The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-01-31
INVESTIGATION
UNLIKEL Y.
Judiciary Committee Hears
Protests Against Legisla-
tive Inquiry Into Banks,
Trust and Insurance Com
panies
GRIGGS'S STRONG PLEA
CoLBYMARTIN PEOPLES ARGu-
MENTs IN FAVOR OF THEIR
RESOLUTION NOT CoGENT
ENOUGH, IT IS THOUGHT, TO
INFLUENCE THE LEGISLATURE


Special to 1.-The Jersey City News.'')
TRENTON, Jan. 81, 1906.-That
there will be no legislative investigation
of the insurance companies, banks, trust
companies and other similar institutions
of the, State, at least this year, was
practically made certain yesterday after
neon at the close of the public hearing
given by the judiciary Committee of the
Senate and the Banks and Insurance
Committee of the House upon the Colby
Martin resolution demanding such inyes-
tigation.
The Colby Martin people could offer
no good reason why such an investigation
should be held, except that the New York
investigation of insurance had afforded
grounds for one, and that in order to re-
store the public confidence in the in
surance companies doing business in this
State it would be good thing to turn
the searchlight upon them and ascertain
whether or not they conducted their busi-
ness on business principle.
Assemblyman Martin acted as spokes-
man for the Colbyites. He denied that
there was any intention to cast any re-
Election on the banking institutions of the
State and stated that the only reason
they had been included in the resolution
was that they were affiliated with the
insurance companies. 1t was upon his
suggestion however, that banks were
eliminated from the scope of the investi-
CATION. He also suggested that all trust
companies except those allied with insur-
ance companies should also be eliminated
and then offered a new resolution that a
joint committee of both Houses should
examine into life insurance companies
and the relations of their officers to their
investments. This practically confined the
scope of the pronosed investigation TO
the three life insurance companies of the
State.
From the outset it has been known
that the object of the Colbyites has been
to secure an investigation of the Pru-
Dental Company's affairs more than to
INQUIRE into or interfere with any other
insurance company or banking institu-
tion of the State, but just how this could
be accomplished without exposing their
hand and making direct assault upon
the Prudential and its allied interests
was a difficult problem. BY asking for
general investigation of insurance com
panies. including bank, trust companies,
etc. the Colbyites believed they, could
strike the blow wherever it was desired.
In proposing such scheme the Col
byites committed fatal blunder. They
failed 10 realize that the banking institu-
tons and trust companies We're pow
erful factor in New jersey and that to
attempt to publicly investigate their bus
mess without some good reason other
than to connect them with the Pruden-
tial Company's business would arouse 8
storm of opposition.
Representative bankers from all parts
of the State attended the hearing yes
terday and the protests that they entered
against an investigation without any
cause. except that which was kept un-
der cover, so thoroughly frightened the
Colbyites that they We're really glad to
eliminate such Institutions from the in
vestigation. The Bankers Association
of New Jersey had retained ex-United
States Attorney General Griggs to argue
their cause before the joint committees
and present reasons why it would be
harmful to include the banks. Mr.. Mar
! tins withdrawal of these Institutions
from the resolution prevented Mr.. Griggs
! from making his argument. but when he
arose to address the assemblage he new
ertheless took occasion to throw cold
water upon the proposition Of holding
| any kind of an investigation. either of