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Exhibits; Report and Index
OF THE
JOINT COMMITTEE
OF THE
SENATE AND ASSEMBLY
OF THE STATE OF NEW YORK
TO INVESTIGATE AND EXAMINE INTO THE BUSINESS
AND AFFAIRS OF
LIFE INSURANCE
COMPANIES
DOING BUSINESS IN THE STATE OF NEW YORK
VOLUME VII
ALBANY, N. Y.
J. B. LYON COMPANY, PRINTERS
J906
COMMITTEE
SENATORS
WILLIAM W. ARMSTRONG, Chairmaa.
WILLIAM J; TULLY,
DANIEL J. RIORDAN.
ASSEMBLYMEN
JAMES T. ROGERS,
ROBERT LYNN COX,
WILLIAM W. WEMPLE,
EZRA P. PRENTICE, Secretary.
JOHN McKEOWN.
COUNSEL
CHARLES E. HUGHES,
JAMES McKEEN. .
Associate Counsel
MATTHEW 0. FLEMING.
EXHIBITS.
EXHIBITS— PART III.
Exhibit No. 982.
i
Tlip following are all the syndicates in which I have partici-
pated and in which the Mutual Life Insurance Company has also
been interested since January 1st, 1900 :
Participation
Third Avenue R. E. 4s $25,000
Pennsylvania Coal Co. Purchase Syndicate (Erie
Penna. Coll.) ,150,000
Pennsylvania Co. Xjuaranteed S^'s 50,000
Reading-Jersey Central Coll 4s 1,000,000
Union Pacific convertible 4s 100,000
JSTavigation Syndicate 75,000
Oregon Short Line Participating 4s 50,000
Metropolitan Street Ry. Refunding Syndicate 375,000
Southern Pacific first Ref. 4 per cent. Syndicate. . . . 100,000
Chicago, Burlington & Quincy Purchase Syndicate. . 775,000
Atchison Debenture 4 per cent. Syndicate 125,000
Phila., Baltimore & Washington L. I. R. R. Syndicate . 75,000
Japanese 6 ,per cent. Sterling Syndicate 25,000
]Sr. Y. Central Deb. 4 per cent. Syndicate 150,000
Japanese 4% per cent. Sterling Syndicate 70,000
Penna, 10- Year 3^2 per cent. Syndicate 250,000
GEORGE F. BAKER.
New York, Sept. 14, 1905.
Exhibit No. 983.
E. L. K, Jr. ^
(In Pencil : Mutual Life.)
STATE INSURANCE EXAMINATION, 1899.
Jan. 11. J. E. HoUingworth $500.00
Jan. 18. J. E. HoUingworth 500.00
Jan. 18. A. S. Thweat 100 . 00
Jan. 25. J. A. HoUingworth 500.00
Jan. 31. A. S. Thweat 55.00
1171
1172 Legislative Insurance Investigation.
Feb. 8. J. A. HoUingworth $75~0.00
Feb. 8. K Coleman 2,500.00
Feb. 15. J.. E. HoUingwortli 500.00
Feb. 23. Louis F. Payn 1,9M. 54
Feb. 23. J. E. HoUingwortb 600.00
Feb. 28. 1 E. HoUingworth Y50 . GO
March 8. J. E. HoUingworth 250.00
March 15. J. E. -HoUingworth 250.00
March 31. J. E. HoUingworth 550.00
April 12. Swayne & Swayne 250.00
April 26. Louis F.Payn 345 . 32
AprU 29. H. W. Dodge 15 .00
May 3. George K. Keed. '. 250.00
May . 3. J. E. HoUingworth 250.00
Jime 21. Louis F. Payn 7,000. 50
ISTothing paid in 1900.
1901.
Jan. 16. Francis Hendricks $10 . 00
Feb. 27. Francis Hendricks 519 . 45
March 6. Francis Hendricks 10.00
March 20. Francis Hendricks 10.00
March 20. Francis Hendricks 10.00
April 10. Francis Hendricks 10 . 00
Sept. 18. Francis Hendricks 171. 10
Dec. 11. Francis Hendricks 2 . 50
. 1902.
Jan. 15. Francis Hendricks $100.00
Jan. 22. Francis Hendricks 5 . 00
March 12. Francis Hendricks 5.00
March 19. Francis Hendricks 20.00
April 2. Francis Hendricks 55.00
April 9. Francis Hendricks. 10.00
April 23. Ins. D'ept. State of Con-
necticut 75 . 00
May 21. Ins. Dept. State of Mary-
land 22 . 00
July 31. F. C. Hendricks 160.39
Sept. 24. Francis Hendricks 9,480 . 12
$743.0 CI
0,842.51
Exhibits — Part III. 11Y3
1903.
Jan. 21. rrancis Hendricks $1,960 . 24
Jan. 14. Francis Hendricks 5 . 00
Jan. 21. Francis Hendricks 5 . 00
Jan. 28. Francis Hendricks 5 . 00
Feb. 18. Francis Hendricks 5 . 00
March 4. Francis Hendricks 6.00
March 25. Francis Hendricks 7 2.00
March 25. Francis Hendricks 5.00
July 31. Francis Hendricks 15,607 . 30
Sept. 16. Francis Hendricks 2,341.47 ^
Sept. 23. Ins. Dept. State of Mary-
land 38.00
Fov, 25. Francis Hendricks 752 . 53
$20,732.54
1904.
Jan. 18. W. A. Fricke $5,000 . 00
Jan. 20. Francis Hendricks 10 . 00
Feb. 17. Francis Hendricks 93 . 00
Feb. 24. Francis Hendricks - 15 . 00
Mar. 16. Francis Hendricks 5.00
Mar. 23. Francis Hendricks 5 . 00
Mar. 30. Francis Hendricks 5 . 00
Apr. 1. Ins. Dept. State of K Y. . . ""60. 00
Apr. 6. Ins. Dept, State of Conn.. 75.00
•June 15. Ins. Dept. State of Conn. . . 9 .00
Sept. 28. Francis Hendricks 55 . 00
Dec. 14. J. H. Oaldenhead 375 . 00
• 5,707.00
i905.
Feb. 21. Francis Hendricks , $5.00^
Feb. 21. Francis Hendricks 1 . 00
Mar. 8. Francis Hendricks 2 . 00
Mar. 8. Francis Hendricks 15 . 00
Mar. 22. Francis Hendricks . ; 5 . OO
Sept, 20. K T. State Ins. Exam 888 . 12
. 916.12
Total amount, 5 years $37,941.22
1174 Legislative Insurance Investigation.
Exhibit Xo. 984.
Oash Balances with Banks and Trust Companies in the
United S'Tates and Canada, Jan. 30 to Dec. 31, 1904.
January.
Central National Bank, N. Y $1,385,.386 . OY
Citizens Central National Bank, N. Y
JSTational City Bank, New York 1,211,863 . 67
New York Security & Trust Co., N. Y., Acct. 1 . 921,927 . 09
New York Security & Trust Co., Account 2. . 63,914.26
New. York Security & Tru^t Co., Account 3 40,715 . 89
New York Security & Trust Co., Account 4 . .' . . 8,272,708 . 05
Natioiial Bank of Commerce, New York 274,826.91
First National Bank, New York 2,152,860.07
Bank of Montreal,, Montreal 198,064. 15
Wells, Fargo & Co.'s Bank San Francisco 105,208 . 62
Hanover National Bank, New York 267,085. 60
City Trust Co., New York. •..■•,.. 110,358.39
First National Bank, Chicago. . .-. 1,90^,870,68
-United States & Canada deposits
$16,907,879.45
Cash, in office 55,694. 81
Total $16,96.3,574. 26
Februaey.
Central National Bank, New York $1,231,057 . 20,
National City Bank, New York 828,438 .93
New York Security & Trust Co., Account 1. . . . 923,167.09
New York Security & Trust Co., Account 2. . . . 55,155.87
New York Security & Trust Co., Account 3 . . . . 44,808. 32
New York Security &. Trust Co., Account 4 7^761,223 .05
National Bank of Commerce. . .♦ 121 315 . 13
First , National Bank ' 2,851^654 . 55
Bank of Montreal , 174 w^ _ 9]^
Wells, Fargo & Co.'s Bank 157 146 . 99
Hanover National Bank . , 113 726.. 62
Exhibits — Part III. 1175
r
Oity Trust Co $110,545 . 74
First ISTational Bank 2,267,089 . 50
United States and Canada deposits
Total $16,639,447.90
Cash in office 70,366 . 49
Total $16,709,814.39
Maech.
Central National Bank ^
Citizens Central National Bank 870,004.40
National City Bank 1,151,997 . 38
New York Security & Trust Co., Account 1. . . . 1,340,094.83
New York Security & Trust Co., Account 2 90,575 .70
New York Security & Trust Co., Account 3 , 63,186 . 78
New York Security & Trust Co., Account 4 ' 6,850,000.00
National Bank of Commerce 495,719 . 32
Eirst National Bank 2,725,864. 24
Bank of Montreal 55,065 . 09
Wells, Fargo & Co.'s Bank .- 129,098 . 52
Hanover National Bank 228,513 . 42
City Trust Co 110,721.32
First National Bank ; 890,728.87
United States & Canada deposits ,
$15,001,569.87
Cash in office 65,645 . 30
Total. .". $15,067,215.17
April.
Central National Bank
Citizens Central National Bank $1,484,273 . 62
National City Bank .' . . 1,143,865 . 23
New York Security & Trust Co.', Account 1 961,623 . 84
New York Security fe'Trust Co., Account 2 22,392 . 86
• New York Security & Trust Co., Account 3 32,856 . 99
New York Security & Trust Co., Account 4 6,850,000 . 00
National Bank of Commerce 711 ,468 . 63
First National Bank 3,642,053 . 61
Bank of Montreal ." 3,023.40
.1176 Legislative Insurance Investigation.
Wells, Fargo & Oo.'s Bank $183,376 . SS
Hanover National Bank 191,704,41
City Trust Co 110,909 . 35
Eirst National Bank .-. . . 1,286,857 . 20
United States & Canada deposits
$16,624,405.52
Cash in office 63,777.85
Total $16,688,183 . 37
Mat.
Central National Bank :^
Citizens' Central National Bank $1,277,582.31
National City Bank 1,030,675.85
New York Seourity & Trust Co., Account 1 1,011,427 . 01
New York Security & Trust Co., Account 2 80,433 . 17
New York Security & Trust Co., Account 3 33,089 : 87
New York Security & Trust Co., Accounrt 4 6,850,000 . 00
National Bank of Commerce 1,003,686 . 55
First National Bank 2,547,879 . 28
Bank of Montreal 79,205.85
Wells, Fargo & Co.'s Bank 252,071 . 62
Hanover National Bank. 220,335. 37
City Trust Co 11,091 . 65
First National Bank 1,004>783 . 53
United States & Canada Deposits
$15,502,262.06
Cash in office 74,106 . 63
Total $15,576,368 . 69
June. '
Central National Bank . .■
Citizens' Central National Bank ~. . . . . $1,232,083.46
National City Bank - 1,033,486. 07
New York Security & Trust Co., Account 1. .,. . 1,011,427.01
New York Security & Trust Co., Account. 2. , . . 49,014.09
New York Security & Trust Co.,, Account o 35,730. 15
New York Security & Trust Co., Account. 4 3,500,000 . 00
Exhibits — Part III. 1177
National Bank of Commerce $875^447 . 19
First National Bank 2,330,602 . 23
Bank of Montreal 73,489 . 38
Wells, Fargo & Co.'-s. Bank. 146,883 . 65
Hanover National Bank .' 256,239"; 97
City Trust Co 11,280.19
First National Bank 1,369,012 . 16
United States & Canada Deposits
$12,024,695.55
Cash in office 88,151 . 91
Total .■ $12,112,847:46
July.
Central National Bank ^
Citizens' Central National Bank $1,523,257 . 81
National City Bank 1,107,780. 3a
New York Security & Trust Co., Account 1 1,106,457 .SO'
New York Security & Trust Co., Account 2 128,410 . 28
New York Security & Trust Co., Account 3 104,965 . 37
New York Security & Trust Co., Account 4 2,500,000 . 00
National Bank of Commerce 1,231,559.18
First National Bank. . . .^ 1,495,124. 05
Bank of Montreal 64,095 . 59
Wells, Fargo & Co.'s Bank 142,391.70
Hanover National Bank 331,538 . 55
City Trust Co 60,182.79
First National Bank, Cliicago 700,473 . 35
United States & Canada deposits
$10,496.30
Cash in office -59,309.15
Total $10,555,545.45
August.
Central National Bank
Citizens' Central National Bank $993,065 . 15
National City Bank 1,072,636.86
New York.Security & Trust Co., Account 1 731,457 . 30
New York Security & Trust Co., Account '2. ... 12,436 . 25
1178 Legislative Insurance Inveitigaiion.
New York Security & Trust Co., Account 3 $25,069 . 51
New York Security & Trust Co., Account 4 2,500,000 00
ISTational Bank of Commerce 473,057 .45
First National Bank 2,092,519.36
Bank of Montreal 24,909 . G9
Wells, Fargo & Co.'s Bank 96,849 .81
Hanover National Bank 195,379 . 75
City Trust Co 60,304.55
First National Bank 90^,816.93
United States & Canada deposits
$9,246,502.62
Cash in office 63,205 . 28
$9,309,707.91!
Septembeb.
Central National Bank
Citizens' Central National Bank $1,327,306.96
'National City Bank 1,370,047. 58
New York Security & Trust Co., Account 1 731,457 . 30
New York Security & Trust Co., Account 2 5,828 43
New York Security & Trust Co., Account 3 8,206 . 64
New York Security & Trust Co., Account 4, . . . 2,500,000 00
National Bank of Commerce . .' 885,784 68
First National Bank 3,648,566 . 67
Bank of Montreal ' 60,408 . 95
Wells, Fargo & Co.'s Bank ' 133,659 . 18
Hanover National Bank 252 140.25
City Trust Co 60,406.96
First National Bank 1,068,964.86
United States & Canada deposits
$12,052,778.46
Cash in office 67,685.48
$12,120,463.94
OCTOBEB.
Central National Bank
Citizens' Central National Bank $1,743,149 . 27^
National City Bank 1,091,579 . 37
New York Security & Trust Co., Account 1 . . . . 749,702 . 05
New York Security & Trust Co., Account 2 53,319 . 88
Exhibits — Part III. 1179
New York Security & Tmst Co., Aceoimt 3 $92,820. 50
New York Security & Trust Co., Account 4 2,500,000.00
Xational Bank of Commerce 919,043 . 18
Fir.st '^iitional Bank 2,273,268 . 24
Bank of jyContreai 14,383 . 51
Wells, Fargo & Go's Bank 211,901 . 87
Hanover National Bank 412,071 . 56
City Trust Co 60,506 . 96
First National Bank 1,221,054. 85
United States & Canada deposits
$11,343,800.60
Cash in office 57,658 . 86
Total $11,401,459.46
NOVEMBEE. .' ■
Central National Bank
Citizens' Central National Bank $1,857,179 .49
National City Bank 690,195.94
New York Security & Trust Co., Account 1 749,702 . 05
Ne^ York Security & Trust Co. Account 2 36,174.97
New York Security & Trust Co., Account 3 20,911 . 23
New York Security & Trust Co., Account 4 2,500,000 . 00
National Bank of Commerce 588,703 . 90
First National Bank 3,531,816.59
Bank of Montreal 142,492.55
Wells, Fargo & Co's Bank 152,040.45
Hanover National Bank 367,793 .73
City Trust Co 60,608.98
First National Bank, Chicago 1,399,256 . 51
United States & Canada deposits
$12,096,876.39
Cash in office ••• 64,312.40
Total $12,161,188.79
December. ;;
Central National Bank
Citizens' Central National Bank. . ■. $2,591,653 . 09
National City Bank 697,879.99
1180 L^islative Insurance Investigation.
New York Security & Trust Co., Account 1 $1,517,145 . 72
New York Security & Trust Co., Account 2 141,273 . 47
New York Security & Trust Co., Account 3 112,543 , 91
New York Security & Trust Co.,, Account 4 2,500,000 . 00
National Bank of Commerce. . . '. 509,039 . 93-
JFirst National Bank 2,272,499 .67
Bank of Montreal 148,115.85
Wells, Fargo & Co's Bank 100,000,00
Hanover National Bank 248,389 . 77
City Trust Co 35,811.65
First National Bank, Chicago 941,504'. 86
United States & Canada deposits 1,155,381 . 65
$12,971,139.56
Cash in office 232,545.03
Total $13,203,684.59
Cash Balances with Foeeign JjovEEiirMENTs and Banks. , ,
Januaey.
European Dept. deposits .,
European Dept. Coll.' .- $2,112.00
J. S. Morgan & Co., London Eng 152,276'. 39
J. S. Morgan & Co., Coll., London, Eng 10,896\64
Bank of Nova Scotia, Halifax, Can 3,000.00
Banco Nacional de Cuba, Havana, Cuba. ..... 27,072.88
Banco Central, Mexicano, Mexico City, Mex. . . 243,758.04
Banco de Durango, Durango, Mex 7,385 .35
Banco Jalisco, Guadalajara, Mex 9,348 . 62
Banco Mercantil de Monterey, Mex 24,632.34
Banco Minero, Chihuabua, Mex 1,387 . 68
Banco Oriental, Pueblo, Mex 4,206. 12
Banco de San Luis Potosi, San Luis Potosi, Mex. 3,258 . 17
Banco Sonora, Guaymas, Mex
Banco Yucateco, Merida, Mex
Bank of Porto Rico, San Juan, Porto Eico. . . . 14,482.58
Bank of Australasia, Wellington, Australia.... 24,332.50
Bank of Australasia, Melbourne, Australia 24,332.60
British Bank of So. America, Rio de Janeiro,
Brazil 234,374.57
Exhibits — Part III. 1181
London and River Plate Bank, Rio de Janeiro,
Brazil $402,533.07
Banco de Chili, Valparaiso, Chili 3,231.40
Wm. E. Grace & Co., Santiago, Chili 41,903.81
Wm. E. Grace & Co., Lima, Peru *2,Y04.4'7
British Bank of So. America, Buenos Ayres, Arg.
' Eep 428,896.95
London & Eiver Plate Bank, Buenos Ayres, Arg.
Eep 22,073.60
Asia & Australia deposits •,• •
Chartered Bank of India, Australia & China, Cal-
cutta, India 50,336.37
Hong Kong & Shanghai Banking Corp., Calcutta
India ^ 64,543.82
Hong Kong & Shanghai Banking Corp., Hong
Kong, China 30,636.56
Hong Kong & Shangai Banking Corp., Manila,
Phil. Islands : 2,810.19
Yokohama Specie Bank, Yokohama, Japan 45 . 21
Japan Government 50,000 . 00
8o. America, West Ind. & Mex. deposits ......
Deutsche Bank, Berlin, Germany
Prussia State Bank, Berlin, Germany
See Handlung Societat, Berlin, Germany
$1,880,973.88
Total January . ., •• $18,844,548.14
Febeuaet.
European Dept. Deposits
European Dept. Coll. . '. ' $1,892.90
J. S. Morgan & Co 1,133,548.08
J. S. Morgan & Co. Coll 27,893.52
Bank of Nova Scotia 3,000.00
Banco Nacional de Cuba 34,200 .-25
Banco Central Mexican© 246,882 . 38
Banco de Durango 11,784. 52
Banco Jalisco ,. 11,505 . 97
Banco Mercantil de Monterey 31,832 . 92
Banco Manero 3,144.64
Banco Oriental 4.434.43
1182 Legislative Insurance Investigation.
Banco I)e San Luis Potosi $7,139 .44
Banco S«ni)ra
Banco Yucateco
Bank of Porto Eico 17,761.05
Bank of Australasia 24,332 . 50
Britisli Bank of So. America 234,374, 57
London & Eiver Plate Bank '. 376,099 . 85
Banco de Chili 3,247.33
Wm. R. Grace & Co 36,151.20
W^. E. Grace & Co . *2,704.47
British Bank of So. America 458,751 . 22
London & Eiver Plate Bank .\ T 22,073 .60
Asia & Australia Deposits
Chartered Bank of India, Aiistralia & China. . . 50,336. 3T
Hong Kong & Shanghai Baaiking Corp ^ 64,543 . 82
Hong Kong & Shanghai Banking Corp 30,636'. 56
Hong Kong & Shanghai Banking Corp 4,215 . 63
Yokohama Specie Bank *9;744. 79
Japan Government -...., , 50,000 . OO
So. America & West Lid. & Mex. Deposits ; . . ^
Deutsche Bank
Prussian State Bank ' , . . . .
See Handlung Societat
■" $2,901,665.99
Total February $19,611,480 . 38
/
Maech. ■
European Dept. Deposits
European Dept. Coll . . ". $1,091,64^ .70
J. S. Morgan & Co. ^1,091,643.70
J. S. Morgan & Co ], . " 62,492.65
Bank of Nova Scotia 3 000. 00
Banco ISTacional de Cuba 36 152 62
Banco Central Mexicano 288 632 . 80
Banco de Durango 12 703 85
Banco Jalisco 10 350 29
Banco Mercantile de Monterey 28 110. 14
Banco Minero "^ 5 093 . 34
Banco Oriental ,., 4 794, J4
Exhibits — Part III. 1183
Banco de San Luis Potosi : $9,010 . 54
Banco Sonora
Banco Yucateco ^
Bank of Porto Eico *3,096.Y4
Bank of Australasia 24,332 . 50
British Bank of So. America 234,374 . 57
London & River Plat© Bank 361,908 . 32
Banco de Chili 3,247 . 33
Wm. R Grace & Co i 178,409.16
Wm. K Grace & Co ^217 . 47
British Bank' of So. America 471,783 . 74
London & River Plate Bank 22,073 . 60.
Asia & Australia Deposits . . .'
Chartered Bank of India, Australia & China. . . 50,336 . 37
Hong Kong & Shanghai Banking Corp -. 64,543.82
Hong Kong & Shanghai Banking Corp 30,636 . 56
Hong Kong & Shanghai Banking Corp 2,850 . 35
Yokohama Specie Bank ^, . . . *9,750 . 00
Japan Government . 50,000 . 00
So. American, West. Ind. & ~Kex. Deposits
Deutsche Bank _.
Prussian State Bank
See Handlung Societat ' ";
$3,058,007.85
, Total March $18,125,223.02
Apeil.
European Dept. Deposits
European Dept. Coll $1,475. 61
J. S. Morgan & Co 1,153,548. 12
J. S. Morgan & Co., C'oU 24,216 . 69'
Bank of ^Tova Scotia 3,000.00
Banco Nacional de Cuba 57,053 .59
Banco Central Mexipano. . . 277,727.25
Banco de Durango ,.-... 19,926 . 97
Banco Jalisco 14,679.77
Banco Mercantil de . Monterey 35,780 . 74
Banco Minero . 7,522 . 36
Banco Oriental -. 5,679 . 14
Banco de San Luis Potosi •• J ] ,323 . 04
1184 Legislative Insurance Investigation.
Banco Sonora ..."
Banco Yucateco
Bank of Porto Eioo *$547 . 96
Bank of Australasia 24,332.50
Bank of Australasia 24,332.50
British Bank of So. America , ■ 234,374. 57
London & Eiver Plate Bank , 337,392 . 67
Banco de Chili ~. 3,247.33
Wm. K Grace & Co 171,544.04
Wm. E. Grace c% Co *2,331.97
British Bank of So. America 292,837.82
London & Eiver Plate Bank 22,073 . 60
Asia &r Australia deposits . :
Chartered Bank of India, Australia & China. .. 50,336.37
Hong Kong & Shanghai Banking Corp 64,543 : 82
Hong Kong & Shanghai Banking Corp. ....... 30,636.56
Jlong Kong & Shanghai Banking Corp 7,603 . 75
Yokohama Specie Bank
Japan Government 50,000 . 00
So. American, West. Ind. & Mex. deposits . . . .,
Deutsche Bank
Prussian State Bank... . . . .,
See Handlung Societat.
$3,122,208.88
Total April , $19,810,392 .25
Mat.
European Dept. deposits ,
European Dept. Ooll $255 . 20
J. S. Morgan & Co. ., 1,517,265.14
J. S. Morgan & Co. Coll ' _19,443 . 22
Rank of Nova Scotia 3 000 . 00
Banco Nacional de Cuba 74 649 . 36
Banco Central Mexicano 278 044. 79
Banco de Durango ." 26 970. 72
Banco Jalisco 15 ggi 15
Banco Mercantil de Monterey 37 434 19
Banco Minero ;v 1 534 23
Banco Oriental -. 7 029 14
Exhibits — Part III. 1185
Banco de San Luis Potosi $14,553 . 04
Banco Sonera
Banco Tueateco
Bask of Porto Eico 4,001.35
^ank of Australasia 24,332 . 50
Bank of Australasia ; 24,332 . 50
British Bank of So. America 24:1,181 . 13
London & Kiver Plate Bank 444,656 .Yl
Banco de Chili 3,247.33
Wm. E.'Grace & Co 156,664.10
Wm. K. Grace & Co *2,730 . 05
British Bank of So. America 502,408 . 12
London Eiver Plate Bank 22,073 . 60
Asia and Australia deposits ,
Chartered Bank of India, Australia & China. . . 51,650.39
Hong Kong & Shanghai Banking Corp 64,543 . 82
^ong Kong & Shanghai Banking Corp 30,636 . 56
Hong Kong & Shanghai Banking Corp 17,586 .30
Yokohama Specie Bank
Japan Government 50,000 . 00
So. America, "West Ind. & Mex. Deposits
Deutsche Bank
Prussian State Bank , ,..,..
See Handlung Societat ......'.
$3,637,260.54
rTotal May $19,213,629.23
June.
European Dept. Deposits
Eiiropean Dept. Coll *51. 80
J. S. Morgan & Co 1,524,327.89
J. S. Morgan & Co. Coll 35,421.56
Bank of Nova Scotia , 3,000.00*
Banco ISTacional de Cuba 53,714.61
■^anco Central Mexicano .' 293,691 . 84
Banco de Durango 21,178 . 28
Banco Jalisco^ , .' 9,650.82
Banco Mercantil de Monterey - 25,521 . 89
Banco Minero 1,305 . 27
38
1186 Legislative Insurance Investigation.
Banco Oriental $6,182 . 39
Banco de San Luis Potosi ". . 10,500.04
Banco Sonera 825 . 17
Banco Yucateco -. , 5,0Y3 . 79
Bank of Porto Rico 3,122.34
Bank of Australasia " 24,332 . 50
Bank of Australasia 24,332 . 50
British Bank of So. America 247,787 . 13
London & Eiver Plate Bank. ,417,090 . 84
„ Banco de Chili. .'. ; 3,247.33
Wm. E. Grace & Co 167,038.65.
Wm. B. Grace & Oo *2,730 . 05 '
British Bank of So. America 516,493 . 97
London & Eiver Plate Bank 22,073 . 60
Asia & Australia Deposits
Chartered Bank of India, Australia & China 51,560 . 39
Hong Kong & Shanghai Banking Corp 64,543 . 82
Hong Kong & Shanghai Banking'Cprp 30,636 . 5&
Hong Kong & Shanghai Banking Corp 3,989 .i31
Yokohama Specie' Bank
Japan Government 50,000 . 00
So. America, West Ind. & Mex. Deposits
Deutsche Banik
Prussian State Bank 499,843 . 75
See Handlung Societat \ . ,
$4,113,794.39
Total June $16,226,641.85
July.
European Dept. deposits
European Dept. Coll $355 < 86
J. S. Morgan & Co 1,309,050 .24
J. S. Morgan & Co., Coll 25,274 . 82
Bank of Nova Scotia 3 OOO . 00
Banco ISFacional de Cuba 68 375 . 99
Banco Central Mexican© 267 034.45
Banco de Durango 24 385 . 72
Banco Jalisco 10,885.20
Banco Mercantil de Monterey; 33,033 . 61
Exhibits — Pari III. 1187
Banco Minero $3,132.49
Banco Oriental '. 8,972 . 39
Banco de San Luis Potosi 13,290 . 04
Banco Sonora 4,966.24
-.Banco Yucateco .' .' 10,156 . 26
Bank of Porto Kico 9,640 .13
Bank of Australasia 24,332 . 50
Bank o*f Australasia 24,332.50
British Bank of So. America 247,787 . 13
London & River Plate Bank 433,947 . 36
Banco de Chili 3,247.33
Wm. E. Grace & Co 136,018 . 62
Wm. B. Grace & Co *242.49
British Ban*^ of So. America 499,136 . 76
London & Eiver Plate Bank 22,403 . 68
Asia & Australia deposits .'
Chartered Bank of India, Australia & China. . • , 51,650.39
Hong Kong & Shanghai Banking Corp 64,543 . '82
Hong Kong & Shanghai Banldng Corp 33,519 . 57
Hong Kong & Shanghai Banking Corp 2,137 . 07
Yokohama Specie Bank
Japan Government 50,000 . 00
So. America, West Ind. & Mex. deposits
Deutsche Bank
Prussian State Bank
See Handlung Societat. ., 986,493 . 75
$4,397,871.43
Total for July $14,953,416.88
August.
European Dept. deposits
European Dept. Coll- 1,218 . 19
J. S. Morgan & Co 1,481,267.75
J. S. Morgan & Co., Coll 34,741.01
Bank of E^ova Scotia 3,000.00
Banco Nacional de Cuba 44,733 . 12.
Banco Central Mexicano 230,553 . 06
Banco de Durapgoi • • • 10,913 . 80
Banco Jalisco' 6,767.67
Banco Mercantil de Monterey ., 21,728 . 09
1188 Legislative Insurance Investigation.
Eauco Minero ,. . $6,132 . 31
Banco Oriental .' 8,085 .46
Banco de San Luis Potosi 8,425 . 54
Banco Sonera ; , 8,343 . 01
Banco Yncateco 17,895.92
Bank of Porto Eico 15,371.08
Bank of Australasia 24,332 . 50
Bank of Australasia 24,3'32 . 50
British Bank of So. America 247,787 . 13
London & Eiver Plate Bank 385,164 . 98
Banco de Chili 3,263 . 09
Wm. E. Grace & Co 150,193 . 94'
Wm. E. Grace & Co . 2,392.49
British Bank of So. America 520,604 . 27
London & Eiver Plate Bank 22,403 . 68
Asia & Australia deposits
Chartered Bank of India, Australia & China 51,650. 39
Hong Kong & Shanghai Banking- Corp - 64,543 . 82
Hong Kong & Shanghai Banking Corp 33,519 . 57
Hong Kong Q Shanghai Banking Corp " 469 . 64
Yokohama Specie Bank
Japan Governmcnl 74,875 . 00
So. America, West Ind. & Mecx. deposits '
Deutsche Bank 477 737 . 85
Prussian State Bank
See Haildlung Societat 4,695,678 . 35
$8,673,340.23
Total August $17,983,048.14
Septembeb.
European Dept. deposits
European Dept. Coll $757 . 19
J. S. Morgan & Co 1,073,830.91
J. S. Morgan & Co. Coll 25,098.10
Bank of IN'oya Scotia ' 3 OOO . 00
Banco ISTacional de Cuba 28 308 . 61
Banco Central Mexicano 244 747 . 87
Banco de Durango 8 876 . 05
Banco Jalisco , . 6,002 . 80
Banco Mercantil de Monterey 18 877 .47
Banco Minero ,. , Q \qq _ '-^1
Exhibits — Part III. 1189
Banco Oriental , $7,167 . 21
Banco de San Luis Potosi 6,410 . 54
Banco Sonora 8,740 . 93
Baneo Tucateco 21,895 .48
Bank of Porto Eico 12,523.06
Bank of Australasia , 24,332 . 50
Bank of Australasia 24,332 .-60
Britisli Bank of So. America ., 247,787 . 13
London & Kiver Plate Bank 376,568 . 98
Banco de Chili 3,263.09
Wm. K. Grace & Co 146,541.96
Wm. E. Grace''& Co *2,392 .49
Britisli Bank of So. America 520,492 . 97
London & Eiver Plate Bant. . . ^ 22,403 . 68
Asia & Australia deposits
Chartered Bank of India, Australia and China . . 51,650 . 39
Hong Kong & Shanghai Banldng Corp 64,543 . 82
Hong Kong & Shanghai Banking Corp 33,63 9 . 57
Hong Kong & Shanghai Banking Corp 624.67
Yokohama Specie Bank
Japan Government 74,875 . 00
Deutsche Bank 477,737 . 85
Prussian Stat« Bank
See Handlung Soeietat 4,695,834.60
^1%,^.^ $8,234,543.21
Total September $20,355,007 . 15
OCTOBBE.-
European Dept. deposits ^ -'. . .
European Dept. Coll . . : $1,122 . 39
J. S. Morgan &r Co 1,281,424.94
,L S. Morgan & Co. Coll 21,311.08
Bank of Nova Scotia 3,000 . 00
Banco Nacional de Cuba 42,949 . 16
Banco Central Mexican© 234,421 . 49
Banco de Durango .~ 10,089 . 58
Banco Jalisco 7,472 . 21
Banco Mercantil de Monterey 33,1:59 .47
Banco Minero 9,800 . 67
Banco Oriental 8,547 . 21
Banco de San Luis Potosi 8.986 . 54
Banco Sonora 11,646 . 56
1190 Legislative Insurance Investigation.
Banco Yusateco , $19,019 .48
Bank of Porto Eico 10,817.41
Bank of Australasia 9,7^3 . 00
Bank of Australasia 24,3,32 . 50
British Bank of So. America 247,787 . 13
London & Eiver Plate Bank 394,283 . 82
Banco de Chili -. 3,263.09
Wm. E. Gra:ce & Co 142,143.12
Wm. E. Grace & Co *2,392.49
British Bank of So. America ' 557,678 .07
London & Eiver Plate Bank 22,403 . 68
Asia & Australia deposits . . . ." ,
" Chartered Bank of India, Australia & Japan ... 55,650 . 39
Hong Kong & Shanghai Banking Corp 64,543 . 82
Hong Kong &> Shanghai Banking Corp 33,519 . 57
Hong Kong & Shanghai Banking Corp 2,915. 97
Yokohama Specie Bank
Japan Government 7i,S75 . 00
So. America, West Ind. & Mex. deposits
Deutsche Bank ' 1,800 . 35
Prussian State Bank
See Handlung Societat , 4,695,834. 60
$8,028,539.81
Total October $19,429,999 . 27
ISTOVEMBEE. I
European Dept. deposits
European Dept. Coll *$1,408 . 59
J. S. Morgan & Co 770,142 . 36
J. S. Morgan & Co. Coll 17,851 . 27
Bank o£ Nova Scotia 3,000 . 00
Banco ISTacional de, Cuba 48,403 . 16
Banco Central Mexicano 226 975 . 70
Banco de Durango 14 809 . 40
Banco Jalisco 8 243 . 40
Banco Mercantil de Monterey 39 783 .47
Banco Minero 13,633 .51
Banco Oriental , 10 872 . 21
Banco de San Luis Potosi 32 799.54
Banco Sonora ', 14 297 . 6-'5
Banco Yucateco 22,320 . 98
Exhibits — Fart III. 1191
Bank of Porto Eico , $22,064.93
Bank of Australasia 2,433 . 25
Bank of Australasia 24,332.50
British Bank of So. America 247,787. 13
London & Eiver Plate Bank 395,004 . 27
Banco de Chili 3,263.0'.!
"Wm. E. Grace & Co 141,316.46
Wm. E. Grace & Co ^^68. 09
British Bank of So. America 571,896 .77
London & Eiver Plate Bank 22,403 . 68
Asia & Austi'alia deposits .". /
Chartered Bank of India, Australia & China. . 51,650.39
Hong Kong & Shanghai Banking Corp 67,125 . 58
Hong Kong & Shanghai Banking Corp 33,519 . 67
Hong Kong & Shanghai Banking Corp 1,081 . 10
Yokohama Specie Bank
Japan Government ."^ 74,875 . 00
So. America, "West Ind. & Mex. Deposits
Deutsche Bank '. 1,800.35
Prussian State Bank
See Handlung Societat
$2,861,562.7
1
Total ISTovemher ■ $15,022,751 . 54
December. '
European Dept. deposits 1,750,024 . 29
European Dept. Coll 1,984.77
J. S. Morgan . 588,479 . 10
J. S. Morgan & Co. Coll 7,187 . 51
Bank of ISTova Scotia 3,000.00
Banco ISTacional de Cuba 71,530 . 65
Banco Central Mexicano 203,949 . 18
Banco de Durango .- 4,650 . 45
Banco Jalisco 864. 31
Banco Mercantil de Monterey 10,815 . 09
Banco Minero ' 12,808.12
Banco Oriental 5,389 . 62
Banco de San Luis Potosi ' 6,226 .06
Banco Sonora 9,555 . 67
Banqo Yucateco 8,947 . 98
Bank of Porto Eico 22,098 . 59
Bank of Australasia
1192 ' Legislative Insurance Invesiigatiou,
— . — I
Bank of Australasia , $24:,332 . 50
British Bank of So. America 247,787. 13
London & Eiver Plate Bank 336,363 .43
Banco de Chili 3,263 . 09
Wm. K. Grace & Co 117,246.58
Wm. R. Gra(3e & Co. ,' 129.28
British Bank of So. America : 583,551-. 55
Londoji & River Plate Bank 22,41)3 . 68
Asia & Australia deposits 178,660 . 85
Chartered Bank of India, Australia & China. . . 51,650.39
Hong Kong & Shanghai Banking Corp .~. ' 67,125 . 68
Hong Kong & Shanghai Banking Corp 33,519 . 57
Hong Kong & Shanghai Banking Corp 1,718. 65
Yokohama Specie Bank
Japan Governmeint Y4 875 . 00
So. America, West Ind. & Mex. Deposits 40,286 .-00
Deutsche Bank
Prussian State Bank
See Handlung Societat
.$4,490,424.72
Total, -December. $17,694,109. 31
*Credit Balance.
Exhibit No 983.
(Will bs found at end of Exhibits.)'
Exhibit No. 986,
Gain and Loss Exhibit. Policies Within Theie Fiest Tbah.
Companies Reserving on the Full IvTet Premium Basis
EQUITABLE :
Expected Losses, 2,041,248.00; Actual' Losses, 901,646.00;
Mortality Gains, 1,139,602.00; Loading, 1,917,445.87; Total
Margins, 3,057,047.87. First year's expenses, 10,364,822!oO.*
3. — Includes advances (less than 7^ for repaid same year")
$3,722,622.45. ^'
Exhibits— Part III. 1193
ISTEW YOEK LIFE:
Expected Losses, 3,03;,000.00; Actual Losses, 1,878,047.00;
Mortality Gain, 1,152,953.00; Loading, 3,127,960.00; Total Mar-
gins, 4,280,913.00; First year's ecxpenses, 11,116,864.00.
MUTUAL:
Expected Losses, 2,064,300.00; Actual Losses, 1,234,349.00;
Mortality Gain, 829,951.00; Loading, 2,140,700.00; Total Mar-
gins, 2,070,651.00; First year's expenses, 9,830,753.46.
GEEMANIA:
Expected Losses, 127,207.34; Actual Losses, 43,318.91; Mor-
tality Gain, 83,888.43; Loding, 112,024.41; Total Margins, 195,-
912.84;' First year's expenses, 686,248.00.
HOME:
Expected Losses, 106,098.00; Actual Losses, 38,230.00; Mor-
tality Gain, 67,368.00; Loading, 104,839.00; Total Margins,
172,707.00 ; First year's expenses, 402,442.92.
MAl^HATTAN:
Expected Losses, 141,350.00; Actual Losses, 31,620.00; Mor-
tality Gain, 109,730.00; Loading, 127,055.34; Total Margins,
236,785.34; First year's expenses, 441,740.58.
MLITROPOLITAN (Ordinary) :
Expected Losses, 782,367.00; Actual Losses, 326,430.00; Mor-
tality G^in, 455,937.00; Loading, 677,180.00; Total Margins,
1,133,117.00; First Year's Expenses, 2,201,445.00.
msriTED STATES :^
' Expected Losses, ,56,467.00; Actual Losses, 20,500.00; Mor-
tality Gain, 35,967.00; Loading, 44,090.27; Total Margins,
80,057.27; First Year's Expenses, 211,145.32.
WASHINGTON":
Expected Losses, 97,487.00; Actual Losses, 51,081.00; Mor-
tality Gain, 46,406.00; Loadings, 92,418.00; Total Margins,
138,824.00; First Year's Expenses,' 467,447.82!
^TNA:
•Expected Losses, 238,345.00; Actual Losses, 124,170.00; Mor-
tality Gain, 114,175.00; Loadiiig, 229,514.00; Total Margins,
343,689.00; First Year's Expenses, 782,252.53,
1, — Adopted Preliminary Term Reserve plans in 1905.
1194 Legislative Insurance Investigation,
EEEKSHIRE:
Expected Losses, 37,913.00; Actual , Losses^ 8,324.00; Mor-
tality Gain, 29,589.00; Loading, 46,539.00; Total Margins,
T6,l 28.00; First Year's Expenses, 437,001.00.
COLONIAL (Ordinary) :
Expected Losses, 5,807.00; Actual Losses, 3,350.00; Mortality
Gain, 2,457.00; Loading,, 7,713.00; Total Margins, 10,170.00;
Eirst Tear's Expenses, 19,395.00.
COLUMBIAN NATIONAL:
Expected Losses, 130,183.22; Actual Losses, 28,872.00; Mor-
tality Gain, 101,311.22; Loading, 135,518.00; Total Margins,
236,829.22; Eirst Year's Expenses, 549,941.95.*
CONNECTICUT GENERAL:
Expected Los'ses, 42,972.00; Actual Losses, 11,674.00; Mor-
tality Gain, 31,298.00; Loading, 24,894.00; Total Margins, 56,-
192.00; First Year's Expenses, 167,816.30.
CONNECTICUT MUTUAL:
Expected Losses, 87,993.00; Actual Losses, 17,500.00; Mor-
taHty Gain, 70,493.00; Loading, 62,386.87; Total Margins, 136,-
879.87; First Year's Expenses, 294,786.05.
JOHN HANCOCK (Ordinary) :
Expected Losses, 257,340.00; Actual Losses, 74^207.00; Mor-
^tality Gain, 183,133.00; Loading, 281,066.00; Total-Margins,
264,199.00; First Year's Expenses, 844,008.00.'
MASSACHUSETTS MUTUAL:
Expected Losses, 206,124.00; Actual Losses, 76,000.00; Mor-
tality Gain, 130,124.00; Loading, 213,603.00; Total Margins,'
343,727.'00; First Year's Expenses, 483,298.64.
4. — Made up by the" Company as follows: Initial expenses
paid by the home office less $138,640.36 contributed by Ameri-
can Agency Co., $41,216.95. Eaalized by American Agency Co.
from sale of American Securities Co. stock issued because of
1904 business, $816,250, less estimated value of selling sto'ck,
$97,950, estimated value of special guarantee of renewals, $179,-
575, and $30,000 advanced in 1903 as cost of new business and
repaid in 1904.
Exhibits — Part III. 1195
MUTUAL BENEFIT :
Expected Losses, 404,000.00; Actual Losses, 139,0,69.00; Mor-
tality Gain, 264,93L00; Loading, 300,000;* Total Margins
564,931.00; Eirst Year's Expenses, 1,043,980.00.
MUTUAL BEISTEFIT:
Expected Losses, 404,000.00; Actual Losses, 139,069.00; Mor-
tality Gain, 264,931.00; Loading, 300,000;^ Total Margins,
564,931.00; First Year's Expenses, 1,043,980.00.
NATIONAL VEEMONl .
Expected Losses, 165,031.00; Actual Losses, 49,925.00; Mor-
tality Gain, 115,106.00; Loading, 184,522.87; Total Margins,
299,628.87; First Year's Expenses, 607,734.11.
NEW ENGLAND MUTUAL:
'Expected Losses, 171,099.43; Actual Losses, 84,500.00; Mor-
tality Gain, 86,599.43; Loading,. 153,117.00; Total Mar^ns,
239,716.43; First Year's Expenses, 513,094.69.
NORTHWESTERN MUTUAL:
Expected Losses, 673,044.00 ; Actual Losses, 211,170.00 ; Mor-
tality Gain, 461,874.00; Loading, 667,467.02; Total Margins,
1,129,341.02; First Year's Expenses, 1,520,310.47.
PENN MUTUAL:
Expected Losses, 564,096.00; Actual Losses, 236,903.00; Mor-
tality Gain, 327,193.00 ;_ Loading, 629,242.18; Total Margins,
956,435.18; First Year's" Expenses, 1,551,574.38.
PHCENIX MUTUAL:
Expected Losses, 114,149.00; Actual Losses, 44,747.00; Mor-
tality Gain, 69,402.00 ; Loading, 93,859.00 ; Total Margins, 163,-
261.00; First Year's Expenses, 438,277.62.
PROVIDENT LIFE AND TRUST :
Expected Losses, 160,000.00*; Actual Losses, 41,477.00; Mor-
tality Gain, 118,523.00; Loading, 118,186.49; Total Margins,
236,609.49; First Year's Expenses, 320,127-.19.
PRUDENTAL (Ordinary) :
Expected Losses, 815^955.00; Actual Losses, 533,348.00; Mor-
tality Gain, 282,607.00; Loading, 784,910.00; Total Margins,
1,067,517.00 f First Year's Expenses, 2,643,689.00.
Estimated.
1196 Legislative Insurance Investigation.
Expected Losses, 24,4J9.19; Actual Losses, 6,000.00; lifortality
Gain, 18,479.19; Loading, 37,615.44; Total. Margins, 56,094.63;
First Year's Expenses, 151,961.64.
STATE MUTUAL:
Expected Losses, 125,500.00; Actual Losses, 45,615.00; Mor-
tality Gain, 79,885.00; Loading, 120,187.00; Total Margins,
200,072.00; First Tear's Expenses, 342,809.94.
TEAVELEES: '
Expected Losses, 164,109.00; Actual Losses, 50,697.00; Mor-
tality Gain, 113,412.01; Loading, Part K P., 56,370.00 and
63,529.00; Total Margins, 223,311.00; First Tear's Expenses.
488,245.83.
UNION OENTEAL:
Expected Losses, 287,997.00; Actual Losses, 90,375.00; Mor-
tality Gain, 197,622.00; Loading, 264,895.51; Total Margins,
462,517.51; First Tear's Expenses, 790,292,03.
UNION MUTUAL:
Expected Losses, 57,400.00; Actual Losses, 35,000.00; Mor-
tality Gain, 22,400.00; Loading, 75,400.00; Total Margins.
97,800.00; First Tear's Expenses, 363,923.00.
CANADA:
Expected Losses, 108,431.00; Actual Losses, 46,000.00; Mor-
tality Gain, 62,431.00; Loadihg, 129,423.00; Total Margins,
191,854.00; First Tear's Expenses, 559,396.00.
NOBTH AMEEIOAN:
Expected Losses, 24,191.00; Actual Losses, 24,000.00; 'Mor-
tality Gain, 191.00 ;_,Loading, 27,000.00^; Total Margins, 47,-
191.00; First Tear's Expenses, 220,195.92.
INDUSTEIAL DEPAETMENTS, COMPANIES EEfiEEV-
ING ON FULL NET PEEMIUM BASIS.
METEOPOLITAN:
Expected Losses. 545,723.00; Actual Losses, 545,092.00; Mor-
taHty Gain, 631.00; Loading, 2,690,138.00; Total Margins, 2,690 -
769.00; First Tear's Expenses, 5,644,665.00. '
2. — Estimated.
Exhibits — PaH III^ 1197
PRUDENTIAL:
Expected Losses, 408,125.00; Actual Losses, 419,963.00; Mor-
tality Gain*, 11,828.00; Loading, 2,035,669.00; Total Margins,
2,023,841.00; First Year's Expenses, 4,273,159.00.
JOWN HAN'OOCK:
Expected Losses, 194,301.00; Actual Losses, 163,260.00; Mor-
tality Gain, 31,041.00; Loading, 306,147.00; Total Margins, 337,-
188,00; First Tear's Expenses, 120,229.00.
COLONIAL:
Expected Losses, 16,290,00; Actual Losses, 12,224.00; Mor-
tality Gain, 4,066.00; Loading, 50,000. Total Margins, 54,-
066.00; First Year's Expenses, 120,229.00.
COMPANIES EESERYING ON THE PRELIMINARY
TERMS BASIS.
BANXERS OF NEW YORK:
Expected Losses, 21,500.00; Actual Losses, 26,360.00; Mor-
tality Gain, 4,860.00; Loading, 136,906.21; Total Margins, 132,-
046.21; First Year's Expenses, 153,082.00.
MUTUAL RESERVE :
Expected Losses, 116,210.00; Actual Losses, 51,261.00; Mor-
tality Gain, 64,949.00; Loading, 415,712.00; Total Margins, 480,-
.661.00; First Year's Expenses, 503,540.00.
PROVIDENT SAVINGS:
Expected Losses, 270,037.00; Actual Losses, 172,900.00 Mor-
tality Gain, 97,137.00; Loading, 504,613.00; Total Margins,
601,750.00; First Year's Expenses, 699,624.00.
SECURITY MUTUAL:
Expected Losses, 119,068.00; Actual Losses, 48,050.00; Mor-
tality Gain, 71,018.00; Loading, 257,350.00; Total Margins, 328,-
368.00; First Year's Expenses, 486,487.54,
FIDELITY MUTUAL: >
Expected Losses, 220,974.00; Actual Losses, 127,850.00; Mor-
tality Gain, 93,124.00; Loading, 670,518.21; Total Margins,
663,642.21; First Year'sExpfenses, 851,044.00.
* Estimated.
1198 Legislative Insurance Iwvestigation.
MICHIGAN MUTUAL:
' Expected Losses, 58,048.00'; Actual Losses, 21,511.00; Mor-
tality Gain, 36,537.00; Loading, 103,030.00; Total Margins, 139,
567.00; First Year's Expenses, 213,27-3.01.
M^NESOTA MUTUAL:
Expected Losses, 45,904.00; Actual Losses, 23,500.00; Mor-
tality Gain, 22,404.00; Loading, 159,240.00; Total Marins, 181,-
644.00; Eirst Year's Expense, 216,484.87.
PACIFIC MUTUAL:
Expected Losses, 68,551.00; Actual Losses, 26,060.00; Mor-
tality Gain, 42,491.00; Loading, 375,326.00; Total Margins,
417,817.00; First Year's Expenses, 530,678.00.
STATE OF INDIANA:
Expected Losses, 170,946.00; Actual Losses, 81,546.00; Mor-
tality Gain, 89,400.00; Loading, 441,161.00; Total Margins, 530,-
561.00; First Year's Expenses, 567,938.00.
HAETFOED:
Expected Losses, 99,495.00; Actual Losses, 50,946.00; Mor-
tality Gain, 48,549.00 ; Loading, 143,670.43 ; Total Margins, 192,-
219.43; First Year's Expenses, 283,639.28.
PEESBYTEEIAN MINISTEES :
Expected Losses, 13,000.00*; Actual Losses, 3,000.00; Mor-,
tality Gain, 10,000.00; Loading, 10,384.00; Total Margins, 20,-
384.00; First Year's Expenses, 14,757.00.
Exhibit No. 987.
New York, December 4, 1905.
Hon. Wm. W. Armstrong, Chairman.
Dear Senator Armstrong:
Eeferring to your request made of Mr. Eichards, I am sending
you herewith a statement as to the City Eealty Company, showing
the purchase from this company of property in the city of Eoches-
ter. I trust the letter will satisfactorily explain the matter.
Very truly yoiirs,
FEEDEEICK L. ALLEN,
General Solicitor.
■ Estimated.
Exhibits — Part HI. 1199
Memorandum.
In re City Eealty Co.
Chairman Armstrong ask^d for statement of purchases of
Rochester property subsequent to Mr. Mumford's death. The
value of property sold to the city Eealty Co., price paid and
terms of sale.
I never heard of Mr. C. C. Clark until he bought this property
and organized the City Eealty Co. About the time l^e purchased
from us he bought from one or more Eochester banks. We sold
on the advice of Mr. George Buell and H. G. Danforth, as I
recollect.
Here a*re the details, including terms of sale, to Mr. Clark
(president of City Eealty Co.)
I would like to emphasize the fact that the; charging off of about
one million dollars from our foreclosed real estate does not neces-
sarily mean that we have lost that or any other sum. Our fore-
closed real estate (present and past) is a result of lending some
four hundred million dollars during a period of sixty years. The
^ per cent, interest charge amounts to more than the amount
charged off (and I believe we are the only c&mpany which has
charged- interest against its foreclosed real estate).
Agaia, the real estate now owned is worth at least three hun-
dred thousand dollars more than we are holding it in our as-
sets. It seems proper to say that, so far as I know, and I have
n'o doubt it is a fact, no trustee or officer of this company ha^s
ever had any interest in the City Eealty Company either as
stockholder, director or otherwise.
Truly,
W. W. EICHAEDS,
Comptroller.
EOCHESTEE, N. T.
Memorandum of consummated sales.
January 1, 1892, to October 23, 1905.
Sales
Consummated Property
1893. . 1 parcel
1896. . 1 parcel
1898. . 2 parcel
1899.. 20 parcel
1900.. 102 parcel
(City Eealty Co. sale.)
1900.. 13 parcel . 32,850 34,39t 35,559
Con. Price
Asset.
Cost In
Interest.
$415
$4,409
$4,408
10,965
10,480
10,930
Y,300
6,474
7,474
88,210
77,696
90,044
700,000
748,059.
891,770
1200 Legislative Insurance Invesli-goiion.
Sale
Cost in
Oonsummated. Property.
Con. Prico.
Afset. 1
Interest.
1901. . 5 parcel . .,.
, 63,500
52,637
54,044
1902 . . 4 parcel . . .
26,700
1D,301
23,884
1903.. 7 parcel .. ..
25,850
23,197
24,836
1904. . 4 parcel . . . .
30,900
30,931
31,090
1905.. 6 parcel ....
22,850
21,214
21,470
1,003,540 1,028,795 *1,195,509
Memo, of Eochester real estate acquired by company January
1, 1892 — October 23, 1905.
1892.. 9 'parcels $55,878.10
1893 . . 13 parcels "107,497.82
1894.-. 25 parcels 252,597.73
1895 . . 7 parcels • 64,714.43
1896 . . 17 parcels 203,780.00
1897. . 20 parcels, ■. .' 177,265.50
1898. , 11 parcels 78,154.42
1899. . 13 parcels '. 90,491.53
1900. . 20 parcels 198,877.94
1901 . . 12 parcels 101,170.55
1902 . . 10 parcels j, , . . 92,758.23
1903 . . 3 parcels 34,795.33
1904.. 1 parcel 5,990.77
To October 23, 1905 Nothing acquired
" " - $1,463,972.35
Company's present holdings in Eochester $236,040.
Gross annual rentals, July 1 to July 1, 1905 24,445
Memorandum of contract made May 11, 1900,
between
The Mutual Life Insurance Company of New York
and
Charles O. Clark,, of Eochester.:
The company agreed to sell 102 parcels at $700,000 upon the
following terms: Cash, $75,000; bond and mortgage at 4 per
, * There is- included in this amount $186,000 interest charged
against the several properties since foreclosure, of which amount
$146,878 was charged against the 'lO^ parcels sold to the City
Eealty Company.'
ExhiUts — Part' III. 1201
cent, for ten years, $625,000, $Y00,000. Interest on bond and
mortgage payable semi-annually in June and December.
The deed to be made iipon the company's.usual form, containing
covenants- against their own acts only.
The properties sold to Mr. Clark under the above contract were
carried on tke company's books as an asset at $778,059, and cost,
including interest, $891,770.
The mortgage being a blaniket mortgage, the contract provided
for the release of the various properties on the basis of a specified
schedule of payments on the principal sum.
The total amount of these specified release values being in excess
of the total amount of the mqrtgage, viz., $685,000.
Eochester, N. T., April 28, 1900.
W. W. Eichards, Esq.,
Comptroller Mutual Life Insurance Company,
ZSTew York.
My Dear Mr. Eichards :
I intended to have a talk with you when in New -York last, in
reference to the formation of a real estate company here, which
would take all the holdings in Eochester of your company. Mr.
Elbridge Adams has kept me posted as regards the plans which are
being perfected. I have been very anxious for a long time to -have
these real estate holdings shifted, and on the present proposed
basis of $700,000 I think it will be of mutual advantage t"0 the in-
surance company, and the men undertaking this deal. My per-
sonal opinion is that if such an offer is made, in the right way, it
would be a good thing to accept it and have the matter out of the
way once and for all. I have simply the smallest sort of a finan-
cial interest in the company for the purpose of incorporation.
Yours truly,
GEOEGE 0. BUELL.'
1202 Legislative Insurance Investigation.
Exhibit JXo. 988.
MUTUAL EESERVE FUND LIFE ASSOOIATIOIT.
Bennett Building.
Fulton and Nassau Streets.
S. D. Barr, President.
W. J. Walker, Vice-President.
W. A. Butts, Secretary.
E. B. Harper, Esq.,
New York City.
The president of tlie Mutual Reserve Fund Life Association, S
D. Barr, Esq., contemplates resigning his office as president, and
also his office as director, and you have been under consideration
as a man eminently qualified to be his successor. We, the present
Board of Directors, have therefore this day adopted the following
resolutions: That the directors of this association do hereby ten-
. der to E. B. Harper, Esq., of New York City, the office of a di-
rector and also of president of the Mutual Reserve Fund Life As-
sociation and offer and .promise that the association shall pay him
in consideration of services to be rendered as such president, fol
his services the sum of twenty cents each year of the annual dues
received by the association on each $2,000 of risk for which a
certificate shall be issued after this date, which interest shall be
perpetual so long as the dues shall be paid to the association, and
an additional compensation while in active service of $200 per
month, said $200 per month to be actually paid after the existing
contracts have been complied with and the running expenses of
the association paid. S. D. BARR,
W. J. Walker, President.
Secretary of Meeting.
(Corporate Seal.) New York, September 16, 1881.
The above proposal is this day accepted. E. B. HARPER.
(Seal.)
So much of this contract as reads "certificate shall be issued after
this date" was intended to cover only business affected during the
time of my active discharge of the duties of president, and I waive
all claim to compensation for business effected after my retirement
from the position of president, other than my commission on re-
newals on business effected during my term of office.
EDWARD B. HARPER, (Seal.)
ExUbiis — Part III. 1203
The right to the $200 per month herein provided for is limited
to its payment of annual dues recoverable on certificates issued
during my administration, E. B. HAE,PER. (Seal.)
Exhibit No. 989.
NEW YOEK SUPKEME COUKT,
City and County of New York.
Mutual Reserve Fund Life Association
vs.
J. Thomas Patterson.
Deposition of Isaac Vanderpoel, Esq., Chief Examiner, Not*
York Insurance Department.
NEW YORK SUPREME COURT.
The Mutual Reserve Fund Life Association
Against
J. Thomas Patterson.
Proceedings before Stephen H. Keating, Esq., a referee duly
appointed by order of Mr. Justice Lawrence to take the deposition
of Isaac Vanderpoel, held the 2d day of April, 1900, at one thirty
p. m. at the office of the referee No. 32 Nassau street. New York
City.
The referee takes the oath and files the same. Isaac Vander-.
poel, Esq., being first duly sworn by the Referee, testifies as
follows:
EXAMINED BY MR. ELKUS:
I am the chief examiner of the Insurance Department of the
State of New York and have my office at No. 11 Broadway, in
the City of New York, which is the office of the Insurance De-
partment of the State of New York in the City of New York.
I am attending here because I have been served with the order
of Mr. Justice Lawrence, dated March 31st, 1900, requiring me
so to do. I have been connected with the said Insurance De-
partment for the past thirty years.
1204 Legislative Insurance Investigation.
In the year 1899 I received instructions from the Insurance
Department to examine the Mutual Eeserve Fund Life Asabeia-
tion. I began such examination about May loth, 1899, and con-
tinued the same until about August 15th, 1899. This examination
was conducted by me, assisted by about twelve assistants. I ex-
amined or caused to be examined all the books, papers and records
of the Association, including the minute books of the Board of
Directors, and also generally examined various contracts. After
such examination I made a written report to the Superintendent
of Insurance.^ I was familiar at that time with the charges filed
by James D. Wells and John M. Stevenson with the Insurance
Departnxent, against the Mutual Eeserve Fund Life Association,
and its officers. In such examination I investigated the said
charges against the said association and its management, so filed
in so far as the books and records of the Association were con-
cerned, and in so doing found nothing which impaired the integ-
rity or honesty either of Frederick A. Burnham, the president of
said Association, or of any one else associated with him in the
management of the Association at the time of such examination.
I found in my examination that the acts of the ofiicers of the
said Association were always within their powers and peroga-
tives as defined by the Association's By-Laws or Constitution, or
as said acts may have been authorized by the directors of the
Association as evidenced by the minutes of their proceedings.
At the time of such examination I was requested by Mr. Fred-
erick A. Burnham, the president of the said Association, to make
my examination of the said charges and of the said Association
thorough and complete, and to the best of my ability I made a
thorough and complete examination thereof. I was afforded
every facility by the Association and its officers to make such ex-
amination.
(Signed) ISAAC VANDERPOEL.
Subscribed and sworn to before me this 2d day of April, 1900.
(Signed) , STEPHEN" H. KEATING,
Referee.
NEW YORK SUPREME COURT.
The Mutual Reserve Fund Life Association
Against
J. ^Thomson Patterson. '
I do hereby certify that by virtue of the order made by the Hon.
M)rahi\m R. Lawrence, Justice of the New York Supreme Court
Exhibits — Part III. 1205
Connty of ISTew York, on the 31st day of March, 1900, 1 took the
foregoing deposition of Isaac Vanderpoel, having first taken the
Eeferee's oath.
Dated New York, April 2d, 1900.
(Signed) STEPHEN H. KEATING,
Referee.
NO. 829.
State of New York,
County of New York, J
I, Thonias L. Hamilton, Clerk of the said County and Cle^rk
of the Supreme Court of said State for said County, do certify
that I have compared the preceding with the original deposition
on file in my ofiice, and that the same is a correct transcript there-
from, and of the whole of such original.
Indorsed, Tiled May 8th, 1900.
In witness whereof, I have hereunto subscribed my name and
affixed my official seal, this 16th day of April, 190-.
THOS. L. HAMILTON,
Cle.-k.
Exhibit Xo. 990.
MUTUAL EESEEVE BUILDING.
Value of ground $500,000.00
Interest during construction 68,9'56 . 05
Taxes v 10,198.20
Superstructure excavating, Ammerman & Eord. . 3,375.00
Mason andr builder, R. Eeeves & Son, et al 315,893.39
Carpenter, E. D. Whitcomb & Co 141,009 . 21
Steel and Iron Work, Jackson Arch. Iron Works . . 152,631 . 75
Machinery and Plumbing, Wells Newton Co 106,225.97
Elevators, Otis Bros. Co 45,780.00
Vaults and Safes, Herring, Hall Marvin 9,469. 00
Electric calls, telephone and wiring. Western Elec-
tric Co 15,286.19
Marble work, Nichols & Shumway, et al 10,076 .42
Decorations, James T. Hall & Co 7,569 . 30
Furniture and E'ixtures, W. Schwarzwaelder & Co. 28,824.33
Property purchased, services and commissions, J. L.
Libbv & Son..... 14.744.00
1206 Legislative Insurance Investigation.
Architects, W. H. Hume & Son $58,250.00
Surveyor, M. Coleman 1,8Y0 . 00
Shades and awnings, Yause & Co. ^et al . 1,865 . 51
Gas and electric light fixtures, Mitchell, Vance
& Co .^ 10,901.79
Mail chute and box. Cutler Mfg. Co ; . . 2,615 . 85
Tiling, Traitell. Bros. . , 579 .20.
Glass, Manhattan Glass Co ■ 608 .03
Shutters, J. V. Weber's Son 6,497 . 00
Revolving door. Van Kennel Eev. Door Co 510 . 00
Fuel during construction, Barnes Bros 1,353.75
Painting and material ." . . 912 . 73
Hardware 483 . 19
Eental before completion, "Weld Estate. 10,000
Salaries, Supt., Janitor, Eng., etc 4,241.49
Sundries 6,905 .67
$1,537,832.08
Less items included above should property be in-
cluded in building income account 10,251 . 51
Total cost ;: $1,527,616.57-
PAYMENTS.
W. F. Weld Estate, ground ... . . $5Q0,000 . 00
W. F. Weld Estate, interest 68,9^6 .05
W. F. Weld Estate, cash 475,000 . 02
Total ■ $1,043,956. 0"*
Mutual Eesefve Fund Life A^socia- ,
tion, cash $483,660.50
Total cost $1,527,616.57
Exhibits — PaH III. 1207
Exhibit No. 991.
MUTUAL KESEEVE BUILDING.
Inc me. Outgo.
1894 $66,035 $60,340
18&5 142,591 110,703
1896 , 144,642 109,527
1897 '^ * * 150,835 114,631
1898 147,887 119,723
1899 131,375 96,754'
1900 128,797 103,455
1901 13,3,460 185,104
1902 139,247 125,317
1903 : . . . : - 142,442 120,372
1904 142,415 123,240
$1,469,726 $1,269,166
Taxes refunded 1,238,341 30,825
Exhibit No. 992.
Security Mutual" Life Insurance Company.
A. S. Eennie account.
Dr. ,
Cash advances.
1896 $65.00
1897 422.06
1898' 4,240.25
1899 1,646.59
1900 5,210.35
1901 8,772.31
1902 25^.00
1904 • 324.43
Balance of income $231,385 $2,238,341
$26,716.36
1208 Legislative Insurance Investigation.
Cr.
By commissions.
1897 $20.87
1898 53.00
1S99 .' 509.26
1900 3,557.22
1901 5^657.56
1902 2,727 . 16
1903 3,380.25
1904 3,625 . 69
1905 3.446.55
$26,716.36
Exhibit No. 992.
(For Identification.)
(COPY.)
(In duplicate.)
THIS AGEEEMEISTT, Made the 12th day of Fehruary, 1900,
between the SECURITY MUTUAL LIFE INSURANCE COM-
PANY of Binghamtoii^ N. Y., party of the first part, and A.
RENNIE, of Chicago, 111., party of the second part.
WITNESSETH, That the said Security Mutual Life Insurance
Company hereby appoints the said A. B. Rennie, to act as its State
manager for the, purpose of procuring and effecting applications
for insurance" that shall be satisfactory to said Company, and for
the purpose of collecting the premium payments not overdue for
which he may hold the Company's receipt signed by the Secretary.
This appointment is on the following terms and conditions,
which are agreed to by each party hereto :
First: The district in which the said manager shall have the
right to procure applications and the exclusive right to appoint
sub-agents, subject to the approval of the Company as. aforesaid,
sjiall embrace the State of Illinois;
Second : The authority of said manager shall extend no farther
than is herein stated. He shall not make, alter nor discharge any
contract, or waive forfeitures, or contract debts in the name of
said Oompany.
Exhibits — Part III. 1209
Third: The Oompany shall furnish the said manager with a
reasonable amount of printed matter, such as it issues for the
general use of agents, but the said manager shall not issue, or
cause to be issued or circulated any written or printed matter
bearing the name of said Company, or its officers, or its system of
transacting business, without first obtaining the written approval
of the general manager over his signature, on a copy of the pro-
posed matter.
Fourth : The said manager shall have no claim for commissions,
or other compensation for services rendered, nor be entitled to re-
imbursement for any expenses incurred, beyond that herein pro-
vided ; and the Company may offset any debt or obligation due it
by said manager, his sub-agents, brokers, solicitors, or other em-
ployees, which shall include any amounts paid or payable to other
agents on policies secured under this agreement against any claim
for commissions under this contract. Said Conipaiiy having the
right in its discretion to charge the account of said manager with
any and all sums of money advanced by it to the said manager, or
for his benefit, as well as any and all moneys in the hands of said
manager belonging to said Company; giving and granting unto
said Cb-mpany the right to deduct any and all such moneys from
any commissions or other compensation accruing to said manager.
Fifth: The said manager hereby agrees that all moneys re-
ceived or collected for or in behalf of said Company shall be
received or collected in trust, and shall be held in a fiduciary
capacity, and shall not be used for any personal or other purpose
whatsoever, but that the same and all thereof belonging to^ tlie
said Company shall be remitted, or paid over in cash to the said
Company as often as shall be required.
Sixth : The said second par:ty further agrees when required to
give and maintain a good and sufficient bond in such an amount
and with such sureties as shall be approved by said Company,
conditioned for the faithful observance and carrying out of all
the terms and conditions of this contract.
Seventh : The said second party agrees to submit to and abide
by all rules, regulations and instructions for the government of
agents ; and to devote his time and best energies in its service and
to efficiently occupy and work the territory assigned to him.
Eighth : The said manager agrees to furnish the said company
with copies in triplicate of each and every contract or agreement
1210 Legislative Insurance Investigation.
made by him with any sub-agent or broker. No contract or
agreement between said manager and sub-agents shall be binding
until approved by the Secretary and General Manager of tlie said
Company, and in the event of the termination of this contract the
said Company is hereby authorized to pay any and all sub-agents
or brokers of said manager any commissions accrued, or which
may hereafter accrue under and by the terms and conditions «f
their several contracts.
Ninth: This contract, or any of the benefits to accrue here-
under, shall not be assigned or transferred, either in whole or in
part, without the written consent of the said Company.
Tenth : The compensation to be allowed and to be paid to the
said manager for his services shall be as follows : On all business
secured under and by the terms of this coiitract the following
brokerage commissions on premiums paid for the first year the
insurance shall be in force — On Probable Life Annual Renewals,
Whole Life, 15 Year Return yVccumulation, 20 Payment Life, and
Ten Year Term Annual Renewable plans, Eighty per cent. (80^) ;
15 payment. Seventy per cent. (70^), and 10 payment^ Eifty per
cent. (50^) ; on 20, 25 and 30 Year Endowments, Seventy per
cent. (10^) ; 15 Year Endowments, Sixty per cent. (60^) ; 10
Year Endowments, Pifty per cent. (50^) all of the above being
participating policies.
On second and subsequent years' premiums as collected on the
above named participating policies there shall be allowed and paid
to the said manager a renewal commission of Eight per cent. (8^)
said renewal commission to be paid to the party of the second
part, or his legal representatives so long as the insurance procured
under this contract is in force on the books of the Company and
the insured continues to pay full premiums thereon, except
that should the amount of insurance to the credit of this contract
be at any time less than the sum of One Hundred Thousand Dol-
lar" ($100,000), then all renewals shall cease and determine, and
revert to the Company.
It is further agreed that upon non-participating policies as now
issued by the Company there will be allowed a brokerage com-
mission of sixty per cent. (60^) on Whole Life and 20 Payment
Life, and Pifty per cent. (50^) on 20 Year Endowments,- but that
upon non-participating policies there shall be no renewal com-
mission.
On all business secured by the said manager prior to the date
Exhibits — PaH III. 1211
of tliis contract, the compensation shall be in accordance with the
terms and conditions of a certain contract bearing date of Decem-
ber 15th, 1897.
Eleventh : A failure or neglect on the part of said manager to
make reports and pay over moneys belonging to said Company,
according to the conditions of this agreement, shall be sufficient
reason for immediately terminating this contract at any time,
without notice, anything in this agreement to the contrary_ not-
withstanding.
IN WITNESS WHEEEOE, The said Company has caused
these presents to be signed by its General Manager, and the said
manager has hereto set his hand and seal the 12th day of Febru-
ary, 1900.
SECURITY MUTUAL LIFE INSURANCE COMPANY,
By
(Signed) OHAS. M. TUENEE,
General Manager.
(Signed) ALBEET S. EENNIE,
State Manager.
(Signed) LOUIS E. TUENEE, ,;, .^^,
Witness. ,„-- Ir '
Copy.
; Binghamton, N. T., May 16, 1902.
Mr. A. S. Eennie,
Chicago, 111. v-^S;
My Dear Mr. Eennie:
I have in hand your favor of the 14th and have noted contents.
In response would say, you are entitled to a commission of 1^
on all forms of single premium policies. I also forward under
another cover the rates for annuity Bonds, sample bonds and ap-
plication blanks. You will be allowed the same commission on
Annuity Bonds as on single premium policies. Single premium
policies are participating. Dividends are declared annually, but
we do not make any estimate as to the amount of such dividends.
There is no reason why this Company cannot-pay as large a divi-
dend on this form of contract as can any Company.
Trusting you may be able to do some business on the single
jjremium or Annuity Bond plans, I am,
Very truly yours,
Assistant General Manager.
(Copy,)
1212 Legislative Iiisurance Investigation.
Chicago, 111., January 24, 1902.
Mr. A. S. Eennie,
614 Marquette Eld., Chicago.
Dear Sir :
On and after this date the brokerage commission paid you oji
Twenty, Twenty-five and Thirty Year Endowments, which inr
eludes the Twenty Year Savings Bond, shall be Seventy-five per
cent (75^) ; on One Year Term policies the brokerage, commis-
sion is twenty-five per cent (25^) ; on Ten Payment Twenty
Year Distribution policies the brokerage commission is Fifty per
cent (50j^).' This shall in no way amend, alter or annul any con-
ditions or provisions of your contract of February 12, 1900, except
as expressly stated,
(Signed) OHAS. M. TUEWEK,
Secretary & General Manager.
Exhibit No. 993.
(Marked for identification.)
Exhibit No. 994.
July 21, 1905.
JU»)ar Sir:
The Chronicle in its July issue devotes nearly a full page to an
article which is headed " Apparent Willingness to Deceive." It
then gives an advertisement which reads as follows :
" Pure life insurance, without investment, loan or sxjrrender
values, is the most popular policy right now. This company issues
a whole life contract, furnishing pure insurance, and our agents
are still making money. William Boswell, agency director^ Se-
curity Mutual Life Insurance Company, Cincinnati, Ohio."
This is claimed to have been an advertisement authorized by you
and which appeared in the Insurance Field, July 13, 1905. If
you inserted this advertisement you did so wilfully and with the
full knowledge that you were .making a misstatement, as the P. L.
.policy is in no sense a whole life contract and does not purport
to be. If you have any similar advertisement in the Field or in
iiny other paper, you will at once discontinue them and will also
E^ihits — Part III. 1213
advise me, giving your authority for advertising this contract as
a whole life contract.
Awaiting your return favor, I am
Very truly yours,
PKESIDENT.
Mr. William Boswell,
Cincinnati, O.
Cincinnati, 0., July 25, 1905.
Chas. M. Turner, Pres.
Binghamton, N. T.
Dear Mr. Turner:
Yours of the 21st to hand with copy of the Chronicle. I am a
little bit hurt to know that you could think I would wilfully mis-
state anything,, but I suppose this letter had to have an official
tone. ' \
I answer it formally in another letter.
But will you pardon me for saying that in addition to our
natural premium contract our P., L. contract is, I think, a whole
life contract of insurance and can be nothing else under its terms.
It does not call for a new contract on reaching the expectancy,
but provides that the insured can continue " this policy " under
option 3, page 3, as a one year policy from year to year subject
to adjustment of premiums. You will remember that you and I
have had many discussions upon this very subject, and you always
maintain, just as I would, that this was a whole life contract of
insurance, furnishing pure insurance without investment, assur-
ing me that under the third option we would be able to carry the
premiums level for the entire lifetime of" the policyholder.
When I sell a P. L. I always show the contract and I have suc-
ceeded in selling attorneys probably better than anybody else
purely because I was able to convince them that this written con-
tract was a whole" life insurance contract by its terms. All of my
agents are instructed to sell every policy by showing it, because T
utterly despise misrepresentation and will not have it.
I sometimes doubt if we ought to make estimates, but so long
as that is done by other companies, and so long as people know
they are merely estimates, and it is custom of the business, I sup-
pdse it is all right.
If I' have made a mistake in the wording of that advertisement,
and in consequence it \vil] give you trouble, I am sorry for it.
Sometimes I write thi)igs a little hastily. I do not believe in
1214 Legislative Insurance Investigation.
spending your ffioney for advertising unless we get value received,
and to this it is necessary to make frequent changes and make the
advertisement striking, but in this instance the Chronicle vsrould
seem to have put its foot in it pretty badly in thus attacking us
■without foundation. Do you think this is inspired by Scott or
Tarbell ?
It certainly v^as instigated by somebody. If we could find out I
vi^ould be in favor of striking back good and hard.
Very trtily yours,
BOSWELL.
Cincinnati, July 25, 1905.
Chas. M. Turner, Pi-es.
Binghamton, 'N. Y.
Dear Mr. Turner:
Your favor, of the 21st inst. to hand together -with copy of the
Chronicle of July 20, quoting an advertisement of mine. '
The Chronicle makes the unwarrantable assumption that the
policy referred to is our probable life policy, and is evidently in
entire ignorance of our mutual premium whole life contract.
It seems extraordinary that an insurance journal which has
apparently been published for. a number of years in New York
should make an attack like this without foundation. Is the Chron-
icle one of the bMckmailing insurance papers, published in the
East, of which we sometimes hear ? I don't remember having
heard of it before.
Very truly yours,
WILLIAM BOSWELL.
Agency director.
Cincinnati, July 25, 1905.
Insurance Field, Louisville, Ky.
Dear Sirs:
Will you kindly change my adv. as here-^ith' and oblige,
Very truly yours.
A perpetual renewal contract in the Security Mutual Life is a
valuable asset.
WILLIAM BOSWELL^
Agency Director. ,
Cincinnati, O., August 3, 1905.
My Dear Sir:
In answer to your several favors which have been upon my
Exhibits — Pari III. 1215
desk since the opening of the convention, I think the Chronicle
was perfectly justified in their assumption. I don't like the ad-
vertisement and wish it to be withdrawn from any papers in_ which
you may have inserted it. It is my personal opinion that the
accumulation of the P. L. policy (if carried to the end of expec-
tancy of life, will be sufficient to care for the increase after that
period by reason of which the policy will have a continuous level
rate through life, but my estimate of future accumulations is not
a guarantee, and I do not wish any advertisement used in any
connection or in any way which would lead to a misunderstand-
ing or anything except facts. The statement in your letter, when
I sell a P. L. I always show the contract, and I have succeeded
in selling attorneys probably better than anybody else purely
because I was able to convince them that this written contract
was a whole life insurance contract by its terms, is altogether
erroneous. It is not a whole life insurance contract by its terms,
and no one knows it better than you do, and you understand, too,
that it has never been represented to you as such by any one in
connection with this office. It is a term policy for the expectation
of life with accumulations thereafter applied to maintain a level
rate, and I shall not submit to your representing it in any other
way.
Very- truly yours,
PRESIDENT.
Cincinnati, O., October 19, 1905.
0. M. Turner, Esq.,
President Security Mutual Life, Binghamton, N. T.
Dear Mr. Turner:
You remember a'sking me to write you further regarding the
Mntchler advances, etc., etc.
**********
Have you any objection to inserting in the third option on the
P. L, the words " from year to year " after the word " continued? "
This is the way the old P.' L. used to read, and option 6th in our
15th year K. A. provides for the same thing. I can sell a lot of P.
Ii. insurance now if the words be inserted so as to protect policy
holders when you and I may not be here.
Very truly yours,
BOSWELL.
1216 JLegislaiive Insurance Investigcdion.
October 21, 1905.
Mj Dear Mr. Boswell :
In answer to yours of the 19th:
Mr. ]y[utchler's account and everything pertaining to him is
'in the hands of our attorney, and I would not care to make any
agreements which might affect this matter.
I have no ohjection to expressing in plain English the fact that
on the P. L. policy, after a man reaches ^5, or expectancy of life
(if such is the policy), that the insurance will be continued front
year to year at term rates for attained age. When" the next lot of
policiBs are printed this will be done.
Very truly yours,
PKESIDENT.
Agency Director,
Cincinnati, O.
Exhibit No. 995.
Dec. 6, 1905.
Gentlemen :
I desire to make a correction in my testimony taken on Eriday,
Not. 24 (35th day).
At that time I stated that the account, George H. Squire, trus-
tee, had never been upon the books of the society. I find on
search that I was mistaken, and that .there was such an account
upon the City Ledger, for six months 'in the year 1900. It was
entirely a cash book account. It was always a credit, until closed
by payment in cash on Sept. 15 of $2,000, and by check on Oct.
26 for' $36,030.98 to the order of George H. Squire, trustee.
.Said check was endorsed by George H. Squire, trustee, and de-
posited in the American Deposit & Loan Co.
Yours very truly,
ERANCIS W. ALEXANDER
To the Joint Committee of the Senate and Assembly of -the State
of New York, appointed to investigate and examine in the busi-
ness and affairs of life insurance companies:
ENSC.
Transcript of ledger (c. 5) account.
(Copy of order on which money was drawn.)
(Copy of check 4&,603,)
Exhibits — Part III. 1211
G. H. SQUIKE,
TRUSTEE.
190C
I.
Dr.
Septi
15
C. B
Ill
$2,000.00
Oct.
26
C. B....
5
36,030.98
$38,030.98
189(
).
Or.
April
11
C. B....
96
5,101.25
16
C. B....
96
197.40
16
0. B. . . .
96
675.80
17
C. B. . . .
96
1,371.00
May
11
C. B. . . .
5
585.50
14
C. B. . . .
5
91.04
24
C. B. . . .
5
237.50
July
2
C. B. . . .
> • ■
105
77_3.75
6
C. B. . . .
105
2,558.75
18
C. B. . . .
105
543.75
26
C. B. . . .
105
5,826.25
Sept.
11
C. B. . . .
Ill
1,730.57
12
C. B. . . .
Ill
987.50
14
C. B. . . .
Ill
2,468.75
Oct.
17
C. B....
5
4,937.50
22
C. B. . . .
5
2,468.75
2B
C. B. . . .
5
. 2,075.00
26
0. B....
5
5,400.92
$38,030.98
New York, Oct. 26th, 1900.
M. Murray, Cashier,
EQUITABLE LIFE IN"SURANOE SOCIETY,
Please pay to Geo. H. Squire, trustee, thirty-six thousand and
thirty 98/100 dollars and charge in C/L (settles credit).
T. D. JORDAN",
Comptroller.
$2,000:00 . IS'ew York, Sept. 15, 1900.
M. Murray, Cashier.
EQUITABLE LIFE ASSURANCE SOCIETY.
Please pay to J. W. Alexander and T. D. Jordan, trustees, Two
thousand dollars, and charge to
G, H. Squire, trustee. T.D. JORDAN,
Comptroller
39
1218 Legislative Insurance Investigation.
Copy of check :
THE EQUITABLE LIFE ASSUEANCE SOCIETY OF
TJ. S.
New York, Oct. 26, 1900.
THE NATIONAL PARK BANK
Pay to the order of Geo. H. Squire, trustee.
thirty-six thousand and thirty ; .98/100 dollars.
M. MURRAY, Cashier. T. D. JORDAN, Comptroller.
$36,030.98.
Exhibit No. 996.
PROVIDENT SAVINGS LIFE ASSURANCE SOCIETY,'
346 Broadway.
Edward W. Scott, President.
Actuarial Department.
New York, December 29th, 1905.
Policy No. 29,Y7l, Isaac Shapira.
I have examined the facts in regard to this policy and find that
the table of maximum premiums put upon the record and regard-
ing which I expressed doubt at the time was incorrect. The
proper maximum premiums applicable to the old yearly renewal
term policy are as follows:
, _^ „ -Age Maximum annual
Actually attamed. Premium per $1,000,
• 60 $41.50
61 - 45.00
62 49.00
63 53.00
64 ' 57.50
65 60.1'6
66- 64.96
67 70.72
68 77.16
69 84.24
70 92.12
Exhibits — Part III. 1219
— ^— i : ^
Age actually Maximum annual
attained. premium per $1,000.
71 $100. Y6
T2 110.14
73 120.20
74 131.12
75 142.92
76 153.47
77 166.59
78 181.25
79 197.60
80 216.71
The reserve value of the new policy at the date of exchange
was approximately as I stated it, but in this particular case it seenia
that the agent effected the exchange on the basis of the difference
in premiunas between the old and new forms, with 5 per cent,
•interest. The exchange loan for which Mr. Shapira executed a
note was therefore $1,300, ^s was stated in the testimomy.
Perhaps I should point out that in all the complaints under our
yearly renewable term policies, discussed before the committee,
the insurance had been effected at an unusually advanced age.
At the older ages, above 60, the rates of mortality increase very
rapidly — for example, the net natural premium at age 69 is more
than double the net rate at 60, and at age 76 is nearly four times
the net premium for age 60.
Yours very truly,
HE]!^KY MOIR,
Actuary.
CHAKLES E. HUGHES, Esq.,
Counsel, Investigating Committee,
City Hall, N"ew York.
P. S. I am requested to enclose the accompaHy statement of
traveling expenses paid during the year 1904.
Exhibit No. 997.
(Marked for identification.)]
1220 Legislative Insurance Investigation.
Exhibit No. 998. —
TRAVELING EXPENSES PAID DUEING YEAE 1904.
Paid on account agents
and supervision Paid on account^
Month. of agencies. home officers.
January , . ., $3,180.11 $169.95
Eebruary 1,516.23 559.50
March 2,140. Y7' 933.36
April 2,545 . 3& 431 . 90
May 1,627.77 749.43
June 2,659.64 162.70
July , 2,379.94 697.73
August 2,030 . 33 110 . 00
September 1,149 . 76 459 . 04
October 2,998 . 89 384.95
November .: 1,951.23^ 129.65
December ." 2,741.48 467.98'
$26,921.48 $5,256.19
26,921.48
Total $32,177 . 67
Exhibit No. 999.
COLLATERAL LOANS
Made By
PROVIDENT SAVINGS LIFE ASSURANCE SOCIETY Ol'
NEW YORK, N. Y.
October 31st, 1895, to "November 21st, 1905.
Sept. 5th, 1896. Amount, 3,000.00; to whom made, 0. M.
Brown; Time, Demand; Rate of Int., 6 per cent.; Collateral,
$5,000 Wabash R. R. 1st Mtg. 5 per cent. Bonds, due 1939.
Sept. 28th, 1896. Amount, 150.00; To whom made, George
E. Ireland; Time, 12 months; Rate of Int., 6 per cent.; Collateral,
$100 Stock Cincinnati Gas, Light & Coke Co.
Exhibits — Part III. 1221
Dec. 16th, 1896. Amount, 37,500.00; To whom made, Louis
E. Bentley; Time, Demand; Eate of Int., 6 per cent.; Collateral,
223 shares Hancock National Bank, Boston, Mass., 225 shares
Columbia Spinning Co., New Bedford, Mass., 50 shares Lamherth
Rope Co., New Bedford, Mass.
Jan. 4th, 1S97. Amount, 50,000.00; To whom made, Trank
E. Bradley; Time, Demand; Feb. 13th, 1897. Amount, 50,000;
To whom made, Frank R. Hadley; Time, Demand. Feb. 15th,
1897. Amount, 25,000; To whom made, Frank E. Hadley;
Time, Demand; Eate of Int., 6 per cent.; Collateral, 123 shares
City Coal Co., New Bedford, Mass., 400 shares Columbia Spin-
ning Co., New Bedford, Mass., 633 -shares Lamberth Eope Co.,
New Bedford, Mass., 300 shares Bennett Manufacturing Co., New
Bedford, Mass.,_ 25 shares Mathieson Alkali Co., Providence,
E. I.
July 27th, 1899. Amount, 1,500.00; To whom made, A. L.
Vandewater; Time, Demand; Eate of Int., 5 per cent.; Collateral,
$2,000 Bonds Washington, Ohio & Western E. E., due 1924.
Dec. 6th, 1899. Amount, 16,000.00; To whom made, Stewart
Browne; Time, Demand; Eate of Int., 6 per cent.; Collateral, 150
shares International Banking & Trust Co., New York.
Jan. 2d, 1900. Amount, 16,075.00; To whom made, Stewart
Browne; Time, Demand; Eate of Int., 5 per cent.; Collateral, 67
shares North American Trust Co., New York.
Mar. 12th, 1900. Amount, 163.85; To whom made, Daniel
Wolf; Time, Demand; Eate of Int., 5 per cent.; Collateral, 1,000
shares Monterey Gold Mining Co.
Feb. 21st, 1901. Amount, 15,369.87; To whom made, Stewart
Browne; Time, Demand; Eate of Int., 5 per cent.; Collateral, 62
shares North American Trust Co., New York.
Mar. 30th, 1901. Amount, 18,090.00; To whom made, Stewart
Browne; Time, Demand; Eate of Int., 5 per cent.; Collateral, 67
shares North American Trust Co., New York.
Oct. 21st, 1901. Amount, 5,000.00; To whom made, Charles
W. Drake; Time, Demand; Eate of Int., 5 per cent.; Collateral,
$8,000 2d Mortgage Bonds, Bath & Hammondsport E. E., dm
1923.
May 9th, 1902. Amount, 390.12; To whom made, Henry N.
Hills; Time, Oct. 1, 1902; Eate of Int., 5 per cent.; Collateral,
$500 Bond Coxey Steel Casting Co., Mt. Yernon, Ohio.
ieb. 3d, 1903, Amount, 2,500.00; To whom made, Emily A.
1222 Legislative Insurance Investigation,
-. !
Eansom; Time, Nov. 30, 1903; Eate of Int., 5 per cent.; Col-
lateral, 25 shares Standard Printing Co., Boston, Mass.
Oct. 26tli, 1903. Amount, 3,500.00; To whom made, D. P.
Tackier; Time, April 26th, 1904; Eate of Int., 6 per cent.; Col-
lateral, $2,000 Bonds JSTew York, Susquehanna & "Western E. E.,
due 1927; $3,000 Bonds Eio Grande & Western E. E., due 1939.
Jan. 26th, 1904. Amount, 700.00; To whom made, E. W.
Stewart; Time, Demand; Eate of Int., 5 per cent.; Collateral,
$1,000 Bond ISTew York & IS^ew Jersey Water Co., due 1950.
May 10th,~1904. Amount, 3,500.00; To whom made, Charles
W. Drake; Time, Demand; Eate of Int., 5 per cent.; Collateral,
$6,000 Bonds .2d Mortgage Bath & Ilammondsport E. E., due
1923.
Aug. 21st, 1905. Amount, 5,000,00; To whom made, Walter
Scott; Time, Demand; Eate of Int., 5 percen;. ; (collateral,
$11,000. Bonds AUenhurst Club, due, 1913.
ISTote. — ■ The only outstanding item is the Stewart Loan, Jan-
uary 26th, 1904, upon which interest to July 2Cth, 1905, has been
paid.
Exliibit No. 1000.
STATE OF NEW YOEK
INSUEAlSrCE DEPAETMENT.
EEPOET ON" EXAMINATION OF THE PEOVIDENT SAV-
INGS LIFE ASSUEANCE SOCIETY OF NEW YOEK.
September 16th, 1897.
Schedules Excepted-.
Eeport.
October 16th, 1897.
Hon. Louis F. Payn,
Superintendent of Insurance, Albany, N. Y.
Dear Sir:
I beg to report that I have completed the examination of the
Provident Savings Life Assurance Society of New York, as; pe/
your Appointment No. 995. The examination was made to daie
Exhibits — PaH III. 1223
of June Both, 1897, and shows the condition of the corporation
on that date to be as follows:
Assets. ' ; ■ ■:';■]■
Real estate owned by the Company, as per Sched-
ule A $261,000.00
Loans on bond and mortgage (first lien) on -real
estate, as per Schedule'-B 203,666 . 00
Bonds and stocks owned Par value Market value
Bonds and stocks owned. Far value. Market value.
U. S. reg. bds., 1925, 4^ $100,000 $126,125.00
Ann Arbor 1st mtg ' 16,000 12,800 . 00
1905, 4^ 0. & ]Sr 16,000
(Tr. Co. cert), 1905, 6^ 16,000 4,320.00
Bur., C. E. & N. (I.
M. & D.) cOns.. 1st.
.mtg., 1934, 5^ 10,000 10,550.00
Can. loan payable 11, 1,
1903,4^ 2,000 2,117.40
Cent. E. E. & Bridge
Co., 1940, 5^ 10,000 9,950 . 00
Chi., Bur. & Q. convt.,
1903, 5^ 10,000 10,475 .00
Chi., E. I. & Pac. 1st,
mtg. ext. & coll.,
1934, 5^ 6,000 5,400 . 00
Chi. & Erie E. E. 1st
mtg., 1982, 6i 15,000 16,500.00
Chi. & W. Ind. general
mtg., 1932, 6^ 20,000 23,800 . 00
Cin„ Sand. & CI. cons.
1st mtg., 1928, 5^. . . 5,000 5,600^00
CI., Cin., Chi. & St. L.
Ey. Co. (St. L. Div.)
1st C. T., 1990, 4^. . 20,000 18,950.00
Dul., So. Shore & Atlan-
ta, 1st mtg., 1937, 5^, .20,000 20,800
Englewood, N. J., Sch.
bds., 1903, 5^ 7,000 7,222 . 81
Fremont, Elk. & H. V.
mtg: Cons. 193', 6^. 30,000 39,300.00
Ind., Us. & la. 1st mtg.,
1939, 4^ 20,000 17,600 . 00
1224 Legislative Insurance Investigation.
Bonds and stocks owned. Par value. Market value.
Kanawha & Mich. 1st
mtg., 1990, 4^ $20,000 - $14,900.00
Lake E. &'Wn. 1st mtg.,
1937, 5;^ 10,000 11,800 . 00
r^igli & Hud. R. 1st
mtg., 1911, 5^ 20,000 20,000.00
Mil. Elec R & L. Co.
Cons, mtg., 1926, 5)^. 30,000 • 30,000.00
Miun. & St. L. 1st mtg.,
1934, 5^ 30,000 31,087.50
Montreal City, 1926, 0 41,000 45,100.00
Kash., Ch. & St L. (M.
M. K., W. &-A.) 1st
mtg., 1917, 6;^ 10,000 10,800.00
K Y., Chi. & St. L. 1st
mtg., 1937, 4^ 10,000 10,550.00
No. Ohio 1st mtg., 1945,
5^ 20,444 20,625 . 00
No. Wn. Tel. Co. 1st
mtg., 1934, 7^ 15,000 16,500.00
Ore. Impt. Co. (Man. T.
Co. Cert.), 1910, 6^. 10,000 8,500.00
Ore. S. L. Ry. Co. (Cent.
T. Co. Cert.), 6^... 10,000 11,825.00
Pitts. & Wn., 1st mtg.,
1917, 4^ 30,000 21,600.00
Quebec Govt., 1908, 5^. 13,500 15^390.00
Rich. City Va., Reg.
1923 4^ 10,000 10,250.00
S. Ant. & Ar. Pass. 1st
- mtg., 1943, 4;^ . 30,000 18,225.00
So. Ry. Co. Cons. 1st
mtg., 1994, 5^ ■ 30,000 27,975.00
Tex. & Pac. 1st mtg.,
2,000, 5^ 40,000 37,000.00
Tel. & O. Cent. 1st mtg.,
1935, 5^ 8,000 8,400.00
Toronto City Ster. bds.,
1925, 4^ 30,660 33,726.00
Wabash R. R. 1st. mtg., - '
1939, 5^ 30,000 31,500 . 00
Exhibits — Part HI. 1225
J
Bonds and stocks owned. Par value. Market value.
Aim Arbor R. K. Pfcl,
80 shares $80,000 $2,200.00
Chi., Mil. & St. P. By. '
Co. Pfg., 300 shares, 300,000 41,Y75.00
Chi. & a. W. R. R.
Common, 200 shares. 20,000 13,800.00
Lake Shore & M. So.,
400 shares 40,000 67,600 . 00
Macon, Ga., Sav. Bank,
20 shares 2,000 2,000.00
Prov. ]Sr. Bk., Waco,
Tex. 50 shares 5,000 6,500.00
Pul. Pal. Car Co., 100
shares 10,000 16,800.00
Wash. Trust Co., N. Y.,
,55 shares 5,500 12,650.00
Total 'par and market
values 894,660 951,888 . 71 $951,888 . 71
Loans secured by pledge of collat-
erals, as per Schedule C , 33,145.00
Loans to policyholders with ac-
crued interest added and inter-
est paid in advance deducted, as
per Schedule D 37,096.27
Premium notes on policies in
force, as per Schedule E , 17,600 . 38
Interest accrued on mortgages, se-
curities, bank balances and pre-
mium notes 6,771 . 55
Rents due and accrued > 6,392.96
Due from other companies for re-
insurance on losses paid 5,000 . 00
Cash in bank 62,004. 58
Cash in office 4,044.28 66,048.86
Premiums in course of collection,
less those iu transmission, June
30th 182,580.03
1226 Legislative Insurance Investigation.
Excess of premium and loan
credits on each policy over its
respective reserve, as per Sched-
ule F $86,436 . 00
-.J
3,144.03
Deferred premiums 286,905 . 00
$383,049. Q3
Deduct average of loading and cost
of collection (20^) 76,609 .81
IS^et uncollected and deferred $306,439 . 22
Net premiums in course of trans-
mission, June 30 , 87,684.70
Total assets $1,982,733 . 65
Liabilities.
Net present value June 30th, 1897
of 26,789 policies computed ac-
cording to Actuaries Table of
Mortality, with'4;^ interest $1,454,139 . 00
Net present value of reinsurances
in companies authorized to
transact business in New York. 1,310 . 00
Net reserve 1,452,829 . 00
Contested claims ' 25,000 . 00
Unadjusted 13,000 . 00
Claims due during July 80,000.00
Claims due during August 95,314.00-
Deaths reported — ^proofs not in. . 54,:100.00 267,614.00
Premiums paid in advance 4 670.77
Keserves on policies cancelled on
which surrender values may be
claimed 4,799.79
Due for. salaries, rent, etc 293.75
Liabilities on policyholders' ac-
~ count . . ^ $1,730,207 . 31
Gross divisible surplus 252 526.34
Capital stock paid in $100,000 . CO $1,982,733 . 65
Exhibits — Part III. 1227
The various pieces of real estate owned by the Company
or mortgaged to it have been appraised in the course of this
examination with the exception of one piece hereafter referred to.
Such real estate as sitxiated outside of New York and New Jer-
sey has been appraised under the direction of the Insurance De-
partnjent of the State in which the property is located, with the
single exception mentioned; In Texas the company owns in
the city of Waco an office building, the cost of which is found
to have been $143,472.03. The property has been carried by
the Company at a figure fifteen thousand dollars in excess of
this sum, t)r $158,472.03. Upon the basis of net income from
the property it earns about six per cent, upon this valuation,
which is that placed upon it as an asset in the above report,
although the appraisal made upon this property might warrant
its being credited among the assets of the Company at a figure
considerably in excess of that at which it is here extended.
In jVCississippi the corporation owns nine hundred and sixty
acres of land in Tunica county, that State. This property was
acquired by the corporation in satisfaction of certain debts due
it.' The amount of indebtedness extinguished by acquiring
title to this land was $12,000. The corporation holds the prop-
erty at this figure. I have been unable to get the land in ques-
tion appraised, and, as the sum involved is not a very serious
one, I have taken the responsibility of giving the corporation
credit as an asset to the extent of the amount at which it has
heretofore valued the property.
The corporation holds certain securities that were hypothe-
cated to it as collateral to loans amounting to $162,500. The
par value of these securities is $202,900. At the time the loans
were jnade by a former administration the collaterals referred
to were quoted at values sufficient to amply secure the loans.
I am unable at the present time to ascertain the value of these
securities, except in two instances, and have therefore reduced
the assets of the Company on this account to the extent of
$149,505. It is stated that these securities have value con-
siderably in excess of the amount for which I have allowed
credit. I have not taken this fact into consideration, but have
merely given the corporation credit for such as at the present
time are marketable.
The corporation also holds further collaterals hypothecated to
it as security for a loan of $20,000, the valu6 of which I am
unable to arrive at. ~ The loan in question was not an invest-
1228 Legislative Insurance Investigation.
ment in tlie first instance, but represents an agent's balance of
this amount secured by the collateral referred to.
In crediting the corporation with the various items of un-
collected and deferred premiums, policy loans .and premium
notes, there has been deducted from the total the amount of
$86,436, representing the excess of credits over reserves. -The
excesses, where the same were found to exist, were taken policy
by policy so as to bring the premium and loan credits upon each
policy within its respective reserve. The effect of this, together
with the deduction from loans previously referred to, and the
increase in reserve for unpaid claims of $23,614 account for
the decrease in the corporation's surplus as returned' in its last
annual statement. The deduction of $86,436 on uncollected
premium account is more in the nature of a technical treatment
of this item, and does not necessarily imply that its -commercial
value should -be reduced to this extent. In this connection, -it
inay be stated that of $275,000 of uncollected premiums at the
date of this examination over 80^ of the same had been paid
prior to September l.Oth, last.
