New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-22
HUGHES WILL HAZE WAY.
Insurance Legislation To Be in
accord scitk His Uishes.
GEv Telegraph TO The Tribune !

{ Albany Feb. 2l.-Insursnce legislation This
sion is going TO he handled solely with eve to
Governor Hughes's approval. Tho legislators hay-
ing seen the attitude taken by the Governor in the
Kelsey case. 90 not intend 10 dare the lightning
unnecessarily. That condition of affairs probably
viii result in tho defeat death in committee Of
The DUEL BILL permitting Insurance companies TO
invest in bonds OF persons corporations secured
by mortgages on real estate. which has been crit-
cised severely on many sides as being unwise and
possibly dangerous
Alter Walter Linduer, counsel for the Title Guar
antee and Trust Company of New York had fin
isled a long argument for this measure before the
Assembly Insurance Committee last night. Assem-
blyman Rogers asked him
Now. if we report this bill and it is passed.
what DO Won suppose the man downstairs viii say
about it? VII he let il 60 through?'
The Attorney General queried Mr.. Lindner,
apparently misunderstanding Mr. RogeIss gesture
toward the Executive Chambe. He has nothing
TO do with it
NO. no. l didn't mean him" said Mr. Rogers
81 meant the Governor. VIII he approve this
bin?"
Mr. Lindner had no adequate reply. Several
members OF the Insurance Committee. after the
hearing, said that insurance legislation amending
the Armstrong committees reform laws. this
bill does. was ticklish' just now, and they prob
ably would vote againsc the biz. The committee
took no action the measure.
In defence OF the measure Mr. Lindner, who said
that il came solely from the title companies,
a broader
the investment Of their surplus. 1t would work
10 harm 70 the insurance companies. he said. since
they would he protected really by TWO equities
IN the bond of the person corporation, the
other in the mortgage secured by real estate. The
hill. IN an amendment forced by bitter opposition
its original form, provides that the interest o.:
the company in such mortgage shall be ''un-
numbered. and superior 10 every other right or
interest therein" Nj Iindner declared that this
bill would help real estate investors. who would
be abe to get money Oh mortgages from Insurance.
companies and. under companion bills embodying
the same principle from banks, which they can
not do ROW. He declared that It meant
permit insurance companies 10 invest 81 de-
bentures, which is specifically prohibited by the
Armstrong committee laws.
Because Of the opinion held here tina. the bill
WAS introduced originally The request of soma
the hearing to all the insurance companies. James
McKeen general counsel for the Mutual, wrote
him that the bill was not Introduced at the re-
quest OF the Mutual any other company that hs
knew about, but that he had nothing particular 10
say IN favor OF it.
The Rearing last night set legisa tors 10 thinking
phase OF the bill heretofore not mentioned.
Some insurance companies. shown before
the Armstrong committee, regard title guara tee
ues necessary side lines. and directors
ing OF MI Lindner this measure would increase the
Of the directors and stockholders OF the
title companies by the OF money belonging 20
the insurance companies Many legislators are
bringing back the indirect benefits to insurance d-
rectors from the Of money of their own COM
psnies, which striAingly illustrated in many
cases by the insurance investigation.