New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-16

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| sweep them out of Office. He declared 1t would
| be stigma every man. The finger OF scorn
would be pointed at them men whom the
| Legislature turned out of Office. He pointed out
that the policyholders had had the right of cleo
| ton from the beginning He said the fact that
| they had not voted showed that they were salts
! fed.
Mr.. Mcintosh defended the joint account and
syndicate transactions, saying that in each of
them the company profted, and that this was
the one idea that the trustees had in going into
such a transaction. He charged that the COM
mttee wanted to put the trustees into a fac
tional fight and wanted to know" what there
was about the trusteeship for the men who held
the offices that would make them enter parti-
san fight He warned against putting new men
in full control, and said the business would at
once become disorganized, with disastrous re-
suits to the policyholders.
The New York Life, he added. would not OBJ
ject to postponing the annual election until No
vember, even 10 electing in April, and letting
a class Of trustees go out in November. but did
object to throwing its great surplus into the
street ito be gambed for"
MIR. INTERVIEWS SPEECH.
1t was at this point that as has already been
told, Judge Hamilton appeared and made his
violent speech. Samuel Untermyer, representing
the international policyholders' committee which
speaker.
After this amazing spectacle" he declared
''it viii take us minute or two TO get our bear
ings. Some OF us have thought that there was
a difference of opinion in regard to this No
vember clean sweep. After listening to Mr.. Nc
Intosh and Mr.. Moffat, on the one hand, and TO
Mr. Hamilton the other certain of it."
He then began a defence Of the reform meas
ures demanding clean sweep, a low contingency
reserve. and strict limitations Of new business
expense. He called the suits which are being
brought by the companies mere gallery play"
and wanted to know if the committee really
thought there was any chance of the companies
prosecuting themselves. Mr.. Untermyer and
Senator Grady had little encounter over prox-
les. The Senator could not see that combinations
such Mr.. Untermyer represented, would be
good for the policyholder, and in the discussion
they drifted into exchange Of personalities
as to which could gather the most proxies. SEN
ator Armstrong brought them back to the sub
ject gently. Mr.. Untermyer said in part:
have been asked to appear here on behalf OF the
International committee of policyholderS now form
Ing representing principally poiicyhoiderS OF [e
Although no systematic effort has been made to
about forty thousand pohcyholders in two Of the
mutual companies, through the transfer to 1t OF
our committee and the policyhoders whom they
re & cheterfGy approve the RE- mn
legislation In its main features.
OPPONENTS CONDEMNED
The gentlemen, at the heads, of the three great
behalf Of the companies whose poIicyholders they
6s and WITH ba 10
must 9e aware that in the stand they are taking
or the sentiment Of the poIeyRdlders They are
struggling to retain for themselves as much as
predecessors incident to the continued control OF
these great accommodations.
Taking up now the subject Of restrictions of in
vestmenta: What ,, a3rguments have been advanced
be permitted TO invest in stocks to retain their
SO ATTRACTIVE? Let US see The figures for 1906 are
The gross returns Of the Big Three on invest |
nents for 1904 were as follows New-York I4fe, ~
was reached after writing off millions in vaiua-
tons. the effect of which was to increase tho per-
centase of return on the book values OF the in
When we deduct from this result the reasonable
cost and expense Of an honest, conservative man
Weld better returns observation-disclosures their re-
stricons in Investments. which are far more rigid
The objection against stock investments applies
secured BY stock, which are nothing more than
therefore yet inferior class OF security.
AGAINST STOCK INVESTMENT.
The adoption of Mr.. Morton's suggestion to al
low the companies to retain 20 per cent Of their !
on It w0d be e srss wdy m s R9 SOLE
companies 20 the pressure Of these men whom he
trust companies is, of course. far more valuable q
has enough stock TO sell the control and still keep
% Per cent. Each of these companies is to-day, and
will be-, until it can be rescued in sterner grip
Of a one-man power than at any time OF its his |
fail to understand why Mr., Hornblower should /
oppose the recommendations for restricting invest
ments or why he should champion the proposal 10 |
perpit the companies to retain bank and trust COM
pany stocks. The New York Life Insurance Com |
pany. OF which he is director. claims have al
ready fully compiled with the restrictions in
vestments imposed by this provision
has been uniformly recognized the ground that /
these institutions have become by reason of their /
petition has become ruinous
in the right direction and rigid The /
agents of these companies are not proper subjects
The question of the amount of the contingency |
reserve is perhaps the only that presents real
plus has already reached such enormous PROPORTIONS
that no future contingency reserve is or ever Will |
stttqtes an Increasing danger. The accumulation .
OF this great surplus has worked grave injustice
the poHCyhoders as you know.
Your proposed legislation does nothing 10 correct |
it. It is not in the interest of the poIicyholder to
accumulate further reserves at his expense.
Of your legislation the plea of these gentlemen for
accumuatons, VIII fall upon deaf ears.
-, Whatever else you may accomplish, II you fail in
great service to- the community.
You have also been urged not to standardize the |
ject. Among the many devious ways in which the |
Vulnerable forms or policies invented by the in |
genous actuaries Of these companies have been the
The trouble has been that. because OF their vari-
ETY. OF forms the intTicacies of their accounts and
through the operation and construction of Section |
56 OF the Insurance law the defrauded investor has
never been able to reach them.
The attempt to defend the deferred dividend plan /
default that nothing further need be SAID exce ny
,hat 1t never was within the legitimate sphere of
for gambling on the msfortunes of others.