The corporation, commencing, business in 1875, -having never
until now been examined by this Department, the management,
in requesting that the present investigation be made, has mani-
. f ested a desire that the. conduct of the Company's affairs be thor-
oughly scrutinized from the date of its incorporation to the pres-
ent time. To this end the officers of the Company have afforded
the Department every opportunity to prosecute its work in this
direction, and while the time thus occupied has rendered the ex-
amination more lengthy than would ordinarily have been the case,
yet, under the circumstances, it is believed that this additional
labor was warranted. The result has shown, among other things,
that the previous administration had, during 1895-6, through a
system involving the replacing of certain policy contracts then in
force by others of a different character, inc;reased the reserve lia-
bility on account, of the policies sp changed about $180,000, with-
out, so far as can be ascertained, any corresponding advantasre to
the Company. This practice was immediately discontinued upon
the assumption of office by the present executive, who is to be com-
mended for the conservative methods employed in the conduct of
the corporation's affairs.
Since December 31st, the Company has added over $200,000 to
its reserve fund, and has largely increased its volume of new busi-
ness, as compared with any corresponding period of its history.'
Exhibits — Part III. 1229
The corporation's accounts are correctly, and concisely kept, the
: system of checking accounts in vogue being admirably adapted to
insure accuracy. Every request for books and papers" has been
promptly complied with, and every assistance to facilitate the ex-
amination cheerfully given.
Respectfully submitted,
ISAAC VANDERPOEL, Obief Examiner.
State of New York, 1
City and County of New York, J
Isaac Vanderpoel being duly sworn deposes and says tbat the
foregoing report subscribed and sworn to by him is true to the
best of his knowledge and belief.
ISAAC VANDEEPOEL.
Subscribed and sworn to before me,
this 19th day of October, 1897.
JAMES T. WILLIAMSON,
(Seal.) Notary Public, Kings County, N. Y.
Certificate filed in New York county.
Exhibit No. 1001.
(Marked for identification).
Exhibit No. 1002.
November 15, 1905.
METROPOLITAN BUILDING.
PRESENT RENTALS AND EXPENSES.
List of principal office tenants:
' Sq. ft. Bent.
American Surety Co , 763 $1,750
Eorest,Eish&GameCo, ,. . 570 1,250
Am. Ventilating Co. 750 1,700
N. Newstead 556 1,300
Fremont Cole ■ 817 1,500
Excise Com. S. of N. Y 4,385 8,000
Repub. Co. Com 989 1,800
P. J. Carlan Const. Co 1,080 2,225
O. H. P. Belmont 898 1,400.
Board of Examiners 755 1,400
1230 Legislative Insurance Investigation.
Sq. ft. Rent.
Thomas Tanty Co 856 1,700
V. J. Hedden & Sons Co 2,310 4,425
Travelers Ins. Co 8,782 13,700
Geo. Hotchkiss 656 1^250
J. C. Vreeland Bldg. Co 840 1,650
Sea Coast Lumber Co 858 1,875
Campbell Printing Press & Mig.
Co 1,995 3,400
Wood & mthan Co. 731 1,250
Curtis Pub. Co 1,031 1,9'50
Poreign Missions Industrial Assn . ' 656- 1,300
]Sr. E. Diggs 1,149 1,700
]Sr. LeBrun & Sons 1,545 2,450
ISr. Y. Life Ins. Co 1,473 2,500
Eugene Higgins 1,204 2,400
E. C. Fisher Co 905 1,950
J. D. Bristol , 1,858 8,215
Associated Sunday Magazines . . 741 1,^^300
J. V. Sloan & Co. 1,000 1,600
$40,153 $71,940
Eemaining office tenants 69,711 130,419
Total office tenants 109,864 $202,359
Stores rented for 52,650
Space occupied by the Company. . 209,767 395,099
Total rented space 319,631 $650,108
Power for mail. tubes 7,920
Heating church 750
Total present income $658,778
Expenses of maintenance, including Taxes, Insurance, : '
Water, Eepairs, Labor, Supplies, Coal, Manage-
ment, Commissions, as per cost sheet herewith 237,000
Present net income $421 778
Earning on cost of building, November 1, 1903 • 3 . 20;^
Taking credit for the rental of the store and offices
that are now vacant, amounting to 49,375
Exhibits — Part III. 1231
And space reserved for the Company now
being prepared for its use, but for which
no rent is charged $26,458 $75,833
Total $497,611
Will make the net return on the investment 3 . ^0^
Exhibit No. 1003.
THE METEOPOLITAJSr LIFE INSUEATv^OE CO.
John E. Hegeman, President.
New York, December 20th, 1905.
Charles E. Hughes, Esq.,
50 Broadway, New York City.
Dear Sir: —
In answer* to your inquiry we beg to say that the following are
the payments between the dates hereinafter mentioned made to
Commissioners of Insurance of various States:
December 12th, 1894. To James F. Pierce, Superintendent
of Insurance, New York State $3,977.25
This was in ;repayment of checks of the State Treasurer drawn
by him upon the warrants of the State Comptroller for services
rendered and expenses incurred in the examination of our Com-
pany.
January 11th, 1895. To James F. Pierce, Superintendent of
Insurance, New York .State $250 . 00
This was in payment of bill for services rendered as Special
Examiner in the same examination, the bill being certified to us
by the Superintendent of Insurance.
March 11th, 1898. To James E. B. Van Cleave, Superin-
tendent of Insurance, State of Illinois $13,298.27
This sum was paid to the Superintendent of Insurance pur-
suant to bills rendered by him for the examination and aippraisal
of the stocks and bonds and real estate of the Company, and for
the fees of the Examiner of the Department.
December 12th, 198. To Louis F. Payii, Superintendent of
Insurance, New York State $395 . 58
This was paid pursuant to the, request of the Superintendent-
1232 Legislative Insurance Investigation.
I
for services rendered by tbe Examiners of the Department in
cliectking up the records of the Company as compared with the
Department registers.
April 19th 1899. To Louis F. Payn, Superintendent of In-
surance, State of New York $33 . 33
Paid to cover the till of the confidential examiner of the De-
partment, certified by E. H. Hunter, Deputy Superintendent of
Insurance.
June 8th, 1900. To Francis Hendricks, Superintendent of
Insurance, New York State $8,927.31
This was paid to cover the bill rendered to us by the Superin-
tendent of Insurance and certified to be for bills of examiners
for services, and expenses relating to the examination of the Com-
pany, and of appraisers for services and expenses in the appraisal
of the property of the Company, and counsel for services and ex-
penses in the examination of the real estate and mortgage hold-
ings of the Company.
February 24th, 1903. To Elmer H. Dearth, Insurance Com-
missioner, State of Minnesota $10,769 . 77
This sum was for the amount of the bill rendered to us by the
Insurance Commissioner for calcula,ting the reserve on the poli-
cies in force December 21st, 1901 — $1,076,977,204 of insurance
at one per cent, per thousand dollars.
May 6th, 1904. To Francis Hendricks, Superintendent of In-
surance, New York State $560 . 08
Paid for the bill rendered to us by tbe Department for the
bills for services rendered on the checking up of the records of
the Company as compared with the Department register.
We also made the following paymcnls pursuant to the statute
of Massachusetts requiring the payment by every life insurance
company doing business in the comnionwealtli annually by way
of compensation for the valuation of its policies two and a half
mills on every thousand dollars ijisnred by it on lives. The pro-
vision was repealed in 1902 as ailecting companies organized in
other States by Chapter 106 of the Laws of 1902:
June 4t-h, 1895 $1,103.44
June 2d, 1896- 1,106.48
May 13th 1897 1,217.91
May 11th, 1808 l,458.-7l
Exhibits — Part HI. 1233
June 2d, 1899 ; $1,665 . 66
June 4th, 1900 2,001.74
July 2d, 1901 ; 2,312 . 08
Very truly yours,
JOHN E. HEGEMA]!T,
President.
Exhibit No. 1004.
(Incorporated by the State of New York.)
METROPOLITAN LIFE INSURANCE 00.
Office of Actuary.
New York, November Yth, 1905.
Chas. E. Hughes, Esq.,
96 Broadway, New York City.
Dear Sie: — '■
On November 3d, we responded to questions 3, 5, 7, 8 and 9
of your letter of November 2d, and we now have the honor of
answering the remaining questions.
(1) Lapses. Total lapses each year for the years 1900 to 1904,
inclusive, separately stated as to the Industrial Department and
the Ordinary Department ; also the average rate of lapses during
the said, years, as follows :
Rate of lapses in first three months after insurance written.
Rate of lapses in second three months after insurance written.
Rate of lapses in third three months after insurance written.
Rate of lapses in fourth three inonths after insurance written.
Rate of lapses in second year after insurance written.
Rate of lapses in third year after insurance written.
Rate of lapses in fourth year after insurance written.
Rate of lapses in fifth year after insurance written.
In reply to this request, permit us to say that our policy ac-
counts are not kept in such a nianner as to be able to report the
rate of lapse in the divisions of time as stated by you. The ac-
counts are kept by calendar years, and we are only able, therefore,
to report the rate of lapse in each calendar year. Lapses for this
purpose incdude all cancellations outside of Not Taken Policies.
1234 Legislative Insurance Investigation.
. t
Some time ago we did take one week's industrial issue from
each month in the year IQOS, and followed this issue through a
period of 12 months with the following result : \
Rate of lapse in first three months after date of issue, 35.40.
Rate of lapse in six months after date of issue, 43. 5Y.
Rate of lapse in nine months after date of issue, 48.28.
Rate of lapse in twelve months after date of issue, 51.46.
With this explanation we enclose schedule as showing the rate
of cancelled to issue for the five years frpm 1900 to 1904, in-
clusive, in the Ordinary and Industrial Departments, stated sepa-
rately.
(2) Surrender values. Scale of surrender values for all dura-
tions giving a separate statement as to Industrial policies and
Ordinary policies on insurance issued at age 21.
In the Industrial department no cash values are promised ex-
cept on Adult 20-year endowments. We assume that your ques-
tion relates to cash surrender values, and enclose a list of such
values on all policies for>all years up to 20 years issued at age 21.
~(4) Amount of forfeited reserves in 1904, within the first three
years of insurance.
The amount of forfeited reserves in 1904, within the first three
years of insurance as reported in our Gain and LiQSs Exhibit to
the Minnesota Insurance Department, was $1,635,280. This
amount vyas for three calenda:^ years and not three full years of
insurance, and represented the technical or legal reserve which
was made good in large part by the company from its general
funds and not accumulated from the premiums received from
lapsed policies.
This amount does not represent a sum of money in the hands*
of the Company which by virtue of such lapse,, becamei its
property. For instance, at the end of 1904, the total accumula-
tions of the industrial policies issued during the years 1902, 1903
and 1904 were $1,903,718, whilst the legal reserve and other
actual liabilities respecting such policies amounted at that time
to $6,233,371, which deficit of $4,329,653 had to be furnished
from the general funds of the Company.
The fact is that it requires the accumulations of seven years of
the policies of any one year before we have sufficient funds to
meet the full reserve on our Industrial policies of that year.
Therefore, the fact that the forfeited reserve in 1904 with respect
to the policies of 1902, 1903 and 1904 amounted tq $1,635,240
Exhibits — Part III. 1235
is perfectly consistent, witli the fact that 'the Company had
furnished from its general funds at the end of 1904 the sum -of
$4,329,653 to provide the legal reserve of the policies of those
years, and it will not be until the years 1909, 1910 and 1911 that
the premiums from the policies of 1902, 1903 and 1904 will
provide their own legal reserve.
(6) Amount of insurance in force December 31st, 1904, class-
ifying same so as to show the respective amounts under the
following heads:
Ordinary Plan:
(a) Life
(b) Endowment
Intermediate Plan:
(a) Life
(b) Endowment
Industrial Plan :
■___ (a) Increasing Life and Endowment
(b) Infantile Endowment
(c) Adult Whole Life ;
(d) Young People's Endowment
Ce) 20-year Term and Endowment, and any other classes.
Enclosed you will find a schedule giving the information
requested.
Yours truly,
J. M. CRAIG,
Actuary.
Exhibit No. 1005. '
1. METEOPOLITAN" LIEE IISTSUKAI^CE COMPANY. '
' i8'r9.
mDUSTEIAL. In Force. Policies, 5,143; Insurance, $516,-
618.
OEDESTARY. In force. Policies, 7,680; Insurance, $11,150,-
349. (In red ink: Policies, 12,823; Insurance, $11,666,967.)
PREMIUM INCOME. Industrial, ; Ordinary,
; Total, $432,560.
INDUSTRIAL BUSINESS. Debit, $395. Increase of debit,
$395.'
TOTAL BUSINESS. Assets, $2,022,482. Income, $567,599.
■ 1879, Surplus, $269,681.
1236 Legislative Insurance Investigation.
1880.
INDUSTEIAL. In Torce. Policies, 110,193; Insurance,
$9,103,870.
OEDESTAEY. In force. Policies, 6,895; Insurance, $10,063,-
479. (In red ink: Policies, 117,088; Insurance, $19,167,349.)
PEEMIUM meOME. Industrial, $157,092; Ordinary,
$411,112; Total, $568,204.
INDUSTEIAL BUSllSTESS. Debit, $8,129; Increase of
debit, $7,734.
TOTAL BUSINESS. Assets, $1,947,822; Income, $690,555.
' 1880, Surplus, $259,434.
1881.
INDUSTEIAL. In Force. Policies, 190,348; Insurance,
$17,894,620.
OEDIls"AEY. In Force. Policies, 6,325; Insurance, $9,433,-
733. (In red ink: Policies, 196,673; Insurance, $27,328,353.)
PEEMIUM INCOME. , Industrial, 479,099.- Ordinary,
$379,958; Total, $859,057.
INDUSTEIAL BUSINESS. Debit, 14,168; Increase of debit,
6,039.
TOTAL BUSINESS. Assets, 1,973,047. Income, 976,139.
1881, Surplus, 275,094.
1882.
INDUSTEIAL. In force. Policies, 335,789; Insurance, 34,-
679,307.
OEDINAEY. In force. Policies, 5,843; Insurance, 8,566,-
445. (In red ink: Policies, 341,632; Insurance, 43,245,752.)
• PEEMIUM INCOME. Industrial, 981,872; Ordinary, 264,
643; Total, 1,246,515.
INDUSTEIAL BUSINESS. Debit, 27,274; Increase of debit,
13,106.
TOTAL BUSINESS. Assets, 2,002,464; Income, 1,354,268.
1882, Surplus, 279,907.
1883.
INDUSTEIAL. In force. Policies, 526,042; Insurance,
56^536,325.
OEDINAEY. In force. Policies, 5,00.6; Insurance, 6,888,-
782. (In red ink: Policies, 531,048;; Insurance, 3,425,107.)
PEEMIUM INCOME. Industrial, l,726,87g; Ordinary, 248,-
831; Total, 1,975,703.
INDUSTEIAL BUSINESS. Debit, 46,270; Increase of
debit, 18,996..
■ Exhibits — Part III. 123T
TOTAL BUSINESS. Assets, 2,186,622; Income, 2,082,619.
1883, Surplus, 127,368.
1B84.
, INDUSTEIAL. In force. Policies, 670,999; Insurance, Tl,-
965,635.
OKDINAEY. In force. Policies,' 4,448; Insurance, 5,692,785.
(In red ink: Policies, 675,447; Insurance, 77,658,420.)
PKEMIUM INCOME. Industrial, 2,632,878; Ordinary, 178,-
938; Total, 2,811,816.
INDUSTEIAL BUSINESS. Debit, 60,360; Increase of debit,
14,089.
TOTAL BUSINESS. Assets, 2,304,005; Income, 2,915,938.
1884, Surplus, 113,120.
1885.
INDUSTRIAL. In force. Policies, 829,833; Insurance, 91,-
- 434,252.
OBDINAEY. In force. Policies, 4,082; Insurance, 5,062,-
985. (In red ink: Policies, 833,915; insurance, 96,497,237.)
PEEMIUvM INCOME. Industrial, 3,337,493; Ordinary, 77,-
032; Total, 3,414,525.
INDUSTEIAL BUSINESS. Debit, 75,168; Increase of debit,'
14,809.
TOTAL BUSINESS. Assets, 2,784,954; Income, 3,528,877.
1885, Surplus, 206,382,
1886.
INDUSTEIAL. In force. Policies, 1,0'66,875; Insurance.
119,560,339.
OEDINAEY. In force. Policies, 3,759; Insurance, 4,604,-
351. (In red ink: Policies, 1,070,634; Insurance, 124,164,690.)
PEEMIUM INCOME. Industrial, 4,273,328; Ordinary,
164,768; Total, 4,438,096.
INDU\STEIAL BUSINESS. Debit, 97,935; Increase of debit,
22,767.
TOTA-L BUSINESS. Assets, 3,705,971; Income, 4,593,394. .
1886, Surplus, 291,996.
1238 Legislative Insurance Investigation.
, 188Y.
INDUSTEIAL. In force. Policies, 1,345,125; Insurance,
147,758,287.
OEDmARY. In fofce. Policies, 3,524; Insurance, 4,272,-
790. (In red ink: Policies, 1,348,649; Insurance, 152,031,077.)_
PEEMIUM INCOME. Industrial, 5,474,694; Ordinary, 144,-
073; Total, 5,618,767.
IKDUSTRIAL BUSINESS. Debit, 125,123; Increase of
debit, 27,188.
TOTAL BUSINESS. Assets, 4,907,024; Income, 5,829,716.
_1887, Surplus, 363,392.
1888,
INDUSTEIAL. In force. Policies, 1,632,642; Insurance,
176,533,142.
OEDINAEY. In force. Policies, 3,379; Insurance, 4,067,-
777. (In red ink: Policies, 1,636,021; Insurance, 180,600,919.)
PEEMIUM INCOME. Industrial, 6,776,919; Ordinary, 33,-
1-91; Total, 6,810,110.
INDUSTEIAL BUSIN'ESS. Debit, 152,951; Increase of
debit, 27,828.
TOTAL BUSINESS. Assets, 6,287,7815 Income, 7,086,219.
1888, Surplus, 427,023.
1889.
INDUSTEIAL. In force. Policies, 1,849,113; Insurance,
200,829,929.
OEDINAEY. In force. Policies,. 3,319; Insurance, 3,986,-
592. (In red ink: Policies, 1,852,432; Insurance, 204,816,521.)
PEEMIUM INCOME., Industrial, 8,215,454; Ordinary, 127,^
491; Total, 8,342,945.
INDUSTEIAL BUSINESS. Debit, 175,875; Increase ,of
debit, 22,924. '
TOTAL BUSINESS. Assets, 8,597,469; Income, 8,725,196.
1889, Surplus, 1,097,184.
1890.
INDUSTEIAL. In force. Policies, 2,096,595; Insurance,
231,115,440.
OEDINAEY. In force. Policies, 3,287; Insurance, 3,92:?,-
486. (In red ink: Policies, 2,099,882; Insurance, 235,0-37,920.)
Exhibits — Part III. 1239 •
PEEMIUM INCOME. Industrial, 9,259,132; Ordinary, 131,-
795; Total, 9,390,927.
IOT3USTEIAL BUSINESS. Debit, 201,275; Increase of
debit, 25,400.
TOTAL BUSINESS. Assets, 10,781,173; Income, 9,863,619.
■ 1880, Surplus, 1,117,029.
1891.
INDUSTEIAL. In force. Policies, 2,278,487; Insurance,
254,939,881.
OEDINAKT. In force. Policies, 3,153; Insurance, 3,767,-
882. (In red ink: Policies, 2,281,640; Insurance, 258,707,763.)
PEEIVHUM INCOME. Industrial, 10,705,095; Ordinary,
125,278; Total, 10,830,373.
INDUSTEIAL BUSINESS. Debit, 222,652; Increase of
debit, 21,337.
TOTAL BUSINESS. Assets, 13,626,984; Income, 11,423,-
497.
1891, Surplus, 1,088,833.
1892.
INDUSTEIAL. In force. Policies, 2,715,414; Insurance,
30'5,451,576.
OEDINAEY. In force. Policies, 4,446; Insurance, 5,316,-
300. (In red ink: Policies, 2,7l9,-860; Insurance, 310,767,876.)
PEEMIUM INCOME. Industrial, 12,385,466; Ordinary,
128,612; Total, 12,514,078.
INDUSTEIAL BUSINESS. Debit, 266,332; Increase of
Debit, 43,680.
TOTAL BUSINESS. Assets, 16,506,282; Income, 13,307,-
811.
1892, Surplus, 1,674,516.
1893.
INDUSTEIAL. In force. Policies, 2,932,064; Insurance,
343,917,746.
OEDINAEY. In force. Policies, 8,162; Insurance, 9,259,-
471. (In red ink: Policies, 2,940,^26; Insurance, 353,177,217.)
PEEMIUM INCOME. Industrial, 13,962,828; Ordinary,
398,386; Total, 14,361,214.
INDUSTEIAL BUSINESS. Debit, 297,786; Increase of
Debit, 31,454.
. TOTAL BUSINESS. Assets, 19i,343,705 ; Income, 15,216,237.
1893, Surplus, 2,109,690.
12 iO Legislative Insurance Investigation.
1894. ^
INDUSTEIAL. In force. Policies, 3,559,165; Insurance,
423,514.171.
ORDESTAET. In force. Policies, 15,744; Insurance, lY,-
861,196. (In red ink: 3,574,909; Insurance, 441,375,367.)
PEEMIUM IlSrCOME. Industrial, 16,361,604; Ordinary,
465,412; Total, 16,827,016.
INDUS.TEIAL BUSESTESS. Assets, 22,326,622; Income, 18,-
208,743.
1894, Surplus, 2,034,028.
1895.
ESTDUSTEIAL. In force. Policies, 3,458,846; Insurance,
416,062,194.
OEDDsTAEY. In force. Policies, 23,253; Insurance, 26,570,-
719. (In red ink: Policies, 3,482,099; Insurance, 442,632,913.)
PEEMIUM INCOME. Industrial, 17,584,425,; Ordinary,
752,493; Total, 18,336,918.
INDUSTEIAL BUSINESS. Debit, 354,492; Increase of
Debit, (In red ink: 14,766.)
TOTAL BUSINESS. Assets, 25,592,004; Income, 19,386,614,
1895, Surplus, 2,477,031.
1896.
INDUSTEIAL. In force. Policies, 3,643,569; Insurance,
454,068,004.
OEDINAEY. In force. Policies, 30,835; Insurance, 33,-
097,851. (In red ink: Policies, 3,674,404; Insurance, 487,165,-
855.)
PEEMIUM INCOME. Industrial, 18,301,159; Ordinary, 1,-
005,037; Total, 19,306,196.
INDUSTEIAL BUSINESS. Debit, 366,935; Increase of
Debit, 12,443.
TOTAL BUSINESS. Assets, 30,628,968; Income, 20,548,-
594.
1896, Surplus, 3,051,417. '
isg'^i
INDUSTEIAL. In force. Policies, 4,028,722; Insurance,
534,343,756.
OEDINAEY. In force. Policies, 52,789; Insurance^ 49,-
141,366. (In red ink: Policies, 4,081,511; Insurance, 583,486,-
122.)
PEEMIUM INCOME. Industrial, 19,992,740; Ordinary,
1,410,227; Total, 21,402,967.
Exhibits — Part III. 1241
INDUSTEIAL BUSINESS. Debit, 397,269; Increase of
Debit, 30,334.
TOTAL BUSINESS. Assets, 36,3T0,0T9; Income, 22,981,-
257.-''
■ 1897, Surplus, 3,684,204. i
1898.
INDUSTKIAL. In force. Policies, 4,317,274; Insurance,
591,427,272. ,
OEDINARY. In force. Policies, 82,511; Insurance, 74,-
780,578. (In red ink: Policies, 4,399,785; Insurance, 666,-
207,850.)
■PKEMIUM llSrCOME. Industrial, 21,058,950; Ordinary,
2,313,820 ; Total, 23,372,770.
INDUSTRIAL BUSINESS. Debit, 417,937; Increase of
Debit, 20,667.
TOTAL BUSINESS. Assets, 43,512,(^14; Income, 25,137,-
958.
1898, Surplus, 5,459,606.
1899.
INDUSTRIAL. In Eorce. Policies, 4,855,756; Insurance,
688,629,175.
GEDINAEY. In Force. Policies, 124,948 ; Insurance, 111,-
901,834. (In red ink: Policies, 4,980,704; Insurance, 800,531,-
009.)
PREMIUM INCOME. Industrial, 22,935,035; Ordinary,
3,656,616; total, 26,591,651.
INDUSTRIAL BUSINESS. Debit, 465,176; Increase of
DebitT 47,240.
TOTAL BUSINESS. Assets, 61,070,841; Income, 28,798,-
714.
1889, Surplus, 5,653,480.
1900.
INDUSTRIAL. In Eorce. Policies, 5,327,067; Insurance,
768,977,676.
ORDINARY. In Eorce. Policies, 166,990; Insurance, 154,-
900,241. (In red ink : Policies, 6,494,057 ; Insurance, 923,877,-
917.)
PREMIUM INCOME. Industrial, 24,740,964; Ordinary,
6,469,392 ; Total, 31,210,356.
INDUSTRIAL BUSINESS. Debit, 507,104; Increase of
Debit, 41,927.
1242 Legislative Insurance InvesHgation,
TOTAL BUSTJSTESS. Assets, 62,158,034; Income, 33,803,257.
1900, Surplus, 6,744,028.
1901.
INDUSTEIAL. In Force. Policies, 6,008,662; Insurance,
881,491,451.
OEDIIsrARY. In Force. Policies, 225,640; Insurance, 195,-
485;753. (In red ink: Policies, 6,234,302; Insurance, 1,076,-
977,204.)
PEEMIUM INCOME. Industrial, 27,324,781; Ordinary, 7,-
380,405 ; Total, 34,705,186.
• INDUSTRIAL BUSINESS. J)ebit, 573,594; Increase of
Debit, 66,491.
TOTAL BUSINESS. Assets 74,771,758; Income, 38,017,-
164.
1901, Surplus, 7,938,694. ;. -:;,.,,. ;
1902.
INDUSTRIAL. In Force. Policies, 6,698,291; Insurance,
981,676,306.
ORDINARY. In Force. Policies, 278,360; Insurance, 237,-
490,121. (In red ink: Policies, 6,976,651; Insurance, 1,219,-
166,427.)
PREMIUM INCOME. Industrial, 30,478,317; Ordinary, 9,-
175,408 ; Total, 39,653,725.
INDUSTRIAL BUSINESS. Debit, 637,059; Increase' of
Debit, 63,464.
TOTAL BUSINESS. Assets, 89,168,791; Income, 43,336,284.
1902, Surplus, 8,351,338.
1903.
INDUSTRIAL. In Force. PoUcies, 7,187,345; liisurance,
1,059,875,827.-
ORDINARY. In force. Policies, 336,570; Insurance, 282,.
505,630. (In red ink: Policies, 7,523,915; Insurance, 1,342,-
381,457.) ■
PREMIUM INCOME. Industrial, 34,100,670; Ordinary, 11,-
556,291; Total, 45,656,961.
INDUSTRIAL BUSINESS. Debit, 690,794; Increase of
Debit, 53,736.
TOTAL BUSINESS. Assets, 105,656,312; Income, 49,887,-
804. . > > >
1903, Surplus, 8,691,858.
Exhibits — Part III. 1243
1904.
INDTJSTEIAL. In force. Policies, 7,614,927; Insurance,
1,127,889,229.
OEDIISIAEY. In force. Policies, 415,177; Insurance, 342,-
535,052. (In red ink: Policies, 8,029,906; Insurance, 1,470,-
424,281.)
PEEMITIM INCOME. Industrial, 36,890,330; Ordinary, 13,-
9"1S :r> - I orjii. s>(i,M)^ !J^4.
INDUSTEIAL BUSINESS. Debit, 734,194; Increase of
Debit, 43,400.
TOTAL BUSINESS. Assets, 128,094,315; Income, 55,985,-
757.
19,04, Surplus 12,835,741.
Note: Eed ink indicates total business; that is, sum of In-
dustrial and Ordinary.
Exhibit No. 1006.
INDUSTEIAL ADDITIONAL BENEFITS AND CASH
DIVS.
1905.
Form 769— Eev. 12-04. 50-12-21-04.
THE PEUDENTIAL INSUEANCE CO. OF AMEEIOA.
Home Office, Newark, N. J.
ADDITIONAL BENEFITS AND CASH DIVIDENDS
ON
EEGULAE INDUSTEIAL POLICIES
Payable During 1905.
' Continuation of voluntary concessions first made in 1897 and
continued each year since then.
The Prudential Insurance Company announces to its old policy-
holders th"at the voluntary dividend concession first made in 1897
on its Eegular Industrial policies will be continued through the
year 1905.
1244 Legislative Insurance Investigation.
THE CONCESSION.
Additional Benefits
will be paid on all Eegular Industrial policies wMcli have been
five or more years in force and which become claims by death
during 1905. The amounts of such additional benefits may be
found from the tables on page 2 of this circular.
CASH DIVIDENDS
will be paid on all Eegular Industrial policies issued in 18Y5, 1880,
1885 or 1890 on reaching their fifteenth, twentieth, twenty-fifth
or thirtieth anniversary during 1905. These dividends are pay-
able in cash or may be applied in payment of premiums at the
option of the policyholders, and shall be applied for during 1905
through the agents who collect the premiums or at the offices of
their Superintendent. The amounts of these dividends may be
found from the table on page 3 of this circular.
N. B. — This concession does not apply to Special Industrial or
Special Adult policies, as such policies were issued at much lower
rates o£ premium.
ADDITIONAL BENEFITS EOE THE YEAK 1905.
If a person insured under a " Regular Industrial " policy in one
of the years given below dies during 1905, the Company will pay
not only the amount of the policy, but also the following addi-
tional benefit for each $100 of the sum insured by the policy; In
the case of an infantile policy (issued at age under 10) the Addi-
tional Benefit will be paid on the amount of policy at date of
death.
On policies dated in 18Y5, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of policy,
$1.40 ; after anniversary of policy, $1.00. First and last number
of policies issued during years stated in first column, first number,
1 ; last number, 2Y9.
On policies dated in 1876, additional benefit per $100. of orig-
inal insurance if death occurs in 1905, before anniversary of policy,
$1.30; after anniversary of policy, -$1.40; first and last number
of policies, issued during years stated in first column, first number,
280; last number, Y,904.
Exhibits — Part III. 1245
On policies dated in 1877, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of policy,.
$1.20; after anniAnersary of policy, $1.30. First and last number,
of policies issued during year stated in first column, first number,
7,905; last number, 18,425.
On policies dated in 1878, additional benefit per $100 of orig-
inal insurance if deatji occurs in 1905, before anniversary of pol-,
icy, $1.10; after anniversary of policy, $1.20. First and last
number of policies issued during year stated in first column, first
number, 18,426; last number, 38,489.
On policies dated ia 1879, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of policy,
$1.00; after anniversary of policy, $1.10. First and last numbers
of policies issued in year stated in .first column, first number,
38,490; last number, 74,368.
On policies dated in 1880, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of policy,
$1.40; after anniversary of policy, $1.00. First and last num-
bers of policies issued during year stated in first column, first
number, 74,369; last number, 176,224.
On policies dated in 1881, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of policy,
$1.30; after anniversary of policy, $1.40. First and last num-
ber of policies issued during year stated in first column, first n'am-
ber, 176,225; last number, 295,956.
On policies dated in 1882, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of policy,
$1.20; after anniversary of policy, $1.30. First and last num-
bers of policies issued during year stated in first column, 295,957 ;
last number 440,190.
On policies dated in 1883, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of policy,
$1.10; after anniversary of policy, $1.20. First and last num-
bers of policies issued during year stated in first column, first
number, 440,191; last number, 656,393.
On policies dated in 1884, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of .policy,
$1.00; after anniversary of policy, $1.10. First and last num-
bers of policies issued during year stated in. first column, first
number, 656,394; last number, .906,221.
On policies dated in 1885, additional benefit per $100 of in-
.-iurance if death occurs in 1905, before anniversary of policy,
1246 Legislative Insurance Investigation,
$1.40 ; after anniversary of policy, $1.00. First and last numbers
of policies issued during year stated in first column, first number,
906,222 ; last number, 1,192,3Y3.
On policies issued in 1886, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of policy
$1.30, after anniversary of policy, $1.40. First and last numbers
of' policies stated in first column, first number, 1,192,374; last
number 1,562,180. ,
-On policies dated in 1887, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of pol-
icy, $1.20; after anniversary of policy, $1.30. First and kst
numbers of policies issued during year stated in first column,
first number* 1,562,181 ; last number, 2,057,612.
On policies dated in 1888, additional benefit per $100 ^f orig-
inal insurance if death occurs in 1905, before anniversary of pol-
icy, $1.10; after anniversary of policy, $1.20. First and last
numbers of policies issued during year stated in first -column,
first number, 2,057,613 ; last number, 2,582,527.
. On policies dated in 1889, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of pol-
icy, $1.00; after anniversary of policy, $1.10. First and last
numbers of policies issued during year stated in first column,
first number, 2,582,528; last number, 3,270,425.
'On policies dated in 1890, additional benefit per -$100 of orig-
inal insurance if death occurs in 1905, before anniversary of pol-
icy, $4.50; after auniversary of policy, $1.00. First and last
numbers of policies issued during year stated in first column,
first number, 3,270,426 ; last number, 4,033,441.
On policies issued in 1891, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of
policy, $4.00; after anniversary of policy, $4.50. First and last
numbers of policies issued during year stated in first column,
first number, 4,033,442 ; last number, 4,610,592.
On policies dated in 1892, additional benefit per $100 of orig-
inal insurance if death occurs during 1905, before anniversary of
policy, $3.50; after anniversary of policy, $4.00 First and last
numbers of policies issued during year stated in first column,
first number, 4,610,59,3 ; last number, 5,379,348.
On policies dated, in 1893, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of
policy, $3.00; after anniversary, of policy, $3.50. First and last
ExMUts — Part III. 1247
numbers of policies issued during year stated in first column,
first number, 5,379,349 ; last number, 6,415,347.
On policies dated in 1894, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of
policy, $2.70 ; after anniversary of policy, $3.00. First and last
number of policies issued during year stated in first column, first
number, 6,415,348 ; last number, 8,060,145.
On policies dated in 1895, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of
policy, $2.40 ; after anniversary of policy, $2.70. First and last
numbers of policies issujed during year stated in first column, first
number, 8,060,146; last number, 9,056,405.
On policies dated in 1896, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of
policy, $2.10 ; after anniversary o:^ policy, $2.40. First and last
numbers of policies issued during year stated in first column, first
number, 9,056,406 ; last number, 9,972,999.
On policies dated in 1897, additional benefit per $100 of original
insurance if death occurs in 1905, before anniversary of policy,
$1.80 ; after anniversary of policy, $2.10. First and last numbers
of policies issued during year stated in first column, first number,
9,973,000 ; last n^mber, 10,903,773.
On policies dated in 1898, additional benefit per $100' of origi-
nal insurance if death occurs in 1905, before anniversay of policy,
$1.50; after anniversary of policy, -$1.80. First and last number
of policies issued during year stated in first column, first number,
10,903,774; last number, 11,886,045.
On policies dated in 1899, additional benefit per $100 of orig-
inal insurance if death occurs in 1905, before anniversary of •
policy, $1.20; after anniversay of policy, $1.50. First and last
numbers of policies issued during year stated in first column, first
number; 11,866,046; last number, 13,181,055.
On policies dated in 1900, additional benefit per $100 of
original insurance if death occurs in 1905, before anniversary of
policy,— ; after anniversary of policy, $1.20. First and last num-
ber of policies issued during year stated in first column, first num-
ber, 13,181,056 ; last number, 14,575,117. /
Oash clivi-ilends have already been paid on regular industrial
policies vsfhich have been in force fifteen or more years.
To find the amount payable on policy in case of death, during
190'5, of the person insured, multiply the amount insured in policy
by 100 plus the additional benefit opposite the year in which policy
1248 Legislative Insurance Investigation.
■was issued, as above, and divide the result by $100. Example,
to find amount payable on a policy of $144 issued in 1894, which
has been in force for eleven full years, multiply 144 by 103 and
point off two places to the left; the result is $148.32^ and this
amount will be paid by the Company in case of the death of the
person insured.
CASH DIVIDENDS FOR THE YEAR 1905
Payable as follows:
On policies issued in 1875, 1880 or 1885, when they have
reached their twentieth, twenty-fifth or thirtieth anniversary.
On policies issued in 1890, when they have reached their fif-
teenth anniversary.
CASH DIVIDENDS BY AGES, ON BASIS OF A FIVE-
CENT PREMIUM.
Age next birthday when insured, 2; policies issued in 1875,
1880 and 1885, $1.70; 1890, $5^40.
Age next birthday when insured, 3 ; policies issued iji 1875,
1880 and 1885, $1.70; 1890 $6.40.
Age next birthday when insured, 4; policies issued in 1875,
1880 and 1885, $1.70; 1890; $5.40.
Age next birthday when insured, 5; policies issued in 1876,
1880 and 1885, $1.70; 1890, $5.40.
Age next birthday when insured, 6; policies issued ip 1875,
1880 and 1885, $1.70; 1890, $5.40.
Age next birthday when insured, 7 ; policies issued in 1875,
1880 and 1885, $1.70; 1890, $5.40.
Age next birthday when insured, 8 ; policies issued in 1875,
1880 and 1885, $1.70; 1890, $5.40'.
Age next birthday when insured, 9 ; policies issued in 1875^
1880 and 1885, $1.70 ; 1890, $5.40.
Age next birthday when insured, 10; policies issued in 1876,
1880 and 1885, $1.70; 1890, $5.40.
Age next birthday when insured, 11 ; policies issued in 1875,
1880 and 1885, $1.70; 1890, $5.30.
Age next birthday when insured, 12 ; policies issued. in 1876,
1880 and 1886; $1.70; 1890, $5.20.
Age next birthday when insured, 13 ; policies issued in 1875,
1880 and 1885, $1.70; 1890, $5.20.
Age next birthday when insured, 14; policies issued in 1875,
1880 and 1885, $1.70; 1890, $5.00.
Exhibits — PaH III. 1249
Age next birthday when, insured, 15; policies issued in 18Y5,
1880 and 1885, $1.60; 1890, $4.80.
Age next birthday when insured, 16 ; policies issued in 1875,
1880 and 1885, $1.60; 1890, $4.70.
Age next birthday when insured, 17 ; policies issued in 1875,
1880 and 1885, $1.60; 1890, $4.60.
Age next birthday when insured, 18 ; policies issued in 1875,
1880 and 1885, $1.50; 1890, $4.50.
Age next birthday when insured, 19 ; policies issued in 1875,
1880 and 1885, $1.50; 1890, $4.40.
Age next birthday when insured, 20; policies. issued in 1875,
1880 and 1885, $1.50; 1890, $4.30.^
Age next birthday when insured, 21; policies issued in 1875,
1880 and 1885, $1.40; 1890, $4.20.
Age next birthday when insured 22; policies issued in 1875,
1880 and 1885, $1.40; 1890, $4.10.
Age next birthday when insured, 23 ; policies issued in 1875,
1880 an-d 1885, $1.40; 1890, $4.00.
Age next birthday when insured, 24; policies issued in 1875,
1880 and 1885, $1.30; 1890, $3.90.
Age next birthday when insured, 25 ; policies issued in 1875,
1880 and 1885, $1.30; 1890, $3.80.
Age next, birthday when insured, 26; policies issued in 1875,
1880 and 1885, $1.30; 1890, $3.70,
Age next birthday when insiired, 27; policies issued in 1875,
1880 and 1885, $1.30; 1890, $3.60.
Age next birthday when insured, 28 ; policies issued in 1875,
1880 and 1885, $1.20; 1890, $3.50.
Age next birthday when insured, 29; policies issued in 1875,
1880 and 1885, $1.20; 1890, $3.40.
Age next birthday when insured, 30 ; policies issued in 1875,
1880 and 1885, $1.20; 1890, $3.30.
Age next birthday when insured, 31 ; policies issued in 1875,
1880 and 1885, $1.10; 1890, $3.20.
Age next birthday when insured, 32 ; policies, issued in 1875,
1880 and 1885, $1.10 ; 1890, $3.00.
Age next birthday when insured, 33; policies issued in 1875,
1880 and 1885, $1.10; 1890, $2.90.
Age next birthday when insured, 34; policies issued in 1875,
1880 and 1885, $1.00; 1890, $2.80.
40
1250 Legislative Imurwice Invesiigaiion.
Age next birthday ■when ineiared, 35; policies issued in 187-5,
1880 and 1885, $1.00; 1890, $2;80.
Age next birthday when insured, 36 ; policies issued in 1675,
1880 and 1885, $1.00 ; 1890, $2.70.
Age next birthday when insured, 37 ; policies issued in 1875,
1880 and 1885, $.90; 1890, $2:50.
Age next birthday when insured, 38; policies issufed in 1875,
1880 and 1885, $.90; 1890, $2.40.
Age next birthday when insured, 39 ; policies issued in 1875,
1880 and 1885, $.90; 1890, $2.30.
Age next birthday when insured, 40 ; policies issued in 1875,
1880 and 1885, $.80; 1890, $2.30.
Age next birthday when insured, 41 ; policies issued in 1875,
1880 and 18^5, $.80; 1890, $2.20.
Age next birthday when insured, 42 ; policies issued in 1875,
1880 and 1885, $.80; 1890, $2.10.
Age next birthday when insured, 43; policies issued in 1875,
1880 and 1885, $.70; 1890, $2.00.
Age next birthday when insured, 44; policies issued in 1875,
1880 and 1885, $.70; 1890, $1:90.
Age next birthday when insured, 45 ; policies issued in 1875,
1880 and 1885^ $.70; 1890, $1.90.
Age next birthday when insured, 46 ; policies issued in 1875,
1880 and 1885, $.70; 1890, $1.80.
Age next birthday when insured, 47 ; policies issued in 1875,
1880 and 1885, $.60; 1890, $1.80.
Age next birthday when insured, 48; policies issued in 1875,
1880 and 1885, $.60 ; 1890, $1.70.
Age next birthday when insured, 49; policies issued in 1875,
1880 and 1885, $.60; 1890, $1.60.
Age next birthday when insured, 50 ; policies issued in 1875,
1880andl885, $.60;. 1890, $1.60. -'
Age next 'birthday when insured, 51 ; policies isstled in 1875,
1880 and 1885, $.50 ; 1890, $1.50.
Age next birthday when insured, 62; policieB issued in 1876.
1880 and 1885, $.50; 1890, $1;40.
Age next birthday when insured, 53 ; policies issued in 1875,
1880 and 1885, $.50; 1890, $1.40.
Age next birthday when insured, 64; policies issued in 1875,
1880 and 1885, $.50; 1890, $1.40.
Age next birthday when insured, 55; policies- issued in 1875,
1880 and 1885, $.40 ; 1890, $1.30.
't!xUbHs — Part Hi.
12e
56
policies issued in 1875,
policies issued in 1875,
policies issued in 1875,
policies issued in 1875,
policies issued in 1875,
policies issued in 1875,
policies issued in 1875,
policies issued in 1875,
policies issued -in 1875,
-policies issued in 1875,
policies issued in 18-76,
policies issued in 1875,
policies issued in 1875,
policies issued -in 1875,
policies issued in 1875,
1880 and 1885, $.30 ; 1890, $.60.
Cash dividends have already been paid on regular industrial
policies which have been in force fifteen or more yeaVs.
To find cash dividends on a ten-cent policy mUjltiply the above
amounts by 2, by 3 for a fifteen-cent policy, and so on. For
example, on a policy issued in 1890, at age 30, premium 10 cents,
the Company v?ill pay in 1905, after the policy has reached its fif-
teenth anniversary, a cash dividend of $6.60.
. Age next birthday when insured,
1880 and 1885, $.40; 1890, $1.20.
Age next birliiday when insured, 57
1880 and 1885, $.40 ; 1890, $1.20.
Age next birthday when insured, 58
1880 and 1885, $.40; 1890, $1.10.
Age next birthday when insured, 59
1880 and 1885, $.40; 1890, $1.00.
Age next birthday when insured, 60
1880 and 1885, $.3o"; 1890, $1.00.
Age next birthday when insured, 61
1880 and 1885, $.30 ; 1&90, $1.00. .
A^ next birthday -when insured, 62
1880 and 1885, $.30 ; 1890, $.90.
Age next birthday when insured, 63
1880 and 1885, $.30 ; 1890, $.90.
Age next birt°hday when insured, 64
1880 and 1885, '$.30; 18'9"0, $.80.
Age next birthday when insured, 65
1880 and 1885, "$.30; 1890, $.80.
Age next birthday v^hen inisured, 66
1880 and 1885, $.30; 18'9'0,'$.70.
Age next birthday when insured, 67
1880 and 1885, $.30 ; 1890, $.70.
Age next birthday when insured, 68
1880 and 1885, $.30 ; 1890, $.60.
Age next birthday when insured, 69
1880 and 18B5, $.30 ; 1890, $.60.
Age next birthday when insured, 70
1252 Legislative Insurance Investigation.
^— — ■ —:
Exhibit No. 1007.
(Marked for identification.)'
Exhibit No. 1008.
MUTUAL IIFE INSURA^tfCE COMPANY OF NEW YORK.
Advertising (Payments to Individuals Only).
1901. ,
Jan. 9. F. M. Crossett $100.00
9. Oarl Hauser 50 . 00
16. E. W. Rogers 2,750.00
16. E. T. Howard 160.00
16. Howard Lampoon 12 . 50
le: W. S. Walker 500.00
23. G.' B. M. Harvey 2,500.00
23. D. A. Curtis 312 . 00
Feb. 27. J". Dannenberg 25 .00
March 6. J. W. Grayhurst , 100.00
6. Robt. Johnston 50.00
6. E. T. Howard 130.00
6. K M. Gillam 28.89
13. D. A. Curtis 294.00
i 13. Robt. W. Neal ' 50 . 00
I 20. M. M. Gillam 263 . 35
■'' 27. M. M. Gillam 346 . 95
April 10. M. M. Gillam 313.90
10. Chas. H. Nicoll 150.00
10. M. M. Gillam 609 .91
17. J. S. Bloomingston 125 . 00
17. J. S. Bloomington 75 . 00
24. M. M. Gillam 669 .67
24. J. D. Reeves 19 . 89
JVlay 1. Walter S. Mandeville . . , ., 136 . 00
1. Robt. A. Reid , 250 . 00
1. M. M. Gillam 734.46
' 1. Daniel Hartman 1,987. 50
8. M. M. Gillam 388 . 12
Exhibits — Part III. 1253
May 15. M. M. Gillam ,. $441.14
22. M. M. Gillam , T36.35
June 5. M. M. Gillam , 138 .01
12. E. T. Howard 72.00
12. M. M. Gillam 3,236.71
26. M. M. GiUam 1,514.87
July 3. M. K Gillam , 4«8.79
ip. D. A. Curtis 304.00
10. M. M. Gillam 1,485.23
17. M. M. Gillam. 740.71
17. W. S. Walker 500.00
24. M. M. GiUam 985.16
31. M. M. Gillam 194.70
Aug. 7. M. M. Gillam , 500.82
14. M. M. Gillam 1,45S.36
21. M. M. Gillam 767.26
28. M. M. Gillam. .- 1,029.04
Sept. 4. M. M. Gillam 319 . 24
4. Josepli Lowenberg 60 . 00
11. M. M. Gillam ■ r 941.68
18. M. M. GiUam.' '. . 1,330.34
18. O. E. Holknbeck ,. 4.50
25. M. M. Gillam 185.10
Oct. ^. M. M. Gillam 510.27
9. D. A. Curtis 310 . 00
9, M. M. Gillam 704.14
16. M. M. Gillam 514.87
16. C. A. Mahoney 500.00
23. J. W. Grayhurst 100 . 00
23. M. M. Gillam 1,723 . 57
30. M. M. Gillam 984. 16
Nov. 6. E. T. Howard 770.00
6. M. M! Gillam ^589.42
13. E. T, Howard ' 256 .00
13. M. M. GiUam 881 . 19
20. M. M. GiUam 556 . 64
20. E. T. Howard 436 ,00
27. F, T. Adler • 150.00
27. M. M. GiUam 396 . 34
27. E. T.-Howard 120.00
27. E. T. Howard 1,250.00
Dec. 4. E. T. Howard 212.00
1254 Legislative Insurance Investigation.
Dec. 4. M. K Gillam $1,069.-34
11; E. T. Howard 190.00
11. p. A. Curtis ' 294.. 00
11. M. M. Gillam . 1,264.31
18. E. T. Howard . 654.00
18. M. M. Gillam 567.34
24. E. T. Howard 344. 00
, 24. M. M. Gillam ; 220.71
31. E. H. Spear . ^ 298.00
1902.
Jan. 2. E- T. Howard 280 . 00
2. E,.T. Howard , 258.00
•2. M. M. Gillam 223 . 99
8. E. T. Howard 174.. 00
8.- E. T. Howard 120 . 00
8. M. M. Gillam 906 . 52
15. M. M. Gillam . 1,435 . 20
22. W. S. Walker ., . . 500.00
22. Jos. Lowenberg 60.00_
22. M. M.- Gillam 844. 89
29. Thos. Wliittaker 60 . 00
29. E. T. Howard . 378 .00
29. M. M. Gillam V 976.86
Eeb. 5. M. M. Gillam _ 251. 02
11. E. T. Howard 188 . 00
11. E. T. Howard . . ; 118 . 80'
11. James D. Clifford 50 . 00
11. M. M. Gillam .'...' , , 393 .47
11. A. E. Hawell 100. 00
19. M. M. Gillam. 273 . 78
March 5. M. M. Gillam 53 . 59
5. M. M. Gillam . , 29-..25
5. G. .W. Butler .' 1,435 . 00
12. E. T. Howard 300 . 00
26. M, M. Gillam 154.41
26. G. Dannenberg , , 25.00
April 9. H. C. Sommers 625 . 00
16. Alfred B. Lukens . .- 5 . 00
16; E. T. Howard. 140 00
23. K M. Sheffield ■.....-.. SY.'so
23. Edward J. B. Pruse 8 ! 78
Exhibits^ Part III. 1255
April 30. J. E. Yan Doren , $85 . 85
30. Wm. H. Baker 25.00
May 14. A, Trank Richardson 32 .40
14. Albert D. Blashfield 25.00
14. D. A. Curtis 285.00
21.. Charles Eittenhoiise 5.00
28. ]Sr. M. Sheffield 18 .20
June 11. E. T. Howard 206 . 00
11. E. H. Spear .' 300.00
18. R.A. Crothers 23 . 00
,25. Henry Eomeike Y . Y4
July 9. C, W. Tyler.. 15 .00
16. E. T. Howard 114.00
16. E. T. Howard 26 . 00
25. A. C. Eields 42 .00
25. AV. S. Walker , 500.00
30. Melville D. Landon 150 . 00
31. W. E. Boker 25 . 00
Aug. 13. W. E. Boker , 12 . 50
13. Edward T. Howard. 24.00
13. D. A. Curtis 310.00
13. Ethel Cheshire 8 . 00
13. W. D. Law 1 . 50
- 20. K M. Sheffield, r , 34.68
2Y. J. E. Van Doren 110.93
27. Paul Black 5.40
27. Paul Black 4.80
, 27. Paul Black : '. 9 .20
27. Paul Black 2.20
Sept 10. N. M- Sheffield 6.12
10. Lqwis Saxby • 10 . 00
17. N. M, Sheffield 20 . 50
17. W. S. Sullivan 34. 85
24. Paul Black 9.20
24. Paul Black 24.20
24. Albert Prank 17.78
24. j^lbert Frank * 26 . 27
24. Geo. W. Ehgelhardt 10 . 00
24. W. P. W. Vesey , 100.00
Oct'. 15. Vreeland-Benjamin ,6.10
15. S. A. Barnes .600 . 00
22. «■. M. Sheffield 10 . 20
22. G-. E. Kennedy 10 . 00
,1256 Legislative Insurance Investigation.
Ocl. 22. John W. Grayhurst , " $100.00
Nov. 12. Walter B. Leonard 1,487.50
12. E. E. Burton 1,135.00
19. W. E. Stewart 14.20
19. W. F. W. Vesey 20.00
19. W. S. Sullivan • 21 . 25
19. E. H. Spear 300 . 00
26. N. M. Sheffield 62.83
Dec. 3. Horatio 0. King 50 . 00
10. W. E. Stewart 18 . 50
10. E. A. Curtis 220.00
17. Paul Black 31 .40
17. -K M. Sheffield 22.85
24. K M. Sheffield - 34. 28
31. J. A. Eichards . : 200 . 00
31. Paul Black 22 . 00
31. N. M. Sheffield 19 . 99
1903.
Jan. 7. W. S. Walker , , 500 . 00
.7. Joseph Lowenberg i. . 7 . 48
7. Thos. Whittaker ^ . . 60 . 00
7. E. H. Spear 29-8.00
14. Carl Hauser 50 . 00
21. Paul. Black 9 . 00
21. Ohas. A. Selden 12 . 00
28. Traeey Greaves 70 . 00
28. Ohas. A. Selden , 30 . 10
28. B. E. Williams .• 2,750.00
28. W. S. Sullivan :. 25 . 01
28. Paul Black , 1.50
Feb. 4. F. W. Crane '5 . 00
4. Chas. A. Selden 20.50
11. Lewis Saxby . i. . ' 114.00
11. Edward T. Howard 120 .00
11. D. A. Curtis 500.00
25. Paul Bla€k ,. . 2 . 60
25.'Paul Bladk ! 267.12
25. Paul Black ; 4.40
25. Chas. A. Selden . 20.00
25. K M. Sheffield 16 .^07
25. Jos. Grossman 100 . 00
28. J. M. Bernard 450 . 00
Exhibits — Part III.
Mar. 4, Eobt. W. JSTeal
4. E. M. Secor '.
11; Frank A. Burrelle
11. E. H. Spear
18. Herbert W. Bloomingston .
18. W. S. Sullivan .' . . .
18. 0. J. Smith
25. Axthnr Greaves ,.
25. Paul Black
25. etas. A. Selden
31. Chas. E. Parsona . .,
April 15. Ohas. E. Parsons
15. Yreeland-Benjamin
15. "W. E. Stewart
15. W. S. Sullivan
15.1 BE. C. Sommers
22. 0. J. Smith .
29. W. E. Scott
29. 'N. M. Sheffield
May 6. Herbert W. Bloomingston
6. O.J. Smith
6. E. H. Spear ,. .
6. Ohas. E. Parsons
13. O. J. Smith
20. Melville D. Landon
20. 0. J. Smith
27. W. E. Stewart
27. Ohas. Travey Bonson
27. W. Lee Starke
27. G-. A. England ;
27. Allan Eorman
27. 0. J. Smith
29. 0. J. Smith
June 3. K M. Sheffield
3. Oiias. E. Parsons
10. N. M. Sheffield
10. W-. J. 0. Meighan
24. Vreeland-Benjamin
24. W. E. Stewart
30 0. J. Smith
.Tuly 1. N. M. Sheffield
8. Granville M. White
$50.00
1,850.00
128.00
350.00
84.00
8.84
115.00
50.00
6.20
2.00
3,741.53
3J631.51
30.46
28.50
145.00
625.00
110.00
9.57
4.46
125.00
325.00
295.00
1,050.70
375.00
150.00
450.00
27.00
43.00
6.02
12.00
550.00
675.00
300.00
15.68
2,119.26
8.67
15.00
18.20
11.00
70.00
19.60
20.00
1^58 Legislative Insurance investigation,
July 8. O.J. Smith $250 .OO
15. W. S. Walker 500.00
15. Paul Black 5 . 60
15. K ;M. Sheffield ■. 171 . 10
15. W. E. Stewart 15.00
15. J. Knch 146 . 83
22. K M. Sheffield 29 . 15
29. G. A. England 1.97
29. C. J. Smith 70.00
Aug. 5. K K Sheffield ; 9 .49
12. H. C. King 50.00
19. 0. J. Smith ' S3.00
19. G. A. England 4. 56
26. A. G. Hall 100.00
31. 0. J. Smith. 110.00
31. G. A. England 1.75
Sept.- 9. K M.. Sheffield 12.76
9. ¥. M. Sheffield 1.90
9. K M. Sheffield 27 . 82
9. Alfred T. Poggenburg 2 .90
16. G. A. England 1.06
23. ]Sr. M. Sheffield 13.09
23. ]Sr. M. Sheffield 27 . 82
Oct. 7. H. 0. Sommers 625 . 00
14. M. Lee Starke 29 . 81
14. E. H. Spear. 300.00
21. L. W. Lawrence 502 . 80
21. C. J. Smith 73.00
28. K M. Sheffield 23.56
Nov. 4. L. W. Lawrence 886.20
L 0. J. Smith '.- 73.00
18. Paul Black 40.32
18. M. Lee Starke 68 . 54
18. M. Lee Starke 74, 26
18. N. M. Sheffield - 175.12
18. L. W. Lawrence 965 . 70
18. ISr. M. Sheffield 12.44
18. Randolph Kirigsley 6 . 00
25. 0. M. Beattie 315 . 00
25. E. W. Eogers 1,475.00
25. E. Holden 298 .00
25. J. B. Craig 1,275.00
M^UhUs — Fan III 1259
mov. 25. M. Lee Starke , . $57.12
25. M. Lee Starke 57.12
25. K M. Sheffield 11.20
25. K M. Sheffield 14.07
30. 0. J. Smith 57.00
30. Rudolph Kingsley 24.00
Dec. 2. Herbert W. Blaommgston 125 . 30
2. L. W. .Lawrence 1,378.50
16. Edwin O. Lane 27.25
16. Paul iBlack 41.05
16. O.X. Smith 115.00
23. L. W. .Lawreifce 771.55
23. L. W. Lawrence . . : , . 1,081.30
23. Eudolph Kinsley. 38.00
30. E. .H. Spear 150.00
30. Herbert W. Bloomingston 100 . 00
1904.
Jan. 6. Thos. P. ICorgan 2,343.90
6. L. W. Lawrence 910.35
15. Geo. E. Beach 1,250.00
15. J. A..IliGhards 96.00
15. W. S. Walker 500.00
15. C. J. Smith 64.00
15. Jas. Carter 854.76
15. "W. W. Dawson 79 .42
20. L. W. Lawrence 1,446 . 67
20. Oafl Hauser 50.00
20. Paul Black 8 .40
20. Chas. J. Billson 17.39
■2'^. K M. Sheffield 11.78
20. J. A. Richards 272 .00
27. L. E. Hamersly, Jr 25 . 00
27. "W. S. Sullivail " 11 . 30
27. R. F, Wilson 750.00
Feb. 3. L. W. Lawrence 525 . 30
10. M. Lee Starke ;' '. 85 .68
10. Ed. T. Howar-' 35 . 00
10. q. J. Smith , 87.00
17. K M. Sheffield 20 . 19
17. M. Lee Starke 61 . 88
17. L. W. Lawrence 391 . 10
17. M. Lee Starke 57 12
1260 Legislative Insurance Investigation.
Eeb. 17. M. Lee Starke $1.53
lY. Paul Black 39.00
17. K M. ShefBeld 2.95
24. M. Lee Starke 26.66
24. 0. J. Billson 18.70
24. Paul Black 33.32
29. E. H. Spear 296.00
29. 0. J. Smith .^ 200.00
^Mar 9. R W. Neal , .' ;. 52.00
9. J. A. Kicliards 120 . 00
9. K M. Sheffield 130.74
9. L. "W. Lawrence 642 . 15
9. A. Bollaert 50.00
16. H. W. Bloomingston . 137.50
16. Paul Black 27 . 52
16. Eudolph Kingsley 10 . 00
23. P. H. Kellogg 7.50
23. Moses King 25 . 00
23. H. C. Sommers 625.00
30. L. W. Lawrence 542 . 50
31. Arthur Connor 164.03
31. "W. S. Sullivan 20.30
April 6. L. H. Crall 31.07
6. N. M. Sheffield 22. 73
6. 0. Jr Smith 70.00
13. L. "W. Lawrence 493.08
20. Paul Black 44.48
27. L. W. Lawrence 321 . 60
27. N. M. Sheffield 3.44
27. E. H. Spear 298 . 00
27. Rudolph Kingsley ,33.33
30. Arth. Connop 70. 13
May 4. ISr. M. Sheffield..- 11.66
.11. Jas. Sullivan r. . . 3 . 75
11. L. W. Lawrence .■ 262 . 00
11. 0. J. Smith 65 . 00
18. Paul Black " 8.50
25. L. W. Lawrence 229 . 55
25. Moses King 1^460 . 00
25. J. Howard, Jr , 2,500.00
31. A. Connor 36,30
Exhibits — Pari III. 1261
June 8. K M. Sheffield $165.19
22. K K Sheffield 31.94
22. Henry Romeike 40.00
22. E. W. BuUinger T.QO
22. C. J. Smith 84.00
29. L. W. Lawrence 190. 90
30. E. H. Spear '. 298.00
30. C. Connor 48 . 08
July 6. N. M. Sheffield " 4.40
6. Alf. T. Poggenberg .' 32.40
6. Geo. A. England 600.00
13.-M. Lee Starke 49.50
20. "W. S. Walker 500.00
20. Eraneis E. Eiteh 12.50
Aug. 3. O. Connor 40. 84
3. 0. J. Smith 64.00
10. E. W. BuUinger 84.00
17. L. "W. Lawrence 158. 10
31. Arth. Connor 36.60
Sept. T. Paul Black 12.20
7. A. G. Hall 106.00
14. E. Waddoek - 25.00
14. C. J. Smith 82.00
21. N. M. Sheffield 24.59
21. H. W. Bloomingston 125.00
, 21. H. O. Sommers 625.00
28. L. W. Lawrence 216.30
30. G. J. Smith 115.00
30. A. Connor 47. 83
Oct. 12. A. G.Hall , 100.00
12. C. J. Smith 120.00
19. J. W. Grayhurst . ., 50.00
19. E. H. Spear 298.00
26. L W. Lawrence 199.21
26. k M. Sheffield ■ ^ 4.25
26. J. L. Hoyt, , 637.28
■31. A. Connor 38.63
31. 0. J. Smith . ., 85.00
■ 31. W. S. SuUivan 7.05
Nov. 9. C. J. Smith 215.00
16. L. W. Lawrence 247.00
16. Koses King 3 .00
1263 Legislative Insurance Investigation.
Nov. 16. J. H. Costello , , $84Oi.O0
23. Paul Black 15.80
30. L. W. Lawrence 422 . 13
30. Allan Forman 2Y5 . 00
30. Arth. Connor .^ 43 . 02
Dec. 7. Alf. T. Ppggenberg ^. . 16. 60
14. L. W Lawrence ., 288.75
21. H. Schoemps 2.50
28. L. W. Lawrence . 390.75
28. Margaret Stewart 25 . 00
28. C. J. Smith 135.00
31. A. Connor ,. ., • 78.67
1905.
Jan. 4. D. A, Curtia 370.00
11. E. T. Howard 230. 00
11. H. W. Bloomingston 13 . 50
11. W. S. Walker 1,250. 00
18. L. W. Lawrence 407 . 92
18. Paul Black 6.20
18. C. J. Smith 85. 00
25. L. W. Lawrence 318. 55
-25. Carl Houser 50 . 00
25. C. D. Lakey 100.00
25. Thos. Whittaker 60 . 00
31. J. Howard, Jr. 1,500. 00
31. A. Connor 69 . 96
Feb. 8.- C. D. Lakey 125 . 00
8. E. Bouchey 15 . 00
15. K M. Sheffield , 47.60
15. A. E. Harrell 100.00
15. L. W. Lawrence 346 . 30
21. L. W. Lawrence 1,413 . 43
31. C. D. Lakey 100 . 00
21. C. J. Smith , -265 . 00
28. J. A. Pearsall : ,. . 886 . 25
28. A. Connor 64. 19
March 1. L. W. Lawrence ,....,..,. . "441 . 70
1. Eobt D. Forte ,. . 100. 00
1. Paul Black -27 . 12
8. E. T. Howard iqi _ qO
8. E. W. BuUinger ,. . 7 . oq
8. H. W. Bloomingston 128 . 00
Exhibits — Part, III. 1263
Mfarch 3. L. !"W.. Lawrence $1,526,45
15. Eobt W. Neal 50. 30
15 . 0. J. Smith 12. QQ
22. J. F. Wagner .■ 40 . 00
29. Paul Black 23 . 80
29. Paul Black. 44. 80
29. Paul Black 35 . 70
29. L. W. La-wrence 692 . 05
29. G. J. Smith 65 . 00
AprU 5. A. Connor 59 . 79
12. 0. D. Lakey 100.00
12. L. W. Lawrence 1,372 . 13
19. L. W. Lawrence 888.15
19. W.. 0. Wxight 30.00
19'. 0. J. Smith 110.00
26. M. Stewart 25.00
29. E. H. Spear 298.00
29. A. Connor 56.40
Hay. 3. H. W. Bloomington 75 . 00
3. L. W. Lawrence , 1,349 . 63
10. L. W. Lawrence 1,724.75
10. C. D. Lakey 62 . 50
.17. L. W. Lawrence 1,801.75
" 17. C.J. Smith 65.00
24. L. W. Lawrence 1,537 . 60*
31. L. W. Lawrence 740.40
31. C. J. Smith 84.00
31. A. Connor 48-. 11
June 7.' E. W. BuUinger 7 . 00
14. L. W. Lawrence 682.00
21. M. D. Landon. . 1^0.00
21. L. W. Lawrence.' 711 . 55
21. C. J. Smith. 50.00
21. C. J. Smith 150.00
21. C. J. Smith 87.00
28. L. W. Lawrence. . . '. 784.70
28. G.Brown 3.00
28. A. C. Fields 18.00
30. C. J. Smith. 87.00
30. A. Connor 58.73
July 6. H. Komeike 40.00
g, L, W, La-wr,enc9 , r 1,648.75
1264 Legislative Insurance Investigation.
July 5. "W. S. Walker ..,.."... $1,250.00
19. 0. D. Lakey 100.00
19. L. W. Lawrence 692 . 10
26. L. W. Lawrence 1,387.70
26. 0. J. Smith 72.00
26. 0. J. Smith 75.00
31. W. H. Wallace 14.00
31. A. Connor - 58.26
Aug. 2. H. W. Bloomingston 125 . 00
9. E. W. BuUinger 84.00,
9. L. W. Lawrence. 1,893 . 00
9. A. F. Poggenberg 37 . 40
9. 0. D. Lakey 62 . 50
16. L. W. Lawrence 788 . 00
23. H. 0. King 50.00
23. L. W. Lawrence 634 . 00
23. 0. J. Smith 54.00
Sept. 6. A. Connor 62 . 22
13. H. 0. Sommers .' 625 . 00
20. 0. J. Smith. 125 . 00
27. C. J. Smith '. 80.00
29. A. Connor 55.46
Oct. 11. C. D. Lakey 100 . 00
11. L. W. Lawrence 521*. 03
11. 0. J. Smith 225 . 00
11. C. J. Smith , - 65.00
18. C. J. Smith Y5.00
Oct. 25. L. W. Lawrence. 264.87 ■
31. A- Connor ^ 62.62
31. P. L. Walter 500.00
Nov. 1. M. King 200.00
6. 0. D. Lakey '. 62.50
6. L. W. Lawrence 70.50
6. 0. J. Smith 45.00
22. L. W. Lawrence 188. 7'5
29. L. W. Lawrence 101.60
29. A. Connor 68.85 ,
Dec. 6. E. W. Neal 2.00
6. 0. D. Lakey _ 9.00
6. H. W. Bloomingston 3_00
6. 0. J. Smith 52.00
13. D. A. Curtis 44 28
13. L. W. Lawrence 58.25
Exhibits — Part III. 1265
Exhibit. No. 1009.
NEW YOKK LIFE INSURANCE COMPANY.
Statement of payments made E. Eiggs for special work in con-
nection with newaspaper advertising, etc., from 1900 to 1905, both
inclusive.
December 12, 1900 $500
December 12, 1901 500
December 26, 1902 500
September 8, 1903 350
December 26, 1903 .,.,..., .'250
January 29, 1904 435
December 15, 1904 500
E. A. ANDERSON,
Comptroller.
December 20, 1905.
Exhibit No. 1010.
THE PRUDENTIAL COMPANY OF AMERICA.
Incorporated as a stock of the State of New Jersey.
OFFICERS:
John F. Dryden, President; Leslie D. Ward, Vice-President;
Edgar B. Ward, second Vice-President; Forrest F. Dryden,
third ^ce-President; Edward Gray, Secretary.
SPECIMEN AMOUNT FOR POLICIES^ WITH AN AC-
CUMULATED SURPLUS PERIOD OF 20 YEARS.
No. 40,201. Issued 8/15/85.
Age 40, Life AS 20 Amt $5,000.00
Share of Surplus of 1886 3Y , 90
Plus 3^ Int 84
Share Surplus 1S87 ....... . 30 . 35
Total 59.09
Int. 1888 1.Y7
86.70
Total . ...'. 97.56
1266 Legislative Inswance investigation.
Int
1889
$2.93
, ... 34.10
Total
Interest
1890
134.59
4.04
35.50
Total
Int
1891
174.13
5.22
36.95
Total
Int
1892
216.30
6.49
37.05
Total
Int
1893
259.84^
7.80
37.40
Total
Int
1894
305.04
9.15
37.45
Total
Int
1895
351.64
10.55
37.05
Total
Int
1896
399.24
11.98
■ 38.40
Total
Lit
1897
449.62
13.49
38.85
Total
:^ ^Int
1898
501.96
15.06
39.40
Total , .
....,,., 556.42
Exhibits — Part HI. 1267
Int $16..69
1899 .f 33.9,5
total . ..• 607.06.
Int 18.21
1900 35.50.
Total ...., 660.77
Int 9 . 82
1901 36.45
Total 717.04
Int 21.51
1902 37.40
Total .., 775.95
, Int 23.28 .-i
1903 38.35
Total 837.58 f
Int 25;13 4
1904 , 39.40 '
Total 902 .11x3167-285 .70
Int 27.06
1905 40.40
Total ■ 969 . 57
int 9 . 64
Total Surplus Paid $1,264. 91
No. 40,221. Issued 8/20/85.
Age 40 20L AS 20 Amount $10,000
Share of Sutplus 1886 5 .40
Plus 3 per cent Int .' .16
Share Surplus, 1887 6.03
Total 11.59
Int .35
1888 , 7.48
Total 19.42
1268 Legislative Insurance Inisestigation.
Int. . , $0.58
1889 . .' Y,.06
Total 27.06
Int ..81
1890 Y.45
Total . ...^ 35.32
Int 1.06
1891 Y.86
Total. • 44.24
' Int 1 . 33
1892 7.92
Total '63.49
Int 1.60
1893 7.96
Total 63 . 05
Int 1 . 89
1894 8 . 01
Total 72.95
Int ■ 2.19
1895 7.79 '
Total 82.93
Int 2.49
1896 8.14
■ Total 93.56
Int 2 . 81
1897 8.29
Total 104.66
Int ' 3 . 14
1898 8.46
Total 116.26
ExUhits — Part III. 1269
lilt $3.49
1899 6.60
Total 126.35
Int 3.77
1900 6.96
Total 127.10
Lit 4.11
1901 7.13
Total '. 148.38
Int 4.45
1902 7.31
Total 160.10
Int.. 4.80
1903 7.45
Total : 172.35
Int ' 6.17
1904 7.62
Total 185.14x3167-
Int 5.55
1905 7.76
^Total 198.45
58.63
Lit 2.00
Total Surplus $259.08
Jfo. 39,478. Issued 6/1/85.
Age 41. 20 E." AS 20 Amount $5,000
Share of Surplus of 1886 $37.15
Plus 3 per cent. Int 1 . 11
Share Surplus 1887 40.00
Total 78.26
Int 2.35
1888 47.35
Total 127.90
1270 Legislaiwe tnsurance investigation.
Int $3.84
1889 46,25
Total 1Y8 .05
Int 5 . 34
1900 49.10
Total 232.49
Int , . . , 6 . 97
1891 62.05
Total 291.51
Int. 8.75
1892 62.60
Total 352 . 86
Int. 10.69 .
1893 53.00 /.
Total 416.45
Int. . ..;. 12.49
1894 53.35
Total . . , 482.29
'^Int 14.47
1895 51.90
Total ." 548 . 66
Int 16.46
1896 59.3a
Total . 619.42
Int 18.58
§897 65 . 10
Total 693.10
Int 20.79
1898 . 55.20
Total 769.09
ExUhits — Part 111. l^ll
i
Int. $23 . 07
1899 40.70
TdM . .., 32.86
Int. 24.98
1900 41.80
Total 899.64
Int 26.99
1901 42.55
Total 969.18
Int 29.08
1902 43.20
Total 1,041.46
Int. 31.24
1908 43.65
Total 1,116.35 '
Int. . 33 .49
1904 . ,44.05
Total 1,193 . 89 x 3,167
Int 35 . 82
1905 44.15'
Total 1,273.86
378.00
Int 10.40
Total Surplus Pd " $1,662 . 26
Note. — Total accumulation on all "Accumulated Surplits " poli-
cies of the issue of 18^85 in force 12/31/04 was $89,220.08.
Amouilt of fallen accumulations, $29,255.88.
Eatio, 31.67 per cent.
All entitled to withdraw on 1905 took, therefore, 31.67 per
cent, of their individual accumulation as it stood on 12/31/04.
1272 Legislative Insurance Investigation.
Exhibit No. 1011.
THE NOETHWESTEEJSr MUTUAL LIFE INSUEANCE
OOMPAKT.
H. L. Palmer, President.
Geo. 0. Markham, Vice-Prest.
J. W. Skinner, 2d Vice-Prest.
P. K. Sanborn, 3d Vice-Prest.
C. H. Watson, Secretary.
C. A. Loveland, Actuary.
J. "W. Fisher, M.D., Medical Director.
Chas. E. Dyer, Counsel,
Stenographer's letter.
Actuary's Department.
C. A. Loveland, Actuary.
J. 0. Crawford, Associate Actuary.
E. C. Hemsing, Assistant Actuary.
Milwaukee, December 22,. 1905,
Specimens of individual accounts kept by the Northwestern
Life with the holders of deferred dividend policies for three plans,
to-wit: Ordinary Life, 20 Payment Life and 20 year Endow-
ment, all at age 40 at date of issue.
Memorandum: The cards submitted are exact copies of the
original card records kept by the hoine office. Each card is
ruled so as to provide a separate square for each policy year in
which surplus is credited according to the length of the. deferred
dividend period, and numbered to correspond with the policy
year. The square in the 'upper left-hand comer contains nota-
tion describing the nature of the surplus appearing on the cor-
responding line of the square for the given policy year.
"Improved " is the total of the surplus credited for the given
year carried forward to the next square with interest added.
" Dividend " is the amount of regular surplus credited annually
to each deferred dividend member, and corresponds in amount
with the annual dividend the Oomptay would have paid on the
policy had it been issued on ihe annual dividend plan.
" Lapse Share " is the deferred dividend member's share of
the total surplus forfeited year by year, by members who retire
Exhibits — Part III. 1273
from the class by reason of default in the required premium pay-
ment.
"Loss Share " is the individual member's share of the surplus
forfeited on account of deaths occurring within the deferred divi-
dend group before completion of the deferred dividend period.
The deferred dividend group embraces all deferred dividend poli-
cies having the same deferred pariod (ten, fifteen or twenty years).
In the card record the total of the final years of the period
shows the deferred or semi-tontine dividend payable to the in-
sured in cash.
Exhibit No. 1012.
COPY.
138,341 Date ~ Gteneral Agent Wis.
11-10-1885 O. wTK. IU.
Tontine Dividends, 1905.
Cash, 372.57.
Addition, 565. —
Annuity
Premium, 31-. 57.
Eeduction, 36.63.
Period Age Kind Amount Ann. Frem. Beserve
20 40 L 1
Improved 908 1,969 3,190
Dividend ... 853 879 907 1,853
Xapse Share 61 100 119
Loss Share 8 18 29 49
Total 861 1,866 3,005 5,191
5,477 6,928 8,455 10,202 12,080
949 983 1,018 1,039 1,067
120 83 149 168 181
• 62 58 94 96 11
6,598 8,052 9,716 11,504 13,429
14,100 16,228 18,592 20,966 23,633
1,072 1,085 1,095 1,102 1,133
140 188 66 169 34
143 ' 206 215 . 271 271
15,465 ..... 17,707 19,968 22,608 26,071
26,074 28,284 30,722 33,328 35,933
1,024 1,053 936 ' 960 984
5 28 9
357 462 690 698 340
27,460 29,827 32,357 34,886 37,267
1274 Legislative Insurance Investigation.
Exhibit No. 1013.
METKOPOUTAK.
MOKTUAEY TABLE.
Age 2, number living, 1,000,000; number dying,. 49,373; number
of deaths per 1,000 living at beginning, of year,, 49.378.,
Age 3, number living, 950,627; number dying, 30,435; nupvber
of deaths per 1,000 li-ving at beginning of year, 32.015,
Age, 4, number living, 920,192; number dying, 19,815; number
of deaths per 1,000 living at beginning of year, 21.533.
Age 5, number of living, 900,377; number dying, 14,478; number
of deaths per 1,000 livinj^ at beginning' of year, 16.079.
Age 6, number living, 885,899; number dying, 10,292; number
of deaths per 1,000 living at beginning of ye-ar, 11.61S.
Age 7, number living, 875,607; number dying, 8,445; number
of deaths per 1,000 living at beginning of year, 9-645.
Age 8, number living, 867,162; number dying, 6,892; number
of deaths per 1,000 living at beginning of year, 7.948.
Age 9, number living, 860,270; number dying, 5,636; number
of deaths per 1,000 living at beginning- of year, 6.551.
Age 10, number living, 854,634; number dying, 4,675; number
of deaths per 1,000 living, at beginning of year, 5»470. ,
Age 11, number living, 849,959; number dj^ijig, .4,010; number
of deaths per IjOOO living at beginning of, year, 4,718;
Age 12, number living, 845,949; number dying, 3,641; numbel
of deaths per 1,000 living at beginning of, year; 4i304i
Age 13, number living, 842,308; number dying, 3,5.67; number
of deaths per 1,000 living at beginning of year^ 4,235.
Age 14, number living, 838,741; number dying, 3,78-9;: number
of deaths per 1,000 living at beginning of year, 4>,517.
Age 15, number living, 834,952; number dying, 4,239; number
of deaths per 1,000 living at beginning of ^ear,. 5.077.
Age 16, number living, 830,713; number dying, 4,906; number
of deaths per 1,000 living at beginning of, yea]:,. 5.90*
Age 17, number living, 825,^08; number dying, 5,779; number
of deaths per 1,000 living, at beginning of. year,, 6.998.
Age 18, number living, 820,029; number dyi.ng, 6,g97; number
of deaths per 1,000 living at beginning; of. year,. 8il67i
Age 19, number living, 813,332; number dying, 7,613;; number
of deaths per 1,000 living at beginning of year,. 9'.360.
Age 20, number living, 805,719; number dying, 8,4^8;: number
of deaths per 1,000 living at beginning of jear,. 10.522i
Exhibits — Part III. 1275
Age 21, number living, 797,241;. number dying, 9,216; number
of deaths per 1,000 living at beginning of year, 11.560.
Age 22, number living, 788,025; number dying, 9,745; number
of deaths per 1,000 living at beginning of year, 12.366.
Age 23, number living, 778,280; number dying, 10,138; number
of deaths per 1,000 living- at beginning of year, 13.026.
Age 24, number living, 768,142; number dying, 10,466; number
of deaths per 1,000 living at beginning of year, 13.625.
Age 25, number living,. 757,676; number- dying, 10,710; numilpei
of deaths per 1,000 living at beginning of year, 14.135.
Age 26, number living, 746,966; number dying, 10,894; number
of deaths per. 1,000 living at beginning of year, 14.584.
Age 27, number living, 7316,072; number dying, 10,990; number
of deaths per 1,000 living: at beginning of year, 14.931.
Age 28, number living, 725,082; number dying, 11.039; number
of deaths per 1,000' living; at beginning of- year, 15.224.
Age 29, number living, 714,043; number dying, 11,056; number
of deaths per 1,000 living at beginning of year, 15.484.
Age 30, number living,. ^02,987;. number dying, 11,0,58; number
of deaths per 1,000 living at beginning of year, 15,730.
Age 31, number living, 691,929; number dying, 11,059; nuniber
of deaths per 1,000 living: at beginning of year,. 15.983.
Age 32, number living, 680,870; number dying, 11,060; number
of deaths per 1,000 living at beginning of year, 16.244.
Age 33, number living, 669',810; number dying, 11,065; number
of deaths per 1,000 living at beginning of year, 16.520.
Age 34, number living, 658,745; number dying, 11,083; number
of deaths per 1,000 living at beginning of year, 16.824.
A^e 36, number living,. 647,662; number dying, 11,109; number
of deaths per 1,000 living, at beginning of year, 17.152.
Age 36, number living, 636,553; number dying, 11,145; number
of deaths per 1,000 living at beginning of year, 17.508.
Age 37, number living, 625,408;. number dying, 11,19~4; number
of deaths per 1,000 living at beginning of year, 17.899.
Age 38, number living, 614,214; number dying, 11,250; number
of deaths per 1,000 living at beginning of year, 18.316.
Age 39, number living, 602,964; number dying, 11,329; number
of deaths per 1,000 living at beginning of year, 18,789.
Age 40, number living, 591,635;- number dying,. 14,411; number
of deaths per 1,000 living at beginning of year, 19,287.
Age 41, number living, 580,224;. number dying, 11,5(58; number
of deaths per 1,000 living at beginning o£ year,, 19.834.
12Y6 Legislative Insurance Investigation,
Age 42,'iiumber living, 568,Y16; number dying, 11,620- number
pf deaths per 1,000 living at beginning of year, 20.432.
Age 43, number living, 55Y,09'6; number dying, 11,744; number
of deaths per 1,000 living at beginning of year, 21.081.
Age 44, number living, 545,352; number dying, 11,882;- number
of deaths per 1,000 living at beginning of year, 21,Y88.
Age 45, number living, 533,470; number dying, 12,034; number
of deaths per 1,000 living at beginning of year, 22.568.
Age 46, number living, 521^43,6; number dying, 12,201; number
of deaths per 1,000 living at beginning of year, 23.399.
Age 47, number living, 509,235; number dying, 12,380; number
of deaths per 1,000 living at beginning of year, 24.311.
Age 48, number living, 496,855; number dying, 12,574/; number
of deaths per 1,000 living at beginning of year, 25.307.
Age 49, number living, 484,281 number dying, 12,781; number
of deaths per 1,000 living at beginning of year, 26.392.
Age 50, number living, 471,500; number dying, 13,009'; number
pf deaths per 1,000 living at beginning pf yeqj, 27.591.
Age 51, number living, 458,491; number dying, 13,218; number
of deaths per 1,000 living at beginning of^year, 28.829.
Age 52, number living, 445,273; number dying, 13,470; number
of deaths per 1,000 living at beginning of year, 30.251.
A.ge 53, number living, 431,803; number dying, 13,718; number
of deaths per 1,000 living at beginning of year, 31.769.
Age 54, number living, 418,085;. number dying, 13,974; number
of deaths per 1,000 living at beginning of year, 33.424.
Age 55, number living, 404,111; number dying, 14,233; number
of deaths per 1,000 living at beginning of year, 35.221.
Age 56, number living, 389,878; number dying, 14,4%; number
of deaths per 1,000 living at beginning of year, 37.181.
Age 57, number living, 375,382; number dying, 14,755; number
of d(*iths per 1,000 living at beginning of year, 39.307.
Age 58, number living, 360,627; numbey dying, 15,010; number
of deaths per 1,000 living at beginning of year, 41.622.
Age 59, number living, 345,6l7piumber dying, 15,254; number
of deaths per 1,000 living at beginning of year, 44.136. ■
Age 60, number living, 330,363; number dying, 15,485; number
of deaths per 1,000 living at beginning of year, 46.873.
Age 61, number living, 314,878; number dying, 15,695; number
of deaths per 1,000 living at beginning of year, 49.845.
Age 62, number living, 299',183; number dying, 15,877; number
of deaths per 1,000 living at beginning of year, 53.068.
Exhibits — Part III. 1277
Age 63, number living, 283,306; number dying, 16,028; number
of deaths per l,000,living at beginning of jear, 56.575.
Age 64,- number living, 267,278; mimber dying, 16,138; number
of deaths per 1,000 living at beginning of year, 60.379.
Age 65, number living, 251,140; number dying, 16,201; number
deaths per 1,000 living at beginning of year, 64.510.
Age 66, number living, 234,939 ; number dying, 16,208 ; number
deaths per 1,000 living at beginning of year, 68.988.
Age 67, mimber living, 218,731; number dying, 16,152; number
deaths per 1,000 living at beginning of year, 73.844.
Age 68, number living, 202,579 ; number dying, 16,026 ; number
deaths per 1,000 living at beginning of year, 79.110.
Age 69, number living, 186,553; number dying, 15,822; number
deaths per 1,000 living at beginning of year, 84.812.
Age 70, number living, 170,731 ; number dying, 15,535 ; number
of deaths per 1,000 living at beginning of year, 90.991.
Age 71^ number living, 155,196; number dying, 15,159; number
deaths per 1,000 living at beginning of year, 97.676.
Age 72, number living, 140,037 ; number dying, 14,690 ; number
deaths per 1,000 living a beginning of year, 104.901.
Age 73, number living, 125,347; number dying, 14,128; number
deaths per 1,000 living, at beginning of year, 112.711.
Age 74, number living, 111,219 ; number dying, 13,474 ; number
deaths per 1,000 living at beginning of year, 121.148.
Age , 75, number living, 97,745 ; jiuinber dying, 12,732 ; number
- deaths per 1,000 living -at beginning of year, 130.257.
Age 76, number living, '85,013 ; number dying, 11,907; number
deaths per 1,000 living at beginning of year, 140.061.
Age 77, number living, 73,106; number dying, 11,012; number
deaths per 1,000 living at beginning of year, 150.631.
Age 78, number living, 62,094; number dying, 10,060; number
deaths per 1,000 living at beginning of year, 162.012.
Age 79, number living, 52,034 ; number dying, 9,065 ; number
deaths per 1,000 living at beginning of year, 174.213.
Age 80, number living, 42,969; number dying, 8,050; number
deaths per 1,000 living at beginning of year, 187.344.
Age 81, number living, 34,919; number dying, 7,032; number
deaths per 1,000 living at beginning of year, 201.380.
Age 82, number living, 27,887; number dying, 6,035; number
deaths per 1,000 living at beginning of year, 216.40.9.
Age 83, number living, 21,852; number dying, 5,081; number
deaths per 1,000 living at beginning of year, 232.519.
1278 Legislative Insurance Investigation.
Age 84, numlier ],iving, 16,771 ; mimber dying, 4,186 ; number
deaths per 1,000 living at beginning of year, 249.597.
Age 85, number living, 12,585 ; number dying, 3,360 ; number
deaths per 1,000 living at beginning of year, 262.190.
Age 86, number living, 9,235; number dying, 2,668; number
deaths per 1,000 living at beginning of year, 288.901.
Age 87, number living, 6.567; number dying, 2,021; number
deaths per 1,000 living at beginning of year, 307.751.
Age/ 88, number living, 4,546 ; number dying, 1,498 ; number
deaths per 1,000 living at beginning of year, 329.520.
Age 89, number living, 3,048 ; number dying, 1,074; number
deaths per 1,000 living at beginning of year, 352.362.
Age 90, number living, 1,974; number dying, 743 ; number deaths
per 1,000 living at beginning of year, 376.393.
Age 91, number living, 1,231 ; number dying, 494; number deaths
per 1,000 living at beginniftg of year, 401.299.
Age 92, number living, 737 ; number dying, 316 ; number deaths
per 1,000 living at beginning of year, 428.765.
Age 93, number living, 421 ; number dying, 191 ; number deaths
per 1,000 living at beginning of year, 453.682.
Age 94, number living, 230 ; nurdber dying. 111 ; number deaths
per 1,000 living at beginning of year, 482.609.
Age 95, number living, 119; number dying, 61; number deaths
per 1,000 living at beginning of year, 513.605.
Age 96, number living, 58 ; number dying, 32 ; number deaths per
1,000 living at begijming of year, 551^724.
Age, 97, number living, 26; number dying, 15; number deaths
per 1,000 living at beginning of year, 576.923.
Age, ^ 9 8, number living, 11; number dying, 7; number deaths per
1,000 living at beginning of year, 636.364.
Age 99, number living, 4; number dying, 3; number deaths per
1,000 living at beginning of year, 750,000.
Age 100, number livipg, 1; number dying, 1; number deaths per
1,000 living at beginning of year, 1,000.
Esihibits — Part III.
15279
Sxliibit No. 1014.
ITOTUAL LIFE INS. CO. OF ¥. T.
AGE 40 LIFE, $1,000. ANNUAL CASH DIVIDENDS.
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year of
Year~of
Year of
Year.t)f
Year of
Year of
Year of
issue, 1865
issue, 1866
isue, 1867
issue, 1868
issue, 1869
issue, 1870
issue, 1871
issue, 1872
issue, 1873
issue, 1874
issue, 1875
issue, 1876
ssue,' 1877
issue, 1878
issue, 1879
issue, 1880
issue, 1881
issue, 1882
issue, 1883
issue, 1884
issue, 1870
issue, 1871
issue, 1872
issue, 1873
issue, 1874
issue, 1875
issue, 1876
issue, 1877
issue, 1878
issue, 1879
issue, 1880
•issue, 1881
issue, 1882
issue, 1883
•issue, 1884
dividend of 1885
dividend of 1885
dividend of 188.5
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend of 1885
dividend .of 1885
dividend of 1885
dividend of 1885
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
dividend of 1890
prem.,
prem.,
prem.,
prem.,
prem.,
prem.,
prem.,
prem..
31.73
31.73
31.73
31.30
31.30
31.30
31.30
31.30
prem., 31.30
prem., 31.30
prem.,
prem.,
prem.,
prem
31.30
31.30
31.30
31.30
div., 15.77.
div., 15.19.
div., 14.63.
div., 13.67.
div., 13.15,
div., 12.65.
div., 12.17.
div., 11.71.
div., 11.28.
div., 10.86.
div., 10.46.
div., 10.10.
div., 9.75.
div., 9.43.
26.61
26.61
26.61
26.61
31.30
31.30
prem., 31.30; div., 9.1:i
div., 4.13. .
div., 3.86.
div., 3.60.
div., 3.36.,.
div., 3.13.
div.^ 9.64.
div., 9.31.
div., 9..01.
div., 8.71.
div., 8.42.
div., 8.13.
div., 7.86.
div., 7.61.
div., 7.35.
div., 7.11.
div., 8.19.
div., 1.96.
div., 1.75.
div., 1.56.
div., 1.37.
prem., 26.61
prem.,
prem.,
prem.,
prem. ,
prem.,
prem.,
prem., 31.30
prem., 31.30
prem.,
prem.,
prem.
31.30
31.30
31.30
prem,, 31.30
prem.
31.30
prem., 31.30
prem.,
prem,,
prem.,
prem.,
prem..
26.61
26.61
26,61
26.61
26.61
1280
Legislative Insurance Investigation.
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Vear
V'ear
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Y^ar
Year
Year
Year
Year
Year
Year
of issue, i885; dividend of 1890; preln., 32.20; div., 6.78.
of issue, 1886; dividend of 1890; prem., 32.20; div., 6.61.
of issue 1887; dividend of 1890; prem. 32.20; div. 6.44.
dividend of 1890; prem. 32.20; div, 6.29.
dividend of 1890; prem. 32.20; div. 6.14.
dividend of 1895; prem. 31.30; div. 7.84.
of issue 18,88
of issue 1889
of issue 1875
of issue 1876
of issue 1877
of issue 1878
of issue 1879
of issue 1880
of issue 1881
of issue 1882
of issue 1883
of issue 1884
of issue 1885
of issue 1886
of issue 1887
of issue 1888
of issue 1889
of issue 1890
of issue 1891
of issue 1892
of issue 1893
of issue 1894
of issue 1895
of issue 1886
ofris.sue 1887
of issue 1888
of issue 1889
of issue 1890
of issue 1891
of issue, 1892
of issue, 1893
of issue, 1894
of issue, 1895
of issue, 1896
of issue, 1897
of issue, 1898
of issue, 1899
of issue, 1900
of issue, 1901
dividend of 1895; prem. 31.30
dividend of 1895; prem. 31.30
dividend of 1895; prem. 3i:30
dividend of 1895; prem. 31.30
dividend of I8f95; prem. 26.61
dividend of 1895; prem. 26.61
dividend of 1895 ; prem. 26.61
dividend of 1895 ; prem. 26.61
div. 7.59.
div. 7.34.
div. ^7.08.
div. 6.83.
div. 1.90.
div. 1.65.
div. 1.41.
div. 1.16.
dividend of 1895; prem. 26.61; div. .92.
prem. 32.20; div. 6.32.
prem. 32.20; div. 6.13,
prem. 32.20; div. 5.95.
prem, 32.20; div. 5.76.
prem. 32.20; div. 5.58.
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1895
dividend of 1905
dividend of 1905
dividend of 1905
dividend of 1906
dividend of 1905
dividend of 1905
dividend of 1905
32.20; div.
prem. 32.20; div. 5.40.
prem. 32.20 ; div. 5.23.
prem. 32.20; div. 5.06.
prem. 32.20; div. 4.87.
prem. 32.20; div. 3.60.
prem. 32.20; div. 6.69.
prem, 32.2Q; div. 6.45.
prem. 32.20 ; div. 6.20.
prem. 32.20; div.- 5.96.
prem. 32.20 ; div. 5.71.
prem. 32.20 ; div. 5.46.
prem. 32.20 ; div. 5.22.
dividend of 1905; prem., 32.20; diy., 4.97.
dividend of 1905 ; prem., 32^20 ; div., 4.73.
dividend of 1905 ; prem., .32.20 ; div., 4.48.
dividend of 1905; prem., 32.20; 'div., 4.24.
dividend of 1905 ; prem., 32.20; div., 3.99,
dividend of 1905; prem., 32.20; div., 3.75.
dividend of 1905; prem., 32.76; div., 3.91.
dividend of 1906; preni., 32.76; div., 3.62.
dividend of 1905; prem., 32.76; div., 3.35.
dividend of 1905; prem., 32.76; div., 3.13.
Exhibits — Part III. . 1281
Tear of issue, 1902 ;"altidend of 1905; prem., 32.76; div.,, 2.94.
Year of issufe, 1903 f dividend of 1905; prem., 32.76; div., 2.79.
Tear of issue, 1904 ; dividend of 1905 ; prem., 32.76 ; div., 2.64.
AGE 40, IIFE 20 PKEMIUMS $1,000, AKNTTAL CASH DIV-
IDENDS.
THE MUTUAL LIEE INS. 00. OF N. T.
Year of issue, 1865; dividend of 1885; prem., ...
Year of ;iss,ue, 186^; dividend of 1885; prem.,
Year of ; issitip, 1867; .dividend of 1885; prem..
Year of issue, 1868; dividend of 1885; prem.,
div.,
div.,
div.,
div..
Year of issue, 1869; dividend of 18-85; prem., 38.83; div., 14.75.
Year of issue, 1870;, dividend of 1885; prem., 38.83; div., 14.22.
Year of i issue, 1871; dividend of 1885; prera., ..,..,..; div..
Year of issue, 3.872; dividend of 1885; prem., .......; div..
Year of issue, 1873; dividend of 1885; prem., 38.83; div., 12.69.
Year of issue, 1874; .dividend of 1885; prem., 38.83; div., 12.20.
Year of issue, 1876; dividend of 1885; prem., 38.83; div., 11.73.
Year of issue,, 1876; dividend of 1885; prem., 38.83; div.., 11.28.
Year of lissTie,' 1877; xiividend of 1885; prem., .; div..
Year of issue, 1878; dividend of 1885; prem., 38.83; div., 10.46.
Year of issue, 1879; dividend of 1885; prem., 38.83; div., 10,07.
■year ofissue^ 1880; dividend of 1885; prem., 34.07; div., 4.94.
Year of i§sue, 1881; dividend of 1885; prem., 34.07; div., 4.60.
Yiear of issue, 1882; dividend of 1885; prem., 34.07; div., 4.26.
Year of issue, 1883; dividend of 1885; prem., 34.07; div., 3.94.
Year of issue, 1884; dividend of 1885; prem., 34.07; div., 3.64.
Year of issue, 1870; dividend of 1890; prem., 38.83; div., 11.40.
Year of^ i^sue, 1871; dividend of 1890; prem., 38.83; div., 11.04.
' Y^r of! issue, 1872; dividend of 1890; prem., 38.83; div., 10.68.
Year of issue, 1873; dividend of 1890; prem., 38.83; div., 10.31.
Year of issue, 1874; dividend o:^1890; prem., 38.83; (Jiv., 9.96.
Jear of, issue, 1875; dividend of 1890; prem"., 38.83; div., 9.62.
Year of issue, 1876; dividend of 1890; prem., 38.83; div., 9.28.
41
1282
Legislative Insurance InvesHgation.
Year
Year
Yeax
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Y^ear
Year
Year
Year
Year
Year
Year
Year
of issue,
of isstie,
of issue,
t)f issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of i'Ssue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
187Y
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1885
1886
1887
1888
1889
1890
1891
1892
dividend of 1890; prem., 38.83; div., 8.94.
dividend pi 1890; prem,, 38.83; div., 8.62:.
dividend of 1890; prem., 38^83; div., 8.,30.
dividend of 1890; prem., 34.07; div., 3.25.
dividend of 1890; prem., 34.07; div>, 2.9(6.'
dividend of 1890; prem., 34.07; div.,2.68.
dividends of 1890; p^em., 54.07; div., 2.42.
dividend of 1890; prem., 34.07; div., 2.16.
■dividend pi 1890; prem., 39.80; div., 7.66.
dividend of 1890; prem., 39.80; div., 7.43.
dividend of 1890; prem., 39.80; div., 7.20.
dividend of 1890; prem., 39.80; div., 6.99.
dividend of 1890; prem., 39.80; div., 6.79.
dividend of 1895; prem., 38.83; div., 10.12.
dividend of 1895; prem!, 38.88; div., 9.72.
dividend of 1895; prem., 38.83; div., 9.33.
dividend of 1895; prem., 38.83; div., 8.95.
dividend of 1895; prem., 38.83; div., 8.58.'
dividend of 1895; prem., 34.07; div., 3.46.
dividend of 1895; prem., 34.07; div., 3.11.
dividend of 1895; prem., 34.07; div., 2.77.
dividend of 1895; prem., 34.07; div., 2.43,
dividend of 1895; prem., 34.07; div., 2.10.
dividend of 1896; prem., 39.80; div., 7.56.
dividend of 1895; prem., 39.80; div., 7.29.
dividend of 1895; prem., 39.80; div., 7.03.
dividend of 1895; prem., 39.80; div., 6.78.
dividend of 1895; prem., 39.80; div., 6.53.
dividend of 1895; prem., 39.80; div., 6.29.
dividend of 1895; prem., 39.80; div., 6.06.
dividend of 1895; prem., 39.80; div., 5.83.
dividend of 1895; prem., 39.80; div., 5.58.
dividend of 1895; prem., 39.80; div., 4.10.
dividend of 1905; prem., 39.80; div., 7.77.
dividend of 1905; prem., 39.80; div., 7.48.
dividend of 1905; prem., 39.80; div., 7.18.
dividend of 1905; prem., 39.80; div., 6.89.
dividend of 1905; prem., 39.80; div., 6.60.
dividend of 1905; prem., 39.80; div., 6.30,
dividend of 1905; prem., 39.80; div.. 6.01.
divide^ of 1905; prem., 39.80; div., 5.73.
Exhibits — Part HI.
1283
Tear
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue.
1893
1894
1895
1896
1897
1898
1899
1900
1901
1903
1903
1904
dividend of
dividend of
dividend of
dividend of
dividend of
dividend of
dividend of
dividend of
dividend of
dividend of
dividend of
dividend of
1905
1905
1905
1905
1905
1905
1905
1905
1905
1905
1905
1905
prem.,
prem.,
prem.,
prem.,
prem.,
prem.,
prem.,
prem.,
prem.,,
prem.,
prem.,
prem.,
39'.80
39.80
39.80
39.80
39'. 80
41.46
41.46
41.46
41.46
41.46
41.46
41.46
div., 5.44.
div., 5.15.
div., 4.8Y.
div., 4.58.
div., 4.30.
div., 4.76.
div., 4.38.
div., 4.04.
div., 3.74.
div., 3.49.
div., 3.27.
div., 3.08.
