New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-05
PREPARING FOR BATTLE
INSURANCE MEN ACTIVE.
armstrong Recommendations 10 BE
attacked IN albany Friday.

The life Insurance companies. large ana sinah'
viii descend Albany next Friday gHoeu -.
hattie royal against many OF the reconlmehoa'o"s
os the Armstrong committee which on that day
are to have public hearing before the "ho!e 80
larure As the discussion must be prler anu W "'
point, there have been number OF conferences 70
ginning with that of the presidents OK tne Dig
cornpautes which was held in the ONCE OF Faui
Morton in the Equitable Building early last ~eeh'
and the various subjects on winch arguments io'
elimination or modification will be presented rave
haep assigned to those best able to handle them
The companies are practically a unit on the rec
concentrations which they hope to defeat- Inc
Equitable IL President Morton's statements are
eny Indication are not excited as some OF the
others The Mutual Life. through President Pea
body and Julien T. Davies. general solicitor, WILL
II is believed, make hard fight against the rec
ommendation for a new election In November WHO
all old proxies barred. The fight Of the poeyhold-
ers against the present regime makes this most
important matter The New-York Life Is also lHey
to take a hand in this fight. as efforts are oeinx
made in several quarters to gather sufficient
to carry tho coming election against the present
trustees
On most of the points which will be discussed at
FRIDAYS hearing the companies. large and small.
Will take common ground. They are opposed, &C
cordng to the actuary of one of the big companies,
to Limitation of expenses They will contend that
the BILL as worded, tends TO destroy the agency
forces which the big companies have spent so much
in recruiting. They say 1t is very possible that 1t
will cause the retirement of number OF the
smaller companies. which are now furnishing re-
liable insurance
The big companies will object to the proposed
reform concerning the distribution of surplus.
the grounds that it viii place the margin OF SOL
vency at weak minimum; that It will decrease
the financial strength and expose the companies TO
impairment and failure that 1t does not take into
consideration the possibility of interest declines
whose SURPRISES must what reserve funds
cannot: that 1t will increase the relative OK
insurance to the longtime premium payers, and
that per cent limit Of the ret value Of policies
in force is not safe provision against Impairment
The companies are particularly afraid of the
peal of Section &c. which will give policyholo7s
the right to bring suit against the company Iney
will say at Albany that 1t will make more money
for cheap lawyers than ambulance chasing. Ihey
fear innumerable suits q heavy increase IN tne
expense of their legal departments and criticism
of petty expenditures every time a poncyhol1er
becomes dissatisfied. They also Will assert that IL
will circulate the belief that the CHIEF law oficer
OF the state the Attorney General. is not a gooo
adviser of the poIicyholder
The way In which the New-York Life has fought
the attempts of c. H. Venner and others to get
list OF its policykoders shows how hard the COM
panies will fight at Albany against the exhibition
OF lists Of pocyholders. The claim will be put for
ward that such exhibition will harm polcyholders
by advertising the fact that they carry insurance
They say It will make insurance a nuisance. as t
will bring down upon the policyhoder flood of
undesirable correspondence and an army of can
vassers. They say 1t is the greatest encouragement
for the practice OF twisting '-persuading policy
holders TO change from company to another
that has ever been invented
WILL FIGHT NEW BUSINESS" LIMIT.
The companies will oppose the reform Of limiting
the amount of business to be written annually
on the grounds that such limitation Will tend to
discourage life insurance, cripple the companies,
encourage the formation of new companies with
multiplied officers and salaries. and that it will
break up the agency organizations of existing COM
panies
There is no end to the objections to the elections
reform. all OF which work back to the proposition
that The present officers of the big companies don't
end of effort get control of companies, it will
make good managements unsettled cause frequent
ton of camoring factions all over the country.
ground that it ignores policyholders Of less than
@ sta1d3 Fa and that It provides an unfair rep
Having suffered already from publicity life in
Albany ey a as S the
bus to curiosity seekers that it viii make
that b %9ch grhsF the
There will be objections on other points from the
companies, including that the Introduction OF ths
vision for the conversion of stock Companies into
mutuals. ana the new method of ascertaining sur
Tho delegation to Albany will be headed by the
eording to present plans. Paul Morton. of the
e chsfe @ dsbody OFT tbs Of 5 sfs s
Lieutenant Governor Timothy L. woodruff. of the
Life. and George E Ide, of the Home Life The
nized standing and authorities life insurance
will form part of the delegation. and it is on
their statements that the officers largely base their
hopes of securing workable reforms. Among the
actuaries who will participate will be Emory Me-
Clintock, of the Mutual Life: Rufus W. Weeks OF
the New-York Life and Joel G.. Vancise, of the
Equitable. Several well known vice-presidents
will attend the hearing Most of the big companies
will be further represented by counsel but unless
an advisory capacity and let the life insurance
Gals do the talking.
The resolution which the Mutual Life trustees
adopted last Thursday instructing President Pea
body and Julien T. Davies regarding this public
hearing is being re-read with some interest In Ger
tain quarters. 1t nstructs these officials to nre-
sent such facts and considerations as in their
judgment may most effectively protect the inter-
ests of the company and it's pocyholders'
The exact meaning of the word "considera tions',
was demanded by one of the trustees at the board
meeting
=, Does that mean that they spend money at
1t was decided that it authorized expenditures
which the officials named thought tustiabIe and
necessary.
A special meeting Of the New-Yort Life trus-
tees Is called for to-day, and 1t Is likely that the
companys position the Armstrong report will
be fully discussed. 1t is possible that the Fowler
committee Will turn In a supplementary report. and
II is certain that questions will asked as to the
companys suits against the Mccall estate and
Andy Hamilton.
ALL DEPENDS ON MALBY.