Evening star., 1939-08-30
Insurance Advisers
Hit After Big Firms
Are Called Vicious
Metropolitan Life Head
Rups Monopoly Witness
As His Concern Is FIoyed
By the Associated Press.

By the Associated Press.
President Leroy Lincoln of the
Metropolitan Life Insurance Co. tes-
titled yesterday that most insurance
counselors are discharged employees
of insurance companies who are
engaged In exploitation Of policy
holders"
Mr.. Lincoln appeared before a
Federal Monopoly Subcommittee
after Morris H. Siegel. New York
insurance counselor, had submitted
letter contending that Metro
politan, Prudential and John Han
cock insurance companies had
consistently tried to increase in
surance in force, even when the
practice was harmful to families of
small income.
The Siegel letter was written in
May. 1898, to Mr.. Lincoln, President
Edward Dufield of the Prudential
Isurance Co. of America and Presi-
dent Guy w. Cox of the John
Hancock Mutual Life Insurance Co.
It said the companies had been
guilty Of vicious imposition on
helpless people" in selling one fam
lily OF four policies totaling $18,207
with annual premiums totaling 1926
year. The family's income was
only $35 a week, Mr.. Siegel testified.
Reduced Family's Costs.
Mr. Siegel told the subcommittee
that by readjusting the family's in
surance the Policyholders' Advisory
Council, of which he is a partner,
had reduced the insurance to $12 900,
had cut the premiums to total of
$245 a year and had obtained $689
in cash for the family. He said
his firms fee was sos.
Mr.. Lincoln testified Mr.. Siegel
had been employed by Metropolitan
in 1881, adding that he did not
know whether he resigned or
whether he was discharged, but
if he resigned it was by request be-
cause of Irregularities.
He said Mr.. Siegel subsequently
was re-engaged, but again left the
company in 1888 and started a
radio campaign" to build up a busi-
ness as an insurance counselor.
1T came to the point" the in
surance official continued, where
not only Siegel but other discharged
agents were setting themselves up
aS insurance co,Ipsa1orS
I'VE had many complaints from
policyholders, and they (the coun-
selors1 were doing great harm to
the insurance business.
"Counselors blossomed forth in
every direction. and almost all of
them were discharged employees"
Attacked Counselors.
Mr.. Lincoln said that at the sug-
gestion of Metropolitan agents, Ed
win G, Hill, radio commentator, was
employed to advise policyholders in
radio talks that 'it was unnecessary
to resort to any counselor-that we
We're there to serve the policyhold-
ers and that we have duty to the
policyholders."
The witness added that he re-
garded the activities of insurance
counselors as an exploita ton of
policyhplders" and "a malign in
f1uence on policyholders and on the
honorable insurance agents of the
country"
At one point Mr.. Lincoln referred
to Mr.. Siegel as this person and
Gerhard A. Gesell, committee coun-
sci, interrupted:
Il must insist on having answers
to my questions and not an attack
on another witness" He added that
past relationships between Metro
politan and Mr. Siegel were the sub
Ject OF litigation in New York. Mr..
Slegel testified earlier that he had
filed a libel action against the COM
pany.
You are getting the answers, "
Mr.. Lincoln replied.
Il think this attack is improper
and l must insist that the witness
confine himself to the questions "
Mr. Gesell asserted.