A&E 40, 20 YEAK EE'DOWMEISTT, $1,000.
DIVIDEND.
ANNUAL CASH
Year of issue, 1865
Year of issue, 1866
Year of issue, 1867
Year of issue, 1868
Year of issue, 1869
Year of issue, 1870
Year of issue, 1871
Year of issue, 1872
Year of issue, 1873
Year of issue, 1874
Year of issue, 1875
Year of issue, 1876
Year of issue, 1877
Year of issue, 1878
Year of issue, 1879
Year of issue, 1880
Year of issue, 1881
Year of issue, 1882
Year of issue, 1883
Year of issue, 1884
Year of issue, 1870
Year of issue, 1871
Year of issue 1872;
Year of issue, 1873
Year of issue, 1874
Year of issue, 1875
dividend of 1885; prem.,
dividend of 1885; prem., ....'.
dividend of 1885; prem.,
dividend of 1885; prem., 51.78
dividend of 1885; prem., 51.78
dividend of 1885; prem., 51.78
dividend of -1885; prem.. 51.78
dividend of 1885; prem., 51.78
div.,
div.,
div.,
div.,
div.,
div.,
div.,
div.,
div..
18.07.
17.51.
16.93.
16.32.
15.71.
15.10.
dividend of 1885; prem., 51.78
dividend of 1885; prem., 51.78; div., 14.50.
dividend of 1885; prem., 51.78; div., 13.90.
dividend of 1885; prem., 51.78; div., 13.32.
dividend of 1885; prem., 51.78; div., 12.76.
dividend of 1885; prem., 51.78; div., 12.22.
dividend of 1885; prem., 51.78; div.,11.70.
dividend of 1885; prem., 46,91; div., 6.33.
di\^idend of 1885; prem., 46.91; div., 5.85.
dividend of 1885; prem., 46.91; div., 5.39.
dividend of 1885; prem., 46. 9i; div., 4.94.
dividend of 1885; prem., 46.91; div., 4.52.
dividend of 1890; prem., 51.78; div., 14.42.
dividend of 1890; prem., 51.78; div., 13.99.
dividend of 1890; prem., 51.78; div., 13.54.
dividend of 1890; prem., 51.78; div., 13.07.
dividend of 1890; prem,, 51.78; div., 12.61.
dividend of 1890; prem., 51.78; div., 12.15.
3284:
Legislative Insurance Investigation.
Tear
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of issue,
of issue,
of -issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
of issue,
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1885
1886
1887
1888
1889
1890
1891
1892;
dividend of 1890; prem., 51.78; div., 11.69.
dividend of 1890; prem., 51.78; div., 11.24.
dividend of 1890; prem., 51.78.; div., 10.79.
dividend of 1890; prem., 51.78; div., 10.36.
dividend of 1890; prem., 46.91; div., 5.06.
dividend of 1890; prem., 46.91; div., 4.65.
dividend of 1890; prem., 46.91; div., 4.26.
dividend of 1890; prem., 46.91; div., 3.88.
dividend of 18-80; prem., 46.91; div., 3.52.
dividend of 1890; prem., 53,00; div., 9.26.
dividend of 1890; prem., 53.00; div., 8.92.
dividend of 1890; prem., 53.00; div., 8.60.
dividend of 1890; prem., 53.00; div., 8.30.
dividend of 1890; prem., 53.00; div., 8.00,
dividend of 1895; prem., 51.78; div., 13.99,
dividend of 1895; prem., 51.78; div., 13.34,
dividend of 1895; prem., 51.78; div., 12.72,
dividend of 1895; prem., 51.78; div., 12.12.
dividend of 1895; prem., 51.78; div., 11.54,
dividend of 1895; prem., 46.91; div., 6.12.
dividend of 1895; prem., 46.91; div., 5.58.
dividend of 1895; prem., 46.91; div., 5.06.
dividend of 1895; prem., 46.91; div., 4.56,
dividend of 1895; prem., 46.91; div., 4.07,
dividend of 1895; prem., 53.00; div., 9.75,
dividend of 1895; prem., 53.00; div., 9.35,
dividend of 1895; 'prem,, 53.00; div., 8.97.
dividend of 1895; prem., 53.00; div., 8.59.
dividend of 1895; prem., 53.00 div.,8.23.
dividend of 1895; prem., 53.00
dividend of 1895; prem.,53.00
dividend of 1895; prem., 53.00
dividend of 1895; prem., 53.00
dividend of 1895; prsm., 53.00
dividend of 1905; prem., 53.00
dividend of 1905; prem., 53.00
dividend of 1905;. prem., 53.00
dividend of 1905; prem., 53.00
dividend of 1905; prem., 53.00
dividend of 1905; prem., 53.00
dividend of 1905; prem,, 53.00
dividend of 1905; prem., 53,00
div,, 7,88,
diy., 7.54
div., 7.21,
div., 6.85,
div., 5.02,
div., 9.71.
div., 9.32,
div., 8.94.
div., 8.56.
div,, 8,19.
div,, 7.82.
div., 7:45.
div., 7.08.
Exhibits -^ Part III.
1285
Year of issue,
1893;
dividend of 1905;
prem..
53.00;
div.,
6.Y2.
Year of issue,
1894
dividend of 1905;
prem..
53.00
div.
, 6.33
Year of issue,
1895
dividend of 1905;
prem..
53.00;
div.,
6.00.
Year of issue,
1896,
dividend of 1905;
prem.,
53.00;
div.,
5.64.
Year of issue.
189Y
dividend of 1905;
prem.,
53.00;
div.,
5.29.
Year of issue.
1898
dividend of 1905;
prem.,
53.98;
div..
5.98.
Year of issue,
1899
dividend of 1905;
prem.,
53.98;
div..
5.48.
Year of issue,
1900
dividend of 1905;
prem..
53.98;
div.,
5.02.
Year of issue.
1901
dividend of 1905;
prem.,
53.98;
div..
4.62.
Year of issue.
1902
dividend of 1905;
prem..
53.98;
div..
4.28.
Year of issue.
1903
dividend of 1905;
prem..
53.98;
div..
3.98.
Year of issue,
1904
; dividend of 1905;
prem.,
53.98;
div.,
3.70.
Exhibit No. 1015.
NEW YOUK LIFE INSUKAN€E COMPANY.
ANNIJAL DIVIDEjSFD KATES PER $1,000 OF INSURANCE
AS PAID IN 1905.
, Whole Life.
Age at issue, 40; policy having been in force 1 year, 2.31;
2 years, 2.70; 3 years; 3.08; 4 years, 3.47; 5 years, 3.85; 6
years, 4.24; 7 years, 5.07; 8 years, 5.35; 9 years, 5.64; 10 years,
5.92; 11 years, 6.20; 12 years, 6.48; ,13 years, 6.76; 14 years,
6.86 ; 15 years, 7.14 ; 16 years, 7.43 ; 17 years, 7.71 ; 18 years,
7.99 ; 19 years, 8.28 ; 20 years, 8.56.
20- Year Payment Life.
Age at issue, 40; policy having been in force 1 year, 2.31;
2 years, 2.70; 3 years; 3.08; 4 years, 3.47; 5 years, 3.85; 6
years, 4.24; 7 years, 5.07; 8 yeara, 5.35; 9 years, 5.64; 10 years,
5.92; 11 years, 6.20; 12 years, 6.48; 13 years, 6.76; 14 years,
6.86; 15 years, 7.14; 16 years, 7.43; 17 years, 7.71; 18 years,
7.99 ; 19 years, 8.28 ; 20 years, 8.56.
20-Year Endowment.
Age at issue, 40; policy having been in force 1 year, 3.80; 2
years, 4.44; 3 years, 5.07; 4 years, 5.70;' 5 years, 6.34; 6 years,
6.97; 7 years, 8.35; 8 years, 8.81; 9 years, 9.28; 10 years, 9.74;
11 years, 10.20 ; 12 years, 10.G7 ; 13 years, 11.13 ; 14 years, 11.33 ;
15 years, 11.78; 16 years, 12.25; 17 years, 12.72; 18 yesw,
13.19 ; 19 years, 13.66 ; 20 years, 14.13,
1286 Legislative Insurance Investigation.
ANNUAL DIVIDEND KATES PEE $1,0G0 OF INSUR-
ANCE, AS PAID IN 1885.
Age at issue, 40; policy -having been in force 1 year, 3.18;
2 years, 3.47; 3 years, 3.77; 4 years, 3.89; 5 years, 4.22; 6
years, 4.67 ;'7 years, 4.87; 8 years, 5.30; 9 years, 5.60;', 10 years,
5.88; 11 years, 6.28; 12 years, '6.58; 13 years, 6.77; 14 years,
7.08; 15 years, 7.34; 16 years, 7.59; 17 years, 7.84; 18 years,
8.09; 19 years, 8.3^; 20 years, 8.62,
20-Year Payment Life.
Age at issue, 40; policy having been in force 1 ;^ear, 3.26; 2
years, 3.56; 3 years, 3.85; 4 years, 3.95; 5 years, 4.27;' 6 years,
4.56; 7 years, 4.87; 8 years, 5.20; 9 years,, 5.53; 10 years, 5.87
11 years, 6.19; 12 years, 6.53; 13 years, 7.62; 14 years, 8.08
15 years, 8.46; 16 years, 8.89; 17 years, 9.34; 18 years, 9.80
19 years, 10.26 ; 20 years, 10.77,
20- Year Endowment.
Age at issue, 40; policy having been in force 1 year, 4.12; 2
years, 4.72; 3 years, 5.33; 4 years, 5.44; 5 years, 6.06; 6 years,
6.72; 7 years, 7.35; 8 years, 8.02; 9 years, 8-.70; 10 years, 9.39;
11 years, 10.09; 12 years, 10,70; 13 years, 11.32; 14 years,
11.94; 15 years, 12.59; 16 years, ia;28; 17 years, 13.97; 18
years, 14.72 ; 19 years, 15.46 ; 20 years, 16.27,
ANNUAL DIVIDEND EATES PEE $1,000 OF INSUEANOE
AS PAID IN 1890,
Whole Life.
Age at issue, 40 ; policy having been in force 1 year, 2.70
2 years, 3.06; 3 years, 3.42; 4 years, 3.78^ 6 years, 4.15; 6 years
4.32; 7 years, 4.53; 8 years, 4.74; 9 years, 4.95; 10 years, 5.15
11 years, 5.38; 12 years, 5.61; 13 years, 5.85; 14 years, 6.08
15 years, 6.32; 16 years, 6.55; 17 years, 6.82; 18 years, 7.05
19 years, 7.29; 20 years, 7.56.
20- Year Payment Life. >
Age at issue, 40; policy having been In force 1 year, 2.66; 2
years, 3.02; 3 years, 3.38; 4 years, 3.74; 5 years, 4.11; 6 yeuirs,
4.34; 7 years, 4.61; 8 years, 4.89; 9 years, 5.16;10 years, 5.46
11 years, 5.75; 12 years, 6.04; 13 years, 6.36; 14 years, 6.69
15 years, 6.99; 16 years, 7.31; 17 years, 7.66; 18 years, 7.97
ig^-ears, 8.29; 20 years', 8.65,
Exhibits — Part III. 1287
20- Year Endowment.
Xge at issue, 40; policy having heen in force 1 year, 3.28; 2
years, 3.89 ;-3 years, 4.50; 4 years, 5.11; 5 years, 5.Y4; 6 years,
6.10; 7 years, 6.47; 8 years, 6.87; 9 years, 7.24; 10 years, 7.66
11 years, 8.06; 12' years, 8.49; 13 years, 8.93; 14 years, 9.37
15 yeara, 9.81; 16 years, 10.27; 17 years, 10.73; 18 years, 11.17
19 years, 11.66; 20 years, 12.13.
AXCniAL DIVIDEND RATES PER $1,000 OF INSUR-
ANCE AS PAID IN 1885.
"WTiole Life.
Age at issue, 40; policy having been in force 1 year, 3.84; 2
years, 4.26; 3 years, 4.55; 4 years, 4>85; 5 years, 5.16; 6 years,
5.47; 7 years, 5.80; 8 years, 6.07; 9 years, 6.32; 10 years, 6.57;
11 years, 6.83; 12 yeare, 7.09; 13 years, 7.44; 14 years, 7.87; 15
yeara, 8.16; 16 years, 8.4,8;. 17 years, 9.51; 18 yeafs, 9.89; 19
years, 10.27; 20 years, 10.65.
20- Year Payment Life. ^
Age at issue, 40; policy having been in force 1 year, 3.70; 2
years, 4.50; 3 yelajs, 4.90; 4 years, 5.34; 5 years, 5.78; 6 years,
&.25; 7 years, 6.70; 8 years, 7.13; 9 years, 7.56; 10 years, 8.00
11 yeara, 8.45; 12 years, 8.90; 1^ years, 9.48; 14 years,
15 years, 10.53.; 16 years, ; 17 years, ; 18 years,
19 years, . . . . ; 20 yeajrs, ,^ " ^^^
20- Year Endowment.
Age at issue, 40; policy having been in force 1 year, 4.91; 2
years, 5.71; 3 yeare, 6.33; 4 years, 6.95; 5 years, 7.62; 6 years,
8.30; 7 years, 9.01; 8 years, 9.70; 9 years, 10.41; 10 years, 11.14
11 years, 11.90; 12 years, 12.72; 13 years, 13.62; 14 years, 14.72
15 years, 15.73; 1& yesara, 16.79; 17 years, 18.00; 18 years,
19 years, . . . . ; 20 years, .....
1288 Legislative Insurance Investigation,
Exhibit No. 1016. ! >';
MEMOEAOTDUM DESCEIBING' THE ITEM® GF DIVI-
DENDS AND INTEKEST FEOM UNCLAIMED LEDGEE
ASSETS TEANSFEEEED TO THE HANOVEE BANK
OFFICE ACCOUNT, December 31stj 1904.
1904. _ ■' '' '"■ ' '-'i!,
Jan. 2 By accrued Int. on U. S. Steel 5's $379.87
Feb. 1 Dmdend's^N. Y. S. &'Tr. QQ..Stk.... 60AQ,0
Feb. 1 Dividend^^ N. Y. S. & Tr. Cp^stk. . , . i,ko'.6b
Feb. 29 Dividend 2^ on 2,100 shs. Erie 1st pf d. . .^ . 4r,2p0,,a0
Apl. 1 Union Pacific pfd. dividend ' ' h,006\ 00
Apl. 18 S'n E'way pfd. div '.'■.:'" '2^500. 00
May 31 United Coll., April int ,..,.'• 13,127'. 38
Oct. 1 Div. 5^ N. Y. S. & Tr. Co. stk ' - 1,156 .00
Oct. 3 Metropolitan Nat. Bank, final div. 2^. . ' 74. Ob
Oct. 18 So'n E'way pfd., stk. 2|j^ div: SfJsOO'. 00
Nov. 1 U. S. Steel coupons 1,075 '.00
Dec. 29 Commissions Hocking Val. ptcg. ctfs. .';'-0'
due Dec. 28 7,50,q\.00
Dec. 31 Div. N. Y. S. & Tr. Co 775,.QP
■ ■- ^r-r-?r
$40,121.25
Exhibit No. 1017.
^ December 30tii, 1905.
G. Q. Haven.
Dear Sir:
The list of underwritings handed you yesterday is entirely cor-
rect according to the schedule submitted to you by the Mutual
Life Insurance Company some time, I think, in September last.
But, on examining my books, I find that I did not include par-
ticipations in the Brooldyn Wharf & Warehouse Co., or in the
Washington Traction & Electric Co.
I find, that in 1895, I had an interest in the Brooklyn Wharf
& Warehouse Co., amounting to 90m bonds; and in 1899, ia the
Washington Traction & Electric Co. one interest of 45m bonds
and 45 shares of stock, -and another of $31,250 bonds and 125
shares of stocL
Exhibits — Part III. 1289
I was informed, and stated, that I thought the stock was sold
separately from the bonds, and this may be correct; but the only
payments I find on my books are checks drawn for bonds and
stock together.
Very truly,
(Signed) G. G. HAVEN".
Charles E. Hughes, Esq.
Ezliibit No. 1018.
HOME LIFE INSTJEANOE COMPANY,
256 Broadway, N'ew York.
George E. Ide, President. [H]
December 12th, 1905.
Hon. Charles E. Hughes.
City Hall, New York. ^: ^ r -
Dear Sir:
In reading over my testimony I find two slight inaccuracies
which I desire to correct.
I stated that the Company had no mortgage loans out of the ,
State. I find this was an error. The following should have been
reported : —
Mortgage Loan, T. M. & A. Z. Tyssowski, $115,000, onlSuild-
ing in Washington, D.- C, known as the Home Life Insurance
Company Building.
$3,800 to the Emory Episcopal Church, Jersey City, New
Jersey.
$3,200 to William F. Briggs, East Orange, N. J.
Further, in answer to your question regarding investments in
industrial securities, we hold $50,000 Temple Iron Co. Mortgage
& Collateral Trust Gold Bonds, which might possibly be classi-
fied under the heading of industrial securities.
Respectfully yours,
(Signed). GEOEGE E. IDE, President.
1290 Legislative Insurance Investigation.
Exhibit No. 1019.
HOME LIFE INSURANCE COMPANY,
256 Broadway, I^ew York.
George E. Ide, President. £M]
December 18, 1906-,
Mr. Charles E. Hughes,
• 96 Broadway, New York City.
Dear Sir:
At the close of my testimony before t^e liegislative Insurance
Investigation on the 11th instant, the matter of policy No. 102,-
365, issued by this company on the life of Willis L. Eichman, in
the anipunt of $2,000 was referred to,, and upon your request, I
■ desire to state the following basis of surrender value, which is to
become part of my testimony. This policy was issued May 29th,
1901, on the ten year term plan, at a quarterly premium of $7.62.
Having run four and one-half years, the surrender value of this
contract in accordance with a provision embodied in this policy
was the net value of* the paid up insurance required under the
Act of Ma;5r 21st,- 1879, Chapter 347, of the Laws of this State,
such net value according to American experience four and a half
per cent, interest being $1.95 at the end of four and one-half
years or two-thirds of the reserve- at the time of forfeiture. Such
amount was offered as the surrender value in our letter to the
insured, date of November 27, last.
' Yours truly, ,
(Signed) WILLIAM A. MARSHALL,
Vice-Pres. & Actuary.
Exhibit No. 1020.
LIFE INSUEANCE CLUE OF NEW YOEK. " ,
425 Fifth Avenue, Corner 38th Street, New York
November 1st, 1905,
Life Insurance Club of New York,
425 Fifth Avenue, New York. i -^
Gentlemen:
It is understood that the extension of our contract of June 23d,
1905, is on the basis of confidence in us upon our promise of good
Exhibits — Pari III. " I2dl
faith in the use of said contract, and on the understanding and
agreement that if, at any time during the term of the contract as
extended, the expenses incurred under said agreement shall be
less than the loadings thereunder and all past expenditures over
and above loadings shall have been met and all obligations which
Wightman and Malone may have found _it in good faith necessary
to make to carry on the business of the company, shall have been
satisfied, then the said contract shall be delivered up to the com-
pany and cancelled.
Very truly yours,
LIFE INSTIRANCE CLUB OF NEW YOKK, aux.,
Richard Wightman.
Wm. E. Maloiie.
Exhibit No. 1021.
VAN SCHAIOK & NORTON,
Cable Address, "Vanortan,"
100 Broadway.
Counsellors at Law. New York, December 19, 1905.
Charles E. Hughes, Esq.,
.96 Broadway, New York City.
Dear Sir:
You requested me to send you the personal checks of Mr.
Townsley and myself, showing the payment of the $25,000 loan
made by the Gansevoort Bank, and herewith enclosed I beg to
send you the following checks, all drawn to the order of th^
Gansevoort Bank and which were applied to the liquidation of
the loan.
Check of Townsley & Van Schaiok, Dated April 11,
19M, No. 14 $3,000.00
Check of Townsley & Van Schaick, Dated October
8, 1904, No. 38 ' 2,000.00
Check of Townsley & Van Schaick, Dated October
19, 1904, No. 89 1,500.00
Check of Townsley & Vfin Schaick, Dated October
20, 1904, No. 40 ;. 100. OQ
1202 Legislatfife Insurance Investigation.
Check of Towmsley & Van Schaick, Dated Novem-
ber 21, 1904, N"o. 42 .- $1,000.00
Check of .Townsley & Van Schaick, Dated Decem-
ber 31, 1904, No. 48 4,000.00
Check of Eugene Van Schaick, No. 4995 13,743 . 00
$25,343.00
The last check finally took up the loan and Includes some inter-
est to the amount of $343.00. I would be obliged if you mil
return these checks after making such use of them as you desire.
Yours very truly,
(Signed) EUGENE VAN SCHAIOE.
E. V. S./W.
^Enclosures.)
I
Exhibit No. 1022.
LETTER TO POLICYHOLDERS FROM THE PRESIDENT
OF THE EQUITABLE LIFE ASSURANCE SOCIETY OiEl
THE UNITED STATES.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
UNITED STATES.
Office of the President.
New York, December 14th, 1905. :
TO THE POLICYHOLDERS:
I had hoped to make some statement to you before this, but I
have believed it was best to wait until I could give you a final
conclusion in regard to the financial condition of the Society based
on full investigation. This explains the delay in communicating
Avith you. ' ,'
On June 9th last, under the condition that I should hav^ full
power as to men and methods, and with no pledges of any kind
to any one, I was elected by the Directors of the Society as Chair-
man of the Board, and at once assumed the active management
of the Society's affairs.
Soon after I was elected President of the Society and the office
of Chairman was abolished.
One of the first acts of my administration was the employment
of Messrs. Price, Waterhouse & Company, chartered accountants
Exhibits — Part III. 1293
of Great Britain and New York, and Messrs. Haskins & Sells,
certified public accountants of T^ew York, to investigate the
it if airs of the Society, under directions to render complete and
exhaustive reports on the following subjeota :
1. The Society's annual expenses, including legal esxpenses, ad-
vertising expenses, agency expenses, and cost of securing business.
2. The real estate investments of the Company, including in
the case of each parcel the value at which it is carried upon the
books of the Society; the income which it yields; and the fair
valuation of the property, whether above or below the value at
which it is carried upon the books of the Society. (If necessary,
real estate experts may be employed in ascertaining the value
and income of the real estate, subject, jof course, to mj, approval
as to men and terms.)
3. The other investments of the Society; their character; and
the circumstances under which they have been made.
4. The Society's surplus and the manner in which it is carried
upon the books of the Society.
5. The methods of keeping the Society's accounts, and the re-
spects in which its accounting may be improved.
6. The relations between the Society and the trust companies,
banks, safe deposit companies, and other institutions with which
the Society is affiliated by ownership of considerable amounts of
stock or otherwise. (In the case of every corporation in which
the Society has a dominant or important interest, or with which
the Society has special relations, the ownership of stock other
than that owned by the Society should be ascertained so far as
practicable.)
Y. The subjects covered by the report of the Investigating Com-
mittee of which Mr. Frick was Chairman should be fully in-
vestigated.
8. When the report of the New York Superintendent of Insur-
ance has been made that report should be carefully studied and
fcvery matter covered by it or by the recommendations of the Com-
missioner should be carefully examined.
Subsequently a still more elaborate plan of investigation was
agreed upon with these accountants, and I doubt if any American
insurance coirijaiiy ever fciefore had such an exhaustive examina-
tion.
3294 Legislative Insurance Investigation.
It has taken a large force of men five 'months to ascertain the
exact financial status of the Society, now fully exposed by the
balance sheets transmitted with the following note and repro-
duced on pages 6 and 7.
New York, November 25th, 1905.
Mr. Paul Morton, Presidentj
The Equitable Life Assurance Society of the United States.
120 Broadway, New York.
Dear Sir:
The exhaustive_examination which we have made of the affairs
of the Equitable Life Assurance Society of the United States, is
so far completed, that we are now able to furnish you with a
Balance Sheet showing the true Financial Position of the Socie^
on September 30, 1905.
The Assets of the Society as claimed were all found to be on
hand, and amounted in value to $416,166,500.10, as shown by
the Balance Sheet.
The surplus over and above all Liabilities amounted to $6Y,-
142,865.42. ' ,
A conservative revaluation of the Assets, including a re^ap-
praisal of all the real estate owned by the Society or covered by
mortgages lield by the Society, has resulted in a reduction in cer-
tain of the values adopted in the Society's last Annual Keport,
principally in Real Estate and in Stocks of certain financial in-
stitutions.
Yours Very truly,
(Signed.) PElCE, WATERHOUSE & CO.,
Chartered Accountants,
by A. Lowes Dickinson, E.O.A., O.P.Ai
(Signed.) HASKINS A SELLS,,
Certified Public Accountants,
by Elijah W. Sells, C.P.A. ;
You will be gratified to learn:
(1) That all the assets claimed by the Society are on hand, are
'of a high grade, ^nd are conservatively worth $416,166,500.10.
] (2) That, over and -above all liabilities, the surplus is $67,142,-
|'<65.42, about seven-eights of which is a fund for division among
Existing deferred dividend policies at the end of their accumula-
tion periods. .. - __ -, ,,. .,__, ^
Exhibits -^ Part III. 129c
, (3) That the reduction fn the book value of our assets and sur-
plus is caused hj^ a revalu«.tion on a conservative basis, and in no
way reduces the income of the Society.
The decreia^e in the value of assets is chiefly in real estate which
was carried at prices too high, and in shares of certain financial
institutions Which were carried at market prices based on small
transactions, which were deemed by our accountants to be ex-
cessive.
KETBENCHMENT.
Economies amounting to over $600,000.00 a year have already
been introduced, which, if capitalized on a four per cent, basis,
would be equivalent to an additional investment of over $15,-
000,000.00. This more than covers the marking down of assets.
I expect to institute still further economies of a radical character.
KESTITUtlON.
Under the past management transactions involving the expen-
diture of large sums of money have been carried through frequent-
ly without any proper authority of the Board of Directors and
with very* meager bookkeeping records, so that it has been diffi-
cult in many instances to secure explanation of certain transa(>
tions which have taken place during the last ten years, some of
which involve financial loss to the Society.
The liabilities disavowed by the Sooety, and the amounts re-
stored to the Society approximate $1,000,000^ and legal proceed-
ings have been instituted for the recovery of considerable addi-
tional sums.
ANNUAL AUDIT.
It will be the policy of the new administration of the Society
to insist on an independent audit of its accounts as to its fiscal
condition, once each year, the result of which will be published.
1396
Legislative Insurance Investigation.
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Legislaiite Insurance Investigation.
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ExUbUs — Pari III. 1303
We have examined tke books, accounts and records of The
Equitable Life Assurance Society of the United States, including
the signed reports from Foreign Offices of Loans on Policies
held by them, which have not been otherwise verified. We
have certified the correctness of the Balance Sheet at June 30th,
1905, and have verified the changes in the Assets and Liabilities
between that date and September 30th, 1905, and
We Hereby Certify that in our own opinion the above Balance
Sheet is correct and is properly drawn up so as to show the true
Financial Position of the Society at September 30th, 1905.'
New York, November 28, 1905.
PEIOE, WATERHOUSE & CO.,
Chartered Accountants.
by A. LOWES DICEINSON, F. 0. A., 0. P. A.
HASKINS & SELLS,
Certified Public Accountants.
by ELIJAH W. SELLS, C. 1>. A.
ADVANCES TO AGENTS.
The advances to agents secured by their unpaid commissions,
which were carried by certain trust companies under special con-
tracts with the Society were, as a result of careful consideration,
found to constitute at least a moral obligation of the Society,
and one which it would be profitable to take over. This has
been done and these accounts amounting to $5,813,184.87, have
been taken over by the Society. This will result in an increase
in the income of the Society of nearly $150,000 per year.
NOMINATION OF DIRECTOES.
Under the change in ownership of a majority of the stock, the
shares were at once put in trust; and Directors are now nominal ed
by the Trustees — Hon, Grover Cleveland, Justice Morgan J.
O'Brien, and Mr. George Westinghouse. Thirteen Directors are
chosen annually, and the trustees will each year offer an oppor-
tunity to the policyholders to express their preferences in respect
of the choice of Directors.
LEGISLATION.
So much has been printed and said about the life insurance
business during the last six months that it is sure to be a subject
of great consideration by various legislatures soon to convene.
You cannot give men character nor make them honest by pre-
amble, resolution or enactment. What the life insurance busi-
ness needs above everything else is character, honesty and good
business administration. There can be no objection to propeu
1304 Legislative Insurance Investigation.
legislation safeguarding the business, but it should .be sane and
sound.
The Society depends upon its policyholders to see that there
is no unreasonable legislation enacted. It may from time to
time call their attention to measures calculated to do'them>harm,
but under no circumstances "will it be a party to any corrupt
methods in preventing " strike " legislation. We aim to meet
the just requirements of every State and Government, and. we
rely upon our policyholders to see that no injustice is done them.
Any unfair insurance law or insurance tax measure enacted by
your State Legislature injures you, and reduces the dividend
earnings of your policy. Tour dividends would now be nearly
10 per cent, larger if it were not for the State taxes and license
fees that the Society is obliged to pay.
POLITICAL COE"TRlBUTIOiN"S.
It will be the policy of the Society hereafter not to make con-
tributions to political campaigns. It is my opinion that we have
no right to use the funds of the Society for any such purpose.
INVESTMENTS.
The new management of the Society, so far as it is consistent
with safety and good business judgment will hereafter undertake
to invest its reserves in real estate mortgages or ]the securities of
railroads and other well established corporations Serving those
sections of the country which produce the ;^remiums. This will
negative the claim that money paid for premiums is sent away
from home and is not available for local development.
EEAL ESTATE MORTGAGES.
In the last ten years this Society has loaned over $120,000,000
on real estate mortgages, mostly in large cities. Only in six of
these cases has it had to take property under foreclosure, and in
these six instances the property was sold so as to net a profit.
It will continue to be the policy of the Society to make invest-
ments of this description.
COST O'F INSURANCE.
The very essence of life insurance is safety and this can be
secured only by reasonable premiums. Most all forms of assess-
ment, fraternal, or other " cheap " insurance have been failures.
Exhibits — Part III. 1305
. A grssat, many Equitable policyholders are doubtless asking
themselves the question whether it will pay them to continue
their policies. ,, . >
, To such I wi^; to say most emphatically that my investigation
of the affairs of the Society has convinced me that there is no
.cheaper rv^ay for the policyholders of the Equitable ta have sOund
life insurance than by retaining their policies. As I have pointed
x]\\t, the 1 Society's funds, including its surplus of over $67,000,000,
are safely ; inyested upon a basis which returns an excellent rate
Hfi interest 1 upon the revised valuations, and I expect in- due time
to accomplish such economies that the cost of administration and
securing new business will be reduced to the lowest possible basis
consistent with safety and efficiency. I, accordingly, believe that
-by , continuing your policies in the~^ Equitable you will not only
receive life insurance at the lowest cost consistent with safety,
but that the premiums paid in excess of what turns out to be the
actual cost of your insurance will be returned to you, together
with interest at as high a rate as is being paid ,by New York
savings banks.
I therefore advise policyholders to continue to pay their pre-
miums; to allow their policies to lapse will be doing themselves
injustice. Your contracts with this Society are as safe and sound
as anything earthly can be. Where lapses have already occunred
the agents of the Society will cheerfully assist in restoring policies.
Over 98 per cent, of our death claims in this country are set-
tied within 24 hours after proof of death is received, and since
January 1st, 1905, through all of the agitation concerning life
insurance, this Society has paid out alone in death claims and
benefits of other kinds over $118,000 every working day..
EXTRAOEDINAEY EXPENSES IN 1905.
I congratulate you and all policyholders in solvent concerns on
the reformatory results of the agitation of the past year. This
Society alone has undergone four separate investigations since
January 1st. The extraordinary legal and other expense entailed
thereby is amply compensated for by the enforced restitutions
and checked waste hereinabove referred to and by the final assur-
ance you now have of the wealth and solvency of your Society.
I am convinced that these and other investigations and the re-
galting stimulation oi discussion have attracted public attejjtioo
1306 Legislative Insurance Investigation.
to the impregnable strengtli of established concerns like the Equi-"
table more effectually than could have been done by any other
means. While- these investigations may have been destructive of
individual reputations, the utility of life insurance has been more
fully demonstrated than ever beforie.
There will be no effort by the new administration to have the
biggest company in the world; the effort will be to make it the
best and safest. Conservative lines will be followed. It will be
the policy not to solicit or secure new business at the expense
of the present policyholders, and in case it is determined that
business in any section of the world is unprofitable, that field
will be abandoned.
Assuring you that it will be my constant endeavor to conduct
the affairs of this Society in a manner that will merit your hearty
approbation, I am, , ,
Very truly yours,
PAUL MOETOIS',
President.
Exhibits — Fart III.
1307
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18iO Legislative Insurance Ini)esiigation.
Exhibit No. 1024.
Al'FIDAVIT OF GAGE E. TAEBELL.
In Reply to Testimony pf George H. Sickels, taken Before
the Joint Committee of the Legislature of the State of New
York Investigating Life Insurance Conditions on December
30, 190,5.
County of New York, T
STATE OF NEW YORK, J ^^■' •
GAGE E, TAEBELL, being duly sworn, says: I am Second
Vice-President of the Equitable Life Assurance Society of the
United States. I have read the testimony of George H. Sickels,
taken on December 30, 1905, before the Joint Committee of the
Legislature of the State of New York Investigating Life Insur-
ance conditions, and in accordance with the permission granted
by the Committee make this affidavit in answer thereto.
On August 26, 1898, I returned to the United States from a
trip to Europe. Shortly after my arrival I learned that on Au-
gust 4th Mr. George H. Sickels had entered into a preliminary
agreement with Mr. Albert F. Aird of Buffalo, whereby he was
to purchase from Mr. Aird a half interest in .his contract with the
Equitable Life Assurance Society, and join :him in the manage-
ment of thb Society's business at Buffalo. This agreement was
made without consultation with me and without my knowledge.
In his testimony, Mr. Sickels stated that he had a conversa-
tion with me in the fore part of September. I did not see Mr.
Sickels after my return from Europe untiLsome time during the
last half of September or the early part of October.
I unequivocally deny that in said conversation, or. in any other,
conversation I made to Mr. Sickels the statements attributed by
him to me in his testimony, to wit: That I said or suggested to
him, that he could offer to a person as an indu0ement to take out
a policy, a sum of money for letters of introduction which could
be used or not used, nor did I make to him any statement from
which he could infer that I advised or approved the indirect form
of rebating to which he refers or any form of rebating direct or
indirect.
I may add that I have frequently stated to agents that they
could properly make use of policyholders, or their friends who
are not policyholders, to assist them in securing business either
Exhibits — Part III. . J 311
through personal introductions or letters of introduction, and tli*t
they could eompensate siieh assistance by a commission upon the
business actually secured and paid for through such introductions,
Ihis entirely irrespective of whether the person thus furnishing
the introductions takes insurance or not.
Mr. Sickels testified tliat he left the life insurance business on
account of rebating, and that he explained this reason to me and
that I made no comment upon his explanation. To show how
absolutely false this testimony was, I feel that I am jiistified in
giving in full his letter to me of January 3, 189'9, which was- the
first intimation that I received from him to the effect that he
thought of discontinuing his connection with the Society. Such
letter was as follows:
" Geo. H. Sickels,
Eeal Estate & Loaning,
Eeal Estate Exchange.
Buffalo, N. Y., Jan. 3, 1899.
Mr. Gage-E. Tarbell,
Third Vice-President Equitable Life,
New York, City, N. Y.
My dear Gage:
Will you kindly consider this matter a confidenflal one. I am
led to write it from the fact that I do not wish to have any differ-
ences with Mr. Aird of a personal nature and therefore in my talk
with him here and with yourself, for we expect to come to New
York at an early date, I have and shall not say one word as to the
true cause of my taking the step which I find it necessary to take.
But not to weary you and to the point. I intend to retire from my
partnership with Mr. Aird. He is so constituted, personally, that
I think it is a physical impossibility for him to get along with any
partner, or rather for any partner to get along with him. He is a
man of so many moods and disagreeable peculiarities that for one
to live in peace with him, he must be allowed to run things in his
own way without hindrance. His business methods are not mine
and I do not purpose to be associated with any man in business
with whom I-must have an unpleasant discussion every day. Life
is too short iind I do not have to keep up such associations and do
not intend to do so. You must know that this is not only a serious
but likewise a very disagreeable situation for me. It is a bad
thing for a man to thus change about in business affairs, but I
think the result is inevitable in the near future, so if th(f break
1312 ' Legislati've Insurance Investigation.
-■ ■ ■ ■■_-.--- — .
must come it wiH be with less damage how than later, I haye told
Mr. Aird that I do not think there is business enough for two,
which in fact is true enough, I have not s»id one word of a per-
sonal nature and do not intend to do so to him or any one else.
However, I think you are entitled to know all there is in the situa-
tion here, again, I value your good opinion and do not Vaiit you to
think that I am vacillating and changeable in business > affairs
While perhaps Mr. Aird means right, it is impossible to get aloiitg
wth him as a business associate. It would seem to m^, Gage, that
knowing the man as you must, you can but know wher&of I speak.
I want to say right here, however, that in my opinion,- the Equita-
ble Life has a jewel in Aird. I do not believe any other: man
living could get more business out of this te:/f itory than he ' has
during the past two years. He sacrifices everything to .get it,
both bodily, mentally and financially. The Equitable is certainly
well taken care of and gets the busiiiess and good business tpo.
I feel sure your company can make no better investment than
to give him what he wants in the way of financial aid. , One
thing you may rest assured of, every dollar of it will- go into the
business. It was unfortunate that I purchased the renewals of
Aird but I must either, make some sale to the company^ or |o.
Aird. He is the one, of course, who ought, to own' the renewals,
or if nothing can be done to dispose of them I must keep them
and get returns later. But, of course, it will be better all around
for me to get out entirely, if possible. I am writing you so you
will know how matters stand with-me. When wemeet"! do liot
think it would be profitable to go into my reasons with Aird for
stepping out. Everything is pleasant with Mr. AiM and myself
now, and it is my earnest wish that our relations remain: so. J I
want to step out with as little damage to him as possible. I 'Sin-
cerely hope you will appreciate my position and assist me so far
as lies in your power to make some adjustment, so I can get' out
entirely. '■ ' ' '■
Sincerely yours,
'(Signed) GEO. H: SIOKELS."
Subscribed and sworn to before me this 10th day of January,
1906, " ," """'.
GAGE E.' TAEBEil. I
John B. Eussell,
Notary Public,
K Y. Co.
125.
Exhibits — Part III.
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Exhibits — Part III. 1321
Exhibit No. 1027,
ADVANCES AND LOANS TO AGENTS, 1904.
^ New Advances. Advances Repaid.
January ,. . $181,12Y . 62 $17,003 . 05
February 19i,455 . 33 93,533 . 92
March 456,616.56 389,828.98
April , 109,505.09 60,Y85.39
May 192,610.50 152,100.32
June. ,392,613.39 342,901.24
July 139,532. Y7 44,763.43
August..' ■ 182,485.80 128,358.68
September 407,853 .83 346,650 . 64
October 201,907.73 100,876.38
November 449,921.03 292,649.33
December 1,097,190 . 19 1,083,232 . 24
$4,002,819.84 $3,052,683,60
Interest charged 271,508 . 07
$4,274,327.91
New York, Dec. 30, 1905. ,
AUDITOE'S DEPAETMENT
Advances and Loans to Agents
Of the amount charged in advances for 1904 a certain part is
for loans made to agents during the year and actually refunded
in full -within the same year. This may be estimated at from
five to seven per cent.
Another and much larger part, consists of loans to agents
during the year, partially refunded both by cash payments, and
renewal commissions credited in the same year.
The limited time given for these computations prevents an
accurate statement. But. the paper accompanying is a very close
estimate by months. , ,
(Signed) FKANCIS W. JACKSON,
Auditor.
New York, Dec. 30, 1905.
1322 Legislative Insurance Investigation.
Exhibit No. 1028.
THE EQUITABLE LIFE ASSUKANOE SOCIETY. OE THE
UNITED STATES.
_ HEISTET B. HYDE, Eoundear.
120 Broadway, New York, Jan. 6th, 1906.
Hon. Wm. W. Armstrong, Chairman, Legislative Committee:
Dear Sir:
In giving my testimony on the 30th ult., I fear that I did not
ftirnish all the figures to the Committee which were niecessary
to make my meaning plain, when I testified as to the $10,000,000
of surplus which the Equitable had at the end of the year 1904
for its policies which were on other plans than Deferred Dividend.
I should have stated that of the Society's liabilities of about
$333,000,000 at the close of 1904, about $97,000,000 were on
Non-Deferred Dividend assurance; and that as from the $105000,-
000 of surplus, we would pay in 1905, dividends amounting to
about $750,000, the undivided surplus would really be a little
less than 10 per cent, of the liabilities.
You may remember that I expressed the opinion that a life
assurance company ought to have an undivided surplus of about
10 per cent, of its liabilities, even if it did no Deferred Dividend
assurance. At the close of 1905, the estina^ted liabilities under
our Non-Deferred Dividend contracts, were about $100,000^000,
while owing to the reductions made in the book values of our
assets, our surplus at the close of the ye.ar was not more than
$7,000,000 on this class of business, out of which we must pay
dividends this year.
This brief statement of facts will, I think, make it clear to
the members of the Committee, that this Society has not been
withholding from Annual Dividend policyholders any surplus
which should have been apportioned to them. You will certainly
agree with me, that security is the most important object to be
sdught in the managem^t»of a life assurance company.
Trusting that you will pardon my troubling you with this letter
of explanation, I am,
Yours very truly,
(Signed) J. Q. VAN CISE, '
Actuary.
•Exhibits — Pari III. 1323
Exhibit No. 62.
Mtl1:tJAL UTE IFSUEANCE COMPAN-T OE NEW TOEK
Bank Balances, January 2, 1904
National Bank of Oommerce , $8,306,000. 06
Tirat National Bank , ,; . 732,647 . 54
Herchants' Exchange National Bank 157,526.22
American Exchange National Bank 948,336 . 32
Guaranty Trust Co 3,350,000.00
ITnited States Mortgage & Trust Co 2,500,000.00
Central Trust Co. , 1,000,000.00
Metropolitan Trust Co 200,000 . 00
Fifth Avenue Trust Co 750,000.00
Title Guarantee and Trust Co 500,000 .00
Morton Trust Co. 500,000.00
Mutual Alliance Trust Co ; 450,000 . 00
Brooklyn Trust Co. 450,000.00
National Bank of the Republic, Boston 100,000 . 00
Morristo-wn Trust Co 250,000.00
Commercial Trust Co., of New Jersey 500,000 . 00
Girard Trust Co., Philadelphia 250,000 . 00
Industrial Trust Co., Providence , 250,000 . 00
Central Eealty Bond & Trust Co 500,000 . 00
Bank of Montreal 296,595 .45
Agency deposits ■ ,. . 932,751.75
' ' $22,923,857.34'
THE MUTUAL LIEE INSURANCE COMPANY OF NEW
YORK,
Bank Balances, February 1, 1904.
National Bank of Commerce. $8,543,891 . 13
First National Bank. .~ 1,567,217 . 63
Merchants' Exchange National Bank 247,970 . 31
American Exchange National Bank. ., 216,428 . 27
Guaranty Trust Co 3,350,000 . 00
United States Mortgage & Trust Co 2,500,000 . 00
Central Trust Co , 1,000,000.00
MetJ-o-politan Trust Co 200,000 . 00
1324 Legislative InsurarifCe InvesHgatioru
, ^^ , ^ fe
Fifth Avenue Trust Co $500,000.00
Title Guarantee and Trust Co. . . ., 500,000 . 00
Morton Trust Oo 500,000.00
Mutual AUianee Trust Oo 450,000 . 00
Brooklyn Trust Oo , 250,000.00
National Bank of the Kepublic, Boston r. . . 100,000 . 00
Morristown Trust Co 250,000.00
Oommercial Trust Co., of New Jersey 250,000.00
Girard Trust Co., Philadelphia 250,000 . 00
Industrial Trust Co., Providence 250,000 . 00
Bank of Montreal 304,193.27
Agency deposits j^. 899,942 . 30
Central Eealty Bond & Trust Cor. 500,000.00
$22,629,642.91
THE MUTUAL LIFE mSURANCE COMPANY OF NEW
TOEK.
Bank Balances, March 1, 1904.
^ National Bank of Commerce $8,1Y1,Y70. 90
' First National Bank 984,988 . 51
Merchants' Exchange National Bank 307,101 . 97
American Exchange National Bank .- 327,050 . 18
Guaranty Trust Co. 2,500,000 . 00
United States Mortgage & Trust Oo ...... 2,500,000 . 00
Central Trust Co.. 1,000,000.00
Metropolitan Trust Oo ' 200,000 . 00
Fifth Avenue Trust Co , 500,000. 00
Title Guarantee and Trust Co 500,000 . 00
Morton Trust Co 500,000 . 00
Mutual Alliance Trust Co 450,000 . 00
Brooklyn Trust Co 250,000.00
National Bank of the Republic, Boston , 100,000.00
Morristown Trust Oo 250,000.00
Commercial Trust Co., of. New Jersey. .■ 250,000.00
Girard Trust Co., Philadelphia 250,000.00
Industrial Trust Co., Providence 250,000.00
Bank of Montreal , 256,688 .24
Agency deposits 1,011,073 . 85
Central Realty Bond and Trust Co 500,000 . 00 '
$21,058,673.65
Exhibits — Part III. 1325
THE l^iUTUAL LTZE DTSUEANOE COMPANY OF NEW
TOEK
Bank Balances, April 1, 1904.
National Bank of Commerce $Y,414,431 . 52
First National Bank 1,080,064.32
Merchants' Exchange National Bank 260,829 . 90
American Exchange National Bank 220,977 . 15
Guaranty Trust Co 1,000,000.00
United States Mortgage & Trust Co 1,000,000 . 00
Central Trust Co 1,500,000 . 00
Metropolitan Trust Co 200,000 . 00
Fifth Avenue Trust Co 500,000 . 00
Title Guarantee and Trust Co 500,000.00
Morton Trust Co 500,000.00
Mutual Alliance Trust Co 450,000.00
Brooklyn Trust Co 250,000.00
National Bank of the Kepublic, Boston 100,000 . 00
Morristown Trust Co 250,000 . 00
Commercial Trust Co., of New Jersey 250,000.00
Girard Trust, Co., Philadelphia 250,000.00
Industrial Trust Co., Providence 250^000.00
Bank of Montreal 146,268 . 86
Agency Deposits 1,098,078 . 07
Central Kealty Bond & Trust Co 500^090 . 00
$17,710,649.92
THE MUTUAL LIFE INSURANCE COMPANY OF NEW
YOKK.
Bank Balances, May 2, 1904.
National Bank of Commerce $10,227,403 .70
First, National Bank 1,821,419 . 82
Merchants' Exchange Natioiial Bank 292,973.95
American Exchange National Bank ,. 281,455 . 87
Guaranty Trust Co 2,000,000.00
United States Mortgage & Trust Co 2,000,000.00
Central Trust Co 2,000,000.00
^1326 Legislatim Insurance Iwvestigation,
— -f
Metropolitan Trust Co , $200,000 . 00
Fifth Avenue Tfust Co 500,000. QQ
Title Guarantee & Trust Co 500,000 . o6
Morton Trust Co ' 500,000.00
Mutual Alliance Trust Co. 250,000 . 00
Brooklyn Trust Co 230,000 00
National Ba^k of the Repuhlic, Boston 100,000 . 00
Morristown Trust Co, 250,000 . 00
Oomn^ercial Trust Co,, of New Jersey, 250,000.00
Girard Trust Co., Philadelphia 250,000.00
Industrial Trust Co,, Providence 250,000.00
Bank of Montreal 237,199 .24
Agency Deposits . ,,,,,.,.,,,,, 1,051,908.87
Central Realt/ Bond & Trust Co 500,000 . 00
$23,712,361.45
THE MUTUAL LIFE INSURANCE COMPANY OF
NEW YOKK.
Bank Balances, June 1, 1904.
National Bank of Commerce $7,822,115.92
First National Bank 926,914.93
Merchants' Exchange National Bank 182,859.39
American Ikchange National Bank 182,645.96
Guaranty JTrust Co 1,500,000.00
United States Mortgage & Trust Co 1,500,000.00
Central Trust Co 1,500,000,00
Metropolitan Trust Co 200,000.00
Fifth Avekiue Trust jCio ; , . . 500,000 . 00
Title Guarantee & Tryst Co 500,000.00
Morton Trust Co ^. 500,000.00
Mutual Alliance Trust Co 250,000.00
Brooklyn Trust Co. 250,000.00
National Bank of the Eepublic, Boston 100,000.00
MorristoTm Trust Co 250,000.00
Commercial Trust Co., of New Jersey 250,000.00
Girard Trust Co., Philadelphia .' •..,.. 250,000.00
Industrial Trust Co., Providence 250,000.00
Exhibits — Part III. 1327
Bank of Montreal $-23(Y,869'. 53
Agency deposits 1,017,235.89
Central Eealty Bond & Trust Co 500,000.00
$18,66-9,641.&2
THE MUTUAL LIFE IKSUHANCE COMPANY OF
S-EW YOEK.
Bank Balances, July 1, 1904.
iSTational Bank of Commerce $8,510,477.29
First ISTational Bank 1,893,920.16
Merchants' Exchange National Bank 259,239.90
American Exchange National Bank 218,818 16
Guaranty Trust Co 2,000,000-. 00
United States Mortgage & Trust Co 2,000,000.00
Central Trust Co 2,000,000.00
Metropolitan Trust Co 200,000.00
Fifth Avenue Trust Co 700,000.00
Title Guarantee & Trust Co 500,000.00
Morton Trust Co 500,000.00
Mutual AUianee Trust Co 250,000.00
Brooklyn Trust Co 500,060.00
National Bank of the Republic, Boston ' 100,000.00
Morristown Trust Co 250,000.00
Commercial Trust Co.., of New Jersey 250,000.00
Girard Trust Co., Philadelphia 25O,00O.O6
Industrial Trust Co., Providence 250,000 . 00
Bank of Montreal 235,199.61
Agency deposits ' 977,363.86
Central Eealty Bond & Trust Co 500,000 . 00
$22,345,018.98
THE MUTUAL LIFE INSURANCE COMPANY OF
NEW YORK.
Bank Balances,, August 1,, 1904.
National Bank of Commerce $7,722,166 . 64
First National B^ank 2,440,678.90
Merchants' Exchange National Bank 253,226.59
1328 Legislative Insurance Investigation,
American Exchange ISTational Bank $236,808 . 32
Guaranty Trust Co. 2,000,000.00
United States Mortgage & Trust Co 2,000,000 . 00
Central Trust Co 2,000,000.00
Metropolitan Trust Co 200,000.00
Fifth Avenue Trust Co 600,000.00
Title Guarantee & Trust Co 500,000.00
Morton Trust Co 600,000 . 00
Mutual Alliance Trust. Co 250,000.00
Brooklyn Trust Co 250,000.00
National Bank of the Kepublic, Boston 100,000 .00
Morristown Trust Co 250,000.00
Commercial Trust Co., of New Jersey 250,000 . 00
Girard Trust Co., Philadelphia 250,000 . 00
Industrial Trust Co., Providence 250,000.00
Banik of Montreal .- 251,967. 94
Agency deposits 967,167 . 56
Central Kealt;^ Bond & Trust Co 500,000 . 00
$21,672,015.95
THE MUTUAL LIFE INSUEANCE COMPANY OF NEW
YORK.
Bank Balances, September 1, 1904.
National Bank of Commerce $7,999,026 . 93
First National Bank ,. 1,981,355 . 60
Merchants' Exchange National Bank 22,070,91
American Exchange National Bank 232,060.97
Guaranty Trust Co 2,000,000.00
United States Mortgage, &c.. Trust Co 2,000,000.00
Central Trust Co 2,000,000.00
Metropolitan Trust Co 200,000.-00
Fifth Avenue Trust Co 500,000.00
Title Guarantee & Trust Co 500,000 . 00
Morton Trust Co 500,000.00
Mutual Alliance Trust Co 250,000.00
Brooklyn Trust Co 250,000.00
National Bank of the Republic, Boston 100,000 . 00
Morristown Trust Co ^60^000.00
Exhibits — Part III. 1329
Commercial Trust Co., of New Jersey $250,000.00
Girard Trust Co., Philadelphia 250,000.00
Industrial Trust Co., Providence 250,000 . 00
Bank of Montreal 259,526 .41
Agency deposits 94:7,i.8Q . 30
Central Eealty Bond & Trust Co 500,000 . 00
$20,441,527.12
THE MFTTJAL LIFE INSUEAiirCE COMPANY OE NEW
YORE.
Bank Balances, October 1, 1904,
National Bant of Commerce $8,459,677 . 69
First National Bank 1,447,410 . 82
Merchants' Exchange National Bank 77,745 .79
American Exchange National Bank 183,729.84
Guaranty Trust Co . . ._. ' 1,500,000 . 00
tJnited States Mortgage & Trust Co 1,500,000.00
Central Trust Co ; 2,000,000.00
Metropolitan Trust Co 200,000.00
Fifth Avenue Trust Co 500,000.00
Title Guarantee & Trust Co 500,000 . 00
Morton Trust Co ., 500,000.00
Mutual Alliance Trust Co. . .- 250,000 . 00
Central Eealty Bond & Trust Co 500,000.00
i^rooklyn Trust Co 250,000.00
National Bant of the Eepublic, Boston 100,000 . 00
Morristown Trust Co 250,000.00
Commercial Trust Co., of New Jersey 250,000.00
Girard Trust Co., Philadelphia 250,000 .00
Industrial Trust Co., Providence 250,000 . 00
Bank of Montreal 254,495 . 37
Agency deposits 940,955 .41
$20,640,014.92
1330 Legislative Insurance Iimesfigation.
THE MUTUAL LIFE INSUEANOE COIEPANT OF NEW
YOEK.
Bank Balances, November 1, 1904.
National Bank of Commerce $7,215,136.08
First National Bank 1,533,192 . 54
Merchants' Exchange National Bank 287,576.00
American Exchange National Bank 199,237.89
Guaranty Trust Co. 1,500,000 . 00
United States Mortgage and Trust Co 1,500,000.00
Central Trust Co ^ . . 1,500,0(^0.00
Metropolitan Trust Co 200,000 . 00
Fifth Avenue Trust Co 500,000.00
Title Guarantee & Trust Co 500,000 .00
Morton Trust Co 500,000.00
Mutual Alliance Trust Co 250,000 . 00
Central Eealty Bond & Trust Co 500,000 . 00
Brooklyn Trust Co -. 250,000.00
National Bank of the Eepublic, Boston 100,000 . 00
Morristown Trust Co 250,000.00
Commercial Trust Co., of New Jersey ■ 250,000.00
Girard Trust Co., Philadelphia 250,000.00
Industrial Trust Co., Providence 250,000.00
Bank of Montreal 219,090,09
Agency deposits 980,615 . 42
$18,734,847.02
THE MUTUAL LIFE INSURANCE COMPANY OF NEW
YOEK.
Bank Balances, December 1, 1904.
National Bank of Commerce $7,621,113 . 54
First National Bank . 1,100,401 .41
Merchants' Exchange National Bank 228,788 . 20
American Exchange National Bank 237,277 . 39
Guaranty Trust Co 1,500,000 .00
United States Mortgage and Trust Co 1,000,000 . 00
Central Trust Co. 1,000,000.00
Metropolitan Trust Co 200,000 . 00
ExMUts — Part III. 1331
Fifth Avenue Trust Company $500,00.00
Title Guarantee and Trust Co 500,000 . 00
Morton Trust Co 500,000.00
Mutual Alliance Trust Co 250,000 .00
Central Eealty Bond & Trust Co 500,000 . 00
BEookljn Trust Co 250,000.00
JTational Bank of the Kepublic, Boston 100,000 . 00
Morristown Trust Co 250,000.00
Commercial Trust Co., of New Jersey 250,000.00
Girard Trust Co., Philadelphia 250,000 . 00
Industrial Trust Co., Providence 250,000 . 00
Bank of Montreal 188,660.19
Agency deposits 922,927.04
$1T,509,167.T7
1332
Legislative Insurance Investigation.
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1333
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1336 Legislative Insurance Investigation.
Exhibit
INCOME AND DIS
I
Amount of invested assets December 31, 1903.
II
INCOME,
Premiums — First Year $13,988,186.75
Premiums — Single 93,979.64—
Reinsurance Premiums — 1st Tear '.
Savings Bond Premiums
Savings Bond Pass Book
X ,
Total First Year's Premiums on original policies
Premiums — Single, from Dividends
Consideration for Annuities from Dividends
5 X
Considerations for Annuities — Single 1,505,593.87
Considerations for Annuities — Def. — 1st Year 20,188.41 —
Considerations for Annuities — 5^ Deb. — Single X
Considerations for Annuities — Con. — ^Instal. — Single ,...
Premiums — 5;^ Debenture Endowments — Single.- X
Total New Premiums
Premiums — Renewal with Commission 17,221,770.42
Premiums — Renewal with Collection Fees 2,800,374 ,78
Premiums — Renewal without Charge 44,546,564 . 53—
Reinsurance Premiums-^Renewals
12 " Considerations for Annuities — Deferred, Renewals
13 Total Renewal Premiums .'
14 Total Premium Income -
Endowment Fund Receipts
Registered Bond Fund Receipts
Trust Fund Receipts. .-
5^ Gold Bond Receipts. '.
S^Debenture Receipts ,
Instalment Fund Receipts
16" X
17 Revived Premium Notes
18 Interest on Bonds and Mortgages
19 Interest on Temporary Loans
20 Interest on Bonds
Interest on Blue Notes
Interest on Premiums
Interest on Premiums, Grace ."
Interest on Premium Notes
Interest on Policy Loans
' Interest on Agents' Debts. ,
^ Interest on Bank Deposits -.
23 " Discount on Claims
24 Rent
25 Total Interest and Rents
26 Profit and Loss
27 X
28 Total Income
29 Total "■
21
22
Exhibits — Pari III. 1337
No. 141.
BURSEMENTS, 1904
1
$344,298,648.59
1904
■* ^ ' r-.-^^^^
—$14,082,166.39
32,596.49 —
$14,049,569.90
1,033.30
X
1,033.30-
14,048,536.60
468,311.19
43,429.24
511,740.43
— 1,525,782.28
47,763.95 —
1,573,546.23
$16,133,823.26
— 64,568,709.73
'
183,319.33 —
64,385,390.40
37,363.94—
64,422,754.34—
$80,556,577.60
19,464.84
2,000.00
230,762.30
X
X
286,718.00—
-
538,945.14
\
5,045.41
1,069,231.72
228,334.68
10,634,986.99
$60,558.95
12,751.54 '
28,741.79
105,120.23
1,730,845. 14r-
' 2,140.32
458,389.60—
$1,938,017.65
460,529.92
13,192.95
946,722.63—
$15,291,016.54
499,687.63
•-• •
96,891,272.32
441,189,920.91
1338
Legislative Insurance Investigation.
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Losses '.
Reinsurance Losses
Discounted Endowments ■
Matured Endowments ,
Reinsurance Matured Endowments
Net Amount Paid for Losses and Matured En-
dowments
4 r Annuities ".
[ Tontlile Annuities
5 Lapsed Premium Notes
Purchased Policies
Reserves on Maturing Tontines
Reinsurance Surrenders
Dividends '.
Tontine Dividends
Reinsurance Dividends
(Total Paid Policy-holders, $40,288,583.12.)
Endowment Fund Disbursements
Instalment Fund Disbursements
Registered Bond Fund Disbursements
Trust Fund Disbursements
5^ Gold Bond Disbursements .-^
X - ,
Bonuses
Bonuses, General >. . . .
Commissions on Ist-Year Premiums
Commission on Single Premiums
Savings Bond Commission
Savings Bond Forfeit .-
Reinsurance Commissions — 1st Year
Commissions on Renewal Premiums
Commissions, Collection Fees
Nylic
Reinsurance Commissions — Renewals ;.....
Commissions on Annuities — Single
Commissions on Deferred Annuities — 1st Year
Commissions on Deferred Annuities — Renewals
' Commissions — Commuted
Commissions -=- Advanced
B. O. Clerls Hire
Bonusses of Nylic for Agency Directors
Salaries of M. I. & A
B. O. Exchange
Express
Express, Sundries . . . .■
Express, Traveling Expenses
Conventions
H. O. 'Agency Expenses
$100,000 and $200,000 Clubs
Traveling Expenses — H. O
B. O. Telephone
B. O. Telegrams . .>
■ Physicians' Fees
Policy Fees
Bureau of Investigation ;
Salaries
DISBURSE
$20,412,694.52
251,247.25
4,835,381. 64r—
1,686,557.85
36,602.37—
X
2,457,863.09
5,378,633.80—
"i,b32,888."45
4,965,776.04
5,249.47
45,286.84
4,592.00
32,622.59
7,527V 78—
"$432,66i.'93
194,113.32
6,662,448.64
3,429.50—
X.
X
1,627,632! 34
43,716.85
389,228.64—
34,278
1,085
X
121,837,
605,444
1,029,794,
183,877.
1,631,052.
6,847,
34,728.
49,006.
462,882.
161,563.
183,602.
32,869,
69,586.
27,2.57,
30,247
841,001 ,
92
94r-
60
90—
79
35
32—
91
74
19
65
36
0(3
12
33
02
59—
20—
178,155.01 —
900,475 . 90—
Exhibits — Fart III. 1339
BIENTS.
$20,412,694.52
678,449.60 $19,734,244.92
5,086,628.89
35,000.00- 5,051,628.89-
$7,292,593.39
i5,'74<)'.i2 • ',7,276,853! 27
2,060,577.83
9,145.31 2,051,432.52
841,001.20
52,240.14 — - 788,761.06-
$24,785,873.81
'1,723,166! 22
7,836,496.89
46,438 . 80 7,790,058 .09
5,998,664.49
9,173.49 5,989,491.00
95,278.68
35,364.86 9,363,650.65
,'.'.'.'.'.'.'.'.'. "'727,282!56
2,844,724.40
1,058,590.97
178,155.01 966,016.07
900,475.90
1340 Legislative Insurance Investigation.
DISBURSEMENTS
21 Rent Company's Offices $725,100.76 —
Advertising H. O 1123,951.11
B. O. Advertising -. ... 20,452.36—
B. O. Printing 89,547.65
B. O. Stationery 20,792.12
22 Printing 121,280.25
Stationery s 188,778.81—
Postage 80,978.03
B. O. Postage 205,504.35—
23 ' Law Expenses 172,698.42 —
fB. O. Office Fixtures 169,928.72
24 Expenses — Equipment 31,433.35 —
Taxes N. Y. Insurance Department 111,959 . 51
Taxes Insurance Department 794,229 . 64-^
25 Taxes on N. Y. Real Estate 84,732.85. .
Taxes on Real Estate 128,468.86 —
26 Expenses Home Office 83,.S56.54
27 Expenses on Real Estate ' 189,948.78 —
28 Losses on Real Estate Sales X
29 Expenses 243,089.51—
30 Total Disbursements 60,677,916.43
31 Balance
ExUUts — Part III. 1341
-Continued
$144,403.47
420,398.83
$725,100.76
286,482.38 851,284.68
172,698.42
201,357.07
'906,189 ! 15
"2l'3',26i!7i
273,365.32
243,089.51
$846,187 .46 59,831,728 .97
, 881,358,191.94
1342 " Legislative Insurance Investigation.
Exhibit No. 312.
METROPOLITAN LIFE INSURAITCE COMPANY ■
INSURANCE IN FORCE DECEMBER 31, 1904
Ordinary Department
Ordinary life $154,278,942
Endowment 50,351,444
Term ,.. 13,^89,Y76
Pd. Up Life 362,126
Pd. Up Endowment .53,288
Pd. Up Term 183,464 $218,519,040
Special Class Life 2,706,704
Endowment 3,914,225
Pd. Up Life .5,126
Pd. Up Endowment . 4,800 ' , 6,630,855
Intermediate Life 24,944,500
Endowment 92,069,000
Pd. Up Life 311,675
Paid Up Endowment 59,982 117,385,157
Industrial Department
Industrial Life $422,401,289
Industrial Life 20 Pt 264,166
Industrial Life People's
Participating 408,903
Endowments Infantile 239,187,420
Endowments, Inc. Life and
Endt 348,649,991
Endowments, $500 at age 80 12,109,500
Endowments 45 Year 213,447
Endowments 20 Year Young
People's 50,767,056
Endowments 20 Year Adult 1,190,309
Endowment 20 Year Spec . . . 27,251,625
Endowment 25 Y'ear 262,709
Endowment 30 Year 4,766,116
• Exhibits — Part III. 1343
Endowment 20 Year Term and
Endt. . 11,911,300
Endowment 20 Year Combi-
nation 395^250
Pd. Up Term Y,161,393
Pd. Up Life YY,763
Pd. Up Endowment 870,992 1,127,889,229
' $1,470,424,281
Industrial 1,127,889,229
Ordinary 342,535,052
$1,470,424,281
Exhibit No. 430.
]S^AMES AND ADDEESSES OF THE JANITOR'S HELP.
Name. Address. Town.
Cafe:
Mrs. McKensie, 138 Wasliington Street, Manhattan $15
Mrs. Baily, 18 Trinity Place, Manhattan 15
Mrs. Keating, 106 Greenwich Street, Manhattan , . 1-5
Basement:
S. Cronin, 24 Jpralemon Street, Brooklyn 45
T. Bergin, 44^ Morton Street, Manhattan 40
Mrs. O'Brien, 318 Delancey Street, Manhattan 15
Mrs. Houston, 4 Jackson Street, Manhattan 15
Mrs. Miller, 75 Vestry Street, Manhattan 15
Mrs. Seller, 336 Pearl Street, Manhattan 15
Mrs. Milhurg, 275 Spring Street, Manhattan 15
Mrs. O'Brien, 371 Furman Street, Brooklyn 18
Equitable Trust Co. :
Eugene Hayes, 44 Columbia Street, Brooklyn 40
Mrs. McNamara, 111 Washington Street, Manhattan 15
First Floor:
John McGee, 106 Greenwich Street, Manhattan 45
Jas. Byrns, 6 Albany Street, Manhattan 45
M, Kelly, 120 Pearl Street, Manhattan 45
1344 Legislative Insurance Investiffatipn.
Mrs. Daily, 506 Second Avenue, Manhattan. • 15
Mrs. Eeed, 14 Peacli Street, Manhattan 15
Mrs. Mooney, 5 Batavia Street, Manhattan 15
Mrs. Quinn, 49 Willow Place, Brooklyn 15
Equitable^ Office and Gallery:
P. Gregg, 52 Pacific Street, Brooklyn 40
R. Walsh, 57 ISTelson Street, Brooklyn 40
L. McKeigue, 216 East Sixty-eighth Street, Manhattan. . 40
S. Matcher, 179 Greenwich Street, Manhattan. '40
M. Keating, 106 Greenwich Street, Manhattan 40
Jas. Daily, 151 Jefferson Avenue, Brooklyn 40
Mrs. Flanagan, 517 Greenwich St., Manhattan. . ; 15
Mrs. Biggins, 5 State Street, Brooklyn 3 5
Mrs. Joles, 124 Greenwich Street, Manhattan 15
Mrs. MeCan, 426 Hicks Street, Brooklyn 15
Mrs^. Murphy, 31 Columbia Place, Brooklyn 15
Mrs. Brown, 5 State Street, Brooklyn 15
Mary Dalton, 527 Hudson Street, Manhattan 15
Annie Warehan, 112 Greenwich Street, Manhattan 15
Medical, Policy Departments, Etc. :
John Kelly, 120 Pearl Street, MaiJiattan 45
Mrs. Dolan,. 410 Water Street, Manhattan 15
Mrs. Gambel, 22 Morris Street, Manhattan '15
Mrs. Lauth, 147 Conover Street, Brooklyn 15
Third Eloor:
Martin Powers, 5 Pacific Street, Brooklyn 45
Simon Connors, 1615 Atlantic Avenue, Brooklyn 40
Mrs. Eussell, 224 East Third Street, Manhattan 15
Mrs. Burns, 487 Hickg Street, Brooklyn 15
Mrs. Smith, 121 Eoosevelt Street, Manhattan .",... 15
Mrs. Dennehy, 42 Willow Place, Brooklyn ; 15
Fourth Eloor :
P. Eush, 671 East l7lst Street, Bronx 45
E. Jeannez, 20 Eector Street, Manhattan 40
Mrs. Whelan, 236 Madison Street, Manhattan. 15
Mrs. Eoy, 19 Morris Street, Manhattan 15
Mamie Bresher, 134 Eoosevelt Street, Manhattan 15
Mrs. Moynahan, 19 Morris Street, Manhattan 15
Eiftt Eloor :
M. Elynn, 127 Second Place, Brooklyn 50
}lrp. Earrell, 52 Amity Street, Brooklyn .15
Fanny Dougherty, 85 Warren Street, Brooklyn 15
Exhibits — Part III. 1U5
Mrs. Williams, 434 Pearl Street, Manhattan 15
Mrs. Coleman, 5 Batavia Street, Manhattan 15
Sixth Floor :
D. Curtin, 1615 Atlantic Avenne, Brooklyn 45
T. Lynch, 53 Floyd Street, Broo%n 40
Mrs. Hickey, 189 Sackett Street, Brooklyn 15
Mrs. Kilty, 432 Pearl Street, Manhattan 15
Mrs. Campbell, 640 Hicks Street, Brooklyn 15
Seventh Floor :
T. Bergin, 129 Liberty Street, Manhattan 45
D. Ford, 100 Atlantic Avenue, Brooklyn 40
Ellen Dunn, 129 Liberty Street, Manhattan 15
Mrs. Dunn, 49 Willovif Place, Brooklyn 15
M. MclSTichoMs, l03 Greenv^ich Street, Manhattan 15
Mrs. Eohen, 32 Laight Street, Manhattan 15
Eighth Floor :
Jas. Deegan, 2338 Hughes Avenue, Bronx. ^. 40
Mrs. Daily, 401 Watts Street, Manhattan. . .'; 15
Mrs. Babtist, 41 Kutger Street, Manhattan 41
Windov7 Cleaners:
John Powers, 139 Warren Street, Brooklyn 50
Chas. Dennehy, 135 Columbia Street, Brooklyn 45
P. Powers, 139 Warren Street, Brooklyn 45
P. Clancy, 138 Sackett Street, Brooklyn 45
M. Hayes, 190 Eockaway Avenue, Brooklyn 45
Thos. J. Keating, 14 Kector Street, Foreman, Manhattan. . 75
Per Month.
28 men $1,280 . 00
46 women 693 . 00
Supplies 110.00
deary's monthly pay-roll $2,083 . 00
Cleary receives from Equitable, per month $3,190 . 33
Or per year. 26,284.00
Cleaiy's pay-roll per year 24,996 . 00
Net to Cleary $1,288 .00
48
1346
Legislative Insurance Investigation,
Exhibit No. 488.
LAW EXPENSES 1898.
HanoTer Natl. Bank $1,000.00
E. N. Judson 987.30
Geo. J. Barker and A. W. Green 6,000.00
M. E. Patterson 500.00
Ilomblower, Byrne, Taylor & Miller 1,288.40
Henry A. Gardner 2,353 . 50
Salaries of Law Dept. H. O 18,076 . 65
Duggett & Kyan 650.00
E. E. McCall 2.302.45
E. D. Kelclier , 500 . 00
W. N. Johnson * (»33 . 33
Elandran, Squires & Cutclieon 1,704 . 89
PL S. Boker 1,000.00
W. J. Hadden 3,000.00
Walks & Old 1,269.78
Alfred S. Trade, 3,500 .00
Edward O'BrA^an 2,910 . 83
Slieppard Homans 500 . 00
Jas. A. Nichols 1,000 . 00
Page, McCuteheon & Eells 2,342.95
AVm. D. Whitney 2,500 .00
Jas. H. Mcintosh .« 1,309 . 98
Andrew Hamilton 88,705 . 50
John A. Einch 1,500 . 00
Orr, Kobertson & Butler 948 . 75
Chas. S. Hernley 1,000 . 00
Albert J. Beveridge 5,204.75
V. P. Monnett 1,000 . 00
Turley & Wright 2,000 . 00
Wm. P. Sandei-s. , 500 . 00
Eernando Monro 576 . 00
W. Lr Strong, Treas 2,500.00
Natl. Bank America 2 500 . 00
Moran, Krauss & Mayer 2,210 . 82
A. Naussbaumer 500 . 00
W. C. Arnold 5,000.00
Daniel E. Lynch 1,250 . 00
IVm. D. Whitney 1,000.00
$171,726.88
Exhibits — Part III.
1347
Exbibit No. 647.
Record of Monthly Balances of Cash in Banks and Trust Com-
panies— showing such balances at the close of business on the
first business day of each month from Dec. 1, 1900, to Nov. 1,
1905, inclusive.
FiEST ISTatioh-al Bank, Biwghamtow, N. Y.
Dec.
Jan.
Feb.
March
April
May
Jime
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
■Nov.
Dee.
Jan.
Feb.
March
April
May
June
July
Aug.
$7,000.00
8,000.00
8,000.00
8,000.00-
82,681.52
71,295.31
66,380.57
50,855.72
47,837.00
42,351.10
58,448.74
27,540.07
46,169.78
1902 104,086.42
1900.
1901.
1901.
1901.
1901.
1901 .
1901.
1901.
1901.
1901.
1901.
1901.
1901.
1902..
1902..
1902..
1902..
1902..
1902..
1902..
1902..
1902..
1902..
1902..
1903..
1, 1903.
1, 1903.
1, 1903..
1, 1903..
1, 1903..
1, 1903.,
1, 1903.,
56,657.83
57,077.93
62,255.81
59,576.37
66,199.72
59,830.72
35,410.83
54,169.34
47,100.22
37,559.90
75,885.61
77,364.13
25,394.18
23,936.18
48,144.87
19,594.14
14,945.91
62,811.14
46,003.14
1348
Legislative InsiLrance Investigation.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Marcli
April
May
June
July
Aug.
Sept.
Oct.
ISTov.
Dec.
Jan.
Feb.
Marcli
April
May
June
July
Aug.
Sept.
Oct.
Nov.
22,112.64:
40,962.87
32,921.69
28,094.49
91,289.70
24,721.47
17,546.60
20,171.68
22,414.68
., 53,248.37
41,775.69
29,749.85
54,821.17
53,860.48
58,790.32
84,470.05
159,803.20
1905 110,690 . OS
1903.
1903.
1903.
1908.
1904.
1904.
1904.
1904.
1904.
1904.
1904.
1904.
1904.
1904.
1904.
1904.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
1905.
88,739.78
102,958.99
69,294.15
52,511.55
54,785.85
98,617.02
99,333.70
116,898.72
65,664.05
Bank pays interest at 2^ on all above $30,000.
Exhibit No. 648.
Meeoahtile National Bakk^ New Yoek.
Dec. 1 1900 $26,821.20
Jan. 1 1901 39,189.47
Feb. 1 1901 43,260.62
Marcli 1 1901 29,052.93
April 1 1901 ; 28,931 . 29
May 1 1901 29,080.60
June 1 1901 22,870.13
July 1 1901 23,997.14
Exhibits — Part III.
13i9
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Marcli
April
May
Jvine
July
Aug.
Sept.
Oct.
ISTov.
Dec.
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec;'
Jan.
1901 30,690.21
1901 25,843.87
1901 16,708.97
1901 22,185 . 58
1901 25,497.28
1902 20,924.27
1902 32,221 . 98
1902 27,221.93
1902 30,293 . 35
1902 29,901.18
1902 ': 30,807.99
1902 .. 27,459.01
1902 31,130.65
1902 34,713.93
1902 35,555.26
1902 38,961.50
1902 25,059.36
1903 21,425.72
1903 30,215.95
1903 20,917.87
1903 30,738.89
1903 25,158.56
1903 28,492.64
1903 28,128.39
1903 23,785.39
1903 27,707.76
1903 23,399.90
1903 23,436.61
1903 24,210.22
1904 30,512.54
1904 27,855.06
1904' 22,373.60
1904^; 24,021.04
1904 24,656.99
1904" 'i , 35,912.35
1904!! 21,259.52
1904' . . . , 22,303 . 69
1904"" 21,824.05
1904'.!!!'. 17,034.57
1904 24,096.44
1904 26,409.80
1905!!'.! 28,858.46
1!550 Legislative Insurance Investigation.
. — — ,
Feb. 1 1905 20,620.98
March 1 1905.. 15,072.33
April 1 1905 22,180.21
May 1 1905 2,926.08
June 1 1905 .69
Interest at 2^ on daily balances.
Chenango Valley Bank, Binghamton, N. Y.
Dec. 1 1900, unchanged to Nov. 1, 1905. . $5,000.00
Interest at 3^ semi-annually.
Traders JSTational Bank, Scranton, Pa.
Dec. 1 1900 Interest Certificate $3,000 . 00
Unchanged to July 1, 1904.
May 1 1901 Interest Certificate 2,000.00
Unchanged to ISTov. 1, 1901.
Account closed. Interest at 3^.
BiNGHAMTON Trust Compant, Binghamton, !N". Y.
Dec. 1, 1900 $5,500 . 00
Jan. 1, 1901 5,500.00
Feb. 1, 1901 5,500.00
March 1, 1901 5,500.00
April 1, 1901 , 6,000.00
May 1, 1901 6,000.00
June 1, 1901 ,6,000.00
July 1, 1901 : 6,000.00
Aug. 1, 1901 6,000.00
Sept^ 1, 1901 . 6,000.00
Oct. 1, 1901 6,000.00
Nov. 1, 1901 6,500.00
Unchanged to Aug. 1, 1902.
From Sept. 1, 1902, to
Nov. 1, 1902 6,000.00
From Dec. 1, 1902, to
April 1, 1903 4,000.00
From May 1, 1903, to
March 1, 1904 2,000.00
April 1, 1904 1,500.00
j^.ccount closed. Interest at
Exhibits — Part III. 1351
First National Bank, Glens Falls, N. Y.
Oct. 1, 1905 $243 . 61
Nov. 1, 1905 243 . 61
Interest at 3^.
Susquehanna Valley Bank, Binghamton, IST. T.
Dec. 1, 1900 $49,646.30
Jan. 1, 1901 76,682.16
Feb. 1, 1901 48,374.79
March 1, 1901 49,371.21
Account closed. No interest.
Strong State Bank, Binghamton, E". T.
Dec. 1, 1900 $10,000.00
Jan. 1, 1901 10,000 . 00
Feb. 1, 1901 10,000.00
March 1, 1901 10,000.00
Account closed. Interest at 2^.
LowRT ISTational Bank, Atlanta, Ga.
Dec. 1, 1901 $2,580.00
Jan. 1, 1903 3,000.00
Said deposit unchanged to Nov. 1, 1905. Interest at 3^.
Title Guarantee & Trust Cojipany, Sceanton, Pa.
Jan. 1, 1902 3,000.00
Same unchanged to July 1, 1904. Account closed. Interest
at 3^.
People's Bank, Scranton, Pa.
July 1, 1902 3,000.00
Same unchanged to Feb. 1, 1905.
March 1, 1905 5,612.66
April 1, 1905 5,612.66
May 1, 1905 8,844.70
Jime 1, 1905 6,232.04
July 1, 1905 9,837.72
Aug. 1, 1905 6,605.68
Sept. 1, 1906 7,033.57
Oct 1, 1905 12,063.06
Nov. 1, 1905 , 14,019.60
Interest at 3^,
1352 Legislative Insurance Iwvesiigation.
Guardian City Bank, Chicago, 111.
July 1, 1902 3,000 . 00
Same unchanged to April 1, 1903. Account'
closed. No interest.
People's Bank, Binghamton, "N. T.
July 1,1902 3,000.00
Aug. 1,. 1902 5,000 CO
Same unchange to March 1, 1904. Account
closed. Interest 2 per cent.
Farmers & Traders' Bank, Atlanta, Ga.
Aug. 1, 1902 2,000.00
Unchanged to Oct. 1, 1908. Account closed.
Interest 3 per cent.
County Savings Bank & Trust Co., Scranton, Pa.
Feb. 1,1905 4,004.25
March 1, 1905 6,088 . 89
April 1, 1905 9,985 . 53
May 1, 1905 9,985 . 53
June 1, 1905 6,166 . 65
July 1, 1905 8,077 . 96
Aug. 1, 1905 6,423 . 21
Same unchanged and on deposit Nov. 1, 1905.
Interest 3 per cent.
Metro. Trust & Savings Bank, Chicago, 111.
Oct. 1, 1904 3,492 . 02
Nov. 1, 1904 6,166 . 09
Dec. 1, 1904 9,073 : 98
Jan. 1, 1905 9,073 . 98
Feb. 1, 1905 9,073 . 98
March 1, 1905 9,073 . 98
April 1, 1905 4.458 . 71
May 1, 1905 4^458 . 71
Unchanged to Nov. 1, 1905 and now on deposit.
No interest.
966.69
Exhibits ~ Part III. 135;J
Exhibit No. 652.
SECUEITY MUTUAL LIFE INSURANCE CO.
Eecoed op Gollateeax Loans for 10 Years Last Past.
June 11, 1894. W. B. Whitney Note $658.00
Rate 6 per cent. Secured by chattel mortgage.
Paid as follows:
June 29, 1895 $58 . 00
Jan. 31, 1896 300 . 00
Dec. 31, 1897 300.00
658.00
Jan. T, 1897. Jefferson Kingman Note 5,000.00
Five per cent, semi-annual interest. Secured by
$5,000 par value Sturtevant-Larrabee Wagon Co.
Stock. Interest paid regularly each May 7th and
Nov. 7th, and on to Dec. 10, 1904, when loan was
paid in cash.
Feb. 13, 1897. E. W. Doolittle Note 2,000.00
Secured by chiattel mortgage on Printing Plant
and fixtures. This plant belonged all the time to
the Insurance Co., and no interest was ever paid
on the loan. ' **"
Dec. 31, 1897. There was paid on the loan
from outside printing done $500 . 00
Reducing loan to 1,500 . 00
Dec. 31, 1898. There was paid on the loan
from outside printing $100 . 00
Reducing loan to 1,400.00
Dec. 17, 1904. This amount was charged off and the
note cancelled, all the Printing Plant, worth
$10,000 or more, belonging to the Company,
'ipril 19 1899. J. Fred Sands Note, due Feb. 23,
1900 10,000.00
Interest 4 per cent. This note was taken from
Excelsior Mutual Relief Insurance Society of Ox-
ford, N. Y., at its face value, and on
Feb 23, 1900, was paid off in cash with one year's
interest 400.00
1354 Legislative Insurance Investigation.
Collaterals held were $10,000 Bonds Standard
Light, Heat & Power Co., Unadilla, N. Y.
A.ug. 30, 1899. Francis A. Phelps, Wilkesbarre, Pa.,
Promissory JSTote 11,800 . 00
Money advanced in installments for building.
Interest 5 per cent, began Oct. 5d5, 1899, and was
paid regularly each April 25th and Oct. 25th.
Nov. 25, 1904. Entire loan was paid with interest
in full. Collaterals were $12,000.
Bonds consisting of:
St. Louis & San Francisco E. R. . . $3,000.00
A. T. &S. F. E. E 3,000.00
Nor. Pac 3,000 . 00
Chesapeake & Ohio 3,000 . 00
Sept. 2Y, 1899. M. A. Macumber Six months Note . . 125 . 00
Secured by Life Insurance Policy. Interest at
6 per cent.
Sept. 28, 1900. Note paid in full.
Oct. 10, 1899. Patrick Pound Six Months' Note at 6
per cent 100 . 00
Secured by Life Insurance Policy and endorse-
ment. Interest paid regularly.
April 15, 1901. Paid on principal $Y5 . 00
July 11, 1901. Paid balance 25 .00
100.00
Nov. 8, 1899. A. D. Eice One Year Note, interest at
6 per cent 308 . 72
Interest paid regularly to 'Jan. 1, 1901. Subse-
quently this party gave Policy Lien Note secured
by reserve interest in Policy, and Note was taken
out of Collateral Account.
April 16, 1901. Louis P. Hayzen Note 175.00
June 7, 1901. Note paid in full.
No collateral except Policy of Life Insurance and
personal endorsement.
April 9, 1900. D. H. Keifer One Year Note at 6
per cent 1,500 . 00
Oct. 3, 1900. Paid $250 . 00
Jan. 2, 1902. Paid 250.00
500.00
Leaving balance 1,000 . 00
Exhibits — Part III. 1355
April 9, 1902. Additional loan $49 . 30
$1,049.30
Jan. 5, 1903. Paid 206 . 12
Jan. 19, 1903. Paid balance 843.18
Interest paid in full to Jan. 31, 1903. Collateral
for this loan Park Slate Co. Stock (30 shares),
Scranton, Pa., value 1,500.00
July 19, 1902. Z. Bennett Phelps Promissory ITote. 4,000.00
Interest 5 per cent. Collateral Denver & Rio
Grande E. E. Bonds $5,000.
Got. 10, 1902. Paid $1,000.00
Oct. 2Q, 1902. Paid 1,000 . 00
Dec. 4, 1902. Paid ■. 1,000 . 00
3,000.00
Balance $1,000 . 00
Mar. 25, 1904. Additional loan 1,500.00
$2,500.00
Mar. 2, 1905. Paid 1,000.00
Balance this date unpaid -$1,500 . 00
Interest paid regularly, and paid in full to July 1,
1905.
About Get. 10, 1905, $1,500. Collateral was given
up, leaving $3,500. Collateral still in hand.
Aug. 3, 1901. P. W. Jenkins, Binghamton, W. Y.,
Promissory IsTote 2,000 . 00
Sept. 7, 1901. Additional Loan 1,000 . 00
Sept. 20, 1901. Additional Loan 1,000 . 00
Get. 5, 1901. Additional Loan 1,000 . 00
Nov. 2, 1901. Additional Loan 500 . 00
$5,500.00
Interest at 6 per cent. Secured by $10,000 bonds
of Binghamton Beet Sugar Co., and by $2,000
Stock Strong State Bank. Paid as follows:
Dec. 15, 1901 $4,500.00
Dec. 23, 1901 1,000.00
$5,500.00
1356 Legislative Insurance Investigation.
Jan. 28, 1902. New loan, same party 1,500. 00
June 18, 1902. Additional loan : 3,500 . 00
$5,000.0^1
Interest 5 per cent.
Dec. 26, 1902. Paid $4,000.00
Jan. 20, 1903. Paid , 1,000.00
5,000.00
July 11, 1903. New loan, same party 4,000.00
Interest at 5 per cent. Secured by $3,000 par value
First National Bank stock."
July 24, 1905. Paid, with interest in full 4,000.00
Aug. 12, 1903. Binghamton Beet Sugar Co., Bing-
hamton, N. Y., note at 6 per cent. 6,000.00
Secured by $8,000 Bingbamton Beet Suga.r Co.
bonds.
Interest paid regularly until Jan. 1, 1905; re-
duced to 5 per cent, thereafter.
July 22, 1905. Paid in full.
Dec. 3, 1903. Same company additional loan 15,000.00
Secured by guaranteed stock of said company, and
by personal written guaranty of individual stock'
holders.
Interest at 6 per cent., paid regularly to Jan. 1,
1905, and interest at 5 per cent, thereafter.
July, 24, 1905. Principal and interest paid in full.
Dec. 9, 1903. Same company demand loan 10,000.00
Dec. 31, 1903. Paid 10,000.00
Interest at 6 per cent.
Exhibits — Part III. 1357
Exhibit No. 653.
List of Eeal Estate Mortgages owned by Security Mutual Life
Insurance Company for Nov. 22, lOOS, showing book value and
■ appraised value of premises and location.
Book Appraisal
No. Value. Yalue. Location.
i $12,000 $28,000 Einghamtcrn, N. T.
5 ~ 1,T00 3,000 Binghamton, N. Y.
6 6,000 11,000 Bingbamton, K T.
T 4,000 6,500 Bingbamton, N. T.
8 4,000 6,500 Bingbamton, K Y.
11 3,000 8,500 Binghamton, IST. Y.
21 1,100 4,700 Binghamton, JSF. Y.
?3 3,300 17,000 Binghamton, IST. Y.
27 10,000 18,000 Bingbamton, N. Y.
32 3,3'00 8,000 Binghamton, N. Y.
33 5,000 7,000 Binghamton, IST. Y.
42 8,000 12,000 Binf^bamton, K Y.
47 4,500 11,000 Binghamton, K Y.
55 2,000 • 5,000 Canastota, K Y.
58 2,000 3,500 Bingbamton, 'N. Y.
59 9,000 15,000 Binghamton, If. Y.
60 5,000 10,000 Binghamton, jST. Y.
61 5,000 9,500 Binghamton, K Y.
64 800 3,200 Bingbamton, N. Y.
69 1,000 1,500 Farm, McDonougb, KY.
75 6'000 11,500 Oxford, IST. Y.
77 1,500 4,500 Sidney, K Y.
79 800 1,500 Earlville, IST. Y.
84 750 1,200 Norwich, 'N. Y.
86 1,300 3,000 Farm, Greene, N. Y.
91 1,400 3,000 Farm, Smyrna, IST. Y.
9g 600 1,500 Farm, Si/iyrna, N. Y,
917 2 500 6,000 South Otselic, K Y.
100 1^400 2,800 Preston, K Y.
103 2'l00 5,000 Smyrna, IST. Y.
106 3,600 5,400 Binghamton, IST. Y.
lOr 2,000 4,000 Oxford, N. Y.
Ill 6,000 12,000 Oxford, K Y.
113 2^000 4,000 Oxford, N. Y.
1358
Legislative Insurance Investigation.
Book
value.
No.
VaJue.
Location.
114
20,000
40,000
Binghamton, E. Y.
115
6,000
10,500
Binghamton, N. Y.
116
3,000
5,000
TownofUnion, ]Sr. Y.
118
4,000
10,000
Oxford, N. Y,
119
2,000
9,000
Atlanta, Ga.
120
1,000
Additional to 'No.
, 60.
122
3,000
5,000
Binghamton, IST. Y.
124
1,000
5,000
Gou-v\3rneur, X. Y.
125
43,125
70,000
Binghamton, X. Y.
126
2,000
5,000
Elmira, IS'. Y.
128
3,000
6,000
Binghamton, IST. Y.
129
3,500
6,000
Oxford, N. Y.
130
1,550
3,500
Oxford, N. Y.
132
5,500
8,500
Binghamton, N. Y.
134
8,000
30,000
Binghamton, N. Y.
136
4,500
10,000
Union, K Y.
137
7,500
13,500
Leatershire, N. Y.
138
6,800
12,000
Lestershire, N. Y.
139
2,000
6,000
Chenango Forks, IST. Y.
140
6,000
10,000
Binghamton, IST. Y.
141
3,600
6,500
Binghamton, N._ Y.
142
12,000
20,000
Binghamton, IST. Y,
143
6,000
13,000
Binghamton, N. Y.
146
7,900
14,000
Syracuse, N. Y.
147
2,000
3,500
Binghamton, N. Y.
148
1,600
10,000
Binghamton, N. Y.
$289,225
Exhibits — Part III.
1350
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1361
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1362
Legislative Insurance Investigation.
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1363
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1364
Legislative Insurance Investigation.
Exhibit
SALARIES OF EXECUTIVE OFFICERS FROM
Year. John F. Dryden. Salary.
Leslie D. Ward.
Salary.
1875
1876
1877
1878
1879
1880
1881
1882
1883
1884
1885
1886
1887
1888
1889
Oct. 13th, Secretary,
per month, to Feb.,
1876
Secretary
May 25th, President.
President
and an amount equal
to 2^ of cash sav-
ings of 1884. Total
payment not to ex-
ceed
President
and 5% cash savings.
No limit.
President
and 5^ cash savings.
President
and S% cash savings.
President
and 5% cash savings.
Changed Oct. 8th to
to flat salary ....
President
$100
$1,800
1,800
1,800
3,250
5,000
5,000
5,000
5,00P
5,000
5,000
10,000
5,000
5,000
5,000
5,000
20,000
20,000
Medical Director
1st V. P,
& Med. Dir.
and 3^ cash savings.
1st V. P. & Med. Dir
and 3% cash savings
1st V. P. & Med. Dir
and 3^ cash savings
1st V. P: & Med. Dir
and 3^ cash savings changed
to flat salary
1st V. P. & Med. Dir
None.
$1,000
2,000
2,000
2,000
2,000
4,000
4,000
4,000
4,000
15,000
15,000
1890 President $20,000 1st V. P. & Med. Dir.
1891
1892
1893
1894
1895
1890
1897
1898
1899
1900
1901
1902
1903
1904
1905
30
30
50
50
50
50
50
50
05
65
05
05
65
65
65
000
000
000
000
,000
,000
000
,000
000
,000
000
000
,000
,000
,000
15,000
25,000
25,000
4,500
45,000
45,000-
45,000
45,000
45,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
Exhibits — Part III.
1365
ORGANIZATION OF THE COMPANY.
Year. Edgar B. Ward. Salary. Forrest F. Dryden.
Salary.
1875
1876
Attorney
None.
1877
((
t(
1S78
((
tt
1879
((
11
1880
1881
Counsel
(I
$400
400
1882
«
400
1883
<c
400
1884
ft
400
Changed Apr. lith.
15,000
Appt. Clerk at salary of $3
per week on Feb. 20, 1883,
and remained in office until
June 13, 1885. Salary at
time of leaving
$10
1885
5,000
1886
1887
1888
1889
5,000
6,000
8,000
1890 Counsel 10,000
1891
1892 "
1893 2d V. P.
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
1905
& Counsel.
15,000
15,000
25,000
25,000
25,000
25,000
25,000
25,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
6,000 Appt. Inspector Oct. 4, 1888.
Increased Jan. 7, 1889, to. . . .
Acting Supt., Elizabeth, Jan.
28
Supt. April 1, 1889, $25, Inc.
Aug. 5th
Asst. Secretary
Oct. 7th, Secretary
Secretary
3d Vice-President
12
weekly
15
30
2,500
2,500
5,000
5,000
10,000
10,000
10,000
10,000
10,000
10,000
20,000
20,000
20,000
20,000
20,000
25,000
30,000
1366
Legislative Insurance Investigation,
V5
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13(;7
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!13G8 Legislative Insurance Investigation.
Exhibit No. 692.
Keceived in
1903 1904
Total loading on first three policy
years' premiums $6,410,444 $7,418,396
Loading on first policy year's prem-
iums 2,642,383 2,820,579
Total first year's expenses : 1903 1904
1. Commissions $3,683,297 $3,894,824
2. Agency salaries, supervision, etc. . 1,074,626 1,112,814
3. Medical fees 584,019 616,836
4. Miscellaneous agency expenses .... '118,082 143,985
5. Home Office expenses 591,415 600,271
6. Advertising 167,879 219,233
7. Taxes 148,862 156,896.
8. Miscellaneous general expenses . . . 113,740 171,989
Total first year expenses $6,481,920 $6,916,848
Total expected losses on policies less
than one year old $1,147,975 $1,224,080
Total actual losses on policies less
. than one year old '. 1,119,465 953,301
Exhibits — Part 1 [I.
13C0
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1370
Legislative Insurance hivestigaiion.
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Exhibits — Part III. 1371
Exhibit No. 737.
PUEE LIFE mSUKANCE AT COST.
EMPIEE
LIFE
INSUEANCE
COMPANY.
Incorporated 1881 Under New York Laws
Home Offices:
200 Broadway, New York.
BANKS OF DEPOSIT:
Washington Trust Company,
The Nassau Bank,
of New York City.
THE EMPIEE LIFE INSUEANOE 00.
Furnishes the
BEST LIFE INSUEANOE.
WHY?
BECAUSE it is pure Life Insurance without strings or mislead-
ing technicalities, or doubtfulio provisions.
BECAUSE it is pure Life Insurance at actual cost — no 20 to 30
per cent, added for asset showing.
BECAUSE it offers advantages after 5 and 15 years rarely found
in other companies.
BECAUSE — it embraces on the same table of rates both sexes
provided they are of first class physical health.
13Y2 Legislative Insurance Investigation.
Home Office, 200 Broadway, N. T.
EMPIKE LIFE INSUKANOE 00.
HOME OFFICES
Hegeman Building, 200 Broadway, New York.
A SOUISTD, PKOGKESSIVE, NATURAL
PREMIUM COMPANY.
ISSUES SOUND AND PUEE LIFE INSURANCE, at cost.
DIVIDENDS AFTER FIVE YEARS AND each year there-
after to reduce cost.
PAID UP POLICY, OR SURRENDER VALUE after Fifteen
years.
AN INCREASING GUARANTY FUND with a decreasing
cost after Five years.
UNDER THE PLAN AND SYSTEM adopted by the
Empire L^e Insurance Company, the cost to each Policy
Holder is based upon his age when joining the Company,
with a sufficient amount in excess of same added thereto,
for Reserve, which will return in dividends, after five years,
a sum sufficient to allow the Company to credit on each
policy, an amount equal to, and probably in excess of, what
is required to protect the Company from the increased mor-
tality risk of each member as he grows older, without inflict-
ing upon the members or policy holders, any danger of an
increase of rates at a time when they probably can last
afford to pay same. In other words, it is estimated that the
cost to every policy holder will be materially decreased
after five years. The principal of said Reserve Fund is
used after fifteen years to provide for either paid up In-
surance or cash surrender value.
A WISE PROVISION in the interest of the Policy holder,
wherein they can see "daylight ahead," thus doing sway
with the oft-repeated assertion that one has to "Die to Win,"
as all members or Policy Holders participate in the profits
of the Company while living.
Exhibits — Part III. 1373
THE EMPIKE LIFE mSUKANOE 00.
Has Paid Claims Agoeegatinq Ovee
$1,000,000.00
TO THE Widows and Oeppians of
Deceased Policy Holdees.
A LOW MOETALITY MAKES CHEAP InSUEANCE.
Rigid inquisitorial Medical Examinations hy first class phy-
sicians only J insures a low mortality.
Policy by its terms becomes incontestable and indisputable after
five years, except for fraud, misstatement of age, or non-payment
of premiums.
We charge the lowest premium consistent with safety during
the productive period of life.
Our policies are so worded that the assured, if he attains his
expectations of life (when old, and possibly poor, and a burden to
his friends), may stop paying premiums and receive paid-up in-
surance for the full amount of his Policy, or one-half or more of
this amount IN OASH.
You know just what you are to pay and when it becomes due.
The maximum cost to the member in any year is shown by the
table.
Premiums may be paid annually or semi-annvally in advance
by deposit on account, thereby reducing liability of lapsing policy
through oversight or absence.
Ode Teems commend themselves, especially to men of moder-
ate means, for family protection, or for co-partnership insurance,
and to rich men for an investment to peoteot and ingeease the
estate.
Our Eate Table is carefully graduated so that each member
pays according to his age, and no more. The man of 30 enters
just as equitably as the man of 60. Every policy holder stands
upon an exact equality.
Policies maybe either $1,000, $2,000, $3,000, $4,000 or $5,000,
and to applicants whose family history or for some other reason
does not warrant the issuing of a first-class or full benefit policy,
to such a maturing certificate may be issued, the amount and form
of which to be determined by the executive committee.
1374 Legislative Insurance Investigation.
THE EMPIEE LIFE INSUKANCE 00.
(Incoepoeatbd New Yoek, 1881.)
Is a Company of members imited to furnish each other with
Life Insurance for their families, to protect and increase the estate
of deceased members, and for the securing of creditors.
It provides Safe Insurance at the Lowest Cost Consistent with
the Greatest Security, upon a purely Mutual plan.
It is managed and controlled by its members or their duly au-
thorized representatives.
It furnishes Life Insurance at cost, with a sufficient Reserve
Eund to guarantee the payment of its claims.
No personal liability is incurred by becoming a member of this
Company. The continuaiice of a Policy and the payments are
voluntary at the option of the owner.
A member can terminate his Policy at any time by omitting to
pay his premiums as they accrue, and no further liahility is in-
curred by him, or by the Company to him. A member who al-
lows his policy to lajose may have the same reinstated at any
time within one year by giving evidence satisfactory to the Com-
pany of good health, and upon payment of all premiums in ar-
rears.
