New-York tribune., 1906-05-07

rendered opinions as 10 the effect or pen,n 1epis
lation or the construction OF bills The Armstrong
legitimate. 90
LAWYERS OPPOSED "PERJ1,Rv. mr.
The perjury bill raised great ob,ac,,or fror,
many lawyers who favored the rest ~ sto ,,.
ance legislation. IL provided that vhera ,n a.,
action for perjury based on a sworn stateToent
another contradictory sworn state,,o,,. - -.
duced I'm evidence It should be considerea ,,
lacle evidence OF the guilt OF the defendant COM
PeIiing him to give explanation of the circuv,
stances surrounding the making Of the contradic
tory statements. The necessity for this bill exista1
Senator Armstrong explained repeatedl, ~ tha
1ack officers OF insurance companies had of signing
ana swearing to statement setting forth certain
@ raes at one time and at some subsequent time
ming another statement with entirely different con-
tradictory facts. These methods had been used
ne said' in deludng policyhoders or conceaIing
cts Lacts concerning the management OF companies
"A.ch should have been known and prevented
q DiA making it a misdemeanor for any person to
receive rebate any valuable consideration for
taxing insurance another blow at the perni-
.otS practice OF rebating which, the investigation
SI'%al Smo'%eal had grown up from the mad rush for new
Ano.ISSS ana the large commissions paid for it,
rea aGtner bill prevented the trading or Changing Of
grown into HeiI for1 oy tne Companies. which had
ers nS profit frequently losses, for the pocyhoId-
aia somewhat similar to that Of the ''periur, hill
of ofse @ e misdemeanor for any officer or empioye
SosTSS ofcial statements regarding COM
s1 A6teF the other bills had been introduced. the
aeSlSt - committee formulated new one designed
f;o ;SA company undergoing the thrOes Of mutualza-
coTapanp provided that the poicyhOIders of stock
NSS owning stock in that company.
MUCH OPPOSITION TO BIG BILL"
ne ninth bill OF the series. as they were passed.
was the 'big bill.' containing the general amend
nents to the insurance law. In this were the more
This bill it which established the rate for con-
u"sency reserve. the limitation of expenses the
Hillauon Of new business, the standard forms Of
pOi'cS' the means for real naturalization of COM
dends it required ana the compusoTv annual ac
SnsnN, iIe opposition to this measure came from
q tne publicity concerning policyhoders lists and
ana The ssan seiing Of stocks held as investments.
A11TrSSioIs 1rS @ would not he large enough.
eoia fors IN mutual companies this Bill provided that
before an election complete lists Of the
p Stats Superintendent OF Insurance and other lists
p3licyholders might make ticket for the election.
bv mali 1t rtsnc oe voted in person, by proxy or
amendment sought to strike out In the bill Which
to WSdWS 1t Tss ter 9ded st ftsr to allow to s the
TOT ihe making OF the polcyholders ticket had ex-
FOR two full months For stock COMPANIES an e where
bine chi % 70 t eOse Is gwen to policyholders. the
TINS bill provides that all companies chartered
only annual divIdend nocis % companies & may write
the bill does not compel annual distribution Of
the surplus each year, but annual accounting bv
due to him on his insurance If he chooses. he nav
leave II with the company to accumulate or be ap-
Ownership Of stock and bonds in other corpora
What stocks and bonds are now held save col
lateral bonds, must be disposed Of in five wears
Of the sGbday trust @ GO bp%ay with & the tSd Hys
syndicate participation and stock hotatIons
CONTINGENCY RESERVE CHANGES
Changes made in the section regarding con-
tingency reserve as originally drawn, which estab-
Ished a scale. the small companies argued, leaving
not enough margin of safety for them AS the bill
passed. this adjusted to allow ) per cent Of
the net values up to S750Oo0OO be maintained as
the reserve. after that sliding scale decreasing
the values mounted. By this arrangement the
larger companies maintained hand for emer-
gences a sufficient amount while the smaller COM
panies we're permitted TO maintain larger margin
OF safety.
The Limitation Of new business applies only TO
companies chartered in this state. 1t meant to
vestigating committee and some Of their own off,
GERS believed were getting topheavy because of
less than 100000 Of outstanding insurance The
stricting the loadngs on policies and prescribing
that no expenses might be incurred beyond the ag-
of Insurance -Four things, it was estimated. would
be included in the expenses for first year business
commissions, salaries paid TO agents not working
on commission, fees for medical examination and
obtain ample commissions and fair renewals. in the
opinion of the Armstrong committee. The actu-
aries estimated that first year commission of 20
to 80 per cent of the premium could be paid. with
nine renewals Of ~ per cent. which might be com
muted
Standard forms OF policies were prescribed by the
bill with provisions for the acceptance of other
forms by the State Superintendent of Insurance.
Assessment companies were ordered to change
themselves into mutual companies where they had
enough reserve on hand.
leve that each one was perfection. Amendments
TO the general bill will be expected from time to
But from the study of conditions revealed by the
investigation. the special committee thought that
drastic measures would be needed, tempered with
some regard for the experience of the insurance
officials in purely technical affairs: and these bills
were believed 20 combine the requisites