New-York tribune., 1906-07-17
INSURANCE LAWS
,,fp 4NEES HIT N. y. 4CTS.
la TO NesC Jersey Committees
ossstions- Watkins Testifcs.
rpv telegraph to The Tribune !

n..;ee snd both the counsel Civilian II.
ID LSnsly Johnson) were present
--s,n sas5 the committee had sent out a
r.aassging information ana had received
e -ooina lie then offered another signed
go 10 armstrong report which will be used
4 ~ .,,.-aication He also offered the ins,r
i ~ Wisconsin. and the report Of the de-
n that state for 1906. The latter was
h.,suse It contained a gain and loss sheet
81 o,,sep.iaI Insurance Company. The re
=. colorado and Massachusetts Insurance
1 -ssts ard copies Of the laws of these
-.re likewise offered. There was also
90 report Of The Massachusetts department.
l S-..s n June 1896 which was the latest state
I -, o. the question
1 v the replies received was one from the
- Association Of Iowa. which protests
-. any change OF the law. The Buffalo Life
ai,.,s Company wrote that the Ne7y York in
D,ion was bad and hoped New Jersey would
1 -. its conservative course It calls the re-
| Ner York investigation absurdity The
| 80 eonpany considered publicity the best cure
=, ,,srrance evils.
] 2 ~,Tnscticut Mutual Life Insurance Company
--ote that it saw no reason why a change
l ,s - made regarding securities. II criticised
l .-rsir0ng report severely in detail
=. hartford Life Company wrote that the
/ ..r7Dg committee asked questions OF the Con-
l s,,t companies. and in every case none of the
i 4 .is 10 have existed in New York prevailed
i stare lie t1GrIIOru concern he
- +be great companies were responsible for the
l Il sseosed Il believed the stock OF the Penn
I ,.ris and New York Central the highest class
l ! s.nrities There had been no pools OF syndi-
4 80 IN Connecticut, it said.
i ~ Ema Life Insurance Company. through its
4 s.president wrote disapprovingly of the New
I - ,svs He considered them too drastic and
/ .-ght they would not work we'll He thought
] = toms Of policies should not be prescribed by
/ q and did not think the law of a state should
r 10 regulate foreign companies.
70 Masonic Life Insurance Company Of Buffalo
. - large clientele in New Jersey, forwarded lis
1 .-i-5ny as given 10 the New York investigators
1 1 tboushs thag Investigation very unfair There
l :. assen thousand policyholders of the company
/ Z ysE Jersey
N oorhln offered the report of a subcommittee
/ r tbs convention Of state commissioners held in
fz,sgo list April in which reference was made 10
.ss decisions Of ths Armstrong committee ana the
,srlsli0ns suggested The report said the states
1s5ua exercise more influence ana have more CON
tol over the insurance companies This was the
,sDor submitted 10 Congress by the President 1t
sE The state should interfere and there should he
nas strict annual accounting. Standard forms
Z. paliss the report said. should be prepared The
A1ms,Fsng forms were. on the whole, approved
ER. WATKINS on THE STAND.
Bau5 Watkins Commissioner of the Banking
rsd Insurance Department was the first witness.
Es SID all the New Jersey companies had been
examined once since he appointed. in 1903 He
SD IRE examinations were made by an actuary ap-
Wn1sd by the department
Mesrz Galpn and Harwin, regularly connected
vita the department accompanied by David Parks
Fsker Tie man engaged by the department
Wien me reports came in the department went
osF them 10 II they were correct 50 Ear as the
assss were concerned
On examination Mr. Watkins said in his
bdgment these was difference between stock
oupaEas and mutual companies. The salaries
night BE- high but he thought that was matter
.r tn stockholders
DO you maintain asked Mr. Corbin, that the
j surplus in a stock company belongs TO its stock
holders while mutual companies it belongs to the
Fatuhodegsg"
Yes SIT"
What would prevent The stockholders taking
lit surplus? BY order Of the directors?"
Nothing that ] know Of was Mr.. watkinss
reply
Should NOT the assets Of the company belong to
TIE FoLeyhoiders2'
Ao as construe the law was the reply
He called attention to the existing law, which
Egs directors of stock companies may pay out in
e5ia IS nor impaired That was not the case
viz mutual companies
] think the Commissioners Interpretation of the
.. correct, said Mr.. COrbin.
a tAs request Of The committee Mr. Watkins
Ice suggestions regarding the work Of the de-
I-r'nent- He dia not think he had any right he
ia sEeaey said 70 go into the question Of salaries
siock companies If the Prudential stockhold-
- y exanpie. I'D rot object to the salaries Of
1s oacers he did not see why he should raise
As to re Mutual BENEFIT. ne asked for
1rs g lhe ofleers and their annual salaries
or65. 500 e'es'''n any Of them inquired Mr.
20 sir said Mr Watkins. The salaries all
aea Eessonabie TIE president. for instance.
sayes ~ . year ] consider that extremely
7 should have thought a little longer. but /
80 Eould have Jet il go The way IN which
- - mutual Benefit is managed, and the ability
Sf.led ls & ty -ts head make the president worth.
,1oE a5out The ColoniaI?"
Ny recollection IS that with the exception of
- - ohoers, Tho received small amounts, nobody
this caused laughter IN which everybody Joined
49, sosieAlng 10 nls suggestions. Mr. Watkins was
- 80 aow Il happened that Mr. Fackler and out
- aet0srles received pay from the insurance coin
ss-.s instead - from the department and the
~ N lheht vas kept IN ignorance Of the amounts
- ssae Commissioner said it was matter Of prac-
- EsA-ch had come down to him He had contem-
s.s s-ssa change for some time. aud believed he
tss.s e make II without any legislation. and he eE
70 MAKE SUGGESTIONS LATER.
ne committee requested Mr Watkins to give it
= suggestions on any phase OF the work. He said
N'uia after he had been TO the National Con-
..-loh Of Commissioners in September That was
bSs9e bsSSss99 e and Mr. Watkins left the stand.
era r. Esfks tacker Of New YORK then tooA ~ II1e
bss-at5 D. Do He had been employed by. the state
a. 'SIlleni Insurance companies. pollcyholaeIs:
r said be- had been employed by the New
~ &. department early 1877. He declared
- 90 New Jersey Mutual insolvent IA 1877, and
- 'iApsny went into the hands or a receiver
- Bssa asd examined the Prudential and Mutual
ir5slss t.fee times IN the last ten years he eA-
R1I1 lle Colonial once. On close questioning M
=. esd - stated how be 6xed the valuations of poll
49,. 80. sho hoR a premium was determined on. The
r. non was largely technical
tiAief attention was called 10 some ol
F~-,rrss oAca5ions. lu which he had taken strong
,-e-- against the large companies ana thelr IN
hsi.o ne said II was now almost lmposslple to
h lIeI2! and thorough examinations lie sald
y v-e...3n aad been more than confirmed since
&. lye us pamphlet, about fourteen years ago
tissihecaiee the Dig surplus OF the large COM
b - = j Invited rash ana Unwise investInents
N5s.L5 cFsciors When asked by Mr.. Corpln
aTgi De thought big insurance companies
s.-s g.i -nase or control bank and trust com
&c. Alf FacF1er said Decidedly no. Iney
- lot 90 into tie banking business.
a. ESQ ss1G he considered the smaller insur-
e er,nps-lies the safer. in these days.