Benefits payable under the policies issued by this Company are
exempt by the laws of JSTew York from the debts of the insured,
also from the debts of the widow.
Peemium Calls.
Premium calls will be made every two months and must be paid '
within 30 days from date of notice or Policy will expire.
Members can, however, make regular annual or semi-annual
payments, the amounts charged and received being equitably ad-
justed to conform to the regular bi-monthly tables.
Medical Examination Fees.
The Company will pay the medical examination fee in all cases
when the premiums are paid annually or semi-annually, but, when
paid bi-monthly or quarterly and the amount applied for is less
than $2,000, $2.00 must be added to the first bi-monthly or
quarterly payment.
Exhibits — Part III. ISTC
CUREENT PEEMIUM RATES FOE EACH $1,000.
The first premium must be paid at time of making application
or on delivery of policy.
Age nearest
bi rthday.
Annually.
Semi-annually.
Quarterly.
Bl-monthly
18—25
16.41
8.53
4.31
2.92
26
1,6.76
8.72
4.40
2.95
27
17,41
8.91
4.50
2.98
28
17.58
9.14
4.62
3.05
29
18,06
9.39
4.74
3.16
30
18.53
9.63
4.86
3.23
31
19.03
9.89
5.00
3.33
32
19.53
10.16
5.13
3.42
38
20.09
10.45
5.27
3.52
34
20.70
10.76
5.43
3.63
35
21.32
11.08
5.60
3.74
36
22.01
11.45
6.78
3.85
37
22.78
11.85
5.98
3.97
38
23.58
12.26
6.19
4.10
39
24.38
12.68
6.40
4.25
40
25.30
13.16
6.64
4.42
41
26.27
13.66
6.90
4.55
42
27.26
14.18
7.16
4.77
43
28.27
14.70
7.42
4.9r>
44
29.41
15.29
7.72
5.15
45
30.65
15.94
8.04
5.35
46
32.03
16.65
8.41
5.60
47
33.44
17.39
8.78
5.85
48
35.04
18.22
9.20
6.15
49
36.85
19.16
9.67
6.45
50
38.76
20.16
10.17
6.78
51
40.80
21.22
10.71
7.15
52
43.00
22.36
11.29
7.50
53
45.35
23.58
11.90
7.95
54
47.90
24.90
,12.58
8.38
55
50.66
. 26.34
13.30
8.85
56
53.64
27.89
14.08
9.40
57
56.88
29.58
14.93
9,95
58
60.38
31.40
15.85
10.55
59
64.41
33.49
16.91
11.30
60
70.53
36.68
18.52
12.25
1376 Legislative Insurance Investigation.
These rates being in conformity with the standard mortality
tables and the experience of the oldest companies, are regarded
as undoubtedly ample to provide for the increasing cost due to
advancing age of the insured, thus rendering payments uniform
throughout the life of the policy.
EESEKVE OR EMBEGENCY FUND.
Dividends After Five Years.
Twenty per cent, of the amount received from mortuary pay-
ments may be invested or deposited for the benefit of the con-
tributors, from which Reserve or Emergency Fund there may
be a dividend on the fifth and on each year thereafter, esti-
mated to equal one-half the mortuary payments.
Cash Surrender Value.
Fifteen years from the date of the Policy, the member has the
privilege (having given the Company one year's previous notice
of his intention so to do), of surrendering his policy and receiving
in cash his share of the Reserve Fund accumulations.
Thus, he will undoubtedly have his insurance for fifteen years
at less than half the cost charged by level premium companies,
and receive back a very large proportion in cash of the com-
paratively small amount paid out by him for the insurance during
the said fifteen years, which will operate to still further reduce the
cost of the insurance he has had. In other \Yords, he will have
been protected for fifteen years for a small outlay, and the profits
derived from the members of his class who have died or discon-
tinued their policies will provide a sum which, under the system
of the Company, will at the fiftosnth anniversary of his policy,
(if he desires to avail himself of this provision), enable him to
drop his insurance and receive back a large proportion of the
money he has paid.
Paid Up Insdeance.
Should the member not avail himself of the privilege of sur-
rendering his policy and withdrawing his accumulations in cash
as above described, a reckoning may be made fifteen years from
the date of the Policy of the amount contributed to the Reserve
Fund by all the members who entered the Company the same
year. The entire amount apportioned to. him will be placed to his
credit and used in the future payments of premiums.
Exhibits — Part III. 137Y
Thus a member of this Company will not only undoubtedly
have had his insurance for fifteen years for less than half the rates
charged by level premium companies, but after fifteen years
such a sum will have passed to his credit as will provide for the
future payment of his policy for many years, or for his full ex-
pectation of life.
TEN EEASONS
Why you should insure in the Empiee Life in pkefekence
TO OTHEK Companies.
Reason 1.
1. The "Empire Life" is purely mutual — ^no stockhold-
ers' rich dividends — all profits accruing year by year are
credited to the policy holders.
Keason 2.
Its expenses of management are reduced to the lowest
possible point, consistent with a just remuneration to offi-
cers and stafF for services.
Keason 3.
The Company accepts only selected risks — ^thus obtaining
a, low mortality, which means cheap, but safe, insurance —
a feature of great importance.
Eeason 4.
The Company's policy becomes incontestable and indis-
putable, except for fraud, etc., and with its equity system
participates in profits.
Keason 5.
Premiums may be paid bi-monthly, quarterly, semi-
annually or annually at the option of the policy-holder.
Eeason 6.
Paid up insurance or Cash Surrender value after fifteen
years as members may decide.
Eeason 1.
Net premiimi rates only are charged (see tables), no ad-
mission feeS' — ^no dues or assessments — all covered in the
premium.
Eeason 8.
All claims are paid promptly. During the short existence
of the Company, it has paid death claims aggregating over
$1,000,000.
44
1378 Legislative Insurance Investigation.
Keason 9.
The Company has the full approval of the Insurance De-
partment of New York State under which laws it is in-
corporated.
Keason 10.
There is a saving of from 20 to 30 per cent, per annum
in the Company's cost over the old line level premium plan.
FACTS
WoETH Reading by thosi; who hesitate abotjt JbTJriiJG the
EMPIRE LIFE INSURANCE CO.
I. You insure your property against fire for three-fourthS of
its value — Why Wot insure yotir life on the same plan ? A good
many are now doing this. In all cases where men consider it,
they conclude that they haven't enough insurance.
II. Some people say that life insurance is gambling; th-at is a
queer notion. The fact is, that the man who doesn't insure his
life does the gambling; he proposes to take all the risk himself,
but as a matter of fact he takes no risk at all; it is his wife and
children that take the risk, for should he die, the income ceases
and they are the sufferers.
III. " It is meanly selfish for you to be so absorbed in the
heaven to which you are going that you forget what is to become
of your wife and children after you go." This is pointed but aw-
fully true.
IV. Insurance agents are sometimes considered unpleasantly
persistent in presenting their business. Possibly they are. But
if they did not urge its importance how many men would now be
carrying insurance- Inertia must be met a'nd conquferi^d by force,
always.
V. Of all the excuses assigned for not making immediate ap-
plication for insurancfe, it is surprising how small a pToportion
will stand before the court of reason. Most men would condemn
their own excuses if presented under cover of other men's names.
Insure to-day in the Empire Life Insurance Company.
VI. When money comes slowly thei'e is a tendency tx) econo-
mize by lapsing one's insurance policy. This is very unwise.
However, the premiums in the Empire Life Insurance Company
are so reasonable that little occasion exists for lapses.
ExUiUs — Pari III. 1379
VJi. "A Life Insurance Company must be compensated each
year for tho insurance furnished, for expenses of management,
and for possible adverse contingencies. Beyond this a provision
of any kind is not necessary."
SOME KEFLECTIONS FOR YOUR OONSIDERATIOl^.
You Say,
" I'll run the risk." Think a moment ! If you die you
■will be gone and it will be your family that runs the risk.
Justice to your wife and children means protection for your
widow and orphans.
What Will be Left
in case of your death ? If you have mortgages or debts they
will survive you, and your widow and orphaned children will
be left to battle with them. If you secure a certificate in the
Empire Life, that will be left also and it might protect them
from poverty.
If Your Income were to Stop
entirely, could you support your family and furnish them
with the neccessaries of life? If you could not do it, how could
your widow do it if you should be removed by death ? Pro-
tection on your life should be as much a part of your monthly
expenses as your grocer's bill. The one provides against
hunger now, the other provides against it for your family
when you are gone.
BRIEFLETS.
" In the midst of life we are in death," and in need of insur-
ance.
" He died in the prime of life," and his entire income died
with him.
" He leaves a widow and several children to mourn his loss."
The loss is total; there was no insurance.
" The family has the sympathy of the entire community." The
ebb and flow of sympathy, at and after a funeral are well known.
" He was a kind, thoughtful husband," and left his widow with-
out a dollar of insurance protection.
" He was a loving, indulgent father," whose orphans his widow
will have a hard struggle in supporting.
" He was a careful, upright business man ; " in the absence of
insurance his elegant home will just about cover his debts and the
mortgage.
1380 Legislative Insurance Investigation.
" He was very determined and self-reliant," absolutely refusing
to talk or to be talked to on life insurance. He could invest his
ovi^n money.
" The firm of Smith, Debt & Co., is this day dissolved." The
fact is, the senior member died uninsured, and the junior member
therefore became sole proprietor.
EMPIKE LIEE INSUEANCE CO.
Incorporated 1881 Under New York Laws.
President:
EVELYN L. BISSELL, M.D.
Secretary and Manager:
STAGEY WILSON.
Treasurer :
G. W. GODWAED.
Directors:
T. M. NICHOLS,
British and Foreign Insurance Co., Cotton Ex., N. Y.
A. JUDSON STONE,
Dunham, Buckley & Co., 340 Broadway, N. Y.
CHAS. MOETIMEE,
Broker, N. Y.
E. L. BISSELL, M.D.,
Late Surgeon-General, New Haven, Conn.
STACEY "WILSON,
Insurance, 220 Broadway, New York.
F. DELANO,
253 Broadway, New York.
Medical Director:
J. C. BEYAN, M.D.
HOME OFFICE
200 Broadway, New York.
^ Agent.
ExhibiU — Fart III. 1381
ExMbit No. 747.
K Y., Apl. 21, 1904.
Mr. Henry F. Bell, Pt.,
Citizens' Trust Cc^
Palerson, N. J.
Dear Sir:
We have your favor of April 20tli. We enclose you herewitli
our cheek for ten thousand dollars to be deposited for our £C-
count in the interest department and to draw three and one-half
per cent, interest and our check for $5,000, to be dejiosited for
our account in your business department, this account not to draw
interest. We also enclose herewith signature cards. All checks
are drawn by the treasurer and countersigned by the president.
Xours very truly,
E. P. TOWNSLEY, President.
Enc
Ezbibit No. 748.
New York, April 21, 1904.
Mr. Henry F. Bell, Pt.,
Citizens Trust Company,
Paterson, N. J.
Dear Sir:
Herewith enclosed I send you demand collateral note of Eugen^
Van Schaick and myself for $10,000, also certificate ISTo. 1099,
ISo. 1113 and 1136, aggregating 500 shares of the capital stock
of the Life Association of America and blank powers of attorney
to accompany same ajid we also send you the check of the Life
Association of America for $10,000, drawn on the Interest De-
partment. You are authorized to fill in the blank space for the
book number. This check is to be held by you in escrow and be
used by you in the payment of our loan when called.
Yours very truly,
H. P. TOWWSLEY, Prewdent,
Enclosure.
1382
Legislative Insurance limestigation.
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Exhibits — Part III. l393
Exhibit Xo. 985.
CASH BALANCES IN BANKS AND TKUST COMPANIES
AT THE CLOSING OF BUSINESS ON JANUAKY
30, 1904.
Per cent
National Bank of Commerce in N. Y $9,387,723.40 2
Mercantile Trust Co 8,989,879.57 2
The Equitable Trust Co. of N. Y 13,372,832.83 2
Fifth Avenue Trust Co 500,000.00 2
linickerbocker Trust Co , 162,101.12 2
Union Exchange Bank, N. Y. 25,000.00 2
National Bank of Kedemption, Boston 83,633.98 2
New England National Bank, Boston 150,424.79 2
First National Bank, Denver 675,411.43 3
The Franklin Nat'l Bank, Phila., Pa. 501,727.23 2
Commercial Trust Co., Phila., Pa. 2,435,629.46 3
The Union Trust Co. of Pittsburg 532,401.75 3
FideKty Trust Co., Newark, N. J. 1,605,192.78 2
Union National Bank of Newark, N. J 200,995.24 2
Bank of Montreal, Montreal, Canada 63,052.69 2
Mellon Nat'l Bank, Pittsburg 250,000.00 3
First National Bank of Chicago 537,444.76 2
Hibemia Bank & Trust Co. of New Orleans. 198,111.85 2
Nat'l Bank of Commerce, St. Louis 5.03 2
The Equitable Trust Co., Annuity Acct 6,421.28 2
$39,677,989.19
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OF BUSINESS ON FEBKUAKY
29, 1904.
Percent
National Bank of Commerce in N. Y 8,511,523.93 2
Mercantile Trust Co 7,361,228.24 2
The Equitable Trust Co. of N. Y. 12,512,663.67 2
Fifth Avenue Trust Co 500,124.39 2
Union Exchange Bank, N. Y 25,000.00 2
National Bank of Kedemption, Boston 112,262.24 2
New England National Bank, Boston 141,733.43 2
1^^ Legislative Insurance Investigation.
Per cent.
rirst National Bank, Denver. $702,902.16 3
The Franklin Nat'l Bank, Phila., Pa 502,455.97 2
Commercial Trust Co., Phila., Pa 2,431,379.75 3
The Union Trust Co. of Pittsburg 532,659.97 3
Fidelity Trust Co., ISTewark, N. J 1,607,689.24 2
Union National Bank of Newark, N. J 200,222.40 2
Bank of Montreal, Montreal, Canada 57,172.82 2
Mellon ^Kat'l Bank of Pittsburg 250,'GOO.OO 2
First National Bank of Chicago 529,050.65 2
Hibernia Bank & Trust Co. of New Orleans 188,604.30 2
The Equitable Trust Co., Annuity Acct. . . 12,070.47 2
$36,178,783.63
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OF BUSINESS ON MAECH 31,
i y , 1904.
Per cent.
National Bank of Commerce in N. Y $«,'640,4OO.1O 2
Mercantile Trust Co , 7,714,032.78 2
The Equitable Trust Co. of N. T ; . . 13,49'8,357.90 2
Fifth Avenue Trust Co 509,66'8.25 2
Union Exchange Bank, N. Y 25,000.00 2
National Bank of Eedemption, Boston 82,85'6.08 2
New England National Bank, Boston 145,886.66 2
Fii-st National Biank, Denver 719,917.28 3
The FranMin Nat'l Bank, Phila., Pa 503,309.36 2
Commercial Trust Co., Phila., Pa 2,451,256.81 3
The Union Trust Co. of Pittsburg 516,811.21 3
Fidelity Trust Co., Newark, N. J 1,605,874j67 2
Union National Bank, of NewOTk, N. J 199,722.73 2
Bank of Montreal, Montreal, Canada 69,124.94 2
Mellon Nat'l Bank, Pittsburg 250,000.00 3
First National Bank of Chicago 482,352.63 2
Hibernia Bank & Trust Co. of New Orleans 241,775.50 2
Th§ Equitable Triigt Co., Annuity Acct.... 5,021.3 2
$37,661,367.93
Exhibits — PaH III. 1^95
CASH BALANCES m BANKS AND TEUST COMPANIES
AT THE CLOSING OF BUSINESS ON APEIL 30,
1904.
Per cent.
National Bank of Commerce in N. Y $8,998,191.97 2
Mercantile Trust Co 8,800,381.25 2
Tlie Equitable Trust Co. of N. Y 13,718,986.51 2
Fifth Avenue Trust Co 504,791.80 2
Union Exchange Bank, N. Y 25,000.00 2
National Bank of Eedemption, Boston 83,474.03 2
New England National Bank, Boston 150,142.79 2
Eirst National Bank, Denver 700,761.17 3
The FrankUn Nat'l. Bank, Phila., Pa 504,109.12 2
Commercial Trust Co., Phila., Pa 2,477,545.04 3
The Union Trust Co. of Pittsburg 525,091.03 3
EideUty Trust Co., Newark, N. J , 1,607^242.50 2
Union National Bank of Newark, N. J 199,071.39 2
Bank of Montreal, Montreal, Canada 67,101.69 2
Mellon Nat'l Bank, Pittsburg 250,000.00 3
First National Bank of Chicago 527,815.85 2
Hibernia Bank & Trust Co. of New Orleans 224,688.46 2
Nat'l Bank of Commerce, St. Louis 7.19 2
The Equitable Trust Co., Annuity Acct 6,863.29 2
$39,371,265.08
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OF BUSINESS ON MAY 31, 1904.
Per cent.
National Bank of Commerce in N. Y $9,337,560.92 .2
Mercantile Trust Co 8,513,691.11 2
The Equitable Trust Co. of N. Y 13,579,750.10 2
Fifth Avenue Trust Co 501,109.65 2
Union Exchange Bank, N. Y 25,000.00 2
First National Bank of Boston 67,275.18 2
New England National Bank, Boston 149,251.68 2
First National Bank, Denver 713,686.00 3
The Franklin Nat'l Bank, Phila., Pa 504,965.40 2
Gpippiercia.1 Trust Co., Phii^., Pji, ,,,,., , 2,421,152.21 3
1396 Legislative Insurance Investigation.
Per cent.
The Union Trust Oo. of Pittsburg $508,362.36 3
FideHty Trust Co., Newark, N. J 1,598,462.73 2
Union ISTational Bank of Newark, N. J 198,378.66 2
Bank of Montreal, Montreal, Canada 53,469.81 2
Mellon Nat'l Bank, Pittsburg ' 250,000.00 3
First National Bank of Chicago 558,500.41 2
Hibernia Bank & Trust Co. of New Orleans 237,570.77 2
Nat'l Bank of Commerce, St. Loiiis 3,310.73 2
The Equitable Trust Co., Annuity Acct 4,071.69 2
$39,225,569.42
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OF BUSINESS ON JUNE 30, 1904.
Per cent
National Bank of Commerce in N. Y $9,860,490.60 2
Mercantile Trust Co. -. 9,592,824.22 2
The Equitable Trust Co. of N. Y 11,993,546.44 2
Fifth Avenue Trust Co 601,488.93 2
Union Exchange Bank, N. Y 25,000.00 2
First National Bank of Boston 84,101.98 2
New England National Bank, Boston 151,344.24 2
First National Bank, Denver 751,764.85 3
The Franklin National Bank, Phila., Pa 505,795.37 2
Commercial Trust Co. Phila., Pa 2,449,088.70 3
The Union Trust Co. of Pittsburg. 458,976.97 3
FideUty Trust Co., Newark, N. J. 1,591,187.75 2
Union National Bank of Newark, N. J. .■ . . 197,866.71 2
Bank of Montreal, Montreal, Canada 65,897.54 2
Mellon Nat'l Bank of Pittsburg. . ■. 250,000.00 3
First National Bank of Chicago 514,686.66 2
Hibernia Bank & Trust Co. of New Orleans 236,487.09 2
Nat'l Bank of Commerce, St. Louis 574.88 2
The Equitable Trust Co., Annuity Acct. . . 7,479.76 2
$39,238,602.69
Exhibits — hart III. 1397
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OE BUSINESS ON JULY 30, 1904.
Per cent
National Bank of Commerce in N. Y $7,898,809.35 2
Mercantile Trust Co 8,960,888.51 2
The Equitable Trust Co. of N. Y 9,998,854.06 2
Eifth Avenue Trust Co 502,274.52 2
Union Exchange Bank, N. Y 25,000.00 2
First National Bank of Boston 90,766.81 2
New England National Bank, Boston 154,775.64 2
First National Bank, Denver 766,376.21 3
The Franklin Nat'l Bank, Phila., Pa ' 506,^55.37 2
Commercial Trust Co., Phila., Pa. . 2,445,959.53 3 .
The Union Trust Co. of Pittsburg 504,689.03 3
Fidelity Trust Co. Newark, N. J 1,593,811.56 2
Union National Bank of Newark, N. J 196,094.10 2
Bank of Montreal, Montreal, Canada 79,811.95 2
Mellon Nat'l Bank, Pittsburg -. . 250,000.00 3
First National Bank of- Chicago 529,978.74 2
Hibernia Bank & Trust Co. of New Orleans, 229,951.21 2
National Bank of Commerce, St. Louis 3,862.20 2
The Equitable Trust Co., Annuity Acct. . . 1,645.13 2
:, $34,740,203.92
CASH BALANCES IN BANKS AND TRUST COMPANIES
AT THE CLOSING OF BUSINESS ON AUGUST 31,
1904.
Per cent.
National Bank of Commerce in N. Y $7,783,841.15 2
Mercantile Trust Co , 8,813,480.40 2
The Equitable Trust Co. of N. Y 9,420,451.77 2
Fifth Avenue Trust Co , ,. . 500,545.91 2
Union Exchange Bank, N. Y 25,000.00 2
First National Bank of Boston ,. 101,441.92 2
New England National Bank, Boston , 153,184.48 2
First National Bank, Denver Y86,956.53 3
The Franklin Nat'l Bank, Phila., Pa 607,488.14 2
Commercial Trust Co., Phila., Pa 2,440,972.17 3
The Union Trust Co. of Pittsburg 502,877.50 3
Fidelity Trust Co., Newark, N. J 1,575,095.82 2
1398 Legislative Insurance Investigation.
Per cent,
Union National Bank of ISTewark, N. J $196,094.40 2
Bank of Montreal, Montreal, Canada 86,1^4.68 2
Mellon ISFat'l Bank, Pittsburg 250,000.00 3
First National Bank of Ckiteago 543,887.58 2
Hibernia Bank & Trust Co. of New Orleans 210,113.14 2
Nat'l Bank of Commerce, St. Louis 3,124.16 2
The Equitable Trust Co., Annuity Acct. . . 7,383.02 2
$33,908,132.47
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OF BUSINESS ON SEPTEMBEE
30, 1904.
Per cent.
National Bank of Coinmerce in N. Y $8,828,046.40 • 2
Mercantile Trust Co 8,439,037.14 2
The Equitable Trust Co. of N. Y 9,441,080.83 2
Fifth Avenue Trust Co 500,117.78 2
Union Exchange Bank, N. Y. . . 25,000.00 2
First National Bank of Boston 105,172.54 • 2
New England National Bank, Boston 152,490.49 2
First National Bank, Denver 762,523.97 3
The Franklin Nat'l Bank, Phila., Pa 508,350.03 2
Commercial Trust Co., Phila., Pa 2,434,796.62 3
The Union Trust Co. of Pittsburg. . ., 463,161.86 3
Fidelity Trust Co., Newark, N. J 1,572,080.61 2
Union National Bank of Newark, N. J 196,094.10 2
Bank of Montreal, Montreal, Canada 80,359.09 2
Mellon Nat'l Bank, Pittsburg 250,000.00 3
First National Bank of Chicago 515,012.66 2
Hibernia Bank & Trust Co. of New Orleans 252,934.31 2
Nat'l Bank of Commerce, St. Louis 3,884.46 2
The Equitable Trust Co., Annuity Acct 27,783.77 2
$33,562,926.16
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OF BUSINESS ON OOTOBEE 81,
1904.
Per cent
National Bank of Commerce in N. Y $5,772,863.20 2
MercaJitile Trust Co 7,761,282.14 2
Exhibits— 'Part Hi. 13^9
Per cent.
The Equitable Ttust Co., of K Y $10,255,230.00 2
Fifth Avenue Trust Co 503,925.49 2
Union Exchange Bank, IST. Y 25,000.00 2
First National Bank of Boston 86,2'72.6T 2
New England National Bank, Boston . 156,488.17 2
First National Bank, Denver 786,575.82 3
The Franklin National Bank, Phila., Pa. . . 509,213.44 2
Commercial Trust Co., Phila., Pa 2,477,241.95 3
The Union Trust Co. of Pittsburg 462,753.48 3
Fidelity Trust Co., Newark, N. J. 1,567,335.52 2
Union National Bank of Newark, N. J 197,086.34 2
Bank of Montreal, Montreal, Canada 85,474.86 2
Mellon Nat'l Bank, Pittsburg 250,000.00 3
First National Bank of Chicago 546,553.87 2
Hiberhia Bank & Trust Co. of New Orleans 241,658.67 2
Nat'l Bank of Commerce, St. Louis 5,961.04 2
The Equitable Trust Co., Annuity Acct. . . 2,280.84 2
$31,693,197.50
CASH BALANCES IN BANKS AND TKUST COMPANIES
AT THE CLOSING OF BUSINESS ON NOVEMBEE
30, 1904.
Per cent
National Bank of Commerce in N. Y $6,670,249.11 2
Mercantile Trust Co 7,829,584.95 2
Equitable Trust Co 11,285,440.06 2
Fifth Avenue Trust Co 504,146.38 2
Union. Exehaiige Bank 25,000.00 2
First National Bank, Boston 88,715.55 2
New England National Bank, Boston 156,600.22 2
First National Bank, Denver 762,129.62 3
Franklin Nat'l Bank, Phila 510,050.48 2
Commercial Trust Co., Phila 2,502,443.19 3
Union Trust Co., Pittsburg 551,238.56 3
Fidelity Trust Co., Newark 1,567,316.66 2
Union Nat'l Bank, Newark 192,962.90 2
Bank of Montreal, Montreal, Canada 85,844.04 2
Mellon Nat'l Bank, Pittsburg 250,000.00 2
First Nat'l Bank, Chicago 525,342.56 2
1400 Legislative Insurance Investigation.
Per cent.
Hibernia Bank & Trust Co $230,452.85 2
National Bank of Commerce, St. Louis 607.00 2
Equitable Trust Co., Annuity Acct. ., 3,814.09 2
$33,741,938.12
CASH BALANCES IN BANKS AND TEUST COMPANIES
AT THE CLOSING OE BUSINESS ON DECEMBEK
31, 1904.
Per cent.
National Bank of Commerce in New York. $3,170,923.43 2
Mercantile Trust Company 5,015,950.95 2
Equitable Trust Co 5,392,679.19 2
Fifth Avenue Trust Co 755,673.71 2
Union Exchange Bank 25,000.00 2
First National Bank of Boston 113,278.57 2
New England National Bank, Boston 159,181.99 2
First National Bank, Denver 741,309.56 3
Franklin Natl. Bank, Phila 510,916.13 2
Commercial Trust Co., Phila 2,527,787.65 3
Union Trust Co., Pittsburg 528,084.85 3
Fidelity Trust Co., Newark 191,608.0^ .2
Union Natl. Bank, Newark 191,608.02 2
Bank of Montreal, Montreal, Canada 73,831.20 2
Mellon Natl. Bank, Pittsburg 250,000.00 3
First National Bank, Chicago 545,690.50 2
Hibernia Bank & Trust Co 254,241.38 2
Equitable Trust Co., Annuity Acct 23,833.27 2
$20,849,896.05
REPORT
OF THE
Joint Committee of the Senate and Assembly of the
State of New York, Appointed to Investigate the
Affairs of Life Insurance Companies.
CONTENTS.
Page_
Mutual Life Insurance Company 9
New York Life Insurance Company 38
Equitable Life Assurance Society 75
United States Life Insurance Company , 119
Manhattan life Insurance Company 134
Washington Life Insurance Company 129
Germania Life Insurance Company 136
Home Life Insurance Company 140
Bankers' Life Insurance Company 144
Provident Savings Life Assurance Society 150
Mutual Eeserve Life Insurance Company 161
Security Mutual Life Insurance Company. 185
Life Association of America 198
Life Insurance Club of New York , 206
Empire Life Insurance Company . . 208
Metropolitan Jjiie Insurance Company 209
Prudential Insurance Company of America 244
The Insurance Department 261
'Remedial Legislation : '
Organization of Life Insurance Corporations 274
Control of the rights of policy holders in the election of
directors 278
Eetirement of stock 288
Investments 289
Limitation of new business 297
Political contributions 300
Lobbying 301
Expenses 304
Valuation of policies 317
Rebates 318
G Contents to lieport.
Remedial Legislation — Continued. Page.
Surrender values 318
Ascertainment and distribution of surplus 319
Non-participating policies , 327
Eemedies of policy holders, or right to resort to the courts . . 328
Forms of policies 331
Publicity and State supervision 333
Penalties 835
REPORT OF THE COMMITTEE.
To the Senate and Assemily:
The Joint Committee of the Senate and Assembly, appointed pur-
suant to concurrent resolution adopted July 20, 1905, submits the
following report:
The resolution directed the Committee —
"to investigate and examine into the business and affairs of
life insurance companies doing business in the State of New
York, with reference to the investments of said companies, the
relation of the officers thereof to such investments, the relation
of such companies to subsidiary corporations, the government and
control of said companies, the contractual relations of said com-
panies to their policy holders, the cost of life insurance, the
expenses of said companies and any other phase of the life insur-
ance business deemed by the Committee to be proper, for the
purpose of drafting and reporting to the next session of the
Legislature such a revision of the laws regulating and relating
to life insurance in this State as said Committee may deem
proper."
The Committee organized on August 1, 1905, and later employed
James McKeen and Charles E. Hughes as counsel, Mathew C. Flem-
ing as assistant counsel. Miles M. Dawson as consulting actuary and
Marvin Scudder as financial statistician. A. B. Sackett, Henry C.
Lammert and George M. Shotwell were appointed official stenog-
raphers, but before entering on his duties Mr. Sackett died.
The Committee began its public hearings on September 6, 1905,
and closed them on December 30, 1905, holding during this period
fifty-seven sessions, at all of which, with a single exception when
there was an adjournment on account of the death of Honorable S.
Fred Nixon, Speaker of the Assembly, testimony was taken. Al-
though its wark was protracted and practically continuous, it was
found impossible to submit to thorough examination companies chart-
ered outside the State or to embrace within its investigation all classes
of domestic life insurance companies. For the most part the Com-
mittee was compelled to confine its attention to companies organized
Legislative Insurance Investigation.
within the State anil issuing policies iiiX)n a level premium basis, and
even in this class of companies such were the variety and complexity
of the subjects reqtiiring consideration that the examination of the
affairs of any one company could not be made exhaustive. But the
aim has been to make the investigation sufficiently thorough and
comprehensive to reveal the matters that are significant in govern-
ment and administratioH and to lay a sound basis for necessary
legislative reform. As the companies chartered by this State transact
so large a -part of the life insurance business of the country, there is
no reason to doubt that the measures found necessary for the adequate
protection of tlae policy holders of these companies are equally neces-
sary for the protection of policy holders in other companies and tliat
the suggested, legislation should extend to all companies doing business
within this jurisdiction. It may be added that, although an oppor-
tunity has not been afforded for a thorough examination of the trans-
actions of the companies of other States, information from them of
no little value has been received by the Committee in response to its
inquiries and forms a part of the record.
Although it has not been possible to examine fraternal organiza-
tions or a considerable number of assessment companies, the investiga-
tion of certain companies- now doing business upon a level premium
basis which started as assessment companies has thrown light upon
certain practices which should receive the attention of the Legislature.
In one instance a special examination was made of an assessment
company not to be regarded as typical but which indicates in a strik-
ing way possible results under the present law.
In a single instance only (with the exception of a brief examina-
tion as to the organization and proxy system of certain companies)
the Committee departed from the policy of limiting its investigation
to companies organized under the laws of this State. Two com-
panies, one a New Jersey corporation and the other a New York
corporation, transact over four-fifths of that class of life insurance
business known as industrial insurance, and in order that a more
comprehensive view could be taken of this subject certain officers of
the New Jersey company were examined.
A complete digest of the testimony cannot be presented within the
limits of this report, and it will be impossible to present tlje : details
of any considerable portion of the evidence. But the Committee
deems it of importance that the salient facts bearing upon the dif-
ferent subjects of inquiry should be presented as concisely as possible,
and these will be stated as they appear in connection with the com-
panies which have been examined.
Seport of the CommiUee. 9
There are fifteen companies organized under the laws of this State
vhich are issuing level premium policies^ to wit:
Mutual Life Insurance Company,
New York Life Insurance Company,
Equitable Life Assurance Society,
United States Life Insurance Company,
Manhattan Life Insurance Company,
Wa;shington Life Insurance Company,
Grermania Life Insurance Company,
Home Life Insurance Conjpany,
Metropolitan Life Insurance Company.
Bainkers' Life Insurance Company,
Provident Savings Life Assurance Society,
Mutual Reserve Life Insurance Company,
Security Mutual Life Insurance Company,
Life Association of America.
Life Insurance Club of New York.
Of these the Bankers, Mutual Reserve, Security Mutual and Life
Association were organized as assessment companies, and subsequently
as legal reserve companies.
MUTUAL LIFE INSURANCE COMPANY.
The Mutual Life Insurance Company was created by special act,
chapter 246 of the Laws of 1842. On December 31, 1904, it had
outstanding 659,544 policies, representing $1,547,611,660 of insur-
ance. Its total admitted assets on that date were reported to be
$440,978,371.16, and its surplus over liabilities or "reserve for con-
tingent guarantee fund," exclusive of surplus to be apportioned in
1905, was stated to be $71,457,818.43.
It is a purely mutual company, and in theory is governed exclus-
ively by its policy holders. Those whom it insures compose its mem-
bership, and each member having at least $1,000 of insurance ii
entitled to vote for trustees. The Board of Trustees is composed of
thirty-six persons, divided into four equal classes. In practice ihe
policy holders have had little concern with the selection of trustees
or with the management of the company. Notices of election have
been published in New York City papers -^ but have not been mailed
to policy holders. There are probably between 400,000 and 500,000
policy holders entitled to vote for trustees, but for a long period
of years not more than 200 votes have been cast at any election.
10 Legislative Insurance Investigation.
The voters who vote personally have generally been employees of the
company or of subsidiary companies. Policy holders are en-
titled to vote by proxy, but as a rule proxies have not been used.
In order to secure the continuity of the management and to guard
against an uprising of policy holders, proxies to the extent of 20,000
or more were held by President Eichard A. McCurdy and Vice-
President Bobert A. Granniss, having been obtained, under suitable
instructions, by the local managers. These proxies, unless revoked,
run for ten years, and it has been found that the privilege of revoca-
tion is rarely exercised. The officers have not found it necessary
to use these proxies as there has not been a contested election. But
through their proxies and the command of the machinery by which
proxies could easily be obtained, executive officers have been in actual
control, and in effect have been able to choose the members of the
Board of Trustees through whom; in turn they themselves have been
continued in office. The result has been an autocracy, maintained
almost without challenge. Whatever efforts have been directed
against it have proved abortive.
Mr. McCurdy was president for about twenty years, and for the
preceding twenty years was vice-president. Mr. Granniss has been
the vice-president for twenty years, and before he held that office had
long been second vice-president. And through the "process above
described the other officers have been chosen and advanced. The
provisions of the by-laws reflect the concentration of power. Section
11 provides:
"The president shall also have the general direction and
superintendence of the affairs and of the officers of the company
and shall establish rules and regulations for the conduct of the
business of the company and for the direction of its officers.
He may from time to time devolve the performance of his duties
upon any one of the vice-presidents under the designation of
acting president. He may suspend or remove any agent, man-
ager or general agent at pleasure ; and in all cases in which the
duties of the subordinate officers, employees and agents of the
company are not specially prescribed by its by-laws, or by resolu-
tion of the board, they shall obey the orders and instructions of
the president."
It is prpvided in section 15 that the vice-presidents (two in number
since 1903) " shall assist in discharging the duties of the president
as they may be directed by him," that " a second vice-president shall
assist the president and vice-presidents in the discharge of their duties
as directed by the president," and that " a third vice-president " in
Report of the Committee. 11
immediate charge of the company's office building shall "discharge
such other duties as may be assigned him by the president." The
by-law concludes: "The president and vice-presidents are author-
ized to delegate such portions of their duties or powers as may be
deemed advisable by them to an executive officer to be called the
General Manager."
It does not appear that the Board of Trustees exercised any efEec-
tive check upon the management. The trustees purported to act
through six standing committees, to wit, a Finance Committee, Com-
mittees on Agencies, Insurance, Mortuary Claims, Expenditures and
an Auditing .Committee. These committees, apart from the Finance
Committee, have not exercised close or adequate supervision over the
matters committed to their charge. The Committee on Agencies did
not supervise the most important of the agency contracts. The Com-
mittee on Expenditures permitted large disbursements without proper
vouchers and the Auditing Committee failed properly to audit the
company's accounts. The warrant or approval of executive officers
was deemed a sufficient guaranty of the propriety of contracts and
disbursements. The Finance Committee, however, assumed direct
charge of the matter of investments.
It was natural that the exercise of practically irresponsible power
by executive officers should result in extravagance and disregard of
the interests of policy holders. Salaries were enormously increased.
The president's salary, fixed at $30,000 between 1877 and 1885, and
at $50,000 from 1886 to 1892, was increased to $75,000 in 1893, to
$90,000 in 1895, to $100,000 in 1836 and to. $150,000 in 1901. The
vice-presidenf B salary, which was $30,000 for the ^greater part of the
time between 1877 and 1888, became $37,500 in 1890, $30,000 in
1893, $37,500 in 1895, $4P,000 in 1896 and $50,000 in 1903. An-
other vice-president was added in 1903 at a salary of $30,000. The
salary of the second vice-president was $7,300 in 1877, and became
$17,400 in 1899. The treasurer's salary, which was $14,000 in 1885,
was gradually increased until it reached $40,000 in 1896. The gen-
eral manager received $30,000 in 1891, and was paid $30,000 from
1903.
These salaries were not fixed by the Board of Trustees and appar-
ently the board has no knowledge of them. They were not fixed by
any one of the standing committees. Section 36 of the By-laws re-
lating to the Finance Committee provides : " It shall also determine
all questions of salary and compensation for services when not fixed
by the board, the president or another appropriate committee." In
45
12 . Legislative Insurance Investigation.
practice it seems that about twenty years ago a, sub-conunittee on
salaries was appointed by the Finance Committeej and this sub-com-
mittee of two or three members determined the salaries of the' exeou>
tive officers in, all subsequent years. Its proceedings were not Imown
to the other members of the Finance Committee, aiid: the matter^ wap
so treated that the large increases in the president's salary appcjai-
to have been known only to two members of the sub^committee on
salaries and to the president himself.
Eelatives have been conspicuously favored. Robert H. McCurdy,
the president's son, was graduated from college in 1881. Affer a-
year of foreign travel he entered the office of C. H. Eaymond & Co.,
the general agents of the company for the Metropolitan district (New
York City), and in 1883 became a member of that" firm with a one-
quarter interest, which within a few years was increased to a one-half
interest. He remained a member of the firm until 1893, and after
his retirement still continued to receive his share of the renewal' com-
missions upon business previously written. The- record shows the
amount paid him out of th.e net profits of tiie firm from 1889, as
f oUows :
1889 $40,748 11
1890 ■ 61,903 13
1891 ; 55,001 76
1893 . 63,484 36
1893 61,635 06
1894 50,371 39
1895 ; 53,077 78
1896 ; 46,361 85
1897 ■ 41,389 47
1898 ., '. 30,750 48
1899 .'.,.. 17,646 94
1900 . . . . •. 7,533 99
1901 1,358 19
1903 388 13
1903 213 14
1904 335 14
Total ." $530,'3'88 91
Late in 1885 the company decided to do business in foreign coun-
tries and in January, 1886, Eobert H. MeCurdy was appointed Super-
intendent of the Foreign Department, with 'a contract giving him as
Report of the Committee. 13
compensation for his services five per cent, commission upon all prem-
iums from the foreign business. As the business increased the rate
of commission was reduced at his request, until in 1897 it was fixed
at one per cent, on first year's premiums and on seven renewal prem-
iums; and in 1901 the commission on first year's premiums was
.relinquished.^
The commissions- received by Mr. McCurdy on the foreign business
were as follows:
1886 $891 ,53
1887 , , . . .r 10,781 61
1888 23,522 61
1889 . 42,456 41
1890 33,243 87
1891 51,6261 07
1892 ; 46,601 04
1893 58,487 32
1894 69,202 20
1895 75,422 63 (to Aug.-Sl)
1896 81,265 33
1897 81,201 08
1898 78,485 00
1899 ; 81,973 66
1900 91,088 47
1901 89,701 78
1902 99,158 15
1903 99,175 99 *
1904 91,531 79
1905 62,573 70
Total $1,268,390 24
Prior to 1893 one-half of these commissions was paid by Mr. Mc-
Curdy to Mr. Eaymond,, and he also paid to Mr. Eaymond one-half of
the amount subsequently received as renewal commissions upon busi-
ness previously written. These renewal commissions are embraced
within the totals above given, but their exact amount has not been
ascertained.
In June, 1903, Mr. McCurdy resigned as Superintendent of the
Foreign Department, and was elected general manager of the company
at an annual salary oi $20,000, which in July, 1904, was increased to
-'14 Legislative Insurance tnvesUgdUon.
$30,000. He also received for traveling expenses in 1904, covering
three trips, about $3,800.
Mr.. Louis A. Thebaud, the son-in-law of the president, succeeded
Robert H. McCurdy as Mr. Raymond's partner in 1893, receiving at
the outset an interest of one-quarter, which in 1896 was increased to
one-half, in 1902 to two-thirds, and in 1903 to three-quarters. The
net profits of C. H. Raymond & Co. from 1893 .to 1904, inclusive,
separately stated as to first year's commissions and renewals, after
deducting amounts paid to sub-agents and expenses, were as follows:
Net First Tear's Net Eenewal Total Net
■Year. Commissions. Commissions. Commissions.
1893 $52,066 69 $74,006 40 $126,073 09
1894 5,640 59 90,ll2 13 84,471 54
1895 49,789 27 150,846 72 200,635 99
1896 78,164 40 112,430 88 190,595 28
1897 74,808 74 115,442 52 190,251 26
1898 . . 61,110 85 134,635 80 195,746 65
18&9 89,516 06 139,912 97 229,429 03
1900 73,064 20 163,875 33 236,939 53
1901- 42,552 90 161,884 66 204,437 56
1902 63,850 44 180,368 69 244,219 13
1903 69,203 62 169,293 76 238,497 38
1904 72,825 59 175,001 08 247,826 67
$732,593 35 $1,667,810 94 $2,389,123 U
Mr. Thebaud's share of these profits was as follows :
Tear. ' 1st Year's. Renewals. Total.
1893 $12,583 25 $12,583 25
18S4 ^ $2,083 07 2,083 07
1895 10,759 74 21,334 51 32,094 25
1896 39,188 37 17,680 95 56,869 32
1897 42,970 05 20,847 74 63,817 79
1898 22,955 08 40,317 69 63,272 77
1899 45,685 62- 48,343 54 94,029 16
1900 27,882 08 67,773 89 - 95,655 97
1901 29,141 22 68,693 53 97,834 75
1902 40,097 08 87,361 10 127,458 18
1903 49,246 56 90,208 49 139,455 05
1904 ■ 48,000 00 99,687 74 147,687 74
$368,509 05 $562,332 25 $932,841 30
These profits were made possible by the allowance to C. H. Ray-
mond & Co. of special and exorbitant rates of commission which were
not Justifiable from any point of view. There are other cases which
Report of the Committee. 15
need not be particularized, where it would seem that special favors
have been shown- to relatives of executive officers.
The disbursements classified as "legal expenses" have been very
large. Thus in 1904 they amounted to $364,354.95, while those of
the New York Life and Equitable for the same year were $173,-
698.42, and $204,019.35 respectively. The following are the " legal
expenses " of the Mutual for a series of years;
1898 '. $266,403 95
1899 286,048 74
1900 304,756 85
1901 343,516 78
1902 215,989 64
1903 ,. . 347,00a 81
1904 ' 364,254 95
It has been impossible to examine these disbursements in detail,
but it sufficiently appears that the expenses were far in excess of the
amounts required for legitimate purposes. Nor were they subject to
any proper system of accounting. For a considerable period it has
been the practice for the Committee on Expenditures to authorize the
payment to its chairman of $25,000 every few months, or from $75,-
000 to $100,000 a year, upon the request of one of the executive offi-
cers. The persons to whom the moneys were to be paid by the com-
pany or the services if any, for which the payment was to be made,
were not known to the committee, and the only voucher was the
receipt of the chairman of the committee who received and paid over
the money in cash. There was no reason for this practice save to.
conceal the purposes for which the moneys were used, and it obviously
facilitated improper payments.
There were also a large number of payments charged to legal ex-
penses which were made upon the recommendation of one Andrew C.
Fields, who for many years was the head of the " Supply Department."
lie was in actual charge and gave a large part of his time to matters
of legislation. For many years the company maintained under his
care a house at iVlbany,- and through him and his agents a close watch
was kept upon the proceedings of the Legislature. The rent of tliis
house, the supplies there consumed, and the wages, of the cook and
other servants, were charged to "legal expenses." Fields left for
parts unknown soon after the Committee began its hearing and it has
npi beeo able to procure his testimony. It appears, however, that he
16 Legislative Insurance Investigation. ■
acted also for the Equitable and from tteir records have been pro-
duced a series of memoTanda of instructions sent Fields by Thomas D.
Jordan, its comptroller, whose whereabouts the Committee has been
imable to ascertain although it has made diligent effort to do so. It
may be supposed that Fields' work on behalf of the Mutual was at
least as comprehensive as in the ease of the Equitable and his instruc-
tions from the latter show an exceedingly wide range of supervision of
matters of legislation.
There were general instructions and also numerous specifis com-
mands during the session directing that particular bills should be
opposed, " killed " or supported. • To illustrate their nature and scope
we quote a few ^ follows:
" Feb. 8, 1898.
Memorandum for Mr. F.:
Eeferring to Assembly Bill, Int. 24b, as the three compaaiies
are opposed to it, it seems to us that it should be killed. Will
you not be good enough to give me, at your early convenience,
the exact situation with regard to it now.
(Signed) T. D. J."
"Feb. 21, 18^8.
Memorandum for Mr. F.;
Assembly Bill, Introductory 709, introduced by Mr. Sullivan
should be kiUed.
(Signed) T. D. J."
« Mae. 25, 1898.
Memorandum for Mr. F. :
I desire to call your attention to the following bills, both of
which are objectionable to us:
Bill 709, introdiieed by Mr. Sullivan, to incorporate the New
York Water & Electric Power Co. and to define its powers. This
has been amended and re-oommitted.
Bill (Senate) introduced March 18th, Ko. 434, Senator, Mun-
zinger, to incorporate the New York Water & Electric Power Co.
and to define its powers, which came before the Committee of' the
Whole of the Senate.
,(Signed) T. D. J,"^
Report of the Gommittee. 17
" Feb. 20, 1899.
Memorandum for Mr. F.:
Please note the following three bills recently introduced in the
I-egislatui-e "which we. do not wisTi passed:
.Assembly, No. 630, by Mr. Ten Eyck, referred to Committee of
General Laws, an Act to amend the Stock Corporation Law by
inserting a. tnew section to be known as Section 57 in relation to
furnishing of statements of lots of stockholders.
Assdmbly, ISTo. 783, by Mr. Hill, referred to Committee on In-
surance, an Act to amend Section 56 of the lusuranee Law in re-
lation to actions and proceedings against insurance corporations.
Sehate> No. 448, by Senator Ellsworth, an Act to amend the
Insurance Law in regaxd to actions and proceedings, same as
Assembly No. 783.
I return herewith the proposed amendment relating to distribu-
tion of surplus to policy holders which you sent me. Of course
we are opposed to it.
(Signed) T. D. J."
"Ape. 4, .1889.
Memorandum for Mr. F.;
I desire to call your attention to the following bills in which
we are interested :
Assembly, No. 1050 — ^Mr. Mangin — in relation to the mode of
assessment of banks and corporations holding trust funds.
No. 13i6 — Sheeneck — regarding fees for bond and- mortgage
loan application.
Int. No. 30 — Finn — relative to taxation of banks and trust
companies.
No. 175-— Miles — ^regarding the rate of interest.
Senate, No. 565— Mitchell. This bill should be killed. Act
provides that whenever surplus of any domestic life insurance
company shall exceed three per cent, of the amount of insurance
outstanding such exsess shall be distributed.
The same biU is also in the Assembly, No. 938— Grossraau.
(Signed) T. D. J."
18 Legislative Insurance Investigation.
"Feb. 13, 1900.
Memorandiim for Mr. F. :
We are opposed to Assembly bill. Int. 637, Mr. Eagan, entitled,
'An Act to provide for greater security in hotels, inns, taverns
and tenement houses.'
I (Signed) T. D. J »
"Jan. 7, 1901.
Memorandum for Mr. F.:
I notice that Senator Slater has introduced a bill Int. 1 18.
Please bear in mind thai if it afiects Suffolk County we are
opposed.
/ (Signed) T. D.' J."
« Mae. 38, 1901.
Memorandum for, Mr. F.:
Please note we are opposed to Assembly bill 1308 — elevators in
tenement houses — and also note that 853 — [Assemblyman]
"Eeardon — -in relation to the examination of books of account
by stockholders has been advanced. We are opposed to this bill,
of course.
(Signed) T. D. J."
"Jan. 30, 1902.
Memorandum for Mr. F.:
Please note that we are vigorously opposed to Senate bill Int.
150 — Malby. I want to keep track of this measure until it is
kiUed.
(Signed) T. D. J."
"Jan. 31, 1902.
Memorandum for Mr. F.:
We are vigorously opposed to Assembly bill Int. No. 272 —
Kobinson — ceding to the Town of Islip certain water rights.
(Signed) T. D. J."
"Feb. 10, 1903.
Memorandum for Mr. F. :
I desire to again call your attention to Senator Malby's bill,
JIo. 150, We are opposed to this measure tooth and nail.
(Signed) T. P, J,"
Report of the Uommittee. 19
"Jan. 23, 1903.
Mk. a. C. Fields,
C/o Mutual Life Insurance Company, ~ i
32 Xaasau Street, Few York City.
Dear Sir — Eeferring to Albany mattery during the present
session, please note that we will be interested in all banking and
insurance measures, taxation schemes and bills affecting particu-
larly the following interests:
Safe deposit companies, banks, trust companies, street railways,
and all measures affecting Suffolk County, New York franchises,
water rights, land under water, transportation, etc.
Yours very truly,
(Signed) T. D. Jordan, Comptroller."
A similar general instruction was given on January 7, 1904 :
"Jan. 14, 1904.
Mr. a. C, Fields,
C/o Mutual Life Insurance Company,
32 Nassau Street, New York City.
Dear Sir — Please note that in addition to the other interests
we would like looked after during the present session of the
Legislature, we would be glad to have you watch all bills pertain-
ing te piiblic places of amusement.
Yours truly,
(Signed) T. D. Jordan."
« Jan. 25, 1904.
Memorandum for Mr. F.:
Please note that we are opposed to Assembly Int. No. 13 —
Finch — and also Senate Int. 46 — ^Frawley.
. (Signed) T. D. J."
These bills were to safeguard the lives of patrons of theatres, music
hnlls and other places of amusement.
"Feb. 3, 1905.
Memorandum for Mr, F. :
Please note that we are opposed to Senator Stevens' bills Int.
1.65 and 166, amending the Banking Law in relation to the
amount which a bank or trust company may loan, and amending
^" Legistaiive hisufaftce InvesUgalion.
the BankJBg Law with reference to a semi-animal examination by
directors.
Senator Davis' bill — Int. 130 — we are noj; inr favor of, but do
not consider it sufficiently important to take action.
(Signed) T. D. J."
" Feb. 14, 1905.
Memorandum for Mr. F. :
We are of course decidedly opposed to Mr. O'Keill's Assembly
bill Int. 638, amending the Insurance Law in relation to the
distribution of surplus of life insurance corporations.
(Signed) T. D. J."'
Fields for some time was a member of the Democratic State Com-
mittee, and for many years has. taken an active part in the politics of
Westchester County, but his work in connection with legislation was
done quietly and witbout attracting much attention to himself. At
times members of the Senate, while serving on its Insurance Committee
lived at his house in Albany, which the Mutual maintained. This
was true of Senator William J. Graney, and in 1903, during his last
term, of Senator Charles P. McClelland. Mr. McClelland testified
that he had consented to be Fields' guest at Albany, because of a
friendship of long standing, and that he knew nothing of any efforts
on Fields' part improperly to influence legislation. Mr. MeClelland
was under retainer toJhe Mutual for some years, and rendered services
relating to proposed or pending legislative bills, but this was not while
he was a member of the Legislature. A former clerk of Fields, on his
recommendation, and that of Mr. McCleUand, was appointed in 1896
an examiner in the State Insurance Department, and stiU coijtinues
in such service.
The testimony taken by the Committee makes it abundantly clear
that the large insurance companies systematically attempted to control
legislation in this and other states which could affect their interests,
directly or indirectly, and that in this effort Fields, who concerned
himself mainly with this ^State played a most important role. The
three companies divided the country, outside of New York and a few
other states, so as to avoid a waste of effort, each looking after legisla-
tion in its chosen district and bearing its appropriate part, of the total
expense. The district of the Mutual comprised Virginia, North Caro-
Report of the CommiUee, 21
lina, Alaljama, Kentuclcy, Ohio, Michigan, Minnesota, Washington,
Oregon and N"ew Mexico; the New York Life had Indiajia, Illinois,.
"Wisconsin, Iowa, Nehrnska, Kansas, Missouri, Tennessee, Indian Ter-
ritory and Oklahoma; and the Equitable had Maryland, South Caro-
lina, Georgia, Louisiana, Mississippi, Texas, Colorado, Arkansas, Cali-
fornia and Nevada. The rest of the country was regarded as open,
although the Mutual had particular care of matters in the New Eng-
land and Middle States and in the district of Columbia. These efforts
involved the expenditure of large sums. Considerable amounts
charged to legal expenses, and the payment of which was authorized
by executive officers were paid out on vouchers which failed to dis-
close with any suitable particularity the consideration for the pay-
ments. The whole matter was under the direct charge of the execu-
tive officers a.nd nothing that could properly be called an accounting
was required at their hands.
In addition the Mutual made large contributions to political cam-
paign funds, which it is understood comprise a part of the items of
"legal expense." These contributions are not identified by proper
entries and in view of the unsatisfactory condition of the accounts and
vouchers it cannot be said with any assurance of certainty that the
evidence discloses all the payments which have been made of this
description. But it appears that contributions were made to the
Eepublican National Committee of about $40,000 in 1904, $35,000 in
1900, and $15,000 in 1896; and that $3,500 was contributed last year
to the Eepublican Congressional Committee. Though President Mc-
Curdy testified that he had not heard of any contributions by the
Mutual for State or local campaigns, it appears from the testimony of
Senator Piatt that the Mutucd from time to time contributed $10,000
to the Eepublican State Committee, and it is Senator Piatt's recollec-
tion that the payments were made in response to his request to Presi-
dent McCurdy. It is apparent that contributions by insurance com-
panies for use in State campaigns were made with the idea that they
would be protected in matters of legislation. Senator Piatt testified
that it was supposed that an advantage would be derived through his
relation to the State Committee and that he would be ready to respond
to an appeal for assistance in case hostile measures were threatened;
in short, that^the use of the contributed moneys in the election of
candidates to office would place them under more or less of an implied
obii^-ation not to attack the interests supporting-them.
"2 Legislative Insurance Investigation.
The "Supply Department" imder Kelds' charge had superin-
tendence of supplies of various sorts, including printing and station-
eny. The total amount reported to the Insurance Department under
the head -of " Advertising, printing, stationery, and postage " for the
year 1904 was $1,134,833.76, while, the amounts reported for that year
by the New Yorh Life and the Equitable under the same heading were
■ $851,384.66 and $772,645.50 respectively. The Mutual, according to
Its books, has expended for printing and stationery alone the following
amounts in recent years :
1898 .- $473,523 84
1899 581,783 21
1900 591,202 97
1901 519,750 30
1902 627,984 23
1903 680,849 35
1904 601,101 31
By far the greater part of this printing and stationery was obtained
from L.^ W. Lawrence & Go. and the Globe Printing Co., without in-
viting competition. Both concerns were owned and managed by Ly-
sander.W. Lawrence, who has had a place of business on the first floor
of the Mutual Life Building in New York City, his premises coromun-
icating directly with the supply department. Since these matters at-
tracted attention it has been impossible to serve Lawrence with a
subpoena.
Large sums have also been expended in the attempt to influence
public opinion through th^ press by the insertion of so-called " read-
ing notices," that is to say by disguised advertising and by payments -
to newspaper correspondents and news writers for presumably similar
service's. Even during the hearings of the Committee colored state-
ments of its proceedings, intended to place the officers of the com-
pany in a favorable light, were sent out by the Mutual to numerous
papers throughout the country and published at a cost of one dollar
a line.
It has been estimated by the treasurer of the company that pursuant
to economies planned as a result of the disclosures of the investigation
upward of a million dollars will be annually saved, and of this there
Report of the Committee. 23
will be an easy saving in the " Bupply department ajid the advertising
snd literary department, which go together," of about $300,000 a
year.
The accounts and vouchers both of " Legal Expenses " and of the
" Supply Department " are not in satisfactory condition. It may be
questioned whether in many cases the persons signing the vouchers
have actually received the moneys receipted for. It would seem that
the Committee on Expenditures habitually authorized or approved any
payment requested by the head of a department and initialed by one
of the vice-presidents. Frequently the committee was not in a posi-
tion to know and did not know the facts bearing upon the propriety
of the expenditure. Many of the vouchers furnished are too general
to supply proper iniormation; and iu other cases the large amounts ex-
pended, as e. g. for advertising, printing and stationery, traveling, etc.,
demand an examination which should go beyond a mere checking of
vouchers, however detailed. It it clear that in the interests of the
policy holders the accounts of the company should be thoroughly ex-
amined in order that the extent to which moneys have been misap-
plied, and the responsibility for any misapplication which may bp
shown, should be definitely determined. In view of the magnitude
of its labors it was nat possible for your Committee to undertake this
task, which appropriately devolves upon those charged with the super-
vision of the company's affairs.
The total admitted assets and the liabilities of the Mutual on
December 31st, 1904, are thus classified in its annual statement:
Book value of real estate $34,701,700 61
Mortgage loans on real estate < 102,037,893 43
Collateral loans .- • ■■ 11,310,000 00
Loans made to policy holders on this company's
policies assigned as collateral 33,377,736 49
Book value of bonds and stocks owned 317,380,753 73
Cash in ofHce and in banks 17,973,159 59
Agents' balances ^ 836,303 69
Suspense account ' 885,870 20
Interest and rent due and accrued ' 3,360,306 56
Market value of bonds and stocks over book value. 35,810,689 51
Net amount of uncollected and deferred premiums. 5,337,115 43
'r
$443,701,337 33
24 Legislative Insurance Investigation.
Deduct assets not admitted^ ' ,
Agents' balances _ $837,085 86
Suspense account 885,870 20
$1,723,956 06
■rotal admitted assets $440,978,371 16
Liabilities: ^ -
Net reserve '. $362,345,355 00
Unmatured supplementary contracts not involving
. life contingencies 1,290,000 19'
Policy claims 2,065,542 20
Supplementary contracts due and unpaid 1,068 39
Premiums paid in advance 695,468 43
Salaries, rent, commissions and other accounts due
or accrued -. 48,730 57
Dividends or other profits due policy holders , 174,387 95
Keserve for contingent guaranty fund 71,457,818 43
Surplus to be apportioned in 1905 .... 2,900,000 00
..-'■t $440,978,371 16
■ J ,1 '
Of the real estate approximately $33,000,000 represented the book
value of office buildings and real estate other than that acquired
through foreclosure. Although this^ book value, owing to large re-
ductions, -is several millions less than cost, the average returns were
less than three per cent. The main office building in New York was
valued at $17,277,103.81. The methods by which reductions in book
value were accomplished is discussed hereafter.
It will be noticed that the greater part of the company's assets
consisted of bonds and stocks, having a claimed market value of
$243,191,442.24. The income from these for the year 1904 was at
the rate of 4.63 per cent, on the book value, or 4.14 per cent, on the
market value. i
The securities owned on June 30th, 1905, are classified as follows:
' Par value. Book value. Market value net.
(lovemment aild Munici-
pal bonds $19,624,137 41 $18,666,988 75 $19,049,608 65
Railroad and miscellane-
ous bonds 166,347,320 00 163,187,254 16 167,198,370 55
Stocks , 33,315,600 00 52,588,739 46 ' 73,656,229 68
The following is a list of the stocks of banks and trust- companies
owned on June 30th, 1905, with their cost, rate of return, market
value and dividends:
Report of the GommiUee.
25
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26 Legislative Insurance Investigation.
The Mutual owns a majority of the stock of the United States
Mortgage and Trust Company, and in effect controls the Guaranty
Trust Company. Its officers and members of its Finance Committee-
have considerable interests in several of the banks and trust com-
panies in which the Mutual is interested, and its deposits have bee:i
largely used to promote the success of these companies. The follow-
ing indicate the amounts carried as balance in 1904:
Report of the Committee.
27
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28 LegislaUve Insuraties Iiivesiigation.
Most of the accounts have heeii inactiTe, the plan having been to
leave certain amounts on deposit with companies in which the Mutual
was interested. The rate of interest allowed has usually been two per
cent. In one case, that of the Morristown Trust Cbmpany, where
$250,000 was left on deposit, three per cent, was paid bn accbunts of
many other depositors, including the individuS,! account of S'resident
McCurdy.
While the investigation by this Committee has been in progress the
company has adopted a difEerent policy with regard tb its. bank do-
posits, and the amount of its total balances fell as Ibw as $7,662,-
383.77 on December 27, I'SOS, distributed as follows:
December 27, 1905.
National Bank of. Commerce $3,543,963 55
First National Bank 243,807. 23
Merchants' Exchange National Bank 57,948 70
American Exchange National Bank 184,400 55
Guaranty Trust Co 350,000 00
United States Mortgage and Trust Co. . , 350,000 00
Central Tfust Co-. , 350,000 00
Metropolitan Trust Co 100,000 O:^
Fifth Avenue Trust Co '. 150,000 00
Title Guarantee and Trust Co ; . . - 250,000 00
Morton Trust Co 250,000 00
Mutual AlUance Trust Co 25(),000 OC
Lawyers^ Title Insurance and Trust Co 250,000 00
Brooklyn Tnist Co :. 150,000 00
National Bank of the Eepublic, Boston. 50,00Q 00
Morristown Trust Co. 100,000 00
Commercial Trust Co. of New Jersey 15d,000 00
Girard Trust Co., Philadelphia. . , 150^000 00
Industrial Trust Co., Providence .• 150^000 00
Bank of Montreal 185,459 06
Agency Deposits 627,159 00
Cashier :
Bills $59,808 00
Currency ' 1,677 82
, Memo 8,158 87
3,644 69
$7,662,382 77
Report of the OommiUee. 29
The rate of interest on the inactive accounts has heen raised to two
and one-half per cent.
Apart from its investment in the stock of the United States Mort-
gage and Trust Company, the Mutual has invested largely jn the de-
bentures of that company, which are issued against bonds secured by
mortgage upon real estate. The United States Mortgage and Trust
Company pays one-half per cent, less upon its debentures than it
receives upon the bonds and mortgages securing them. On June 30,
1905, the Mutual had upward of $5,000,000 invested in these de-
bentures.
In "addition to its investments in. the stock banks and trust com-
panies, the Mutual has large holdings of the stocks of railroad cor-
porations, to wit (as of June 30, 1905) :
30
Legislative Insurance Investigation.
43 »
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Report of fhe Committee. . 31
It has also been the practice of the Mutuai to take participations in
the underwriting of syndicates formed to place securities upon the
market. The Mutual was also a purchaser of securities in large ,
amounts from syndicate" managers. In these syndicates officers and
members of the Finance Committee have in many cases participated,
with the result that not only has the company joined in underwritings
foreign to the purpose of its organization, but through its purchases
of securities its officers and those controlling- its investments have
largely profited. Considerable testimony has been taken with refer-
ence to transactions of this sort but the details are too numerous to
permit their inclusion in this report. The profits of the company
from these syndicate transactions- from 1897 to 1905 have been stated
to be $1,633,504.30. These profits have been mentioned, with much
insistence, as justifying the syndicate participations, and it is further
urged that the investments of the company have, on the whole, been
conspicuously successful. The net credits to the profit and loss ac-
count from securities sold from January 1, 1895, to September 30,
1905, inclusive, amount to $12,786,429. But it is evident that those
managing its financial affairs have been in a position by reason of
relation to other companies and to financial enterprises, without vio-
lating the accepted traditions or departing from the standards of the
company's management, to greatly advance their personal fortunes
through the exercise of their discretion as trustees. It has been im-
possible within the time at the command of your Committee to ascer-
tain the full extent to which advantage has been taken of such op-
portunities.
In the case of tha Lawyers' Mortgage Insurance Company an offer
was made to the President of the Mutual of 1,000 shares of increased
stock at a price which would have proved an advantageous investment
for the company, but the matter was not brought to the attention of
the Finance Committee. President McCurdy, Vice-President Gran-
niss. Treasurer Cromwell and Messrs. Juilliard, Jarvie, Haven and
Iselin of the Finance Committee made a joint purchase of the shares
on their individual behalf. Within a few months the shares advanced
fifty per cent, and more in value and several of the participants closed
out their interests. Treasurer Cromwell and Messrs. Haven and Iselin
testified that they had no knowledge of the offer of the shares to the
company. This also appears to have been the case with Mr. Jarvie,
who through his connection with the enterprise would, in any event,
it is said, have been entitled to subscribe for shares to an amount
equivalent to that which he actually received.
32 Legislative Insurance Invesiigaiion.
Although $12,786,429 were the net gains on sales of secuTitiea for
ten and three-quarter years, only a small part of this amount apr
peared in the annual statements as a portion of the yearly profits for
either present or deferred distribution to poliey holders. It was the
practice of the company to carry these gains to the profit and loss
account, to which from time, to time were charged large amounts for
the purpose of reducing the book values of real estate. The treasurer
at appropriate periods would send to the auditor a correct statement.
of the net gains on securities and these were shown by the auditor to
the president, who would give instructions as to the adjustments to be
made in the values of real estate. It does not appear that these re-
ductions were required by 'any actual losses, but the apparent purpose
• was to show larger percentages of income from real estate investments.
The record shows the following amounts charged to the profit and
loss account on real estate "adjustments" from 1898 to 1905, which
in effect were charged against the gains from sales of securities :
1898, Office buildings $1,069,173 75
1900, Nassau, Cedar and Liberty Streets 507,065 31
1901, Nassau, Cedar and Liberty Streets 1,350,000 00
1904, Nassau, Cedar and Liberty
Streets •$50i),000 00
Philadelphia _ 427,635 47
Boston 120,000 00
. 1,047,625 47
1905,
June 30, Nassau, Cedar and
Liberty Streets .... $2,750,000 00
Boston 240,000 00
Philadelphia 930,000 00
Buffalo 330,000 00
Little Eoek 10,000 00
Sidney, Australia. ... 300,000 00
Paris ' 190,000 00
Capetown 250,000 00
5,000,000 00
By its form of annual statement the New York Insurance Depart^
ment requires each company to state under the head of income " profit
on sale or maturity of ledger assets " and under the head of disburse-
Report of the Commitiee: 33
ments " loss on sale or maturity of ledger assets," the obvious object
being to require such a particularized statement as will show actual
profits and actual losses and not a mere balance, much less a forced
balance, by marking down book values. By its practice of reporting -
the balance of its profit and loss account .after making the aforesaid ,
debits, the Mutital has evaded this requirement. In 1904 its actual
net gains from the sales of securities amounted to $1,036,410 and the
balance of its profit and loss account after taking into consideration
actual gain and losses and without the real estate adjustment^ would
have amounted to $1,047,635.47. No part of this sum was reported in
its annual statement. The entire amount of this net gain was charged
ofE by the debit to the profit and loss account of an equivalent sum in
order to reduce book values of real estate. The verified statement to
the Department showed neither gains nor losses from sale and
maturity of ledger assets.
In 1905, although to September 30th there had been an actual net
gain on sales of securities of $2,076,391, this amount 'has been wholly
wiped out by the charge to the profit and loss account of $5,000,000
for real estate -"adjustment" on June 30, 1905, so that the profit
and loss account shows an apparent loss on September 30th of $3,898,-
058.30.
Despite extravagant and improper outlays the Mutual's assets have
largely increased. It may be that a conservative valuation of its
properties with a view to the possibility of immediate realization upon
its securities would to some extent reduce its apparent surplus, but
there would seem to be no reason to doubt its entire solvency and its
possession of a large amount of assets in excess of all its liabilities
including its legal reserve.
The business of the Mutual has enormously expanded within recent
years. In twenty years its outstanding insurance has increased from
$368,952,337 to $1,547,611,660, and its annual premium income from
$14,768,903 to $63,933,097, and during the same period its surplus
has risen from $6,943,764 to $74,357,818 (including surplus to be
apportioned in 1905). But this notable expansion .has not been of
advantage to its policy holders. It has served as an excuse for the
increase of expenses and for lavish payments to officers and agents.
It may here be noted that the agency system of this company was
previously that of operating through general agents, with liberal re-
newal commissions, against which -the company advanced large sums
of money; it more recently has been changed to the system of salaried
general agents, with large brokerage commissions for solicitors and no
renewal commissions, while ^i^e rolume of business, of premium in- ■■
34 Legislative Insurance Investigation.
come and of surplus has increased, the returns to policy holders by
way 'of dividends have diminished. In 1885, when the premium in-
come was $14,768,902 and the total income $20,314,934, the divi-
dends to policy holders were^ $3,183,033 and the total payments to
policy holders $14,402,050, the expenses being only $3,134,453. In
1904, when the premium income was $63,933,097 and the total in-
come $81,002,984, the dividends to policy holders were $2,674,307,-
the total payments- to policy holders were $34,484,375, and the ex-
penses $16,898,456. It is not simply that the distribution of divi-
dends has been deferred. The plan of deferring dividends for long
periods, which will be examined more critically later, has undoubtedly
facilitated large accumulations, providing apparently abundant means
for doubtful uses on the one hand, while concealing on the other
the burden imposed upon the policy holders by the costly efforts to
obtain new business. Annual dividends have been largely reduced,
and deferred dividends, when the time for distribution has arrived,
have fallen far short of expectation, causing severe criticism on the
part of policy holders.
The comparison of the estimated and actual results upon deferred
dividend policies, taking a policy of $1,000, issued at age forty, and
the issues of 1886, 1891 and 1895, as illustrations, shows the follow-
ing:
Age 40 — Estimated Surplus and Actual Results, Distribution
Policies.
ISSUED IN 1886 — ESTIMATES OF 1886.
Period. ^
Year. Estimated. Actiial.
Life 10 $135 00 (1896) $104 20
Life , 15 274 00 (1901) abt. 177 00
Life 20 504 00 (1906) 294 87'
20 J'ayment Life 10 149 00 ( 1896) 117 67
20 Payment Life 15 305 00 (1901) abt. 200 00
20 Payment Life 20 560 00 (1906) 34128
20 year Endowment 10 174 00 (1896) 142 21
20 year Endowment 15 357 00 ( 1901 ) abt. 240 00
20 year Endowment 20 658 00 (1906) 424 89
ISSUED IN 1891 —.ESTIMATES OF 1891.
Life 10 $109 00 (1901) $80 33
Life 15 242 00 (1906) 148 50
Life 20 522 00 ......
20 Payment 10 115 00 (1901) 92 87
20 Payment 15 299 00 (1906) 172 16
20 Payment 20 645 00
20 year Endowment ' 10 154 00 (1901) 115 47
20 year Endowment ...15 342 00 (1906) '214 77.
20 year Endowment '. . .20 ' 837 00 ......
Hepqrt of the Committee. 35
ISSUED IN 1895 — ESTIMATES OF 1895.
Period. Year. Estimated. Actual.
Life 10 $101 29 ( 19051 $60 00
Life ..15
]-ife 20
20 Payment 10- 104 86 (1905) 69 60
20 Payment 15
20 Payment 20
20 year Endowment 10 114 36 (1905) 86 93
20 year Endowment 15
20 year Endowment 20
Estimated.
$101
29
212
00
456
00
104
86
232.
69
546
20
114
36
292
25
.690
04
It may be noted ihat in 1905 43 per cent, of those who had taken
ten-year dividend term policies and 44 per cent, of those who liad
taken fifteen-year dividend term policieF, expiring in that year, had
survived. • '
In recent years the company has been most seriously remiss in the
published illustrations furnished to its agents of the returns which
might be expected upon deferred dividend policies. It has not been
the practice of the company to consult the actuary with regard to its ■
illustrations, and it appears that in many cases they have been made
in an arbitrary manner, without any scientiiic basis; these are hardly
entitled to he called estimates, and were obviously made for the pro-
curement of business. Thus, in the book of "Adapted Illustrations,"
issued in 1899, the surplus or so-called "Adapted Former Eesults,"
in the case of a twenty-payment life policy for $1,000, issued at age -
thirty-five, with twenty-year distribution period, was stated to be
$383.96. The surplus or "Adapted Former Eesults" for the same
policy issued at the same age, with the same distribution period, was
stated in the next succeeding illustration books of 1903, 1904 and
1905 to he $356.31, $328.66 and $301.01, resp_ectively. In each case,
it will be observed, the '"' Adapted Former Results " or estimated sur-
plus was reached by the- simple process of deducting $37.65 from the
figures previously given.
Not only have the deferred dividends failed to come up to expecta-
tion, but there has-been a conspicuous reduction in the annual divi-
dends declared by the company. This has been the ca^e, not only
where policies have become paid-up vand the subsequent dividends
have been based exclusively upon the gains from surplus interest, but
also in the case of policies where the payments of premiums have been
continuous. The following is an illustration of the annual dividei^(Js
allowed OP policies of the latter class;
36
Legislative Insurance Investigation.
Age 40 — Amount $1,000.
ANNUAL DIVIDENDS OF 1885.
PliAN.
Life.
Yeajs in, , ^ ,j ,
Force. Premium. Dividend.
20 131-73 $15 77
19 31 73 ]5 19
18 31 73 14 63
17 31 30 13 67
16 31 30 13 15
15 31 30 12 65
14 31 30 12 17
13 31 30 11 71
12 31 30 11 28
11 31 30 10 86
10 31 30 10 46
9 .31 30 10 10
8 31 30 9 75
7 31 30 9 43
6 31 30 9 12
5 26 61 4 13
4 26 61 3 86
3 26 61 3 60
2 26 61 3 36
1 26 61 3 13
I ■■
20 Payment Life.
20 Year Endowment.
. , ■ * ,•
Premium. Dividend. Premium. Dividend.
$51
78
$18 07
$38 83
$i4 75
51
78-
17 51
38 83
14 22
51
78
16 93
61
78
16 32
51
78
15 71
38 83
i2 69
51
78
'15 10
38 83
12. 20
51
78
14 50
38 83
11 73
51
78
13-90
38 83
11 28
51
78
13 32
51
78
12 76
38 83
io 46
51
78
12 22
38 83
10 07
51
78
11 70
34 07
4 94
46
91
6 33
34 07
4 60
46
91
5 85
34 07
4 26
46
91
5 39
34 07
3 94
46
91
4 94
34 07
3 64
46
91
4 52
ANNUAL DIVIDENDS OF 1895.
Plan.
Life.
Years in * >
Force. Premium-. Dividend.
20 $31 30 $7 84
19 31 30 7 59
18 31 30 7 34
17 31 30 * 7 08
16 31 30 6 83
15 26 61 1 90
14 26 61 1 65
13 26 61 1 41
12 26 61 1 16
11 26 61 92
10 32 20 6 32
9 32 20 6 13
8 32 20 5 95
7 32 20 5 76
6 32 20 5 58
5 32 20 5 40
4 32 20 5 23
3 32 20 5 06
2 32 20 4 87
1 32 20 3 60
20 Paym
ent Life.
Dividend.
20 Year Eado-wment.
Premium.
f
Premium.
Dividend.
$38 83
$10 12
$51
78
$13 99
38 83
9 72
51
7£
13 34
38 83
9 33
51
78
12 72
88 83
8 95
51
78
12 12
38 83
8 58
51
78
11 54
34 07
3 46
46
91
6 12
34 07
3 11
46
91
5 58
34 07
2 77
46
91
5 06
'34 07
2 43
46
91
4 56
34 07
2 10
46
91
4 07
39 80
7 56
53
00
9 75
39 80
7 29
53
00-
9 35
39 80
7 03
53
00
8 97
39 80
6 78
53
00
8 59
39 80
6 53
53
00
8 23
39 80
6 29
53
00
7 88
39 80
6 06
53
00
7 54
39 80
5 83
53
00
1 21
39 80
5 S8
53
00
6 85
39 80
4 10
53
00
5 02
Report of the Committee.
37
ANNUAL DIVIDENDS OF 1905.
Plan.
Life.
Years in , * ^
Force. Pi-emium. Dividend.
20 $32 20 $6 69
19 32 20 6 45
18 32 20 6 20
17 32 20 5 90
16 32 20 5 71
15 32 20 ' 5 46
14 32 20 5 22
13 32 20 4 97
12 32 20 4 73
11 32 20 4 48
10 32 20 4 24
9 32 20 3 99
8 32 20 3 75
7 32 76 3 91
6 32 76 3 62
,5 32 76 3 35
4 32 76 3 13
3 32 70 2 94
2 32 76 2 79
1 32 76 2 64
20 P
aynient Life,
im. Dividend.
20 Year Endowment.
Premii
Premium.
Dividend.
$39
80
$7
77
$53
00
$9 71
39
80
7
48
53
00
9 32
39
80
7
18
53
00
8 94
39
80
6
89
53
00
8 56
39
80
6
60
53
00
8 19
39
80
6
30
53
00
7 82
39
80
6
01
53
00
7 45
39
80
5
73
53
00
7 08
39
80
5
44
53
00
6 72
39
80
5
15
53
00
6 33
39
80
4
87
53
00
6 00
39
80
4
58
53
00
5 64
39
80
4
30
53
00
5 29
41
46
4
76
53
98
5 98
41
46
4
38
53
98
5 48
41
46
4
04
53
98
5 02
41
46
3
74
53
98
4 62
41
46
3
49
53
98
4 28
41
46
3
27
53
'98
3 98
41
46
3
08
53
98
3 70
The smallness of the dividends has been due to some extent to the
. rednotion in the general rate of interest and the return upon invest-
meiiis, but the more important cause has been the large amounts ex-
pended to obtain new business. In 1904, out of a total expense of
$l(3,SflS,4o6, $9,830,753.46 was eetima-ted to be attributable to the
- new business written in that year. This was 331 per cent, of the
margins ou the first year's business, consistisag of the mortality gains
on that business and the loading on first year's premixims. And the
eiilire expenses of the company, excluding investment expenses, ex-
ceeded the entire amount of the loadings upon all its premiums to the
extent of $1,305,007.30. In computing the gains for a given year,
for the pui-pose. of determining the amount of dividends, the com-
pany includes in its expenses the entire expense of obtaining new
business, so that the cost over and above the amount gained from the
new business falls directly upon the existing policy holders.
In order to promote hormony and .to avoid what is deemed to be
undue fluctuation, the gains of a year are not divided with exactitade,
but such amounts are taken for distribution as dividends as, in the
iudgment of tho Actuary, it is deemed sale iand proper to allow. The.
38 Legislative Insurance Investigation.
annual dividends are fixed according to what is thought to be a " fair
average," and with a view to maintaining them with some degree of
uniformity. The factor for interest gain, for example, has not been
determined by the interest actually earned, but a percentage obtained
by a modification of a factor used in previous years has been taken, in
order to make a " fair " apportionment. One justification pleaded for
this is that dividends were for policy years and that the factors can
only be computed from calendar years, and another is that it is desir-
able not to have wide fluctuation. -The company has not assumed any
liability to deferred dividend policy holders for any share of gains or
surplus prior to the times fixed for division, and the deferred dividends
at the end of the agreed periods have been based upon the amounts
which hypothetically would have been allowed according to the cal-
culation of annual dividends had the policy holder been entitled to
such. The result has been that the amounts receivable by policy
holders, whether their dividends were annual or deferred, have been
left to the discretion of the officers, and their discretion has been
exercised in such a manner that, while the returns to the policy holders
have diminished, there has been a steadily increasing surplus and a
constant growth in the totals of income, business and assets, which
have been presented as the indices of the company's prosperity.
NEW YOKK- LIFE INSUEANCE COMPANY.
The New York life Insurance Company was originally incorpor-
ated in 1841, imder the name of the Nautilus Colnpany, as a, marine
insurance company, and in 1845 it was authorized to undertake the
business of life, insurance. In 1893 it was reincorporated and an
amended charter was adopted under the Insurance Law. On Decem-
ber 31, 1904, it had outstanding 934,712 policies, representing
$1,938,609,30"8 of insip-ance. Its total admitted assets on that date
were reported as $390,660,360, and its surplus over liabilities, includ-
ing "its legal reserve, was stated to be $47,538,140. Of this surpli^s
$33,266,437.55 was described as a " reserve to provide dividends paya-
ble to policy holders in 1905 and thereafter as the periods mature,"
$6,830,023 was stated to be an " additional reserve on policies which
the company valued on a higher basis than that used by the Insurance
Department," and the residue of $8,461,678.98 was classed as a " rp-
gerve to providp for all other contingencies."
Report of the • Committee. 39
<• ' — - — ■ ,
' The company is a purely mutual one and each, memher at every
annual election is entitled to one vote in person or by proxy. The
Board of Trustees consists of tweiity-four persons, divided into four
equal classes. There are probably 800,000 policy holders. An incon-
spicuous notice of the annual meeting has been published in five
papers, three in The City of Few York and tvro in Albany. "Within
the last few months a notice of the dates of annual meetings has been
printed upon the policy envelopes. The largest number of votes cast
at any election since 1895. was 2,338 in 1905, and the next largest was
803 in 1904. The votes cast in person have been cast by employees of
the New York Life, the largest number of any election being 30, and
the remaining votes have been cast under proxies running to the
President and ihree Vice-Presidents of the company in their indi-
vidual names. There are probably 80,000 of these proxies in this
form held at the office of the company which have been taken within
the last ten years. Of these it is estimated that about 25,000 are still
in force. The proxies by their terms are good lor ten years, unless
ihey are revoked, which rarely occurs. At the annual election a suffi-
cient number of the proxies in force are selected to make whatever
showing of votes may be desired. As in the case of the Mutual, the
executive officers, easily maintaining through the agency forces an!
adequate supply of proxies, have elected the trustees by whom they
in turn have been chosen. Government by the policy holders has ex-
isted only in name ; the officers havejbeen in absolute control and there
has been a corresponding lack of a proper sense of responsibility.
In October, 1905, a new by-law was adopted as follows:
"33. Any person of legal age, except an officer, employee or
agent of the Company, may, at the annual election of members
of the Board of Trustees, act as proxy for any member or mem-
bers of the Company.
" The Board of Trustees shall elect from the policy holders a
committee of three, who may act as proxies for members and
shall hold office until their successors are elected by the Board.
This committee shall not include any officer, employee or agent
of the Company.
" Every proxy must be executed in writing and shall be revoca-
ble at the pleasure of the person executing it.
40 Legislative Insurance Investigation.
"Ewry sucli proxy shall be invalid after the expiration of
eleven months, from the da,te of its execution, unless the mem-
ber executing it shall have specified therein the number of years
for which it is to continjae."
By spction 4 of the by-laws the President has "a general
supervision and direction of the business of the Company," and.
subject to the approval of the Board he is authorized annually to
appoint " one or more actuaries, one or more comptrollers, one or
more auditors, one or more general solicitors, one or more superm-
,tendents of agents and one or more medical directors," which are sub-
ject to removal by the President, with the concurrence of the Board.
The number of executive officers has been increased and the order of
Vice-Presidents has been changed. There are now, in addition to
the President, three Vice-Presidents, three Second Vice-Presidents,
two Secretaries and a Treasurer. The three Vice-Presidents and
Treasurer have charge of the bonds, mortgages, securities and real
estate of the company. The three Second Vice-Presidents, with the
Vice-Presidents under the c^irection and approval of the President,
have appointment and supervision of the agents of the company.
The standing committees of the Board of Trustees .are Finance,^
Executive, Agency, Loss, Auditing and . Office Committees, charged
under the by-laws with appropriate duties. It is provided by the^
by-laws that no trustee shg,ll become a salaried employee of the com-
pany except by special vote of the Board of Trustees; and the com-^
pensation of the executive officers has been fixed by the Finance Com-
mittee. The salary of John A. McCall, the President, was increased
from $50,000 to $75,000 in 1896 and to $100,000 in 1901. George
W. Perldns as Third Vice-President received $20,000 until 1896 and
$25,000 until 1898. As Second Vice-President his salary was in-
creased to $30,000 in 1899 and to $75,000- in 1901. On his becoming
a member of the firm of J. P. Morgan & Co. it was reduced to $35,000 ^
in 1902 and he has received since 1903 the same amount as Vice-
President. Darwin P. Kingsley, a son-in-law of the President, re-
ceived $20,000 as Third Vice-President in 1898, $25,000 in 1899 and
1900, $30,000 in 1901 and $35,000 in 1903, and since 1.903 has re-
ceived $35,000 as Vice-President. Thomas A. Buckner received
$15-,000 as Fourth Vice-President in 1898, $20,000 in 1899 and 1900,
$35,000 in 1901, $35,000 in 19t)2, and "as Vice-President received
$35,000 in 1903 and $40,000 since that time. W. E. Ingersoll, in
charge of the Paris ofifice, has received as a Second Vice-President
Report of the Committee.
4.1
since 1903 a salary of $30,000. The sala-ry of the Treasurer has re-
mained at $30,000 since 1896. Rufus W. Weeks since 1903 has re-
ceived $18,000 as Second Vice-President ; and B. R. Perkins, a brother
Df Viee,-President Perkins, as Second Vice-President received $35,000
in 1903 and $30,000 in subsequent years. The salary of Charles C.
Whitney, for many years the Secretary of the company, was $12,000
until 1900 and thereafter $14,000 until his death in 1903. John C.
McCall, the son of the President, was graduated from- college in 1899
and was immediately employed by the company in the capacity of
Secretary of Clubs at a salary of $3,500 a year, which was increased
in 1900 to $3,600 a year, when he was made Recorder. In 1901 he
became Assistant Secretary at a salary of $6,000 and in May, 1903,
succeeded Secretary Whitney as Secretary at a salary of $10,000,
which in 1904 was increased to $14,000. In 1904 S. M. Ballard was
made Assistant Secretary at a salary of $10,000.
The total salaries paid to executive officers have increased from
$149,000 in 1893 to $333,000 in 1905, more than 316 per cent.
The scheme of supervision through committees of the Boai'd of
Trustees lias left in practice a wide field for the arbitrary exercise of
executive power. The executive officers have been permitted to dis-
burse enormous sums of money without proper accounting.
The transactions with Andrew Hamilton, who had supervision of
matters of legislation and taxation throughout the country, exhibit
extraordinary abuses. From the statement submitted by the com-
pany purporting to show all the sums paid Hamilton for legal ex-
penses between 1895 and 1905, inclusive, and from the testimony of
its officers, it appeared that in these years he received the total sum of
$1,167,697.16 as follows:
1895, charged^ to legal expense
account $10,979 00
1896, charged to legal expense
account 40,917 00
1897, charged to legal expense
account 66,156 00
1898, chajged to legal expense
■account. . 94,305 00
1899, charged to legal expense
account. 79,075 00
42 Legislative Insurance Investigation,
1900, charged to legal expense
account $92,349 00
1901, charged to legal expense
account 106,309 00
1903, charged to legal expense
account 49,143 00
1903, charged to legal expense
account 88,336 00
1904, charged to legal expense
account / 68,577 00
1905, charged to legal expense
account 13,164 90
$707,999 90
October, 1903, cash advanced, with interest, by J. P.
Morgan & Co., for account of Andrew Hamilton, in
taking up notes, and deducted from profits of New
York Life 59,310 79
December, 1903, to March, 1904, charged to real estate
account. 335,000 00 ,
June, 1904, portion of avails of check for $111,139.04
delivered to Andrew Hamilton for the payment of
taxes and used for other purposes 75,000 00
1905, through assignments of credits on books of State
Comptroller for tax refunds 90,386 47
*$1,167,697 16
Note — * Although the company purported to give the committee
a complete statement showing all the payments made Hamilton for
his alleged legal expenses, it now appears frpm a report of a special
committee of the directors that in addition $144,500 was received by
Hamilton, or charged to his account, through the Paris office. Add-
ing this to the items given by the company as above, the total pay-
ments to Hamilton since January 1, 1895, amount to $1,313,197.16.
The above mentioned amounts charged to legal expenses were in
addition to all the ordinary outlays in connection with suits or legal
proceedings or the M^ork of the legal department of the company.
They appear to have been paid upon the order of the president, with-
out the authorization or approval of any committee of the board. It
does not appear that they were ever brought specifically to the atten-
Report of the Committee. 43
tion of the board. President McCall testified that it was the custom
of Hamilton to obtain these moneys upon orders directed to various
branch offices of the company, the accounts for which would be re-
turned to the home office. There are no vouchers save Hamilton's
general receipts, without particularization of the services rendered or
the disbursements made. The explanation furiiished is that Hamil-
ton received a retainer of $1,0,000 a year, that the work required the
employment of a large number of representatives and the payments
of money to the press, that it was essential to its successful prose-
cution that all his transactions should be regarded as confidential,
that no accounting should be required even by the president of the
company, and that it was agreed ihat he should receive in addition
to his retainer five per cent, on the amount of his disbursements, and
fifty per cent, of any part of the sum of $100,000 which should not
be expended in any year. The result is that this large amount has
been placed through executive action in Hamilton's hands, and that
the company has nothing showing in any suitable manner the necessity
for its expenditure, or that it has been properly expended, or that it
has been expended at all.
Hamilton was in Europe when the committee was appointed, and
has remained without this jurisdiction. Evidence has beeli furnished
to the committee that the absence has been due to illness. ITpon the
committee's request that a proper accounting should be made for
these moneys, the company's secretary, John C. McCall, visited Ham-
ilton at- Paris in December and procured from him a verified state-
ment, which forms part of the record. At some length Hamilton de-
scribes the general nature of his services. He refers to a division of
a large part of the country between the three great companies in
pursuance of which he assumed entire responsibility in relation to
certain States; in others the companies co-operated. He adds that
" the State of New York and its legislative affairs was in no instance
in charge of myself or the New York Life Insurance Company." He
was not in Albany during the session of the Legislature, but insur-
ance measures in this State were discussed by him with the solicitor
of the Mutual, who he says ha^ charge of " Albany matters." He
adds:
" I make personal visits from time to time to every State in
the Union. Many matters with the State Insurance Departments
on occasion also receive, the attention of this department. Can-
ada calls for similar attention from time to time, and Wa^hing-
46
44: . Legislative Insurance Investigation.
ton and the territories have also. All Congressional revenue
matters in the^past have received my attention, and also Con-
gressional action looking toward a national supervision of insur-
ance, declaring it to be commerce and thus bringing it within the
protection of the provisions of the United States Constitution
and guarding it in a measure from the taxation in the several
States. I am such a great believer that practically the salvation
"^ of the policy holders of life insurance companies rests in national
supervision or federal control, that I have incurred considerable
expenditure in connection with the work of my department in
attenipting to create in every State in the United States a senti-
ment in favor of national supervision."
A large part of the expense of 1904, he says, was incurred in con-
nection with the matters last mentioned. An increased expense in
1905, he attributes to the fact "that this has been the most active
year we have had in legislative matters, due primarily to the troubles
of the Equitable Life Assurance Society and also due to the fact that
the Bureau this year was practically carried on by the Mutual Life
and the ISTew York Life alone,' with comparatively little assigtance
from the Equitable Life Assurance Society. In this way a great many
more States than was usual had to be taken care of this year by both
"the Mutual Life and the New York Life."
Hamilton's statement purports to account for $720,550 as retained
for compensation or expended during the years 1899 to 1905, inclu-
sive. Eetainers are said to amount to $77,350, the five per cent, of
. disbursements to $33,900, the fifty per cent, of differences between
amounts annually expended 'and $100,000 to $49,400, 'Hamilton's
clerk hire and rent $34,000, traveling and hotel expenses for Hamil-
ton and his representatives $74,700, and the remainder, $451,300
is stated to consist of retainers and fees for representatives and for
newspaper articles. Such an account is obviously worthless. Hamil-
ton says that no demand was made by him " for vouchers from other
people," nor did he keep " any books or accounts " to show his dis-
bursements. His check-books and checks were not submitted to the
representative of the company, upon the ground that they would
disclose nothing, payments by check not having been favored, and the
amounts having been disbursed in cash or its equivalent. To the
demand for an account the agent replies that it was expressly stipu-
lated with his employer that no accounting should be asked. ISTor
was suitable effort made to obtain an 'explanation of the totals given
Report of the Committee. 45
or to test the accuracy of the statement by specific questioning. Tlic
secretary sent abroad testified that he took with him no memoraiKlum
eveil of the gross amount to be accounted for. Much is said ;•■" the,
many matters in connection with legislation and taxation, which
have required attention, of ill-advised legislative bills, which it was
deemed proper to oppose, ajid of the importance of secrecy. Emphasis
is placed upon services outside of the department of legislation
and taxation, including "matters for the real estate department, in-
vestment and securities, agency affairs, the routing of newspaper
blackmailers, legal licenses, Insurance Department action, State cod-
ification and revision of insurance laws, of various litigations, many
matters of highly confidential character." But the statement is with-
out suitable specifications.
Mention has been made of $59,310.79 advanced for account of
Hamilton by J. P. Morgan & Co. in 1901, and repaid ^ith interest
out of profits belonging to the New YorTc Life in October, 1902.
It appears that through President McCall, notes were discounted
with the Central National .Bank and the Kew York Security and
Trust Company, as follows:
Central National Bank.
October 6, 1896, note Andrew Hamilton $10,000
April 21, 1897, note Andrew Hamilton 30,000
May 6, 1897, note Andrew Hamilton 13,000
May 14, 1897, note Andrew Hamilton 10,000
October 14, 1897, note Andrew Hamilton... 5,000
October 18, 1901, note E. E. McCall, endorsed
John A. McCall 3,000
November 13, 1901, note E. E. McCall, en-
dorsed- John A. McCall 1,000
$62,000
New York Security and Trust Company
October 14, 1901, note Andrew Hamilton. . . $10,000
December 16, 1901, note E. E. -McCall, en-
dorsed John A. McCaU 6,000
16.000
$78,000
At this time Mr. E. E. McCall, a brother of John A. McCall, had
charge of legal matters relating to the real estate department, but
the evidence is that Hamilton received the avails of all these notes»
46 ' LegisiaUve Insurance Investigation.
It is said that they were "for general purposes of his legislation
and taxation bureau expenses." Why the New York Life with its
vast resources should have required moneys for the expenses of its
department to be raised upon the discounted paper of its employees
has not been explained. The company has not and never has had any
record, voucher or statement justifying the conclusion that the avails
of the notes were used for its purposes. TS'evertheless in December,
1901, pursuant to an arrangement made by George W. Perkins, at
President MeCall's suggestion, these notes were taken up by J. P.
Morgan & Co. on the payment of $56,720.56, apparently the balance
then due upon them, and were carried by that firm until the follow-
ing October. At that time, under the same arrangement, J. P. Mor-
gan & Co. repaid itself by deducting this sum with interest ($59,-
310.79) in accounting to the New York Security & Trust Company
for certain profits upon a participation in the United StUtes Steel
Corporation Syndicate. The New Yofh Life had a three-quarter in-
terest in this participation, and the amount retained by J. P. Morgan
& Co. was charged against its share of the profits, the balance being
remitted to the company. The result was that the amounts thus in
effect paid by the New York Life to Hamilton were not charged to the
legal expenses of the company nor in any ledger account, and hence
it would appear are not included in any statement of the expenses
of the company reported to the Department of Insurance. Aside
from a memorandum upon its blotter in connection with the receipt
of the syndicate profits, there is no mention of these disbursements in
its books.
It appears from Hamilton's statement that his compensation and
disbursements amounted in 1903 to $86,300 and in 1904 to $142,100,
making for the two years $328,400. The company's books show that
in these years he received more than this amount, or $88,226 in 1903
and $143,577 in 1904, making $231,803 in all. But in addition to
these amounts, which were charged to legal expenses, he received from
the company between December, 1903, and April, 1904, the sum of
$235,000. The last mentioned amoimt was paid him by order of the
President, without the authorization or approval of any committee,
and apparently without the knowledge of any other executive officer
or trustee. It is plain that at the time these moneys were not re-
quired for tiie work of his department of legislation and taxation,
nor were they given him for that purpose. Nor does it appear that
Hamilton was entitled to them for any purpose whatever. In fact
of thfr $143,577. which was paid to him in 1904 and charged to legal
Report of the Committee. 47
expenses, he received $130,000 after the sum of $335,000 had been
placed in his hands. It has not even been required in the year 1905,
although he claims that despite his six months' absence from the
United States his compensation and disbursements for that year
amount to $147,200.
Of the $335,000, the sum of $75,000 was advanced to Hamilton
in two payments in December, 1903, by the direction of the President,
as moneys " to be accounted for." The President testified that it ^as,
anticipated that they might be used in connection with the
purchase of a mortgage, but the purchase was not made.
• When he received checks for the $75,000, Hamilton gave his
own checks for the equivalent amounts, which were treated as cash,
so that on December 31, 1903, the disbursement was not included in
its annual statement. On January 8, 1904, Hamilton's checks were
surrendered to him and the moneys were permitted to remain in his
hands. The pretext for this, as well as for the otheo: payments of
January and March, 1904, making a total of $335,000, was that
Hamilton had charge of the acquisition of properties in the block
east of the company's main ofiBce building and that the moneys were
to facilitate the purchases. But although between March and July,
1904, the company expended approximately $600,000 in buying lots
in this block, most of which was paid through Hamilton, the moneys
were furnished \axa. as they were required and no part of the $235,000
was used, nor has it since been used, for any such purpose. Not-
withstanding this fact, the whole amount on March 38, 1904, was
charged in the ledger of the company to the real estate account and
purported to form part of the cost of what was called the "Home
Office Annex," the name given to the property owned by the company
on the block east of its office building. So clearly was this import
of the entries in the books that the bookkeeper relying upon them
testified as follows;
" Q. Now we come down to 1904, to March 38, $235,000 ; is
that whole sum for the purchase price of the property in Centre
street and Worth street? A. Yes, represents amounts that had ■
been paid for that purchase."
On December 31, 1903, the book value of the property then owned
in this block amounted to $540,000 and was so reported to the In-
surance Department. On December 31, 1904, this amount was in-
creased by the charges entered in that year, including the said
rimount of $235,000, to the sum of $1,426,863.43. On December 31,
48 Legislative Insurance Investigation.
1904, there was charged off to suspend' account $101,863.43, and the
remainder, $1,325,000, was, included in the company's report of that
date to the Insurance Department as the b(?ok value of the property.
After President McCall had testified before the Committee he ad-
dressed the following communication to the Board of Trustees.
"In my testimony before the special Legislative Committee
of this State referring to the advance of $235,000 on account
of recent purchase of home office annex property, in the block
bounded by Elm, Leonaxd, Centre and Worth street^ I stated
that there were unsettled bills of 1905 outstanding of Judge,
Hamilton's which might be regarded as offset, leaving a net
amount due of about $70,000.
" I desire to place on our record an additional statement that
if the said sum of $235,000 thus advanced to Judge Hamilton,
who is now in Europe, is not repaid by him to the company on
or before December 15, 1905, that it will be my duty and obli-
gation as expressed m my testimony aforesaid,' to pay to" the
company said amount of $235,000 on or before December 31,
1905.
.New York, October 9, 1905.
(Signed) JoHur A. McCall."
It appears from the testimony that in June, 1904, a check of the
company was delivered to Hamilton for $111,139.04 for the purpose
of paying a tax on premiums. On the ground of pending litigation
affecting the validity of the tax, the check was not used for this pur-
pose, but was deposited by Hamilton in his own bank account. In
the September following the tax was paid, but Hamilton only sup-
plied $36,139.04, the company giving a second check for $75,000 to
complete the payment. The bookkeeper testified that the firsfcheek
•of $111,139.04 was charged to taxes and that the second check of
$75,000 was first charged to the same account, and in the following
December was transferred to an account called " Contingent Ex-
penses." In this way Hamilton obtained $75,000 which did not go
into the legal expense account and the amount has never been prop-
erly accounted for.
