New-York tribune., 1906-03-10
for years favored the limitation Of new business

think that the limit has been reached when the
companies have to spt themselyes ELY up and make
TO the president Of the Mutual IL Life the limitatioa
mended this limitation and also the reduction OF
renewal commissions =,
Of an to The There
sctuary in the country who has any fight with thai
longer Acquaintance with the life agents than I
h 5nd do e hng shep enesvoR dRe
induce competition among the companies 1t does
a tsn-year endowment policy than he does for a
whole life policy.
DO so Ens ssub 6 oa c
any company work under this limitation? 1t would
the cost OF business really is No law regu-
lation will settle 1t without long series of litiga
tion.
The speaker said that II the commissions were
lessened the advertising expenses would in
crease. He declared that he considered live
agents the best advertising. He declared that
he did not believe IN the system OF renewals,
but he asked that the established business of
the companies be not overthrown unless a work
able plan was given in return.
Senator Armstrong wanted TO know why exist
ing policyholders should be taxed TO spread the
cause OF life insurance.
Mr. McClintock said that he should not be
taxed except 10 the extent 10 which he would
profit by a built up reserve. He explained that
Iuosl ol the money tndt went from the reserve
TO obtain business WAS that which came
from lapsed policies. He said that this use was
indorsed by every life insurance manager. He
declared The reason the big companies did not
furnish insurance more cheaply than the small
was that they spent too much money, failed 70
increase their surplus. and had not earned as
large dividends as they should.
w. c. Johnson was the agents spokesman.
He is chairman Of the legislative committee
formed by the various life underwriters asso-
Citations in this state when they learned that
the Armstrong committee had designs their
commissions. On him and his speech yesterday
the agents hope TO have the section restricting
the expense OF procuring new business struck
from the bill. He explained that they
not represented by counsel. because in the last
year the arguments in life insurance had been
long and commissions short. This left short
age in the agents pockets and precluded the
hiring of especial talent. Mr.. Johnson said In
part
The result o; the enforcement OF the drastic lin
itations proposed would be:
Of the % hs @ fsnfE a%s
The agency pients Of The Companies are real and
similar in a sense to the goodwill and selling
forces of a mercantile establishment. Capable
agents have TO be educated 10 the business trained
and -ri rdieyel92ed 3I by experience
the copanes now doing business e
therein. thus depriving its citizens Of the oppor-
those companies which have opposed rather than than
contributed 70 the evils which The committee has
discovered and is endeavoring
od 0 t deprive Of an occupation and means Of live
are employed as agents by the companies which
VIII Withdraw and drive out OF the insurance busi>
ness the agents OF the NewYork State companies.
ARMSTRONG ASKS MANY QUESTIONS.
Senator Armstrong explained that it was the
first chance the committee had had for heart
to-heart talk with an agent He asked many
questions, especially on renewals and the matter
of agents realizing on renewals. Mr.. Johnson's
answers created much favorable opinion of the
justice Of the agents cause, and there were
predictions that this part OF the bill would be
decidedly modified.
r. V Lindabury. counsel for the Prudential
Insurance Company of America, speaking for
the companies outside OF the state, said the bill
limiting the expense would not enable outside
companies 10 deal fairly with agents and pay
living salaries. He declared that this would
work great hardship and be of direct disad-
vantage to the policyholders. The policyholders
should not be considered at the expense of the
agent, nor should he be robbed Of living wages
Senator Armstrong remarked that the COM
panies could get along without agents, but not
without policy holders.
Yes, and get smaller and smaller each year."
said Mr.. Lndabury.
Not at ALL declared Senator Armstrong
Very well. then. abolish the agent but don't
starve him 10 DEATH
Then Mr. Lndabury took up the real object Of
his address, a warning to make the provisions
for reform apply TO the New-York State COM
panies. or they might expect retaliation. He
called particular attention to the matter Of real
estate requirements outside the state. asking
that IT be made to apply only TO domestic trans
fers. He desired that the provision restricting
the issuance Of both participating and non-p par
ticipating policies be rewritten to apply
only 10 this state. He said that TO try to make
any Of these provisions operative in other states
was In violation Of the laws Of comfy. He be-
Leved that publicity and competition would force
these foreign companies to conform to the re-
strlctions put upon the New-york companies il
those restrictions were of value
ActUary Sartel OF the State Mutual Life As
surance Company OF Massachusetts said. in a
spirit or sadness not of spite that his COM
pahy could see no course but TO withdraw from
the state. for II could not comply with the two
standards il must insist doing business on a
cash surrender value basis. He said that he did
not believe the Massachusetts laws would
change.
Jchn II Hoiconlbe. president OF the Phoenix
mutual LIE Insurance Company OF Hartford
nun, declared that the restrictions in the way
OF taxation and examination which New-York
Htate already put on outside companies were as
severe burden as they could bear. He was
.Fin IN TIE conviction that agents could not be
olspensed with. He wanted every facility and
assistance given the small polcyholder.