The San Francisco Call. Newspaper, February 23, 1906, Page 4

FRANCISCO CALL FRIDAY, FEBR ARY 23, 1906 MANY CHANGES IN INSURANCE - LAWS ARE URGED BY THE ARMSTRONG INUESTIGATING Report Bristles With Censure of Present Methods and Recommendations for the. Future Safeguarding of Policy Holders. THE RECENT INQUIRY Fl Taw without suramce corporations That all stoek companies. That Il pres after be vision be made t That the terms vision Superintende That stock investments of th of the £ mun al corporations. astie o all comm e or an officer. That the rek with the er. t syndicate transacti gents’ commissidns rohibited. That prov nies. be amended to permit the organization of mu- capital stock. upanies be converted eventually into purely mutual it proxies be rescinded and that the life of proxies here- limited to two months preceding an election. give “a free and efiective expression to the policy-holders in election= 11l present trustees or directors shall expire on No- next and that the next clections be held under the super- t of companies be prohibited, except in stocks hat the limit of annunl new business be fixeg at slm.c;on.m. uresx be passed to prevent political contributions. yists be registered and that « legislative expenses, riexs over $5000 a year be fixed by the trustees, and not by . law be amended to make the receiver equally guilty be prohibited. ds be distributed annually deferred dividend polictes be made uniform and bonuses and prizes 2 be made for publicity in the transactions of the comp: Insurance. each company submit itemised and that the be prohibited. issuance of mso- & Co. by ATTENTION. e consldera- e I and rpose of DR. PIERCE'S REMEDIES Eminent Doctors Praiss its Ingredisnts. We refer to that boon to weak, nervous, suffering -women known as Dr. Pierce’s Favorite Prescription. Dr. Jobn Fyfe one of,the Editorial Staff of TrE Ec MEDICAL REVIEW says of Unicorn root (Helonias Divica) which is one of the chief ingrediénts of the "Fa- vorjte Prescription” : “A remedy which invariably acts as a uter- ine invigorator * * * makes for normal ac- tivity of the entire reproductive system.” He continues "in Helonlas we have a medic: ment which more fully answers the above purposes than any other drug with which I am acquatnted. In the treatment of diseases pe- culiar to women it is seldom that & case Is seen which does not present some indication for this remedial agent.” Dr. Fyfe further " The follow cations for Helonlas (Unicorn root). Pain sching in the back, with leucorrheea; or atonic (weak) conditions of the reproductive organs of wor ritability, assoclated with chronic diseases of the reproductive organs of women, constant msation of heat in the region of the kid- ys: menorrhagia (flooding), due to & weak: od condition of the reproductive system; amenorrhees (suppressed or absent monthly periods ), arising from or accompanying an abpormal condition of the digestive organs nd an@mic (thin blood) habit; dregeing sations in the extreme lower part of the domen.” 1f more or le are present, no invalid woman can do tter than take Dr. Pierce’s Favorite ription, one of the lead Ingredi- of which is Unicorn root, or Helonias, d the medical propprties of which it »st faithfully represents, / Of Golden Seal root, another prominent ingredient of *Favorite Presmi)nun.' Prof. Finley Ellingwood, M. D., of Ben- nett Medical College, Chicago, says: It is <& Important remedy in disordersof | the womix _In all catarrhal conditions * ¢ ¢ and general enfeeblement, it is useful.” Zrof. John M. Scudder, M. D., late of Cincinnati, says of Golden Seal root : “In relstion to its general effects on the system, there i& no medicine tn use about which there ts such general unanimity of opinion. It is universally regarded as the tonic useful in sll debilitated states.” Prof. Bartholow, M. D., of Jefferson Medical College, says of Golden Seal : “Valusble in uterine hemorrh: menor- rhagia (flooding) and congestive rheea (painful mensts Ay o P et € above Dal ¢ gn{ienw and cures the diseases for which ¥ aTe led. ~ | | | <£b{ orivileged to make and fle with the su- cetve I { { are amoug the leading | . mental depression and ir- | s of the above symptoms | 4 Thirteenth—Remedies of policy hollers or 0 resort to the teenth—Forms of policies. ity and state Supervision. committee recommends that Article the insurance law be so amended to permit the formation atual corporations without capital stock to transact the business of life in- ance and thorized to be connected therewith of - stock cc that at least 50 persons have sub- to become members therein in amount of least $1,00,000 and provided, further, that it thesame deposits with the lent of insurance that are re- stock corporations formed for purposes. ction 200, permitting the incorporation npanies under the co-operative or assessment plan, should be amended so not permit such companies to be corporated