While the record does not disclose the prejsise uses to which the
moneys paid Hamilton were devoted, these transactions show not only
an admitted claim on the part of the company for moneys advanced
without consideration, but that there have been abundant opportunities
for the waste or misapplication of the company's funds, and that a
Report of the Committee. ■ 49
strict accounting is imperatively demanded from those who have been
concerned in these transactions. Legitimate opposition to imwise
legislation and the protection of the interests of policy holders do not
require secret retainers or confidential cash payments. After certain
of the facts had been disclosed the Board of Trustees of the 'New
York Life, on the report of a special committee, adopted the following
resolution;
" Whereas, We the Trustees of the New York Life Insurance
Company, have learned from the testimony recently given before
the Legislative Committee now engaged in investigating insur-
ance matters that the executive ofScers of life insurance -com-
panies, including this company, have deemed it necessary, in
order to protect the interests of policy holders, to expend con-
siderable sums of money annually in the employment of attor-
neys and counsel in order to oppose the enactment of legislation
in the various States -which, if enacted would, in the judgment
of such officers, have greatly added to the burdens of policy
holders through unjust and excessive taxation and otherwise^ and
would, in the judgment of such officers, have greatly embarrassed
the operations of the companies generally; and
."Whereas, we have also learned from such testimony that it
has been the custom of this company to pay such sums of money
without such expenditures being brought to the knowledge of and
without action thereon by this Board, or any Committee of the
Board, and without detailed vouchers or accounts showing the
use of such money; and
"Whereas, we believe that is is the 'duty of the management
of a life insurance company to use every legitimate and proper
means to defend and protect the interests of \the' policy holders;,
but we further believe that the methods to be employed in op-
posing legislation and in kindred work should be so open and
' public as to put them above criticism and that such payments
should be accounted for fully and in detail;
"Therefore, Resolved, that in order tha:t there may be no
question of the propriety of any expenditure for. the purposes
aforesaid, and in order that there may be proper safeguards . to
prevent the use of such money improperly, every such expense
shall be represented by a voucher reciting in detail the services
rendered, or the purpose for which the money was expended, ac-
companied by regeipts from any person or persons to whom any
portion of the same shall have been paid for services.
60 Legislative Insurance Investigation.
"And Further Eesolved, that the executive committee is di-
rected after the adoption of the pending by-laws, to make a
Special Eeport to the Board every month, giving a resume of
what moneys have been expended during that period and how ex-
pended. And the officers of the company are hereby instructed
to offer to the Superintendent of Insurance of the State of New
York with the company's Annual Eeport for the year 1906, and
yearly thereafter, a schedule showing in detail the bills opposed,
the states in which the legislation was threatened, the names and
addresses of parties engaged as counsel or otherwise, and the
sums paid them, and the expense of advertising, traveling, etc.;
and that the same exhibit be prepared and ready to file with the
Insurance Department of any State in the United States and for-
eign countries if it is asked for."
- There was a further payment of Hamilton in 1905 of $90,386.47
through assignments of credits in favor of the New York Life upon
the books of the State Comptroller for refunds of taxes. By chapter
118 of the Laws of 1901, which went into effect on October 1, 1901,
an annual tax was authorized upon the gross amount of premiums
received during the preceding- calendar year by every domestic insur-
ance company for the privilege of exerciping corporate franchises
within the State. Under this statute a tax was levied and paid by
the New York Life and other companies upon preiniums derived from
contracts existing prior to the date on which the statute took' effect.
On advice of Mr. E. E. McCall, with whom the Provident Savings
Life Assurance Society consulted from time to time on legal matters,
the Provident Savings brought certiorari proceedings to determine the
question whethej the statute was retroactive. Mr. McCall appeared
for the Provident Savings before the Comptroller and in the Appel-
late Division, whose decision supported the ruling of the Comptroller.
After Mr. McCall went upon the bench Mr.Andrew Hamilton, who had
also been employed by the Provident Savings in various matters, eon-
ducted the litigation and argued the appeal in the Court of Appeals,
which in October, 1904, decided that the statute only applied to pre-
miums received upon contracts made on and after January 1, 1902.
The Provident Savings paid Mr. E. E. McCall in this matter a re-
tainer of $1000 in 1903 and paid $3,000 to Andrew Hamilton in 1903
and 1904. While the question was an important one, it was purely
one of law and the case lay within a small compass. The compen-
sation paid Messrs. McCall and Hamilton by the Provident Savings
was entirely adequate for the services rendered. Yet upon the basis
Report of the Committee. 51
r
of this decision it is claimed that the New J^twfc Life through a con-
tingent arrangement made with Mr. B. E. McCall and Mr HamiUon,
both then under a general retainer, become obligated to pay upward
of $130,000, or one-third of its total refunds of statutes providing for
reciprocal taxation. President McCall testified that Jhe New Yorh
Life did not care- to have the proceeding instituted in its name and
knew nothing of the terms upon which the attorneys represented the
Provident Savings, while President Scott of the latter company testi-
fied that he employed the attorneys to conduct the litigation upon the
usual basis of reasonable compensation, without knowledge of any
such contingent arrangement or that they represented any other com-
pany in the matter.
Under the decision obtained by the Provident Savings the New
York Life became entitled to a refund in this State of $372,703.2'?'.
In the case of this company and others the refimds were provided for
by credits upon the books of the State Comptroller, but, in order to
provide moneys for Hamilton, the New YorTc Life assigned its credits
to^other companies to the extent of $90,386.47, from which Hamilton
received that amount. There appears to have been no reason for any
agreement on the part of the New York Life to compensate either
Mr. E. E. McCall or Mr. Hamilton for services rendered in the case
of the Provident Savings. Nor, in any event, does there appear to
have been warrant for the making of a contingent arrangement, which,
in case of success, would involve such excessive remuneration. Apart
from their general retainer by the company, the New York Life could
readily have obtained the services of both attorneys or of the most dis-
tinguished members of the bar to relieve it from unauthorized tax-
ation, upon an agreement for reasonable compensation which" would
have involved the payment of a relatively small amount. It may be
.added that the Legislature, at the next session after the decision of
the Court of Appeals, imposed the same rate of tax upon annual re-
ceipts, and that thus the value of the case as a precedent was limited
to the particular taxes retroactively laid under the statute then in
review. The contingent arrangement was made by President McCall,
without-the authorization or approval of any comniittee of the board.
And the portion of the contingent fee claimed still to be due to
Hamilton is suggested as an ofeet against his liability for unexpended
portions of the $235,000 to which reference has been made'.
The New York Lif^ contributed to the Eepublican National Cam-
paign Committee $48,702.50 in 1904. The testimony of George W.
52 Legislative Insurance Investigation.
Perkins permits the inference that a similar amount (or $50,000)
was contributed for the same purpose in 1896 and in 1900. While
unquestionably a large contribution was made in those years, the
amount is not satisfactorily established, beyond the fact that at least
$35,500 was contributed in 1900. Despite vigorous insistence upon
the propriety of these payments to assist in the maintenance of a
proper monetary standard, the payments have not been disclosed iy
satisfactory entries upon the books of the company, and apparently
every eilort has been made to conceal them. For example, the pay-
ment made in 1904 did not appear among the expenses of that year
in any of the regulaj ledger accounts, and, it is understood, did not
form part of the disbursements reported to the Insurance -Department
on December 31, 1904. This was made possible by the fact that the
company owned certain securities known as " non-ledger assets,"
which did not appear upon its general ledgers. The proceeds of these
securities were entered in a ledger kept in its treasury department, at
No. 5 Nassau street, being credited to what was called " Hanovei
Bank OfBce Account." It was to this account that in March, 1904,
$100,000 paid to Hamilton was charged, which by a cross entry was
afterward transferred to the real estate account, as part of the
$235,000 above mentioned. The $48,703.50 paid to the treasurer
of the Eepublican National Committee was charged to the " Hanover
Bank Office Account " on December 30, 1904, " by order of the Pres-
ident," without any specification of- the nature of the disbursement or
the person to whom the payment was made.
The contribution of 1900 was also dealt with in such a manner
that it does not appear upon the books. Moneys which had been
placed in the hands of the attorney of the company to- pay a judgment
and were charged to a real estate sinking fund, passing through that-
account to profit and loss, were used for this purpose. In 1896 the
matter was so skillfully handled that the officers, although proud of
the payment, have been unable to discover it, on account of the death
of the former Treasurer. In January, 1897, in answer to his inquiries,
affidavits were furnished to Governor Culberson^ of Texas, made by
the Cashier, the Comptroller and the Auditor of the company, to the
effect that, to the best of their information, knowledge or belief "no
moneys were directly or indirectly paid by the company to the Ee-
publican campaign fund during the recent Presidential election." The
Comptroller, now .deceased,- was instructed by the President to fur-
nish from the books of the company the infomiation which the Gov-
ernor of Texas requested, and it appears that the affidavit signed by
Report of the Committee. 53
the Cashier was hrought to him by the confidential representative of
the President. The Cashier based his action in signing it, as presum-
ably did the other af&ants, upon the silence of the hooks and records
of the company with reference to the contribution.
The officers have denied that any payments have been made for
the purposes of State or local campaigns and there is no satisfactory
evidence to the contrary.
In addition to the amounts which Hamilton claims to have ex-
pended in connection with newspapers, it appears that, as in the case
of the Mutual, considerable sums have been paid by the New York
Life for the publication of " telegraphic matter " in numerous papers,
which it is understood is intended to cover advertising matter in
• the guise of news items, and for services rendered by newspaper
writers.
The total admitted assets and the liabilities of the company on De-
cember 31, 1904, are thus classiiied in its annual statement:
Assets.
Book value of real estate ; - $13,357,500 00
Mortgage loans on real estate 33,595,105 00
Loans made to policy hold-ers on this company's
policies assigned as collateral 35,867,475 61
Premium notes on policies in force 3,331,617 71
Book value of bonds owned 387,063,384 31
Cash in office and in banks 17,694,109 31
Interest and rent due and accrued 3,469,570 76
Net amount of uncollected and deferred premiums 6,833,497 65
Total adinitted assets $390,660,360 35
Liabilities.
Net reserve $336,333,459 00
Amounts unmatured on supplementary contracts . . 1,518,403 83
Liability on cancelled policies 88,365 01
Policy claims , 3,394,456 68
Matured supplementary contracts 1,081 76
Premiums and interest on policy loans paid in
advance 1,586,164 49
Commissions due to agents on premium notes
when paid - 41,459 40
Dividends or other profits due policy holders 379,671 65
54 Legislative Insurance Investigation.
Reserve to provide dividends payable to polioy
holders in 1905 and thereafter as the periods
mature :
To holders of 30-year and
longer period policies $34,982,737 06
To holders of 15-year period
policies 5,736,259 46
To holders of 10-year period
policies . 344,600 56
To holders of 5-year period
policies 303,837 47
To holders of annual divid- ;.
dend policies 868,953 00
Additional reserve on policies
which the company values
on a higher basis than that
used by the Insurance De-
partment. . 6,830,023 00
Eeserve to provide for all other
contingencies 8,461,678 98
Total additional reserve $47,538,139 53
Total $390,660,360 35
It has been the practice of the company to reduce the book value
of its real estate so as to show an income of three and one-half per
cent, or more. The book value of the main office building on Decem-
ber 31, 1904, was $5,000,000; its actual cost was $7,131,267.37. The
net income for the year 1904 was about 3.6 per cent, of the amount
invested, but through the reductions in book value, was iigured at
3.73 per cent, upon the amount at which it was carried. The book
value of the property in the block east of the main office building
was $1,371,504.99. As a large part of it was acquired during the
year, a statement of a full year's income was not obtained, but it was
estimated that the property should yield net $63,388.45 annually.
The office buildings for the most part have been' legacies from a for-
mer administration, and show on the whole poor returns. The Paris
building was carried on the books at the end of last year at a value
of $1,300,000, showing an earning capacity of practically three and
one-half per cent., but it had cost the. company over $2,500^000, and
Report of the Committee. 55
the net income was a little over one and one-half per cent, of the in-
vestment. The Buda-Pest^ Building was carried at' $550,000, its
actual cost was $635,310.85, and the net return on the amount in-
vested was a trifle over two per cent. The Kansas City Building had
a book value of $1,200,000, its cost was $1,901,781.33, and the net
"ineome was about 3.6 per cent. The book value of the St. Paul
Building was $450,000, its cost was $9^3",440.85, and the net income
was about 1 per cent. The Omaha Building was carried at $650,000,
its, cost was $1,3*46,641.72, and the net income was a little under 3
per cent, of the cost. The Minneapolis Building was carried at
$600,000, and its net cost was $1,038,752.31, the net income being
about 2^ per cent, thereof. These four western buildings on De-
cember 31, 1896, were valued on the books at $4,160,000, with a net'
rental of $36,500.39 ; the same properties on December 31, 1904, were
carried at $2,900,000, with a net rental of $137,909.43. The
Montreal Building cost $818,359.45. It was valued at the end of
1904 at $350,000. Its net income was a little over one per cent, of
the cost.
With rieference to the real estate taken on foreclosure, mention may
be made of the Yosemite Apartment House, corner of Park avenue
and Sixty-second street. New York, which cost approximately
$1,000,000 and has been marked down to $450,000; 'it yields a net
return of about 2.7 per cent, of the cost. The property No. 49 West
Seventy-second street was acquired through foreclosure on August 20,
1902, at a cost of $146,449.45. The company remodeled the build-
ing in 1902 and 1903 at an expen'fee of over $56,000, making the total
cbst $203,056.93. The building contains six apartments, and among
the tenants in 1904 were Messrs. John C. McCall, Leo. H. McCall
and Ballard McCall, the President's son, and Albert McClave, the
President's son-in-law. The net income froit the building in 1904
was $4,127.47, or a little over 2 per cent, on the cost.-
It will be noticed that nearly three-quarters of the company's assets
on December 31, 1904, consisted of bonds. In its annual statement
credit was not taken for the excess of market value over book value,
which was claimed to amount to $7,247,377.91.
In 1899, in order that the company might continue its Prussian
business it was required that it should not make investments in or
loans upon corporate stocks. Accordingly a by-law was adopted pro-
viding that the company should not "loan or invest in what are
commonly known as industrial enterprises " nor " invest in or loan
on stocks,", " but instead it shall annually reduce both the amount of
56 Legislative Insurance Investigation.
Sitocks" owned and the amount of stocks held as collateral security (to
be evidenced by the annual statements to be rendered by this company)
tmtil in the company's annual statement, to be rendered in 1902, no
item of stocks owned or of stocks held as collateral shall be included
amongst its assets." Among its ledger or disclosed assets on January
1, 1899, the company held a considerable amount of stocks, including
5,130 shares (out of a total of 10,000) of the Few York Security ^
Trust Company, 10,000 shares of the preferred stock of the Chicago
& Northwestern Eailway Company, and 5,300 shares of the Chicago,
Milwaukee & St. Paul K. E. Co. The company having disposed of
its other ledger stocks had considerable difficulty in arranging a sale
of these three large blocks an"d toward the end of 1901 a proposed
amendment to its by-laws so as to lengthen the time of the holding of
the stocks was referred by the Board of Trustees to the Finance and
Executive Committees for joint consideration and report. At a meet-
ing of these committees held on December 11, 1901, the subject was
discussed and the following resolution was adopted: "Whereas the
Finance Committee has arranged for the sale of the several stocks
held by the company, therefore be it resolved that we report back to
the board of Trustees that there is now no necessity for the passage
of proposed amendment to the by-laws."
The matter of the sale of the stocks had been delegated to Mr.
George W. Perkins, the Chairnjan of the Finance Committee, and
through his efforts a syndicate had been formed for the purchase of
5,000 shares of the stock of the New York Security & Trust Company
(the remaining 125 shares apparently having been otherwise disposed
of), at the price of $800 per share, to be imihediately paid to the
New York Life, and one-half of any increase in its value as provided
in a trust agreement dated December 9, 1901, under which the shares
were transferred to Charles S. Fairchild, John A. McCall and George
W. Perkins, as trustees for certain stated purposes. The trust was to
continue for five years or until the earlier termination of two desig-
nated lives in being. Provision was made on its termination for an
appraisement and the trustees were then to have the option of pur-
chasing the shares at the appraised value. If the trustees should elect
.to purchase, they were to pay the price, if $800 a share or less, to
the holders of certificates of interest issued to the members of the
purchasing syndicate; and if the appraised value was more than $800
a share they were to pay one-half of the excess to the certificate
holders and one-half to the New York Life. In case the trustees
elected not to purchase, and the appraised value was $800 a share or
Beport of the Committee. 57
less, the shares were to be treated as held exclusively for the certificate
holders; and if the appraised value was more the certificate holders
were to purchase the shares, paying one-half of the excess to the
trustees for the benefit of the insurance companv. During the con-
tinuance of the trust the trustees were to have the voting power and
were to distribute the dividends received to the certificate holders.
The trust still continues, but by reason of the increase' of the stock of
the Trust Company in March, 1904, to $3,000,000, no longer controls
the majority interest. By a supplemental agreement of even date
the New York Life is- entitled to the benefit of the option reserved
to the trustees whom it may require to make the purchase for its
benefit on supplying the necessary funds.
In order to profess compliance with its agreement with the Prussian
Government and to. avoid showing the stocks upon its schedule of
assets after December 31, 1901, a pretended sale was made of the
10,000 shares of Northwest preferred and 5,300 shares of St. Paul
preferred to the New York Security & Trust Company at 235 and 190
respectively. The transaction appeared as a sale on the books of the
New York Life and its continued ownership of the securities was not
disclosed by its annual statement to the Few York Insurance Depart-
ment as of December 31, 1901. On the contrary, that statement
asserted that the " Company does not invest in stocks of any kind,"
and the pretended consideration for the stocks was included in the
cash items. But in fact there had been no lona fide sale and the
stocks still continued to be owned by the company. While the
amoimt of the formal purchase price was placed to the credit of the
New York Life in its Account ISTo. 4 (described later) with the
Trust Company, the shares, with other non- ledger assets, were
treated in January, 1903, as held by the Trust Company as collateral
for loans made to two employees of the New York Life, M. M. Matti-
3on, a bond clerk, and George W. Marshall, a colored messenger. The
loans were represented by-oiotes, Mattison's being for $1,857,000 and
Marshall's for $1,500,000. The New' York Life through its deposits
with the Trust Company supplied the moneys that were necessary for
these loans and continued its control and ownership of the stocks in
order to reap the profit which might be gained from their subsequent
sale. Subsequently, by direction of the Finance Committee, the
Northwest shares were sold for $250,000 more, and the -St. PauJ,
for about $95,000 less, then the pretended December price and the
New ~tork Life received the apparent profit and stood the apparent
loss, carrying the net gain of $155,000 to its profit and loss account.
S8 Legislative Insurance Investigation.
Similar practices have been resorted to since 1901 in order to avoid
the disclosure in its report to the Insurance Department of trans-
actions in securities which might be deemed to conflict with its by-
laws or which might provoke criticism. Thus in 1903 the company
acquired about $1,800,000 in par value of bonds (Series A-F) of the
United States Steel Corporation. Anticipating a possible confiict
with the Prussian Government and an immediate sale being imprac-
ticable, a pretended sale was made on December 30, 1902, to the New
York Security & Trust Company and loans were arranged in the
names of employees, with the bonds and certain non-ledger assets as
security. At the end of the year 1903 it appeared on the books of
the company that the bonds had been sold and they were not in-
cluded in the securities reported to the Insurance Department. ' They
were subsequently actually disposed of at a price less than the
amount at which they had been nominally transferred, and the loss
was borne by the New York Life.
Another transaction of this sort was in connection with the bonds
of the United Collieries, which were acquired through a syndicate
participation in 1903, the company having expected to make a profit
without being compelled to take the bonds. In the annual statement
at the end of 1903 the bonds appeared, but not desiring to disclose
them in the statement for 1903 there was a nominal sale in December
of that year to J. P. Morgan & Co. of London, with the result that
on the books of the New York Life they were entered as sold, but
on the books of the London firm it appeared that the latter had made
advances upon them to the company.
In 1903 the New York ii/e applied for a participation of $5,000,-
000 in the syndicate underwriting the securities of the International
Mercantile Marine Company, known as the " Navigation Syndicate,"
of which J. P. Morgan & Co. were the syndicate managers, and re-
ceived an allotment of $4,000,000. Upon this $3,300,000 was called
in 1903 and this amount appeared in its annual statement for that
year. In 1903 an additional amount of $800,000 was called, and in
order that its interest in this syndicate, the prospects of which were
not at the time particularly bright, should not g^pear at an increased
figure in its statement for 1903, it Jivas determined to make some
disposition of the $800,000 interest. Accordingly, on December 31,
1903, it was arranged that J. P. Morgan & Co. should pay the New
York Life $800,000, which was deposited to the credit of the Company.
The $800,000 interest was entered in its books as sold and the report
to the Insurance Department stated that the company's entire interest
Report of the Committee. 59
in the syndicate was $3,200,000 instead of $4,000,000, and the value
was stated art par, the price at which the $800,000 interest had been
apparently disposed of. On JaTmary 2, 1904, the New York Life
gave its check to J. P. Morgan & Co. for $800,266.67, that is, $800,000
and two days' interest. The arrangement was made by Mr. Perkins,
who acted both for the New York Life and his firm. It is plain that
there was no I ana fide sale and that the whole purpose of the trans-
action was to conceal the extent of the company's interest in the
Navigation Syndicate. The interest of $800,000 was closed out in
1904 at a loss of $80,000 to the company.
In March, 1904, on the increase of the stock of the New York
Security & Trust Company, 1,000 shares of the increased stock was
used for the act[uisition of the stock of the Continental Trust Com-
pany, which was subsequently merged with the former company. In
connection with the carrying out of this plan objection was made to
the large interest of the New York Security & Trust Company in the
syndicate relating to the securities of the New Orleans Eailways Com-
pany, Influenced, as it is claimed, by the argument that the New
York Life had made an advantageous sale of its stock some years be-
fore, and apparently with no other object than to assist the New York
Security & Trust Company and those interested in it, the New York
Life took from the Trust Company a participation of $2,500,000 in
the New Orleans Eailways Company Syndicate, and $1,500,000 in
par value of the bonds of that company at 85, paying therefor with
interest the aggregate sum of $3,805,679.55. This was an investment
wholly without justification. The syndicate interest was afterwards
transferred to and settled through the temporary loan account.
$250,000 of the bonds were sold at about 80 in November, 1904. On_
or about December 31, 1904, the remainder of the bonds, $1,250,000
in par value, were nominally sold for the apparent price of $937,500.
In this way the bonds were closed out of the books of the New York
Life and were not included in its annual statement as of December
31, 1904. The transaction was carried out as follows: $1,000,000
of the bonds, through an arrangement made by George W. Perkins,
were sold pro forma to W. S. Panshawe, a bond dealer with whom the
New York Life had numerous transactions, for $750,000. The bonds
were delivered to the New York Security & Trust Company, from
which Mr. Perkins obtained the money without Panshawe's inter-
vention. The remaining $250,000 of. the bonds were taken at the
price of $187,500 by Mr. Perkins for the benefit of the " Nylic " fund,
a trust fund Created for agency directors, of which Mr. Perkins was
60 Legislative Insurance Investigation.
the managing trustee. On January 5, 1905, the sub-committee of
the Finance Committee, composed of Messrs. Perkins, Langdon and
Eandolph, reported in connection with the " New Orleans Eailways
interest referred to them with power," " that the proposed reorganiza-
tion, although promising profitable results, involTss the conversion of
a portion of the bonds into stock, which could not therefore be enter-
tained, and in the judgment of the committee made the sale desirable,
to efEect which involved a loss against which the eomnaittee provided
in part by agreeing with the purchaser in consideration of a division
of the resulting profits upon the securities to protect him against loss.
The sale of $1,350,000 bonds at 75 was thereupon authorized on above
basis." On or about the same day Fanshawe took up the $1,000,000
bonds from the New York Security & Trust Company and the $250,-
000 bonds' from "Nylic," paying the aggregate sum of $937,500,
which at the same time was loaned him by the New Yorh Life. He
took them under an arrangement made with Mr. Perkins whereby the
New York Life was to have 95 per cent, of the net profits on their re-
sale. In other words, Panshawe merely agreed to take the bonds and
sell them in his own name. in consideration of 5 per cent, of the net
profits. The transaction was closed in June, 1905, when the securities
were sold and Panshawe took up the loan and 'gave a check to the
New Yorh Life for 95 per cent, of the excess over the price at which
he had nominally taken them.
Brief allusion may also be made to the manner in which other
transactions in securities have been dealt with in the company's ac-
counts. In 1898 the company took an allotment in the Toronto,
Hamilton & Buffalo Eailway syndicate of $875,000, receiving bonds
, of that par value and paying for them at 91, or $796,-350. In July,
1899, the account was credited with $500,000 bonds as "delivered to
the New Yorh Life at 99," and these transferred to another account
then opened which- was debited with an equivalent amount, import-
ing an investment in $500,000 of the bonds at 99. In fact there had
been no such investment, but the bonds were part of the lot acquired
at 91. In December, 1899, the syndicate account was closed with an
apparent profit of $44,908.96, ■^hich was carried to -the credit of
profit and loss, when in fact there had been no such profit. The
transaction was simply that $500,000 of the bonds were marked up
from 91 to 99, the company treating itself on the one hand as in-
viting in them at the latter figure and on the other as having made
the profit by resale.
Report of the Committee. 61
The profits on securities sold in 1901, including the $800 a share
received on the stock of the New York Security & Trust Company,
amounted to $5,253,541.57, which with profits from other sources
of '$585,545.59 made a total of $5,839,087.16. The company thought
it a good opportunity to take out of its account items known as
"agents' balances," which were not recognized as assets by the In-
surance Department, and reduce the value of the real estate. Hence
from the total profit it deducted $1,633,637.11 for agents' balances,
$296,904.18 from the. suspense account, and $843,980.88 on account
of reductions in real estate values, leaving the sum of $3,075,371.99.
This last amount, without mention of the other particulars, it in-
cluded' in its statement to the Insurance Department of December
31, 1901, in the following item under the head of income, "Net
profits received from securities during the year, $3,075,371.99."
In 1901, in connection with the United States Steel Corporation
Syndicate, under the management of J. P. Morgan & Co., Mr. Perkins
through his relation to that firm had control of a $3,000,000 interest
in that syndicate, and subject to certain conditions was in a position
to give to the New< York Life the benefit of the participation upon
such terms as he might think proper., Being chairman of the Finance
Committee of. the New York Life and a trustee of the New York
Security & Trust Company, the majority of whose stock was then
owned by the New York Life, he arranged that the Trust Company
should become registrar of the preferred stock and that a participation
should be taken in its name, which was finally adjusted at $3,335,000,
and that three-fourths of this should be carried by the Trust Com-
pany for the benefit of the New York Life. The Trust Company
was to provide the moneys called for on the subscription and guar-
anteed the New York Life against-loss. The object of this course of
dealing was to aid the Trust Company and to give the New York Life
the benefit of a participation, expected to be profitable, without its
taking a direct interest in the underwriting. Inasmuch as it was a
stock transaction it was not deemed proper for the New York. Life
to take a direct interest, and as Mr. Perkins said, the company was
" careful never to have any records about it." It was omitted from
the list of the company's syndicate participation furnished Jhe com-
mittee. The profits on the entire participation were received by the
Trust Company and three-fourths paid over to the New York Life.
It was out of a portion of these profits, it wiU be remembered, that
certain notes of Andrew Hamilton were taken care of. The cash
profits received were credited to an account entitled " Commissions
62 Legislative Insurance Investigation.
and Profits earned by Syndicate Participation/' kept in the ledger
of the Treasury Department at 5 Nassau street, the balance of which,
after deducting certain debit items, was carried at the end of the
year to profit and loss in the general ledger. In the final settlement
of the profits there was received an interest in the syndicate relating
to the retirement of the preferred stock of the United States Steel
Corporation, upon which subsequently a call was made, the payment
of which it^appears frOm a memorandu min October, 1903, was in-
formally authorized, with a note " to 'be noted in minutes,'' ap-
parently with the object of concealing so far as possible the syndicate
interest.
In June, 1904, Kidder, Peabody & Co. brought to Mr. Perkins'
attention a proposed venture in connection with the Mexican Cen-
tral Eailroad Company, asking the co-operation of J. P. Morgan &
Co. There were reasons why J. P. Morgan & Co. could not under-
take it. Mr. Perkins became -convinced that it was a good^ piece of
business and said that he would "talce care of one-half the arrange-
ments," which involved putting up one-half of $3,000,000, to be used
for the purchase of Mexican Central bonds to be carried on joint
accQuntr Mr. Perkins arranged to have $1,000,000 of the bonds sent
to the New York Life and that that company should carry the bonds
for coupons. Accordingly the Netu- York Life received $1,000,000 of
the bonds on June 37, 1904, and paid Kidder, Peabody & Co. $930,000,
which was repaid with the agreed interest in August 1904. About a
month later Kidder, Peabody & Co- rendered a statement to the New
York Life of the profits realized on the transaction, amounting to
$40,903.60. Kidder, Peabody & Co. knew no one in the transaction
but the New York Life and Mr. Perkins acting on its behalf. But Mr.
Perkins testifies that at his first interview with Mr. Winsor, of Kidder,
Peabody & Co., he had made up his mind to undertake the matter for
the benefit of the "Nylic" fund for agency directors and had pro-
cured the necessary money from the New York Life, because '■ Kylic "
did not have suflBcient for the purpose. This being explained to the
President and Treasurer, the check for $40,193.60, representing the
profits of the transaction, which had been drawn to the order of the
New York Life, was endorsed and delivered, to Mr. Perkins who had
it cashed. The proceeds of the check were placed in Mr. Perkins'
individual bank account, in which he kept the " Nylic " funds. The
result was that the New York Life was deprived of the profits to
which the use of its money in the manner described fairly entitled
it. The check did not go through the account of the New York Life
Report of the Committee. 03
and the receipt of the profit does not appear upon its books* ITor
was the transaction brought before its Finance Committee.
Apart from the " ledger " stocks disposed of as above stated, the
company from time to time has received through loans and syndicate
participations certain shares of stock which have been treated as
"non-ledger" or "unclaimed" assets. The company's list of these
assets embraces the following :
Date.
Acquired. Name. Shares. Date of Disposition.
1894 Mackey, Nisbet & Co.
1894 Evans &, T. H
1898 Union Pacific preferred
, 700
1903
633i
1904
r 1899-1000
5000
1900 -1000
19O4-.500O
1000
1905
2000
1899-1-000
( 1902-1000
30
1904
2100
1904
1898 Southern Railway preferred
1899 New England Gas
1900 Wisconsin Central
1901 Erie first preferred 2100
1901 Kanawha & Hocking 1000
1902 Continental Coal 1500
In addition, there were $43,000 bonds of the United States Steel
Corporation received by the company in May, 1904, in settlement of
its participation in the preferred stock above mentioned.
None of these securities has been included in any annual statement
made by the company to the Insurance Department. The proceeds
of sales of these securities made prior to 1904, appear to have been
credited to the profit and loss account. On March 19, 1904, an ac-
count was opened in the ledger kept in the treasury department
known as the "Hanover Bank Office Account" to which the divi-
dends and interest on non-ledger securities and proceeds of sales
thereof made in 1904 and 1905, together with profits on the ultimate
disposition of New Orleans railways securities b^ve been kept. There
have been received and credited to this account in 1904 and 1905,
from non-ledger assets over $900,000. As the receipts were from
non-ledger securities, the account was a convenient place in which to
charge items which It was not desired to enter in the general accounts
of the company. Thus the loss of $83,303.12 on the ultimate dis-
position ofH;he $1,S00,000 of bonds of the United States Steel Cor-
poration purchased in 1903, and nominally sold, as already stated,
at the end of the year in order that they might not be disclosed in the
64 Legislative Insurance Investigation.
ammal statement, was charged to this account against the receipts
from non-ledger assets. To this account also were originally charged
two items aggregating $100,000 paid Andrew Hamilton in March,
1 904, which was suhseqnently transferred to the real estate account
forming part of the $335,000 ahove mentioned^ and here also was en-
tered the amount of the contribution of 1904, to the Republican cam-
paign fund.
It has been the boast of the company that it has made large profits
in its dealings and. securities. Its financial transactions, under the
supervision of the Finance Committee, have been largely, including
those already mentioned, in the immediate charge of George W. Per-
kins. On his becoming, in 1901, a member of the firm of J. P. Mor-
gan & Co., his salary as an officer of the New York Life was reduced
from $75,000 to $35,000, and he has testified that he has paid to the
New York Life his share of the profits since made by his firm through
his dealings with the company. The total amount paid by him to the
company on account of such profits is $10,490.67, of which $10,413.57
was paid on December 30, 1903 ($9,730 through an ofEset of amounts
claimed to have been disbursed by him for the eompaiy in the two
prior years), and $78.10 on July 19, 1905. The explanation of the
small amount paid by Mr. Perkins to the company on account of his
share of the profits in these transactions is that they were high-grade
securities yielding little profit to the firm, and that his interest in the
firm was relatively small. The evidence is that while Mr. Perkins
has been a member of the firm of J. P. Morgan & Co., the New York
Life has purchased from it securities of the par value of $39,386,-
075.00 for the price of $38,804,918.51. Of these $3,657,000 in par
have since been sold at a profit to the company of $35,131.35, and the
market value of the -^remainder is stated to be $749,533.75 over cost.
It has been the policy of the company not to limit itself strictly to
investments. It has engaged largely in syndicate underwritings, and
these, it claims, have been very profitalDle. Exclusive of its interest in
the United States Steel Corporation Syndicate, it states that its pro-
fits from syndicate participations have, amounted during the past ten
years to $3,399,695.33. It has been the practice, at least in recent
years, to keep an account of profits from those sources in the ledger
of the treasury department against which have been entered sundry
charges of syndicate losses and other items which it was convenient'
to charge against syndicate profits, such as $9,000 for furniture for
Hanover Bank office, and the balance has been carried to profit and
loss in the general ledger.
Report of the Committee. 65
The company has also entered into enormous transactions on joint
account, where the object M'as not to buy for investment but for the
purpose of early sale on a rising market. In other -words, it has sought
to take advantage of the financial -connections and information of
those charged with its financial operations by an approach, as close as
■ possible to the banking business. The course of business has been to
make with others, a joint purchase of--securities, frequently furnishing
all the money required in carrying the securities for the interest, and
to divide the profits from the re-sale in agreed proportions. The
company claimed that its profits in cash and on bonds retired in con-
nection with these ventures have amounted to $886,604.88. While it
has made money for itself it has given large shares of the profits to
the bankers, who have used its money and attended to the business.
Thus in 1899, on ,a joint account with Goldman, Sachs & Co. and G.
W. Bartholomew, the New. York Life supplied upward of $3,000,000
for the purchase of $2,300,000 Missouri Pacific 5s at 90; they were
carried until- September, 1900, when they were sold and the profits
after paying interest were divided as follows? 11/23 or $98,172.94
to Goldman, Sachs & Co.; 1/23 or $8,924.94 to G. W. Bartholomew,
and 11/23 or $98,172.94 to the New York Life. In April, in04,
Chairman Perkins reported to the Finance Committee an " offering"
by _Kuhn, Loeb & Co., of about $3,000,000 Long Island Eailroad
Company refunding mortgage four per cent, bonds, guaranteed by
Pennsylvania Eailroad at 98, accompanied by guaraiity that our inter-
est of $750,000 in syndicate through which said bonds axe issued shall
yield a profit equivalent to one-half per cent, reduction in price of
said $3,000,000 bonds. The chairman thereupon proposed to take the
amount offered on those terms in joint account with William S. Fan-
shawe (he to sutrender to us his own syndicate interest of $100,000) —
$1,000,000 of bonds to be withdrawn as an investment for the com-
pany — which was approved." Accordingly the New York Life sup-
plied $2,984,590 for the purchase on joint account of $3,045,500 of
these bonds at 99, less than one per cent., retired $1,000,000 at 97^,
and the remainder was sold in June, 1904. The New York Life re-
ceived the proceeds and paid over to Mr. Fanshawe $22,500 for his
share, retaining $8,182.50 for its share, of the profits. In 1904 the
New York Life furnished the moneys for the purpose of purchase and
~sale on joint account with W. S. Fanshawe, of Chicago, Burlington
& Quincy joint 4s up to $1,000,000. Purchases were made in Sep-
tember and October at from 97 to 97i- and were sold from time to time
in November^ the account being closed with a profit of $4,656.20 to
each party. There were numerous transactions of this general de-
66 Legislative Insurance Investigation.
Bcription, in some of wMch the other parties to the joint account
carried their shares of the purchases, and the jiistiflcation for ihe
division of the profits is sought to he fotind in the command of expert
services.
The company has made very few collateral loans. It appears that
$50,000 was loaned for some time at IJ per cent, per annum to John
E. Hegeman, President of the Metropolitan Insurance Company,
from which company President McCall has received a similar favor,
somewhat larger in amount.
The monthly cash balances of the New York Life, in hank and of-
fice, iu this country for the past few years have run from ahout $9,-
000,000 to upwards of $19,000,000. For several years the company
maintained four accounts with the New York Security & Trust Com-
pany. Tiree accounts were active and interest was allowed at the
rate of one per cent. The fourth account (No. 4) was opened in Jan-
uary, 1901, and shows large monthly balances ranging from $3,000,-
000 to over $10,000,000. It was used to provide the Trust Company
with moneys for the purpose of loans, in consideration of which it
paid to the New York Life within J per cent, of the current rate of
money. The balance was reduced to '$8,000,000, in July, 1904, and
was maintained at this level until February, 1905, when it was discon-
tinued. Thereupon the same arrangement was made with the First
National Bank.
The New York Life also had close relations with the Central Na-
tional Bank. In January, 1900, New York City corporate stock to
the amount of about $700,000 owned by the New York Life was taken
from the vaults and delivered to the Central National Bank in ex-
change for the check of that bank for an equivalent amount. The
check was not used, but was surrendered when the securities were re-
turned a few days later. It would seem that they were taken for
clients of the bank, including the Merchants' Trust Company, to be
used in avoiding taxation. This seems to have been done upon other
occasions. No entry of the transaction was made upon the books of
the company.
There is no ground known to the committee for questioning the
soundness of the company. It is absolutely able to meet its engage-
ments and the serious abuses which have been disclosed have not af-
fected its solvency. As in the case of other companies, however, in-
creasing volumes of assets and magnitude of business are frequently
pointed to as sufficient criteria of prosperity without due attention to
the importance of economy 4n administration, and the resultant re-
turns to poilicy holders.
Report of the Committee. 67
The business of the New York Life has grown more rapidly than
that of any other company. Comparing its business for 1904 with
that for 1885, we find that the outstanding insurajice had increased
from $359,674,500 to $1,928,609,308, and its annual premium income
from $12,480,848 to $80,556,577. To ordinary insurance it has added
substandard risks on special terms, justified, it is^ said, by its experi-
ence. The greater part of this growth has been within the last few
years. Since 1898 it has increased its outstanding insurance over
$1,000,000,000 and more than doubled its annual premium income.
In each of the years 1902, 1903 and 1904 it wrote over $300,000,000
of new business, the amount for 1904 being $345,722,522, To accom-
plish this every effort has been made to stimulate the activity of '
agents. Bonuses and prizes of various sprts have been added to com-
missions. The agehcy system of this company for about twelve years
past has been to employ supervising agents on salary, establish branch
officer, pay first year's commissions with renewal commissions for a
short time only, and to add to the emoluments of agents further re-
wards through a system peculiar to the company. An organization of
agents had been formed known as " Nylie " (from the initial letters
of the corporate name). Its members are divided into various degrees
and draw benefits proportioned to their terms of continued efficient
service, the senior " Kylic " being entitled to benefits for life, upon
condition that they do not enter the service of another company. In
addition, a fund had been create'd for the benefit of agency directors,
made up of a percentage of their "salaries and certain agreed bonuses,
and to which also the company for several years contributed an
amount equal to 25 per cent, of the salary contributions. Messrs.
Perkins, Kingsley and Weeks are trustees of the funds. These, in
fact, are handled exclusively by Mr. Perkins, who mingles them with
his own in his individual bank account, making annual statements.
This is called "Nylic for Agency Directors." These methods, it is
claimed, have proved of great benefit in maintaining a satisfactory-
agency force, and also in diminishing rebates. They have been costly,
however, the cost of new business in 1904 being no less than 260 per
cent, of the margins in the first year's premises, including loading and
mortality savings. It may be added that, while strict rules have been
established against rebates, officers themselves have in certain cases
taken commissions, or have shared in the commission of agents, upon
policies issued on their own lives. This is true in one case of Vice-
President Perkins, who, in 1901, took policies for $60,000 through an
agent, in order to assist him in a contest for a certain amount of busi-
68 Legislative Insurance Investigation.
ness, Mr. Perkins receiving the agent's commissions on his own in-
surance. Vice-President Kingsley, in obtaining certain policies from
the company directly, has received an allowance equivalent to a
brokerage commission. Commissions have also been allowed to Sec-
ond Vice-President B. E. Perkins. It appears that there is a general
practice of allowing commissions to those connected withJife insur-
ance conipanies ripon their own policires.
The enormous increase of business has been obtained at heavy cost.
In 1904 the first yeaj's premiums were $13,988,186.75 and the ex-
penses of new business $11,116,864., Of this amount ^over $8,000,000
consisted of first year's commissions, advances and bonuses.
Such amounts could not be expended save at the expense of the
policy holders. Thus it was admitted by the Actuary, in a letter to
the General Manager, in March, 1903, that the rapid increase of busi-
ness in the three years previous had required a borrowing from the
surplus of about $14,000,000. It is urged that older policy holders
gain by a wider distribution of the fixed charges, and that the
amounts borrowed for new business will ultimately be made good by.
the renewal premiums paid on the business acquired. This, however,
obviously depends upon the persistence of the new business, the rate
and cost of the expansion of the business and the extravagance or
economy of the administration.
The surplus of the JSTew York Life has grown from $9,799,176 at
the end of 1885 to $47,528,140 at the end of 1904, without taking
account of about $7,000,000 excess of market value, over book value.
The gain in surplus for 1904, however, was only a little over $400,-
000, although the receipts of that year showed an excess over those of
the previous year of more than $8,000,000.
About $33,000,000 of its surplus at the end of last year was stated
in its annual report to be held to provide dividends on policies with
deferred dividend periods. The total dividends paid by the company
have considerably increased in recent years. They amounted to
$2^67,329 in 1889, and were less than that amount" until 1898, when
they reached $2,759,432. They were only $2,828,142 in 1900, but
they have since steadily increased, until in 1904 they reached. the sum
of $5,898,491. This is accounted for by the large number of deferred
dividend policies completing their periods. The rate of dividends
has diminished.
The mode of distributing surplus in this company was for many
years the usual contribution plan applied to the computation of an-
nual dividends, and the same plan is yet employed for computing
Bepdrt of the Committee. 69
.annual dividends. The plan for computing tontine diAridends under
forfeiting policies was to accumulate the annual dividends and add
the gains from forfeitures of accumulations through lapses and death.
It appears that this plan was ahandoned about ten years ago, and that
since that time the dividends allowed on these, policies have been ar-
bitrarily fixed with relation to previous dividends actually computed.
Under the nonforfeiting or accumulation policies the company em-
ploys a system of- computing, by means of hypothetical groups of
persons at selected ages, the proportionate shares of each class in the
total assets of the company at the end of the year. This method of
computation ;was adopted when the Prussian Government required
the company to separate its tontine funds by classes. It appears that
under this method, called the assets' shares system! of computation,
the funds attributed to these policies are not equal to the reserves oh
the same for the first four years. The margins over the reserves after
the first four years, it is explained, are diminished in the reports to
the German Government pro rata, a sufficient amount from what the
assets' shares really show to cover the deficiency on the polieiei? less
than four years old; and in the last year, before actually paying out
the surplus on a given class, the estimated, share of the maturing
classes is made good by putting back the necessary amounts into their
accounts. The following illustrates the manner in, which the funds
to the credit of the policies are increased in the last year, as shown by
the German reports:
10
Legislative Insurance Investigation.
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72 Legislative Insurance Investigation.
The large diminution in the retttms to policy holders which has
taken place, notwithstanding the very lalrge growth and apparent
prosperty of the company, as illustrated by the following statement
as to the annual dividends paid in the years 1885, 1895 and 1905 :
Report of the Committee.
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u
Legislative Insurance Investigation.
The apportionments made on the deferred dividend policies show
poorly m comparison with tl^e estimates furnished by the company.
The following is a table of comparisons;
Age 40 — Estimated surplus and actual results
Tontine Estimates of 1872.
Period,
Years. Estimated.
Actual.
Life 10
Life 15
Life 20
20 Payment 15
20 Payment 20
20 Year Endowment 10
, 20 Year Endowment 15
20 Year Endowment 20
$176 49
(1882)
$139 62
472 57
(1887)
262 21
943 84
(1892)
430 06
589 11
(1887)
317 90
1,243 98
(1892)
527 02
269 54
(1882)
,211 92
787 11
(1887)
413 75
1,650 79
(1892)
710 15
Tontine Estimates of 1881.
Period,
Years. Estimated.
Actual.
Life 10
Life 15
Life 20
20 Payment 10
20 Payment 15
20 Payment -. 20
20 Year Endowment 10
20 Year Endowment 15
20 Year Endowment 20
$98 81 (1891) $90 20
343 47
(1896)
156 19
793 57
(1901)
332 69
114 8S
(1891)
104 50
430 93
(1896)
181 20
954 54
(1901)
390 71
100 30
(1891)-
131 50,
538 07
(1896)
238 78
1,234 00 (1901) 564 43
Tontine and Non-forfeiting estimates, 1884.
Period,
Years.
Estimated.
10
$83 81
15
250 47
20
492 57
10
89 88
15
233 93
20
467 54
10
15
20
109 49
350 07
692 00
Tontine.
!.
Actual
Non-
forfeiting.
Life
Life
Life
20 Payment
20 Payment
20 Payment
20 Year Endowmsnt
20 Year Endowment
20 Year Endowment
(1894)
(1899)
(1904)
(1894)
(1899)
(1904)
(1894)
.(1899)
(1904)
$84 54
156 19
332 69
98^06
181 30
390 77
129 15
238 74
563 43
$73 74
147 65
220 81
81 88
178 60
257 56'
103 96
249 15
390 55
Report of the Committee. 75
The company has permitted illustrative estimates to be made and
actual results to be adapted which do not appear to be justified by
legitimate expectations. While the company does not acknowledge
any legal liability for dividends before they are apportioned, it claims
to keep its accounts in such a manner that the policy holders receive
due credit at the expiration of the agreed periods for their shares of
the surplus, including a return of what may have been used in order
to acquire new business; This is an eflEort to equalize the burden of
the large expenses of the company, which, nevertheless, rests heavily
upon the policy holders. Without its system of deferred dividends,
making available a large surplus, upon which, according to its
theory, it may draw, the company would find it impossible to expand
its business at the present rate without disclosing the real results.
EQUITABLE LIFE ASSURANCE SOCIETY.
The Equitable Life Assurance Society was organized in 1859 pur-
suant to the act passed June 24, 185^. At the end of 1904 its out-
standing policies numbered 564,594, representing $1,495,543,843 of
insurance.
It is a stock company, with a capital of $100,000, divided into
1,000 shares. By the charter the holders of the capital stock are
entitled to semi-annual dividends at a rate not exceeding 3^ per cent.,
and it is provided that' the earnings and receipts over and above
dividends, losses and expenses shall be aqcumulated. The insurance
business was to be conducted upon the mutual plan, and every five
years an exhibit was to be made of its assets and liabilities and the
policy holders were to be credited with equitable shares of the net
surplus, after deducting a sufficient amount to cover all outstanding
risks and other obligations. Before the Legislative Investigating
Committee of 1877 Henry B. Hyde, then President of the society,
tinequivocally testified that the interest of the stockholders was
limited to their semi-annual dividends, that there had been no addi-
tional advantage given to them in any manner " past, present or con-
tigent," and that all surplus accumulations were for the exclusive
benefit of the policy holders. He stated the market value to be a little
above $150 a share. From that time to the present the business has
been conducted upon the representation that it is in effect a purely
mutual company. That none of its surplus earnings belong to its
stockholders has been repeatedly asserted in the verified statements of
the society submitted to the Commissioners of Taxes and Assessments
of the City of New York.
47 ■ '"■ ' " '" '
1Q Legislative Insurance Investigation.
Stockholders alone are permitted to vote for directors. The char-
ter gives the right to the directors to confer upon policy holdeis
insured for not less than $5,000 the right to vote in person, but this
power has been exercised. The, late Henry B. Hyde acquired a ma--
jority of the stock and dominated the society until his death in 1899.
Four years before, he placed 502 shares in trust subject to revocation
during his lifetime. He reserved for himself the beneficial interest
and provided that in case of his death the trust should continue during
the life of his son James Hazen Hyde or until the latter should attain
the age of thirty years, when the shares were to become his absolute
property. In the event of the death of James H. Hyde, surviving his^
father, at an earlier age the shares were to go to those appointed by
his last will, or in default of appointment to his eldest male child, or
if none to his mother or next of kin. James H. Hyde was nearly '
twenty-three years old when his father died and under the trust deed
he had become one of the trustees on attaining his majority and was
entitled to receive proxies and vote upon the shares. It was also
provided that no votes should be- cast upon the shares except for a
person approved by him. When he reached twenty-five, by the terms
of the deed Louis Fitzgerald, James W. 'Alexander and James H.
Hyde became the sole trustees and in 1903 Louis Fitzgerald was suc-
ceeded by William H. Mclntyre.
In February, 1905, deeming the control of the stock by James H.
Hyde to be prejudicial to the interests of the society. President James
W. Alexander with some thirty-five other ofiicers and agents of the
society, memorialised the Board of Directors to extend to policy
holders the. right to vote. The petitioners stated that from " their
practical experience in the conduct of the society's business " they
" have become convinced that its continued welfare and progress and
the due administration of the trust funds in its charge render a
change necessary, and that it is in'compatible with present public
opinion, as well as with the interests of the society and its beue-
ficiaries, that- the policy holders as the real parties in interest should
continue to be without any voice in the administration of these
funds, but that the entire power of selecting directors should be
vested in and exercised solely by the holder for the time being of a
majority of the society's nominal capital stock." The board then
adopted a resolution that in its opinion "the policy holders should
be given the right to vote for directors and that steps be taken for
carrying this principle into effect at the earliest possible moment."
A committee was appointed " to arrange the details for carrying the
Report of the Committee. Y7
subject into execution^ and in connection therewitji the settleinent of
the allied question of indemnification of stockholders," and this com-
mittee in March, 1905, submitted to the board a report unanimously
recommending that the charter should be amended so as to provide
that twenty-eight of the fifty-two directors should be elected by the
policy holders. The report did not deal with the matter of indemnity.
The Board of Directors unanimously adopted the form of amended
charter as proposed by the committee, and this was subsequently sub-
mitted to the Superintendent of Insurance for approval. In April,
1905, a further amended charter was unanimously adopted by the
Board of Directors substantially to the- same effect, save that it pro-
vided for the election of the entire Board of Directors in two years
instead of four. An action was brought in the Supreme Court by
Franklin B. Lord, a stockholder, in which an injunction was granted
by Mr. Justice Maddox at Special Term, restraining the company
from carrying oiit the plan. Subsequently a demurrer was inter-
posed to [r. Lord's complaint, and this demurrer was overruled at
Special Term by Mr. Justice Keogh. On appeal these decisions were
affirmed by the Appellate Division of the Supreme Court in the
Second Department, Mr. Justice Woodward writing the majority
opinion. While the learned Justice is of the view that under th«
general reserved right to amend charters the Legislature can give to
policy holders the right to vote for directors, it is held that section
52 of the Insurance Law, despite its comprehensive terms, was not
intended to confer ■apon the directors the right to amend the charter
in this manner. Appeal to the Court of Appeals is now pending.
In connection with the original petition for mutualization, serious
charges were made against James H. Hyde and his administration
of corporate matters within his charge, which led to counter-charges
on his part against President Alexander. The matters brought to
light through the controversy which ensued were of such serious im-
port that in April, 1905, the Board appointed a committee, consisting
of H. C. Prick, E. H. Harriman, Brayton Ives, Cornelius N. Bliss,
M. E. Ingalls, James J. Hill and D. 0. Mills, which was " charged
with the duty of thoroughly , investigating and reporting upon the
present management of the society." Messrs. James J. Hill and D. 0.
Mills were unable to serve. The others took up the investigation and
on June 2 made a report severely criticising the management. The
committee found that owing to the practice of nominal transfers to
qualify directors the title of a great majority of the Board was open
to doubt; that the relations of the Boaxd to the exercise of the so-
78 Legislative Insurance Investigation.
ciety's powers had been practically nominal, these powers having been
delegated to officers and committees which had been yuilty of serious
irregularities ; that the society's methods of doing business wer5 un-
systematic, and that there was a " general looseness in the administra-
tion of its affairs requiring proinpt and thorough rectification."
There were " excessive salaries,! excessive commissions, excessive ex-
penses, superfluous offices," and " a general lacking in the organiza-
tion of that strong moral fibre so essential for the accomplishment of
satisfactory results."
Soon after the first disclosures it became evident that in order to
restore public confidence a change in the control of the stock would
be necessary. Mr. Hyde says that some time prior to the Prick re-
port he received four offers for the trust stock. The first was from
George J. Gould, a director of the society; the second was made by
Mr. Prick of $5,000,000 in cash for the entire holding and $3,500,000
for one-half; a third offer was $1,000,000 from Vice-President Tar-
bell, purporting to represent a syndicate, and the fourth offer was of
$7,000,000 from George -W. Young, who had been at the head of the
United States Mortgage & Trust Company, a subsidiary institution
of the Mutual. As the dividends upon the Hyde trust stock, which
was the subject of these offers, were limited to $3,514 a year, and the
society had continuously represented that its accumulations belonged
to its policy holders> it is evident that the control of the stock must
have been regarded as affording enormous collateral advantages to
those interested in financial operations,, unless it was believed that
the methods of the society in apportioning dividends, as hereafter
explained, afforded a basis for a claim to some share of the surplus.
These offers were declined by Mr. Hyde, who testifies that he first
offered to put the stock in trust for five years and then suggested
that the society should buy it ; but this was beyond its legal power.
The week after the Prick report the 502 shares were sold to Thomas
F. Eyan for $2,500,000 in cash. It was a condition of the purchase
that Paul Morton should become the chief executive officer of the.
society and have a free hand in its reorganization. Accordingly on
June 9, 1905, the by-laws having been suitably amended, Mr. Morton
was chosen Chairman of the Board of Directors and the resignations
of the executive officers were placed in his hands. The purchase was
then completed. As Mr. Ilyde had not yet reached the age of thirty
the transfer by the trustees was supplemented by individual transfers
on his own part and on that of his mother and sister, an appointment
in favor of Mr. Eyan under a codicil of his will, and a covenant
Report of the Committee. 79
against revocation, upon the breach of which he was to repay the
purchase price. Both parties to the transaction claimed to be actu-
ated by philanthropic motives. Mr. Hyde stated that he was con-
vinced that the stock control should cease to be vested in any one per-
son and that he had parted with it in the interest of the policy hold-
ers. Mr. Eyan has testified that he was influenced by a desire to
avoid a panic in business and to render a public service in making
jjossible the rehabilitation of the society; it was a part of his plan
to place the shares as soon as acquired in a voting trust composed of
Honorable Grover Cleveland, Mr. Justice Morgan J. O'Brien and Mr.
George Westinghouse. Significance has been attached -to the appre-
hension with which the purchelse, even with this modification, was
viewed in one important financial quarter. It appears that Mr. E. H.
Harriman, who, formerly active as a member of the Board, had re-
signed on the day the report of the Frick Committee was presented,
strongly objected to the purchase by Mr. Ryan exclusively. The
testimony of Mr. Ryan is that Mr. Harriman demanded that he should
have a share in the purchase and an equal vote in the management;
that if the stock was to be put in trust he should have the right to
name two additional trustees; that he asserted that Mr. Ryan would
not be able to carry out the plan without his aid, and that if his
wishes were not met his whole influence, financial and political,
would be thrown against him. Mr. Ryan adds' that in the course of
one of their interviews Mr. Harriman referred to the probability of,
action by the Legislature, saying that in that event his influence for
or against him would be important. Mr. Harriman's testimony is
that he criticized the proposed purchase when he first heard of it;
that Mr. Ryan invited his co-operation, and that, he did assist in
procuring the election of Mr. Morton; that Mr. Ryan told him that
nothing further would be done without a conference and his consent,
" and that he was much surprised when iilformed that the matters had
been concluded without further consultation; that resenting thjs he
offered to take one-half of the stock on condition that two additional
trustees should be named^by him and stated that if he was not
satisfied as to the purity of Mr. Ryan's intentions he should oppose
him in every way. He does not recall referring to legislative action
or to political influence, although possibly he may have mentioned
the latter. He says he had the deliberate intention of using hia
entire influence against Mr. Ryan provided he " saw any indications
of imnroper influence in connection with the Equitable or any of
ics subsidiary companies."
The deed of transfer of the 503 shares to the three trustees above
80 Legislative Insurance Investigation.
named was executed by Mr. Eyan on June 15, 1905. It recited the
plan adopted by the "directors for the mutualization of the society, the
litigation which had prevented its consummation, and that the deed
was executed to effect, so far as practicable, the result thus sought
to be attained. Accordingly the trustees were authorized to take, in
their discretion, any action necessary or proper to carry the plan of
mutualization into effect so as to secure to the policy holders the
right to elect directly twenty-eight directors or a like proportion of
the entire nuniber of the board; but no steps have thus far been
taken in this direction. The trust deed further provides that the
trustees shall so vote the shares that out of every thirteen persons
voted for seven shall be policy holders selected in accordance with
the wishes of the policy holders to be expressed by written requests
addressed to the trustees in TSTovember of each year by holders of
policies in force for not less than a year, and that the remaining six
shall be selected by the trustees in their uncontrolled discretion. The
object is stated to be that of the entire fifty-two directors, twenty-
eight shall be policy holders " selected by or on behalf of the policy
holders." The trust deed does not, however, provide explicitly that
in voting for directors to represent the policy holders the trustees
shall be governed by the voice of a plurality of those indicating their
wishes. In a letter dated September 18th, addressed to the Com-
mittee by Honorable Grover Cleveland, it is stated that the trustees
were at once confronted with the conditions which had resulted in
such numerous resignations from the board as to make it essential
to reinforce the directorate without delay. They believed it to be
their duty to act in the matter in such a way as "to further the
scheme of mutualization, which had become the declared policy of
the society," and therefore determined that the persons to be recom-
mended should be taken entirely from policy holders. On June 16th,
they -issued .a notice to the policy holders acquainting them
with the provisions of the deed, and requested an expression of
preferences with, reference to the vacancies. The notipe was given
wide circulation through the public press, and by_ mailing copies to
numerous policy holders. In response the trustees received representa-
tives from a number of associations of policy holders in different locali-
ties, who gave, advice concerning the choice of those they represented,
but with this and diligent effort in other ways to secure information,
they were able to recommend on June 27th only nine persons for
election. The next day a further notice was published in the press.
The result down to the date of the letter had been that twenty-one
Report of the pommiUee. 81
members "of such character and business -ability as insures the faith-
ful and intelligent discharge of their duties " had been, added to the
board, all save two being policy holders. Mr. Cleveland adds: " There
are probably nearly half a million individuals who are policy holders
in the Equitable Society and yet it would be giving a high estimate
to place the number who have thus far made the least effort, directly
or indirectly, to acquaint the trustees with their preferences at
35,000 ; iind their desires when made known have often been =0
palpably inconsiderate or based upon such misconception that they
could not, witlj safety, be followed. The trustees have derived the
best aid from policy holders in cases where their representations have
been made through associations of the insured, regularly organized,
and thus enabled to sift and reduce to sensible concentration the
multiplicity and contrariety and the frequently misdirected want, of
local sentiment."
Mr. Cleveland explained the failure of the trustees to put in
operation the plan of mutualization " made mandatory upon the trus-
tees under the terms of the trust agreement " by reference to the
Lord suit, in which an appeal was then pending to the Appellate
Division of the Supreme Coilrt. In his testimony, Mr. Eyan states
distinctly that he will do all in his power to aid the policy holders
in acquiring the right to elect a majority of the board if it be held
that the Legislature is competent to confer it. In a letter addressed
to Mr. Morton, under date of June 26, 1905, Mr. Eyan said that he
would not under any circumstances sell the stock except to the society
or under some plan for the benefit of the society or its policy holders,
but if it were found desirable to retire the stock or to acquire it for
the policy holders it would be at Mr. Morton's disposal at cost, with
four per cent, interest, less dividends. He 'testified that he had not
considered the question of the retirement upon any other basis. The
trust of the 503 shares is to continue for five years from June- 15,
1905. In furtherance of Mr. Ryan's declared policy it is provided that
it shall continue so long as the trustees shall deem advisable, and
Mr. Eyan agrees upon the expiration of any period of five years to
execute a deed of continuance. But under section 30 of the General
Corporation Law lilniting such trust agreements to five years it would
seem that such an agreement imposes no legal obligation.
In order to establish beyond question -the qualifications of a ma-
jority of the board Mr. Eyan made a further purchase of eighty-seven
shares at $3,500 a share, which at the same price has been distributed
among directors. ,
82 Legislative Insurance Investigation.
The Superintendent of Insurance began an examination of the
affairs of the society in May^ 1905, and made a preliminary repoi't as
of June 21, 1905, and a further report was made to him by his ex-
aminers on October 17, 1905. These reports called attention to grave
abuses of management and additional irregularities of the former ad-
ministration have come to light in the course of the investigation by
your Committee.
Mention has already been made of the fact that the directors of the
society have not performed the functions with which they were
charged. For the most part they have been figure-heads invited by
those in control of the stock to listen to such annual reports as might
be submitted by the officers. They went through the form of select-
ing officers and delegated their powers to committees. Those charged
with the actual management of the society failed to realize their
responsibility to the policy holders, involving the society in unwar-
ranted outlays and entering into transactions in which through their
relations to the Society they were enabled to further their individual
interests.
In February, 1888, Mr. Henry B. Hyde being the president and
James W. Alexander the vice-president of the society, resolutions were
adopted by the finance committee fixing their compensation. It was
recited that these officers had surrendered to the society an agreement
for commissions on premiums made many years before, which if en-
forced would have given them larger compensation than they had.
received, and that they had performed extraordinary services not
usually required and assumed large pecuniary obligations for which
no compensation had been made. It was then resolved that the presi-
dent should receive a salary of $50,000 per annum and the vice-presi-
dent such salary as was then paid him or "as further fixed by the
president," and in consideration of extraordinary services theretofore
or thereafter rendered and in "lieu of commissions there should be
paid to Mr. Hyde an additional sum of $35,000 yearly, both salary
and extra compensation to date from January 1, 1886. It was fur-
ther resolved that on the death of Henry B. Hyde there should be
paid to his widow, Annie F. Hyde, an annuity of $35,000 during her
life, and on the death of James W. Alexander an annuity to his
widow, Elizabeth B. Alexander, of $18,000. Agreements to this effect
were executed. The preamble and resolutions authorizing these pay-
ments were entered in- special minutes which were not spread upon the
records of the finance committee. Apparently neither the resolutions
nor the contracts executed und^r thenr\^;ere ever submitted to the
board of directors in any form. The pension to Mrs. Hyde was paid
Report of the Committee. 83
■ — )
until 1905, when upon advice of counsel it was discontinued. The
reference to the agreement with Mr, Hyde for the payment of com-
missions is apparently based upon a " verbal understanding " with
the board of directors, to which he testified before the Legislative
Investigating Committee in 1877. Under this he was paid 2^ per.
cent, on the annual surplus, receiving a small salary in addition. His
total annual compensation from both sources from 1873 to 1874 was
$57,000. This arrangement, however, expired in 1874, as sworn to
by him before the Legislative Investigating Committee of 1877.
He was ihen placed on an annual salary of $37,500 and no new con-
tract was made on a percentage basis. It was claimed that in 1875
there was due him under his contract for the past five years $63,822,
which he surrendered to the society. But in the written opinion of
the society's counsel it is stated that the society in each of the years
1875 and 1876 voluntarily paid him $20,000 in addition to his salary
on account of the surrendered contract. What agreement had been
made prior to 1888 with Mr. Alexander for the payment of commis-
sions or extra compensation is not known.
In the past few years, prior to the reorganization, salaries were un-
warrantably increased. Henry B. Hyde received $75,600 from 1886
to 1894; subsequentlj', until his death in May, 1899, he was paid at
the rate of $100,000 a year. When James W. Alexander then became
president his salary was fixed at $75,000, which was increased in 1903
to $100,000.
James H. Hyde was graduated from college in 1898, and in Novem-
ber of that year was made second vice-president. In May, 1899, on
his father's death, he was made vice-president, with a salary of $25,-
000, which was increased in 1900 to $30,000, in 1902 to $75,000, and
in 1903 to $100,000. The advance to $75,000 in the salary of this
young man, only twenty-six and comparatively inexperienced, was
plainly a recognition of his stock control. The advance the next year
to $100,OjOO was upon the recommendation of Messrs. Chauncey M.
Depew and Valentine P. Snyder, a sub-committee of the Executive
Committee; and the president's salary was similarly advanced to keep
up to that of the vice-president. Second vice-president Tarbell's sal-
ary was fixed at $40,000 in 1899, increased to $50,00^ in 1900 and
thereafter, including an allowance of $10,000 for expenses, was made
$60,000 a year. Mr. Tarbell had received $40,000 as third vice-presi-
dent in 1897 and 1898. His successor, George T. Wilson, was paid
$25,000 in 1900 and 1901 and $30,000 thereafter. The fourth vice-
president, W. H. Mclntyre, a close associate of Mr. James H. Hyde,
84 Legislative Insurance Investigation.
was paid $10,000 in 1900,' $12,000 in 1901, $30,000 in 1903, $25,000
in 1903 and 1904 and at the rate of $30,000 until the reorganization
in 1905. The salary of Secretary William Alexander was $18,500
from 1889 to 1898 and thereafter remained at $25,000. Comptroller
■Thomas D. Jordan received $35,000 from 1893 to 1900,^$30,000 from
1902 to 1904 aad $35,000 until his connection with the society ended
in 1905. As stated in the report of the Frick Committee: "There
are in 1905 thirteen (13) executive officers in the society who held
the same positions in 1900. In 1900 these thirteen officers received
salaries aggregating $397,600. In 1905 the same officers received
salaries aggregating $448,500, an increase of $150,900 or 51 per cent.
Of the thirteen officers three have received no increase in salary since
1900; Deducting these, the average rate of increase of the other ten
has been 61 per cent. The salajies of six of the thirteen sTiow an
average increase of 86 per cent." The following comment is made by
the Prick Committee upon salaries of subordinate employees : " In
those departments of which the heads have received no increase of
salaries the salaries of the working force have remained constant or
have shown such slight increases as to appear to have been no more
than consisteiit with the generally tendency of salaries in all indus-
tries. On the other hand, those officers who have theniselves been
rapidly advanced have quite readily seen that their subordinates share
in their prosperity — at the society's expense. In the vice-presideiit's
office four employees who received in the aggregate $5,444 in 1900
received $13,000 in 1905, an increase of 155 per cent. In the second
vice-president's office six employees who received $10,730. in.' 1900 re-
ceived $24,840 in 1905, an increase of 133 per cent. The- total sal-
aries paid to employees of the president's office have increased 48 per
cent, since 1900; of the vice-president's office 134 per cent, and of the
second vice-president's office 136 per cent. The total office pay-roll
of the society increased from $770,383 in 1900 to $1,177,501 in 1904,
or 53 per cent. As compared with this the total income of the society
increased but 36 per cent, from 1900 to 1904." Considerable amounts
were also received by- the executive officers as fees for attending direc-
tors' and committee meetings.
Vice-president Hyde was also vice-president of the Equitable Trust
Company, the Mercantile Trust Company and the Commercial Trust
Company, in which the Equitable was heavily interested, receiving
from these companies in 1904 salaries of $13,000, $13,500, and $3,500
respectively, or $37,000 in all.
The salary of Mr. Morton as chairman of the Board of Directors
Report of the Committee. 85
was fixed at $100,000, but in August, 1905, his salary and tlie sal-
aries of the other officers were reduced twenty per cent.
Disbursements for so-called legal expenses have been unwarrant-
ably large, and would seem to be no doubt that many improper ex-
penditures have been charged to this account. Irregular practices
have been facilitated by the absence of proper vouchess detailing with
suitable particularity the legal services rendered. Items amounting to
maaay thousands of dollars have been disbursed in currency. In some
eases vouchers have referred to' fictitious legal proceedings. There
has been no check upon the discretion of the executive officers.
Large amounts have been expended in connection with legislative
matters. Eeference has already been made to the instructions given
by Comptroller Jordan to Andrew C. Fields, showing that the Hqui-
tdble maintained a close supervision over all legislative proceedings
in New York which related either to insurance matters or to any of
the numerous interests with which through its investmnets or rela-
tions to subsidiary companies the Equitable or its officers were interr
ested. In the absence of Mr. Jordan and Mr. Fields it has not been
possible to ascertain the amount expended in the effort to control
legislation in this State, but it sufficiently appears that payments were
made from tinie to time in order to equalize accounts between the
Equitable, New York Life and the Mutual. On behalf of the
Equitable Andrew Hamilton had charge of the western part of the
country; the following payments to him, not believed to be a domplete
list have been proved:
1895 $3,833 33
1897 14,516 49
1898 3,866 00
1899 9,341 66
1901 2,500 00
1903 13,333 00
Total $45,390 48
There were also payments to the representatives of the Mutual for
work in connection with legislative matters in the MutuaVs territory.
Among the disbursements charged to legal expenses appear annual
retainers of $20,000 paid to Chauncey M. Depew and $5,000 (for one
year [1900] $7,500) to David B. Hill. Mr. Depew testifies that the
payments to him began about 1888 and that his services consisted of
86 Legislative Insurance Investigation.
advising the late Mr. Hyde in regard ta matters of investment, settle-
ment of controversies and troublesome questions of various sorts; and
that after Henry B. Hyde's death his son, under the former's instruc-
tions, requested a continuance of the relations, in pursuance of which
Mr. Alexander from time to time consulted him. During this time
Mr. Depew was' a director and member of the Executive, Committee.
The testimony as to the services is very general, and it does not ap-
pear that outside of those which the society was fairly entitled to
receive from him as a director, the services were such as to warrant
the payments made. It doesjiot appear what services were rendered
by Mr. Hill, who became a United States Senator in 1892, and whose
retainer, it seems, began in 1895. In justice to him it should be said
that when the Committee desired his testimony he was too ill to ap-
pear before it and there was not sufficient time to take, his testimony
by deposition, as he requested.
The Equitable contributed to the Eepublican E'ational Committee
$50,000 in 1904; undoubtedly contributions were made in prior na-
tional compaigns, but their amount has not been stated. For many
years the society has made an annual contribution of $10,00 to the
Eepublican State Committee through Senator Piatt.
Thomas Coman, at one time prominent in local politics, being
Courthouse Commissioner under Mayor A. Oakley Hall in 1871 and
President of the Board of Aldermen of Ifew York City from 1868 to
1873, has been employed by the society since 1883. His salary for some
years was $6,000 and has recently been reduced to $5,400. He has
been in the real estate department, under Comptroller Jordan, and
his principal duties have been to represent the society in matters
bringing it into contact with the departments of the City government.
His good offices have also been availed of by the officers of the society
in connection with their personal assessments.
In addition to the many payments charged to legal expenses with-
out suitable identification of purpose, opportunities for improper out-
lays were afforded by the practice of maintaining irregular accounts.
Bank accounts were kept with the Mercantile Trust Company and
the Equitable Tmst Company in the name of Marcellus Hartley,
Trustee, and Greorge H. Squire, Trustee, to which were credited
mqneys belonging to the society arising from syndicate participations
or other transactions. The account in the name of Mr. Hartley (now
deceased) ran for several years. In April, 1903, its balance was transr
ferred to the Squire Account, on which there were few drafts, the
greater part going to the credit of the most notable of the irregular
Report of the Committee. 8Y
accounts, the one kept with the Mercantile Trust Company, under the
name of the " J. W. Alexander No. 3 Account," or the " Alexander
and Jordan Account." To this last mentioned account there were
debited in 1898 $249,997.11, as the amount due on notes of Messrs.
Alexander and Jordan, which up to that time had been carried by the
trust company as bills receivable. It is supposed that it had been the
practice of officers of the. society to borrow from the trust company in
their individual names moneys required for certain disbursements
which it was hot desired to enter on the books of the society, and that
these were renewal notes made by the then officers for the balance
due on such loans. The majority ^of the debit items in the account,
since 1898, consist of checks to the order ofMessrs. Alexander, Jor-
dan, Melntyre, M. Murray, the Cashier, and others connected with the
society. The explanation is that one of the officers of the society,
usually Mr. Jordan, would obtain currency from the Cashier, signing
a cash ticket which, generally on the same day, would be taken up
by a cheek of the Mercantile Trust Company. In this way cash of the
society was taken for undisclosed purposes and reimbursement made
through a loan from the trust company. No record was kept "u the.
books of the society of these loans and Murray knew nothing of the
matter in which the Mercantile Trust Company booked the items or
of the purposes for which the moneys were used. On account of the
absence of Jordan, Fitzgerald and Melntyre, whom the Committee
has not been able to serve with subpcenas, and the illness of Mr.
Alexander, who has been unable to testify, it has been impossible to
obtain definite information upon this subject. Mr. Hyde testifies that
in 1903 he was requested by Mr. Alexander to write a letter to the
Mercantile Trust Company, promising the indemnity of the Equitable,
and that it was then explained to him that the account had been used
for the purpose of settling suits, for the purchase of stock, the bid-
ding up of which by speculative interests to a fictitious value based on
claim~s to the surplus had proved injurious to the company, and for
political contributions. The total debits to the account on June 10,
1905, amounted to $1,874,966.60, described as follows:
Notes, Alexander and Jordan $249,997 11
Checks to order Alexander and Jordan 24,500 00
Checks to order T. D. Jordan 59,500 00
Checks or order J. W. Alexander 705,671 85
Checks to order W. H. Melntyre 212,450 00
CheckB to order M. Murray, Cashier 480,303 82
88 Legislative Insurance Investigation.
Cheeks to order Alexander and Green $17,500 00
Checks to order Alexander and Colby 4,350 00
Transfer account, Louis Fitzgerald 40,000 00
Interest . ., 80,793 83
Total $1,874,966 60
=^= . ' =
The credits to the account were as follows:
December 15, 1898, by check T. D. Jordan $3,900 00
January 3, 1899, for cheeks Equitable Life Assurance
Company .• 687,373 9^)
January 3, 1901, by check Mercantile Trust Company. . 199.834 01
December 30, 1901, by check George H. Squire, Trustee 100,000 00
October 4, 1903, by check T.D. Jordan and George H.
Squire (drawn on the Squire Trustee Account) 65,000 00
August 18, 1903, by check James H. Hyde (proceeds of
a syndicate participation) • 36,503 13
February 4, 1904, by cheek Equitable Life Assurance
Society 100,000 00
Total $1,183,511 13
I ! — !
The credit of $687,373.99 paid by the society on January 3, 1899,
appears to have been intended to offset four cheeks to the order of
Mr. Alexander aggregating a like amount charged to the account on
December 30, 1898. On June 10, 1905, the Trust Company charged
the society with the balance due by transfer to a new account, but the
society repudiated all liability, whereupon the original account was
reopened. It was finally settled by 'the individuals concerned on the
payment of the principal of $607,645.77, interest to the amount of
$84,809 being waived by the Trust Company. $317,500 was raised by
the sale to Mr.' Eyan of eighty-seven shares of the stock which had
been purchased by means of the account, $313,000 was paid .by Mr.
Hyde, and the remainder apparently by Messrs. Alexander and
Jordan.
From a recent statement of Mr. Morton to the policy holders it
appears that economies amounting to over $600,000 a year have al-
ready been introduced by the new administration. With obvious refer-
ence to some of the matters which have been mentioned and to certain
syndicate participations hereafter noted, Mr. Morton says: " Under the
past management transactions involving the expenditure of large sums
Report of the Committee. 89
of money ha,Te been carried through frequently without any proper
authority of the Board of Directors and with very meagre bookkeeping
records, so that it has been difficult in many instances to secure ex-
planations of certain transactions which have taken place during the
last ten years, some of which involve a financial loss to the society.
The liabilities disavowed by the society and the amounts restored to
the society approximate $1,000,000, and legal proceedings have been
instituted for the recovery of considerable additional sums. It will
be the policy of the new administration of the society to insist on an
independent audit of its accounts as to its fiscal condition once each
year, the result of which will be published." Tt is further stated that
the society will depend upon its policy holders to see that there is no
unreasonable legislation enacted. "It may from time to time call
their attention to measures calculated to do them harm, but under no
circumstances will it be a party to any corrupt methods in preventing
" strike " legislation. It is definitely announced that " it will be the
policy of the society hereafter not to make contributions to political
campaigns."
According to its statement of December 31, 1904, the total admitted
assets of the Equitable amounted to $413,438,380.84, and it had a
surplus over liabilities of $80,394,861.31. To reach this result there
had been deducted only $1,514,639.90 for agents' balances which the
Insurance Department did not admit as assets. But it had been the
practice of the company for maq.y years in order to evade the ruling of
the Department to make assignments to trust companies, in return for
cash credits, of large portions, of its advances to agents. The assign-
ments in force December, 1904, running to the Equitable Trust Com-
pany and the Commercial Trust Company of Philadelphia, aggregated
$5,813,184.87. The society covenanted that the amounts assigned
were justly due and that the annual renewal commissions of the
debtors computed ifi a described manner were equal to the amount of
the advances. Through this arrangement the society swelled its assets
for the purpose of its annual statement and enabled the trust com-
- panics in which it and many of its officers were interested to reap the
profit represented by the excess of interest upon the assigned balances
over the amount allowed to the society upon its deposits. Deducting
the amount of assigned agents' balances from its statement in cash,
the surplus at the end of 1904 would have been reduced to $74,581,-
676.44, or, ignoring the Department rule and including the entire
amount of agents' balances, the surplus would have been $81,909,-
501.21. In the report made by hife examiners to the Superintendent
of Insurance as of June 30, 1905, after deducting all the agents'
90 Legislative Insurance Investigation.
balances, both assigned and unassigned, and revaluing the property of
the society, the surpliis over all liabilities was then found to amount
to $63,008,624.68. The public accountants retained by the new ad-
ministration recently have certified that the accounts have been ex-
amined and the properties reappraised, with the result that the
surplus, including agents' balances, has been found (as of September
30, 1905) to be $67,142,865.43.
The items entering into the Accountants' statement are as follows:
Assets.
Real estate, office buildings $34,849,800 00
Other real estate 3,700,470 00
$28,550,370 00
Secured loans on mortgage $85,990,060 00
On society's policies 27,370,946 04
On other collateral 415,000 00
113,776,006 04
Bonds, stocks and other marketable securities 235,538,062 00
Cash 30,727,986 01
Premiums in course of collection or collected and not .
reported 5,895,443 64
Agents' balances and miscellaneous advances 7,664,640 76
Interest or rentals due or accrued 4,014,093 65
t ■
Total $416,166,500 10
Liabilities.
General insurance reserve (being net
present value of outstanding pol-
icies in force September 30, 1905). $343,802,061 00
Current liabilities under policies and
policy contracts 2,556^794 81
Commissions and current expenses. . 2,165,414 19
Premiums, interest and rents pre-
paid, and sundry deposits 1,399,364 68
— : $6,121,573 68
Capital stock 100,000 00
Surplus, including profits for distribution on deferred
dividend policies 67,142,865 43
Total ..$416,166,500 10
Report of the Committee.
91
The committee has no reason to doubt the substantial accuracy
of this report.- If the agents' balances and miscellaneous ad-
vances stated by the accountants to amount to $7,664,640.76, were
excluded, the surplus, according to the department rule, would have
been $59,478,224.66.
A large part of the reduction has been due to the revaluation of
the real estate holdings. The book value of the real estate on De-
cember 31,-1904, was $36,895,647.44. Of this, $31,365,000 was the
book value of fifteen office buildings, which had actually cost nearly
$38,000,000. The book value (at; said date), cost and net return
from these buildings is shown in the following table:
3
Book Value.
Actual Cost.
Percent-
age on
Net Income. Book
Value.
New York Building. . . $15, 510, 000 00
Boston Building 1 , 487, 000 00
St. Louis Building ... 1, 000, 000 00
Denver Building 1, 700, 000 00
Des Moines Building. . 500, 000 00
Memphis Building . . . 130, 000 00
Santiago, Chili, Build-
ing 225, 000 00
Mexico Building 70, 000 00
Paris Building No. 1.. 825,000 00
Paris Building No. 2.. 2, 126, 150 12
Berlin Building 2,000,000 00
Vienna Building 1 , 100, 000 00
Madrid Building 1, 500, 000 00
Melbourne Building.. 2,000,000 00
Sydney Building 1,200,000 00
$18,781,640 22
2,342,979 73
1,220,277 48
1,551,817 97
5.^3,523 45
197, 542 90
234,
61,
843,
2,126,
1, 912,
1,294,
1,961,
2,864,
1, 959,
770 94
656 56
120 99
150 12
197 60
091 09
258 50
452 16
300 10
$415,692 00
23,459 00
18,603 00
73,471 00
10, 195 00
7, 924 00
9,047 00
4,560 00
34,811 00
43r525 00
66,329 00
24,817 00
44, 660 00
31,272 00
30,268 00
2.68
1.58
1.86
4.32
2.04
6.09
4.02
6.51
4.22
2;04
3.32
2.20
2.98
1.50
2.52
$31,365,000 00 $37,884,779 81
In order to bring those properties, which were earning less to a
three per cent, basis, the examiners of the department valued them
at $26,366,366. This the society's accountants have reduced to
$24,849,800, of which $12,175,000 is stated to be the value of the
main office building, that is about two-thirds of its cost.
Portions of this building have been leased at inadequate rentals.
The lease to the Equitable Trust Company, which was renewed last
May at a rental of $20,000, is considerably below the rental value,
which has been stated to be $30,000. In his report as of June^20,
92 Legislative Insurance Investigation.
1905, the Superintendent^ of Insurance reviewed at length the leases
.to the Mercantile Safe Deposit Company, the Security Safe Deposit
Company and the Missouri Safe Deposit Company, organized by the
-late Henry B. Hyde, and occupying premises in the office buildings
in New York, Boston and St. Louip, respectively. These leases were
made for terms of extraordi'nary fturation upon conditions most un-
favorable to the society. ;
The original book value or cost of the real estate of the society,
exclusive'of the office buildings, amounted to $6,721,678.20; the book
value on December 31, 1904, was $5,552,497.32.
Included in this was the property at Depew, New York, acquired
through foreclosure in 1903. A loan was made ^)y the society of
$250,000 to the Depew Improvement Company, a corporation engaged
in the development of the Village of Depew, near Buffalo, in January,
1898, upon' 1,575 lots which were appraised by the, appraiser of the
society at $393,750. Prom' the sequel it appears that the loan was an
unfortunate one and would hardly have been made upon its merits
by a conservative management. The society's appraiser, after stating
the facts pertaining to the village, its business, interests and growth,
added, " at present the pillage has not improved as rapidly as ex-
pected, due largely to the depression of business in the past two or
three years, many of the shops having been closed down and just about
starting up again." He recommended that if the society entertained
the application for the loan the mortgage should cover 450 additional
acres belonging to the company, but this recommendation was not
followed. Instead, the society seems to have relied upon an appraisal
made by a Buffalo- real estate man valuing the property mortgaged at
$768,000, apparently an extravagant estimate based upon expected
developments. In 1900 the department appraised the property at
$225,000, and suggested that $97,000 of the loan be called. In 190],
on a further appraisal, it was valued by the department at $150,000.
Foreclosure proceedings were instituted in 1902 and the property was
acquired by the society at a cost of about $275,000. Mr. Depew was
a member of the Executive Committee at the time the loan was made,
but testifies ^at his connection with the company, save for the pur-
chase of a one-fifteenth interest, was perfunctory, and that while he
was cognizant of the negotiations relating to the loan, 'he neither
advocated not advised it, and although present, -took no part in the
proceedings of the Executive Committee when it was passed. Ec-
cently, after the matter had come to public attention, procfeedings
which had long been pending to effect a reorganization were hurried
Report of the Committee. 98
through, and the societj' on turning over the property was reimbursed
the amount it had lost.
While it is impossible to state the details of its real estate tran's-
actions, it may be noted that properties owned by the society have
been placed in the names of dummies, to whom building loans have
been made, the society going through the form of taking mortgages,
while, i^i fact, it was improving "its own property. In the ease of
properties in New Jersey, it has made deeds to employees, taking back
a mortgage and an unrecorded deed to evade the statutory I'jnilation
as to the time during which real property could be owned. Before
the end of the yeai in which the mortgage was taken it would be
canceled, the deed recorded and then the property reported as real
estate freshly acquired, the society being thus enabled to start upon a
new term of ownership. A number of parcels obtained through fore-
closure have been sold during the last year. The remainder are valued
by the society's accountants as of September 30, 1905, at $3,700,470,
making the total appraised value of its real estate on that date,
$38,550,370.
The examiners of the Insurance Department have reported to the
Superintendent that the outstanding loans as of June 30, 1905, were
1,176 in number, representing $83,731,233.16, and that the land and
buildings covered by the mortgages had been appraised and the ab-
stracts of title searched and certified, with the result that at no period
of the society's existence were the investments of this class found to
be in a more satisfactory condition. Only $19,366.91 of interest was
due and unpaid, and the average earnings were 4J per cent, per an-
num. It is claimed that it has' been found advisable to require all
the fire insurance upon mortgaged properties to be placed through one
broker. Since 1900 Frank B. Jordan, a son of the former Comp-
troller, has had the monoply of this business, and has earned com-
missions running, according to his statement, from $1,983 in 1901
to $7'",461 in 1905 (to November).
The collateral loans reported in the annual statement of the society
have been largely in excess of those actually made. Pro forma loans
have been made at the end of the year, in order to reduce the cash
balances, which it was not deemed advisable to show in the report to
the Department. This was referred to by -the Prick Committee in a
general way, but the details furnish a striking example of th& manner
in which the requirements of the Insurance Department haye been
evaded and the slight sense of responsibility which has been felt by
the society's officers in verifying staisments purporting to show the
actual state of the society's affairs.
94 Legislative Insurance Investigation.
For many yeais it was, customary for the society at the year's end
to draw checks for several millions upon a bank with which it was
closely connected, or upon one of its subsidiary trust companies, to the
order of Kuhn, Loeb & Co., who would indorse them and return them
to the representative of the society. In exchange therefore the society
procured certificates of deposit in the name of Kuhn, Loeb & Co.,
which they w.ould indorse and deliver to the society, Kuhn, Loeb & Co.
would make out a list of collateral and a loan envelope, but the col-
lateral was not delivered, the certificates of deposit taking its place.
No notes were given. Thereupon the transaction would be entered
in the books of the society as loans to Kuhn, Loeb & Co., or to their
clerks, and the annual statement would-be verified, setting forth the
loans with the collateral. Early in January following the matter
would be disposed of by the return of the loan envelopes to Kuhn,
Loeb & Co.; the certificates of deposit would be surrendered to the
institutions issuing them and checks obtained to the order of the
society and placed to its credit, thus restoring the situation as it
existed before December 31. The evidence shows that the loans of
this sort since 1897 have been as follows:
1897 $6,000,000
1898 2,000>000
1899 5,000,000
1900 5,000,000
1901 5,000,000
1902 9,000,000
1903 ^ 9,000,000
1904 10,250,000
Of late years the actual collateral loans have been comparatively
few in number. Comment has been made upon a loan to E. H. Har-
riman in May, 1901, of $2,700,000. The facts are that the. loan was
made on May 3, for eight months and twelve days, at four per cent,
renewed January 15 and July 15, 1902, for six months, respectively,
at four per cent., and January 15, 1903, i'or five months, at four and
one-half per cent., and June 15, 1903, for- seven months, at five per
cent. It was paid on January 16, 1904, on Mr. Harriman's ' refusal
to pay the increased rate of interest which the Executive Committee
suggesiied that he should pay, and which Mr. Hyde testifies was then
ciirrent. -The collateral on the original loan -was $3,000,000 Union
Report of, the Committee.
Pacific certificates for four per cent, convertible bonds, afterward
changed for 36,000 shares of Tl'nion Pacific preferred stock, and on
July 28, 1903, 3,000 shares of Union Pacific preferred stock were re-
ceived as additional collateral. The loans to Kuhn, Loeb & Co., ex-
clusive of " the end of the year loans," since 1900, are as follows :
Amount.
Time.
Rate.
1900, Jan. 24.
" Jan. 25.
' " Feb. 15.
" Feb. 19.
" Mar. 9.
" Mar. 13.
" Mar. 23.
" July 31.
" Nov. 9 .
" Nov. 14.
1901, Jan. 4.
" Jan. 4.
" Jan. 22.
" June 17.
" June 20.
" June 20.
1903, Dee. 8.,
$500, 000 00 1 yr iVi
500,000 00 14moa iVi
1,000,000 00 lyr 4
1,000,000 00 lyr 4
500,000 00 Demand 3
500, 000 00 " 5
1,000,000 00 " 4%
1,500,000 00 " 2%
500,000 00 6mos 4%
1, 000, 000 00 " iVz
1, 000, 000 00 Demand 5
1,000,000 00 " 5
520, 009 50 32 mos 5
1, 500, 000 00 Demand 2^
500,000 00 9 Mos. 20 days 4
500, 000 00 10 mos 4
500, 000 00 60 days 6
Wone have been made since 1903.
The total collateral loans outstanding on September 30, 1905, were
$415,000.
The securities owned by the society, in accordance with the ac-
countant's report, are distributed as follows:
Bonds, Government, State and
Municipal, of the United
States and Canada $3,397,034 00
Eailroad and traction com-
panies in the United
States and Canada 162,364,034 00
Foreign, held chiefly to com-
ply with statutory re-
quirements 11,756,454 00
Miscellaneous 6,046,764 00
$182,564,276 00
96 Legislative Insurance Investigation.
Stocks, Railroad and traction
companies in the United
States and Canada v $9,373,339 00
Financial institutions in
the United States and
Canada 37,532,950 00
Miscellaneous 890,812 00
47,797,091 00
Syndicate subscriptions 5,176,695 00
Total ■ $235,538,062 00
The interests of the society in other financial and investment
companies, according to its statement of Decejnber 31, 190-1, were
then as follows":
December 31st, 1904.
Name.
Par Value. "Book Value. Market Value.
Mercantile Trust Company $1,284,300 00 $4,5.'52,492 00 $12,843,000 00
Equitable Trust Company 1,316,100 00 5,630,447 00 8,883,075 00
National Bank of Commerce... 4,500,800 00 7.770,446 00 10,120.800 00
Lawyers' Mortgage Company.. 560,800 00- 15024,165 00 953,360 00
Lawyers' Title Insurance Co... 475,400 00 1,455,032 00 1,426,200 00
Fifth Atfenue Trust Co 235,200 00 495,012 00 1,176,000 00
International Banking Corpo-
ration 180,300 00 352,600 00 252,420 00
Fidelity Trust Company 250,000 00 1,375,304 00 1,812,500 00
Union Nat. Bank of Newark... 100,000 00 240,000 00 375,P00 00
Cent. Realty Bond & Trust Co. 50,000 00 400,000 00 200,000 00
Commercial Irust Company... 347,500 00 854,454 00 1,216,250 00
International Banking Co 100,000 00 100,000 00 100,000 00
Franklin National Bank 100,000 00 200,000 00 ' 300,000 00
Girard Trust Company 40,000 00 198,780 00 200,000 00
First National Bank, Chicago.. 249,000 00. 991,305 00 921,300 00
Missouri Safe Deposit Co 190,500 00 476,250 00 4f 6,250 00
Hibernia Bank & Trust Com-
pany, New Orleans 100,000 00 449,134 00 449,000 00
First National Bank, Denver.. 110,000 00 321,667 00 330,000 00
Bank of Montreal ...-. 40,000 00 98,578 00 98,400 00
First Nat. Bank, Minneapolis.. 20,000 00 35,000 00 35,000 00
Total $10,249,900 00 $27,026,666 00 $42,175,155 00
Since that time certain shares have been disposed of and addi-
tional shares of other stocks have been purchased. The eompanv
has prepared a schedule of its present holdings, showing the cost
and average returns, from which the following has been excerpted:
Report of the Committee.
97
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98 Legislative Insurance Investigation.
It will he noticed that the appraised value of the stocks stated in the
accountant's report of Septemher 30, 1905, is $37,533,950, so that
the reduced estimate of surplus is practically accounted for by the
changes in the valuations of these stocks and the real estate.
The society controls the Mercantile Trust Company, owning about
65^ of its stock, and it owns about 48^ of the stock ol the Equitable
Trust Company and about 39^ of the stock of the Commercial Trust ,
Company. The relations to the Trust Companies have been used to
aid in the carrying of irregular accounts and to further the interests
of individual officers. Mention has already been made of the account
kept with the Mercantile Trust Company to facilitate disbursements
which would not bear disclosure, and of the transfer of agents'
balances to the Equitable Trust Company and the Commercial Trust
Company in order to better the society's showing in its annual state-
ment. Mr. Morton, in his report to the Board of Directors on Sep-
tember 15, 1905, described another transaction showing the manner
in which such relations may be usedr- It appears that in 1894 the
society held 8,^81 shares, or a little less than two-fifths of the capital
stock of the Western National Bank. Before the society became inter-
ested in the stock of this bank the latter had made loans amounting
in all to over $600,000 to John W. Young, the Kentucky Mineral and
Timber Company, and the Amity Land and Irrigation Company. The
loans were not paid and the Bank Examiner objected to the collateral,
whereupon Henry B. Hyde, the society's president and a director in
the bank, arranged. to transfer the collateral to the Mercantile Trust
„ Company. It was first" assigned by the bank to George V. Turner,
secretary to Louis Fitzgerald, then president of the Mercantile Trust
Company and chairman of the Finance Committee of the society.
Upon Turner's notes there was then obtained from the Trust Company
a loan of an amount sufficient to pay the bank 'his notes, and further
advances being guaranteed by Marce'llus Hartley, John E. Searles,
" Louis Fitzgerald, W. 'N. Coler, Jr., and Hen*ry B. Hyde, all of whom
were directors in the Western National Bank, in which they held a
considerable amount of stock. Enormous amounts were expended by
the Mercantile Trust Company in the development of certain Ken-
tucky and Colorado properties represented by the collateral, until on
July 1, 1905, the cost of these properties to the Trust Company stood,
at over $3,400,000. The cost of the Colorado property was assumed
by the Commercial Trust Company to the extent of $500,000, by the
Western National Bank (now merged in the National Bank of Com-
merce) to the extent of $200,000, and by the American Deposit &
Report of the Committee. 99
Loan Company (now the Equitable Trust Company) to the extent
of $100,000, on certificates of participation issued to them by the
JVEercantile Trust Company on January 23, 1900. At the same time
the comptroller of the society, upon the order of the president, paid
to the Mercantile Trust Company $218,364.96, which was credited to
the Turner loans, and on February 4, 1904, a further payment was
made by the society to the Trust Company of $600,000, of which
$100,000 was applied to the " J. W. Alexander Account Ko. 3 " and
$500,000 to the " Turner loan." The records of the society disclose
no authority for the payments, and prior to the year 1900 contain no
reference to the Turner loans. After Mr. Hyde's death, and under
date of May 11, 1899, President Alexander furnished to the Trust
Company an instrument certifying that the Turner loans and addi-
tional advances were made for the benefit of the society, as it was the
principal shareholder in the Western National Bank and practically
pledged for its protection; and on February 6, 1900, the president ad-
dressed a letter to each of the guarantors, stating that the Turner
loans were made and the guaranties given at the request of the society,
and that therefore the society would hold the guarantors harmless
from loss. On February 14, 1900, the Ex-ecutive Committee of the
society passed a resolution authorizing the president to convey to the
individual guarantors the assurance of the society for their protection.
Mr. Morton states that this resolution is the only minute on the
records of lany committee of the society or its Board of Directors in
respect to any connection of the society with the Turner loans. On
February 14, 1900, the president also wrote to the officers of the com-
panies which had taken certificates of participation in the loans as
above stated, to the effect that the society would see that the aiAounts
so loaned would be repaid with interest. It is understood that the
question of the liability of the society is now being litigated.
In addition to the Turner loans the report of his examiners to the
Superintendent of Insurance as of October 17. 1905, mentions several
loans made by the Equitable Trust Company on account of the society
or for which the Society has given its guaranty. These loans as of
June 30,' 1905, were as follows: $354,074.99 to Louis M. Bailey,
trustee, who succeeded George H Squire, trustee, in whose name
certain certificates of syndicate participation had been taken upon
which these loans were made as advances; $245,857.96 to Allan Me-
Culloh and James T. Boothroyd for account of the society as owner
of the" collateral, the matter being incident to re-insurance of the
Brooklyn Life in 1901; $62,778 to John E. Searles, and $200,000 to
100 Legislative Insurance Investigation.
Eisele & King, $125,000 to F. H. Hazelton and. $220,000 to Edwaxd
A. V/oods, agents to the society, guaranteed by the society and secured
by their renewal contracts. The examiners reported that no evidence
of liability on account of the society's guaranties in connection with
these matters appears upon the society's books of account or records
other than is shown by copies of its letters, nor do the records show the
ownership of any of the collaterals held by the Trust Company as
security; and these securities do not appear in the statement of the
'society's assets, nor are its guaranties charged against it as liabilities.
In the superintendent's first report reference was made to the in-
crease of stock of the Equitable Trust Company from $500,000 to
$1,000,000 in 1903. Although the society was entitled to take 3,335
shares on this increase at $150 a share, it eketed to take only 665
shares, and the 1,670 shares which it did not take were distributed as
follows: James H. Hyde, 565 shares; James H. Hyde and W. H. Mc-
Intyre, 702 shares; Annie P. Hyde, 75 shares; and the balance^ 328
shares, went to other members of the executive committee. On a
subsequent increase from $1,000,000 to $3,000,000 the Equitable took
10,563 shares at $500 a share; the stock after the increase having a
book value of $383.33 per share, the disadvantage to it and the
advantage to others of its failure to exercise its option' in the first
increase being obvious. It is impracticable to trace the history of the
relation of the society to these companies or of the successive mergers,
of doubtful advantage to the society, through which the National
Bank of Commerce was formed and the present investment of the
society in its stock took shape.
The relations of the officers of the society to transactions in the
stock (bf the Lawyers' Title Insurance Company and of the Lawyers'
Mortgage Company demand special comment. In March, 1901, the
society in order to hold as much influence in the company as possible
purchased 2,000 shares of the stock of the Lawyers' Title Insurance
Company. After the purchase of 1,100 shares by unanimous vote of
the executive committee were distributed at cost among the following
persons, all of whom, save Annie E. Hyde (Mr. Hyde's mother) were
members of the committee: James H. Hyde, 100 shares; Annie F;
Hyde, 100 shares; James W. Alexander, 100 shares; William A.
Wheelock, 100 shares; Louis Fitzgerald, 1^00 shares; George H. Squire,
100 shares; T. D. Jordan, 100 shares; H. M. Alexander, 100 shares;
Marcellus Hartley, 100 shares; C. M. Depew, 100 shares; C. B. Alex^
ander, 50 shares; and W. H. Mclntyre, 50 shares. In May, 1901,
George H. Squire, who was at the time of the transactions to which
Report of the Committee. 101
we have referred financial manager of the society, received 1,500 shares
of the stock of the Lawyers' Mortgage Company at 135, of which only
650 went to the Equitable and the remainder was transferred as fol-
lows: James W. Alexander, 100 shares; Louis Fitzgerald, 100 shares;
James H. Hyde, 150 shares; Annie F. Hyde, 50 shares; William H.
Mclntyre, 50 shares; H. M. Alexander, 100 shares; Mary E. Jordan,
50 shajes; L. W. Lawrence, 100 shares; J. H.' Latham, 30 shares; and
"Williamson & Squire, 20 shares. The shares of both these companies
greatly increased in value within a shoit period to the benefit of the
officers of the society who had received these allotments. In Khe
summer and fall of 1901 the American Deposit & Loan Company (the
corporation subsequently known as the Equitable Trust Company) on
the order of George H. Squire purchased from Williamson & Squire,
a brokerage firm of which- Mr. Squire's sons were members, 411 shares
of the stock of the Lawyers' Title Insurance Company and 830 shares
of the stock of the Lawyers' Mortgage Company. The purchases were
made by Williamson & Squire in various lots, and all, or nearly all,
were made either for t;he account of Thomas D. Jordan or James H.
