The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-12
AWAIT OsULLIyAN,S ANSWER.
Novel In Insurance Criminal Cases Expected
This Week.

Important developments on the criminal
Of the insurance scandal are expected
his week. Judge O'Sullivan will probably
reply 70 the presentment which the Grand
Jury made asking for advice as to the GRIM
inality of campaign contributions by officers
Of a corporation.
In the event of Judge O'Sullivan holding
that the making Of such contributions
constitutes larceny, quick action ls ex-
pected from the District Attorney. il
Judge O'Sullivan is against indictments
other phases OF the insurance scandal will
undoubtedly be taken up by the District
Attorney without delay.
The American Association OF Pubic
Accountants announced yesterday that the
following legislation will be advocated by
the association "a a corrective of the in
suTance evils:
/. An act to amend section II Of the in
surance law, dealing with the reports OF
| corporations. so as to provide that annual
reports shall be submitted on the first day
OF January, or within four Instead or two
months thereafter. and that the statement
| shall be certified by Il public accountant
| who has been in practice on his own account
for at least three years prior TO the date OF
such certificate, and who shall have been
I appointed by the policyholders to make and
shall have made an audit OF the acoounts
of such CORPORATION for the period covered
by the report showing its financial condition;
also providing for q true statement or the
| corporation's income and expenditure for
the twelve months ended oil the 3lst day OF
December.
.. An act providing as follows: At the
annual meeting OF the policyholders there
shall be elected a public accountant who has
been in practice on his own account Tor not
Less than three years immediately prior TO the
date of his election. to audit the accounts Of
the company for the year ending oh-Decem-
ber.Sl next. Such public accountant shall
have fun and free access TO all books. records
and documents OF the company. In the
event of the failure Of the pollcyholders to
elect an accountant. one shall be appointed
by the State Superintendent within ten days
after the annual meeting. The accountant
shall report to the officers OF the company
and to the Superintendent OF Insurance.
stating whether. in his opinion. the statement
Of assets and liabilities Ia properly dra% n
so as to show the actual financial condition
of the company. A complete copy OF the
accountants report shall be forwarded to
every pollcyholder Withlh thirty uays OF the
date thereof.
g.. Amendments TO the proposed insurance
bill, Senate No. SIS, to require that the Su-
perintendent of Insurance be a public &C.
countant: that at least one OF his deputies
be an accountant, aud also one OF his eI-
aminers. To provide. also, that the State
superintendent OF Insurance may, at his
discretion, accept. in lieu OF the examinations
prescribed, the reports of public accountants
duly appointed by the policyholders.
Insurance men who heard yesterday Of
the bills which the accountants want
enacted expressed the opinion that such
legislation would be q mighty good thing
at least for the accountants.