New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-01
GRILL
Bill. REPORTED TO
THE ASSEMBLY.
General Legislature Inrest'go-
tor. Erccpt of Life Com
pauies, Is Contem plated.
rrT Telegraph 70 The Tribune

rrT Telegraph 20 The Tribune
/ Albany. March 31.-The Assembly COM
n1i.tte on WAYS and Means Today unani-
mously reported the resolution OF Assem-
/ blvrnan srcInerney, of Rochester. proViolhe
I Cor joint legislative committee 10 lhVes''-
cste Are insurance companies and other
! Insurance conpanies outside Of the life in
surance field.
The Assembly leaders are iineu UP Denim"
THE resolution ana undoubtedly II VIII pass
/ .t,ot ,,e,-o I. prov!des that the joint com
,,i,toe snail consist of FIVE Asscmbivmen
and three Senators and that the purpose oil
the inouirv shall be the drafting OF reiIe
d,aI LEGISLATION 10 be reported 10 the Legs
/ lature next year the resoiu''
an appropriation of s2o""
! Uitho,,, questioning the value of such :"
investigation as the one proposed os .'"0
/ resolution some members OF ooth plaH0''
~ tho legislature are looking with muci
s,;snicioy1 on this activity at TINS par'I
tir,e. They are inclined TO believe tlst Il
/ is an attempt to sidetrack a broad eer1e''i
irvastigation Of ali forms Of legislative cor
r,,ption or attempted corruption by sunsti-
tufing this investigation, good IN Itself pu'
na~rou, in SCOPE Credit for the plan vs.
given 10 Sneaker wadsworth and his leaders
! by the skeptics
! Advocates Of the general INVESTIGATION
saw that they don't intend 10 have that slos-
tracked by this proposition or by any QUIT
means \ special committee authorized 10
! investigate improper attempts 10 'nnueHce
legisla ticn by any person or concern "ouiu
b4 entirely competent to handle the FIRE in
surance scandals as well as any othel ilh'
matters they maintain. Where the Arm
evils in the life insurance business ITSELF
the FIRE Insurance scandals. these legislators
saw. have appeared TO be IN the improper
use or attempted improper use of money 20
influence legislation. That situation corr
n1ittee searching for facts regarding lests-
alive corruption of any nature could handle.
and be IN a better position 10 cure by leg
islst ton than a committee empowered 70
search into the methods of doing business
by the fire insurance companies. That field
Of work these legislators say. Is being
handled exceliently by Superintendent
fiotchkiss.
Liz. Former Resolution.
The McInerney resolution is drawn prac-
tica7lv word for word Ike the one creating
/ -he Armstrong committee, for which Gov
! eruOr Hughes was counsel. The preamble
recites the fact that recent disclosures
made in the course of the investigation
conducted BY Superintendent Hotchkiss
showed that fire insurance company funds
| had been ''misa appropriated. misapplied and
| used for illegal and questionable purposes.
The committee. under the resolution, would
| be authorized to investigate the affairs OF
all insurance companies doing business in
| this state other than life concerns, "includ-
| ing the relations maintained by such COM
panies with the Legislature and the De-
partment of Insurance and the effective
ness of the control OF said department over
the said companies
| Assembly leaders grant that the time has
come for an investigation Of the fire iDsur-
ance scandals They say that this pro-
! cedure by a legislative committee would
be WELCOMED by Superintendent Hotchkiss,
as the committee would have far broader
powers than his and could take up mat
tiers which he under his legal limitations
is unable to touch.
Il believe the time has come for a legis-
lative investigation of the fire insurance
companies" said Mr.. Merritt, the majority
leader Il favor this resolution. and will
do all l can to help its adoption. ] favor
this investigation just ! favor any in
1estigation of specific charges about spe-
cific persons or affairs. l have never be-
lieved in going after ducks with a 1S-inch
gun or in hunting any game with brass
band"
Mcinerneys Argument.
Assemblyman Mcinerney himself mad.
public a FORMAL statement. as follows.
Rottenness in the method of conducting
fire insurance business caused my intro
ductiOn of this resolution during the first
week of the legislative session this year
From all parts OF the state people have
voiced protests against the fire insurance
companies and their arbitrary methods.
The companies have maintained exchanges
and boards in various cities and cornmu-
mites of the state for the purpose of en-
forcing their high handed abuses.
District attorneys from various counties
have held inqusitions before the grand
juries of their respective counties, vol
unes Of testimony have been taken, but
SO thoroughly were the boards and ex-
changes organized that the inyestigs ton
came to naught. The insurance men, when
examined before the grand jury, refused
Sc testify, claiming their refusal was
based upon their exemption; that VIVA,
they would say might tend 10 incriminate
them.
The laws on conspiracy in this state
arc Inadequate 10 cope with these cum
ningly organized boards Various amend
Inents have been suggested, but none of
them seems 10 embody The right lines Of
thought.
The laws against monOpolies and COM
bmes require Strengthening so as to pro
vide a means Of protecting the policy
holder The people have groaned under
. conditions imposed by the Insurance com
panies. enduring their gross exactions
yielding to their one-sided manner of ap.
praisal and submitting TO ntolera bic con.
ditions until the time was ripe for ny
| resolution
In 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 poli
cyholders to pay 25 per cent extra pre-
MUM No good reason existed whatever
for this imposition. They have criticised
the fire insurance departments. they hav.
demanded more fire insurance apparatu
, and have threatened cities that if they die
not 90 as ordered they would raise the
b | 5teS of insurance.
| If 4 man has A fire, under his policy he
names one appra User, the insurance com
pany names an appraiser, and those tUC
appraisers name a third appraiser Tn.
/ insured can nominate until he is black il
the face and the Insurance appraiser vii
? not accept the man named by the insured
| In the mean time business is held up. TIL
insured is anxious Of getting back TO bust
FA O|13ryc or