Hyde. On October 11, 1901, the American Deposit & Loan Company
sold 408 of the shares of the Lawyers' Title Insurance Company and
805 of the shares of the Lawyers' Mortgage Company to the Equitable
Society at a profit of $9,378.95 on the former and $13,375.93 on the
latter, making in all $22,754.88. Apparently retaining one-sixth of
this profit, he distributed the remainder as follows: To James W.
Alexander, one-fourth; to James H. Hyde, one-fourth; to William H.
Mclntyre, one-sixth ; and to Thomas D. Jordan, one-sixth. Mr. Hyde
testifies that he does not recall the transaction and that he was absent
in Europe in the summer when the purchases were made for his
account. The orders for these purchases were given, it would seem,
by Mr. Mclntyre and he, as attorney for Mr. Hyde, indorsed for
deposit the check for the latter's share of the profits.
The society owns the entire capital stock of the Cafe Savarin Com-
pany, which conducts a restaurant in the home office building. The
par value of this stock as reduced in 1900' is $50,000. The society
also leases a considerable space in its home office building to the
Lawyers' Club under an agre_ement made in 1888 by which it agrees
to furnish and maintain in proper style the club-rooms and to require
the tenant of the public restaurant in the building to furnish suitable
supplies. The agreed rental is 75 per cent, of the club dues and so
much of the remaining 25 per cent, as may be left after necessary ex-
penses of the management of the club have been defrayed. The Cafe
102 Legislative Insurance Investigation.
Sdvarin Company furnishes the required supplies to the club, and
under instructions of the late Henry B. Hyde receives the money pay-
able under ,the lease to the society.
The report of the Frick Committee called particular attention to
the excessive cash balances maintained by the society, showing the
average balance for eleven months, exclusive of December 31, in the
years 1901 to 1904, inclusive, to be as follows:
Pernentafee ci
arerage assets,
1901 $27,826,727 86 8.77
1903 27,950,195 41 8.11
1903 •. 36,120,710 82 9.78
1904 36,272,725 10 9.15
The balances were largely reduced at the end of the year in the
the manner already- stated. Three-fourths of the deposits have been
with the Equitable Trust Company, the Mercantile Trust Company,
the Commercial Trust Company and the National Bank of Commerce.
The Commercial Trust Company and three other institutions outside
New York have allowed three. per cent., and upon all the other de-
posits, with a trifling exception, two per cent, interest has been re-
ceived. The obvious purpose of these deposits was to assist the -com-
panies in which the society was interested, whose prosperity was also
of concern to individual ofiieers; and thus through its stockholders and
its active financial support, it has indirectly engaged in financial enter-
prises entirely foreign to the purpose of its organization. As has well
been said, " deposits are the life-blood of trust companies." The
Fricik Committee said on this matter:
"In making these investments, the society is concerned not
merely in the amount it realizes in diyidends as constituting a
proper return on the investment, but becomes actively engaged in
the building up of the auxiliary concern in order to show ap-
preciation in market value of the original investment.
"Having been committed to such a policy, complications in-
crease, which force the society away from the position of an in-
vestor, which it should occupy, into that of a promoter and man-
ipulator, which it should not occupy. Under date of August 30,
1901, President Alexander writes to Mr. J. H. Hyde: ' I am glad
you watch the bank, and that it is doing so well, but we must
perform some coup and increase its size and importance. Also
in the case of the Mercantile. I would like to buy a couple of
Report of the Committee. 103
trust companies and double up that concern.' It seems needless
to state that the making of ' coups ' to enlarge banks or the buy-
ing of trust companies are not proper subjects of concern to a life
insurance company. .
" Under date of July 23, 1903, President Alexander writes: 'As
to money, several thousand shares of stock can be bought, as you
recognize, for a moderate sum of money. We are just turning
over a mortgage of $300,000 to the .Mercantile Trust Company,
which will give us some mpre funds, and we have got some
further sales of bonds on the tapis. I am anxious to be ready for
paying that million dollars of securities on August 3, and I think
we had better arrange in some way with Kuhn, Loeb & Company
about that Great Northern loan, which doesn't fall due until the
lOih, so as to meet this.'
" We here see the expressed desire ,to purchase securities, the
mention that so insignificant a sum as $300,000 is available, and
the hope expressed that certain loans will be cleared off so as to
provide funds, yet on July 23, 1903, the society had on deposit,
nominally subject to check, the sum of $37,945,958.72.
" Under date of August 13, 1903, President Alexander speaks of
the unusually favorable opportunity to make investments, and
then says : ' We should be buying a good many such things were
it not that we are so strapped for money by engagements already
made,' and, ' All this is very annoying, because if we had five or
ten millions of dollars to invest now, we would make a great deal
of money.
" The society had on deposit August 13, 1903, $36,399,788.82.
At the times when Mr. Alexander spoke of the great possibilities
of making money, if it only had available funds, the society had
at least twenty-five millions of dollars which, under ordinary con-
ditions, would have been perfectly available; but wMeh, through
alliances with other concerns, were so tied up that the opportunity
was lost.
" These conditions may help to explain the fact that during
the five years, 1899 to 1903, inclusive, the Equitable Society real-
ized next to the lowest average rate of interest on its invested
assets of the thirty companies tabulated by the Insurance Year
Book, while in the year 1903 it stood absolutely the lowest on the
list. (
" The foregoing has treated the subject from the standpoint
of general principles. Measuring the wisdom of this class of in-
104 Legislative Insurance Investigation.
vestment by specific results, an illustration may be taken of the
results to the society, for the year 1904, of jts relations with the
Equitable Trust Company.
" The book value of the society's holdings in Equitqile Trust,
plus its average deposits during 1904 in that institution
amounted to $17,370,000. The society's income from that in-
vestment, consisting of two per cent, interest on deposits and
twelve and one-half per cent, dividends on the par value of its
stock holdings, amounted to $399,182, or two and three-tenths
per cent, on the total investment.
"The claim would undoubtedly be made that in addition to
the direct income, the society has greatly benefited through the
appreciation of the stock over its book value. Profit through-
the increase in market value of a stock can be made only through
the actual sale of the stock. A stock is worth no more than it
can be liquidated for; and a pertinent question in this connection
would be. Could the society withdraw its protecting support from
these auxiliary concerns and dispose of its stock holdings at
present market rates? If it could not, its profits through the
appreciation in stock values is at least partly fictitious."
In 1905, to August 31, the average balances were somewhat reduced,
the highest amount being $30,052,631.13, on July3l, and the lowest
$25,808,580.66, on April 29. The report of the society's accountants
shows the amount of cash" in banks and trust companies on September
30, 1905, to be $19,703,891.49.
The close relation sustained by the Equitable to the Mercantile
Trust Company has directed attention to a bill introduced on March
31, 1904, ia the Senate by Senator. Ambler, and in the Assembly by
Mr. Fish (by request). The bill provided for the repeal of chapter
806 of the Laws of 1868, as amended, incorporating the Fireproof
Warehousing Company, the name of-which by the amendatory acts had
been changed to the Mercantile Trust Company. There had been
no investigation or preliminary proceedings suggesting the advisability
of such drastic legislation, and it has been publicly charged that the
object was to force the trust company to settle a claim of B. B. Odell,
1)T., then Governor of the State, which had arisen upon his purchase
of bonds of- the United States Shipbuilding Company, of which the
Mercantile Trust Company was trustee. The Committee received evi-
dence upon this matter, from which the following appears :
Governor Odell's investment in the shipbuilding bonds amounted
Report of the Committee, 105
to $184,171.56. He sold the bonds at auction on March 9, 1904, foi
$48,689, leaving a loss of $123,482.56, for which he subsequently
brought suit against the Mercantile Trust Company, in August 1904.
The claim, after negotiations, was settled by the payment of $75,000.
The payment was apparently made on December ,30, 1904. It does
not appear that the Equitable had anything to do with the matter of
the TJnited States Shipbuilding Company, or that it had any interest
in the settlement of the claim, further than that it was stockholder
in the trust company.
Mr. Hyde, who was Vice-President of the trust company, testifies
that Mr. E. H. Harriman, one of its directors, suggested to him in
the fall of 1904 the advisabiiity of settling the claim as there was a
rumor in the newspapers that an effort would be made to repeal the
charter of ~ the trust company. " He suggested the advisability^of a
settlement in view of the powerful interests in Albany which, were
antagonistic to the Mercantile Trust Company." Mr. Harriman testi-
fies that Mr. Hyde came to him, asking that his influence should be
used with Governor Odell to effect a settlement,* stating that the suit
was dangerous to the Mercantile Trust Company, and that it might
induce other suits, and that accordingly he saw Governor Odell and
arranged an interview. Negotiations followed leading to the settle-
ment. Mr. Harriman says that he did not know that a bill had been
introduced to repeal the charter of the trust company, that he made
no statement to Mr. Hyde as to the advisability of settling the suit
because of any power that niight be exercised against the company at
Albany, and that he did not mention any attempt that had been or
might be made to repeal the charter, nor refer to any advantage to
the company in settling the suit. Mr. Odell states that at Mr. Harri-
man's suggestion he met Mr. Hyde and subsequently Mr. Bainbridge
Colby, the attorney of the trust company, who denied the justice of
_ the claim. Subsequently, in November, an offer of settlement was
made and as a result of further interviews a settlement was arrived at.
No threat of any sort was attributed by Mr. Hyde to Mr. Odell per-
sonally, and Mr. Odell denies with great emphasis that any threat was
made, directly or indirectly, to induce the settlement, which is pre-
sented as the ordinary case of a compromise of a disputed claim. He
refers to the settlement of other suits brought against the trust 'com-
pany, and asserts with confidence that apart from any question of
political or other influence he would have been able to sustain his
case in court.
106 Legislative Insurance Investigation.
,The fact remains that a bill to repeal the chaxter of the company
had been introduced in the Legislature, and it is the testimony of Mr.
Odell that while he did not suggest its introduction, he knew of it
before it was introduced and stated that he saw no objection to it.
He says that the ground of his approval of the bill was " because the
scandal incident to the Shipbuilding trust was uppermost in the peo-
ple's minds and it was plain that the Mercantile Trust Company
had been behind fifteen or sixteen corporations, every one of
which had been insolvent," and he thought " it was time that
such matters in the State of New York should be stopped." After
the introduction of the bill had been criticized in the press, he states
that he informed Senator Ambler that "as desirable as he believed the
legislation to be," he feared that his " unfortunate connection with the
Shipbuilding matter" was of such a character that it would be better
to "* drop this legislation." Although the bill was^ not pressed, and
Mr. Odell's suit was not brought untihmonths later, it may be that the
fact of its introduction was sufficient to induce a fear on the part of
the officers of the trust company that proceedings inimical to its in-
terests might be taken, if those who could initiate them were nol ap-
peased. It is significant that in the subsequent negotiations Mr.
Hyde mentioned the bill to Mr. Odell, who replied, that whatever the
outcome of the settlement might be there would be no fear of any
retaliatory legislation. Upon the testimony it cannot be said that,
apart from the introduction of the Ambler bill, any threat was made,
but it would seem that at the time of the negotiations the situation
was such as to make proper the assurance that there would be no
effort at retaliation.
In the reports of the Frick Committee and of the Superintendent
of Insurance, reference was made to nine syndicate, participations in
1902 and subsequent years, allotted to "James H. Hyde and asso-
ciates," in which officers of the society has been interested and re-
ceived profits, some of which have been paid over to the society. But
there are many other syndicate transactions ranging through a^ number
of years deserving of attention. In some cases the society received
allottments directly from the syndicate managers. In several cases
it received a participation from the Mercantile Trust. Company, ap-
parently being 'a portion of its allotment; in other allotments were
made to " Louis Fitzgerald and associates," or to " George H. Squire
and associates," and in the division the society received a share. The
profits of these syndicate participations are not in all cases properly
shown by the records of the society or satisfactorily accounted for.
In one of the earlier instances the profits were deposited to the credit
Report of the Committee. 107
of the " Marcellus Hartley, Trustee " account and in some others they-
were passed to the account of " George H. Squire, Trustee." Follov/-
ing apparently the earlier practice, Mr. James H. Hyde as vice-presi-
dent on February 17, 1902, addressed a letter to Kuhn, Loeb & Co.,
requesting that all participations of the society in underwritings and
syndicates should be made in the name of "James H. Hyde and
associates," with the understanding that it should include its affiliated
institutions " and such personalities " as he and his as-soeiates should
designate. The extent to which the officers of the society were in-
terested in the various syndicates,' and to which they profited either
through the transactions of the society or by diverting to themselves
opportunities for profit which properly belonged to the society, is not
precisely disclosed by the record, as it was impossible for the Com-
mittee to deal with the matter as fully as is necessary to secure a pre-
cise accounting. But sufficient is presented by the record to show
that a full accounting should be demanded by the proper authorities.
One case, where the officers and affiliated institutions actually took
two-thirds of the allotment made directly to the society, may be men-
tioned. This was the Chicago, Burlington & Quincy Purchase Syn-
dicate, under the management of J. P. Morgan & Co. It was organ-
ized for the purpose of underwriting an issue of Chicago, Burlington
& Quincy collateral trust four per cent, bonds. It was expected to
be, and was in fact a profitable venture. J. P. Morgan & Co. allotted
to the Equitable a participation of $1,500,000. The matter was
brought before the Executive Committee and the allotment was dis-
tributed as follows :
Equitable Life Assurance Society $500,000 00
Mercantile Trust Company 100,()P0 00
American Deposit & Loan Company 50,000 00
J. W. Alexander 100,000 00
General Fitzgerald 100.000 00
James H. Hyde ' 100,000 00
C. M. bepew 100,000 00
M. Hartley 100,000 00
W. A. Wheelock 100,000 00
George H. Squire, et aL , 200,000 00
Fidelity Trust Company 50,000 00
Total $1,500,000 00
108 Legislative Insurance Investigation.
The Equitable signed the subscription agreement for the entire
amonnt of $1,500,000 and paid the entire amount of the calls ag-
gregating $337,500. When the syndicate was closed, J. P. Morgan &
Co. paid over to the Equitable ^d74:,500, being the return of its
subscription payments and $37,000 profits. Apparently the amount
was handed to Mr. Squire, who then made division so that two-thirds
of the profits went to the persons and institutions who had received
shares in the allotment after payment to the Equitable of four per
cent, interest on the moneys advanced upon their account. There was
no apparent reason for this division excej)t to give a share of the
profits to members of the Executive Committee and the corporations
named. The society subsequently invested in the securities which had
been undenvritten by the syndicate to tlie extent of more than $8,000,-
000.
In November, 1903, a syndicate was organized for the purpose
of acquiring $50,000,000 of the preferred stock of the Union Pacific
Eailway Company under the management of Edward H. Harriman,
Jacob H. Scliiff and James Stillman. The subscribers were not to be
personally liable in excess of their several subscriptions and it was
provided that the purchases were to be pooled for a period of not less'
than five years, and meanwhile were not to be sold by the subscribers.
Calls were to be made by the managers to pay for the stock upon
delivery of stock certificates, which the subscribers agreed to hold sub-
ject to the control of the managei's for sale or exchange,- and to return
and deliver to the managers or their nominees on demand from
time to time, for the purpose of effectuating the terms of the agree-
ment. The managers were entitled to sell the shares to a holding
company upon such terms and in such manner as should be approved
by a majority of the subscribers in interest. The obvious object was
to unify the control of the stock and the restrictive features of the
agreement made it a clearly improper transaction for an Insurance
Company. James II. Hyde subscribed the agreement at Mr. Harri-
man's request on behalf of the Equitable Society, the amount of the
subscription being $2,500,000. He signed it in his individual name
because Mr. Harriman thought that course more expedient. It ap-
pears that the matter was not brought before the Executive Com-
mittee; Mr. Hyde says that Mr. Harriman requested that they shoiild
not be advised of it, wishing to keep the pool as secret as possible.
Mr. Harriman states that he desired to combine various interests who
were or would be purchasers of Union Pacific preferred under one
head, and offered to Mr. Hyde through his representative a five per
cent, interest in the syndicate. Subsequently Mr. Hyde told him he
Report of the Committee. 109
woxild not be able to take care of such a large amount, but that he
would arrange the matter with the Equitable, to which Mr. Harriman
replied '' of course we could not recognize the Eqidtable " as a syndi-
cate member, but that he " would hold him responsible for the fulfill-
ment of the terms of the syndicate agreement." Mr. Harriman added
that he did not see any objection to the Equitable being interested in
it provided Mr. Hyde could safeguard their confidence so that the
fact of the syndicate, and that so large a purchase was contemplated,
"should not be known to any one outside of those interested." It
was Mr. Harriman's understanding at that conversation that the
Equitable was to furnish most of the money to make good Mr. Hyde's
subscription.
Kuhn, Loeb & Co. acted for the syndicate in acquiring the shares
and delivering ]them to the subscribers at cost. Their calls upon the
Hyde subscriptions were addressed to Mr. Hyde personally and in
each case stated that the shares were not to be transferred. The pay-
ments on these calls were made by checks of the society io the -Crder
of Kuhn, Loeb & Co., and the matter was treated on the society's
books as a corporate transaction. The society received the certificates
of stock in the name of Kuhn, Loeb ~& Co., indorsed in blank and held
them without transfer. The payments were'set forth in the security
register, the first, of January, 1903, being entered as " 500,000 Union
Pacific holding syndicate at 100." It was the practice to read the
entries in the security register before the Finance Committee. Mr.
Sehiff, who, as already stated, was a member of this Committee, was
present at the meeting at which the above entry was read and also at
another meeting of the Committee when a further purchase was ap-
proved, but testifies that the reference to the matter did not attract
his attention and that prior to the disclosures of last spring he had
no knowledge that the Equitable was interested in the syndicate, re-
garding the subscription as that of Mr. Hyde personally. In the
annual statement of 1903 the society's holdings were referred to- as a
syndicate investment. Mr. Mortimer Sehiff, Mr. Schifl's son, it ap-
pears objected to this and in the stateemnt of the next year the refer-
ence to the syndicate was omitted. The total payments made by the
society amount to $1,920,000, against which they hold stock to the
amount of $2,050,000. In July, 1905, Mr. Hyde formally assigned to
the society all his interest in the syndicate agreement, and. on being
advised of the assignment Kuhn, Loeb & Co. informed the society that
they would communicate with the syndicate managers to determine
what action should be taken with regard to the recognition of the
110 Legislative Insurance Investigation.
transfer. So far the Committee is advised, no furtiicr action in the
matter has been taken.
The amount of the purchases made by the Equitable from Knhii,
Loob & Co., as shown by the lists furnished by the society, during the
years 1900 to 1904 inclusive, are as follows (exclusive of the Union
Pacific preferred stock) :
1900 $11,935,034 00
1901 0,995,637 00
1902 5,453,704 00
1903 3,511,038 00
1904 16,644,715 00
1905 4,354,280 00
Total $47,784,408 00
The total purchases of the society during the past five years amount
to about $197,000,000.
The Equitable has greatly increased its business in recent years.
Since 1885 its outstanding insurance has increased from $357,338,346
to $1,495,503,893, and its annual premium income from $13,461,679
to $62,643,837. Its surplus at the end of 1885 was $12,855,745.
While, as already stated, at the end of 1904 its reported surplus was
$80,494,861, on a revaluation of its holding of real estate and trust
company stocks, it now appears to be about $67,000,000. But, as in
the case of the other companies, it has increased its business at ex-
cessive cost and the returns to policy holders, whether annual or de-
ferred, have diminished. In 1904 the total cost of new business, in-
cluding advances to agents, which should be fairly reckoned as a part
of it, amounted to $10,364,833. Its outlays upon the first year's
business were 339 per cent, of the margins upon the first year's prem-
iums, including loadings and first year's mortality gains.
The business in the foreign agencies has been the more expensive.
In the London Agency in the year 1904 the first year's premiums
amounted to $186,896.61 and the first year's commissions, guaranties
and eiipenses attributable to the cost of first year's business amounted,
according to the society's statement, to $235,807.64, or 126^ per cent.
In this calculation one-half of the sundry expenses is included and
there is deducted for the administration of outstanding business, the
sum of $35,000. But certain items have not been included in the
Report of the Committee. Ill
cost "because either they applied to old business or are not included
in calculations of cost in the United States agencies," to wit :
Medical expenses $31,495 29
Advertising 1,893 39
Printing and stationery 9,3'i'3 53
Furniture 10,828 96
One-half sundry expenses 5,352 58
Inspection expenses 3,832 22
Law expenses 3,855 56
Taxes .,■ 63,136 33
Total $119,767 86
It would seem that the medical expenses, advertising and at least
some portion of the taxes should be attributable to the cost of new
business and if included these would greatly increase the percentage
of outlay. It should be said, however, that the renewal commissions
paid are considerably less than in this country.
The company states that in the Paris Agency the first year's prem-
iiuns in 1904 amounted to $138,364.14 and the first year's commis-
sions to $116,937.12, or 84J per cent. N"o attempt has been made to
apportion between old and new business the general expense, which
amounted to $42,858.22. In. the St. Petersburg Agency the first
jear's premiums in 1904 amounted to $156,565.23 and the first year's
commissions to $115,524.60, or 73 4/5 per cent, without apportion-
ment of other expenses. In the Australian Agency (Sydney) the
first year's premiums in 1904 amounted to $183,451. Si^ "and the com-
missions and expenses attributable to first year's business to $286,-
619.61, or 156J4 per cent. In this calculation $24,000 was deducted
for the administration of outstanding business and no account was
taken of medical expenses amounting to $30,514.65 or of advertising
amounting to $6,395.46y aggregating about 20 per cent, of the first
year's premium receipts.
In addition to the heavy outlays in procuring new business abroad
the society also sufEered the indirect expense of diminished returns
through its investments in foreign office buildings. It should be noted
that in Paris, being the owner of one building at a cost of $843,120.99,
of which the society only occupied one-eighth in rental value, it re-
cently purchased another building at a cost of $2,126,150.12, the re-
112 Legislative Insurance Investigation.
turn on which is about two per cent. It should be added that " the
society has withdrawn from many foreign iields/' and is apparently
pursuing a policy of retrenchment in its foreign business.
In the United States it appears from the testimony of Second Vice-
President Tarbellj who has direct charge of agency matters, that in
the early seventies the principal- companies paid agents from twenty
per cent, to thirty-five per cent, of the premiums ; that with increased
coimpetition commissions and bonuses increased until the first year's
commissions generally were about sixty per cent, and the renewals
were from seven and one-half to ten per cent, with bonuses ranging,
from $3 and $5 a thousand to from five to ten per cent, of the first
year's" premiums. The Equitable permitted general agents to draw
in advance two renewals, which gave them- the privilege of settling
upon a seventy-five per cent, basis. In 1900 it established a new
method of compensation requiring a settlement for new business on
the basis of fifty per cent, of the first year's premiums, twenty-five
per cent, being treated as commission and twenty-five per cent, as
expense allowance. In connection with this change it was necessary
to increase somewhat the renewal commissions so as to allow twenty
per cent, of the second, seven and one-half per cent, of the third,
fifteen per cent, of the fourth, and seven and one-half per cent, of
subsequent premiums, to and including the' tenth renewal. But in
addition to commissions, advances are made to agents, in order as Mr.
Tarbell says, " that the agent may live." As an illustration reference
may be made to the account of Edward A. Woods, of Pittsburg, a
conspicuously successful agent. His net receipts from renewal com-
missions in 1904, after paying the renewal commissions of sub-agents,
amounted to $137,620.16, and his receipts from first year's commis-
sions, after ded'ucting the sub-agents' commissions, amounted to $20,-
946.82, making $158,566.98. His expenses for the year were $113,-
951.47, but the present value of his renewals on the business written
in that year, after deducting all these expenses and making proper
allowance for lapses and collection fees, was calculated in the state-
ment submitted by the society to be $50,599.55. So that in result he
received $158,566.98 in net commissions and through his expenses
made an investment in his business, the present value of the net profits
of which amounted to about $50,000 more. Mr. "Woods on December
31, 1904, was indebted on advance account in the sum of $121,960.39,
and to the Equitable Trust Company for transferred balances $220,-
000, making in all $341,960.39.
Report of the dommittee. 113
Large commissions facilitate rebates. The rules of the society arc
stringent against it, but the officers, upon the plea that they are in-
surance men, freely take rebates themselves. It has been the uniform
custom of the society to give allowances substantially equivalent to
the commissions paid agents to the officers and employees upon their
insurance. Such allowances have been made to Messrs. Tarbell, Mc-
Intyre, William Alexander, H. E. Winthrop, M. Murray, W. B. Brem-
ner, S. C. Boiling and J. G. Van Cise. Mr. Tarbell also received
through an arrangement with Mr. George W. Perkins commissions
on a certain policy. on his life taken with the New York Life. Upon
the policies recently taken by President Morton and Comptroller Day
full premiums have been paid. Positive testimony was given by a
former agent that Mr. Tarbell had advised him as to a way of evading
the rules fjgainst rebates by making payments for letters of introduc-
tion given by the insured. This Mr. Tarbell emphatically denies,
saying that he has merely advised agents that they were entitled to pay
those aiding them in obtaining insurance a part of the commissions
thereby realized.
In the repoirt of Superintendent Hendricks mention is made of the
fact that shortly before the beginning of the controversy among the
officers of the society Mr. Tarbell received $135,000 in commutation
of the commissions payable to him upon the business procured during
his agency at Chicago. It appears that the value of the commissions
was calculated by an associate auditor in Mr. Tarbell's department
upon the following basis : The amount of renewal commissions v/as
estimated, commencing with 1905, by deducting five per cent, each
3'ear up to the twentieth year of assurance for discontinuances because
of deaths, lapses, etc. Tlie commissions for the twenty-first year of
assurance are based on thirty per cent, of the policies in force at the
end of the twentieth year being continued. Prom the twenty-second
to the twenty-fifth year of insurance a deduction for discontinuance
at the rate of five per cent, each year is made. The renewal com-
missions so estimated were discounted at the rate of five per cent,
and the present worth on January 1, 1905, was thus calculated to be
$143,338.
In common with its chief competitors the Equitable shows a large
diminution in rates of dividends paid policy holders. The following
scales of annual dividends were submitted by the company:
114
Legislative Insurance Investigaiion.
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Report of the Committee.
115
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116
Legislative Insurance Investigation.
Tontine policies were issued at an early date, followed by semi-
tontine and variants of the deferred dividend type. It appears that
of 10,442 twenty-year policies taken out in 1885, 4,210 were in force
at the close of the policy year in 1905 ; 'that of 6,278 admitted in 1890
on the fifteen-year plan 2,179 completed the period; and that of 556
admitted on the ten-year plan 284 survived at the end of the ten years.
The results of these policies, as in the case of other companies, have
been far below the expectation, as shown by the following table;
A.ge 40 — Estimated Cash Surplus cmd Actual Results.
Tontine Estimates of 1873.
Life
Life
Life
20 P
20 E
20 year E.
20 year E.
Period
Year.
Estimated.
Actual.
10
$169 80
(1883)
$93 88
15
465 50
(1888)
262 86
20
955 60
(1893)
436 31
20
1,176 50
(1893)
537 76
10
236 50
(1883)
130 14
15
729 10
(1888)
364 11
20
1,556 00
(1893)
712 14
Tontine Estimates of 1876.
Period
Year. Estimated.
Actual.
Life 10
Life 15
Life 20
20 P 20
20 year E 10
20 year E 15
20 year E 20
$104 40
(1886)
$93 88
393 80
(1891)
209 57
824 80
(1896)
379 40
999 80
(1896)
430 62
174 30
(1886)
130 14
590 90
(1891)
327 70
1,300 40
(1896)
619 25
Note. — 1876 estimates ,are twenty per cent, of the entire cash results less
than 1873, for ten-year periods, and ten per cent, less for fifteen and twenty-
year periods.
Report of the Committee. 117
Tontine and Non-forfeiting Tontine Estimates of 1885.
Period.
Year. Estimated. Actual. Ton. Non-for.
l-ife 10 $85 81 (1895) $85 34 $75 31
Life 15 256 47- (1900) 209 57 158 49
Life 20 592 57 (1905) 379 40 294 07
20 P 10 97 88 (1895) 97 46 8113
20 P 15 308 93 (1900) 253 03 173 47
20 P...'. 20 730 54 (1905) 467 62 324 20
20 year E 10 118 49 (1895) 118 30 9106
20 year E 15 400 07 (1900) 327 70 199 17
20 year E 20 968 00 (1905) 619 25 376 32
;
The method adopted by the Equitable in computing deferred divi-
dends varies from both that of the New York Life and the Mutual,
which we have found vary from each other. Special accounts are kept
of the income and outgo belonging to tontine classes separately, that
is, to policies of certain types, such as so-called " savings fund," " semi-
tontine ".and " free." Policies issued in a given year having the same
dividend periods are not kept in a separate class, and until the end
of the agreed period credit is not given to the policy holders for any
sliare of the gains of that society. Calculations for distribution in the
year 1904, for example, are made in the latter part of 1903 and
before the results for the year are definitely known. Taking the
premium receipts, the death losses, the expenses estimated and classi-
fied according to the judgment of the Actuary, and interest at the
rate of four per cent., and making necessary corrections for the end
of the average policy, year (July 1), the amount of the estimated fund
applicable to a given class of policies is ascertained. Deducting the
reserve, the remainder is the estimated amount of the surplus, which
it is found is a certain percentage of the reserve. The results are
then compared with hypothetical data worked out from the estimates
made in 1871 by Sheppard Homans, a distinguish Actuary, in the
case of " savings fund " policies, and in other cases the comparison is
made with hypotheses established by the Actuary of the society. It
is thus ascertained that the total hypothetical surplus is a certain
percentage of the hypothetical reserve. The two percentages are com-
pared to find the ratio between them. Then a calculation is made so
that each policy holder's share of the surplus estimated to be available
for distribution shall stand in this ratio to his hypothetical share. In
thiB way the policy holder shares in the gains of the society from every
.118 Legislative Insurance Investigation.
source in the same proportion, although the gains from different
sources vary greatly as compared with the hypothetical estimates,
those from mortality, for example, being much closer to the estimates
than those from interest or lapses, and although, in view of the differ-
ing terms of the policies, the rights of the policy holders in these
different classes of gains are not the same.
The surplus fund of the society held for deferred dividend policies,
as estimated by the actuary on December 31, 1904, amounted to $70,-
803,292, or, deducting unadmitted assets, to $69,439,292. The total
surplus, as reported to the Insurance Department in the annual state-
ment of the same date, after deducting unadmitted assets, was $80,-
394,861.31. .The difference, $10,955,569, is said by the actuary to be
the surplus derived from other forms of policies not on the deferred '
dividend plan; that is to say, from policies entitled to annual dividends
and policies without participation in profits— about $9,000,000 having
been accumulated upon annual dividend policies. Most of it was ac-
cumulated years ago, as it is stated that for the past .^five or six years
the society has distributed to annual dividend policy ■ holders sub-
stantially their shares of the average annual earnings.
The reduction, through a revaluation of the total assets, to $67,-
142,865.42 is said to require a proportionate reduction in the amounts
of surplus held for deferred dividend policies. Mr. Morton has stated
in a recent circular that about seven-eighths is held for deferred divi--
dend policy holders, and in this view the remaining one-eighth would
represent the amount gained upon annual dividend and non-participat-
ing policies. The accumulation of gains on annual dividend policies
is justified upon the ground that the society should have some surplus
over liabilities, and it is said that the non-deferred dividend assurance
outstanding at the end of 1904 was $97,000,000. Apparently it is
thought that with reference to deferred dividend policies the provision
for deferred apportionment is a sufficient protection, but that with
reference to 'annual dividend policies the society should be entitled to
accumulate out of the annual gains upon them a surplus over the
outstanding liabilities of this class. In this view the deferred .divi-
dend policy holders would have no interest in the accumulation and
the annual dividend policy holders would not be entitled to its dis-
tribution in dividends. Moreover, ■ the annual dividend policies
written in recent years are afforded security at the expense of those
isstied earlier. In connection with the accumulation of this fund, the
beneficial interests in which do not seem clearly to have been ascer-
Report of the Committee. .119
tained, ib may be repeated that the society was organized to transact
business on the mutna] plan^ and that the stockholders, through their
agents, have continuously represented that it was in effect a purely
mutual company, and that the stockholders had no interest in the
surplus.
UNITED STATES LIFE INSUEANCE COMPANY.
The United States Life Insurance Company was organized in 1850,
untler the General Act passed April 10', 1849. The charter provided
that the business should be transacted "upon the mutual principle,
except where by expfess agreement between the company and the as-
sured, such mutuality is waived," arid that there should be a " guarail-
tee capital'" of at least $100,000. Originally the stockholders were
entitled to a certain share 'of the net profits, and under chapter 624 of
the Laws of 1872, the issuance of scrip therefor, to be exchanged for
certificates of stock, was authorized until the capital reached the limit
j:)i $1,000,000. By chapter 44 of the Laws of 1882, the capital was
limited to $440,000, and it was expressly provided that the stock-
holders should not be entitled to any share in the profits, surplus or
dividends of the company in excess of interest at the rate of 7 per
cent, upon the capital.
At the end of 1885., the outstanding insurance amounted to $20,-
153,853, the annual premium income to $660,389, and the surplus
over liabilities to $585,601. In 1904 the outstanding insurance was
$41,941,025, the annual premium income $1,411,115, and the surplus
as reported to the Insurance Department was $570,743.85, or $130,-
742.85 above the capital stock. The total assets and the liabilities
were classified as follows :
Asse ts
Bopk value of real estate $725,488 50
Mortgage loans on real estate 3,388,380 .00
Collateral loans - • • • 280,515 58
Loans to policy holders on policies as collateral 748,179 06
Premium notes on policies in force 78,338 51
Book value of bonds and stocks owned 3,775,078 60
■ Cash in office and in banks 411,136 41
Bills receivable 790 00
Agents' balances 33,793 24
Interest due and accrued 104,139 50
Market value of real estate over book value 144,761 50
120 , Legislative Insurance TnvesUgaHon.
Market value of bonds and stocks over book valufr. . . $189,615 52
Net collected and deferred premiums. 156,421 31
Gross assets $9,035,626 73
Deduct agents' balances and bills receivable ' 33,582 24
Total admitted assets $9,002,044 49 ~
— : ' ■ ■'■■ —
Liabilities
Net reserve $8,287,181 00
Amounts unmatilred on supplementary contracts .... 52,647 00
Liability on canceled policies 2,613 00
Policy claims 57,722 20
Premiums paid in advance 7,553 49
Commissions due to agents, on premimn notes when
paid 14,922 SO
Salaries, rent, commissions and otjier accounts due or
accrued 1,113 15 ,
Dividends or other profits du.e policy holders 7,550 00
Capital stock 440,000 00
Unassigned funds (surplus) ; 130,742 85
Total liabilities $9,003,044 49
In the early part of 1905 an examination was made by the Insurance
Department. It decreased the valuation of the real estate. $101,750
and of the securities $75,000, and increased the amount to be reserved
for resisted policy claims $24,^50, thus wiping out the surplus over
capital stock and showing an inpairment of the latter to the amount
of $70,257.15.
The reduction in value of the company's securities had reference
to certain bonds of the Virginia Passenger & Power Company of the
par value of $100,000, which were entered on the company's books
at their cost of $50,000. They were claimed to have a market value
of $85,000 and were reduced by the department to $10,000. They
had been received by the company on a participation in an underwrit-
ing syndicate (in which it seems that the president. Dr. John P. Munn,
was also an underwriter) with certain shares of thfe preferred and
common stock. After the depa:rtment's examination. Dr. Munn, be-
lieving himself to be under a moral obligation in the matter, took up
the securities and paid the company the sum of $85,000. Thereupon
the department under date of May 5, 1905, made a supplemental re-
port, stating that the impairment of the capital had been made good
and that the company possessed a surplus over capital stock of $4,-
742.85.
Report of the Committee. 121
The company was a participant in three other syndicates (relating
to the Japanese Government loans), in which it is said that none of '
the officers wa^ interested. The stocks owned by the company, which
do not include an interest in any banJc or trust company, amount to
about $131,500.
The market value of the real estate under the department's ap-
praisals was $768,500 in lieu of $870,250 claimed by the company. The
net income from these properties in 1904 amounted to $35,276.09, a
little over 3^. On three of the properties, having an aggregate book
value of $60,835.25, the net income was $292.88. Of the reductions
made by the department $78,000 were on two .properties, one a dwell-
ing in Brooklyn and the other Nos. 149 153 Leonard street, Manhat-
tan. The former was carried by the company at a book value of
$12,622.43 and a market value of $11,000, reduced by the department
to $8,000. This was sold by the company in June, 1905, for $11,000.
The latter had a book value of $168,695.88 and was appraised by the
department at $175,000, as against a value of $250,000 claimed by the
company. It was sold to an independent purchaser in November,
1905, for $235,000, $75,000 being paid in cash and a mortgage taken
by the company for the balance. Three other properties, the value
of which was not reduced by the department, were also sold in the
latter part of 1905 at the appraised values. The present real estate
holdings of the company amount, according to their book value on
December 31, to $384,439.81 and are valued by the department at
$388,000.
In 1904- it appears that the total expenses were about 39^ of the
total premium income as against about 35^ in the Mutual, New York
Life and Equitable. The insurance expenses amounted to 118. 04j^ of
the total loadings on premiums. Disbursements for " legal expenses "
do not appear to have been extravagant and are sa,tisfactopily ac-
counted for. In one matter only, that of the refund of taxes, amount-
ing to $2,810.05, under the decision in the Provident Savings case,
was Andrew Hamilton employed. With the exception of $65 ex-
pended through agents, the company states that no payments have been
made in connection with matters of legislation. No contributions
have been made to political campaign, funds.
The salaries of executive officers were not relatively large, and in
May, 1905, in pursuance of a policy of retrenchment, were consider-
ably reduced, as follows :
President, 1896, to May, 1905, $12,000; later, $6,000,
Vice-President, no salary.
122 Legislative Insurance Investigation.
Seooad Vice-President, 1898, to May, 1905, $7,300; later, $5,000.
Third Vice-President, 1898, to May, 1905, $10,000; later, $5,000.
Secretary, 1896 to 1898, $6,500; 1898 to May, 1905, $5,000; later,
$4,000.
Actuary, 1897 to May, 1905, $7,500; later, $5,000.
The principal cause of the company's large expenditure has been
the cost of obtaining new business, in the effort to meet --the severe
competition resulting from the methods employed by the three com-
panies which set the pace. In 1904 the amount of the expenses
attributable to. first year's business is stated to be $211,145.33, or
264 per cent, of the margins through loading and mortality gains on
that business. The company iises the preliminary term method of
insurauee, by which the first year under ordinary life and endowment
contracts is treated as virtual term insurance, though the higher rates
are paid, thus freeing a large amount for first year's expenses by the
consequent limitation of the reserve. The preliminary term plan was
adopted by the company in 1905, however, after the examination by
the department. In particular agencies it is found that the com-^
missions, salaries and expenses have run as high as 236J/2, 238 ajid
260 per cent, of the first year's premiums. In addition to commis-
sions ranging from 50 per cent, to 80 per cent., with renewals from
7J4 to 10 per cent, for long periods, salaries have been paid and allow-
ances for expenses made. It is said that in the past two years efforts
have been made to reduce the agency expenses, but the rate of com-
pensation is still abnormal. To offset the disallowance of salaries it
appears that the commissions have been increased. Thus in one case,
m
in lieu of a contract for 55 per cent, commissions, graded with 10 per
cent, renewals for twenty years, supplemented by a salary of $5,200
and an allowance of $3,740 for clerk hire, and $2,100 for rent and
incidental expenses, the agent has been put upon a new basis of 95
per cent, commissions, graded with 10 per cent, renewals for twenty
years.
In connection with allowances in case of insurance upon the lives
of officers^ of companies, it may be noted that Dr. Munn, when Medical
Director of the company some six or seven years ago, obtained through
one of its managers, Mr. Cochran, a policy of $100,000 in the Mutual
Life, paying only the difference between the face of the premium and
the agent's-commissions. No allowance wae made against the renewal
premiums.
Of $40,155,8-1^ of insurance in force on I^Tovember 30, 1905, the
ajnount of $33,147,066 was on the deferred -dividend plan; $3,SJ9l,432
Beport of the Committee,
123
was on the ordinary participating plan^ $698,493 was on the annual
dividend plan and the remainder was non-participating. In connec-
tion with this it should be observed that though so large a proportion
of the business is on the deferred dividend plan, the company upon
the examination in 1905 was found to hold practically no surplus
whatever for these policy holders.
The following is a comparison of the estimated and actual results
on deferred dividend policies:
Age 40 — Estimated and Actual Deferred Dividends.
Estimates of 1882 — Full Tontine.
1 ,, ,
Period
Year.
Estimated.
Actual ( about ) .
Life . .
10
$104 41
351 17
717 87
139 69
548 27
1,167 80
(1892)
(1897)
(1902)
(1892)
(1897)
(1902)
$94 00
213 00
Life . .
15
Life . .
20
268 00
20 year
20 year
20 year
E
E
E
10
15
20
137 80
332 00
411 00
Estimates of 1887 -
— Limited Tontine CN on-forfeiting) .
Period
Year.
Estimated.
Actual ( about ) .
Life . .
10
$73 03
256 30
610 16
87 10
369 46
842 01
(1897)
(1902)
( 1 905 )
(1897)
(1901)
(1905)
$73 00
Life . .
15
104 00
Life
'
20
175 00
20 year
20 year
20 year
E
10
E
15
184 00
E
20
271 -00
In the above " about " means that no actual result is given for age 40, and
is approximated from results at other ages.
The estimates which were in use in 190S in order to obtain business
are at a striking variance with the actual results on policies maturing
in that year :
Estimates of 1900 — Limited Tontine Compared -with Results of 1902.
Tontine and Limited Tontine.
Period.
Year.
Estimated.
Actual.
Life
l^ife
15
20
$119 00
269 00
326 00
667 00
(1902)
(1902)
(1901)
(1902)
$104 00
268 00
20 yeaf E
iO year E
15
20
about 184 00
411 00
124 Legislative Insurance Investigation.
These estimates were used down to early in 1905, when they were
withdrawn by the company, and it is stated that estimates are not
now used.
Por many years the dividends on ordinary participating policies
have been declared quinquennially. A year ago the company com-
menced issuing annual dividend policies. The dividends to the an-,
nual and quinquennial policy holders are said to be distributed on a
" percentage basis," that is to say, there is returned " a certain per-
centage of the total premium or premiums paid." The company
states that it bases the distribution of divisible surplus among other
policies with deferred dividends upon the estimates made at the time
the policies were issued so as to give to the policy holders " such pro-
portion of the estimate as we can afford to do with the money avail-
able for distribution." On account of the absence of the Actuary at
the time the company was under examination it was impossible to
obtain a more definite statement.
MANHATTAN LIFE INSURANCE COMPANY.
The Manhattan Life Insurance Company was also organized in
1850 under the Act of 1849, with a guarantee capital of $100,000.
It is provided that the Board of Directors shall consist of thirty-six
persons, one-half of whom shall own at least ten shares each
of stock and the remaining one-half may be policy holders
paying premiums of at least $100 a year or annuitants for a similar
amount. Stockholders have each one vote and policy holders paying
premiums of $75 a year, and these holding annuities of not less than
that amount are entitled to vote for directors in person or by proxy.
There is no evidence that prior to 1900 any policy holders voted except
officials and employees, casting about a dozen votes; but for many
years proxies, which have been obtained through the agenfs of the
company, have been held by the President running to himself and
others, and at recent elections such proxies have been used. It is
said that one-third of the Board are policy holders.
At the end of 1904 the outstanding insurance amounted to $7G,-
790,531, the annual premium income was $2,559,063 and the surplus
over liabilities (including capital stock) was repo'rted as $1,954,674.
This was divided into "reserve for depreciation in value and assets,
$200,000, and contingent reserve, $1,754,674." Over $1,000,000 of
this surplus has been accumulated since 1895. At the end of 1885
the outstanding insurance' was $34,467,139, the annual premiujn in-
come $1,038,633 and the surplus $1,695,247. In the next ten years
Report of the Committee. 125
the business largely increased^ and at the end of 1895 the ouifitanding
insurance was $61,612,174, the annual premium income $3,083,792
and the surplus was reduced to $766,926. During the next five years
the total risks remained about the same and the surplus doubled, and
at the end of 1900 amounted to $1,509,043. In the report of the de-
partment as of December 31, 1904, the property of the company is
stated to be as follows:
Book value of real estate $5,283,441 65
Mortgage loans on real estate 6,129,810 00
Collateral loans 515,074 16
Loans on policies 1,189,745 34
Premium notes on policies in force 336,819 68
Book value of bonds and stocks 3,510,145 34
Cash in office and banks 405,013 4G
Agents' balances 23,393 13
Interest due or accrued ; , 161,494 50
Commuted commissions 85,913 89
Market value of real estate over book value 591,483 35
Market value of bonds and stocks over book value. . . 144,899 76
Net uncollected and deferred premiums 315,358 86
Total gross assets $18,683,593 07
Deduct agents' balances and commuted commissions. 109,307 01
Total admitted assets $18,573,285 06
Liabilities :
Net reserve $16,375,020 00
Liability on canceled policies 6.047 00
Policy claims 56,333 80
Premiums paid in advance 27,033 71
Commissions due to agents on preniiam notes when
paid 10,777 13
Cost of collection on uncollected and deferred pre-
miums in excess of loading 23,554 80
Dividends or other profits due policy holders 19,79-.!: 51
Keserve for depreciation in value of assets 300,000 no
Contingent reserve " 1,754,674 08
Capital stock 100,000 00
Total liabilities $18,573,385 06
126 Legislative Insurance Investigation.
As a result of the examination made by the Insurance Departmeat
in 1905 the value of tlie real estate was reduced $611,435. The prin-
cipal reduction was in the valuation of the home office building at
64 Broadway, which was reduced from $5,350,000 to $4,700,000. The
value of the Philadelphia building was also reduced $75,000. No
other changes in the statement were found to be necessary and- tTie
surplus of the company was hence fixed by the department as of De-
cember 31, 1904, at $1,143,349, in addition to the $300,000 voluntary
reserve against depreciation in assets, or $1,343,349 in all.
The company has a holding of 115 shares in the Mechanics National.
Bank and 100 shares in the Citizens Central National Bank, but with
these exceptions does not own stock in any bank or in any trust coni-
pany. It states that neither it nor its ofBcers have been involved in
any syndicate transactions, directly or indirectly, and that none of
the officers nor any members of the Finance Committee have been
financially interested in any stocks or bonds sold to the comjiany, nor
have any of the officers borrowed from the company.
The company does not maintain any secret fund. Nor has it made
any payments for political contributions or to influence legislation.
All disbursements arf said to be audited monthly.
But the expenses in 1904 amounted to about 41 per cent, of its
premium income and its insurance expenses were 136.98 per cent, of
the total loadings on its premiums. This may be explained to sonib
extent by the large proportion of the assets invested in real estate
involving a relatively greater annua] expenditure. The total expenses'
increased from $313,964 in 1885, when the total income was $1,589,-
984, to $1,053,450 in 1904, when the total income was $3,557,917.
The salaries remained substantially the same for a numbei' of years,
but were increased in June 1, 1905. The president's salary, which
had been $15,000, was then increased to $18,000 ; the vice-president's
salary was raised from $6,000 to $8,000 ; the second vice-president's
from $6,000 to $7,000, and the secretary's from $5,000 to $6,000.
In addition to salaries it has been the practice of the Board of Di-
rectors to allow further compensation to the executive officers at the
end of the year if it was thought that the business justified it; that
is to say about 3% of the net profits of the year according to the
actuarial statement have been divided among the officers of the com-
pany. The total payments made in this way for the last eight years
have averaged about $7,000 a year.
The greater part of the legal expenses, which in 1904 amounted to
$31,077.60, consist of the compensation of the general counsel, which
Report of the Committee. 127
Crom 1897 to 1900 inclusive was $10,000 a year and since 1900 has
leen $15^000 a year.
But in the case of this company, as in that of the others, the main
item of expense is the cost of obtaining new business, much of which
is non-persistent. Thus, in 1904 $17,277,597 new insurance was
written, and the net increase in insurance, however, was only about
$4,150,000. The explanation in this case as in others is the stress of
competition. The commissions paid by the Manhattan Company as
reported by it are sixty per cent, graded with 7 j4 per cent, renewals.
But these by no means represent the entire cost of the business.
Salaries are paid to general agents in some cases and allowances are
made for expenses. The total first yearV^ expenses in 1904 amounted
to $441,740.58, being 187 per cent, of the loadings on first year's
premiums and first year's mortality gains.
Of outstanding insurance 73 per cent, are deferred dividend policies,
12 per cent, annual dividend policies, and 15 per cent, are non-par-
ticipating policies. The twenty payment life is the form of policy
most frequently issued.
Dividends to stockholders are limited to 7 per cent, a year, but the
charter provides that they shall be entitled to one-eighth of 'the net
profits after adequate provision has been made for outstanding poli-
cies, and that through the accumulation of its profits the capital may
be increased indefinitely. The capital has remained at $100,000 and
no distributions have been made to stockholders other than by the
payment of interest and dividends. It does not appear that one-
eighth of the profits has been divided among the stockholders, but
for many years in addition to the 7 per cent, interest, dividends upon
the capital have been paid at the rate of 9 per cent, a year, making
the total returns to stockholders 16 per cent.
The charter provides that every three years scrip shall be issued
for seven-eighths of the profits, annually ascertained, to the holders
of existing policies which shall have been in force for at least one
year; after the profits amount to $500,000 the directors are authorized
to a])piy the- further profits to the payment of the scrip and new scrip
is to be.issued for the profits of the year. Outstanding scrip is to l)ear
interest at a rate not exceeding six per cent, and to be subject to
assessment for losses. This scheme of the charter it would seem has
not bt-en followed, at least since 1863. From time to time such div-
idends have been declared upon the policies as the directors have
seen fit to allow.
Il has been the practice of the company to set aside out of its
128 Legislative Insurance Investigation.
yearly gains a cerhiin amount in excess of the legal reserve as a
provision for contingencies and the residue to distribute or hold for
distribution. The amount set aside as a contingent reserve has been
apparently whatever was thought to be necessary for the security of
the company. The following statement is made by the company as to
its method of calculating dividends:
" That in apportioning annual dividends, The Manhattan Life
follows the usual practice of other American companies and em-
ploys the general principles of the contribution iormula. The
dividend is composed of three elements, and for this year is as
follows (the dividend year running from July 1 to July 1) :
'•'First. The portion of loading remaining after making de-
ductions for expenses, the expense deduction for the various
forms of policies averaging about eighteen per cent, of the gross
premium, plus seventy-five per cent, per thousand of insurance.
" Second. A gain from interest amounting to seven-twentieths
of one per cent, of the reserve.
" Third. A mortality g£iin amounting to five per cent, of the
cost of insurance.
" The profits from ' lapse and surrender ' are applied toward
the gross expenses of the company, also a portion of the mortality
gains and a poiiion of the excess interest earned.
" In making up the apportionment to deferred dividend poli-
cies at the completion of their dividend period, they are given
dividends calculated in the same general manner as annual div-
idend policies, plus interest and plus the dividends which would
ha-\e been earned by deferred dividend policies that have termin-
ated by lapse, death or otherwise."
The actual results have been far below the estimates of the com-
pany :
Age 40 — Estimated Surplus and Actual Eesults.
Estimates of 1889.
Period
Sfear. Estimated. Actual.
Life 10
Life 15
20 P 10
20 P 15
20 year E 10
20 year E...' 15
5133 00
(1899)
about $46 00
332 00
(1904)
67 11
150 00
(1899)
about 49 00
305 00
(1904)
about 75 00
174 00
(1899)
about 70 00
355 00
(1904)
about 98 00
Report
of the Committee.
129
Estimates of 1892.
i
Period
Year. Estimated.
Actual.
Life
20 P
20 year B
15 $332 00
15 305 00
15 355 00
(1905)
(1905)
(1905)
about
about
$75 03
89 00
120 00
: , J
The actuary testified that of the surplus set forth in the annual
statement for 1904 ($1,954,604.08, exclusive of capital stock) the sum
of $984,379 was calculated as held for policy holders, and the re-
mainder represented the amount which had been made out of profits
since the organization of the company and apparently not hold for
distribution.
WASHINGTON LIFE INSUEANCB COMPANY.
The Washington Life Insurance Company was incorporated in 1860
under the Act of 1853, with a capital of $135,000. The stockholders
alone have the right to vote for directors, and are entitled to semi-
annual dividends not exceeding 3% per cent. The charter, as
amended in 1863, provided for a quinquennial account and a credit to
the policy holders entitled to participate of the remaining net profits
after providing for dividends and allowing a sufficient amount to re-
insure outstanding risks and to cover other obligations.
The verified statement of the company as of December 31, 1903,
showed a surplus of $639,159.72, or $514,159.72 above its capital
stock. But an examination made by the Insurance Department as
of November 30, 1904, established the fact that the company had no
surplus, that its capital had been lost, and that its liabilities exceeded
its assets to the extent of $80,233.94.
It was found that the company had been grossly mismanaged. The
cost of obtaining new business, including commissions, bonuses, ex-
pense allowance and salaries, had in some cases reached 200 per cent,
of the first year's -premium. To conceal these outlays agents were re-
quested at the end of_ the year to send cheeks for unsettled advances,
which were to be returned at the beginning of the following year after
the date of the annual statement. Home office -expenses had been
extravagant. The salaries of the President and of his son, the Vice-
President, despite the waste and losses of business, had been increased ;
that of the Vice-President had been recently doubled, until the com-
bined salaries of the two officers approximated $45,000 a year. Divi-
130 Legislative Insurance Investigation.
dends to stockholders were eontiniied and those to policy holders were
decreased. Maladministration was followed by false reports to the
department. The Examiner found that " it is a fact conclusively"
demonstrated by the examination Just completed that for the calendar
j^ears ending December 31, 1902 and 1903, the annual returns then
sworn to were, in respect to the data furnished the Insurance Depart-
ment for a correct valuation b}- it of the company's policies, reversions
and annuities then in force, materially false." At the end of the year
policies were treated as lapsed which soon after the beginning of the
next year were restored. It was found that the policy reserve r&
ported to the department on December 31, 1902, was $555,003 less,
and that reported on December 31, 1903, was $459,816 less than the
actual policy reserve which, according to the report of the Examiner
of the Department, should have appeared as a liability in the annual
statement.
The department thus stated the condition of the company on a
revaluation of assets and policies as of November 30, 1904:
Assets:
Eeal estate $6,477,984 00
Mortgage loans on real estate 7,199,700 00
Loans to policy holders on policies assigned as col-
lateral '. 1,581,738 00
Bonds 481,624 00
Cash in bank and office 578,604 27
Interest and rent due or accrued 202,820 50
Net deferred and uncollected premiums 420,605 39
Total assets $16,943,076 06
Liabilities:
Net value of policies $16,888,086 00
Policy claims 111,798 00
Premiums paid in advance, un-
earned interest and other liabil-
ities (estimated) • 24,126 00
Total Habilities $17,024,010 00
Excess of liabilities over assets $18 933 94
Report of the Committee. 131
After -this report a reorganization was effected through Hon. Levi
P. Morton^ who had long been interested in tlie company. The capital
stock was increased to $500,000, and was taken by Mr. Morton at a
premium of seventy-five per cent., upon condition that the resignations
of officers and directors should be put at his disposal, that he should
have an option on at least one-half of the old stock for one yiar at
par and that the new arrangement should be satiefaetory to the In-
surance Department. The consummation of this plan at once pro-
vided the company with a surplus over liabilities, excluding capital
stock, of $575,316. New directors and officers were elected and men
prominent in the financial world assumed supervision of the company's
affairs. The present executive officers are John Tatlock, presidtnt,
formerly associate actuary of the Mutual Life Insurance Company;
Charles H. Allen, vice-president (vicfe-president of the Morton Trust
Company) ; T. T. Johnson, secqnd vice-president, and J. B. Vande-
water, secretary. , The only one previously connected with the com-
pany was Mr. Vandewater, who had not been an officer. Associated
with Mr. Morton in the purchase, which embraced practically all the
old as well as the increased shares, was Thomas F. Ryan, who became
a director of the company. The present members of the Executive
Committee are the president and Mr. Morton, Mr. Ryan, Harry Payne
Wliitney, Charles H. Allen, Charles D. Dickey and Winthrop Ruther-
ford. The members of the Finance Committee are the President, Mr.
Morton, Mr. Ryan, Mr. Allen, Mr. Whitney, Mr. Rutherford and
George G. Haven.
Economies in management have been introduced. The annual
salaries of the executive officers have been fixed as follows : Preside-nt,
$30,000; second vice-presideui, $5,144, and secretary (from October
17, 1905), $3,144, the odd $144 being stated to be allowed according
to the custom of the cbmpany as a lunch allowance. The vice-presi-
dent receives no salary. The office expenses for the first nine months
of 1905 were over $39,000 less than in 1904. The books do not show
that any contributions were made to political campaign funds or in
connection with legislation, except an annual payment of $600 a year
to W. S. Walker, for work in connection with western newspapers.
This retainer has been discontinued by the present management. The
cost of new business in 1904 was 337 per cent, of the margins on the
first year's premiums; upward of $80,000 was saved in 1905 (to Oc-
tober 1) by a reduction in fixed charges of agencies. Agents are now
required to render frequent accounts, sending their cash balances every
week instead of every month. Advances to agents against renewal
132 Legislative Insurance Investigation.
commissions are still made in about two-thirds of the cases. Present
rates of commissions are 75 per cent, graded; hitherto the maximum
commission has been paid on policies on the twenty-year distribution
plan, while the rate on annual dividend policies is 55 per cent. In
the future it is intended to pay the same rate of commission on both
classes.
Existing rates and types of policies have in the main been coU"
tinued. But in September last the Company made an interesting de-.
parture in the issuance of the various classes of policies on reduced
rates of premium, both on participating and non-participating basis,
the policies being much simpler than the old forms and intended
for life insurance purposes only. Cash surrender value is provided
for only at the end of twenty years, and in the case of intervening
lapse there is no surrender value except in the form of paid-up insur-
ance. In support of this it is urged that cash surrender value facilitates
change of insurance from one company to another, promotes lapsing,
and is thought to increase the mortality rate, being availed of gener-
ally in case of sound lives. The reduction in the rate of premiums
upon this form of policy is about thirteen per cent., the' loading itself
is reduced about sixty per cent., due to the reduction in the rate of
commissions, twenty per cent, only being paid on participating and
fifteen per cent, on non-participating policies, with seven and one-half
per cent, and five per. cent, renewal commissions respectively for four-
teen years. It is not expected that much of this class of insurance
can be placed through the agents under present conditions, and the
object was to provide cheaper insurance for those who were willing
to take it directly from the company. About $375,000 has been taken
out in ahont three months out of a total of $7,'5063000 of insurance
written during the same period.
Prior to the reorganization the company had made very few invest-
ments in securities, the total value of securities (bonds) on November
30, 1904, being $481,624. Under the new administration investments
in mortgages on real estate have not been favored and it has been the
policy in order to decrease the proportion of this class, to reinvest the
cash balances and the moneys received in paymemnt of mortgage loans
in securities. Upwards of $4,000,000 have been so invested since Janu-
ary 1, 1905, of which forty per cent, or more have been purchased
through the brokerage firm of which Mr. Eyan's sons are members.
It is stated that no securities have been bought from Mr. Ryan or
from Mr. Morton, or from any firm or institution in which any officer
or director of the company has an interest, save in the case of some
Report of the Committee. 133
$300,000 of Japanese bonds, Second Series, and $100,000 LouisvilJe,
Memphis & Southeastern stock, which were bought from the Morton
Trust Company. This, however, should not be taken to mean that the
company has not invested in securities of corporations in which its
directors are largely interested. It is the declared policy of the com-
pany not only to make permanent investments in securities, but to
buy with the view to resale, and it- has been frankly stated by the
President that in his opinion " one of the functions of a life insurance
company is that of a banker where it can make a legitimate profit in
safe securities for the benefit of its policy holders." In this
view it has been deemed advisable that the investments of
the company should be handled by those who are close
to large financial operations TTip meetings of the Finance
Committee have been' held at the office of the Morton Trust
Company. It is said that Mr. Eyan has not attempted to influence
the committee in its discretions, but that all its transactions have been
entered into with the knowledge and approval of all the members. On
January 13, 1905, at a meeting of the Finance Committe, a purchase
of $100,000 of the bonds and 1,000 shares of preferred stock of the
American Tobacco Company was authorized. The bonds were sold in
February and the stock in July; a further purchase of $100,000 of
the bonds was made in March, and these were sold in July ; the profits
of the transaction amounted to about $9,500. In July, 1905, at a
meeting of the Board of Directors, the Auditing Committee reported
that they had had before it all the officials of the company charged
with the supervision of accounts, and had made detailed and search-
ing inquiries into all the points which had come up in the course of
the examination; that the books and accounts had been examined by
a professiona accountant as an independent examiner and that his
examination verified the officials' reports. It was further stated by
the Committee that they noted several investments in industrial securi-
ties and that they doubted whether these would meet with the approval
of the Superintendent of Insurance. It was recommended that no
further investments of this character should be made. In accordance
with its general financial policy the company has entered into six
syndicate underwritings since January 1, 1905. Three were in con-
nection with Japanese Government bonds and one related to Pennsyl-
fania Eailroad Company convertible. These were under the manage-
ment of Kuhn, Loeb & Co., and the Washington Life withdrew its
bonds, selling most of them soon after they were received. The two
remaining syndicates, notwithstanding the action taken in July, were
entered into in November in connection with syndicates of the Indus-
134: Legislative Iiisurnnce Investigation.
trial class, to wit, bonds of the Republic Iron & Steel Company and
'the Bethlehem Steel Company. In the interest in the former was
a portion of the participation of the Morton Trust Company.
The company has five bank accounts — four in the City of New
York. The account with the Liberty ISTational Bank is the active
account of the company. The account with the Morton Trust Com-
pany, which has been running for many years, was considerably, in-
creased in January, 1905, by the withdrawal of balances from the
Bank.of America and the United States Mortgage & Trust Company.
It is the account used in connection with investments. The monthly
bank balances during the first ten months of 1905 were as follows; .
1905.
Liberty Chatham National -Kt^-tr.^ Girard
National National Bank of rrTi^t ??^ Nat'l Bk. Totais.
Bank. Bank. Commerce. "^^^ ^°- of Phila.
.Tanuary $86,04173 $86,15138 $475,542 53 $587,735 57
February 04,383 07 26,126 48 695,058 68 815,508 23
March 67,486 94 19, 801 14 $30,000 00 644,488 11 ' 741 ,476 19
Aoril 14,227 01 15,168 15 20,000 00 259.188 77 $37,620 77 846,304 70
May 55,447 05 10,933 76 20,000 00 900,889 79 53,483 44 1,040,773 04
June 61,675 33 18,940 58 80,000 00 459,r09 27 74,90185 629,437 08
July 38,73165 25,065 98 20,10191 239,498 03 61,427 47 878,834 98
August 31,330 93 8,035 38 10,10191 12,468 14 63,545 86-136,478 81
September.... 27,803 Oi 14,483 84 20,10191 72,788 85 54,830 39 189,946 41
October 47,438 93 20,522 77 80,805 96 20,89131 45,150 28 153,609 35
The monthly bank balances were largely reduced in August, 1905.
It is the opinion of the management that the real estate owned by
the company is too large and it is the intention to reduce the invest-
ment as rapidly as possible.
Of the outstanding insurance $13,339,000 is on the annual dividend
plan and $45,440,000 on the deferred dividend plan. For several
years past annual dividends have been calculated on the basis of an
allowance of IJ/^ per cent, interest upon the initial reserve for the
policy year, and 5^4 per cent, of the loading on the annual premium.
As the loading remained constant the amount thus calculated would
increase by the allowance of interest upon an increasing reserve. The
result was modified by the application of a scale of percentages vary-
ing according to the duration of the policies. Thus policies issued in
1860 received 100 per cent, of the amount as ascertained and' policies
issued in later years received reduced percentages, those since 1898
having 20 per cent. Under this method, whether the company made
or lost money, the gain of the policy holder would increase as his
policy aged and its reserve increased. Apparently the company has
decided to use the same plan for the distribution of dividends in 1906.
Report of the Commlltee. 135
It was reported to the Insurance Committee of the company that
about $105,000 would be necessary to pay dividends in 1906 on the
same schedule as had obtained in 1905, and it was voted to recommend
to the board an appropriation for that purpose. It is said that the
financial history of the company precludes any actual determination
of the so-called real earnings, but as the surplus had been lost, it
would seem clear that there were no earnings in hand. An estimate
for nine months of 1905 shows the actual earnings to amount to'$226,-
000, of which $77,000 'was the amoun+ of dividends paid to policy
holders in 1905 and $149,000 as increase in surplus. The method of
calculating deferred dividends under the former administration i&
stated to be as follows:
" Dividends on deferred dividend policies have been computed
by taking the sum of the reversionary values of the annual divi-
dends credited to a similar policy on the annual dividend plan
and finding the cash value, at the attained age of the policy
holder, of such total reversionary insurance; and cash contribu-
tions so found were then reduced to the actual cash dividend by
means of percentages applied to the original cash values, which
percentages were computed and applied so as, in the judgment
of the then actuary, to produce results which would be, at all
ages, approximately the same percentage of premiums paid."
The company now intends to adopt a method of taking the annual
dividends declared on similar policies and accumulating them at
interest until the end of the distribution period, "or what comes to
the same thing, to accumulate them as pure endowemnt " to that time.
It was admitted that as the surplus had been exhausted and the capital
impaired at the end of 1904, whatever will be apportioned to the de-
ferred dividend policies of earlier issues than 1905 will depend upon
the surplus gained after January 1st of that year. But it seems to be
the intention, upon the ground of expediency, to draw upon this surplus
to make up to the holders of deferred dividend policies the losses of
past years. PajTnents under deferred dividend policies maturing, in
1905 were made in accordance with apportionments which had been
determined upon before the reorganization, although it is evident that
these apportionments had been declared upon false hypotheses of gains.
This company did not furnish copies of estimates given by its agents,
but it was acknowledged that the actual results of deferred dividend
policies were very much lower than the estimates. The new manage-
ment does not permit the use of estimates.
136 Legislative Insurance Investigation.
GEEMANIA LIFE INSUEAKCB COMPANY.
The Gefmania Life Insurance Company was organized in 1860
Tinder the General Act of 1853, with a capital stock of $300,000.
Stoclcholders are entitled to interest at a rate not exceeding 7 per
cent, a year. In addition to the stockholders every policy holder pay-
ing at least $100 a year in premiums, and every person having an
annuity of not less than that amount, is entitlel to one vote in the
election of directors; and erery person whose life is insiired by a
policy, the legal reserve on which at the end of the last policy year
amounted to $100 or more, is also entitled to a vote for each even
$100 of the, amount of such reserve. All votes may be given in per-
son or by proxy. The provision- for giving the insured a voting power
corresponding to the reserve against the policies was an amendment
of the charter in 1901. There are about 63,000 policyholders. Proxies
executed since 1901 and representing 42,514 votes are held at the office
of the company. They run to the president and^ two vice-presidents. ■
Under these proxies, 13,000 votes were cast at the' last election.
By an amendment of the charter in 1867, it was provided that within
three months after the expiration of that year an account should be
stated showing the net profits of the company, 20 per cent, of which,
in addition to the interest on capital, was to be paid to the stock-
liolders, and the remaining 80 per cent, was to be equitably divided
among the policy holders. It was further provided that on or before
J-qlj 1, 1869, and in every subsequent year, or at such, times as the
directors should determine, a balance should be struck and a sum
equal to 5 per cent, of the capital, in addition to interest, should be
apportioned among the stockholders, and the remaining net profits
should be divided among the policy holders. The stockholders re-
ceive'd 7 per cent, until 1868, and have been paid 12 per cent, since.
No other payments have teen made to them.
At the end of 1885, the outstanding insurance amounted to $39,-
992,080 ordinary, and $1,836,609 industrial, the annual premium in-
come to $1,614,893, and the surplus to $891,604. In 1904 the out-
standing insurance was $103,937,349 ordinary, and $389,924 indus-
trial, the premium income was $4,478,240, and the surplus over lia-
bilities, exclusive of capital stock, amounted' to $4,844,780.11. This
amount includes the dividends apportioned which would be payable .in
1905 and subsequently. No industrial business has been transacted
for twenty years, the amount still 'outstanding being that which re-
mains of the old business.
Report of the Committee. 137
In the annual report of December 31, 1904, the assets of the com-
pany are thus set forth :
Assets :
Book value of real estate $3,111,069 37
Mortgage loans on real estate 16,909,978 00
Loans on policies 2,041,013 71
Book value of bonds owned 9,983,923 39
Cash in office and banks 811,699 01
Interest and rent due or accrued 365,493 61
Market value of bonds over book value 227,718 53
Net amount of uncollected and deferred premiums. . 653,886 77
Total ". $34,104,782 39
Liabilities :
Net reserve $29,035,049 00
Present value of unmatured contracts 24,277 47
Liability upon canceled policies 7,779 58
Total policy claims 129,618 61
Premiums paid in advance 11,193 27
Dividends or other profits due policy holders 52,084 35
Dividends apportioned payable to policy holders dur-
ing 1905 343,055 51
Dfvidends apportioned payable to policy holders sub-
sequent to 1905 1,662,829 10
Keserve for absolute, war and world policies 100,063 08
Capital stock 200,000 00
Unassigned funds (surplus) 2,538,832 42
Total $34,104,782 39
Among its real estate holdings are its office huilding in New York,
which cost $462,500, and is carried at a hook value of $507,731, an
office building at St. Paul, which cost about $800,000, and is carried
at $700,000; an office building in Berlin, which cost $291,947, and
one in Vienna, which cost $180,799.87. During the past four years'
about 40 per cent, of the real estate acquired through foreclosure has
been disposed of, and the remainder at the end of 1904 was carried at
a book value of $861,744. The company claims to have favored
138 Legislative Insurance Investigation.
conservative investments in the interest of stability. About one-half
its assets are invested in mortgages npon real estate. Its investments
in securities have been for the most part in railroad bonds. There
have been no participations in syndicates and the company owns no
stocks.
The insurance expenses of the company have been high, amounting
to 114.31 per cent, of the loading on its premiums. The salaries of
the executive officers are as follows: President, $18,000; vice-pres-
ident, $13,500; second vice-president, $10,000; actuary, $6,000; secre-
tary, $5,000. The president's salary was increased from $12,500 to
$15,000 three or four years ago, and to $18,000 in January, 1905.
The vice-president's salary has been raised from $10,000 within the
past fi-ve years. The legal expenses in 1904 amounted to $3,715.63.
The company states that it has made "no contributions to political
campaign funds for ten years last past. Its only payments in con-
nection with legislation have been $350 for counsel fees in connection
with the enactment of a law in 1904 relating to conditional bills of
sale, and $550 for the use of the committee opposing the mortgage, tax
law passed at the last session.
One-third of -the business of the company has been done in Ger-
many. The company has had no difficulty with the German govern-
ment, but on the contrary has found that its business abroad has
been satisfactorily transacted at less cost and shows greater persistence
than here. In Germany many commissions are the equivalent of 35
per cent, on first years premi^ims and 4 per cent, renewal commis-
sions, as against 65 per cent, and 7}4 per cent, respectively and ad-
vances and various additional expenses in this country. . It is said
that rebating is not known in Germany.
The fact that the expenses have exceeded the loadings' is explained
by the excessive cost of the new business, which, as in the cases of
other companies has largely lapsed. Thus it appears that during the
last four years although upwards of $51,000,000 of insurance has
been written, the outstanding insurance has increased only about
$22,000,000. The first year's expenses in 1904 amounted to
$686,248, or 350 per cent, of the margins in first year's premiums
including mortality gains.
Most of the business is on the basis of deferred apportionment of
dividends. Policies of thj^ kind are divided into classes, according
to the year of issue and the distribution periods. The Germaji Gov-
ernment requires the company to show the number of each class of
policies issued in a given year, the distribution period and the manner
Report of the Committee. 139
in \vhich the company annually determines the amounts to be propor-
tioned from its surplus to that class. The figures are given in detail.
In October of each year an estimate is made of the results of the
year, for the purpose of determining the dividends to be paid in the
year following. The same calculation is made whether the dividends
are actual or deferred. The company does not, as was found to be the
case with the New York Life, toward the end of the dividend period,
place to the credit of the policies about to mature a gross amount
very much larger than for any previous year, to meet the necessities
of distribution, but in each year determines the amount to be credited
to deferred dividend policies, in the same manner as in the case of
annual dividend policies. About 10 per cent, of the estimated
gains for the year are held as a contingent fund and the residue is
divided. In the case of a deferred dividend policy the dividend is
placed to the credit of the policy and is permitted to accumulate until
the end of the ^^eed period, when the aggregate of the amounts
annually ascertained or accumulated with interest is taken for dis^
tribution among the surviving policy holders of the class. On account
of the expenses of the business there are no actual accumulations
upon deferred dividend policies until they are about four years old,
but, despite this fact, each year there is apportioned the same amount
to a deferred dividend policy holder as to an annual dividend policy
holder. The following is a statement of the surplus added and the
total surplus in reichmarks, taking the ten-year class maturing in
1904, as reported to the German Goverament, in accordance with its
requirements :
' Surplus Total
Year. Added. Surplus.
1894 No accumulation.
1895 No accumulation.
1896 Marks, 6,085 53 Marks, 6,085 53
1897 " 7,032 18 13,117 71
1898 7,300 99 20,418 70
1899 8,105 61 28,524 34
1900 8,798 91 37,323 25
1901 , i.... 8,433 40 45,756 65
1902 10,447 22 56,203 87
1903 11,540 49 67,744 36
1904 11,717 65 78,691 81
Similar reports, have been made to the German Government of
the surplus ndded annually in each class of policies according to the
49 - -
140 Legislative Insurance Investigation.
year of issue. The results' have not corresponded to the estimates
furmshfed by the agents of the company; for example the estimate
on a fifteen-year paym'ent life policy with a fifteen year dividend period
was' $145 per $1,000 of insurance taken at age 39, and the actual result
\vas $102.3^. In the ease of an ordinary life policy talcen at age 54
with a fifteen-year aecuniulation due in 1904, the estimate was $323
and the actual result $114.73 per $1,000 of insurance.
From thfr annual statemeilt of December 31, 1904, it appears that
the surplus or tinassi^ed funds of the company amounted to
$3,53S,83S.43.
Despite the provision of the charter, that after 1869 the net profits,
after paying to stockholders 5 per cerit., in addition to 7 per cent.
" interest," should be divided among the policy holders, this surplus
fund has been accumulated. No part of it has been credited to any
policy holder or has been treated as available to the policy holders of
any class, Whether their dividends be annual or defererd.
HOME LIFE INSURANCE COMPANY.
The Home Life Insurance Company was also incorporated in 1860
Tinder the General Act of 1853. It has a capital of $135,000. Stock-
holders vote by shares in person or by proxy, and any person insured
for life paying to the company a premium of at least $80 a year is •
entitled tb voti^ personally but not by proxy in the election of direc-
tors. The policy holders, save in one case many years ago, when one
vote was cast, have never exercised their privilege. The election is
advertised in the newspapers, but no other, notice are given. It was
provided in the certificd,te of incorporation that the insurance business
should' be conducted on the principle of giving to the policy holders an
interest in the profits of the company as therein stated, unless it should
be otherwise agreed between the company and the insured; and it was
further provided that the net profits annually ascertained should be
apportioned to the holders of policies who may be entitled to .partici-
pate in the profits according to their respective contributions thereto.
Dividends on stock are limited to 6 per cent, semi-annually, and
stockhblders beyond the amount of their shares and such dividends
are not entitled to any part of the funds or profits of the company
save as they may be pdlicy holders. The stockholders have been paid
13 per- eeaiv annually.
Within the last twenty years the insurance in force has increased
from $17',819,416 to $74,893,339, and the annual premium income
Report of the CommiUee. 141
from $600,338 to $3,016,893. On account of the system of distribur
tion, to which subsequent reference is made, the surplus has not in-
creased. At the end of 1885 it was $1,343,953. At the end of 1904
it amounted over and above capital stock to $1,337,315.56, of which
$328,311.31 was stated to be a " special reserve to meet fluctuation in
value of securities." ,
The assets as of December 31, 1904, are stated to be as follows :
Assets:
Book value of real estate $1,660,606 38
Mortgage loans on real estate 4,735^339 19
Collateral "loans 13,750 00
Loans made on policies. .-. 1,008,368 50
Premium notes on policies in force 543,343 38
Book value of bonds and stocks owned 7,633,896 18
Cash in office and in banks 333,399 68
Agents' balances 51,051 30
Interest due or accrued, including rent 133,636 38
Market value of real estate over book value 70,447 48
Market value of bonds and stocks over book value. . . 338,311 31
Net uncollected and deferred premiums 368,630 79
Gross assets $16,657,380 37
Deduct agents' balances 51,051 30
Total admitted assets $16,606,339 07
Liabilities:
Net reserve $15,073,548 00
Present value of unmatured supplementary contracts. 49,088 00
Total policy claims 75,894 46
Premiums paid in advance 39,730 96
Dividends or other profits due policy holders 5,653 09
Special reserve to meet fluctuation in value of securi-
ties , 338,311 31
Reserve for all other contingencies 1,009,104 35
Capital stock '. 135,000 00
Total $16,606,329 07
The real estate owned by the company, with the exception of
two small properties in Brooklyn obtained through foreclosure,
consists of the office building in the City of JSTew York. The book
142 Legislative Insurance Investigation.
value is somewhat in excess of cost and tlie net income is between 2^
and S per cent, of the book ralue. The company has a number of
stock investments in banks and trust companies, but the holdings are
relatively small, the largest amount being 400 shares- in the National
Bank of Commerce. It also holds stocks in railroads, express, tele-
graph, gas and telephone companies. But the greater part of its
investments in securities is Jn bonds. There have been no partici-
pations in syndicates. It is a general rule to keep the bank balances,
including balances in banks throughout the country, within $300,000.
The company has never contributed to political campaign funds,
nor has it made payments in connection with legislation in any state.
It would seem that this company, as well as the other smaller com-
panies, has not felt called upon to make expenditures of this sort, but
that this matter has been left to the three leading companies. During
the national campaign of- 1896 $1,000 was expended in the purchase
and distribution of literature in support of the " gold standard."
The salaries of the executive officers are as follows.' President, $25,-
000; vice-president and actuary, $12,500; assistant secretary, $4,000.
All disbursements are said to appear regularly upon the booksj- and
no funds have been made available for concealed purposes through ac-
counts in the names of officers or otherwise. The testimony is that
the legal expenses in 1902 amounted to $12,490, in 1903 to $8,579 and
in 1904 to $4,743.
The insurance expenses, however, have been very large; amounting
to 120,. 13 per cent, of the loading. In explanation it is said that the.
company has been forced to " go in the market 'and pay the competitive
rate of commissions." If it were not subject to the strain of compe-,
tition and could be satisfied with a less amount of business it would
be able to keep within its loadings. The first year's expenses in 1904
amounted to $402,442.92, or 233 per cent, of the margins on the first
jear's business. Commissions are 55 per cent, graded, with an addi-
tional commission of 10 per cent, for an expense allowance, with re-
newals of 7J per cent, for fifteen years. In some eases there are addi-
tional expense allowances. Advances are made to a small exfent, the
entire amount outstanding being shown in the, statement to the depart-
ment. In the four years 1901 to 1904 the new business amounted to
about $51,000,000, but the net insu-ra,nce increased only about $20,-
800,000, showing that a very large percentage of the business was non-
persistent and entailed a heavy cost. Of the outstanding insurance
75 per cent, is on the deferred dividend plan, 11 per cent, on the
annual dividend plan and 14 per cent, is non-participating. Dividends
Report of the Committee. 143
are apportioned on every participating policy. In the case of a de-
ferred dividend policy the distribution is made in the same way as in
the case of an annual dividend policy, and the amount is accumulated
until the end of the deferred dividend period. It is the practice of
the company to keep an account with every deferred dividend policy
holder, and the present value of the total of the accumulations upon
his policies is taken as a li'ability ; that is to say, is carried by the com-
pany as a liability in the same manner as the ordinary legal reserve.
About $1,290,000 was thus included in the annual statement f6r the
year 1904 as a liability for deferred dividends. The surplus or reserve
for other contingencies is the amount which, as already stated, was
accumulated many years ago. In fact, it was practically the same
amount that it is now as early as 1880. It thus appears that the
current gains of the conipany have been divided, the annual dividend
policy holder receiving his dividend in cash or in the purchase of in-
surance, and the deferred dividend policy holder being credited with a
given amount for which the company assumes an obligaition subject
to the survival of the policy holder. The account with the policy
holders are open to inspection and information as to the dividend
created on particular policies is given upon application. In case of
death before the end of the 'dividend period the amount credited is
forfeited and is treated as restored to the general funds of the com-
pany and as forming part of the gains for the year in which -the lapse
occurred. The policies are not segregated according to years of issue
so as to give the surviving members of a class the gains from the
lapses of other members, but the gains from lapses form part of the
general profits of the company to be distributed among the policy
holders. It is the opinion of the management that the annual exposure
of the results of the business has been an efEective check in its opera-
tion, leading to greater care in the selection of business and to more
conservatism in the investments; in other words, the deferred divi-
dend liability has increased from $372,000 in 1896 to $1,390,000 in
1904, and this amount under other plans would have appeared as
apparent surplus.
The company has discouraged the use of estimates. In 1891 a
book of estimates was issued, but it was not used, only a few copies
being sent out, as the agents thought the estimates too low. But these
estimates were very largely in excess of the actual results ; thus in the
case of an ordinary life policy with fifteen-year dividend period taken
at age 44 the amount as shown by the estimates of 1891 -"ffould be
$175.25 per $1,000 of insurance, whereas the actual results for 1905
144 Legislative insurance Investigation,^
■ ■■II 1 -t ,.l^lM.IU-U-.-.--!'*J-L.li»^W.lW^
on such policy amounted to $106.77. This is accounted for by the
decline in the rate of interest and the increase in the cost of obtainiiig
new business.
The calculation for the apportionment of dividends is made in May
after the expiration of the iiscal year. The company has used since
1897 4J per cent, as the efEective rate of interest. The rate has varied
slightly from this in each year, but the assumed rate is said to approxi-
mate closely to the actual rate. In addition to the estimated gain from
this source*' 14 per cent, of the gross or tabular rate of premium is the
charge assumed for expenses, and the residue of the loading over and
above the net premium is estimated as gained. The fact is that the
total loadings are exceeded by the expenses ; but the gains from mor-
tality are not separately calculated for dividend purposes and in effect
are treated as used for expenses. Finally, the accuracy of the calcu-
lation is checked by ascertaining whether, after determining the
amotmt of dividends upon this basis, the surplus has materially in-
creased. Otherwise it is assumed that the calculation is substantially
correct.
BANKBES' LIFE INSUEANCB COMPANY.
This company was originally formed in 1869 as a fraternal organi-
zation under the name of the " Bank Clerk's Mutual Benefit Associa-
tion." In 1893 it was re-incorporated under the Laws of 1887 as an
assessment company, changing its name to the " Bankers' Life Insur-
ance Company." The policies were divided into two. classes. Class
A consisting of the assessment policies issued prior to the reorganiza-
tion, and Class B of the policies subsequently issued. The new con-
stitution provided that $1 for each $1,000 insurance in force on De-
cember 31 in each year should be set aside from the contributions of
Class B to reduce the cost of the members in Class A. The new poli-
cies were ten-year-term policies Although the company as an assess-
ment association was not required to maintain a reserve save to the
extent of one mortuary call, it established a voluntary reserve for its
own protection. It was ascertained in 1895 that the rates which had
not been fixed scientifically were inadequate, and the rates were in-
creased substantially to the amounts charged by the so-called "old
line" or level premium companies. Having, a considerable accumu-
lation ;t)f reserve fund, it also embraced in its policies features similar
to those of level premium companies, and among them cash surrender
values, but although copies of policies bad been furnished the Superin-
Report of the Committee. 145
— '■ 1
tendent a year or so before and no objection was made, in 1898 this
was objected to by the Department of Insurance as unauthorized by
law and misleading to the public. The Superintendent wrote to the
company : " The policy contracts of your company must be amendeji
so as to meet with the approval of this Department, or I will be com-
pelled to take action of a character which will be detrimental to your
management and will necessarily prejudice your company before the
insurance public." It is said that the company then desired to de^
posit $100,000 with the Department so that it might be able to avail
itself of the provision of section 214 of the Insurance Law (as
amended in 1894) relating to assessment companies. "This article
shall not present any corporation, association or society authorized to
do business hereunder from paying out of surplus accumulations or
reserve fund to its members such ratable cash dividends or crediting
on assessment such ratable sums as they are now or may hereafter be-
come entitled to by the terms of their contracts', provided that nothing
~ contained in this article shall be construed to permit any contract
promising any fixed cash payment to any living certificate or poliqy
holder, unless such corporation, association or society shall have de-r
posited the sum of one hundred thousand dollars with the Insurance
Department of the State and the Superintendent has certified to that
efEect." The Department . seems to have regarded the statute as
enacted for a special purpose, and took the position that it was ap-
plicable only to policy contracts existing at the time of its passage.
This position is defended upon the ground that the Department was
endeavoring to protect the public against a defect in the law, and the
Bankers' Company was informed substantially that it would not be
permitted to issue the desired policies even through the deposit were
made. In 1899 the company was reincorporated as a level premium
company, with a capital stock of $100,000. For this purpose a con-
siderable amount was borrowed hy the subscribers to the stock, a
majority of the total shares being pledged as collateral. The Ipan was
called in 1902, and thereupon the pledged stock was sold at private
sale at 120, and the purchasers within a short time resold it at 300
to Hon. Foster M. Voorhees, who was acting on 'behalf of the Knicker-
bocker Investment Company. The latter company had been organized
in March, 1902, as a New Jersey corporation, and was authorized to
do a general investment business. It seems that " one of the pui-poses
of the organization" was "the control of a life insurance company
through the ownership of its stock." The company acquired 626
shares, in all, of the stock of the Bankeru' Company. Before the
146 Legislative Insurance Investigation.
-I .1.1 . I.-1- ■ I
agreement for sale had beeh^ executed the directors of the latter com-
pany, largely representing the minority interests were so disturbed
by the proposed transfer of a majority of the stock to outside parties
that they adopted a resolution opposing the consummation of the
agreement and instructing counsel to take such steps as might be neces-
sary 4o protect the interests of the company. As a result, a voting
trust was arranged for five years, with Hon. Foster M. Voorhees, Mr.
William Sherer and Hon. Edward C. Stokes as Trustees. To effect
the purchase large amounts were borrowed upon the stock as collateral,
for which certificates of beneficial interest, issued by the voting Trus-
tees, .were substituted. In the early part of 1904 Henry P. Townsley,
who at one time had been general manager of the Bankers' Company,
and Eugene Van Sehaick, as attorney-at-law, acquired a small iaterest
in the stock of the Knickerbocker Investment Company. Thej be-
cam'e directors, and also took over some of the loans of the company,
amounting to about $35,000, with voting trust certificate as collateral,
representing something more than a majority of the stock of the
Bankers' Company. Later the Knickerbocker Investment Company
brought suit to remove the trustees and to set aside the toting trust,
charging conspiracy and fraud against the trustees and alleging that
the trust had been created as a part of a scheme for acquiring control
of the Bankers' Company, with consequent personal benefits to them-
selves. The suit was tried before Hon. Hamilton Odell as referee,
who found that not one of the allegations of collusion or conspiracy or
fraud had been found to be true, and that the voting trust was legal.
Prom a judgment dismissing the complaint it is understood that an
appeal was taken. In the early part of 1905 Messrs. Townsley
and Van Sehaick organized under the laws of Kew York a company
known as the Manhattan Bond and Underwriting Company, for the
purpose of obtaining control of the Knickerbocker Investment Com-
pany, and through that the control of the Bankers' Life. The Man-
hattan Company took over from them the obligations which they held
of the Knickerbocker Company, with the voting trust certificates as
collateral. The Manhattan Company has acquired also a majority of
the stock of the Knickerbocker Company, issuing in exchange its
bonds payable in 1925, with interest at 5 per cent., payable only out
of net earnings. Messrs. Townsley and Van Sehaick own practically
all the stock of the Manhattan Company and thus control the Knicker-
bocker Investment Company, which in turn, subject to the voting trust,
controls the Bankers' Life; they also through the Manhattan Company
control the indebtedness for which the majority of the stock of the
Report of the Committee. 14.7
Bankers' Life or the voting trust certificates representing it has betm
pledged.
On December 31, 1904, the company had outstanding insuranct;
amounting to $32,738,036, and its surplus over and above liabilities
and capital stock amounted to $86,733.97. The Insurance Depart-
ment made an examination in the early part of 1905 which confirmed
the correctness of the statement. The assets of the company (Decem-
ber 31, 1904) are slated to be as foUdws:
Mortgage loans on real estate $83,350 00
Collateral loans 4,986 43
Loans on policies 108,003 83
Premium notes on policies in force 14,309 94
Book value of bonds and stocks owned 941,513 63
Cash in bank and in office 126,922 98
Bills receivable 1,310 73
Agents' balances 49,356 95
Furniture ahd fixtures 13,038 33
Jrrterest accrued 3,353 68
Market value of bonds and stocks over book value. . . 24,194 88
Net uncollected and deferred premiums 84,615 00
Gross assets $1,453,645 36
Deduct as Not Admitted:
Furniture and fixtures $13,t)38 33
Agents' balances 49,356 95
Bills receivable 1,210 73
Premium notes or loans in excess of
net value of policies 850 00
64,346 01
Total admitted assets $1,389,299 35
Liabilities:
Net reserve • $1,182,876 00
Present value of unmatured and supplementary con-
tracts . 3,125 00
\
148 Legislative Insurancjb Investigation.
Liability on canceled policies $175 89
Total policy 'claims J2,700 00
Premiums paid in advance 565 47
Salaries, rent, commissions and other accounts due of
accrued 1,937 58
Agents' balances 1,195 44
Capital stock 100,000 00
Unassigned funds (surplus) 8'6,733 97
Total , $1,389,29P 35
These Assets, as stated by the examiner, are of assured value, the
larger part being represented by railroad bonds. The stock invest-
ments, which do not include any holdings in banks or trust com-
panies, amount in market value to about $58,000. There have been
no syndicate operations.
At the end of 1899 the surplus over capital stock amounted to
$63,988 and in 1901 had reached $185,576. At the end of 1903 this
.had been reduced to $63,471 and, as above stated, the amount was
increased to $86,734 in 1904. The following is a statement of the
annual results or n-et earnings and losses of the business according
to the annual statements since the reincorporation:
1900, gain ' $95,501 00
1901, gain 33,290 00
1903, loss 25,528 00
1903, loss 49,715 00
1904, gain 58,655 00
The expenses in 1904 amounted to $283J586. They were practically
the same in 1903 and over $300,000 in 1902, rising from $223,000
in 1899. The expenses have very largely exceeded the loadings upon
the premiums. Eecently economies have been introduced. The
salary of the president, who resigned in November, 1905, was $8,000.
The former third vice-president, who received a salary of $4,000, is
now acting president without salary. The other members of the
executive force are tKe medical director, whose salary was reduced
from $5,500 to $4,500 in November last, and the general coimsel and
Report of the Committee. 149
Beeretary, who receiye $3,500 and $2,700, respectively. The legal
expenses have been as follows :
1900 ! $16,056 34
1901 10,329 09
1902 3,099 91
1903 3,1'31' 09
1904 1,908 11
There have been no contributions to political campaign funds and
no expenditures in connection with legislation. "^
On the three principal forms of policy, ordinary life, twenty-year
life 'and twenty-year endowment, the first year's commissions are 65
per cent, graded, and the renewal commissions 15 per cent, the second
year and 7^ per cent, for the remainder of the life of the policies.
Eecently, advances to agents have been, to some extent, reduced.
Prom' 1899' to 1902 the policies issued were on the modified prelimi-
nary term plan, that is to say, they had but one preliminary term
rate ^equivalent to the ordinary life rate after the first year and the
additional amounts paid in the case of premiums on limited payment
life and endowment policies were guaranteed to be returned on the
basis of cash values and Jience were included in the reserves. In New
York these policies have been valued as they were written, but the
Massachusetts Department disregarded the terms of the contracts and'
valued them' as if the insurance for the first year was altogether term
insurance. The result was that in 1904 $109,992 was charged for
reserves in New York in excess of what was charged in Massachusetts,
In 1902 the company abandoned the modified preliminary term plan
and has been writing since full preliminary term insurance. That is,
although a full premium is charged the first year, that year's insur-
ance is treated and valued as one year's term insurance, making al-
most the entire first premium available for expenses. The cost of
obtaining new business in 1904 amounted to $153,082, and the com-
pany had aVailiable out of its first year's premiums on the full pre-
liminary term basis and out of its first year mortality gains aggre-
gate maz^ns of $132,046.21. In other words, the expenses were 116
per cent, of the margins calculated in this manner.
About $1,300,000 of the outstanding business has been ■written on
the ten, fifteen and twenty-year distribution plans. Despite the losses
150 Legislative Insurance Investigation,
above mentioned the dividends to policy holders have steadily in-
creased. They have been as follows:
1900 .' _ , $1,988 00
1901 5,215 00
1902 21,035 00
1903 25,837 00
1904 35,402 00
The charter does not limit the returns to the stockholders and
the annual statements show that they received " for interest or divi-
dends" in 1900, $5,500; in 1901, $6,000, and in 1902, $7,000.
Nothing was paid to them in 1903 or in 1904.
PROVIDENT SAVINGS LIPJ} ASSUEANCB SOCIETY.
The -Provident Savings Life Assurance Society was organized in
1875 under the General Act of 1853,, with a capital stock of $100,000,
divided into 1,250 shares of the par value of $80 each. Poliqy
holders are not entitled to vote for directors. . The stockholders may
receive semi-annual dividends not to exceed 3J per cent. The char-
ter provides that the net surplus arising from the payments of per-
sons-insured "upon the participating or mutual plan" shall be di-
vided equitably, and that surplus arising from the payments of those
insured "upon the non-participating or stock plan," or from other
"sources, shall be credited pro rata to the stockholders, but shall be
retained by the corporation as a guaranty fund until the same shall
amount to $250,000, after which the excess may be divided among
the stockholders annually. The society was formed originally by the
Actuary, Sheppard Homans, who managed it until about 1894. Its
surplus over liabilities at the end of 1894 amounted to $764,000 and
had fallen to $492,340 at the end of 1896. In the fall of 1896 Frank
E. Hadley, of New Bedford, Mass., made arrangements to. acquire
1,025 shares of the stock at a total cost, with- expenses, of about
$363,000. Two hundred thousand dollars was borrowed on the stock
from the Continental Trust Company and $125,000 was procured by
Hadley through temporary loans. The transaction was completed
on the 22d of December, 1896, when Hadley took control of the
society, and a new Board of Directors and new oflBcers were elected.
On the same day the society loaned Hadley $37,500 to enable him to
complete the purchase, and within two months he obtained three ad-
Report of the Oommittee. 151
ditional loans from the society to the amount of $125,000 to take up
his temporary loans, and thus to the extent of $163,500 the society
supplied the means for the purchase of the control of its own stock.
The collateral for the loans consisted largely of the stock of mills
with which Hadley was connected. These mills failed the following
April, and about the same time Hadley committed suicide. The
society has charged to profit and loss about $145,000 on account of
these loans. . Mr. Edward W. Scott, who had become president of the
society on the reorganization in the preceding December, through
sundry conveyances acquired Hadley's equity in the stock, subject to,
but without assumption of, his loans. Nothing was paid by Mr. Scott
for the transfer. In July, 1897, the Continental Trust Company
sold at auction the 1,025 shares of stock, and they were bought in bj
Mr. Scott for $205,500. Through the introduction of Mr. John A.
McCall, Mr. Scott borrowed, with the stock as security, $180,000 of
the purchase price from the New York Security and Trust Company,
and tehortly after Mr. McCaU's brother-in-law Mr. Horan, became
Comptroller of the society at a salary of $6,000 a year, retaining
the office for a little over two years. About $20,000 more of the
purchase price was obtained by Mr. Scott from Messrs. Boswell and
Buckley, agents of the society, the same being advanced to them at
the time by the society upon their general account. Mr. Scott's
explanation is that the agents desired to take an interest in the stock
to the extent of 100 shares, and the moneys were advanced to facili-
tate the purchase. About a year and a half later they surrendered
their claim to the 100 shares to Mr. Scott. The society, it is said,
has received interest at 5 per cent, upon the sum advanced by it, but
no part of that sum has been repaid to the society, and apparently
it now has nothing to show for the money save a letter from Mr.
Scott that it wiU be entitled to 100 shares of its own stock when
the same shall be released from the pledge. The letter is as follows :
"February 27, 1901.
"E. K. Hubbard, Esq., Comptroller:
"Eegarding the so-called Boswell and Buckley stock of one hun-
dred shares, I want it understood as it was by your predecessor, that
when it shall be released the same is to be taken into the treasury
of the company by proper transfer.-
"E. W. SCOTT.
" Have this /lied in security vault," ^
When this was under investigation by the Committee in Decern Ijer
last it appeared that there was still due to the New York Security
152 Legislative Insurance Investigation.
and Trust Company $50,000 on the Scott loan, for which the stock
was pledged as coUateopal. As it .appears that the society has made
advances, stiU unpaid, to the extent of $165,000 in order to facilitate
the puirehase of its stock, it would seem proper that appropriate pro--
eeedidgs should be taken to ascertain and sprotect any equity to which,
by reason of these facts, it may be entitled.
Following the disclosures in 1897 relating to Hadley's transactions,
the Insurance Department made an examination showing a surplus
over liabilities, not including capital stock as a liability, of $353,-
JS6.34. There has not been since that time an examinatiori by the
Department. According to its annual statement as of December 31, ^
190i, the society had outstanding insurance amounting to $101,-
189,448 and a surplus over liabilities of $751,767. Its assets were
thus classified:
Assets: ' p n '" - ' ' ■ '
Book value of real estate ,. . . $3,514,793 36
Mortgage loans ^ 700,395 33
Collateral loans ' 9,300 00
Loans on policies 3,389,450 96
Premium notes on policies in force 361,446 16
Book value of bgnds and stocks owned ^ 796,999 93
Cash in office and in banks' 488,357 31
Bills receivable 980 88
Agents' balances 77,005 77
Loans to agents 50,000 00
Interest and rent due or accrued 88,361 06
Market value of real estate over book value 189,706 74
Market value of bonds and stocks over .book value. . . 18.400 33
Net amount of uncollected and .deferred premiums. . 539,373 00
Due for excess taxes paid 13,335 50
Gross assets $8,037,404 91
Deduct Not Admitted:
Agents' balances - $.77,005 77
Bills receivable
Premium notes or loans in excess of
net value of policies
Total admitted assets. .....
980
33,330
88
00
111,306 65
$7,936,198 36
Report of the Committee. 1,53
Liabilities:
Net reserve $61,951,961 00
Present value of unmatured supplementary eon-
ti"acts 30,417 00
Liability on cancelled policies 13,173 00
Total policy claims 149,9*Q0 00
Dividends or other profits due policy holders 2,185 33
Trust funds 86,795 82
Capital stock , . . ^ 100,000 00
Unassigned funds to provide for all other contin-
gencies 651,761 11
Total $7,926,198 26
The society has ahout $66,000 invested in stocks, of which about
$43,000 is iavested in the stock pf the Merchants' Exchange National
Bank, where the society carries its largest deposits, averaging for some
time prior to September, 1905, about $300,000, when they were
largely reduced. The other local banks of deposit of importance are
the New York Security and Trust Company, where, during the first
ten months of 1905, the monthly balances averaged $100,000, and the
Standard Trust Company.
