New-York tribune., 1909-05-28
IMAY Do BUSINESS HERE
PTTTSBURG LIFE REPORT.
Insurance Department Demands
Nezc Contract zcith Washington Life

William H Hotchl1ss State Superintendent Of
Insurance, made public at his New York office
yesterday the text of a memorandum on the ap-
plicaton of the PiUtsburg Life and Trust Com
Dany TO do business in this state The Pittsburg
company acquired practically all of the capital
stock of the Washington Life Insurance Company
of New York last September, and in December re-
insured the Washington Life policy obligations.
The Superintendent has found both companies
solvent and unimpaired. and has decided to per-
nit the Pttsburg company to do business in this
state under certain conditions that the latter must
first meet. Mr. Hotchkiss comments sharply on the
sudden removal of the Washington Life assets to
Pittsburg after the reinsurance arrangement was
made. On the other hand. he calls attention to
the action Of the Pittsburg company in return
ing these assets to New York without waiting for
court action, agreeing TO have them under the
trusteeship of the Superintendent of Insurance and
have the business OF the Washington Life regu-
lated and controlled by examiners of the depart
Ineht The basic considerations of the arrangement
suggested by Mr.. Hotchkss include an amended
reinsurance contract, provision establishing in
the accounts Of the Pttsburg company a Wash
ington Life fund. to be credited with all receipts
on account of all Washington Life policies. and a
further provision requiring the retention in New
York State of sufficient amount of assets TO pro-
tect the Washington company -polcyholders
Inc advantages of such a plan, the superinten-
dent points out, that It ends the present trus-
teeship, turns the PittsbUrg company d
business nearly three times as large its own.
qu1ets doubts to the reinsurance contract and
removes causes for further litigation. Also 1t as
sures Washington Life poIiCyhOlders the continu-
ance of the protection Of the New York laws. sets
apart the fund which their premium payments have
created. and insures them against both arbitrary
treatment and possible loss.
Commenting on the result of the examination
into the Pittsburg company. Superintendent Hotch-
kiss says that while the concern solvent at the
time of the reinsurance contract. does not mean
that the character of its is altogether salts
factory. In the judgment OF the department the
proportion Of real estate to total assets is too
large.
The Fttsburg Life and Trust Company gave out a
statement last night which said:
1t has been the purpose of the company ever since
the right SO to rensure the Washington Life In
surance Company was challenged, 10 bring about
an amicable adjustment of the whole situation,
without resort to litigation. believing that such
course was Tor the benefit of all concerned The
company has been at all times confident that a iuil
Nestgajon would disclose that II had not only acted
within its rights, but had so acted for the benefit
Of all concerned. and especially for the benefit OF
I the policyhoiders of both companies
The company has not had time TO consider the
other conditions imposed by the Superintendent Of
IhSNI dhe, but IL VIII meet az rtdSondoie REG llr'
ments. II is quite possible that IL will be found
upon further examination that some Of the coudi-
lions suggested may not be authorized by existing
laws and the rights Of all the parties in
ciuding the policyholders of the Washington Life
After the Pittsbirg company has been charged
WITH every manner OF Wrongdoing II Is especially
hands. and with its soyency and integrity ot man
/ agement yindicated.
! There is still pending for decision by the Court
| of Appeals action brought by William Hepburn
| Russell. policyhoder. restraining the Pittsburg
company from transferring any Of the property Of
the Washington Life and for the appointment of
a temporary receiver the latter company. The
Appellate Division decided adversely on the receiy-
| ership application.