in the future and foreign apanies of this sort not ing business in this State should permitted to enter the State. MISUSE OF OFFICIAL POWER. not ncerning the so-called mutual com- nies, the committee says Notwithetanding _their theoretical _rights, policy ve had little or no voice in the mans t. Entrenched Lehind proxies, coliccted subservienth n r long periods, un voked, the officers of these fed unassailable 1o exercise desp ck of a coul casily agents and r expressly re- companies have tic power. unmixe: e a U Ownership of stock corpora- re more se- [ st fertile sou s been Howe: e case of a irresponsibility of offical much this may be expected olute stock control, in that mutual company it proceeds from a flagrant digregard of the law of its being it Wguld be plainly unwise that the ent of a life insurance company e rendered unstable or that its ver- uld be frequently changed, it is of st_importance that officers should realize their direct responsibility to those whom represent and should rely for their con- uance in office u t a practical inability > gepose them. the policy ng at least $1000 of insurance in force, prop- d States and countries, giving with the Superin- similar lists_should the. home office of also open to inspec- licy holders ‘within each State and forelgn country, ehould be filed at the gen agencies of the company in such juri Voting should be limited to those been insured at least one year be- election and whose policies are still force when the clection is held. The board tees or directors should annually nomi- andidates to be voted for at.the next d ehould file its nominations with perintendent of Insurance at least four to inspection at poration. List: the m aonths before the election, together with a | designation of persons to reoeive proxies to vote for such candidates, It should also be provided that any group of 100. members should perintendent gether with independent nominations, names of . persons who will proxies to vote for the candidates, at least three months before the election. The corporation should be required at least two monthg prior to the election to mall to each policy holder notice of the election, together with & suitable ballot containing the names of all the candidates whose nominations have | Quly flled, with properly addressed enve- { enclosed for the return of the ballot. - The | pave been fixed In i to give opportunity to reach .distant | poliey holders. Votes should be limited to the | nominated candidates and_suitable provisions | to- re- b Top periods aboye entipned u be made for new nominations and the cesting of votes under proxies in case of the ath or Incapacity of any person nominated. Provision should also be made for the proper custody of ballots recelved by mail and dis- interested persons should be appointed to act as inspectors of election, | As to the stock companies, the commit- tee recommends mutualization. LAW CHANGES RECOMMENDED. On the subject of investments of life insutance companies, the committee, after declaring against “‘syndicates,” recom- mends that the law be amended so as to provide: 1. That mo investment in the corporation shall be permitted exc stocks of mutual corporations. 2. That investments in bonds secured ' to the extent of more than one-thind of the value of the entire security therefor by the hypothe- cation of corporatjon stock shall be prohibited. 3. That no loans shall be made on suc stocks and bonds which are not the subject of purchase undér the above provisions. | "4, That every company now owning stocks | or bonds of the prohibited class shall be -re- | quired to dispose of the same within five years | from December 31, 1906, and each year.priar | thereto shalf make a reduction of the amount | of such investments to.an sxtent approved by | the Snuverintendént 6f Insurance. | 5. The statutes should also forhid alltsyn- | dicate participations, transactions for purchase |and sale on joint account and the making of | any agreement providing that the - company shall withhold' from sale for any time or sul ject to the discretion of others any securities Which it may own or acquire. . | 6 1t should al#o’be provided that no officer or director should be pecuniarily. interested, cither as prineipal, coprincipal agent or bene- | ficiary, in any purchase, sale or loan-made by | the corporation, except in case of a loan upon | his_poticy. | The committee recommends limiting the | amount of new business which each of | the larger companies - may take to '5150.000.000 a year, and that no company | doing business in the State, except the | industrial companies, shall issue policies | In_excess of certain prescribed Nmits, Contributions by insurance corporations for political purposes should be strictly forbidden. The committee recommends the passage of an unequivocal and dras- tie measure to remedy this evil. Not only treated as'a waste