Keal estate valuations have been dealt with in a remarkable man-
ner. One parcel of its holdings consists of an office building at Waco,
Texas, erected by the society in 1889, at a cost of $145,448.53. The
cut stone for the building, which has been contributed locally was
deemed to be worth $50,000, and it is said that there was an appraise-
ment of the property at about $353,000. It was carried, however, on
the books at the cost to the society uptil 1897. There appears in the
annual statement for that year under the head of income, and as pro-
fits on account of the property, the sum of $56,537.97, the result of
adding that amount to the book value. In 1898 it included in its
statement of the year's profits $35,000 more by another, adyance in
valuation. In 1899 the profits were increased by a further advance
on the same property to the extent of $36,980.50. This brought the
total book value to the sum of $353,957, and at this amount it was
also carried in 1900. In 1901, it is said that the property was ap-
praised at $235,000, but the book value remained the same as there-
tofore. In 1903 it was exchanged for the premises Nos. 533 and 534
Broadway and Nos. 80 and 82 Wooster street. New York City. The
Broadway property was taken at $215,000 and the Wooster street at
154 Legislative Insurance Investigation.
$45,000, making an apparent profit of $6,000 over the book value of
the Waco property. A loan of $135,000 was made to the purchaser
upon the Waco property as security, and in six months, on the first
default of interest, the property was reeonTeyed to the society in pay-
ment of the loan. Thus the society had in effect paid for the Broad-
way and Wooster street properties $135,000. The Waco property
was then entered upon the books as acquired in 1903 at a book value
of $204,697.30 and the market value in the report of 19.03 was stated
at $305,000. In 1903 the'value was increased from $305,000 to $330,-
000 and in 1904 ta $335,000. The property ig still owned by the com-
pany.
In 1897 the company owned a lot and building in Savannah,
Georgia, which had cost $83,107.26. Among the profits of that year,
as shown by the annual statement, is the sum of $18,436.34, an, ad-
vance in the valuation of this parcel. In 1899 the property was
marked up again and a profit shown for the year of "i$l'9,464.37. It
appears that in 1900 the society obtained an appraisal at $139,301.35,
and in that year the book value was advanced $8,733.39. In Septem-
ber, 1901, this property, a parcel at Englewood and another at Ma-
maroneck, were exchanged for property on West Twenty-seventh
street, Kew York. The terms of the exchange were that the Engle-
wood property was put at $10,000, that at Mamaroneck at $50,000,
that at Savannah at $150,000, and $43,063.53 was paid' in cash, mak-
ing, $353,063.53 the consideration for the West Twenty-seventh street
property. But in the statement of December 31. 1901, the latter
property was included at the book value of $333,000, a profit of $70,-
000 over the September price being included in the gains of the year.
The society made a loan to the purchaser of $110,000, secured by
mortgages, $85,000 on the Savannah property; about $30,000 on the
Mamaroneck property and $5,000 on the Englewood property. There
was one payment of interest and then the three properties were taken
back by the society in 1903, in consideration of the cancellation of the
mortgages. The book value of the Savannah property was placed at
$102,431.94 in the statement of that year; the market vahie was
stated to be $110,000. In May, 1904, the same property taken at
$175,000, the Englewood property at $12,000 and another property
at Waco taken at $75,000 were deeded, with $10,200 in cash, in ex-
change, for the premises Nos. 536 and 538 Broadway. The total
consideration was $273,200. A mortgage of $75,000 on the Savan-
nah property was given by the purchaser, which is now under fore-
closure. After this transaction the society owned the premises Nos.
Report of the Committee. 155
530, 533, 534, 636 and 538 Broadway, New York. N"o. 530 stood
at a book value of $144,911.17; Nos. 532 and 534, originally taken at
$215,000, stood at $275,000 and Nos. 536 and 538 had cost, according
-to the terms of the last exchange, $272,200, making a total hook value
of $692,111. The plottage or advantage of having the parcels in one
ownership was appraised at $60,000, hut in the statement of 1904
the hook value was placed at $954,145.51, the difference being taken
as profits for the year. The market value was placed at $995,000.
The Mamaroneck property, to which references has been made,
was acquired on foreclosure in 1900 for a debt of $20,000, and im-
mediately was put in at a hook value of $40,000. Recently the
above-mentioned property on West Twenty-seventh street and sev-
eral other parcels were exchanged for the building at Fo. 35 Nassau
street, formerly owned by the Metropolitan Life Insurance Company,
which is carried at a book value of -$1,193,068.30.
It will he noticed that despite the restrictions of the Insurance
Law the society has about one-third gf its' assets invested in real
estate. It owns no xjffice building save the one at Waco. Through
formal exchanges, followed by a reacquisition on discharge of mort-
gages of properties which it originnally owned, it has extended its
real estate holdings. It has also acquired real estate in consideration
for annuities. To the proper function of an insurajice company it
has added a considerable real estate business, the desire to make a
better showing of annual gains through an advance in valuations
being apparently not the least important motive.
It is evident that there should be an examination by the Depart-
ment and a careful reappraisement of the properties of the society.
Until about 1896 the policies issued by the society were almost
entirely yearly renewable term policies. The society in efEect was upon
a natural premium basis, with increasing premiums as age advanced,
It naade insurance gains and accumulated a considerable surplus,
but at the same time the mortality rate had been rising very steadily.
Transfers have been made of old yearly renewable term policies to a
large extent, but they still remain about one-sixth of the society's
-outstanding insurance, and the heavy mortality rate upon ihSBe poli-
cies is a cause of serious loss. The mortality experience for the year
1904 was as follows:
Batio of Actual
Exposures Expected Loss. Actual Loss. to Expected.
$96,251,707 00 $1,497,426 00 $1,459,310 00 .975
156 Legislative Insurance Investigation.
The mortality loss was divided among the different dasses of
policies as follows:
Batio of
Class. Exposure. Expected Loss. Actual Loss. Actual to
ExpectPd.
YearlvTMiewal tenn $16, 390,000 00 8392,109 00 $524,750 00 - 1.SS8
Five, Ten and Fifteen Year Term.. 4,930,100 00 139,187 00 156,000 00 1.208
Twenty-year Term and Term " To
AgeSeventy" 17,781,830 00 230,85100 263,804 00 1.148
Life, Continued Payments 10,873,000 00 188,62100 175,802 00 .957
Life, Limited Payments 23,834,46C00 299,560 00 820,000 00 .784
F.Hdowments and Bonds 6,104,700 00 73,046 00 60,000 00 .833
Fiveyear Combined Term 16,732,600 08 181,484 00 54,115 00 .298
Chillis Endowment 15,650 00 49 00
Joint Life 10,000 00 177 00
Paid up Terms, Life and Endow-
ment, : 598,767 00 8,843 00 6,339 00 .604
$96,251,707 00 $1,497,426 00 $1,459,310 00 .975
It is claimed that the comparatively large mortality rate of 1904
was accidfiTital.
The net profits and their sources for the last ten years are shown
by the gain and loss exhibits as follows:
Surrenders,
Surplus Lapses, Net
Tear. Interest, Mortality. Loadings. Annuities, Profit.
etc. etc.
1895 $56,73100 $73,685 00 Loss, $87,549 00 $23,150 00 $66,017 00
1896 44,457 00 33,189 00 Loss, 20,140 00 16,185 00 72,641 00
1897 84,800 00 133,793 00 Loss, 200,580 00 13^83 00 21,395 00
1898 83,533 00 399,663 00 Loss, 135,919 00 62V633 00 408,905 00
1S99 89,938 00 829,755 00 Loss, 355,863 00 32,808 00 96,638 00
IS'0 70,465 00 64,073 00 Loss, 103,209 00 100,769 00 133,098 00
1901 104,668 00 55,260 00 Lpss, 110,245 00 173,307 00 233,990 00
1903 77,725 00 173.608 00 Loss, 80.556 00 87,966 00 318,743 00
1903 101,375 00 193,939 00 Loss,- 108 593 00 85,948 00 227,670 00
1904 357,793 00 83, 131 00 Loss, 363 ,398 00 *10,068 00 116,567 00
*Loss.
The present actuary, who has be^n with the society since 1901,
srtates that he cannot reconcile the mortality gains given for the
years 1897, 1898 and 1899 with the mortality records. «f the society.
In 1898 instead of a gain of $399,663, it is said that there was a loss
and as the net profit is said to be correctly stated it must have pro-
ceeded from other sources.
The gains from advanced valuations of real estate, already .iioted,
are included under the head of " Surplus Interest, etc." Against
the gross gains of this character and gains from sales and increase
of market value of securities were charged the losses on the Hadley
Report of the Committee. 157
bans and losses on securities. The extent to wihich the net gains
from these sources entered' into the total gains on "Surplus Interest,
etc.," ioT the years 1897 to 1904, is as follows:
Total gains from Net gains . on real Eemainder of gainH
Year. " surplus inter- estate and seou- from surplus in-
est, etc." rities. terest, etc.
1897 $84,800 00 $22,161 00 $,62,639 00
1898 82,539 00 5,637 00 76,902 00
1899 89;928 00 63,176 00 26,752 00
1900 70,465 00 53,002 00 18,463 00
1901 .104,668 00 183,998 00 *79,330 00
1902 77,725 00 199,892 00 *122,167 00
1903 101,375 00 795 80 21,595 00
1904 357,792 00 229,108 00 , 128,684 00
*Loss.
Ijeaving out the years, the figures for which the Actuary dispute3,
it appears that if the net gains from sales and increased values of
real estate and securities be deducted, the Temaining gains of the
society for the past five years were as follows:
Surplus Interest,
etc.. Excluding Suiremiers,
Fronts on Sales Lapses ' Net
Year. and Increased Mortality. Loadings. Annuities, Proflta.
Values of Real etc
Estate and
Securities.
1900 818,468 00 $64,073 00 Loss, $103, 209 00
lOTi'ioss 79 330 00 55.260 00 Loss, 110,245 00
IQMloas 122,167 00 173,608 00 Loss, 20,558 00
im 21,395 00 193,939 00 Loss, 108,592 00
1904"" . 128,684 00 32,13100 Loss, 263,293 00
Total net profits .
$100,769 00
173 (307 00
87,986 00
35,948 00
*10,063 00
$80,096 00
38,992 00
118,851 00
147,890 00
*112,641 00
$273,288 00
* Loss.
Had it not been for the profits on sales and increases of values
of real estate and securities, gains of a sort which cannot be counted
upon with any reasonable certainty, the net profits of the last five
years would have amounted to $373,288 only.
The annual premium income has increased from $3,140,348 in
1894 to $3,659,398 in 1904. The assets in 1894 amounted to
$1 725 878, and at the end of 1904 were claimed -to amount to
$7 936 198. But the expenses increased from $583,351 in 1894 to
$1 684 344 in 1904, and the dividends to policy holders decreased
158 Legislative Insurance Investigation.
from $312,838 in 1894 to $173,879 in 1904. The insurance in force
at the end of 1894 was $84,035,038, and at the end'of 190.4 it
amounted to $101,189,448, although over ^300,000,000 had been
written in the meantime. In other words, we have the following
shpwing for the years 1894 to 1904^ inclusive:
Increase in premiums $1,519,050 00
Decrease in dividends to policy holders 138,959 00
, Increase in expenses 1,101,950 00
Increase in assets as reported 6,200,330 00
Increase in liabilities 6,313,500 00
Decrease in surplus as reported ^ 13.180 00
Total premiums received 33,366,331 00
Total paid policy holders 17.334,439 00
Insurance written in eleven years (including about
$35,000,000 of transfers) ., 313,493,637 00
Increase in insurance in force during same period. . . 17,164,410 00
The society states fiiat during the last five years the new business
written has amounted to $149,000,000, and that during that time
the outstanding insurance has increased about $6,000,000, mating
$155,000,000, accounted for as follows:
Policies in general j ; $38,000,000 00
Death claims 6,500,000 00
Surrendered policies 4,000,000 00
Eeduced policies 4,000,000 00
Expired and lapsed 113,500,000 00
It i& said to be difficult to separate the term insurance policies
which have expired from those which have lapsed in the ordinary
sense, but it is estimated that the expired policies amounted to about
$15,000,000 and the lapsed to $97,000,000.
Considering the volume and results of the busiiiess, the President
has been paid a large salary. For some years, since the retirement
.of the Vice-President, it has been $36,000; previously it was $35,000.
And the salaries of minor officers in recent j^ears have been increased.
The salary of the Secretary was $7,000 in 1901 and has since been
$8,500. The Comptroller's salary in 1901 was $7,500, and since
has been $10,000. The salary of tLe Superintendent was $7,200
in 1901 and since has been $8,000. The Treasurer's salary 'was
$5,000 in 1901 and was raised to $5,000 in 1902 and to $6,000 in
1904. President Scott had four sons and one nephew in the employ
Boport of the Committee. 159
of the society. One of tlie sons, E. "W. Scott, Jr., was Superintendent
of Agencies. His salary was $6,000 in 1901, $6,500 in 1903, $7,500
in 1903 and thereafter $8,500. Another son, B. A. Scott, as Medical
Director, received $3,500 in 1901, $3,000 in 1903, $4,500 in 1903,
$5,000 in 1904 ajid $5,500 in 1905. The other two sons are Metro-
politan agents, with commissions of 65 per cent., graded and renewal
commissions of 7J^ per cent, for fifteen years. The nephew has been
Cashier since 1903 at a salary of $1,500.
The campaign contributions of the society arg stated to be as fol-
lows: "Five hundred dollars to "the Eepublican National Committee
in 1900 and $50 and $100 respectively to the Eepublican State Com-
mittee in 1903 and 1904. The only payments said to have been
made in connection with legislation are a total of $3,000 paid in
1903 and 1903 for appearances before the Committee on Insurance
in the Massachusetts liCgislature. In addition, William H. Buckley,,
who in 1901 retired from the position of Third Deputy in the In-
surance Department of this State, was subsequently paid about $500
a year for general services in keeping the society advised of the legis-
lation in various states, including ISTew York.' Eeferenceiias already
been made in connection with the New York Life to the retainer
of Andrew Hamilton in connection with the_ litigation over tlje
statute providing for a tax on premiums (Laws of 1901, chapter 118).
From 1898 to 1901 Mr. Hamilton was also paid about $500 a year
for services before insurance departments of other States in connec-
tion with the valuation of preliminary term policies. The General
Counsel of the society since January, 1900. has received $10,000 a
year. According to the annual statement, the total legal expenses
have been as follows;
1900 $36,007 33
1901 :'.*.*.*.'.' 36,568 47
1903 37,844 61
1903 •■ 25,087 73
1904 .- 38,333 00
The large amount of non-persistent business written by the society
has entailed a heavy expense. The commissions paid have been 50
per cent, graded of the first year's premiums and renewal commis-
sions of 5 per cent, or 754, per cent, for fifteen. years, and there is
an additional expense allowance of 30 per cent, of the first year's pre-
miums. In addition, agents have received large advances. Oi these,
160 Legislative Insurance Investigation.
$50,000 have been secured by surety company bonds, and hence have
been allowed among the admitted assets. In order to reduce^ for the
purposes of the annual statement, the amount of the agents' balances
not admitted by the Department as assets, it has been the- practice
of the society to procure as large payments as possible from the agents
in December, the amounts being readvanced early in the following
year. Thus in 1903 the outstanding agents' balances increased from
$237,630.77 in January, to $388,468.78 in ISTovember, an* 'in De-
cember feU to $235,333.33, which was the sum included in the state-
ment for the year. But in January, 1904, the advance's amounted
to $301,158.36, and they steadily increased until I^ovember, 1904,
when they reached $466,135.27. In December. 1904, they were re-
duced to $77,005.77, the amount reported. ' At this time it is
said over $200,000 of balances were ohajged to proiit and loss. In
January, 1905, the advances were $97,924.13, and by September they
had reached $224,395.79. In October and November, 1905, they
were largely reduced. In November last the commissions o» non-
participating business were somewhat increased to make them more
nearly approach the commissions on ^participating business.
As from 35 to 40 per cent, of its business is written on the pre-
liminary term basis, a large part of the first year's premiums is re-
leased for expenses from the diminution of the legal reserve. The
Massachusetts Department, however, the case being butside of a
statute deemed to be applicable to the- Bankers' Company, refuses
to admit that the first year is term insurance, and thus the valuation
of the society's policies in Massachusetts at the end of 1904 is
$606,000 more than in New York. The total expenses of new busi-
ness in 1904 amounted to $699,624, or 116 per cent, of the total mar-
gins on the first year's premiums, including loadings, and mortality
gains. The total insurance expenses amounted to 122.47 per cent,
of the total loadings on the premiums.
The stockholders have received dividends at the rate of 7 per
cent, per annum, and no other amounts have been distributed to
them under the provisions of the charter.
Of the outstanding insurance 78.3 per cent, is on the deferred
dividend- plan, 14.6 per cent, on the annual dividend plan, and 7.2
per cent, is non-participating.
The method of computing annual dividends is too complicated
to admit of brief statement. Dividends to policy holders, as already
stated, have considerably diminished. The segr^ation of- policies
issued prior to 1889, which show a higher rate of mortality, has re-
' Report of the Committee. 161
suited in the returns upon these policies being proportionately less.
Few deferred dividend policies have yet matured. The society as-
sumes no ohligation to the holders of policies of this sort prior to
their maturity,
The great disappointment of holders of natural premium, policies
whose premiums have been raised to the full cost of insurance at their
attained ages, was brought out in the examination, as was also the
fact that the Superintendent of Insurance had not charged the com-
pany with the reserve equal to 25 per cent, of the premiums which
the company had contracted to maintain. It appeared that the com-
pany had been examined but one by the New York Department in its
entire history, to wit, in 1897.
MUTUAL EESEEVE LIFE' INSUEAFCB COMPANY.
This company was organized in 1881 under chapter 367 of the
Laws of 1875 as an assessment company, under the name of Mutual
Eeserve Fund Life Association. In April, 1902, it was reincorporated
so as to transact business as a purely mutual company, without
capital stock, under Article II of the Insurance Law, and its name
was changed to Mutual Eeserve Life Insurance Company.
' Prior to 1901 the law did not permit the reincorporation of an as-
sessment company as a level premium company unless it had a capital
stock, but this was permitted through the amendment of section 53
of the Insurance Law by chapter 733 of the Laws of 1901, which
was obtained by the Mutual Reserve. Provision was made for the
valuation of outstanding contracts as one-year term insurance at
attained ages, with certain exceptions stated. By chapter 574 of the
Laws of 1905, the statute was again amended so as to shut the door
io oiher assessBient companies seeking similar reorganization.
At the end of 1904 the company had about 60,000 policy holders,
with outstanding insurance amounting to $113,523,306. In the
election of directors each member of the company is entitled to one
vote in person or by proxy. Proxies cannot be voted on unless regis-
tered with the secretary at least ten days before the election and
must run to members of the company. From about the time of it?
organization until his death in 1895, Edward B. Harper was the
president, and, holding a large number of j)roxies, controlled the
company. In his will he designated Frederick- A. Burnham as his
successor, and attempted to bequeath his proxies to him, but of
course, this was invalid. On Mr. Harper's death Mr. Burnham was
162 Legislative Insurance Investigation.
elected president, and he has obtained proxies Covering substantially
all the votes that have been cast at the special and annual meetings
of members. Notices of elections are published in three New York
City papers and are mailed to the policy holders. At the last elec-
tion 38 ballots were cast in person, and 20,786 by Mr. ' Burnham
under his proxies. From other records it would seem that Mr. Burn-
ham has held as many as 33,000 proxies.
In its report for 1904 its admitted assets amounted to $5,759,-
917.29, and it had a surplus over liabilities of $359,311.58. As the
result of an examination in 1905 the surplus as of December 31,
1904, is stated to be $38,492.16, the assets and liabilities being as
follows :
Present value of real estate, including leasehold
premises $683,571 78
Bonds on mortgtge loans 452,750 00
Policy loans and liens, policy debits and special calls
due and unpaid 1,937,496 00
-Premium notes on policies in force 355,566 00
Marls^t value of bonds and stocks 555,173 30
Deposited in trust companies and banks 741,549 13
Cash in office ." 515 35
On deposit with collecting banks and. bonded col-
lectors 192,383 81
Interest due or accrued ; 78,790 88
Ni='l uncollected and deferred premiums after (de-
ducting net premium credits, policy loans and
liens, policy debits and special calls due and unpaid
in excess of reserve charged against respective 5
policies : 549,364 00
Total $5,447,060 15
Liabilities;
Reserve $4,371,125 00
Unpaid Claims:
Approved claims- (satisfactory proofs
in possession of the company for
ninety daj's or more) $95,832 40
Report of {he Oommittee. 163
Approved and not yet due * $105,942 41
Unadjusted (proofs filed ninety days
or more) 17,226 20
Unadjusted (proofs filed less than
ninety days) .' 368,865 64
Eeported (no proofs filed) 150,512 34
Eesisted j. . . '. . . 26,831 78
In suit 66,318 82
$831,429 59
Premiums paid in advance 758 05
Judgments against company 182,767 92
Miscellaneous liabilities 2,145 33
Dividends or other profits to policy holders 12,568 31
Dividends apportioned payable to policy holders dur-
ing 1905 \ 7,773 79
Unassigned funds (surplus) 38,492 16
Total $5,447,060 15
The company has had small dealings in securities, its investments
of this class consisting chiefly of bonds of foreign governments and
in connection with its foreign deposits.
By the examiners' report the company's valuation of the real estate
is reduced about $30,000. The largest item is the value, apparently
about $470,000, assigned to the company's leasehold interest in its
ofiBce building at Nos. 305-309 Broadway, Few York, under a long-
term lease. It seems that the company originally contributed in
1894 out of its reserve or emergency fund $408,296^60 toward the
construction and equipment of the building, $44,226.44 being 'for
furniture, shades and awnings, salaries of attendants and rent during
construction. The investment on a valuation of the leasehold was
recognized as an admitted asset by the Department. It was sug-
gested,- however, that the company should adopt a sinking fund of
$13,450 annually. For a few years this was done, but the fund
reached only $56,948.76, of which $42,000 has been withdrawn and
charged to. the mortuary account. At the end of 1904 the property
stood charged with a cost of $483,660.50. It appears that the lease-
hold interest has been allowed by the Superintendent of Insurance
as an investment in real estate.
The company originally began business on the ostensible theory
ihiit it would collect 25 per cent, more than the amount necessary to
164 Legislative Insurance Investigation.
pay the death looses and place the excess in a reserve fund. The
moneys constituting this fund were originally deposited in a trust
company and subsequently portions were used for making deposits
with insurance departments. A deposit of $200,000 was made at
Albany apparently for advertising purposes, as none was required
imder the law. Under the earlier policies a bond was issued to the
policy holder at the end of five years for his proportionate share of
the reserve accumulations. These bonds were in the nature of an
endowment payable ten years from the date of issue, with interest
at the rate of 4 per cent. In 1883 provision was made for the issue
of so-called " bond statements," setting forth the interest of the
policy holder in the reserve fund as it existed at the end of five years,
with the provision that it should be available for dues and assess-
ments after the expiration of fifteen years, provided it had not been
required for the payment of death claims in the interval. This con-
tinued until about 1887, and thereafter the provision was simply
that at the expiration of fifteen years any remainder of the resei^e
^ fund would be applied toward thfe payment of dues and assessments.
The bonds issued under the policies of 1881 have been redeemed in
cash as they fell due. Bond statements issued after 1883 have been
redeemed by the application of a certain amount to the payment of
assessments, but the company has ceased to issue such statements, as
the contribution to the reserve fund under this class of policies has
been consumed. In 1898 it appeared that, separately considered, the
policies of the fifteen-year class showed a deficit .of $800,000, and it
was claimed that the policy holders of that class had no" equity in the
. existing surplus funds of the company. This deficiency has increased
so that at the end of 1904 the deficit on the fifteen-year class of
policies, separately considered, amounted to upwards of $3,000,000.
In practice the death losses have not been segregated, but have been
paid out of the general funds.
In 1890 the company began to issue a new form of policy known
as the ten-year distribution deposit' form, providing for a specified
deposit on account of future dues and assessments. The ten-year
class, separately considered, shows a surplus as of December 31, 1904,
of about $1,000,000.
In 1896 a new class of policies was adopted known as the five-year
class, the policies being called " five-year combination option policies."
They contained the provision that at the end of five years, if there
had been any direct contribution to the aeeumwlatibns of the com-
pany, the policy holder upon surrender coifld receive a portion. This
class, if separately considered, would show a deficit of about $100,000,
Report of ihe Committee. 165
The company has been involved in many difficulties by reason of
the fact that it started with unscientific and insufficient rates. Its
policies were ambiguous and misleading,- and its right to increase as^
sessments was hidden in obscure phrases. The increasing cost of
insurance as age advanced and the absolute necessity of providing
funds adequate to the risks was ignored, either through design or lack
of information. The subsequent efforts of the company to readjust
its rates have embodied it in- controversies with disappointed policy
holders, who had been led to believe not only that their rates would
remain constant but that they would have the advantage of large
accumulations.
A form of policy issued earlier in»the history of the association
prominently stated the age «f the insured in the caption and provided
as, follows:
"And the said association do hereby promise and agree, in
event of decease of said member, to make an assessment upon
the entire membership at date of death for such a sum as has
been established by the trustees, according to the age of each
member as per table endorsed hereon." (Italics ours.)
Then followed the provision for a reserve fund. Endorsed on the
policy was a table of rates, giviijg the admission fees, the dues ana
an assessment rate table, as follows:
"Assessment Bate Table
Upon the death of a member each survivor shall pay for each
$1,000 benefit, provided an assessment is required.
. Those entering at -the
Age of Hate.
15 to 25 $1 00
26 1 03
27 1 04
28 1 06
29 1 08
30 1 10 "
and so on to age 65. In the earlier years the assessments were ir-
regularly made. In 1881 there was one assessment at one rate; in
1882 there four assessments covering four rates, that is four times
166 Legislative Insurance Investigation.
one rate; in 1883 and 1884 there were six assessments covering
six rates; in 1885 there were sis assessments covering seven and
one-half rates; in 1886 there were si^ assessments covering eight
rates; in 1887 there were six assessments covering eight and three
quarters rates ; in 1888 there were six assessments covering nine rates
In 1889 there was a commutation or adjustment of all the tables that
had formerly existed to a bi-monthly rate, which followed the general
ratios of the tables, but substituted amounts to be levied each sixty
days for a rate to be levied on each death, or at irregular intervals.
But in aU cases the levies were made at the specified rates, " accord-
ing to the age of each member," as the age stood at date of entry.
This was undoubtedly the understanding of the policy holders when
they took their policies, and this practice continued until 1895. The
rates at age of entry, however, despite the loading to provide the
" reserve fund," were insufficient to carry the insurance. The associa-
tion did not dare to take the drastic course of increasing the rates to
those at attained age, but in 1894 compromised by adding to the age
at entry one-half of the number of years that the insured had been
in the company. This proved inadequate, and in 1«898 the rates were
raised to those at attained age. The result was that one insured in
1882 at age 25, supposing that his assessments were to be at the rate
of $1 a thousand, paid that rate until .1895, when he was assessed
at the rate of age 31, or about $1.12 a thousand, and this was con-
tinued until 1898, when he was assessed at the rate of age 41, or
about $1.48 a thousand.
Another form of policy, adopted about 1886^ stated the age of entry
in the heading and recited in the consideration clause "the further
payment of all mortuary assessments." One of the conditions was
as follows:
" If at such date as the Board of Directors of the association
may from time to time fix or determine for. making an assess-
ment the death fund is insufficient to meet, existing claims by
death, an assessment shall then be made upon every member
whose certificate is in force at the date of the last death assessed
for and said assessment shall be made at such rates, according
to the age of each member as may be established by the said
Board of Directors, and the net amount received from such as-
sessment (less 25 per cent, to be set apart for the reserve fund)
as provided in the Constitution and By-laws of said association
shall go into the death fund."
Report of the Committee. 167
Another condition in fine print was:
"After the expiration of each -period of five years, during the
continuance of this certificate of membership, a bond shall be
issued for an equitable proportion of the reserve fund, and the
principal of such bond shall be available ten years from this
date towards paying future dues and assessments under this cer-
tificate, and should membership hereunder cease from any
cause said bond shall at once become null and void and any por-
tion of such principal not thus used shall' be applied to increase
the bonds issued at the pext quinquennial apportionment to other
members of the association holding certificates issued during
the same year as this certificate, and at each apportionment the
rate of assessments may be changed to correspond with the ac-
tual mortality experience of the association."
An "Assessment Kate Table" was endorsed on the policy, stating
"The basis of the assessment rate for each member, according to
the age taken at the nearest birthday, on each thousand dollars is
as follows : " with a schedule. The rates levied were those as of the
age of entry until 1895 and at that time and in 1898 similar increases
were made as in the case above mentioned.
A policy issued in England about 1890 contained the following
endorsement:
"Rates of Mortuary Calls.
"At the times within provided, to wit : On the first week day
of the months February, April. June, August, October and De-
cember of each year, or within thirty days thereafter respec-
tively, the member shall pay his proportion of the maximum
rates stated below, according to age and amount of insurance
and as may be requisite as within provided to pay death claims
and to provide for the reserve or emergency fund. Should the
mortality of the association in any year require an amount in
excess of said maximum rates applicable to the death fund, such
excess shall be paid from the reserve or emergency fund as
within provided."
(Table follows.)
" The maximum rate above stated is based upon the mor-
tality tables and is for current ages. , Members degirirg to make
168- Legislative Insurance Investigation.
payments annually in advance can do so at aitove rates and the
amount not required during. the year will he applied to reduce
the next annual payment."
When the rates were increased a policy holder brought ^uit to
rescind the contract on the ground of misrepresentation, and in 1904
decision was handed down by the House of Lords sustaining his con-
tention. The report of the opinion of the Lord Chancellor in the
Times Law Eeports of July 29, 1904, states:
" The first was the nature of the document tendered to Mr.
Poster which the Court of Appeals had deserihed as 'tricky.'
His Lordship"" concurred in that description. After three days'
elaborate exposition their Lordships had at last arrived at what
the real meaning was. There had been great ingenuity in con-
cealing the real effect of the contract. It was not necessary to
go through the whole of the evidence; But when one observed
the mode in which at one particular period of life the list of ages
stopped, and when one notices that the language which was used
was undoubtedly of an ambiguous character — he doubted very
much if that ambiguity was not intentional — the result of his
Lordship's mind was -that beyond all doubt this was a document
which anyone, even a skilled person, would be unable to under-
stand without very grave and elaborate explanation. It was cleai"
to "his mind that Mr. Foster did not" understand it and that he
thought upon'the true construction of the policy, such as it was.
he was entitled to keep up his policy on the original rates without
subsequent increase."
The English form of policy was discontinued about 1893, but the
rates were increased in the above manner upon those which haid been-
issued. It seems that there has been considerable litigation in this
country in which the right of the company to increase assessments on
these policies has been sustained. '
In the policies known as the ten-year class, the form was changed
by the insertion of the word "then " before " age " so that the clause
as to rates provided that they should not " exceed the maximum rate
as per table endorsed hereon according to the then age of each
member." And the sentence was added " rates for ages not included
in said table shall be based upon the American experience table of
mortality." This class of policies paid its own death losses and pro-
vided a reserve ftmd, which, however,' was being depleted, to make
Report of the Committee. ■ :L69
good- the deficiency in the earlier policies. In recognition of the
-equities of these policy holders their rates have not been increased
until the expiration of the ten years from date of issue, when they
hecome entitled to share in the accumulations. Then the assessments
have^een increased to rates at attained age, their shares heing allowed
as credits.
These increased rates were only palliative, for there had been a long
period during which, it is said, the rates were below the cost of the
insurance. So that in addition to the increased rates, the company, in
1901, reduced the amount of insurance by placing liens i/poj^ policies
of the fifteen-year and ten-year classes issued prior to October, 1893
The line was drawn at this date because the statute was then enacted
that the amount uf benefits to be paid under policies should be an
absolute sum for whifh the company and its assets should be bound
in the event of loss. This was done in an effort to adjust the amounts
paid on these policies to ordinary life rates, so that the policy holders,
ih rough these liens and their increasing assessments, should pay in
(he end, with interes,!;, the same amount for the insurance as though
tlipy had been insured originally on an ordinary life level premium
basis. It v/as accomplished by the insertion in the by-laws of ex-
traordinarily involved and obscurely worded provisions as follows:
" Sec. 2. If the net value of the funds of the association, after
providing for outstanding claims and other accrued liabilities,
or of the accumulated funds of any class hereunder, is at any time
less than the reserve required by this Constitution or By-Ijaws
and its policy contracts of which the same form part, or by law,
each certificate or policy (or each certificate or policy of said class,
as the case may be) shall be chargeable with an amount limited to
its equitable share of such deficiency in the general funds of the
association, or in any class wherein such deficiency may arise, as
determined by the actuary of the association, as an interest bear-
ing loan upon such reserve, as provided in section 5 of this
Article, constituting a lien against the insurance- under each such
certificate or policy, and-any dividends or surplus accruing there-
on, which lien may, at the election of th& member or policy
holder, be paid, in cash and canceled."
" Sec. 3. In order that all policy or certificate holders, or
classes of policy or certificate holders, may share, equitably and in
accordance with mutual principles in the distribution and pay-
ment of the cost of the insurance granted them, and in the
170 Legislative Insurance Investigation.
establishment and maintenance of the reservejiov or hereafter to
he provided for the protection of their insurance, any and all
classes of policy or certificate holders (insured uaider plans upon
which a reserve equal to or exceeding a whole life reserve is not
now maintained), whose net contributions to the Death Fund of
the association for the purpose of paying death claims (being the
payment made, less that portion thereof provided or used for ex-:
penses) the actuary of the association shall determine to have been
less than the tabular mortality by the actuaries' tablfi of mortality,
or any greater rate of mortality actually experienced by the
association in said class or classes, shall be, and from the adoption
liereof become, and be treated as, whole life continuous premium
policies as of age and rate for the date of original entry; and each
and eVery policy, matured or unmatured, belonging to any class
as above described, is hereby charged with a lien against the
insurance thereunder, or any dividends or values arising there-
from, equal to the full' standard reserve to date under such an
above described whole life contract, determined by said actuaries'
table with interest at 4 per cent, per annum, the same to bear
interest at the annual rate currently charged upon loans to policy
holders upon the security of their insurance; and there shall "be
added to the said lien charge annually the sum by which the
annual cash payments of the policy or certificate holder, called
in accordance with the method heretofore governing said policies
or as may hereafter be determined by the Board of Directors, may
be less than the amount of the regular premium for the entry
age by the association's table of rates for whole life continuous
premium policies based on said reserve standard, plus said in-
terest; or deducted from said lien charge annually the sum by
which the payments made by said policy holder as above pro-
vided may exceed said whole life rate for entry age, plus said
interest. Any and all policies affected hereby shall henceforth
be regarded as contracts of whole life iasurance, and the insured
thereunder shall, subject to the deduction of any lien or charge
gaainst the same, and only in the event of written demand prior
to lapse, be entitled to the regular surrender values as computed
by said association for said policies upon the reserve standard
above named, and said policies shall, in lieu of any or every
method of participation in surplus now therein provided, be
credited with their equitable proportion of the surplus of the
association (in excess of the reserve required by law or by- con-
Report of the Committee. 171
tract) as hereafter determined by the actuary of the association
annually, the same to he applied to the reduction of any lien
charge against the policy, or otherwise as the Board of Directors
may determine. And the Board of Directors is authorized and
empowered to hereafter similarly treat, in the manner and
, subject to the requirements and limitations above, or otherwise
in its discretion, any class or classes of policy or certificate holders,
or any part or portion of such class or classes (insured under
plans upon which a reserve equal to or exceeding a whole life
reserve is not maintained) whose payments to said association,
other than that portion thereof provided for or used for expenses,
shall fall below either the tabnilar mortality by said actuaries'
table, or gjiy greater rate of mortality actually experienced by
said association in said class or classes, or portion thereof."
The amendment was approved at a meeting at which Mr. Burnham,
through his proxy, cast the votes of the policy holders, and it is also
claimed that the policies had been issued subject to the by-laws and
to such changes as might be made in them from time to time, which
it is said become part of the contract. The method adopted was to
levy a special assessment, and this not being paid the policy was
charged with the amount, which would bear interest at 5 per cent.,
and in addition the insured was obliged to pay his assessments on the
full amount of the policy at the increasing rates corresponding to his
attained age. The continuance of the payment of the regular assess-
ments was assumed to be a consent to the charge against the policy
of the special assessment. An account was kept as follows : On the one
side was placed the charge, with interest, and the premium at ordinary
life level premium rates at age of entry. On the other side was set
the actual payments made and the balance at the end of each year was
the then lien upon Ihe policy. ^
The following is a typical case: '
Under a policy for $5,000, issued in 1886, at age 40, in addition to
the increase of the rates of assessment, a lien was placed upon the
policy in 1901 of $1,378.50. The account made up in the manner
above stated shows a net charge at the end of 1901 of $1,336.73; at the
end of 1904 it was $1,417!,71, and it was calculated that at the end of
1905 it would be $1,615.99. It continues to increase until at the end
of 1910 it will amount to $1,679.84, from which time it is reduced.
' The reduction is effected through the largely increased assessments
paid at the latter ages. Thus in 1915, when the insured will be 69
50
172 Legislative Insiirance Investigaiion.
years old, the net charge will be $1,130.13. He would then be paying
a^ssessments amounting to $83.45 a thousand as against $13.20 a thou-
sand when he originally entered, and the lien would be discharged. He
would then have a policy for the full $5,000, and he would have paid
the company about $7,000. He would not receive anything additional
because the calls would only represent the cost of the insurance. If
he lived longer his premium rates after the discharge of the lien would
be fixed at the ordinary life level premium rate at age of entry, that
is to say, at an annual premium of $177. There are about 3,000
policies subject to these liens.
The "five year combination option policy," which the association
began to issue in 1896, on its face or first page recited as follows:
" In consideration of the application for this policy, which is
hereby made a part of this contract, and of a first payment of
...._. dollars to be actually made in cash ajid on or
before the delivery hereof, hereby receives of
County of , State of
as a member of said association; and upon the condition of the
payment in advance of dollars and .cents
for premiums on the day of the months of April,
June, August, Octobe:^ December and February, in every year
during the continuance of this policy, there shall be
payable to of , County of ,
Sta;te of , if living at the time of the death of
, I said members, otherwise to the executors or administrators of said
member, the sum of. .... , dollars at the home ofiice
of the association in the City of 'New York within ninety days
after the acceptance of evidence satisfactory to the association
of the death of said member, subject to 'ihe benefits and provi-
sions stated on the second page of this policy wluch are hereby
made" a part hereof." '
Despite the inference from this, the more prominent part of the
policy, that the premium was to remain level, there is found among
the numerous " benefits and provisions " on the second page the
following:
" On the dates named on the first page hereof in each year dur-
ing the continuance of this policy there shall be due to the
asco elation for premiums the amount mentioned on said first page,
or such multiple or ratio thereof as its executive committee may
determine." (Italics ours.)
Report of the Committee. 173
Another form of policy, issued in 1897, recites the payment of a
specified sum annually as the consideration, hut among the conditions
on the second page it is provided as follows:
" The amount mentioned on page one hereof shall upon the
date^ there stated he due the association for premiums in each
year during the continuance of this policy (save as the same shall
be modified by the application, of surplus), together iriih any
further amounts determined by the executive committee as neces-
sary to the payment of all policies at their maximum face value
apportioned at a rate not exceeding that for attained age as fixed
by the American experience table of mortality."
It may be said that the company imder the assessment law was not
entitled to issue level premium policies and was bound to insert a
clause providing for additional assessments. But it is apparent that
the association endeavored to approximate the level premium basis
and that its forms of policies conveyed the impression that the
premiums were constant. To secure business the company in 1897
placed in the hands of its agents " demonstrations " with imposing
calculations to support strongly v/orded estimates that the new rates
would .prove suflBcient without extra assessments. There -were also
policies issued from 1897 or 1898 providing for full level premium
rates, with a contract for reserve measured as a level premium reserve
would have been measured, but containing clauses authorizing addi-
tional assessments. This practice continued until the reii^corpora-
tion in' 1903. But neither in the case of these policies nor in those of
the earlier forms -was the company compelled to treat its contract
reserves as liabilities. In N'ovember, 1905, the company levied a
special assessment upon the policies issued from January 1, 1896, to
the date of the reincorporation upon the ground that the death losses
properly chargeable to those policies had exceeded the amounts con-
tributed for that purpose in their stated premiums.
In 1896 the company took over the business of a Canadian com-
pany, the Provincial Provident, of St. Thomas, and in 1900 that of the
Northwestern Life Insurance Society of Chicago, both assessment
companies. In the former case the company received assets upon
which it realized about $75,000 and paid a commission of about $15,-
000. One of the motives of the transfer was to give to the e'ompany
whattever advantage might accrue from the swelling of the volume of
its business, and another was to prevent injurious conseruances,which
might result from the continuance of the Provincial Provident. Upon
174 Legislaifive Insurance jnvesiigahon.
the policies so acquired there were acctmmlations slightly in excess
of the reserve imder their valuation as one-yeai term insurance. It
would seem that under a law passed last year in Canada they were
reduced to the amount their premiums would purchase on the basis of
level premium insurance.
The business of the Korthwestem Society was. obtained under a
contract for commissions made in May, 1900, with one Merriam, upon
which $65,000 was paid in the course of the next year. It seems that
the validity of the transfer was- attacked by the receiver of the North-
western Society and a compromise was effected in July, 1901, by
which the balance of the commissions were computed and paid to an
assignee of Merriam in order to arrange for a purchase of the remaining
assets in the hands of the receiver upon an agreed basis. By virtue of
this arangement an additional amount of about $211,000 was paid,
making the entire commissions paid under the contract about $376,-
000. The company received upon the transfer assets amounting to
about $290,000. _There was, however, a supplemental contract with
Merriam, made shortly before the Northwestern business was acquired,
for the payment of additional commissions. This contract was soOn
assigned to George Storm, of New York City, apparently a friend of
President Burnham's, and between April, 1893, and Mr. Storm's
death in January, 1904, there was paid to Mr. Storm the total sum of
$109,000. The final payment of $15,000, which appears in the state-
ment of the company for 1904, as " commuting renewal commissions,"
is said to have been made in consideration of the cancellation of the
contract. The contract was assigned to William Porter, the comp-
troller of the company, who shortly after executed a release. . Al-
though the transfer of the Northwestern business and the commis-
sions paid thereafter were the subject of special comment in the re-
' port of the departmental examination in 1905, the commissions are
there said to amount to $277,666.67, and no mention is made of the
additional $109,000. It is said that these were not discovered, as they
were not set forth in the account pertaining to the Northwestern
transaction. The Vice-President, however, testifies that both con-
tracts were spread in full upon the minutes, and is positive that they
were gone over by the examiner of the Department at the time of the
reincorporation. The chief advantage obtained by the company in
return for this large outlay, was the securing of an additional expense
ftmd, for while for the purpose of meeting mortuary claims the trans-
ferred business was treated separately, in accordance with its neces-
sities, the expense loading included in the assessments was available
Report of the Committee. 175
for_the general expenses of the company. Probably i* this way at
least $10'OyOOO was obtained the first year in excess of the proper
share O'f these policies in the general expenses of the epmpany.
Treating the Northwestern policies separatelyj as virtnally in liqui-
dation, assessments have been levied to meet the death losses arising
in that class, involving an increasing burden upon the policy holders
as the mortality rate increases. Eesults have been adjusted to the
actual mortality rate, and this has operated as a reduction of the face
of the policies.
Since the reincorporation the new business of the company has been
written on a level premium legal reserve basis.
In the report of the departmental examination of 1905 considerable
attention was given to the treatment of death claims by the company.
It was found that death claims incurred between January 1, 1903, and
December^ 31, 1904, on policies amounting to $1,9'23,000', or $1,639,-
345, after' deducting all indebtedness of the assured to the company
at date of death, had been compromised for $906,656.74; that is to
say -the company had paid $723,688.69 less on these claims than the
apparent net liability. The report states the nature of the deductions
as follows.
" Upon the ground of alleged misstatement in applicatioBS for
reinstatement, 244 claims, reduced to a net liability of $538,-
934.81, were compromised for $300,728.86. On account of
alleged misstatement in 'applications for insurance 182 claims, re-
duced to a net liability of $313,973.58, were comprcmised for
$177,078.67. For alleged intemperance of insured, 98 claims,
representing a net liability of $357,334.16, were disposed of for
$170,286.84. Through alleged misrepresentation in age of in^-
sured, a net liability of $106,500.33 was compromised at $#4,-
198.89 in the case of 91 claims. Lapsed policies to the number
of 43, which, if in force would have amounted to a net liability of
$161,675.96, were settled for $53,090. Through misstatement in
application an'S in reinstatement application, -36 claims, reduced
to a net liability of $99,015.67, T^ere compromised for $59,4(!).6.61.
' Fox alleged intemperance and misstatement in application ox re-
instatement applicaticn, 30 claims on which the net liaibility was
$67,014.44, were settled for $34,916.79. The eases of alleged
suicide were 17, with net insurance of $30,546.31. They were
settled for $17,406.08. The balance of 35 claims going to make
up the total of 7'^6 eomproHjised claims repTeseated by the ex-
176 ' Legislallve Insurance Investigation.
hibit, were compromised upon the strength of the various other
allegations recited in detail in the exhibit, which shows that these
35 claims, representing net insurance to the_ amdunt of $55,-
360.57, were disposed of for $29,544."
The examiner also sharply criticised the delay of the company in
paying claims arising on assessment policies issued prior to its rein-
corporation, stating that it had " adopted a settled policy of delay ^'
in withholding the necessary approval. ~ The company claims that the
criticism was unjust, and that the average time taken for approval for
the twelve months preceding the last examination by the Depart-
ment was substantially the same as that taken during a similar period
preceding earlier examinations, as a result of which no fault was
found with the practice of the company in this matter. The fact
appears that claims of this sort which have been paid, have usually
not been approved until 63 or 63 days, on the average,; have elapsed
after proofs have been submitted. It is sufficiently, clear that the
company subjects these claims to close scrutiny, making a careful ex-
amination in order to develop any facts available as a defense which,
in its Judgment, relate to the actual condition of the risk. This it
claims it is its duty to do in view of the situation of the company with
respect to these policies. It. also appears that approvals are sometimes
delayed in order to facilitate the arrangements of the company with
reference to the time of its assessments. The company has 90 days
" after receipt of satisfactory evidence " within which to pay such
claims, and the time intervening between the submission of proofs and
payment of uncontested claims is usually from four to five months.
Despite its difficulties and the urgent 'necessity for the closest
economy in administration, the management of the company has been
characterized by, irregularities and extravagance.
At the outset, in September, 1881, a contract was made with Presi-
dent Harper giving him as compensation for his services " the sum of
twenty cents each year of the annual dues received by the association
on each one thousand dollars of risk for which a certificate shall be
issued " after the date of the contract. This was to continue so long
as the dues should be paid to the association, and provision was made
for ah additional compensation of $200 a month to be paid while he
was in active service and after the obligations of the soc"iety had been
met. The annual payments to Mr. Harper; be^nning with $1,150 in
1881, gradually increased, amounting to $10,450 in 1884, $13,000 in
1885, _$22,000.iii 1887, $25,200 in 1889, $30,800 in 1892, $48,100
Report of the Committee. 177
in 1893 and $33,500 in 1894. By his -will he bequeathed the moneys
which might come due under his agreement, one-third to the associa-
tion (subject to the condition that Mr. Burnham should be elected
President), one-third to his widow and one-third to his brothers and
sister. It seems that the interests of Mr. Harper's brothers and sister
were purchased by the society in 1898, and that the total ambunt
paid to them under the bequest between 1895 and 1898 amounted' to
about $35,000. The payments to Mr. Harper's widow have con-
tinued, the total amoimt paid to her to date being about $134,000.
, In February, 1896, the Directors resolved that the one-third be-
queathed to the association should constitute a " contingent fund,"
to be placed under the control of the • President for the purpose of
meeting such expenses as the President should deem it proper fo incur
in the advancement of the interests of the company and outside of its
ordinary routine. In August, 1898, the expenditures under that
resolution were passed upon by the Directbrs, and thereupon the reso-
lution was rescinded and $200 a week was given to the President as a
contingent fund, and this was continued until 1899. His total re-
ceipts on account of the contingent fund amounted to $34,700, while
one-third of the commissions amounted to $52,053. From October,
1899, $200 a week was added to his salary.
Frederick A. Burnham was originally employed by the ooinpany
in 1891 as counsel. In 1892 and 1893 he received a salary in that
capacity of $12,000, which was raised in 1894 to $13,900. In 1895
he received as counsel to, July 2 and President thereafter a total of
$20,438. His salary as President in subsequent years, including
allowances from the contingent fund until 1899, has been as follows:
1896 - $38,000 00
1897 39,000 00
1898 33,900 00
1899 35,500 00
1900 37,700 00
1901 to date, annually. . . .^ ,' 39,000 00
I
^ George D. Eldridge, now Vice-President, became General Auditor
of the company in 1894. As Third Vice-President he received in
1895 a salary of $9,400. As Third Vice-President and Actuary he
was paid in 1896 $13,850, in 1897 $17,340 and in 1898 (being Vice-
President and Actuary the last four months oi the year) be received
178 Legislative Insurance Investigation.
$16,49(3. Since 1899 he has been Vice-President and Actuary, with
compensation as follows: I
1899 $17,900 00
1900 33,100 00
1901 to 1903, annually 36,000 00
1904 '. 31,000 00
George Burnham, Jr., the brother of the President, became counsel
in 1895. His annual salary from 1896 to 1898 was $97000. In 1899
he became counsel and Second- Vice-President with a salary of $14,400
in 1899 and $14,700 in 1900 and as counsel received $11,400 in 1901.
In 1903, while Mr. Mabie, formerly President of the Northwestern^
served as Second Vice-President of the Mutual Reserve at a salary of
$15,000, Mr. Burnham as counsel and Third Vice-President received
$14,850. Since 1903, as counsel and Second Vice-President, he has
had an annual salary of $17,000.
George W. Harper, treasurer, was employed in the Claims Depart-
ment from 1894 to 1898, at varying salaries, and since 1899, has been
treasurer, receiving annually $6,500. The salaries to the principal'
ofBcers are sought to be justified by reference to the increased work
required on accoimt of the company's diiBeulties.
Directors' meetings are held weekly and for many yeass those who
are not salaried officers of the com'pany have received a fee of $30' for
each meeting, which has also been paid in case of absence on reason-
able excuse. In March, 1898, one of the directors, Horace H. Brock-
way, a hotel proprietor, was given a salary of $300 a week, which, in
the next June, was reduced to $200 a week, on the pretext that he
was to attend to such matters as might be assigned to him.. In fact,
he had little to do beyond what would have been required of him as
a director, and his employment was obviously for another reason,
which soon appeared. Saying that Brockway had "a good. salary"
and that he wanted' " to use some money," President Burnham got
from Brockway, who owed him nothing, $6,000. He gave no note
or other obligation for it and did not himself repay it. It was treated
as a gift and not a debt. Brockway was continued- on the pay-roll
until he had received in all $6,500. There can be no doubt that this
" salary " was intended to repay Brockway, together with interest or
boDxis, out of the funds of the association the moneys given Burnham.
It does not appear that any of the other officers knew th^t Mr. Buro-
Report of the Committee. 170
c — — — — —
ham had received the $6,000. Mr. Eldridge, who Vas on the Execu-
tive Committee, testifies that he did not ,know it until the summer of
1904, and that when the" matter came up in 1899 in the form of a
charge that Burnham had borrowed from Brockway, the former denied
it. Mr. Eldridge states that in 1904 Mr. Burnham explained to liim
in conversation that the money had been used through Hilary Bell,
then connected with the " Advertising and Publicity " Department of
the jcompany, in order " to obtain articles and writers to help shape
public opinion " in connection with the matter of " reapportionment,"
about the time of the increase iji the rates .of assessment. Mr. Eld-
ridge recalls that Mr. Bell desired $5,000 or $6,00 to be placed at his
disposal for publicity purposes, not through bills rendered to the
association, but in a personal way upon the ground that better service
could be obtained. Accordingly Mr. Eldridge gave his assent to Mr.
Burnham to the use of that amount "fcom the .dues or. expenses."
He subsequently learned that Mr. BfeU had received the moneys, but
did not know how they had been received and "supposed, of course,
that they were charged to the advertising account." They appear not
to have been so charged. But there is no sufficient reason why moneys
used for such a purpose should have been obtained in this devious
manner and the explanation does not relieve the transaction of its
grossly improper character. Mr. Bell is dead, and on aecount of Mr.
Burnham's illness, it was impossible for the committee to obtain his
testimony.
J. Thomson Paterson had been connected with the company until
about 1897. - After he left its employ he made charges against the
management which led to proceedings for criminal libel. Mr. Pater-
son brought suit for false arrest. As one of the cases was approach-
ing trial a general settlement was had, as a result of which Mr.
Paterson was paid $5,000. In 1898 J. S. Hoffeelcer, who has been
auditor, left the company, and spon after a movement of policy holders,
apparently stimulated by his associates, was directed against the man-
agement. Legal proceedings were threatened for the purpose of re-
moving the officers on the ground of mal-administration, and also of
placing the company in the hands of a receiver. The matter was
settled and the threatened attack was disposed of by the payment on
the part of the company of $15,00i0. The company's reason for the
ettlement is that the litigation would be expensive and protracted,
and however it might result would be detrimental to the interests of
the policy holders.
' In 1S99 J. D. Wells, formerly vice-president of the cpmpany, filed
180 Legislative Insurance Investigation.
with the Insurance Department serious charges against the manage-
ment. The "charges were largely directed against President Burnham
and involved allegations of extravagance, irregular accounts and mis-
application of funds. Among others things it was distinctly charged
that Director Brockway had been paid $300 per week in order to repay
moneys which it was alleged had been borrowed by Burnham for his
personal use. Many of the alleged improprieties had relation to the
transactions with one Moton D. Moss, who, in 1896, was manager of
the Metropolitan District, and for some time subsequently in general
charge of agencies in the United States. The liberality of his con-
tracts for new business furnishes a strildng contrast to the poverty of
the mortuary resources of the company, which compelled an increase
in the rates of assessment. Under his contract in 1897 Moss received
a commission on the "five-year combination option" policies then
pushed by the company of 85 per cent, of the first yeat's premiums
and renewal commissions of $1.50 a thousand. The commission on
the first year's premiums was 20 per cent, in excess of that paid his
sub-agents. In addition he had a salary of $300 a week, he was pro-
vided with office accommodations and clerical assistance at an expense
not to exceed $200 a week, and allowed rent for branch offices not to
exceed $20,000 a year. He was further allowed for advances to agents
an advance of $3,500 a week. This advance, together with special ad-
vances, made the total amount advanced to him in 1897 $236,500, in
addition to which his commissions for the year were $450,000, or a
total of $686,500. Of this, his own over-riding commission of 20
per cent., amounted to upwards of $93,000, and in 'addition he had
about $4,000 for commissions on personal business. These commis-
sions were allowed to him despite the fact 'that he was indebted to the
association for a debit balance of $150,000, on account of advances to
sub-agents. It has been stated that the disappointment in the ex-
pected results under the " five-year combination option " policies was
due largely to the increased rate of mortality, resulting from the
transfers to this class of old risks, but by a special order of April, 1897,
Moss was allowed full commissions upon all 'such transfers where the '
policies had been five years in force and a reduced amount in other
cases. In January, 1898, Moss was released from his indebtedness
and his contract was modified. His over-riding commission was re-
duced to 10 per cent., half of which was to be retained as security for
future advances. The commissions to be paid to agents were also
reduced, but, they were still left at a rate of 65 per ceht. on first
year's premiums on the prevailing "five-year combination option"
policies.
Riport of the Committee. 181
The charges filed with the department invited an examination of
these and other matters. The company had been examined by the
department in 1895 and in 1898 and after these charges another
examination was made in 1899. The report of the examiner called
attention to the special efforts made to increase the business of the
company and dealt with the large advances made to agents and the
liberal commissions paid. It was shown that from the commencement
of business in 1881 to January, 1897, the total agents' balanci^s
amounted to $529,459.93. For the eighteen months from January,
1897, to July, 1898, they amounted to $344,954.07. Of a total of
these items there had been marked off to the end of 1897 $419,335.24
or over 50 per cent. It was further stated that the commission cost
of the business written on the " five-year combination option plan "
from its institution in 1896, to May 16, 1899J showed first year net
receipts, after deducting commissions and advances, of only $338,-
036.01 out of total first year receipts of $1,715,870.19. The report
also referied to -the falling off in business and criticised the action of
the company in receiving since the last examination in 1898 its " bond
statements" to the extent of about $100,000 in payment of assess-
ments. The examiner concluded with a statement showing that the
company had a balance of funds of $975,507.32 as against $1,531,-
981.34 on December 31, 1897, or a decrease since that time of
$556,474.12.
The superintendent in his subsequent report after a hearing upon
the results of the examination, speaking with reference to the use of
"bond statemnets," thus summarized his opinion as to the policy of
the company:
" The persistent members holding these statements had just
had their premium or assessment rates raised to attained age.
To placate them and appease their dissatisfaction incident to
this increase in rates the association abandoned the ground it had
previously maintained so strongly in protesting that these bond
statements were not a liability, thus evidencing on the part of the
management an intention to deceive the policy holders as to itis
true financial condition, continuing the deception which has ex-
isted ever since the first bond statement was issued by the asso-
ciation and disregarding criticisms heretofore made by this de-
partment as to their issue. That dissatisfaction among its
members exists is manifest from the increased litigation occur-
ring contemporaneously with the increase of rates. I niake
182 Legislative Insurance Investigation.
mention of this as it seems to establish tiie fact that a wifle-spread,
impression obtained among the members of the association that
their rates would not be raised. The causes responsible for tJiis
impression were numerous. One contributing cause has been a
failure on the part of the association to state conspicuously in
its policies that the right was reserved to increase rates at any
time when necessary. The policies more recently issued by the
association and described as ' iive-year combination option policy,'
'ten-payment option policy/ etc., etc., are I believe calculated to
bring about further misunderstanding in the future between the
association and the assured."
In -relation to matters of management the superintendent alluded
to "the lack of proper business methods shown in the making of
agents' commission contracts and the handling of matters under these
contracts in such a way that they finally resulted in the loss sustained
by the agents' balances of 1897 and 1898," which he believed were
" subjects for adverse criticism by this department." He also ques-
tioned the propriety of the placing of a "contingent fund" at the
disposal of the president without accounting, stating that if these
funds were disbursed there should be receipts with appropriate
vouchers and that such were not found among the association's records.
Allusion was then made to the attempted rectification by the directors^
in August; 1898, in -discontinuing the contingent fund and increasing
the president's salary. The examination of the policy registers was
said to disclose the fact that the sworn schedules of December 31,
1898, were incorrect in not showing " the correct ages of the insured,
nor the correct dates at which the insurer's liability would cease and
did show $173,000 of insurance in force for which policies were never
signed."
Neither the report of the examiner nor that of the superintendent
made any specific findings with reference to the charges affecting the
integrity of the management. It neither sustained nor disallowed the
allegations of malversation. It contained no allusion, for example,
to the Brockway matter. On the general subject the superintendent
said;
" It was claimed that reference should have been made by the
examiner to the fact that this examination was primarily at the
request of the oiBcers of the association, and secondly because of
certain allegations made against its officers and its management
by certain discharged officers and employees. The examination
Report of the Committee. J83
was contemplated by this department before the request was made
by the officers of the association. The allegations referred lo
did not cause the examination to be made. . I had determined
upon same prior to the filing of any charges. The examiner was
commissioned to make an examination of the association's affairs
He confined his report to matters relating to its condition and
did not go into the matter of the charges referred to, but derived
■ the information embraced in his report from the books and rec-
ords of the association."
The superintendent sustained the position of the examiner on most
of the paints made by the company. With respect to one matter the
report of the examiner was modified by elimination. In his report
as originally prepared and served upon the company the examiner
had called attention to the fact that the assets of the company repre^
sented by its leasehold interest and its deposits in this state and in
foreign countries were not readily available for the payment of death
claims, and that a " more intelligent and conservative exhibit " of the
company's condition would show a balance of .available assets, exclud-
ing such items, over unpaid claims of $33,838.93. This was seriously
objected to by the company and formed one of the subjects discussed
at the hearing before the superintendent. In view of the fact that
assets of this class were included in the statements of other companies,
it seems that the superintendent regarded the objection as well taken
and the matter was disposed of by the elmination of the reference to
unavailable assets from the examiner's report as it finally appeared,
and it was not discussed in the report of the superintendent.
In April, 1^00, the examiner, Mr. Vandepoel, made a deposition in
the suit brought by the company against J. Thomson Paterson, in
which he states that he was familiar with the charges filed against
the company and investigated them "in so far as the books and
" records of the association were concerned," and that in doing so he.
"found nothing which impaired the integrity or honesty either of
" Frederick A. Burnham, the president of said association, or of any-
"one else associated with him in the management of the association
" at the time of such examination." He added, " At the time of such
" examination I was requested by Mr. Burnham; the president of the
"said association, to make my examination of the said charges and
"of the said association thorough and compfete, and to the best of
" my ability I made a thorough and complete examination theivsof . I
" was afforded every facility by the association and its officers to make
184 Legislative Insurance Investigation.
" such examination." Some of the oflacers were examined briefly, but
it appears that the investigation was in effect limited to what was
shown on the books and records of the company and that despite the
broad statement of the affidavit there was no attempt to sift the
charges by a thorough examination of the accusers and the accused.
In connection with the reincorporation of the company' there was
a further examination by the department in 1903 in order to compute
the liability with which the company should be charged for the pur-
poses of reserve in connection with the policies in force. The next
examination was that of 1905, the results of which have already been
stated.
Important as the matter is, it has been impossible for the Com-
mittee in this as in other cases, in view of the many matters engaging
its attention, to make an exhaustive or minute examination of the
company's affairs. The new business of the company, ihcluding re-
vivals, amounted in 1903 to $33,346,340, in 1903 to $14,550,377 and
in 1904 to $19,191,703. Excessive amounts are paid to obtain busi-
ness, the maximum commission apart from advances and other ex-
penses being 70 per cent., with an additional 5 per cent, if a certain
amount ftf business is produced. Mr. Eldridge estimates that the
cost of obtaining new business in 1904 was about $97 on each $100 of
first year premiums. The total amount expended in 1904 attribu-
table to first year's business was $503,540. A$ the company does busi-
ness on the preliminary term basis this was only slightly m excess,
or 105 per cent., of the margins on the first yesir's premiums by rea-
son of loadings and mortality gain. There is no evidence of contri-
butions for political purposes or of payments made to Andrew Hamil-
ton or Andrew C. Fields. The amounts disbursed for legal expenses
have been very large. In 1897 they were $33,605.35, in 1898 $35,-
889.53 and in 1899 they rose to $81,718.81, Since reincorporation
they have been as follows : In 1903 $43,327.51, in 1903 $54,167.13
• and 1904 $87,196.83. These amounts are largely accounted for by
moneys expended -in connection with examinations by various insur-
ance departments and the many litigations in which the company has
been involved by reason of the controversies^and transactions above
mentioiied. In 1901 it paid Messrs. Tracy, Boardman and Piatt
$15,000 for services in connection with the amendment to sectioa 53
of the insurance law, by which the re-incorporation of the compasv
was permitted. In explanation of the large amount expended in
1904 reference i* iksde to a parliamentary investigation in Canada and
to litigatioB m England, as well as in this country. In connection-
Bepori of the Committee. 185
with this it may be noted that in the report for 1904 judgments of
the company aggregating $183^767.93 were not set forth as such, but
\\'ere included in the item of " salaries, rents, office expenses, taxes,
"bills, accoimts, bonuses, commissions, medical and legal fees due
"or accrued."
The company has been refused a license to do business in MiriEesota,
Wisconsin, California, Kentucky and Massachusetfa and the failure
to act upon its application in Illinois was equivalent to a rcf asal. In
most cases the ground for this action apparently was that the company
• was unwilling to submit to exafiiination by the respective state de-
partments. It seems that the company was afterwards re-admitted to
Wisconsin. The efforts of the company to rc-adjust its risks, accom-
panied by reports of questionable transactions, have occasioned wide-
spread dissatisfaction and distrust, and it is apparent that correct and
economical administration, is imperatively needed in order to ensure
the protection of the interests of the large body of policy holders to
whom the maintenance of the company as a going concern under
strict supervision is of vital importance.
SECUEITY MUTUAL LIFE INSURANCE COMPANY.
In 1888 the Security Mutual Life Association was ineorporatod as
an assessment association under chapter 175 of the Laws of 1883. It
was re-incorporated under Article X. of the Insurance I^aw as a
" stipulated premium " company in 1898, and in 1899 it was again re-
incorporated under Article II. of the Insurance Law; under the name
pf the Security Mutual Life Insurance Company.
It is a mutual company, without capital stock, having its principal
office at Binghamton. Each member is entitled to one vote in person
or by proxy for each thousand dollars of insurance effected on his or
her own life, but a vote by proxy is not accepted unless the proxy has
been registered with the general manager, or in case of his death or
absence, with the registrar of the company, at least ten days before
the meeting at which the vote is offered. The time and place of the
annual meeting are stated in policies of the company, and further
notice is expressly waived. No other notice is given save by publica-
tion in Albany and Binghamton papers. The president of the com-
pany, Charles M. Turner, holds about 1,000 proxies, but it appears
that proxies are rarely used. It is said that at the last m.eeting 368i4
votes, representing $368,500 of insurance, were cast by about twenty
policy holders of Binghamton.
186 Legislative Insuratt/ce Investigation.
Mr. Turner organized the company, and on ITov^mber 30, 1886,.
it entered into a contract with himself and one Charles F. Tupper,
providing that they should be respectively the general manager and
secretary of the company, and should manage and Gonduct its business,
paying all expenses, and in return should receive aU the membership
fees and annual dues, being the expense portion of the receipts ior
members. The assessemnts for the payment of death losses were to
be set apart in mortuary and reserve funds, to be held exclusively for
1;he members' benefit. The agreement was to continue during the life-
time of Turner and Tupper or the survivor. Pursuant to this ar-
rangement, the company, under the management of Mr. Turner, used
the expense iportion of its revenues in developing its business, and for
the first few years there was no margin available for the compensation
of himself and Mr. Tupper. The latter resigned in 1889. Mr.
Turner had made advances in starting the company, and in 1888
induced six members of the Board of Directors to make contributions
to supply deficiencies in the expense fund, assigning to them propor-
tionate shares of the prospective profits under his contract. ' By the
fall of 1893 the expense fund and these advances having been ex-
hausted, an indebtedness of about $12,000 had been created. Down
to this time Mr. Turner had received for his services from the time
of the organization of the association about $11,.000 in alL
- In order to provide for the future a company knovm as the " Agency
and Investment Company" was incorporated under the laws of the
State in January, 1894, with a capital stock of $135,000. Thereupon,
in lieu of the existing contracts with Mr. Turner and his associates,
new agreements were entered into between them and the Life Associa-
tion and the Agency Company and between the two companies, pro-
viding in efEect as follows: The Agency Company was to pay the
indebtedness" of $13,000 and was to furnish $35,000 in casK to be used
by the association in buUding up its business; it guaranteed the " re-
"ceipt by said Life Association of good and acceptable applications
" for life insurance to an amoujit of at least five millions per year,"
and in case such applications were not received the Agency Company
agreed to pay $1.50 for each thousand dollars of the deficiency; the
Agency Company agreed to pay Mr. Turner's salary as secretary or
general manager, or both, in a sum not exceeding 50 cents upon eaehi
thousand of insurance in force upon the books of the association on
the preceding 31st day of December, and in the event of Mr. Turner's
death, removal or incapacity a sum not exceeding $6,000 a year as
the salary of his successor; it was also provided that the association
Report of tUe Committee, 187
should pay to the Agency Company from its expense fund a yearly
commission of 5 per cent, itpon its gross cblleetions for premiums;
and in consideration of receipt of stock of the Investment Company
Mr. Turner and his associates released the association, subject to the
performance and continuance of the contracts as prescribed, from thei
pbligatiouB of the prior contracts. The agreement between the asso,-
ciation and the investment company was to continue until abrogated
by mutual consent, but both companies agreed that they would not
consent to its termination during Mr. Turner's lifetime without his
concurrence.
Of the $125,000 stock of the agency company it was provided that
Mr. Turner should receive $40,000 and his associates $48,00-0,the
remainder ($37,000), it seems, being issued to provide moneys for the
agreed payments to the association. It is understood that of the
$88,000 of stock issued to Mr. Turner and his associates, about $10,000
was intended to compensate Mr. Turner for his prior services, and
the residue was designed as a return for the advances which had been
made for the benefit of the association, said to amount with interest
to about $50,000. In January, 1895, the agency company increased
its capital stock from $125,000 to $250,000, and between that time
and December, 1902, $50,000 additional stock was issued, making iho
total amount actually issued $175,000. The cash realized by the sale
of the increased stock was used for the benefit of the association,
which transferred to the agency company certain agents' balances
amounting to something over $75,000. In addition, the agency oom-
pany borrowed and supplied to the insurance company $22,500. Of
the assigned agents' balances only $2,100 was paid to the agency com-
pany, although the insurance company collected $53,321.68. In Feb-
ruary, 1903, mutual releases were exchanged, under which the insur-
ance company was discharged from any liability to the agency
company.
A unique situation was thus presented. The association had its -
full complement of ofiicers, but by its by-laws Mr. Turner a? general
manager had the general direction of its affairs. The scheme of the
contracts preserved Mr. Turner's stipulated salary during his lifetime
(unless he should become incapacitated), free from the control either
of the policy holders or directors of the insurance company, or of the
stockholders or directors of the agency company. In effect, the ad-
vances theretofore and subsequently made were capitalized as an in-
vestment and represented by the stock of the agency company. Apart
from its relations with the insurance company, it transacted no busi-
188 Legislative Insurance Investigation.
/
ness whatever. In addition to what has heen noted, It simply received
moneys from the association, paid Mr. Turner's salary and declared
dividend's. Through its 5 per cent, commission it received from the
insurance company amounts legally in ^excess of the sums necessary
to pay Mr. Turner's salary and thus provided through dividends upon
the stock a return upon the advances. The obligation of the agency
company to provide business for the insurance company imposed no
substantial burden upon- it. It did not employ agents or pay com-
missions or establish offices in connection with the work of the asso-
ciation. Apart from the agreed advances, it did not prove to be
necessary for it to take any steps to bring the business of the associa-
tion up to the agreed quota of $5,000,000. It will be noted that if
the agreement for payment in case of breach of guaranty be taken as
the stipulated measure of damages, the total amount to be paid in
case no part of the $5,000,000 was obtained would have been only
($7,500 annually. The annual business of the association- for three
years prior to the making of the agreement appears to have been as
follows :
1891 $1,864,000 00
1892 3,186,250 00
1893 4,894,100 00
— and in succeeding years the new business annually written was:
1894 $5,839,900 00
1895 10,931,500 00
1896 • 9,523,526 00^
1897 8,411,672 00^
1898 7 ^6,284,2fi9 00
1899 13,286,383 00
1900 8,903,773 00
1901 7,719,411 00
1902 9,791,096 00
1903 11,251,038 00
1904 13,888,017 GO
In 1902 it was desired that Mr. Turner should take the presidency
of the insurance company, and thereupon suitable agreements were
made to the effect that Mr. Turner's election as president should not
change the existing contracts as to his compensation or the manner of
its payment or enlarge it.
Report of the Committee. ^ 189
In February, 1903, the agreement of 1894 was modified so an to
release the insurance company from its obligation to pay to the agency
company any portion of the 5 per cent, commission in excess of a sum
sufBcient (1) to pay the salary of Mr. Turner and his successor as
required by existing contracts, (2) to pay the necessary expenses of
the agency company, including taxes and other necessary disburse-
ments and expenses, and (3) to pay dividends at the rate of 12 per
cent, per annum on the capital stock of the agency company which
had been or thereafter might be issued not*to exceed the then author-
ized capital. The guaranty of the agency company to furnish " good
and acceptable applications " for insurance was limited to the amount
of $3,500,000 a year, and with these modificitions the agreements of
1894 were continued. The moueys received by the agency company
and by Mr. Turner under this arrangement, and the dividends de-
clared by the agency company, are as follows:
190
Legislative Insurance Investigation.
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Beport of the CommiUee. 191
It is said tliat under the modified arrangement the insurance com-
pany saved in 1903, out of the five per cent, commissions originally
payable, $19,679; and in 1904, $31,714. It is expected that this sav-
ing wiU be largely increased. This, however, reflects the liberality of
the original agreement in its application to recent conditions. And
under the modification the agency company after paying Mr. Turner's
salary, which increases with the insurance business, and other ex-
penses, is BiSsured sufficient to pay 13 per cent, dividends upon its
outstanding stock up to the limit of its present authorized capital.
It should be added, however, that Mr. Turner stated that he intended
to limit his salary to $3.0,000.
"Out of the 1,750 issued shares of the company, it is said that 745
shares are owned by officers and directors of the insurance company,
and that the remaining 1,005 are scattered among forty other owners.
According to the annual statement of December 31, 1904, the
premium income of the company was $1,453,385, its outstanding in-
surance $47,044,657, and its surplus $505,831. Its assets were classi-
fied as follows :
Assets:
Book value of real estate $374,567 95
Mortgage loans on real estate 306,956 00
Collateral loans 25,500 00
Loans made to -policy holders on "this company's
policies assigned as collateral 1,474,800 41
Premium notes on policies in force 18,709 49
Book value of bonds and stocks owned 574,060 50
Cash in office and in banks 337,345 70
Agents' balances 136,413 71
Interest due or accrued 50,713 63
Ifet uncollected and deferred premiums 160,708 43
Gross assets $3,349,673 80
Deduct Non-admitted Assets:
Premium notes or loans in excess of
Agents' balances ., $136,413 71
Premium notes or loans in excess of ^
net values of policies 117,117 31
Depreciation from book value of
ledger assets '. 36,803 45
280,333 37
Total admitted assets $3,069,340 43
392 Legislative Insurance Investigation.
Liahilities:
Net reserve $3,423,477 10
Present value of unmatured supplementary contracts -65,967 13
Total policy claims 44,071 30
Premiums paid in advance , 5,983 95
Salaries, rent, commissions and other accounts due
or accrued 24,019 49
TJnassigned funds (surplus) 505,821 56
Total $3,069,340 43
An examination was made by the Insurance Department in Jan-
uary,-1905, and this statement was found to be correct. The above-
mentioned " depreciation from book value of-ledger»assets " consists
of $12,766.95 on real estate and $14,035.50 on securities. The surplus
has been reduced in recent years,having been $696,443 in 1901, $568,-
855 in 1902 and $591,714 in 1903. It is explained that this is largely
accounted for by a change in the method of reporting, as assets,,
premiums in course of collection.
The real estate item reported by the company, with the exception of
two small parcels, consists of the outlays upon a home office building
which has been under construction since 1903 and was substantially
completed last August. The total cost, it is said, will be about $670,-
000, and it is expected that the net annual income will be about $30,-
000.
With one exception the company's investments in negotiable secur-
ities consist of State, municipal and railroad bonds. It owns $20,000
par value of the stock of ihe First National Bank of Binghamton,
said to be worth $44,000, the amount paid for it. The capital of the
bank is $400,000, and five of the officers of' the insurance company.
President Turner, Vice-President William G. Phelps, Second Vicer
President George W; Dunn, Third Vice-President and Counsel F. W.
Jenkins and Treasurer J. W. Manier, are directors of the bank, con-
stituting a majority of its Board, Mr. W. G. Phelps being its presi-
dent. The insurance company maintains its active account with the
bank. Its balances through ten months of 1905 ran from $159,803.20
in January to $52,511.55 in June and $1,16,898.72 in October. The
average balances in 190.4 and 1903 were less, On $30,000 it receives
no interest, but on the excess it reeeivesJnterest at the rate of 2 per
cent. The bank is also a tenant of the insurance company in H& n&w
Report of the Committee. 193
building, paying, it is said, an entirely adequate rental. The com-
pany has made few loans on collateral, and in November 1905, there
was only one outstanding loan amounting to $1,500. It appears that
in the past loans have heen made to officers of the compaay and to the
Binghamton Beet Sugar Company, in which certain officers were
interested. In 1900 a loan of $1,500 was made to David H. Keefer,
first assistant actuary in the New York State Insurance Department,
the balance of which was paid in 1903. There have been no syndi-
cate participations, and it is said that none of the officers or directors
have made any profits from the purchase or sale of securities. In •
May, 1905, the Board of Directors adopted resolutions providing that
no loan or investment should be made without the consent of three-
fifths of the Investment Committee, that no director or officer should
directly or indirectly borrow any funds of the company or receive any
commission or other valuable thing for procuring, recommending or
negotiating a loan or for selling or aiding in the sale of any security,
that the company should not acquire any mortgage or loan on un-
improved or unproductive property or on any hotel, theatre, brewery,
factory or mining enterprise or any description and that it should be
the duty of the Investment Committee to examine all the securities of
the company every six months and report the result to the directors.
Apart from the salary of the president, the salaries of the officers
are ss follows : The first and second vice-presidents receive no salary,
the third vice-president and counsel, who is said to devote his entire
time to the company, receives $10,000, the comptroller $4,800 and the
treasurer $1,800. The salaries of the assistand general manager, as-
sistant secretary, medical director, actuary, registrar, agency director
and cashier amount to $19,980. Mr. Turner's son, as assistant sec-
retary, receives $3,400 a year, and his son-in-law, in the Auditing
Department, has a similar salary. Aside from the salary of the coun-
sel the legal expenses of the company have been small, the highest
amount being $2,331.34 in 1904. It is said that no payments have
been made to any attorney or other person, directly or indirectly, to
influence legislation, that no moneys have been paid to Andrew Hamil-
ton or A. C. Fields, and that there have -been no contributions for
political purposes. Since 1902 the president has had annually $2,000
from the expense fund for discretionary disbursements. From this
fund various payments have been made, such as for the purpose of
entertaining agents, decorating the building on the occasion of the
Firemen's Convention contributing for a Dairymen's Cons'cntiori,
facilitating the construction of the office building and otherwise as
seemed expedient from time to time.
194 Legiskaiive Insurance Investigation.
FroiB the outset tJie company did business upon a stipulated pw-
mium basis, that is to say, it put in force a scale of rates whicli were
supposed to be adequate to carry the policy and to furnish an accuimu-
lation which, at the end of a given period, wouM be sufficient to pro-
vide for the increased cost of insurance. While as an asse&snient
company it would not make a level premium, and was bound to pro-
vide uttder the law for an increase of rates if neoessary, the manage-
ment seems to have been confident that there would' be no increase ,
and. throiigh emphatic statements by the representatives of the e@m-
l»ny of its expectation, this belief was induced in the minds of tiw
policy holders. The early policies provided for the annual payment
of a definite sum. Seventy-five per oent. of the moneys received for
death claims was to be placed in the mortuary fund account and 25
per cent, was to be set apart as a reserv€«fund and deposited in trust
for the .exclusive benefit of the members, to be Used in paying death
.claims in excess of the American experience table of mortality and
otherwise, through the issue of certain bonds.. These bonds were to
be issued to members .quinquennially for equitable proportions of the
reserve fund, -and were to be available as dividends in part payment
of subsequent mortuary premiums or as additional insurance. In
effect the policies provided for. a contract reserve, with which, how-
ever, the company was not required by the Department to charge
itself as a liability in its annual statements. The payments for
mortuary purposes, it is said, were never drawn upon for expenses,
and the effort was made to carry out the~provisioas of the policies by
the accumulation of a reserve fund. But the results were disappoint-
ing. Mr. Turner was not an actuary, and had had no experience in
the life insurance business except as a solicitor. It seems that
he took the rates of the Provident Savings Company, and with
the aid of a bookkeeper, made such rates as be thought would be
safe and provide a reserve sufficient to carry the policies during the'
expectations of life. Some time later the company employed a con-
sulting actuary, and a few years ago he was succeeded by Mr. Keefer,
of the Insurance Department, at a salary of $1,000. Section 7 of the
Insurance Laws provides: "No corporation examined shall either
" directly or indirectly pay by way of gift, credit or otherwise, any
" other or further sums to the- superintendent or any clerk or em-
"ployee of the Insurance Department, or any examiner, for extra
" service of for purposes of legislation, or on any other pretence what-
" soever." About two years ago an a,ctuary was employed to devote
his attention exclusively to the business of the company. Bonds
were issued under the first policies at the end of the first five years in
Report of the lommittee. 195
1892, but not subsequently; in 1889 new pr6mium rates were put in
force, and on the policies with these rates bonds were issued at the
end of five years, but it seems that there was no second issue of bonds
in any case. /
In 1898 the Legislature,, on the recommendation of the Insurance
I^epartment, enacted the " Stipulated Premium " Law, that is, Article
X. of the Insurance Law. The object of this was to enable an
rssessment company, which could make the required deposit of $100,-
000 and provide a certain reserve, to take itself out of the general
class of assessment companies. The Security Mutual had suffered
from the poor reputation of assessment companies and desired to be
Ijlaced in a differenj: category. It could not at the time reincorporate
as a level premium eompaiiy without having a capital stock, and it
did not desire to reorganinie en that basis. The " Stipulated "Pre-
mium " Law seemed to meet its situation, and accordingly it accepted
its provisions soon after its passage. The advantages which it offered
were to permit a company to advertise itself under legal sanction as a
■' stipulated premium " company, implying a level rate, alth-OTigh' it
.was not compelled to maintain the same reserve as was required of
ordinary lepel premium companies. On limited payment life policies
and on endowment policies, it was required to maintain a full reserve,
but policies vvith continuous £xed payments payable at death were to
be valued only as one year term insuTance., although the distinction
between thera and ordinary life policies was that in ease of the
impairment of the reserve an additional assessment might be levied.
It was afforded an indulgent standard of solvency, and was enabled
to receive, after examination, a certificate to the effect that its legal
reserve was intact. The scheme of the statute attracted critisism, and
the enactment in other States of legislation of this sort, with even,
more liberal features, brought the whole plan into disrepute. It
seems that the Security Mutual was' the only company in this State
to organize under the law. As it was found that through its rein-
corporation as a "stipulated premium " company it had escaped the
prohibition directed against assessment companies, and was entitled
reorganize an ordinary level premium company under article II.,
it effected such a reorganization in 1899, and since then has trans-
acted business with a full legal, reserve as to its new policies.
There are now outstanding about $4,000,000 or $5,000,000' of the
old assessment policies. Since the reincorporation there have been
many exchanges for new forms of policies. One of these forms is
called " Twenty Year Limited Payment Guaranteed Addition Plan."
The ^aranteed additions, however- are payable onlj in the evenj; of
196 Legislative Insurance Investigation.
the death of the insured within twenty years from the date of the
policy as dated back. The following is an illustration of the result of
such an exchange: In 1894 a policy was issued for $2,000;^ at age 42,
the premium being $100.94 a year, which was clearly expected to
remain constant. In 1903 it was exchanged for a policy of a similar
amount for twenty years from the original date. To establish a re-
serve a lien note was signed by the, insured charging the policy with
$771.56, hearing 6 per cent, simple interest. At the expiration of
eleven years, that at the end of the twenty-year term, the principal
and interest of the lien will amount to $1,280.79, leaving- as the net
amount of the policy $719.31, and at that time the insured will have
paid about $2,220. If living, he will be entitled to surrender the
policy and will receive the difEerenee between the amount of the lien
and -the aggregate of the reserve and surplus. According to the ex-
perience of the company there is little reason to ex:pect a surplus, and
. the cash surrender value, if there be no surplus, will be about $99.
After the twenty years expire the policy may be continued without
payment of additional premiums for its net amount, but the then
aggi-egate principal and interest of the lien will be taken as a new
principal, and interest on this will be charged against the policy. In
about ten years, that is if the insured lives to age 72, his insurance
\will be entirely exhausted.
On about $500,000 of the old assessment policies the rates were in-
creased in 1905. Thus in the case of a policy for $1,000 issued in
1888, at age 56, premiums were paid at the rate of $7.38 quarterly, or
$29.52 a year, for seventeen years. Then the rate was raised to
$21.69, or $86.76 a year (the one-year term rate at age 73, less credit
of $4 a year. This rate will increase until age 75, and from that time
on he will pay $91.62, net, annually, which is the one-year term rate
at age 75. It should be noted in this connection that the company
does not hold for these assessment policies, as to which this privilege
is given, any reserve to maintain the rates level after age 75. Out of
regard for these old policy holders it seems that the subsequent in-
creased cost of the insurance is thrown upon the other policy holders.
The policy has no surrender value. Provision, however, is made for
carrying the policy at the original premium if the insured consents
to a reduction of the insurance to the extent represented by -the dif-
ferencfe in rates.
The company had made a feature of " Probable Life " insurance,
and of the $47,000,000 of insurance outstanding the greater part is
of this type. It in effect provides for insurance on a term rat-e. for
tbe probable expectation of life, or uoder recent forros tox the term
Report of the Committee. lOT
expiring at age 75. It is intended to provide insurance at low rates
during the productive years when it is supposed it is most needed.
At the expiration of the term the insurance may be continued at an
increasing rate for age attained. . Thus one insured at age 40 would
pay a premium of $23.80 per $1,000 and at age 75 to continue his in-
surance he would he compelled to pay $91.63 aiid increasing rates
thereafter. The insured is to be credited with whatever accumula-
tions there may be upon his policy, but as it is upon a term basis
at the " lowest possible cost " an accumulation is unlikely. It is
obviously important that policy of this sort, the rates on which closely
approxin.ate nonparticipating ordinary life rates, should nob be con-
fused with whole life policies. Yet the company has styled it the
" P. L." policy and has described it in its circulars as a " Pure Life "
plan, intending to emphasize its pure insurance features. In an ad-
vertisement published by one of its agency directors it was referred to
in the following language : " Pure Life insurance without investment,
loan and surrender values is the most popular policy right now. This
company issues a whole life contract furnishing pure insurance." This,
it is explained, was authorized and met with proper reproof, but shows
the care that is necessary to guard against misconception through
ambiguous characterizations.
The total amount of term insurance on January 1, 1905, amounted
to $32,864,338. There were $800,000 whole life policies with annual
dividends, and $11, 922,862 were whole life. Limited life and endow-
ment policies with deferred dividends. Policies representing about
$5,000,000 of insurance- have been registered and for this purpose
about $475,000 have been deposited with the Superintendent of In-
surance.
Payments for, new business have been excessive. The expenses in
1904 exceeded the total loadings xm the premiums by $232,000,
tiinoM tinp to 146.10 pv.v fuit. of Iho loadings, to i hat' the surplus
eaned during the year, as shown by the gain and loss exhibit,
amounted to only about ^$9,000. The ordinary brokerage commis-
sion paid is 70 per cent, graded and 5 per cent, additional is sometimes
allowed for office expenses. The renewal commission is 7 per cent,
on participating life or endowment policies so long as there is $100,-
000 of- insurance to the credit of the contract, this being reduced to
5 per cent, in the event of the termination of the contract. In some
cases larger rates have been paid; e. g., 80 per cent, graded on ]3arti-
cipating policies, with a renewal commission of 8 per cent, as Jong as
the quota of $100,000 of insurance is maintained. These are in addi-
tion to advances and other expenses. A few years ago the company
198 Legislative Insurance Inve'stigation.
took over the business of the Bankers' Guaranteed Fund Life of At-
lanta, Georgia, recei-ving about $40,000 of assets and $3,000,000 of
business, said to be well selected risks. The commissions paid were 5
per cent, renewal upon future prenjiums, and the agent who had the
matter in charge was allowed a salary of $3,000 a year under a ten
years' contract. Although preliminary term policies are issued, the
expenses attributed to first year's business for 1904 amounted to
$486,487.54, or 148 per cent, of the margins on the first year's pre-
miums. The difference between the methods of valuations obtained
in this State and in Maissachusetts is strikingly illustrated, as in New
York through a recognition of preliminary term policies as written,
the company gained at the end of 1904 about $311,000 in the com-
putation of its liabilities over the amount allowed in Massachusetts.
LIFE ASSOCIATION OF AMEEICA.
The Life Association of America was incorporated in August, 1903,
under Article 2 of the Insurance Law. It has an authorized capital
stock of $500,000, divided into 35,000 shares of the par ralue of $30
each; $200^000 of the stock has been issued. The charter provides
that the 'ncome of the company over its losses, expenses and reserves
shall be accumulated and from time to time distributed as the board
of directors may provide in the ratio of three-tenths to the stock-
holders and seven-tenths to the participating policy holders. It is
provided, however, that the directors shall not be compelled to
" declaje any such dividend and they shall have full authority to
accumulate such a further reserve and surplus as in their estimation
will fully protect and safeguard the interest of the company."
Prior to its incorporation as a stock company an organization had
been effected in 1901 under article 6 of the Insurance Law as an
assessment company with the same name. Those most prominent in
the organization were Henry P. Townsley, formerly general manager
of the Bankers' Life Insurance Company, and Eugene ""Van Sehaick,
who together control the Manhattan Bond and Underwriting Com-
pany, the relations of which to the Bankers' Life through its owner-
ship of stock in the Knickerbocker Investment Company have already
been described. The assessment company was intended as a prelimi-
nary step to the formation of the stock company, the plan being to
secure a large business and income and to raise the necessary capital
through the subscriptions of policy holders for shares of the capitd
stock. , The money received on stock subscriptions was deposited in a
trust company and stock certificates were subsequently exchanged for
the trust company's receipts. Thercwas also the advantage of being
Meport of the Commiitee. 199
able to turn over to the stock company business .obtained at rates
closely approaching level premium rates, but which would be valued
under the Insurance Law as one-year term insurance at attained age,
thus saving in the valuation at the outset a large amount which would
be available as surplus, though needed to maintain the rates.
Part of the stock was taken at a rate above par, and for the lOjOOO
shares which were issued the stock company received $368,764.14
whea it began business in 1903. It took over in addition the funds
of the assessment company, amounting to $85^55.18, on the assump-
tion of the outstanduig risks. Its income to the end of 1903 amouni;ed
to $28,421.55, leaving it on December 31, 1903, with a balance of
$381,612.71.
In the latter part of 1904 it was examined by the Insurance De-
partment and its condition as of September 30, 1904, was reported to
be as follows:
Balance ledger assets December 31, 1903 $381,612 71
Disbursements January 1, 1904, to
September 30, 1904 $165,229 16
Eeceipts January 1, 1904; to September
30, 1904 149,982 51 .
15,246 65
Balance ledger assets September 30, 1904 $366,3.66 06
' Noti'ledger Assets:
Interest due and accrued 3,457 23
Market value of stocks and bonds over book value. . . 8,261 39
Goods deferred and uncollected premiums, less load-
ing thereon 21,540 80
Furniture and fixtures 4,332 52
Gross assets $403,958 00
Assets Not Admitted:
Agent's balances included, in balance
above ■ $21,153 51
Furniture and fixtures 4,332 53
Premium notes and liens not credited 1,006 71
Premium notes or liens on policies and
net premiums in excess of the net
value of their policies 15,506 00 _
. ^- — 41,997 74
Total admitted assets September 30, 1904, $361,960 26
200 Legislative Insurance Inve'sii^aiion.
These assets and the liabilities of the company were stated as
follows :
Loans on bond and mortgage first liens $25,000 00
Mortgages '. 21,100 08
Other collateral loans 43,500 00
Net premium notes and liens 5,04:7 20
Stocks and bonds owned, market value 183,950 00
Cash in office and in banks and trust companies. . . .' 73,871 05
Interest due or accrued '.........;... 3,457 23
Deferred and uncollected premiums, less loading. . . . 21,540 80
Gross assets $377,466 26
Deduct premium notes or liens and net premiums in
excess of the net value of policies 15,506 00
Total admitted assets $361,960 26
Liabilities: , '■
Reserve , $97,012 00
Death claims contested and in suit 15,000 00
Special deferred commissions 2,887 91
Capital stock 200,000 00
Surplus 47,066 35
Total $361,960 26
According to the annual statement of the company as of December
31, 1904, the admitted assets then amounted to $396,238.21 and the
surplus had increased to $71,423.33.
The stockholders were paid in 1904 10 per cent., or $20,000. The
testimony, on December 19, 1905, was that there had been one quar- '
terly dividend in 1905, of $5,000. The dividends to policy holders
were $159.47.
The officers of the company are Henry P. Towpsley, president,
whose salary was $10,000 a year to May 1, 1905, and then was in-
creased to $12,000. The vice-president is John W. Vipcent, who re-
ceives no compensation as such, but as treasurer had a salary of
Report of the Commitiee. 201
$2,500 a year to May 1, 1905, which was then raised to $3,000.
Charles W. Townsley, the president's son, is the secretary without
salary, hut employed as general agent of the company in the nietropoli-
tan district, receiving, it is said, the same rate of commission as other
agents. The general counsel of the company, Eugene Van Schaiek,
has received a salary since May, 1905, of $6,000; it was formerly
$5,000. His brother, Dr. George D. Van Schaiek, is the medical
director, with a salary of $6,000. Proxies, requested on the distri-
bution of the stock, are held by Townsley, Van Schaiek and Vincent.
At the outset Messrs. Townsley and Van Schaiek availed them-
selves of their control over the funds of the company to procure a
portion of the moneys needed to pay for their personal stock holdings.
They subscribed for 3,960 shares at $30 a share. It is explained that
they were moved to do this because of a demand of the Insurance
Department that they should perfect their organization at an early
date, "and as some of the stock had been sold to others at $30 a share
they believed they should pay the same price. Some of the stock has
since been sold, none for less than $40 a share. Of the amount pay-
able on their purchase Messrs. Townsley and Van Schaiek obtained-
from the Gansevoort Bank, which was made the depositary of the
company, and placed to the credit of the coinpany in that bank the
sum of $66,000. This was accomplished through a loan against the
stock as collateral, made upon an agreement that a sufficient amount
of the company's money should he held on deposit to protect it. It
is said that a check of the company for the amount of the loan was
delivered to the bank to be used in case a withdrawal of deposits in
violation of the agreement should be attempted. Mr. Townsley testi-
fied that it was not his intention that the company's check should
actually be used to pay the loan and that its subsequent use for that
purpose was contrary to the understanding. The entries in the com-
pany's check book show the deposit to the credit of. the company of
$66,000 on July 20, 1903, and a check by the company to the Ganse-
voort Bank of $51,8X6 of March 4, 1904, when the loan was dis-
charged. The amount, it is said, was immediately made good to the
company, but this was done through a vote of the directors on March
9, 1904, awarding to Messrs, Townsley arid Van Schaiek $50,000 for
their services in organizing the company. This resolution seems to
have been made in pursuance of the action of the Board of Directors
of the preliminary assessment company in March, 1901, by which a
payment of $50,000, which might be made in stock, was to be allowed
as compensation to the organizers. The fact that Messrs. Townsley
202 Legislative Insurance Investigation.
and Van Schaick had received $50^000 was discovered on the de-
partmentol examination in 1904 and its propriety .was referred to the
Attorney-General. On his opinion the Superintendent of Insurance
demanded the return of the money and Messrs. Townsley and Van
Schaick repaid it to^the company in March, 1905. It seems that
another loan of $25,000 was made by the Gansevoort Bank on or about
March 17, 1904. Townsley and Van Schaick received through the
checks of the life association, drawn on the accou.nt with the Ganse-
voort Bank, $14,000 on March 4, 1904, and $9,560.40 on March 21,
1904. The explanation offered is not precise, but it seems that these
amoi:rits w-^rs tlie avails of the $25,000 loan, and it is said that this
loan was subsequently repaid to the bank by Townsley and Van
Schaick.
In April, 1904, Townsley and Van Schaick made an arrangement
of a similar kind with the Citizens' Trust Company of Paterson.
They borrowed $10,000 from the trust company, pledging ffOO shares
of the stock of the company as collateral and making two deposits'
with the trust company of funds of the life association, $10,000 being
placed in the savings bank account at 3>^ per cent, interest and
$5,000 in the current account without interest. A cheek of the life
association for $10,000 against its balance on deposit in the savings
department, together with the savings bank book, was delivered to the
trust company to insure the performance of the agreement that the
deposit should not be withdrawn until the loan was paid. Mr.
Townsley, as president of the life association, in his letter to the presi-
dent of the trust company, said : " This check is to be held by you
in escrow and "be used by you in the payment of our loan when
called." The Commissioner of Banking and Insurance of New Jersey
discovered the transaction and informed the trust company tljat the
loan was uniustified as it did not appear that Messrs. Townsley and
Van Schaick were authorized by the life association to "pledge its
funds for credit to secure their personal obligations." Thereupon
it seems that Townsley and Van Schaick paid the loan and the com-
pany's check and bank book were returned.
Of loans to the amount of $78,610 which have been made on the
security of real estate since June, 1903, $7,500 was a loan to the
treasurer, John W. Vincent, on property in the Borough of The
Bronx; $10,000 to Wilson B. Brice, a director and assistant counsel
in the office of Eugene Van Schaick, on 20,000 acres of land in
County Emanuel, GecTrgia, and $35,000 to Henry Van Schaick, the
father of Eugene Van Schaick, on property ISTos. 108-110 West fifty-
third street, Few York.
Report of the Committee.
203
The following are said to be the loans on collateral which have
been made by the company since the re-incorporation in August,
1903:
Date.
Kame.
Amount.
Security.
When paid.
Aug. 88, 1903 Wilson B. Brice $10,000 00
Sept. 22, 190S William H. Weimer .
Dec. IB, 1903 C. A. Allen
Dec. 21, 1903 Henry P. Townsley .
poo shares Wheel within'
Wheel Co.; 45 shares
Patent Title G-uaranty
Co.; 250 shares N. Y.
Sanitary Street Refuse
Receptacle Co
Collateral note Weimer,
Wright & Watldns; S3
shares American Pipe
80,000 00) Mfg. Co.. 100 shares
1 Central Trust SaTings
Co.; Philadelphia; 360
shares Bryn Mawr Trust
Co.;. 15 shares Bryn
Mawr National Bank . . .
100 shares Gold Car Heat-
ing and Light Company
2 notes of $1,000 each, se-
curity on property in
I Sedalia.Mo
3,000 00
2,000 00
Dee. 87, 1904
May 4, 1903
Feb. 15, 1904
Oct. 3, 1904
Date.
Name.
Amount.
Seoiu'ity.
When paid.
Dec. 81, 1903 Henry P. Townsley $2,500 00
Jan. 22, 1904 William A. Cable 8*100 00
Oct. 8,1904 Henry P. Townsley 3,000 00
Oct. 14, 1904 George 0. Capron 500 00
Oct. 31, 1904 Henry P. Townsley 11,753 54
Oct. 14, 1904 Henry P. Townsley 7, 012 50
Mar. 22, 1905 Sidney H. Solomon ^, 800 00
May 1, 1905 Eugene Van Schaick. ... 13, 750 00
riOO shares Toledo, St.
Louis & W. B. R
8 shares American Walt-
ham Watch Co
Oct. 31, 1904
$600, August
81, 1901;
$1,500. Apr.
25. 1905.
Oct. 31, 1904
300 shares Toledo, St.
Louis & W. B. R....
9 collateral notes of Amer- $100. July 12,
lean Glass Co., - $100 1905.
each ,
400 shares preferred stock
Toledo,. St. Louis & W. R.
R. and collateral note
Additional loan on above
security
3,000 4% gold bonds of
American Tobacco Co.
and collateral note
81,000 Colorado Midland I
Railway Co. 4si bonds... j Nor, 80, 1905
Wilson B. Brice, "William H. Weimer, C. A. Allen, as well as
Messrs. Townsley and Van Schaick, seem to have been directors at the
time the loans were made. George C. Capron is an agent of the com-
pany.
On the examination by the Department in 1904 the examiner re-
ported that he had been unable to discover any source from which
quotations could be derived to show the market values of the stocTiS
of the Patent Title Guaranty Company, the ISTew York Sanitary Street
Eefuse Eeceptacle Company or the Wheel Within Wheel Company,
S04 Legislative Insurance Invesiigaiion.
accepted as collateral for the Brice loan.
The securities owned by the company consist of municipal and rail-
road bonds and railroad stocks. There have been no syndicate par-
ticipations. It is also stated that there have been no payments for
political purposes or in connection with legislation.
At the end of 1904 the company had outstanding insurance to the
amount of $7,048,052. Policies amounting to $4,350,803 were
written in that year.
The company seems to have paid its death claims promptly and
has properly emphasized this fact in its advertisements, but wjth
respect to other matters it had practiced gross deception in order to
obtain business. Thus, it has issued a circular containing the fol-
lowing :
" The Life Association of America issues Annual Dividend Policies
and pays larger dividends to policy holders than any other company.
