The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-01
TO PROBE FIRE INSURANCE
THE M'INERNEY RESOLI TION
REPORTED FAVORlBLI.

"a Provides Tor . Commlttfe 0T five Seua-
tiers and Three Assrmbiymrn Co Cen
Duct the Investigation Rottrnne~a
Charged In the CSmpAnies Methods
AI.BASY. March SI.-The Assembly
Ways and Means Committee az a meeting
held Immediately after the Assembly
ssasion to-day decided TO report favorably
the resolution introduced On January ~
by AseemblymAn Mclnerney tRep) OF
Rochester calling for An Investigation
OF all insurance companies except life
ccEr panies.
Chairman Merritt OF the Ways and
Meana COMMITTEES said thai the Arm
strong committee Of 1905 had looked
into the affairs Of ths life COMPANIES only
and that this proposed investigation
would start where the life Insurance
Investigation left OF. and would 90 into
the Affairs Of the FIRE. casualty and other
lines of insurance corporations. Tbs
r,--olution provides for JOINT COMMITTEES
&c three SENATORS and five Assemblymen
to conduct the Investigation. and the
committee u to report to the newt Legi>a-
ture. IL has power To SIT during the
summer and fall months, and receives an
appropriation 81 81. 600 Tor expenses
The resolution reviews the reform in
suranoe laws affecting life companler
which followed the Armstrong lnvest.ga-
ton in 1905 and suggests that the laws
governing fire. accident, casualty ana
other insurance corporations REQUIRE re-
vision in the interest OF the policyhoIders.
The committee il to he appointed by the
Lieutenant Governor and the Speaker OF
the Assembly. and u may ait anywhere
in the State all through the summer ana
fall months and il not required 10 report
81. Il UNnaeN NJ
appropriation Of S25.OOO In incorporates
in the resolution for the expenses OF the
committee
Both Speaker watiswOrth aud Chairman
Merritt Of the Ways and Means Com
mittee believe that the fire insurance
officials who have heen 30 ready tn tell
all they know about legislative corrup-
ton FUNDS during ths HOtchki@S inquiry
should have all the opportunity which
the full powers Of a legislative oom-
mittee would make possible to unburden
themselves upon this question. OF course
a legislative committee will have much
more power than has Supt. HotchkiSs
and can enforce the attendance OF wit
ne~ses and recommend punishment Tor
contempt.
-Rottsnneas in the method Of conduct
ing FIRE insurance business. sad ASSEM-
blyman McInerney. caused my introduce
ton OF this resolution during the nrst
week OF the present legislative session.
From all parts Of the state people have
voiced their protests against the IRE
insurance companies and their arbitrary
methods. The companies have main
tanned exchanges and boards IN various
cities and communities OF the state Tor
the purpose OF enforcing their high
handed abuse. District Attorneys from
various counties have held lnquisitIons
before the Grand Juries Of their respec-
tive counties volumes Of testimony have
been taken. but 30 thoroughly were the
boards and exchanges Organized that the
investigation came 10 naught The in-
suFance men when examined before the
Grand Jury refused 20 testify. claiming
that their refusal was based on their
exemption that what they would say might
tend to incriminate them.
The laws on conspiracy IN this state
are inadequate To cope with those cum
ningly organized boards. Various amend
ments have been suggested. but none OF
them Seems 20 embndy the right lines II
thought The laws against monopohes
and combines require strengthening 20
as 20 provide a means Of projecting the
polcyholder
I'm VARIOUS cities OF the State where a
few fires occurred from accidental causes
the local fire insurance boards met and
placed a slip on each policy which caused
the pollcyholders TO pay Is per cent.
extra premium No good reason existed
whatever for this imposition. They have
criticised the fire insurance departments.
they have demanded more fire insurance
apparatus and have threatened cities that
II they did not do as ordered they would
raise the rates OF insurance II a man nas
a fire under his policy he names one APP
prai ser the Insurance company names an
appraiser and those two appraisers name
a third appraiser The insured can nOui-
nate until he - black IN the face and the
Insurance appraiser Will not accept the
man named by the insured In the mean
time business - held up, the insured -
ANXIOUS TO get hack 20 business but the
Insurance. companies will not agree 70
the third appraiser until they get an
appraiser who ~ IN sympathy with the
company. That gives the company two
APPRAISERS and the insured one.
1T - stated on authority that II a man
rEG=ss much objection - their hIgh
handed methods ne endures the penalty
% being blackhsted and can get no insur-
ance IN this State such cases have come
under nv observation. | believe ths
situation n rotten 10 the core. ] believe
that insurance conditions are "A stencil IN
the public nostrils. and the purpose OF my
resolution - 60 bring about remedial
legislation