
to the legislature as the result Of It's ex-
animation, and the great and small com
panies contributed powerful personnel
upon the occasion.
President Morton of the Equitable Life AS
surance society was the first speaker He
admitted that serious evils had crept into
the insurance business, and assured the
committee that he was in accord with its
general purposes. He said, however, If
these bills were enacted without changes
terests of the state.
Mr.. Morton then took up the changes in
the bills he would suggest In brief, he
believed that with certain qualifications in
surance companies should be allowed the
same latitude in the matter Of investments
as heretofore.
Mr.. Morton recommended with reference
to existing investments that life insurance
companies be permitted 10 retain their
present investments in collateral trust
bonds and in railroad stocks and also their
present investments in banks and trust
companies. providing that in no case shall
an insurance company hold over % per
cent Of the stock OF a bank or trust COM
pany
objects 10 Standard Forms.
He objected to the proposed standard
forms of policies. The large mutual COM
panies should be permitted to issue non
participating policies, He accepted the pro-
posed Limitation upon new business, but he
maintained that the companies should be
permitted to make good annual losses by
termination. The Jaw should fix a mini
mum, not a maximum. contingency reserve
percentage. There should be some limit
upon expenses, but the proposed limitation