of corporate moneys, should it be expressly prohibited and thereunder | for such other purposes as | pro- | ured upon their lives and shall 1ve each pald in one full annual prem- in cash upon the insurance sub- | already trans- | ositions 'and have been | e of evils in adminis- | proved efficiency and | 3 these objects in view, the following blan is reported: At least five months prior 1o each election, lists of policy holders hav- ,_between the amount of | 'L REVIEW OF TESTIMONY AT " RECOMMENDATIONS MADE BY ARMSTRONG COMMITTEE but any officer, director or agent mak- ing, authorizing or consenting to such contribution shall be guilty of a misde- meanor and the pfohibition should be ex- ‘tended to ‘all corporate contributions of this character. CORRUPTING OF LEGISLATURES. As 16 lobbying, the committee says: Nothing disclosed by the investigation de- gerves more gerious attention than the sys- temitic efforts of the large Insurance com- panies to control a large part of the legisla- tion of the State. They have.bsen organized into an offensive and deiensive glliunce to pro- cure or to prevent the passage of laws affect- ing not only insurance, but a great varlety of important interests to which, through sub- , sldiary companies or through the contributions of their officers, they have become related. Thelr operations have extended beyond the State and the countty has been divided into districts, o that each ¢ompany might perform conveniently its share of the Wwork. Enorm- {ous sums have been expended in a surrep- | titious manner. Irregular accounts have been | kept to conceal the payments for which proper | vouchers have not been required. This course of conduct has created a widespread conviction that large portions of this money has been dishonestly used. Andrew Fields, who represented the Mutual and the Equitable in legislative matters and was _in control of the supply department of the former company, remained beyond jurisdic- [tion duricg the sessions of the committee. | The general solicitor of the Mutual, to whom the chairmen of the committee on @xpenditures entrusted large sums of money. died just be- fore the beginning of the Investigation and apparently left no account as to how the money bkad been =pent. > Andrew Hamilton, who within ten years recelyed upward of $1,000,000 from the New York Life Insurance Company upon the war- rant of its president, in connection With Its bureau of legislation and taxaton, has re- mained. abroad and has falled to render any proper aceount showing the disposition of the money. The officers of the company say that they have no knowledge of the uses to which it was put Officers of the Equitable from | whem light might have been expected upon the disbursement of their company elther re- mained out of jurisdiction or have been dis- ! abled by iliness. On account of the absence of the necessary witnesses. and the lack of proper vouchers the committee has bg&n ul |able to trace the money sald to have been dishursed in connection with legislation. But while it is sufficiently evident that large sums have been disbursed for improper pur- it is also clear that payments !c_r con- fidential outlays exempt from audit have fur- | nished abundant opportunities for misappro- priations. The committee suggests the neces- sity of requiring a strict accounting from \hf)ba Who. are responsible for the payments as well as from the agents who have recelved the | moneg's: COMB | ¥ has been in panies have | poses “CINCH” BILLS. sted that the Insurance com- ) continuously menaced by the introduction improper and ill-advised slative measures in many States that they ave been compelled to maintain a constant atchfulness and to resort to secret means to defeat them. An insurance corporation, how- ever, holds a position of pecullar advantage fn osing any legislative measure which really \tagonizes. the interests of policy holders. A very large proportion of the voters of the Statg hold policies of life Insurance. It is easy | for the company to apprise them of hostile legislative measutes, and in addition a depart- | ment of the State government exists for their protection, whose recommendations have rarely falled to recelve proper consideration in the Legislature. It is no: a difficult matter to di- | rect public attention to an objectionable bill affecting life insurance corporations or to have opposing' argument and criticlsm effectively presented. Again, if, in spite of argument fairly and ‘publicly presented; the Legislature insists on passing a law inimical to the true interests of the companies, it is not the officers hut the policy holders who must bear the loss, and the | consequences which can readily be pointed out are almost certain to bring about an early re- peal of the obnoxious legisiation, The employ- ment of agents to disburse large sums and of clandestine methods to defeat legislation is wholly