Perth Amboy evening news., 1906-08-17
Insurance Company Made a
Clean Breast Of It's Methods
and Conditions and
Welcomed the
Chance.
No Graft for Anyone and the Money
of the POIicyhOIders Is Held In
Thirty Banks or Invested in
Bonds Bought in the
Open Market.

~ ~ NHN PBNSAaA ~ &OhA
recently appointed by the leg
stature.
New Jersey has three domestic
,ompanies-the Colonial of this city
md the Prudential and Mutual Ben
fit of Newark. Although all three
.estifed before the Armstrong COM
in New York, it was expected
hat the inquiry by the New Jersey
committee would be far more
thorough and searching than the
New York hearing.
Quite naturally, interest in this
has centered in the examina-
ton of the Colonial. Nearly every
large city of Importance in the Union
can now claim a local life insurance
and Jersey City's sole pro-
duct of this kind in recent years has
been the Colonial. Hence the resi-
dents of this city and county, who
have watched with interest the pro-
gress of this company since its or
ganization nine years ago, felt a pc
interest in the outcome of its
investigation at the hands of Counsel
William H. Corbin and the senate
committee.
Despite the fact that the majority
of its officers and directors were
home-bred and we'll known in this
section of the state, the revelations
as to certain features of the life in
business. brought to light by
the Armstrong inquiry, have caused
a general suspicion to attach to the
entire business in general and to al
most every company in particular.
Hence the people of this county well
coined this New Jersey investigation
an opportunity to get a true line
on the Colonial and it's methods.
Mr.. Ernest J. Heppenheimer, Sec
ond vice-president of the company,
was the only witness from the Col
onial on the stand. Other officers of
the company were in attendance at
the hearing, prepared to testify as to
any detail of its business, should &C.
casion require. Mr.. Heppenheimer's
testimony brought out many details
about the company and its methods
of interest to anyone who has a life
insurance policy.
Mr.. Heppenheimer, on being
sworn, in answer to a question by
Counsel Corbin, stated that the cap
ital stock of the Colonial was $780,
600, issued and fully paid, and
authorized; shareholders
were required 10 contribute a sur
plus to provide for the heavy ex-
penses incidental to the establish
ment of an insurance company.
Mr.. Corbin-'Has your company
vet paid any ~dividends?"
'None at all to stockholders, but
for the past four years we have been
paying dividends to policyholders.'
rs your company on a paying
basis?"
eyes. 1t has been for some time"
"What salary is paid your presi-
dent?'
Nothing. The question of econ
omical management has always re-
ceived the closest attention of our
officers, and it seemed fitting to
President Young that he should APP
ply this principal to himself. Ac-
cordingly he has steadfastly declined
to accept any compensation for his
services, and although the matter OF
salary has been preached to him on
several occasions he has refused to
entertain the same"
Does he receive any other COM
pensation?"
None whatever"
what do your directors and COM
members receiver"
Nothing at ALL"
"How are your assets invested?"
'In real estate and bonds"
do you carry any stocks?"
"None whatever"
where do you purchase your
bonds?"
'In the open market, wherever we
can obtain the best price"
Has any officer or director OF the
company had any connection with
syndicate purchaser"
"Have they aver proflted In any
way by any sales to or by the Co
lonial?"
mot to the extent of one cent"
How m ~ have you expended to
influence legislation?"
Nothing"
Have you contributed at all for
political purposes
mot one dollar"
Mr.. Corbin: Where do you de-
post your funds?"
'In thirty banks scattered over the
territory in which we operate"
"What is thai territory"
New Jersey, New York and Penn
.sylvania."
How many active agents have
you in all capacities?"
"About ESQ"
"What do they earn?"
From $13 a week to $35 and up
wards"
by the way. have you a policy in
your company"
"a fairly large one"
did you receive or deduct any
commissions on your pr~emiums?"
II did not. paid. and the COM
)any received the full amount"
"What classes of insurance does
he Colonial ~issue?"
Its principal divisions are indus
rial insurance, where premiums are
weekly and ordinary insur-
nee, In amounts from $500 to $780,
100, with premiums payable annual
semi-annually or quarterly"
What Is the present proportion of
outstanding insurance."
Twelve million dollars industrial
nd about [M . : m Ann @r1fua444 ~