Perth Amboy evening news., 1906-02-23
THE EVILS OF
NSURANC &c.
Official Report of Armstrong
Committee Is n-.DraStiC
Remedies.

ALBANY. y. Y. Feb. 23.-The off
cial report of the Armstrong investi-
eating committee. recommending dras-
tic and sweeping reforms in life iusuf-
ance business. has been at last present
ed to the legislature. With it We're the
bills embodying the committees rec
concentrations. Senator Armstrong has
obtained permission to submit a sup
Elemental report concerning the stand
ard forms of life insurance policies,
which the committee was unable to get
in shape in time TO go before the legis-
lature at this time.
The committee in its report has rec
commended drastic remedies for all The
insurance evils disclosed in its recent
investigation. 1t would mutualize all
life insurance companies, make the pol
icy holders Il factor in their manage
ment. curb e-Xtravagances in manage
ment and in salaries to officers, do
away with syndicate transactions, safe
guard Investments. prohibit contribu-
tons for political purposes, stamp out
lobbying, prevent the big companies
from increasing their business to the
hanger point, abolish preferred divi-
dend policies and make agents COM
missions uniform.
The following are a few of the chief
recommendations:
That the insurance law be amended
TO permit the organization of mutual
corporations without capital stock; that
Ill stock companies be converted event
ually into purely mutual companies:
hat all present proxies be rescinded
and that the life of proxies hereafter
je limited to two months preceding
election; that provision be made to
give "a free and effective expression to
he wish of the policy holders in cleo
tiOns;' that the terms of all present
trustees or directors shall expire on
Nov. - next and that the next cleo
lions he held under the supervision of
he superintendent of insurance; that
stock investments of the companies be
prohibited except in stocks of munich
pal corporations: that the limit of annu-
Il new business be fixed Mt Sl50.000.-
zoo: that a drastic measure be passed
to prevent political contributions; that
lobbyists be registered and hat each
company submit itemiZed accounts of
It's legislative expenses: that all sala-
lies over 5000 a year he fixed by the
.rustees and not by a committee or Off
,er: that the rebate law he amended to
make the receiver equally guilty with
he givcr: that syndicate transactions
Dc prohibited: that dividends be dis
tributed annually and that the isSu-
nee of so called deferred dividend pol
icies be prohibited; that agents com
missions he made uniform and bonuses
and prizes prohibited: that provision
5e made for publicity in the transac-
ions of the companies.
Regarding Governor Odell's Onnec
ton with the shipbuilding matter the
committee says;
Upon the testimony it cannot be said
hat apart from the Introduction of
the Amber bill any threat was made,
but it would seem at the time of the
negotiations that the situation was
such as to make ii appear that there
would be no effort of retaliation.
although the bill was NOT pressed
and MI. Odell's suit was not brought
until a month later. it may he that the
fact of its introduction was sufficient
TO induce Il fear on the part of the of
fcers of the trust company that pro
ceedinSs inimical to its interests might
he taken if those who could initiate
them were not appeased.'
Regarding the insurance department,
The report says that. while the depart
ment has ample facilities and power,
the supervision by the department
does not prove a sufficient protection
against extravaganza and m%aladminis-
tration, and it practically may be said
that in the case Of these large compa-
MES no serious efforts TO insure the
correct administration of their affairs
has been made until within the last
year"
The report says that the accounts of
the Mutual Life Insurance company
should be thoroughly examined in or
der that the extent TO which moneys
have been misapplied and the respon-
sibility for any misapplication which
may be shown may be determined.
Concerning the New York Life In
surancc company, the committee found
that its transactions with Andrew
Hamilton showed extraordinary abuses
and that the statement sent from Paris
by Hamilton was without suitable
specifications.
The directors Of the Equitable Life
Assurance society are censurod by the
committee for nonperformance Of the
functions with which they were clrarg-
ed. For the mos part they have been
i~igureheads," says the report. The
payment Of 100000 Il year to Senator
Depew by the Equitable was not war
ranted, the testimony as to the services
rendered by Senator Depcw not APP
pearing TO Zoe sufficient for such pay
ment. The committee also sets forth
that II does NOT apDpar what services ,