imexcusable. The pernicious activities of corporate agents | in matters of legislation demand that the pres- | ent freedom of lobbying should be restricted. They have brought suspiclon upon impogtant proceedings- of the Legislature and have' ex- posed its members to consequent assault. The Leglslature owes it to itself, as far s possible, 1o stop the lavish expenditure of moneys osten- sibly for services in connection with the sup- port of or opposition to bills, generally be- | lteved to be used for corrupt purposes. The | Legislature should free itself from the stigma which now attaches to the progress of meas- ures affecting important Interests. The Jaws against bribery and corruption, of- tenses which are difficult of proof, are suffi- clently stringent, but an effort should be made to strike at the root of. the evil by requiring, under proper penalties, full publicity with re- gard to moneys expended in connection with matters before the Legislature. Corporations should be required to keep accounts and vouchers, In which all such payments should be fully detalled and receipted for, and an ade- quate statement regarding them should form part, of such reports as may be required. In the case of insurance corporations the | remeay lies, first, generally within the re- quirement of a proper authorization of all ex- pepditares and vouchers, stating in detail the purposes for which moneys pald for legal ex- penses in connection gith legislative matters have ‘been expended. @knd further, the com- pany should be compelled to set forth in its | annual statement to the superintendent of in- | surance all sums %0 disbursed, giving the names of the payees. the amounts pald and the specific purpose of the payment. Professional services ‘in promoting legisla. tion may be entirely honorable and are fre- quently necessary. -~ We are mot inclined to recomniend legislation on this subject which will interfere with the presentation to a legis- lator of the views of his constituents, or of citizens generally, but we know thaf where legisiation 1is -promoted or opposed by paid profeasional advocates the matter should be the subject of suitzble regulation. REMEDY FOR THE EVIL. The committeey theréfore, recommends that the legislative law be so amended that every person retained or employed for compensation as counsel or agent to promote or oppose the passage of bills or resolutions by efther house or executive approval.of such measures shall, before entering uypon the. service, file in the office of the Secretary of State. a writing stat- ing the name or names of his employer, to- gether with a brief description 0f the leglsla- tive ‘matter in reference to-which the ‘service is to be rendered. The Secretary of State should be requjred to Keep,a docket to be known as the “docket of legislative appearances,’’ with approvriate blanks and ‘ndices in which the entered. Fees tingent .on legislative action Should ‘be prohibited, It should also be mads the duty of every corporation and assoclation doing business 1a tHe State within two months after the adjournment of the Legislature to file with the Secretary, of State an itemized statement. duly verified, showing iIn detall ail expenses pald for Incutred in connection with legislation pending at the last session, includ- ing all disbursements or compensation paid or payable to counsel or agents, Exception may be made of the duly ae- credited _counsel of - municipalities, public boards and public institutions and of the or- dinary pro{éssional services iu drafting bills or advising clients as to the construction and et- tect Wu ‘or” pehding legislation where the onal service- 18 not_otherwise - con- nected with legislative action. Violation of the iaw should be made a m! and the fallure to file the statements required should subject the offender to appropriate ties. The committee deems it inadvisable to rec- ommend that the Legislature attempt to pre- seribe the expenditures of Insurance corpora- vons. The -Legislature cannot undertake the management of the business. In seeking to se- cure an economical administration it should g.xt nvemy“flfl l'l::n-mh deulmvulu le tate -supervision "an uterly able effort to prescrive details. The ture should afm to perm} freedom of mana ment subject! to #«ll regulations and com- ree o thoatt s laries by ute, but it shouid wise to.limi 8 e Sopene t:;fl ot por wm the X Ve dortain amount. sy ufiw FEF AL or any exeou- and should be ‘the Superinten ance. o I LIMITATION OF NEW BUSINESS. The evi ', ‘makes it clear pany lore net by any tive officer, Dial stat name [of counsel and ‘agent may-be properly | e e to & marked degree of competition to which they have hitherto been subject. Some Hmita- tion of the expense in getting business is im- peratively required, otherwise there is little reason to doubt that there will be a contini ance of the present extravagant methods. i