Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1906-03-01
Must be Given by Life
Insurance Companies.
PROBERS REPORT.
The Armstrong Committee Suggests
Remedial legislation to Protect
The Policy Holders.

New York, Feb 23.-The committee
appointed at the last session of the
New York Legislature TO investigate
life insurance made it's report Thurs
day. The report embraces a long re-
view of the testimony taken by the
committee and its recommendations
and conclusions as to remedial legisla-
tion. In addition there is a chapter
devoted to the state insurance de-
partment in which the committee de-
clares that the superintendent of the
department has had ample power to
ascertain the transactions of insur-
ance companies, but the supervision
by the department has not proved a
sufficient protection against extrava-
gance and maladministration.
No substantial amplificaton of the
powers of the department seems nee
essary according to the committee
which holds that most of the evils
which have been disclosed by the in
vestigation would have been impossi-
Bile had there been a vigorous per
formance of the duties already laid
upon the insurance department.
The remedial Legislation recon-
mended by the company provides for
the safeguarding of the rights of pol
icyholders in mutual companies in the
election of directors; recommends that
stock companies be given authority to
retire their stock and become mutual
companies, but that such mutualiza-
tion shall not be compulsory; various
regulations are urged to prevent un-
wise investments and improper syndi-
cate operations; the sale of prohibited
securities within five years is advo-
Gated. A recommendation for the linn
itlng of new business to $3.50 100000 a
year is made; the committee CON
demns the contributions by insurance
companies for political purposes, lob
byfng is condemned and the wisdom
Of economical management is urged
The committee says the accounts of
the Mutual Life Insurance Co. should
be thoroughly examined in order that
the extent to which moneys have been
misapplied and the responsibility for
any misapplication which may be
shown may be determined.
Concerning the New York Life in
surance Co, the committee found that
its transactions with Andrew Hamil-
ton showed extraordinary abuses, and
that the statement sent from Paris by
Hamilton was without suitable specif-
cations.
In taking up the Equitable Life AS
surance Society, the committee tells
of the dissensions last February which
resulted in the reorganization of that
society and in the disclosures which
brought about the legislative inquiry.
The payment of 100000 a year to
Senator Depew by the Equitable, the
committee holds, was not warranted,
the testimony as to the services rem
dered by Senator Depew not appearing
to be sufficient for such payment The
committee also sets forth that it does
not appear what services were render
ed by ex-senator HILL who was paid
$4,000 year. In justice to Mr.. Hill.
the committee says it was not able to
get his testimony upon this subject
because he was too i'll to appear.
The committee finds that in spite of
the Irregularities shown there is no
reason to question the solvency of the
Mutual Life Insurance Co, the New
York Life Insurance Co. nor the Euui-
table Life Assurance Society.