The committee does not recommend that the rate of commissions be prescribed by law. It is recommended that commissions should be uniform, that is to say, that while the rate may vary according to the plan of insurance, the compensation should not be greater in amount for any 1000 of insurance at the same age and should be determined by the amount paid in the case of an ordinary. policy, Bonuses, prizes and rewards and other special inducements based upon the size of particular policies or upon the agéregate of insurance written should be prohubited. All commissions should be definitely agreed on in advance and should be a fixed percentage of the premium for each $1000 of insurance. It is also recommended that renewal commissions should be limited to four years and to a certain percentage, say 10 per cent of the first yeal commissions, 8o_that the general restrictio placed tpon the first year's expenses should not be evaded. Loans and advances o agents should be prohibited, The committee recommends that the law be 50 amended that a minimum standard for valu- ation of policies other than industrial should be established, and that preliminary terms in the yaluation' of policies issued after 1906 shouid not be permitted. The Superintendent of Insurance should be required to fix a legal minimum standard. Assessment and co-oper: tive companies should be compelled to main- tain a reserve not cnly equal to the proceeds of one death or dlsability assessment, but als at least equal to the cost of insurance for two policies, {n accordance with the experience table of mortality under the dext call, Any reserve provided for by the articles of aseo- clation or by-laws/ or by the contracts with the members of any life insurance company should be charged as a lability in accordance therewith. PENALTY FOR REBATING. The laws as to rebates are sufficiently stringent, but as a further precaution It is recommended that the penal code should be,| amended 50 as to provide that a person recefv- ing a rebate should be equally guilty with the one who gives it. : With regard to new policies, the provisions of the statutes should be liberalized and the Insurance, in the absence of nétice from the olicy holder, should be automaticaily col- ected for its full amount as long as the re- serve upon his policy will justify. The committee recommends an annual ac- counting and an annual distribution; the com- panles protecting themselves against fuctua- tions in values by the accumulation and the retention of a reascnable contingent fund, the maximum of this fund to be based on a’per- centage of the nominal values of the out- standinz pollcies. The committee believes that mutual panfes and stock companies chartered to transact business upon the mutual basls, or holding themselves gut as transacting busihess on this’ basis, should be forbidden from writing non-participating nolicies. Assuming that the funds belonging to poliey- holders through the opportunities afforded by deferred dividend contracts having been wasted through Jax and corrupt administration. and that not only have the shares of profifs for policy-holders been demanded by secret and arbitrary methods of computation, but that policy-holders have been denied an opportunity to seek relfef in the courts, the committee rec. ommends a repeal of the existing law, which provides that action by the Attorney General should be a conditfon precedent to an order, Judgment or decree for an accounting and that the matter should be left subject to the general provisions of the articles of the code relating to_actions against corporations, The committee recommends the adoption of standard forms of policles, simple in form and in clear and conclse languagg, i3, bs approved | by the superintendents of in! 7 and that the issue of other policles than “those thus provided for should be prohibited. The recommendation as- to the compulsory issue of standard forms does not extend to policies {ssued *by Assessment O co-operative assoclation or fggternal societies. PUBLICITY OF TRANSACTIONS. The companies should be requested to set forth in thelr annual statement apart from thos: matters which the superintendent may otherwise require: 1—The real estate held by the company, the dates of acquisition’ the names of venders, the actual cost, the value at which it is carried upon the company's books,. the market value, the amounts expended during the vear for re- pairs and improvements; the gross and net incorte from each parczl and it any portion of the eame be occupied DLy the company the rental value therof, a statement of any certifi- cate issued by the superintendent extending ¢he time for the disposition thereof and any and all transactions n real estate since the last annual statement 2—The amount of its existing loans upon the security of real property, stating the amount loaned on property In each -State -and county. 3 5—The money loaned by the company to any peréon (cxcept loans upon the security of real property above mentioned), the actual borrow- ers, maturity and rate of interest, the securities held therefor ard the sume particulars with refcrence to any joans made or dischargsd Fince the Jast annual statement. 4—All other property owned by the company (including all securities) whether or not recog- nized Hy the law as proper investments, the date of acqulsition, from whom acanired, the actual ‘cost, the value -at which the same are carried upon the books, the market value, the interest or dividends recefved thereon and also the movements of sccurities and property other than real estate acquiréd and disposed of dur- ing the year, setting forth all such property purchased or soll during the year, with the names of purchasers and scllers, the price paid, the income received and outlays made In con-— nection therewith, 5—A etatement of all commissions pald to any person in sconnection with lcane or pur- chases or sales of any property, glving the com- | gt:«m'zu ®et forth in the dates of payment and the name of the payees. §—A statement of all payments for legal expenses, glylng dates and names and ad- dresses of the payees, 7—A statement of all moneys extended in connection with matters of legislation giving the dates, the legislative measure or proceed- ing in connection with which the payment w: made, the Interest of the company therein, tl amounts of the payments and the names and addresses of the payees, §—A statement of the officers and directors of the proceedings at the last annual election, giving the names of candidates and the num- ber of votes cast for each, and whether in per- son. by proxy or by malil, 9-—<A statement of all the compensation and émoluments received by any officsr or director of tke company or by any person whose com- pensation {8 more than a year, with a statement of the time when and the authority by which the same was fixed. 10-—A statement of the largest balance car- rled in edch bank or trust company during each month of the venr. 11—All death claims resisted or compromised during the year, with particulars as to suma ineured, sums pald and reasons assigned for resisting or -compromising the same in each' case. 12—A complete statement of the profits and losses upon the business transacted during the year, and the sources of such galns or losses, and ‘o statement showing separately ‘the mar- gins ubon -premiums for the first year. of in- surance, 1A statement separately showing the Smount of the saine ot thie company fof fhe year attributable to polivies written after De- cember 31 1900, 14—A statement showing the rates of an- nual dividends:declared during the vear for all plans of -insurance and all durations and for I:Ieo?::lm::h:;"g! 2b.h 35, 45 and ‘fig. ‘:lldh:h. ¥ which vidends have Been calepinted, A statement showing the rates of divi- a declared on deferred dividend bolicies completing their dividend periods for.all plans ot insurance and the precise method by which such dividends have been caloulated. 16—A , statement . showing any and all amounte set apart or provisionally ascertained o Kalculated or held awiiting apportionment on_ policies With dividend perlods longer than one year for all plans of insurance and -all durations and. for ages of entry as aforesald, together With & precise statement n: the meth. ods of calculation by which the same have béen provisionally or otherwise determined. 17-—A statement of any and all reserve or surplug funds held by pany and for hat Dirpose they are claimed respectively to ,r-:o,fimu FOR VIOLATIONS. R o of 108 SO be weade', el rovision of the ;‘.";‘& "d;;'- Penal Code as to perjury should - an 50 a3 to t m:rm the falsity g;mmumumlgr.t:é indietment _shoul Jpresumptively established by proof that the defrndant has made oat trary. Drovisiona of the beg Code as to mis- xlm“l‘ho::ldos ams u::ldm :l‘um - 3 should be amended to make clearer pro- VIfon for cases of falsa smtries In books and Accopnts and the omission from the reports of -uzmlaegm' '“dm:’ law to be stated. € committee fs not prepared to make recome 3 mendationk with rcference to industrial institu. tions further than to say that the subject is one degerving of special {nvestigation. - The most 'serfous evils which have beem disclosed by this inquiry, to wit: The excessive pre- miums, the enormeus lapsed rate and the hard- ships of the agents seem to be inherent in the syscem. * It is ipsisted 1hat the present method is_the most ecanomical that has been proved to be adequgte to the exigencies of the busi- ness. The alternative seems to be presented either of prohibliing” altekcther industrial in- stitution's by private corporations or of per— mitiing its continuance substantially upon the prezent basis. subject to those regulations de- signed to sccure economical administration ap- plicable to all companies alike. The committee takes up the State in- surance department, recommends that further powers be conferred upon the in- surance department, and then says: Most of the evils which have been disclosed by the investigation would have been impos- sible had there been a vigorous performance of the duties alrcudy laid upon the department, a vigilant watchfulness in the interest of policy-holders and a couragcous exercise of the powers whick the statute confers. The committee expresses disapproval of deferred dividends, saying: There s no reason why the dividend should not be annually declared. The deferred divi- dend, plan is to be supported, if at all, on the ground that there should be no interference with freedom of contract. But in this matter freedom of contract should yleld to important public policy. Of all the reforms suggested by the commitice nothing, it is belleved, is more imperatively demanded than that the compa- nies should be compelled to exhibit the results of ‘their management by annual accounting. STATUS OF MUTUAL LIFE. The recommendations of the commit- tee as to remedial legislation are pre- ceded by a resume of the testimony brought out during the investigation in New York City. ! The first company taken up is the Mutual Life Insurance Company. The payments to Robert H. McCurdy and Louis Thebaud, son and son-in-law, respectively, of former President McCurdy, are gone over and the amounts charged to legal expenses on the recommendation of Andrew C. Fields are taken up. The committee points out that Flelds acted 'also for the Equitable. Concerning the moneys paid to_Fields and the maintenance of a house in Albany the committee says: At times members of the Senate, while serv- ing on its insurance committee, lived at his house In Albany which the Mutual maintained. Contributions by the Mutual to the national campaign funds, and, as testi- fied to by Senator Platt, to the State | Republican committee, are recited, and the committee says it is apparent that contributions were made by Insurance companles In State campaigns, with the idea that they would be protected in matters of legislation. The committee finds that the Mutual Life Insurance Company’s accounts and vouchers, both of “legal expenses” and of the “supply department,” are not in a satisfactory condition. The committee declares that, despite extravagant and improper outlays, the Mutual's assets have largely increased’ and that there would seem to be no T son to doubt its entire solvency amd its possession of a large amount of as- sets in excess of all its liabilities, in- i¢luding its legal reserve. Smallpess of dividends on the Mutual Life policies is | declured to be due mainly to the large amounts experided for new business. NEW YORK LIFE CENSURED. The New York Life Insurance Com- pany, the committee finds, has per- mitted its executive officers to disburse enormous sums of money without prop- er accounting. = The transactions with Andrew Hamilton show extraordinary COMMITTEE. o -t B | 1 ] | > 4 NEW YORK STATE SENATOR AT THE HEAD OF THE INSU TIGATING COMMITTEE THAT HAS JUST MADE PUBLIC 0 ITS DELIBERATIONS AND FINDINGS. | g —p abuses, and of Hamilton's explanatory | ceal them in the beooks of the com- statement, sent from Paris, the com- [pany. Detalls of the New York Life's mittee say$ that_the statement is with- | syndicate operations, as reported dur- out suitable specifications. The com- (fing the atlon, are given at pensation of $90.388 pald to ‘Hamilton | length. A e solvency of the New by the New York Life for his work in| York Life the report says securing a court decision adverse t0 &| nare is no ground for questioning ihe sound- new tax law is held to be excessive. Payments by the New York Life to the Republican national campaign com- | Which B mittee are taken up, and the committee | TV 1 ootors of the Eaquitable Life says that, despite vigorous insistence | ,yqyrance Society are censured by the on the propriety of these payments, ap- | parently every effort was made to con- ness of the company. It is absolutely able to meet its engagements, and the serio@s abuses which have been disclosed have not affected its Contlnued om Page 5, Column 4 ‘Boy’s Outfit, Suit---Cap and Extra | Worth Trouysers t.0 Match |$5° <« - 35 Geary Street $9.95 The picture tells the story. Noticé the broad lapels—close fitting collar—swa%ger cut—roomy knickerbock- ers—fancy cheviots in the latest Spring colors — beautiful patterns — plaids and stripes. With this well made, wear-resisting suit we give you an extra pair of pants and cap as pictured, making the engjre outfit well worth $5.00 for $2.95. We are prepared for a rush for this extraordinary offering — the q\;antity is large, but they will go like “wildfire,” and so we advise you to come today or carly tomorrow, if possible. 740 Market Street Cor. Powell & Ellis Arcade Entrance 972 Market