The Association also issues Deferred Dividend Policies, and must,
by reason of its large Annual Dividends, produce correspondingly
better results at the expiration of the Deferred period.
Illustration No. 1.
Policy No. 2149 ; Dated March 30, 1901.
Amount, $10,000.
30-Year Endowment; Age 31.
Anpual Premium, $483.50. '
Dividend, 3d year, $72.52; Net Cost, $410.98.
Dividend 4th year, $79,77; Net Cost, $403.73.
Dividend 5th year, $79,77; Net Cost, 403.73.
Illustration No. 3.
Policy No. 2438; Dated September 16, 1902.
Amount, $1,000.
20-Year Endowment; Age 24.
Annual Premium, $47.90.
Dividend 3d year, $7.18; Net Cost, $40.73."
In fact, the company only had two policies upon which annual
dividends had been paid, and those were the policies mentioned as
"illustrations." The first policy of $10,000 is held by George C. Capon.
He originally insured with the assessment company in March, 1901.
and about August, 1903, after the organization of the stock company,
Report of the Committee. . 205
his policy was exchanged for an annual dividend policy, which was
dated back to the original date. Against the difference in premiums
he was allowed an arbitrary smn of 15 per cent, of the new premium
declared as a dividend of the preceding March (1903). In the subse-
quent years the " dividends " were raised to 16^/2 per ce^nt. of the
premiums from which they were deducted. The dividend in the sec-
ond "illustration" was fixed at 15 per cent, of the premium. It is
admitted that the figures were, entirely arbitrary.
Dividends are not allowed on annual dividend policies until the
third year, and the policies of this sort amount to only $155,000. The
rate of dividend is now. fixed at 15 per cent, of the premiums.
The company sent out circulars to agents of other companies while
the Committee's public sessions were being held, stating that they
have " one of the largest brokerage businesses in the " City of New
" York," and that " from now on until the first of next year we shall
" continue to pay the high commissions which have made us so popular
" during the past few months." A card issued by the company bears
the following:
" 90 Per Cent
" Commission.
" 20- Year Endowment
" 20 Payment Life
"Deferred Dividend Policies.
"Age 21 to 50."
It is explained that the company pays a commission of 50 per cent,
and commutes renewals so as to make the aggregate compensation 90
per cent, of the premium. On ordinary life policies the total com-
pensation, including renewals, amounts to 85 per cent. The ability
to pay these commissions is said to be due to the fact that policies are
written on a preliminary term basis so that that premiums over the
mortality cost for the first year is a loading for expenses, which
amounts to 90 per cent, on twenty payment life and twenty-year en-
dowment policies. Only about one-half the business written remains
upon the books. This company alone, of all the companies doing
business in ISTew York to whom application was made for such informa-
tion, refused to make and furnish the computations required for the
gain and loss exhibit for the first year of insurance.
206 Legislative Insurance Investigation.
LIFE INSURANCE OLUB OP NEW YORK.
This company was incorporated in November, 1904, under Article
II. of the Insurance Law," with a capital stock of $100,000.
Richard Wrightman, the organizer of the company, had for some
time been connected with the New York Life Insurance Company,
and later with the Reliance Life .Insurance Company of Pittsburg.
He had conceived the idea that a large amount of business could be
obtained without the intervention of sub-agents through advertise-
ments in magazines and periodicals. The plan had been tried in
connection with boih the companies mentioned under a " club "
title, and the present company was formed for its further exploita-
tion. The shares of the company are of the par value of $10.
Through an underwriting by the trustees the company obtained an
amount sufficient to make the prescribed deposit of $100,000 with
the Insurance Department. It was arranged to distribute the stock
among policy holders at a premium and in this way provide a sur-
plus. About 3,500 shares have been sold, none at a less price than
$30 and the greater part at between $30 and $40 a share. Policy
holders may elect whether to pay in monthly, quarterly, semi-annual
or annual instalments, and after two premiums have been paid they
are given an opportunity to purchase one share of stock for each $1,000
of insurance. At the present time the stock is offered at $40 a share. ■
To assist the operations of the company an auxiliary partnership
was formed by Mr. Wightman, the President, and "William R. Malone,
the Vice-President, under the name of the " Life Insurance Club of
New York Auxiliary." By contract, dated June 23, 1905, the auxil-
iary organization agrees to use every endeavor to procure insurance
for the company "through publicity methods and without the em-
ployment of the agency system." All expenses are to be incurred
only and paid by the auxiliary firm, the function of the insurance
company during the continuance of the agreement being confined
to writing policies. For each policy written by the company it is to
receive a percentage equal to the legal reserve, and the balance is to
be retained by the firm as full payment for its services and expenses.
It is provided that the agreement is to continue for ten years, but
by a letter dated November 1, 1905, Messrs. Wightman and Malone
assured the company that if at any time during this term the ex-
penses incurred under the agreement shall be less than the loadings
on the premiums and all past expenses over and above the loadings
shall have been met, together with all obligations incurred by them
Report of the Committee. 207
in good faith in carrying on the business, the contract shall he sur-
rendered for cancellation.
The premiums charged are said to he from 10 to 30 per cent, less
than the. quarterly rates of leading companies. Policies are written
on the modified preliminary term basis and the first year's loadings
run from 20 to 80 per cent, according to- the kind of policies.
The company did not become qualified to do business until June,
1905, and it commenced advertisifig in November. It has in force at
present 205 policies, aggregating $340,000, and when the testimony
of Mr. Wightman was taken on December 29 it was estimated that
an equal number were in transit and process of examination. No
salaries are paid by the company. Mr. Wightman and Mr. Malone,
it is said, do not receive salaries from the auxiliary firm, and other
officers are paid nominal sums awaiting the accumulation of a surplus
adequate to compensate all for services rendered.
At the time of the examination the company had received approxi-
mately $175,000, and had $13,000 in bank in addition to the deposit
of $100,000 with the Superintendent. The expenses for the year be-
ginning with its incorporation had amounted to about $62,000, of
which $12,000 was for rent and from $20,000 to $25,000 in the
equipment of the home office. The remainder has been disbursed
in home office and incidental expenses and in advertising. The home
office expenses are estimated to be $800 a week. There are about
twenty employees. Medical examination is arranged . for with ac-
credited physicians in the communities in which the applicants reside,
and the business is transacted by mail.
The ordinary policies, life, limited payment life and endowment
are written. All policies are subject to declarations of dividends be-
ginning with the fifth year, and dividends are accumulated until
that time. Thereafter they are annually available. It is expected
that there will be a diminution of lapses through the decreased oppor-
tunities for misrepresentation, personal pressure by agents and re-
bates. Members are given the option at any time of making premium
payments covering three months, six months or one year, in advance.
Special effort has been made to simplify and clarify the forms of
policies.
This completes the list of the existing level premium companies
chartered by this State, with the exception of the Metropolitan Life
Insurance Company, which will be considered in connection with the
Prudential Insurance Company of America, a New Jersey corpora-
tion, both being engaged chiefly in what is known as "Industrial
Insurance."
208 Legislative Insurance Investigation.
To illustrate what is possible under the existing laws relating to
assessment companies, the committee investigated the case of the
bmpIee life iisrsuEAisrcE company.
This company was organized in 1881 as an assessment company,
under the name of the Home Benefit Society. In 1894 its name
was changed to the Empire Life Insurance Company. It has out-
standing about 2,900 policies representing about $5,000,000 of insur-
ance. Its new insurance in 1904 amounted to about $400,000.
According to its annual statement of December 31, 1904, its total
income for that year was $78,335 and its disbursements were $79,279.
Its admitted assets were $10,083 and its liabilities amounted to
$45,750.
When its secretary testified, on December 18, 1905, its property
consisted of $5,000 of water bonds of Few York City, about $700
or $800 deposited in the ISTassau Bank of New York, a few hundred
dollars cash on hand, and an account with the banking house of
Edgar Tripp & Son, of Trinidad. The Trinidad account originated
in the transfer of the business from another company in 1894, on
which premiums are collected in Trinidad and remitted from time to
time. The outstanding liabilities were said to amount to about $50,-
000, of which probably two-thirds were uncontested claims.
The company's staff consisted of a vice-president (the office of
president being vacant for a time), serving without salary, a secretary
receiving $2,500 a year, a treasurer at $2,000 a year, two clerks, a
bookkeeper, a cashier and a stenographer. A reserve or emergency
fund, equal to the proceeds of one death or disability assessment, or
in this case, about $6,000, was sufficient to comply with the law. It
has issued misleading circulars containing deceptive references to
cash surrender values and reserve funds. One circular contained the
following :
"Eeserve or emergency fund. Dividends after five years.
20;^ of the amount received from mortuary payments may be
invested or deposited foi ^the benefit of the contributor, from
which reserve or emergency fund there may be a dividend on the
5th and on each year thereafter estimated to equal one-half the
mortuary payments."
It seems that these reservations from the mortuary payments have
not been made ?ince about 1891. Another circular recently issued
stated:
Report of the Committee. 209
"It provides safe insurance at the lowest cost consistent with .
the greatest security upon a purely mutual plan. It is managed
and controlled by its members or their duly authorized repre-
sentatives. It furnishes life insurance at cost with a sufficient
reserve fund to guarantee the payment of its claims."
It had no reserve fund whatever apart from the slender assets
which have been mentioned, and its sole resource for the payment of
its claims were the assessments upon its membership. It had been
debarred from doing business in several States, and at the time of
the examination was transacting about 75 per cent, of its business in,
New York and the remainder in Pennsylvania and West Virginia.
The company has since passed into the hands of a receiver.
METEOPOLITAF LIFE IFSUEANCE COMPANY.
This company was incorporated in 1866 under the General Act of
1853, with the name of the "ItSTational Travelers' Insurance Com-
pany." By Chapter 49 of the Laws of 1868 its name was changed to
the "Metropolitan Life Insurance Company." Originally it had a
capital stock of $2000,000, divided into 4 000 shares of $50 each. It
now has a capital stock of $3,000,000, divided into 80,000 shares of
$25 each. Of this $500,000 was paid in cash and $1,500,000 was paid
from profits.
Originally the net surplus after allowing the stockholders a semi-
annual dividend of 3^^ per cent, was to be ascertained and credited
to them, but it was to remain with the company as a guaranty fund
until it should amount to $800,000, after which all net earnings
were to be annually divided among the stockholders. In 1868 (Chap-
ter 49) it was provided that participating policy holders who had
been insured for at least three years should be credited vi^ith nine-
tenths of the profits annually ascertained and that the stockholders
should be paid the remaining one-tenth. This was amended in 1874
(Chapter 87) so as to giv^e credit to the participating policy holders
of the described class for all the annual profits over 7 per cent, divi-
dend on the stock. Chapter 437 of the Laws of 1893 classified the
business of the company into two departments, the accounts of which
were to be kept separate and distinct, to be known as the " Ordinary
Department" and the "Industrial Department." The act provides
that the net surjjlus derived from the business of the Ordinary De-
partment, aftes providing for its liabilities, is to be credited annually
to the participating policy holders of that department, and that the
210 Legislative Insurance Investigation.
net surplus derived from the Industrial Department, after providing
for its liabilities and interest upon the capital stock, is to be added
to the capital stock as additional security to the policy holders. The
company was authorized to increase its stock to $3,000,000, the in-
crease to be paid in cash or by the application of surplus from the
industrial business, and it was provided that no greater cash dividend
should be paid upon the capital than 7 per cent, a year. Dividends
have been paid at that rate amounting to 38 per cent, upon the
original investment of $500,000.
The greater part of the business of the company is transacted upon
the " industrial " or weekly payment basis. In 1885 it had outstand-
ing $91,234,353 of industrial and $5,063,985 of ordinary insurance;
its annual premium income was $3,414,524 and its surplus amounted
to $139,651. In 1904 its industrial insurance amounted to $1,127,-
889,329, its ordinary insurance to $342,535,052. Its annual premium
income was $50,808,924 and its surplus, including capital stock, was
$14,835,741. Of the present surplus over $10,000,000 was accumu-
lated between 1895 and 1905, about $6,000,000 between 1900 and 1905
and over $4,000,000 in 1904.
Until 1868 stockholders alone were entitled to vote. In that year
(Chapter 49) it was provided that policy holders insured for a year
before the election, either for life or by an endowment policy upon
which the annual premium should not be less than $100, and those
entitled to annuities of not less than this amount should have one vote
in person, but not by proxy, unless the same should be recorded in a
book kept by the company three months prior to the election. This
privilege. It seems, was not availed of prior to 1902, when the pro-
vision for the recording of policy holders' proxies was repealed (Laws
of 1903, Chapter 493), and it was provided that the board of directors
might further extend but should not curtail the right of voting at elec-
tions for members of the board to any class or classes of policy holders,
under such regulations as they might prescribe upon obtaining the
approval of the Superintendent of Insurance. Soon after this amend-
ment the directors by resolution gave every policy holder, regardless
of the amount of his premium, whose policy has been in force for a
year before any annual election, the right to vote provided that not
more than twenty days and not less than ten days before the election
he should file with the secretary a "written notice of intention to so
vote," and " if by proxy a copy thereof." Since this change a con-
siderable number of policy holders have voted, their proxies running
to Mr. John E. liegeman, the president of the company. At the last
election 115,030 votes were cast, 76,800 by stockholders and 39,930 bv
Report of the Committee. 211
policy holders under Mr. Hegeman's proxies. These run for ten years
unless revoked.
The company has not been examined by the Department of Insur-
ance since 1900. Its statement of December 31, 1904, shows the fol-
lowing assets and liabilities:
Assets:
Book value of real estate , . $16,806,933 86
Mortgage loans on real estate 33,094,145 00
Loans on poUcies 2,202,635 37
Pr<Anium notes on policies in force 687,014 26
Book value of bonds and stocks owned 63,057,308 19
Cash in office and in banks 7,323,372 74
Agents' balances 28,783 02
Interest and rent due or accrued 710,471 56
Market value of bonds and stocks over book value. . . 1,213,509 93
Net uncollected and deferred premiums 3,246,081 13
Gross assets $128,370,254 06
Assets not admitted:
Agents' balances $28,783 03
Premium notes or loans in excess of net
value of policies 247,155 80
275,938 82
Total admitted assets $128,094,315 34
Liabilities:
Net reserve $111,129,649 00
Present value of unmatured supplementary contracts. 40,864 00
Liability on certain canceled policies 31,253 00
Policy claims 393,083 88
Premiums paid in advance 137,904 82
Salaries, rent, commissions and other accounts due or
accrued 184,571 07
Dividends or other profits due policy holders 74,324 41
Agents' cash deposits 196,636 07
Special reserve 1,180,289 00
Capital stock 3,000,000 00
Unassigned funds (surplus) 13,835,740 99
Total $138,094,315 24
212 Legislative Insurance Investigation.
Of the book value of real estate $16,806,933.86, the home office
building, including annex, was carried at $13,261,101.27. "This was
about $1,200,000 less than the total cost. Construction is still in
progress and according to the company's statement as of ISTovember 1,
1905, the net income was about 3.2 per cent, of the book value. It
is estimated that the net return on the investments when the spaces
now vacant are occupied will be about 3.8 per cent. Of $658,778 gross
income $395,099 was charged against the company as the rental value
of the space it occupied. The company also owns office buildings in
Washington, Chicago, Louisville, Baltimore, St. Louis, Cleveland,
Burlington, Vt., and at Ottawa and^ Quebec. These buildings are
relatively of small value, the most expensive being the one in Chicago
carried at $51,636.69. Outside of this office building the company had
on December 31, 1904, properties in Few York city at a book value
over incumbrances of upward of $3,000,000. The practice of dispos-
ing of properties acquired on foreclosure through exchange for other
properties, which in turn may be the subject of trade, involving not
only dealings more or less speculative and the payment of repeated
commissions, but also the continuance of investments in real estate
not needed for the purposes of the company, has been a conspicuous
feature of its transactions.
In connection with mortgage loans it may be noted that borrowers
are required to place the fire insurance upon the mortgaged property
with the firm of Dutcher & Edmister, insurance brokers. It is said
that this concentration of the business in the hands of a single firm
has been foimd important in insuring projper supervision and in safe-
guarding the interests of the company. The arrangement is doubtless
of large advantage to the firm, the senior member of which is Silas B.
Dutcher, one of the directors and a member of the finance committee
of the company.
The investments of the company, in securities have been mainly in
charge of President Hegeman, subject to the approval of the finance
committee composed of himself, Thomas L. James, chairman, and
Messrs. Dutcher and Joseph P. Knapp. Most of the purchases and
sales of securities have been made through the firm of Vermilye & Co.
and the firm of William A. Eead & Co., formed by Mr. Eead on his
retirement from the former firm in 1905. The relations between the
insurance company and Vermilye & Co. were established twenty or
more years ago. It appears that out of a total of about $93,000,000
of securities (par value) purchased by the company during the past
ten years, about $87,000,000 were brought from or through these firms.
Repori vf llic Committee, 213
Out of a total of about $26,000,000 of sales made by the company
during the same period, about $24,000,000 were made through these
firms. The company has taken part in the underwriting of numer-
ous syndicates in which Mr. Hegeman has also participated. Many
of these syndicates have been under the management of Vermilye &
Co. The company has not only been a subscriber but it has bought
bonds largely from the syndicate managers and in this way contributed
to Mr. Hegeman's profits. He figures the total amount of his profits
from these transactions at $105,951.74 and his net profits, after de-
ducting a loss arising on one syndicate, at $64,601.42. It appears that
about June, 1905, in view of the discussion that had arisen with refer-
ence to the transactions of officers of the Equitable Society, Mr.
Hegeman paid over to the company $16,175.33, with interest at 6
per cent., an amount calculated by his bookkeeper to be his share of
syndicate profits derived from purchases made by the Metropolitan
Company. The next month, in answer to the following question ad-
dressed to it by the insurance commissioners of Tennessee and Ken-
tucky, "Does any ofiicer of your company at present receive, or has
any ofiBcer in the past received any personal benefit from the purchase
or sale of securities by the company ?" the company said : " Neither
from any past or present purchases or sales of securities by the com-
pany has any oflBcer any benefit personally. The company has re-
ceived every such benefit and all of it." Among the securities recently
purchased by the company were 3,333 shares of the , stock of the
Lake Shore and Michigan Southern Eailway Company, ^hese were
bought on February 7, 1905, for $350 a share from G. P. Butler &
Brother. Subsequently on February 9, 1905, 50 shares, and on March
1,146 shares were purchased from Vermilye & Co. at 300. On April
12, 200 shares were purchased from William A. Eead & Co. at 315,
and on May 1, 100 shares were bought from the same firm at 310.
In justification of the price paid in the first transaction it is explained
that the block was a large one and that the stock could not be acquired
on the market save in moderate quantities at varying prices. It appears
that the 3,333 shares had originally belonged, with other shares of
the same stock, to Vermilye & Co. and in anticipation of dissolution
had been taken by Mr. Eead's partners on a division in specie of the
firm's holdings. On Mr. Eead's recommendation the finance com-
mittee of the Metropolitan authorized him to purchase 3,333 shares of
the stock at a price not exceeding $350, and this purchase ha effected
at $350 from. G. P. Butler & Brother immediately upon their pur-
chase of the same from Mr. Eead's partners at $340, Mr. Eead re-
214 Legislative Insurance Investigation.
ceiving one-half of the Butlers' profits at his eommissioii. He did not
charge the Metropolitan any commission, and it seems that the financ:e
committee understood that he was to receive a commission, but did
not know its amount or the circumstances of the transaction.
Mr. Hegeman for many years has had a personal account with
Vermilye & Co., and since April, 1905, with William A. Eead & Co.
He explains that this account represented not only his own matters,
but those which were intrusted to him by other persons who fro]n
time to time placed moneys in his charge. His account was a more
or less speculative one, embracing numerous transactions of purchase
and sale of securities. In view of the close relations which Mr.
Hegeman sustained to the firm and the large business transacted be-
tween the firm and the Metropolitan Company, Mr. Hegeman's ac-
count was carried as a special favor with an interest charge of 1^
pey cent. For many years prior to 1903 this charge regularly ap-
peared in the account, but in that year a change was made by which
the account was charged with interest at the rate of 4% per cent, and
he received a rebate of 3 per cent. This was for the purpose of con-
cealing from the clerks of the banking firm the rate of interest actually
allowed and of preventing the arrangement from coming to the knowl-
edge of other customers who were paying higher rates. In
making the adjustments the firm gave checks for amounts equivalent
to the interest rebates to one of its members, who gave his checks for
like amounts to Mr. Hegeman. The amount of lie rebates thus re-
ceived were as follows:
On quarterly account to June 30, 1902 $4,917" 44
On quarterly account to Sept. 30, 1902 ^ 6,370 44
On quarterly account to Dec. 31st, 1903 5,439 56
On quarterly account to Mar. 30th, 1903 6,139 95
On quarterly account to June 30th, 1903 6,801 30
On quarterly account to Sept. 30th, 1903 6,903 20
On quarterly account to Dec. 31st, 1903 5,763 81
On quarterly account to Mar. 31st, 1904 5,534 00
On quarterly account to June 30th, 1904 5,763 91
On quarterly account to Sept. 30th, 1904 6,133 30
On quarterly account to Dec. 31st, 1904 5 682 14
On quarterly account to Mar. 31st, 1905. 5 155 79
$69,584 74
Report of the Committee.
21S
The accouiit was taken over by William A. Eead & Co. on April 1,
1905, and on June 30, 1905, Mr. Hegeman was charged 4 per cent,
interest and subsequently credited for rebate of interest $3,381.38, re-
ducing the actual interest to 31/^ per cent.
The Metropolitan has considerable investments in stock and among
them the following interests in banks and trust companies (as re-
ported to the Committee under date of September 1, 1905) :
Par Value.
Cost and Book
Value.
National Shoe and Leather Bank $632, 700 00 $1, 159, 044 22
Metropolitan Bank 379, 000 00 267, 869 42
Central Trust Company 14, 000 00 367, 869 42
Metropolitan Trust Company 148, 100 00 854, 227 85
United States Trust Company 7, 300 00 76, 725 00
International Banking Corporation 52,200 00 71,823 09
Hamilton Trust Company, Brooklyn 100,000 00 211,425 00
Franklin Trust Company, Brooklyn 50,000 00 146.055 50
People's Trust Company, Brooklyn 2,000 00 5,015 00
Federal Trust Company, Newark 60,800 00 119,248 25
Howard National Bank, Burlington, Vt..., 20,700 00 29,497 00
State Savings Bank, Detroit, Mich 100, 000 00 250, 000 00
National Bank of Commerce, Kansas City. . 185, 000 00 589, 350 00
It controls the National Shoe and Leather Bank and the Metro-
politan Bank. The latter was recently organized by those interested
in the company, with a view of having a bank in its ofBce building,
which was considered a desirable location for such an institution.
The bank has $1,000,000 capital and $250,000 surplus. President
Hegeman holds 500 shares, Vice-President Piske 300 shares and other
officers a small amount of its stock. Heads of departments and clerks
have been interested in it. It has proved successful, earning about 1
per cent, a month. The bank balances of the company, the extent of
which is largely in the discretion of the President, were as follows
during the first nine months of 1905:
216
Legislative Insurance Investigation.
1905.
National Shoe
& Leather Metropolitan Hamilton Trust Co. of
Bank. Trust Co. Trust Co. America.
■ — • ■- 1
$1,441,558 76 $415,859 19 $677,527 44 $158,048 19
1,261,051 35 261,313 74 522,981 98 158,048 19
1,866,15163 215,926 72 477,61150 158,048 19
2,552,065 94 409,682 61 499,797 31 158,048 19
1,682,620 72 417,682 61 513,451 15 22,406 96
2,027,345 87 394,703 42 688,365 38
1,126,915 38 220,223 84 757,567 31
1,458,078 51 486,890 50 646,456 19
1, 726, 353 29 448, 321 67 459, 693 09
January .
February .
March . . .
April . . . .
May
June
July
August . . .
September
N. Y. National
1905 Exchange Lincoln Trust Federal Trust International
Bank. Co. Co. Banking Co.
January ..
Febiuary .
March . . .
April ....
May
June
July
August . . .
September
$15, 000 00 $410, 621 99 $459, 929 79 $205, 680 00
15, 000 00 396, 985 62 344, 020 70
15,000 00 410,714 98 310,032 33
15,000 00 413,132 67 312,698 30
15, 000 00 313, 132 67 262, 698 30
15,000 00 301,677 44 262,779 12
6, 000 00 191, 296 73 264,799 56
165, 297 69 264, 799 56
165,34195 264,879 83
-1
1905.
Maiden Lane
Franklin National
Trust Co. Bank.
Nat'l Bank of
Commerce,
Kansas City.
January $152, 625 02
February 152,625 02
March 152, 667 41
April 153,769 52
May 103,769 52
.June , 103,804 73
July 104,685 08
August 104,685 08
September 104,717 15
$13,636 36
100,000 00 $231,481 48
100,000 00 250,315 06
250, 852 86
251,327 71
251,898 28
252,397 13
252,863 11
Report of the Committee. 217
Vermilye & Wm. A. Read Metropolitan
1905. Co. &Co. Bank.
January $115, 676 16
Eebmary ,115, 676 16
March 115,706 84
April $500, 000 00
May 500, 000 00 $595, 748 88
June 500,142 62 578,496 28
July 303, 708 33 919, 705 22
August 3, 708 33 1, 205. 998 97
September 3, 743 01 1, 448, 016 33
Favors have been shown to some of the institutions in permitting
considerable balances to remain without interest. In the National
Shoe and Leather Bank $100,000 pays no interest. Additional sums
bear interest at the rate of .2 per cent. The Hamilton Trust Com-
pany, of which Mr. Dutcher is President, has had $100,000 on deposit
from December 30, 1900, to April 1, 1905, without interest. On other
deposits it pays 2 per cent. The Metropolitan Bank had $600,000
free of interest from May 1, 1905, when it began business, to August
36; it paid 2j4 per cent, interest on $150,000 from August 8 to 26;
on other balances it pays 2 per cent. The Metropolitan Trust Com-
pany pays 2^ per cent. The Trust Company of America, the Fed-
eral Trust Company and the Franklin Trust Company pay 3 per cent.
The New York ISTational Exchange Bank pays 2 per cent. The Lin-
coln Trust Company paid 3 per cent, to November 1, 1904, and subse-
quently 2^ per cent. Vermilye & Co. paid 4% per cent, on $250,000
from August 6 to December 31, 1902; on other deposits 3 per cent,
to September 1, 1903, and 2 per cent, from that date to March 31,
1905. Wm. A. Read & Co. pay 3 per cent.
It has been the practice of the company to conceal its collateral
loans. In order to avoid setting them forth in its annual statements
to the Insurance Department, it has been its custom on the last day
of the year to transfer the existing loans to Vermilye & Co. and to
repurchase them on January 3 of the following year. It is said that
this was done for the purpose of discouraging applications for loans
from Wall street. Loans to persons officially or otherwise intimately
conected with the company have been carried for less than the market
rates of interest.
Among the loans on collateral during thtj last ten years, as stated by
the company under date of September 13, 1905, appear the following:
>18
Legislative Insurance Investigation.
Date.
Amount. Time. Rate.
Paid.
Silas B. Dutcher.
1897—
January 2 . . ., $23,000
February 4... 7,000
Jime 7 8,000
July 21 3,000
September J3. 5,000
1898—
January 3 46,000
July 8 5,000
September 20. 4,000
October 29... 10,000
1899—
January 3 ... 54,000
January 27 .. 4,000
June 15 5,000
1900—
January 3 ... 50,000
July 31 5,000
November 19. 6,000
November 27. 2,500
1901—
January 2 . . . 73,500
April 16 7,500
1902—
January 2 . . . 78,500
January 20 .. 20,000
June 18 25,000
November 10. 3,000
1903—
January 2 ... 90,500
March 23 10,000
1904^
January 2 . . . 86,500
January 21 .. 3,000
August 11 ... 37,500
1905—
January 2 ... 86,500
June 20 500
William A. Read.
1901—
May 20 . . . . 200,000
1902—
March 27 .... 200,000
1903—
January 2 ... 100,000
December 9... 100,000
1904^
June 1 100,000
William A. Read.
1905-
March 31 1,000,000
Demand.
it
St
ft
- 2
2
2
91
per ct.
r(
. December 31. —
tt
It
tt'
2
(C
It
ee
ts
SI
(t
2
2
2
2
tt
tt
tt
December 13, $11,000.
'December 31, $54,000.
€t
2
2
It
tt
■May 17, $13,000.
J December 29, $50,000.
December 31.
ti
tt
tt \
1 \
Demand.
t
tt
2
2
2
2
per ct.
It
tt
tt
ft
tt
2
2
tt
tt
March 19, $2,500.
December 31, $78,500.
tt
tt
tt
tt
tt
tt
2
2
2
2
2
2
tt
tt
tt
tt
tt
tt
December 30.
February 6.
June 5, $13,000.
October 4, $1,000.
November 7, $2,000.
December 30, $12,000.
January 20, $4,000.
March 2:6. $1,500.
April 6, $8,500.
December 31, $86,500.
tt
tt
ts'
2
2
2-
tt
tt
tt
December 30.
January 19.
August 11.
tt
2
2
tt
tt
«
n
(t
December 31.
«
2
tt
December 30.
H
«
2
n
tt
it
January 13.
December 31.
IJ " July 1.
June 1, $400,000.
July 27, $50,000.
September 12, $50,000.
September 13, |50,000.
Report of the Committee.
219
Date.
Amount.
Time.
Rate.
Paid.
Vermilye & Co.
1902—
>:. •'
August
250,000
«
4J "
August 27.
September 11.
500,000
tt
5
October 20.
September 24.
300,000
t«
October 20
1903—
August 12....
500,000
€C
5J per ct.
December 31.
September 29.
500,000
K
5i "
December 31,
November 10.
500,000
250,000
250,000
250,000
200,000
200,000
((
et
et
et
(f
December 1.5
November 20.
November 25.
November 30.
December 1...
December 8...
1904—
January 4 . . .
1,000,000
te
5iper ct..
January 29, $500,000.
February 15, $500,000
-
June 1
650,000
4i "
December 30.
1905—
January 2 . . .
650,000
cc
44 "
March 31. ,
John A. McCall.
1903—
January 22 . .
190^
50,000
et
n "
December 31.
January 2 ...
50,000
tt
14 "
December 30,
March 17....
25,000
ft
14 "
December 30.
•
14 per ct.
1905—
to July 1.
c-
January 2 ...
75,000
i(
■ 24 per ct.
After....
JohnR.Hegeman.
■ t -
1903—
'
July 28
30,000
tt
14 per ct. .
December 31,
August 5 . . . .
10,000
tt
14 "
December 31.
1904—
January 2 . . .
40,000
February 24..
10,000
(September 15, $30,000.
1 December 31, $52,000.
March 7
10,000
IJ "
September 7 . .
22,000 J
The low rates of interest mentioned were special favors in recog-
nition, it is said, of services rendered.
The expenses of the Metropolitan are greater in amount than those
of any other company. From 1900 the total expenses have been as
follows :
1900 $12,874,563 00
1901 14,667,436 00
1903 16,134,945 00
1903 17,601,163 00
1904 19,874,752 00
220 Legislative Insurance Investigation.
uiiiie the total expenses in the year 1904 were in the neighbor-
hood of 35 per cent, of 'the' total premium income in the EquitaMe
Mutual and New York Life, they were about 39 per cent, of the pre-
mium income, in the case of the Metropolitan. Although the three
companies named have large accumulations of deferred dividends
their total expenses were about 49 per cent, of the total amount paid
policy holders, and in the Metropolitan the expenses were 119 per
cent, of the amount paid policy holders, due to the increased expense
of conducting a weekly payment business.
From 1877 to 1891, the then President Joseph F. Enapp and Mr.
Hegeman, then vice-president, received respectively in addition to a
salary of $6,000 a year commissions based on the increase of the
industrial business. When Mr. Hegeman succeeded Mr. Knapp as
president the salary was discontinued and the entire compensation
was placed on a commission basis. This continued until 1896. Cora-
missions were paid to the vice-president until 1893 and to the second
vice-president from 1893 to 1896. The following are the total
amounts paid to the president an,d vice-presidents for salaries and
commissions :
Year. ' President Vice-President
Joseph F. Knapp. John B. Hegeman.
1877 ....
$8,000 00
15,000 00
10,000 00
15,000 00
20,000 00
28, 404 60
73, 588 08
39,271 00
50,000 00
63,945 00
51, 967 46
108,561 68
73,475 54
69,937 97
112, 362 83
57,517 34
$7,400 00
1878
8, 575 00
1879
9, 000 00
1880
11, 000 00
1881 .."...
1882 ....
10, 000 00
17,729 78
1883
39,766 56
1884
1885
22,635 00
39,500 00
1886 . . .
33, 973 19
1887 ....
32,983-73
1888
39, 780 84
1889
42, 237 72
1890
55, 4^S 98
1891 ....
61. 818 64
1892, paid estate for balance of commis-
sions to date of death
Report of the Committer, 221
Second
President Vice-President Vice-President
John R. Hegeman. Haley Fiske. George H. Gaston.
1891 (3 mos.) *4, 962 71
1892 $87, 000 00 24, 883 71 $11, 595 00
1893 72,000 00 33,109 77 14,543 82
1894 89,000 00 32,750 00 21,244 37
1895 93, 474 68 32, 750 00 19, 860 00
1S96 50, 000 00 32, 750 00 21, 027 00
In 1896, when the payment of commissions was discontinued the
salary of President Hegeman was fixed at $50,000 a year. It was in-
creased (including the allowance of hqnuses in view of the prosperous
business of the company) in 1899 to $60,000, in 1900 to $68,750, in
1901 to $81,250, iv. 1902 to $90,000 and in 1905 to $100,000. Mr.
Hegeman testified that the last increase was made on the recommenda-
tion of the finance committee in recognition of his long services to
the company; that he had not drawn the increase and did not intend
to draw it.
In 1894 the compensation of Vice-President Haley Fiske was fixed
at $32,750 a year. In 1899 it was increased to $37^662.50, in 1900 to
$-19,125, in 1902 to $61,406.25 and in 1905 to $75,000.
The salary of Second Vice-President George H. Gaston was fixed
at $20,000 in 1897, $24,000 in 1899, $25,000 in 1900, $30,000 in
1903 and $37,500 in 1905.
George B. Woodward became secretary of the company in 1895
at a salary of $10,000, which was increased in 1897 to $12,0ei'0 and
in 1900 to $14,000. In 1902 he was made third vice-president at a
salary of $16,000, and this was raised in 1903 to $1^,000 and in 1904
to $18,000. Frank 0. Ayres became fourth vice-president in 1903.
His salary in 1904 was $13,000 and in 1905 $16,250. The salary of
James S. Eoberts, the secretary, is $8,000, that of Assistant Secretary
John R. Hegeman, Jr., $3,100, and Assistant Secretary Frederick F.
Taylor $6,000. The Actuary, James M. Craig, was paid $5,580 in
1893, and by successive increases his salary rose to $13,000 in 1898;
it was further increased to $15,000 in 1900, $17,000 in 1902, $18,000
in 1903 and $19,000 in 1904. The cashier, J. J. Thompson, was
paid $10,000 in 1893; since 1901 he has received $14,000. The medi-
cal director, Thomas H. Willard, who received $7,000 in 1897, is
now paid $13,000. Another medical director, Augustus S. Knight,
222 Legislative Insurance Investigation.
has a salary of $11,500. The assistand medical director, E. M.
Holden, is paid $6,000. Frederick H. Ecker, who for some years has
been in charge of the real estate, was made comptroller in 1905 at a
salary of $15,000.
The fees of directors, exclusive of officers, axe $35 each a meeting,
the aggregate amount being divided among those present. Finance
committee men, not including officers, receive it seems $10 a meet-
ing each, unless they are called to cancel or count securities, when the
fee is $35.
The amounts charged to legal expenses since 1900 have been as
follows :
1900 $54,699 10
1901 54,386 05
1903 63,416 33
1903 109,474 45
1904 81,587 91
' ' ' ■ ' -
The payments of 1904 are thus classified:
General counsel fees $36,700 00
Legal services and disbursements in connection with
real estate, tax matters and litigation. 45,833 98
Fees of legislative counsel 5,160 00
Miscellaneous disbursements 1,061 35
Items erroneously debited to legal expenses 3,843 58
Total . . . .' $81,587 91
The last item of $3,843.58 is said to consist of various amounts
expended for legitimate purposes which were charged to legal ex-
penses through errors of bookkeeping.
The company has disbursed considerable amounts in connection
with legislation and legislative inquiries. About $40,000 was .ex-
pended in 1895 in connection with the investigation in Massachu-
setts of the subject of child insurance, the expense being incurred, it
is said, in the payment of counsel and in procuring the publication
of the testimony and arguments on behalf of the company. Counsel
have been retained in various Jurisdictions to keep the company
posted with regard to matters of legislation and to render services.
The Prudential Insurance Company and the John Hancoch Mutual
Life Insurance Company have contributed to these expenses, so far
Report of the Committee. 223
as they have been incurred outside the State of New York. Vice-
president Fiske has had charge of these matters and at the end of the
year makes up a statement of the total amount of legal expenses for
purposes in which the three companies are interested, and it is divided
between them, the Metropolitan bearing two-fifths, the John Hancock
one-fifth. Andrew Hamilton has been employed by the company since
1893. The following is given as the total amounts paid him by the
Metropolitan :
224
Legislative Insurance' Investigation,
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Report of the Committee. 22i
William H. Buckley has on occasion been paid small amounts,
about $500, to look after matters during Mr. Hamilton's absence. The
payments made by the Metropolitan in connection with legislative
matters outside of the payments to Hamilton have been as follows :
1896 $3,287 56
1897 2,817 08
1898 7,302 81
1899 4,298 72
1900 3,994 60
1901 4,570 06
1902 4,892 29
1903 3,688 85
1904 4,160 00
1905 9,277 62
Total $48,289 59
The company has made only two contributions, it is said, for po-
litical purposes. These were made in 1896, one of $1,000 to the
Palmer-Buckner campaign fund and one of $7,500 to the Republican
National Committee.
The enormous expenses of the Metropolitan are not, however, to be
accounted for by reference to matters common to the companies en-
gaged in writing insurance upon the ordinary basis. They are
mainly attributable to the industrial department. The following com-
parisons of the amounts paid oflBcers and home office employees is sig-
nificant :
Officers and
Home Office Mutual. New York Life. Equitable. Metropolitan.
Employees,
1904.
$1,022,00139 $900,475 90 $1,177,50112 $1,940,044 05
-J
Liberal as are the salaries of the officers of the Metropolitan it will
be observed that their aggregate forms but a small part of the above
total. The officers, numbering sixteen, received in 1904 $303,105.94
and the clerks $1,636,938.11. It cannot be said that the clerks were
226 Legislative Insurance Investigation.
overpaid, for, numbering 2,112, their average eompensaiton was about
$775 a year. For this large clerical expense it is said the industrial
business is responsible. The company makes the following distri-
bution of its home office salaries' account for 1904:
Industrial salaries $1,440,616 32
Ordinary salaries 408,506 22
Pacific Coast salaries 65,534 78
Industrial Department, overtime 5,073 97
Ordinary Department, overtime 19,283 76
' Ordinary Department, bonuses 1,029 00
Total $1,940,044 05
The following is a classification of the expenses of that year based
upon the company's statement of the amount incurred in the Indus-
trial Department:
Other
Industrial. Departmentsi. Total.
Commissions, salaries and al-
lowances for Superintendents,
Assistant Superintendents and
Agents $10,841,582 96
Agency supervision 558,301 05
Medical fees 546,267 21
Home office salaries 1,511,225 07
Eents 604,589 03
Stationery, printing, advertis-
ing, supplies, etc 502,430 57
Legal expenses 59,779 03
Furniture, etc 107,402 40
Insurance taxes, etc 553,390 56
Keal estate taxes 153,898 79
Kepairs and expenses to real es-
tate 287,482 01
Miscellaneous expenses 218,720 23
Agents' surety bonds 39,344 54
Dividends to stockholders 140,000 00
Charged oflf real estate account. 250,000 00
$2,238,180
62
50,591
44
309,706
68
428,818
98
60,366
37
133,391
97
21,808
88
16,847
28
171,246
56
3,047
00
62,798
U
$16,374,413 45 $3,496,803 89 $19,871,217 34
Report of the Committee. 227
The insTirance in force on December 31, 1904, was made up as follo-ws :
Ordinary Department-
Ordinary life $154,278,942 00
Ordinary endowment .... 50,351,444 00
Ordinary term 13,289,776 00
Ordinary paid up policy. . 362,126 00
Ordinary paid up endow- *
ment 53,288 00
Ordinary paid up term.... 183,464 00
$218,519,040 00
Special Class —
Life $2,706,704 00
Endowment 3,914,225 00
Paid up life 5,126 00
Paid up endowment 4,890 00
Intermediate —
Life $24,944,500 00
Endowment 92,069,000 00
Paid up life 311,675 00
Paid up endowment 59,982 00
6,630,855 GO
117,385,157 00
$342,535,052 00
Industrial Department —
Industrial life $422,401,289 00
Industrial life, 20 payment 264,166 00
Industrial life, people's participafing . . . . 408,903 00
Industrial endowment, infantile 239,187,420 00
Endowment, increasing life endowment.... 348,649,991 00
Endowment, $500 at age 80 12,109,500 00
Endowment, 15-year 213,447 00
Endowment, 20-year young people's 50,767,560 00
Endowment, 20-year adult 1,190,309 00
Endowment, 20-year special 27,251,625' 00
Endowment, 25-year special 262,709 00
Endowment, 30-year special 4,766,116 00
Endowment, 20-year term and endowment. 11,911,300 00
Endowment, 20-year combination 395,250 00
Paid-up term 7,161,393 00
Paid-up life 77,763 00
Paid-up endowment 870,992 00
$1,127,889,229 00
$1,470,424,281 00
Through the use of the branch ofSces necessarily established in con-
nection with the industrial business the company is enabled to transacb
its "Ordinary" business more economically than it could be trans-
acted alone. Nearly all the " Ordinary " business is written by in-
dustrial agents. It is actively prosecuted in connection with the in-
dustrial work in order to obtain better men and to promote their
228 Legislative Insurance Investigation,
■ '■ — '■ i '^^~~~~~~'^ ~
efficiency by giving them an opportunity to increase their income.
Of the $218,519,040 of business of the ordinary class only $6,291,057
is participating. Deferred dividend policies are not written. In the
current rate book it is stated that the rates are " non-participating ;"
that is, no dividends will be paid except on " Guaranteed Dividend
and Optional Life or Endowment" plans. In the last mentioned
policies a definite amount is guaranteed and, of course, taken into con-
sideration as a part of the reserve.
The " Special Class " is composed of risks which are sub-standard
by reason of occupation, history or physical condition. The premiums
are computed on a rate of mortality double that set forth in the
Actuaries' or Combined Experience Table, the result being reached by
placing a lien upon the policy to reduce it to an amount which the
regular premium would purchase on the basis of the double mortality
rate. The policies are participating to the extent of any saving there
may be of mortality or interest, there being no margin for gain in
the loading. While the rate of mortality is uniformly doubled with-
out distinction between groups presenting widely different risks, and
the matter is obviously one of conjecture, it is said that on the whole
the company has come well within its expectation of mortality, the
actual rate being about 71 per cent, of the tabular rate as expressed
in its double table.
The "Intermediate" policies are designed for the better class of
industrial risks. They are issued for $500 and upwards. There is a
medical examination nearly as complete as in the case of an ordinary
application. The rate of mortality is found to be higher than in the
ordinary class and the premiums are higher. On the other hand, the
amount of insurance obtained by a given payment is considerably
more than in the industrial department. Thus in the ordinary class
the annual premium on a whole life policy for $1,000 at age forty is
$27.62. In the "Intermediate" class the whole life premium at age
forty for $500 is $20.01. In the " Industrial " class at the same age
40 cents a week or $20.80 a year will purchase $400 of whole life
insurance. The premiums, as on other policies in the ordinary de-
partment, are payable quarterly, semi-annually or annually. The
rates are stated to be "mutual." After the policy has been in force
five years dividends are payable " annually in cash or (at the written
request of the holder) in addition to the policy as in the judgment of
the officers and directors of the compa7\y the policy shall have earned."
" Industrial " policies are all alike to the extent that they are based
upon weekly payments running from five cents "to sixty cents. The
Report of the Committee. 229
amount of the benefits of the various classes of insurance depends
upon the age at which the policy is written and the amount of the
weekly payment. It will be observed that about nine-tenths of the in-
dustrial insurance outstanding at the end of 1904 consisted of the
" Life," " Increasing Life and Endowment " and " Infantile Endow-
ment" plans.
The "Life" plan for adults is for ages ten and upward. It is
ordinary life insurance with graduated benefits according to the
weekly payment. Thus for a weekly payment of five cents the death
benefit on insurance at age ten is $120, at age twenty $87, at age
forty $50 and at age fifty-nine $33. The whole amount of the benefit
is payable only in case of death after one year from date of policy;
if death occurs within the first six months it is reduced to one-fourth
and if in the second six months to one-half.
The " Increasing Life and Endowment " plan provides for a mini-
mum benefit for the first three years, on a scale adjusted to payments
and the age at time of insurance, and each year thereafter the insur-
ance is increased by an amount equal to ten times the weekly premium.
All the endowment periods expire at age eighty. Thus one insuring
at age twenty-two upon a weekly payment of sixty cents would have
a policy calling for a minimum death benefit during the second and
third years of $876, which would be increased annually thereafter by
the sum of $6, and at the end of the endowment period (fifty-eight
years) the maximum amount of $1,206 would be payable to the in-
sured if then living. At that time, it may be noted, the aggregate
weekly payments would amount to $1,809.60.
The "Infantile Endowment" plan provides for insurance at ages
two to nine, inclusive, with progressive benefits, for a weekly payment
of ten cents. After the insured reaches the ages of twelve there is
annually added $1 to the insurance. The endowment periods vary,
the shortest being forty-seven years in case of a policy taken at age
two and running to sixty-eight years in case of one taken at age
nine. Thus the benefit of an insurance taken at age two for ten cents
a week is $34 if the insured dies within one year, $40 if he dies within
two years and so on until the benefit reaches $240 in eight years. At
the end of the endowment period (forty-seven years) the maximum
amount, $276, would be payable. The premiums paid would then
amount to $244.40. A policy issued at age nine provides for the maxi-
mum benefit of $304 in sixty-eight years and the weekly payments
would amount to $353.60.
It is claimed that these endowment tables, which apparently favor
the earlier ages, are more scientifically constructed than the former
230 Legislative Insurance Investigation.
tables and result in a more equitable adjustment of the insurance.
Manifestly an infinitesimal portion of the insurance written will con-
tinue to the end of the long endowment periods and the schemes pro-
vide in effect for whole life insurance with increases in benefits so ad-
justed as to stimulate business, invite persistence and ensure proSt
to the company. A period is fixed when the liability of the company,
in any event, shall cease, and the transaction can be closed upon its
books.
There are also the adult "Twenty-year Endowment" policies for
ages over nine, and it is said that about 21 per cent, of the business
now taken is of this class. Thus at age twenty-two a payment of
ten cents a week procures an endowment at the end of twenty years of
$80, or at the rate of fifty cents a week an endowment of $400.
The rates for industrial insurance are practically double those
charged in the ordinary department. Thus one insuring at age
twenty-two and paying sixty cents a week, or $31.30 a year, would
have on the "Whole Life " plan a policy for $984, or on the " Increas-
ing Life and Endowment " plan one for the minimum amount of $876
(with increases as above stated), while in the ordinary department a
person insuring at the same age can obtain a non-participating life
policy for $1,000 for an annual premium of $16.55.
The industrial policies, according to their terms, are non-partici-
pating, but for some time cash dividends have been allowed as a " con-
cession " on policies that have no guaranteed additions. This excludes
the endowment plans with their provisions for increases forming part
of the insurance. The dividends are declared at quinquennial periods,
those for 1904 being on policies still in force which were issued durirg
1879, 1884, 1889, 1894 and 1899. The dividend on each policy is the
amount rf ten weekly payments; that is to say, according to the pres-
ent plan of the company one who is making a weekly payment of ten
cents receives every five years a dividend of one dollar. The tota'.
dividends declared by the company in 1904 amounted to $876,798,
and of this $639,803 was distributed upon the industrial policies in
the manner described.
The rate of mortality in the Industrial Department far exceeds that
of the ordinary risks, and the Metropolitan has its own experience
table which is used in the calc^ation of benefits.
A medical " inspection," not an " examination," suffices in the case
of children under ten, and in case of older persons (excluding colored
lives over fifteen years of age and special benefits), where the insur-
ance is under $300. This practically puts all insurance for weekly
Report of the Committee. 2151
payments of five and ten cents on the " inspection " basis. The phy-
sician in such case is paid twenty-five cents and is expected to ascer-
tain whether statements in the application are borne out by appear-
ances. In the company's instructions its purpose is summed up in the
statement that " we desire to insure as large a number of good risks
as is i)ossible and at as small an expense of time, labor and annoyance
to the examiner and examined as may be." For an "examination"
the physician is paid fifty cents and a more detailed report is re-
quired.
The lapse in the Metropolitan is extraordinary. About a billion and
a quarter of insurance went off its books through lapse or termination
without reaching maturity in the five years,. 1900 to 1904, inclusive,
as follows :
Insurance in force at end of 1899 —
Ordinary $111,901,834 00
Industrial 688,629,175 00
$800,531,009 00
Insurance written, 1900 to 1904, inclusive —
Ordinary $503,406,319 00
Industrial 1,477,561,350 00
1,980,967,669 00
$3,781,498,678 00
Insurance in force at end of 1904 —
Ordinary $343,535,052 00
Industrial 1,127,889,229 00
$1,470,424,281 00
Total expirations in five years $1,311,074,397 00
Matured claims 1900 to 1904, inclusive 60,038,884 00
Terminated without maturing, same
period $1,251,035,513 00
Taking first the " Ordinary Department," it is found that 42 per
cent, or more of the policies issued are cancelled during the first
three years. The following is a table of the percentages of cancel-
lations in this department of policies issued during the years 1900 to
1904, inclusive;
232
Legislative Insurance Investigation.
a; M
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Heport of the Committee.
233
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234 Legislative Insurance Investigation.
In the " Industrial Department " the rate of lapse is much greater.
Taking the calendar years it appears that on the average about 34
per cent, of the policies are cancelled in the first year and about 58
per cent, in three years. The company has furnished the following
table :
CoMcellation of Industrial Policies (Calendar Years),
Per
Cent, of Cancelled.
Issue of —
1st Year.
2d Year.
3d Year.
4th Year.
5th Year.
1900
1901
34.34
32.16
18.64
19.83
19.33
19.82
5.37
5.26
5.79
3.03
3.43
2.36
1902
1903
1904
33.90
33.95
35.51
—
The full extent of the lapses, howPYer, is more surely indicated
by reference to policy years, and it would appear that more than one-
third of the policies issued do not survive three months and about
one-half are caiieelled within a year. In 1903 the company took one
week's industrial issue from each month in the year and followed the
issue through a period of twelve months, with the following result:
Per cent.
Eate of lapses in first three months from date of issue 35 . 40
Bate of lapses in first siz months from date of issue 43 . 57
Bate of lapses in first nine months from date of issue 48 . 28
Eate of lapses in first twelve months from date of issue 51 .46
It is said that the lapse ratio is decreasing. In 1898 38 per cent,
lapsed in three months, 60 per cent, in a year.
Eeeurring to calendar years it may be said that at the end of five
years about 36 per cent, of the industrial policies issued are in force,
and these, of course, are in later years decreased by further cancella-
tions. At the end of 1904 there were in force .196 per cent of the
policies issued in 1895, .182 per cent, of those issued in 1890, .1425
per cent, of those issued in 1885 and .061- per cent, of the issue of
1880. There seems to be slight difference between the persistence of
adult and infantile policies, as shown by the following schedule;
Report of the Committee. 235
No. in Force.
No. Issued. Dec. 31, 1904. jRatio.
Issue of 1880:
Infantile 70, 315
Adult 140,527
Total 210, 842
Issue of 1885:
Infantile 117,416
Adult 366,116
ToUl 483,532
Issue of 1890:
Infantile 224, 939
Adult 697 , 604
Total 922, 543
Issue of 1895:
Infantile 526,725
Adult 841, .390
Total 1,368,115 268,144 .1960
4,683
8,172
.0660
.0582
12,855
.0610
18,568
50, 327
.1581
. 1375
68, 895
.1425
44,889
123, 044
.1996
.1764
167, 933
.1820
97, 082
171,062
.1843
.2033
Many who permit their policies to lapse are said to take out new
insurance, and it is claimed that for a period of years the above per-
centages of cancellations give an erroneous impression of the true
experience of the company, but facts showing the extent to which
there may be such new insurance axe not available.
In the "Industrial Department" those who lapse within five years,
that is, nearly two-thirds of all who take industrial insurance, gel
nothing in return for their payments aside from the fact that- their
risks have been carried while the payments continued. The pro-
visions of section 88 of the Insurance Law are waived by the insured.
Those who persist for five years may obtain paid-up policies, that ii-
to say, those who are at least fourteen years of age in case the insur-
ance is for life, and who are at least ten if it be endowment. Illus-
trations of the amounts of paid-up policies are as follows :
On surrender of a policy isstied at age five at a weekly preraiuin
of ten cents calling for insurance of $330, which has been in force
fifteen years, a paid-up policy of $34 will be issued. On the surren-
der of endowment policies the amount of the paid-up policy is in
proportion to the number of years during which premiums have been
52
236 Legislative Insurance Investigation.
paid. Thus if a policy has been issued at age thirty for a weekly
premium of ten cents on the " Increasing Life and Endowment "
plan, and payments have been continued for twenty years, the paid-
up .policy will be for $66.80 or twenty-iiftieths of $167, the maximum
endowment. Where the policy surrendered is a whole life policy the
paid-up policy'is payable only in the event of death during the expec-
tation of life. It is in effect paid-up term insurance, and those who
live beyond their expectation of life are entitled to nothing. Cash
surrender values are not paid in the Industrial Department save in
the ease of twenty-year endowment policies.
According to the gain and loss exhibit for 1904 the results of the
total business of the company for that year were as follows :
Gain from loaning $1,033,105 00
Gain from surrendered and lapsed policies 3,031,925 00
Gain from surplus interest 116,985 00
$4,181,015 00
Loss from mortality 1,560,414 00
$2,620,601 00
Increase in market values 2,611,845 00
Total $5,232,446 00
Prom this it appears that aside from increases in market values
the year would have shown a loss had it not been from the gains on
surrendered and lapsed policies. This gain is from the release of
reserves, and $2,009,424.70 of it belongs to^he Industrial Department.
Of the total amount ($3,031,925) the sum of $1,635,280 was from
policies upon which three years' premiums had not been paid. It may
be noted that while the Metropolitan allowed in surrender values only
26.19 per cent, of the released reserve, the John Hancock Mutualhife
Insurance Company, which has a large inlustrial business amounting
at the end of 1904 to about $230,000,000, out of a total of $350,000,-
000 of insurance, allowed in surrender values 83.83 per cent, of the
released reserves.
It is claimed that there are no accumulations upon industrial poli-
cies warranting the allowance of surrender values in paid-up insurance
or otherwise until after five years. As an illustration the company
Report of the Committee.
23^
presents the following statement with reference to the state of the
accumulations annually upon the industrial issues of 1898, 1899 and
1900, as compared with the reserve liabilities, showing the deficiencies
in the earlier years:
Issue
of 1898.
December 31.
Fund
Accumulated.
Total
Liability.
Deficiency.
Sui^lua.
1898
1899
1900
—$931,827
+54, 909
983, 332
1,859,744
2,856,191
3,568,010
4, 418, 433
$246,920
951,816
1,920,151
2, 632, 738
3,387,211
3,939,974
4,412,440
$1,178,747
896, 907
936, 819
772,994
531, 020
371,964
1901
1902
1903
1904
$5,993
Issue
of 1899.
December 31.
Fund
Accumulated.
Total
Liability.
Deficiency.
Surplus.
1899
1900
1901
1902
1903
1904
. — $1, 115, 223
+38,257
1, 165, 647
2,490,444
3,671,112
4,760,600
$326,095
1,238,041
2,426,071
3,560,452
4, 415, 055
5,108,601
$1,441,318
1,199,784
1, 260, 424
1,070,008
743, 943
348, 001
Issvs
of 1900.
December 31.
Fund
Accumulated.
Total
Liability.
Deficiency.
Surplus.
1900
—$768, 603
+520, 552
2,070,854
3, 493, 461
4,973,218
$360, 630
1,436,253
-.2,897,584
4,069,464
5,040,541
$1,129,233
915,701
826, 730
576, 003
67,323
1901
1902
1903
1904
The company strenuously insists that the lapses in the Industrial
Department are not a source of profit but of loss. It is said that
the average initial cost of new business during the year 1904 in the
238
Legislative Insurance Investigation.
Industrial Department was $2.07 per policy. Of that year's issues
there was 575,392 policies which lapsed, and the total amount of
premiums received thereon amounted to $417,735. The average
premium per canceled policy was 12.004 cents, and the average time
for which premiums were paid was 6.05 weeks, giving an average of
72.6 cents paid for policy. On this hasis it is said the actual loss to
the company averaged $1,344 per canceled policy, or a total of $773,-
326.84. Adding to this the amount which it is claimed repays the
cost of carrying the insurance during the time it is in force, esti-
mated at 51.6 cents, the total loss is figured at $1.86 per policy, or
$1,070,229 in all.
But these losses from lapses are in time made good from the prem-
iums of persistent policy holders. The premiums are suiBciently hig'i
to permit this large waste in the acquisition of non-persistent businesu
and in the end the company accumulates a surplus with reference to
the issues of each year. While the large number of policy holders
who lapse within five yearg fail to get any pecuniary return, on
the other hand the company loses money through early lapsing in the
sense that otherwise its ultimate profits would be far greater.
With reference to child insurance it is said that the subject has
been under investigation for many years and that the charge that
children are killed, neglected or injured for the purpose of recovering
insurance money is unfounded. The number of Metropolitan policies
in force is stated to follow closely the population according to the
census of 1900 in the relative proportions at each age. The following
table has been submitted :
Percentage
of
Population.
Percentage of
Policies in
Force, 1904.
1 to 4 inclusive
9 57
1 to 9 inclusive
21 28
1 to 14 inclusive : .
1 to 19 inclusive
31.94
41 91
5 to 17 inclusive
20 to 29 inclusive
28.42
18 29
30 to 39 inclusive
13 88
40 to 49 inclusive
10 16
50 to 59 inclusive
GO to 69 inclusive
6.80
4 08
1 to 69 inclusive
95.12
9.57
22.47
34.66,
45.35
31,65
17.68
12.8.3
9.90
8.00
4.86
98.74
Report of the Committee.
239
The company has also presented the following statement comparing
the Metropolitan experience of deaths per 1,000 with the mortality
rates in England, as shown by Farr's table, the experience of the
Prudential Insurance Company of London and certain mortality rates
given by the United States sensus :
Deaths per 1,000.
a!'
ential In
ranee Co. o
ndon.
IK .
1*.
X o
a OS
00
« •-I
o
o
next
Age
birthday.
3
-el
CI a.
Ol
I— t
m
as
T3 g o
u
S S^-l
^' \
§
8 Of-^
g
2n.
Ft(
&
y-i
o
^
O
§
1 ...
108.0
99.4
2 ...
65.6
63.2
57.6
87.4
49.3
46.6
32.7
3 ...
36 1
36 1
29 0
30 7
32.0
21.5
20.5
13.2
22.0
12.3
4 ...
24.6
18.6
21.5
24.7
5 ...
17.9
13.4
16.5
17.9
16.0
9.4
8.8
6 ...
13.5
10.0
11.61
7 ...
10.7
7.6
9.6
8 ...
9.1
5.7
V 8.2
8.9 \
7.0
V 5.2
5.1
0 ...
7.7
4.9
6.5
10 ...
6.5
4.2
\5.4
Company's Note.
* " The figures for 31 cities have not appeared in any census since 1880. It
is with these cities that comparison should fairly be made of the mortality of
the population and of the company's risks, for of the total business of the
Metropolitan, 49 per cent, is located in them, though their population is only
16 per cent, of the population of the United States. , The company had at the
end of 1904 1,654,287 policies in force upon children at these ages."
It is said that in 1904 the average amount on ages under ten was
$33.56, under age fifteen, $48.90. At age two the average was
$13.33 ; age three, '$19.10 ; age four, $23.46 ; age five, $27,70.
While the heavy expense of the " Industrial Department," as already
indicated, is due to the commissions of agents and the cost of super-
vision, the agents themselves are poorly paid and bitterly complain of
the discipline to which they are subjected. The premiums are col-
lected by the agents and careful supervision is required and enforced
to secure efficient service. They receive as " ordinary salary " 13 per
cent, of the amount actually collected and paid to the company. They
receive as " special salary " fifteen times the amount of the net weekly
increase of the collectible debit in their ageiicy. The net increase of
240 Legislative Insurance Investigation.
collectible debit is the excess of new business credited to the agent
over policies lapsed and charged against him upon the books of the
company. It is the duty of the agent to report lapses by the fifth
Monday after the premium is due and unpaid ; otherwise he is charged
for the subsequent arrears of premiums until the lapses : are duly
entered. The agent thus conceals lapses at his peril and they must be
made good by new business before he can obtain additional commis-
sions outside of the ordinary commission paid him for collections. It
is said that an enterprising man who devotes his whole time to the
business receives an average weekly income of $11.64.. There are
about 12,000 or 13,000 of these agents. Their immediate superiors
are some 2,700 assistant superintendents, working in fixed territories,
each having under his direction an average force of about five men.
The average compensation of the assistant superintendents is about
$25 a week and they in turn are supervised by about 350 sjiperintend-
ents. A few of the latter under old contracts have received, it would
seem, a considerable income. One is mentioned who' received about
$400 a week, out of which certain expenses were payab'j. It- is said
that the superintendents on the average now receive from. $25 to $50
a week. They are amenable directly to the home ofBce:
Every effort is made to stimulate the activity of the ^agents in pro-
ducing business, and as must necessarily be the case they are held to
the strictest accountahility. Despite the low rate of compensation,
the entire amount of salaries and commissions for 1904, together with
the expense of agency supervision, was upward of $11,000,000, and a
slight increase in the average weekly wages would have absorbed all
the insurance gain of the year.
In fine, the Industrial Department furnishes insurance, at twice the
normal cost to those least able to pay for it; a large proportion, if not
the greater number of the insured, permitting their policies to lapse,
receive no money return for their payments. Success is made possible
by thorough organization on a large scale and by the employment of
an army of underpaid solicitors and clerks; and from margins small
in individual cases, but large in the aggregate enormous profits have
been realized upon an insignificant investment. The business of the
ordinary department is said merely to carry itself and substantially
all the profits represented in its rapidly increasing surplus may be
traced to non-participating industrial insurance.
The Metropolitan Company furnish computations to show the gain
and loss on policies within the first year for the ordinary and the in-
dustrial department separately The ratios of cost of new business
Report of the Committee. 241
to the entire margins, being the loading and mortality gains for the
first year, were as follows :
Per cent.
Ordinary 19-i
Industrial 210
It appears that the industrial business is not valued in the same
manner as ordinary business. It was so valued originally, but about
twenty years ago a concession was obtained from the Massachusetts
Dep'artment to the effect that the first year 7-12 would be allowed off
reserves and the next year 3-12, these allowances being meant to cover
lapses. The following year the New York Department ruled that no
reserve should be required the first year and only the first terminal
reserve at the end of the second year, and so on. This ruling was on
the basis that the policies were issued at ages next birthday; that these
ne.xt birthdays were attained on the average on the 1st of January after
the policies were written and therefore the valuation proceeded as if
the policies were written on the 1st day of January after the actual
date of issue.
It also appears that the valuations are l)eing made by the American
experience or the actuaries' table of mortality, while the actual ex-
perience of the companies is much higher than these tables. The ex-
perience of the Metropolitan on industrial lives has been tabulated into
a mortality table which was furnished the committee and which ap-
pears to be much more suitable for the valuation of these policies. It
is as follows :
24ii Legislatim Insurance Investigation.
■ Age. Number
living.
2 1, 000, 000
3 950,627
4 920,192
5 900,377
6 885,899
7 875, 607
8 867,162
9 860, 270
10 854, 634
11 849,959
12 845,949
13 842, 308
14 838,741
15 ■ 834,952
16 830,713
17 825,808
18 820,029
19 : 813,332
20 " 805,719
21 797,241
22 788, 025
23 778,280
24 768, 142
25 757,676
26 746, 966
27 736,072
28 725, 082
29 714,043
30 702,987
31 691,929
32 680, 870
33 669,810
34 658, 745
35 647,662
30 636,553
37 625,408
38 614,214
39 602,964
40 691, 635
41 580,224
42 568,716
43 557,096
44 545, 352
45 533, 470
46 521, 436
47 509,235
48 496, 855
49 484,281
50 471,500
51 458,491
No. deaths
per 1,000,000
Number
living at
dying.
beginning of
year.
49,373
49, 373
30,435
32,015
19, 815
21,533
14, 478
16,079
10, 292
11,618
8,445
9,645
6,892
7,948
5,636
6.551
4,675
5:,47Q
4,010
4,718
3,641
4,304
3,567
4,235
3,789
4,517
4,239
• 5,077
4,095
5,905
5,779
6,998
6,697
8,167
7,613
9,360
8,478
10, 522
9,216
11,560
9,745
12, 366
10, 138
13,026
10, 466
13, 625
10,710
14, 135
10, 894
14, 584
10, 990
14,931
11,039
15, 224
11,056
15,484
11, 058
15, 730
11, 059
15,983
11, 060
16, 244
11,065
16, 520
11,083
16, 824
11, 109
17,152
11, 145
17, 508
11, 194
17,899
11,250
18, 31ft
11,329
18,789
11,411
19,287
11,508
19, 834
11,620
20, 432
11,744
21,081
11, '882
21,788
12, 034
22,558
12,201
23, 399
12, 380
24,311
12, 574
25, 307
12,781
26, 392
13, 009
27, 591
13,218
28,829
Report of the Committee.
243
Age.
Number
living.
Number
dying.
No. deaths
per 1,000,000
living at
beginning of
year.
52
445,273
13,470
13,718
13, 974'
14, 233
14, 496
14, 755
15, 010
15, 254
15, 485
15, 695
15, 877
16, 028
16, 138
' 16,201
16, 208
16, 152
16, 026
15, 822
15, 535
15, 159
.14, 690
14, 128
13, 474
12, 732
11,907
11,012
10, 060
9,065
8,050
7,032
6, 035
5,081
4,186
3,350
2,668
2,021
16498
1,074
. 743
494
316
191
111
61
32
15
7
3
1
30,251
.53 ;
431 803
31 769
54
418,085
33, 424
55
404 111
35,221
56
389 878
37, 181
57
375,382
39, 307
58
360, 627
41, 622
50
60
345,617
330, 363
44,136
46, 87u
Gl
314,878
49,845
62
03
64
05
299,183
283,306
........... 267, 278
251,140
53, 068
56,575
60, 379
64, 510
Go
67
234,939
218,731
68, 98.S
73,844
69
70
71
72
202, 579
186, 553
170,731
155,196
140, 037
79,110
84,812
90, 991
97,676
104,.901
73 :
74
125,347
111,219
112,711
121, 148
97 , 745
130,257
76
85, ors
140, 061
77 :
78
73,106
62, 094
150,631
162, 012
79
52,034
174,213
80
42, 969
187, 344
81
34,919
201, 380
82
27, 887
216, 409
83
21,852
232,519
81
16,771
249, 597
85 . . .
12, 585
266,190
86 .......
9, 235
288, 901
87
6,567
307,751
88 . ■ • ■
4,546
329, 520
89
3, 048
352, 362
90
1,974
376, 393
91
1, 231
401,299
92
737
428,765
93
421
453, 682
94
230
482,609
95 . . . .
119
512, 605
gg
58
551, 724
97
26
576, 923
98
11
636,364
99
4
750, 000
ion
1
1, 000, 000
:
244 Legislative Insurance Investigation.
'From ihe date of its organization to the end of 1904 the Metro-
politan had received in premiums from policy holders $418,729,-
463 ; through interest and other income derived from the invest-
ment of these moneys it had received $33,551,623 ; its assets then
amounted to $128,094,315. It had paid its policy holders $149,-
330,965, and to achieve this result it had expended $178,843,319.
PEUDENTIAL INSUEANCE COMPANY OP AMEEICA,
The Prudential Company was incorporated in 1873 by special
act of the Legislature of 'New Jersey, as "the Widows' and
Orphans' Friendly Society." In 1875 its name was changed to
the "Prudential Friendly Society," and about 1876 to the "Pru-
dential Insurance Company of America." The capital was orig-
inally $25,000, and this was increased from time to time until in
1893 it reached the sum of $2,000,000, at which it has since re-
mained. There are 40,000 shares of the par value of $50 each.
Only $91,000 of the capital was paid in cash and the remainder
represents accumulated profits distributed through stock divi-
dends. The stockholders for many years have received cash
dividends of 10 per cent, upon the outstanding stock, the equiva-
lent annually (since 1893) of nearly 220 per cent, of the original
cash investment.
In addition, the company has accumulated a large surplus.
Prior to 1886 it confined itself to industrial insurance, and since
that year its business has been chiefly of this description. In
1885 it had outstanding $40,266,445 of insurance; its annual pre-
mium income was $1,468,955 and its surplus amounted to $323,-
037. In 1904 its industrial insurance amounted to $675,992,239,
its ordinary insurance to $380,740,769, its. annual premium hi-
come was $41,155,697 and its surplus, including capital stock,
was $13,324,847. Over $10,000,000 of this surplus had been
accumulated since 1895, about $7,000,000 since 1900 and over
$3,000,000 in 1904.
At the outset policy holders were entitled to vote, but Vii 1880,
at the instance of the company, the charter was amended so as
to deprive them of this right.
In 1903, in order to concentrate the control of the company,
a majority of its stock, or 20,001 shares, largely owned by the
officers of the company, were sold to the Fidelity Trust Company
of Newark^ in which the Prudential and its oflScers were heavily
interested. -It was a part of the plan that the Fidelity sliould
Report of the Committee. 245
increase its stock from $1,500,000 to $3,000^000, selling the new
shares at $Y50 each, and that the Prudential should purchase so
many of these shares as to give it a majority of the entire stock.
Had the plan been carried out there would have been developed
a unique sitiiation. The directors of the insurance company an-
nually would have chosen the directors of the trust company,
and the latter in turn would annually have elected the former,
the dates of the annual meetings being so arranged as to make
the insurance company forever the " dominant factor/' Thus
the control of both companies would have been assured in per-
petuity to the directors of the Prudential, all vacancies in the
board being filled in effect by the directors themselves. Those
who were in control of the Prudential at the time would have
been not only able to perpetuate their power, but at the same
time would have had the advantage, not ordinarily associated
with such control, of realizing upon their stock holdings to the
extent of $6,000,000, which would have been supplied indirectly
by the insurance company through its purchase of the increased
stock of the trust company. It is explained that the plan was
devised to prevent the capture of the company by selfish inter-
ests. It is also said that the management intended to prevent the
declaration of further stock dividends, for which there had been
an increasing demand.
The courts intervened and the Prudential was prevented from
acquiring any additional stock in the Fidelity. The latter sold
eight shares of stock in the Prudential to reduce its hold in 2:3 to
a minority, or 19,993 shares, and it increased its own stock to
only $2,000,000. As the matter now stands the Fidelity, with the
officers of the Prudential, controls the latter company; the Pru-
dential has its original holdings of 4,800 shares out of a present
total of 20,000 shares of the Fidelity, and it is understood that
the ofiicers of the Prudential own in addition a sufficient amount
of stock of the trust company to give them an effective if 'not a
technical control.
According to its annual statement, as of December 31, 1904,
its assets and liabilities were as follows:
Assets.
Book value of real estate $12,494,957 86
Mortgage loans on real estate 15,682,358 73
Collateral loans 5,665,100 00
246 Legislative Insurance InvesUgaticn.
Loans on policies 1,993,878 53
Premium notes on policies in force 434,071 59
Book value of bonds and stocks owned 40,697,570 44
Cash in office and in banks 6,832,683 09
Bills receivable 3,446 37
Interest and rent due or accrued 641,775 85
Market value of bonds and stocks over book value. J, 430,997 43
Due from other companies for losses or claims on
policies reinsured : . . 526 37
Net uncollected or deferred premiums 2,638,034 77
Gross assets $88,515,401 03
Deduct biUs receivable 3,446 37
Total admitted assets $88,511,954 66
Liabilities.
jN-et reserve $70,028,520 00
Present value of unmatured supplementary con-
tracts 206,306 97
Liability on certain canceled policies 173,416 40
Policy claims 433,204 62
Premiums paid in advance ' 327,792 64
Salaries, rent, commissions and other accounts
due or accrued 155,784 88
Dividends or other profits due policyholders. . . . 70,879 77
Dividends apportioned payable to policyholders
during 1905 16,803 18
Special reserve 3,711,122 00
Interest and rent paid in advance 63,277 98
Capital stock :\ . . 2,000,000 00
Unassigned funds (surplus) 11,324,846 62
Total $88,511,954 66
The. home office building of the company in Newark was car-
ried at a cost of $8,378,125.50. The net income is a little ovei
3.11 per cent.
Of the $40,097,570.44, the book value of bonds and stocks, the
sum of $37,842,330.44 is represented by bonds and $2,855,240 by
stocks. According to the statement furnished the Commit fee
Report of the Committee. 247
under date of September 1, 1905,- the company now holds $6,330,-
000 of bonds secured upon properties owned or leased by the
^Public Senuce Corporation, a company recently formed and con-
trolling a large number of electric light plai.L-j and gas and trolley
companies in New Jersey. These (of which $378,000 in par
value were acqiiired since December 31, 1904) are as follows:
$65,000 — 4 per cent. Bonds Somerset, Union and Middlesex
Lighting Compiany, being 5 — 1% per cent, of total
issue — $1,182,875 — net interest 5.50 per cent.
8,000 — 5 per cent. Bonds Plainfield Street Kailway Company,
being 8 per cent, of total issue — $100,000 — ^net in-
terest 5.55 per cent.
19,000 — 6 per cent. Bonds The Newark Gas Company, being
5-10 per cent, of total issue— $4,000,000— net in-
terest 4.40 per cent.
10,000 — 6 per cent. Bonds North Hudson County Eailway
Company, being 1 2-3 per cent, of total issue —
$620,000 — ^net interest 4 per cent.
241,000 — 5 per cent. Bbnds Newark Passenger Railway Com-
pany, being 4% per cent, of total issue — $5,247,-
000 — net interest 4.30 per cent.
5,000 — 5 per cent. Bonds Brunswick Traction Company, be-
ing 1 per cent, of total issue — $500,000 — net in-
terest 5.22 per cent.
3,000,000 — 5 per cent. Bonds South Jersey Gas, Electric and
Traction Company, being 36 3-10 per cent, of total
issue — $8,254,000 — net interest 5 per cent.
326,000 — 5 per cent. Bonds Rapid Transit Street Eailway Com-
pany, being 65 2-10 per cent, of total issue —
$500,000 — net interest 5.35 per cent.
11,000 — 6 per cent. Bonds Essex Passenger R. R. Company,
being 1^ per cent, of total issue — $753,500 — ^net
interest 4.02 per cent.
125,000 — 4 per cent. Bonds Jersey City, Hoboken and Pater-
son Street Railway Company, being 9-10 per cent,
of total issue — $13,236,000— net interest 5.10 per
cent.
439,000 — 4 per cent. Bonds North Jersey Street Eailway Com-
pany, being 3 1-10 per cent, of total issue — $14,-
087,000 — ^net interest 4.63 per cent.
248 Legislative Insurance Investigation.
200,000 — 5 per cent. Bonds Elizabeth and Earitan Eiver Street
Railway Company, being 35 7-10 per cent, of total
issue — $550,000 — ^net interest 5.28 per cent.
500,000 — 5 per cent. Bonds Newark Consolidated Gas Com-
pany, being 8 3-10 per cent, of total issue — $6,000;-
000 — net interest 4.86 per cent.
500,000- — 5 per cent. Bonds Consolidated Traction Company,
being 8 1-3 per cent., of total issue— $15,000,000—
net interest 4.65 per cent.
343,000 — 5 per cent. Bonds Gas and Electric Company of Ber-
gen County, being 25 9-10 per cent, of total issue
— $1,823,000 — net interest 4.96 per cent.
100,000 — 5 per cent. Bonds Elizabeth, Plaiilfield and Central
Jersey E. E. Company, being 9 2-10 per cent, of
total issue — $2,047,000- — net interest 5.22 per cent.
350,000 — 5 per cent. Bonds Trenton Gas and Electric Com-
pany, being 171 per cent, of total issue — $2,000,-
000 — net interest 4.96 per cent.
$6,330,000 Total, being 5 8-100 per cent, of total Bonds issued,
amounting to $124,589,375.
The Prudential also loaned to the Public Service Corporation
on December 29, 1903, $2,000,000 on collateral, which was paid
on May 19, 1904, renewed on May 24, 1904, and finally discharged
on N"ovember 22, 1904. An additional collateral loan of $1,000,-
000 was made on October 31, 1904, and paid on November 25,
1904.
The stocks owned by the company are as follows :
Name.
Date
of purchase.
Par
value.
Price.
Book value.
Fidelity Trust Co . .
Fidelity Trust Co..
. . Jan. 15, 1900.,...
. . Feb. 28, 1900
$250,000
238,500
$250
500
'246
240
$625, 000
1, 192, 500
$488,500
8,500
$1,817,500
42, 500
.. June 17, 1902....
June 23, 1902
Union Nat. Bank. .
$480, 000
400, 000
250, 100
$1. 775, 000
960, 000
120,240
$450,100
$1,080,240
!
Report of the Committee. 249
At the time it was uncjer examiiiation the officers of the Pru-
dential were:
Hon. John F. Dryden, President.
Leslie D. Ward, Vice-President.
Edgar B. Ward, Second Vice-President.
Forrest F. Dryden, Third Vice-President
Wilbur S. Johnson, Fourth Vice-President.
Edward Kanause, Treasurer.
Edward Gray, Secretary.
Hon. John F. Dryden is also Vice-President and a director of
tlie Fidelity Trust Company, and is a director of the Union Na-
tional Bank and of the Public Service Corporation.
Leslie D. Ward is Vice-President and director of the Union
National Bank and a director in the other corporations named.
Edgar B. Ward is a director of the Fidelity Trust Company and
ihe Union National Bank.
Forrest F. Dryden, President Dryden's son, and Wilbur S. John-
son are directors of the Fidelity Trust Company, and the former
is also a director of the Union National Banik.
Uzal H. McCarter, President and a director of the Fidelity
Trust Company, is also a director of the Priidential, the Union
National Bank and the Public Service Corporation; and his
brother, Thomas N. IMcCarter,, President and a director of the
Public Service Oorpoi-ation, is a director of the Prudential, the
Union National Bank and the Fidelity Trust Company.
Anthony K. Kuser, President Dr-yden's son-in-law, is a" director
of the Prudential, the Fidelity Trust Company and tlie Public
Service Corporation.
Uzal H. McCarter and Thomas N. McCarter are brothers of
Robert H. McCarter, Attorney-General of the State of New
Jersey.
The Finance Committee.of the Prudential are President Dryden,
Second Vice-President Ward, Joseph H. McCarter, Edward
Kanause and A. E. Kuser. The Finance Committee of the Trust
Company are Messrs. Uzal H.' McCarter, John F. Dryden, Leslie
D. Ward, Mark T. Cox, Thomas N. McCarter, Jerome Taylor and
H. Eogers Winthrop.
The following illustrates the extent of the balances carried by
the Prudential with various banks ana trust companies:
250
Legislative Insurance Investigation.
I He ill
all I
Report of the Committee. 251
It will be noted ttat the company maintains large balanccis with
the Equitable Trust Company, controlled by the Equitable Life
Assurance Society, and the latter in turn has a considerable
interest in the Fidelity and in the Union National Bank, with
which it keeps large deposits.
The Insurance Commissioner of Massachusetts, ascertaining
that the direct and indirect interest of the Prudential in the
Fidelity Trust Company, taking into consideration its holdings
of stock, its deposits and loans upon the stock of that company
as collateral, was on December 1, 1903, over $9,000,000, threat-
ened to revoke the authority to do business in Massachusetts
unless this interest was reduced. Thereupon in May, 1904, the
company entered into an agreement with the commissioner that
at no time while it should transact business in Massachusetts
should the sum of its deposits in any single trust company, bank
or financial institution, taken with the value of its stock holdings
in the same and the amount of the loans made upon the stock as
collateral, exceed 50 per cent, of the net siirplus as determined by
tlie commissioner. This accounts for the large reduction in the
balances carried with the Fidelity Trust Company.
It is said that the Prudential has not been a member of any
syndicate formed for the acquisition or underwriting of securities
and that it has not acquired any securities from any syndicate in
which any officer of the company was interested. It has, how-
ever, made a considerable number of purchases from the Fidelity
Trust Company, which it is understood from time to time has
acquired bonds and stocks from syndicate managers where officers
of the Prudential have been interested in the syndicate. The
Fidelity itself was a participant in the syndicates relating to the
N'ewark Gas Company and the Public Service Corporation. In
such cases the Prudential had no interest in any compensation
or profits, whether in- securities or otherwise, received by the Trust
Company, from which it is said it simply purchased bonds on the
same basis as other purchasers in the market.
The total expenses of the Prudential from 1900 have been as
follows
1900 $10,977,102
1901 12,251,614
1902 o 13,3,69,935
1903 15,104,225
1904 ' 16,398,142
252 Legislative Insurance Investigation.
The expenses in 1904 were nearly 40 per cent, of the income
-■and about 121 per cent, of the total amount paid policyholders.
In 18Y5 John F. Dryden became secretary of the company at
a salary of $100 a month, which was increased in 1876 to $1,800
year, in 18T9 to $3,250, and in 1880 to $5,000. From 1882 to
1888 he held the office of president at a salary of $5,000. This
was increased in 1884 by the allowance of an amount equal to 2
per cent, of the " cash savings " of the year (net balance of re-
ceipts over disbursements), and in the subsequent years men-
tioned by an allowance of 5 per cent, of such savings. In tho
latter part of 1898 this allowance was discontinued and the total
compensation or salary fixed at $20,000. This was increase.!
iu 1891 to $30,000, in 1893 to $50,000 in 1899 to $65,000, at
which it has since remained.
Leslie D. Ward was medical director from 18Y9 to 1883. His
, salary the first year was $1,000 and subsequently $2,00.0. In 1884
he was made first vice-president, and from that time to 1888 Lc
received $4,000 increase from 1885 on by 3 per cent, of the an-
nual savings. In 1889 he was given a flat salary of $15,000,
which was increased in 1891 to $25,000, in 1893 to $45,000, and
since 1899 it has been $60,000. Edgar B. Ward, from .1880 to
1884, received $400 a year as counsel. His compensation was
increased in 1885 to $5,000 a year, in 1887 to $6,000, in 1889 to
$8,000, in 1890 to $10,000, in 1891, to $15,000 ; in 1893 he was
made second vice-president and coimsel at a salary of $25,000,
which was increased in 1899 to $40,000, at which it has since
remained.
Forrest F. Dryden, assistant secretary in 1890 at a salary of
$2,500, was made secretary in 1891 with a salary of $5,000. This
was increased in 1893 to $10,000, and 1899 to $20,000 ; in 1903 he
became third vice-president at the same salary; this was raised
in 1904 to $25,000, and in 1905 to $30,000.
Directors who are not salaried officers receive $25 for attending
board meetings and $15 for committee meetings.
The legal expenses of the company for five years past have been
as follows:
1900 $25,221 30
1901 29,308 09
1902 - 24,097 96
1903 35,484 41
1904 9,7,836 61
1905, to September 1 54 117 44
Report of the Committee. 253
Andrew Hamilton was employed in 1899 and paid $5,021.50 in
connection with matters of legislation. This is said to be the
only occasion on which he was retained directly. In that year
the company also expended $7,500 for services of counsel in
endeavoring to secure4he repeal of a statute of Colorado prohibit-
ing insurance^ upon the lives of children. And in addition it paid
the Metropolitan for its share of expenses in connection with legis-
lation $3,377.92. Since that year the amounts disbursed in such
matters have been as follows :
1900 • $3,843 32
1901 3,703 43
1902 3,152 40
1903
1904 7,276 50
1905, to September 1 2,500 00
The greater part- of these payments have been made to the
Metropolitan Company.
It is said that the other disbursements charged to legal ex-
penses have been in connection with litigation and various legal
matters in which the company has been -interested. The increase
in the recent years has been due to litigation growing out of the
proposed transaction with the Fidelity Trust Company and aris-
ing from action of the Insurance Commissioner of Wisconsin
in relation to the authority of the company to transact business
within that State.
The company contributed to the Eepublican JSTational Com-
mittee $6,000 in -J 896, $10,000 in 1900, and $10,000 in 1904, and
states that it has made no other contributions for political cam-
paign,-either municipal, state or national.
On December. 3l, 1904, the insurance in force was classified
as follows :
Ordinary Department —
Life $260,391,111
Endowment - 63,039,106
Other forms 20,291,502
■ $343,721,719
Special Class $250—
Life .- 1,016,250
Endowment . . . ., 428,000.
$1,444,250
254 Legislative Insurance Investigation.
Special Class $100 —
Endowment $248,800 $248,800
Intermediate —
Life $23,470,500
Endowment 11,855,500
35,326,000
Industrial Department —
Infantile life ': $1Y5,157,431
Adult whole life 485,269',883
Young people's endow-
ment ... ., 8,600,250
Twenty-year term and en-
dowment, and other
classes 6,964,675
675,992,239
$1,056,733,008
It is said that in the " Ordinary Department " the company lias
been issuing participating policies for about twenty years. De-
ferred dividend policies are written.
Su,b-standard or extra hazardous risks are taken at special rates.
In certain cases the insurance is adjusted by placing a lien upon
the policy.
The "Intermediate " policies are foi* $500. They show a some-
what higher death rate than ordinary policies.
In the " Industrial Department " almost all the business, as
shown above, is taken upon adult and infantile whole life tables.
It is said that the rates are about 60 per cent, higher than partici-
pating rates in the Ordinary Department. They are prac-tically
double the ordinary non-participating rates. It appears that one
insuring in the Industrial Department at age 40 would have to
pay fifty cents a week or $26 a year to obtain a policy for $500,
while in the Ordinary Department, one of the same age can ob-
tain a participating whole life policy for $1,000 for an annual
premium of $32.68, or a non-participating whole life policy for
the same amount for an annual premium of $27^03.
The Infantile Life table provides for progressive benefits on
weekly premiums of five and ten cents. ISTp higher premium
than ten cents is taken. After the insured reaches the age of
twelve if in good health the premium may be increased to fifteen
Report of the Committee. 255
cents, and at the age of fourteen to twenty cents, and provision is
made for increased payments with proportionate benefits accord-
ing to the adult table at later ages.
The typical industrial policy provides for additional benefits in
case of death after five years from its date. The amount of this
benefit is determined from tables issued annually by the company.
Thus in case of deaths occurring in 1905, it n-nounted per $100
of insurance to $1.20 for policies issued in 1900, $1.50 on those
issued in 189'9 and varying amounts were applicable to issues in
other years, the'highest being $4.50 per $100 of insurance on the
policies of 1891. Provision is also made for a credit of cash
dividends at the end of fifteen years from the date of policy anrl
each fifth year thereafter from the surplus apportionpd by the
company to policies of the same class. Thus in 1905 the divicendiJ
upon policies issued in 1890, taking the five per cent, prcm'uin
as the unit, were graded downwards from the maximum of $5.40
allowed on policies issued at age two. On policies issued in 1875,
1880 and 1885 the maximum dividend, taking the same unit, was
$1.70.
The dividends and additional benefits paid to industrial policy
holders in the years 1900 to 1904 inclusive were as follows :
5-year Additional
15-year cash additional cash benefits paid at
dividends. dividends. death.
1900 $345, 602 58 $22, 534 61 $65, 652 45
1901 355,532 77 18,270 44 73,163 25
1902 394,903 17 22,878 35 76,973 5.3
1903 442,828 94 33,99138 89,520 73
1904 504,426 46 47,887 34 93,760 34
All risks below $250 are taken on a medical "inspection," for
which twenty-five cents is paid to the physician. This covers
about 60 per cent, of the industrial risks. The remainder are
"examined," the physician receiving fifty cents.
The experience of the Prudential also exhibits a remarkable
lapse rate. Deducting policies discontinued by death, surrender,
expiry, etc., the following are the lapses in the Ordinary and
256
Legislative Insurance Investigation.
Industrial Departments, as reported to the Insurance Depart-
ment of this State, for the years 1900 to 1904:
Year. Ordinary Department.
No. policies. Amount.
1900 22,646 $20,793,291
1901 ..' 25,056 22,787,553
1902 19,822 15,675,115
1903 26,500 19, ;.(08,824
1904 31,802 23,948,600
Industrial Department.
No. policies.
906, 201
1,033,871
935, 891
871, 409
945, 640
Amount.
$112,292,576
130,969, Ua
120,251,098
■112,809,414
124, 789, 622
It is found that in the Ordinary Department over 44 per cent,
lapse during the first three years. In the Industrial Depart-
ment between 62 and 66 per cent, lapse in the firstthree years.
The percentage of lapses taken by calendar years is as follows:
Ordinary Department.
1
First
Year.
Second
Year.
Third
Year.
Fourth
Year.
Fifth
Year.
1900
1901
1902
1903
9.48
8.11
4.78
8.73
27.46
30,85
30.79
29.45
7.55
7.37
8.69
3.76
4.26
2.55
1904
9.34
Industrial
Department.
First
Year.
Second
Year.
Third
Year.
Fourth
Year.
Fifth
Year.
1900
1901
1902
1903
1904
37.51
40.92
37.25
35.17
35.43
22.87
19.69
18.81
19.83
5.71
5.07
5.95
3.39
3.79
2.61
The result is the more striking on an examination by policy
years. Thus taking an issue of 90,000 industrial policies and
following them for one year, the company has ascertained that
the lapse rate per 100 policies issued, "deaths being included
Report of the Committee. 257
but amounting to'less than one per cent, of the number issued,"
is as follows:
Within 13 weeks 29.0 per cent.
Within 13 to 26 weeks 12.8 per cent..
Within 26 to 39 weeks 5.7 per cent.
Within 39 to 52 weeks 3.8 per cent.
Total within year 51.3 per cent.
From a table prepared some time ago it appeared that the
lapse rate in the second year was 6.7 per cent., but since that
time it is said the lapse rate has materially decreased.
In addition the following table has been presented to the com-
mittee showing the length of time lapsed industrial policies had
been in force;
Percentage
of lapses.
Less than 13 weeks 37
13 to 26 weeks 17
26 to 39 weeks 7
39 to 52 weeks 5
52 to 65 weeks 3
65 to 78 weeks 3
78 to 91 weeks 2
91 to 104 weeks 2
2 to 3 years 6
More than 3 years • 18
Totaf 100
It is added that premiums have been paid on the policies
mentioned at least four weeks less than the indicated duration.
In connection with the matter of lapses it is urged that the
revivals of lapsed policies should be considered, and the com-
pany has prepared a statement showing the ratio of policiea
258
Legislative Insin
:r;;t/v;
lion:
revived to policies lapsed in each year to establish the fact that
revivals are on the increase. This statement is as follows:
Year.
3 OH
o a.
13
^ .
,2
I
Policies lapsed,,
subject to re-
vival.
13
>
>
to ^
s
1
■s
O
O
1
3
1
>
IV
icies lapsed
subject to re-
vival.
1895
969,463
39, 984
929, 479
' 48,452
5.21
1^96
850,798
40, 081
810,717
41,268
5.09
1897
785, 995
39,906
746, 089
78,154
10.47
1898
775, 758
42, 042
733,716
82, 330
11.22
1899
'
917,207
48,213
868, 994
85 , 840
9.87
1900
991,699
56, 875
934,824
104, 157
11.14
1901
1.
, 124, 761
61, 179
1,063,582
123, SS8
11.64
1902
1,
030, 753
63,501
967,252
153, 208
15.83
1903
975,362
69, 700
905,662
150,214
16,58
1904
for 10 years.
( 10 mos. ) . . .
1,
070, 032
79,279
990, 753
158,825
16.03
Total
9:
, 491, 828
540, 760
8,4*61,068 1:
,026,286
11.46
1905
915, 869
66, 395
849, 474
135,648
15.90
It does not appear, however, that there is a large percentage
of revivals of the policies which lapse in the earlier years. Thus
in 1904 the Prudential experience with reference to revivals was
as follows.
Of lapsed policies in force more than 3 years 46.90 per cent,
were revived.
Of lapsed policies in force from 2 to 3 years 40 per cent, were
revived.
Of lapsed policies in force from 1 to 2 years 25 per cent, were
revived.
Of lapsed policies in force less than 1 year 5 per c,eht. were
revived.
In case of lapse within three years nothing is paid upon the
policy. If it is subsequently lapsed and the insured is over thir-
teen years of age the company, under a statute^ of New Jersey
passed in 1895 (Chapter 356), gives paid-up or' extended insur-
ance at the option of the insured for an arhount equal jn net value
to at least two-thirds of the reserve. At the end of twenty years
from the date of the policy or of any fifth year thereafter upon
surrender of the policy within three months the company pays'
Report of the Committee. 250
a cash surrender value. The amounts of the surrender values
are named in the policy. Thus on the basis of a five per cent.
premium (on other payments there are proportionate increases)
one insured at age two would be entitled to $8.50 and one insured
at age forty to $19 as a cash surrender value at the end of twenty
years. The amounts paid by the company as the surrender value
of industrial policies in the years 1900 to 1904 were as follows:
1900 . . '. $320,449 64
1901 • 344,736 11
1902 374,373 60
1903 410,499 55
1904 596,680 11
According to the gain and loss exhibit for 1904 the results of
the total business of the company for that year were as follows:
Gain from loading $2,083,816 00
Gain from surrendered and lapsed policies ...'.. 2,474,360 00
Gain from surplus interest '. . . 656,748 00
$5,214,924 00
Loss from mortality . . . -. 1,304,433 00
$3,910,491 00
Increase in market value 344,586 00
Total , $4,255,077 00
It is said that the gain and loss exhibit cannot be regarded as
entirely accurate. The Prudential urges that the gain and loss
exhibit cannot be made up in the form in which it has been re-
quired by the "Wisconsin Department so as to give an absolutely
accurate result. In the case of the Prudential the loading can
only be approximated and this item is forced in order to strike
a balance. Still it will be noted that only 33.64 per cent, of the
reserves released by surrender and lapse are returned in surrender
values.
As in the case of the Metropolitan, the enormous expen.sei of
the company are chiefly due to the requirements of the Industrial
Depaitment, in which substantially the same system of solicita-
260 . Legislative Insurance Investigation.
tion and supervision is maintained. The company has 8,582
agents, 1,751 assistant superintendents and 223 superintendents.
The agents are paid in the same manner, the compensation for
new business is based upon net increase, and the same measures
are taken, through charges of excess arrears, to compel the report
of lapses. The average income of agents, taking the first ten
months of 1905, was found to be $14.61 a week, and of assistant
superintendents $24.24 a week. The average income of superin-
tendents is about $95.55 a week. The • largest income is received
by a superintendent who has been with the company over twenty-
five years. His contract, which was put in operation when the
company first started, has not been changed and his weekly in-
come is said to be $531.24.
On account of the fact that a large part of the business is par-
ticipating, it is insisted that the surplus over the capital stock
is not to be regarded as belonging to the stockholders. Industrial
insurance, it is said, is still in- an experimental stage in, this
country, and that the company has been " feeling its way " with
reference to the accumulations necessary for adequate security.
While not submitting a definite scheme beyond the present par-
ticipating balance, it is asserted by the ofiieers of the company
that practically all the surplus will ultimately be returned to
the policyholders.
The Prudential Company furnished computations to show the
gains and losses for the first year of insurance for the industrial
and ordinary departments separately. The ratios of the expenses
of the^first year of insurance to the total margins of the first
year's premiums collected, being the loadings and the mortality
gains, were as follows:
Ordinary 248 per cent.
Industrial 211 per cent.
The history of the company shows not only the extremely profit-
able character of the industrial business to the stockholders, but
the enormous waste incident to the present methods, which raises,
in connection with the lapse rate, a serious economic question.
The Prudential, from 1876 to 1904, received in preitiixvms
$290,091,973; from interest aud interest income it received $20,-
789,916. Its assets on December 31, 1904, were valued at $88,-
511,956. Its total disbursements had amounted to $226,454,358.
Report of the Committee. 261
Of these disbursements the policyholders received $92,989,397,
and the expenses aggregated $133,464,941.
The facts disclosed by the investigation direct attention to-
the'work of the Department of Insurance. While the committee
was not specifically directed to investigate this department, its
relation to existing conditions was properly within the scope of
the investigation and demands consideration as an important
phase of the life insurance business in this state.
THE INSURAlyTCE DEPAETMENT.
Under the existing law, every corporation engaged wliolly or in
part in the transaction of the business of insurance witliin this
State is required annually, within two months after the 1st day
of Jantiary in each year, to file with the Superintendent of Insur-
ance a verified statement showing its condition on the 31st day
of December next preceding, in such form and containing such
matters as the superintendent prescribes. The superintendent
may also address any inquiries to any such corporation or its
officers " in relation to its doings or condition, or any other mat-
ter connected with its transactions." Every corporation so ad-
dressed is bound " promptly and truthfully to reply in writing
to any such inquiries and the reply must be verified by such
officer of the corporation as the superintendent may designate."
Further, it is the duty of the superintendent, " as often as he
deems it expedient," to appoint one or more competent and dis-
interested persons as examiners to inquire into the affairs of
any such corporation. The examiners may examine under oath
its officers and' agents, and its books with reference to its busi-
ness. The books and all its papers must be produced for their
inspection whenever required. The examiner must make a full
and true report, under his oath, of every examination. Provision
is made for giving a hearing to the corporation before the report
is filed; the superintendent is authorized, if he deems it for the
interest of the public, to publish the report or the result of the
examination in one or more newspapers of the State, and the
report is made " presumptive evidence in any action or proceeding
in the name of the people against the corporation, its officers or
agents, of the facts stated therein." The law provides that the
expense of an examination is to be borne by the company ex-
amined, and that the general expenses of the department, if in
excess of its statutory fees, may be collected from the insurance
corporation by a pro rata assessment.
3G2 Legislative Insurance, Investigation.
The department is at present organized with a force of three
deputies, one actuary and nine assistant actuaries, two statis-
ticians, one chief examiner, three special examiners, ten confiden-
tial examiners and four appraisers, besides clerks and stenog-
raphers. There are 433 insurance companies of various sorts
subject to the jurisdiction of -the superintendent. As evidence
of his activity, it is said that during the administration of
Superintendent Francis Hendricks (six years) there have been
examined 2G life insurance companies, 86 fire insurance com-
panies, 3 marine insurance companies^ 74 United States branch
foreign fire and marine companies, 4 United States branch fire
and casualty companies, 9 fidelity and surety companies, 20 joint
stock casualty companies, 3 credit and indemnity companies, 18
title and mortgage guarantee companies, IS fraternal orders and
11 assessment associations, a total of 271 examinations. Superin-
tendent Hendricks testified, when examined on December 21 last,
that during his administration only one of all the companies under
his supervision (a fire insurance company) had gone into the
hands of a receiver.
But it is not the general activity of the department that is the
subject of present inquiry; nor even with reference to life, insur-
ance companies would it be possible to attempt either an ex-
haustive or a general review of departmental supervision, whether
with reference to the examinations had, to the policy of the
department in relation to technical questions or to the positions
taken in its various rulings. Some of these have already been
mentioned. The matters necessarily presented for consideration
are those relating to the authority of the superintendent, and the
manner in which it has, been construed and exercised, with partic-
ular reference to abuses in the management of life insurance
corporations.
It would seem that the superintendent has had ample power,
and has been charged with the correlative duty, to inquire into
and to ascertain the transactions of insurance companies; to the
end that abuses may be exposed and correct administration as-
sured. The scheme by which the superintendent may require de-
tailed written statements, duly verified, as to any matter of
corporate business, and may supplement these statements by an
t-xamination of the company's books and of the officers and agents
under oath, would appear well calculated to prevent the secret
growth of improper practices. A^ot only through the visitorial
powers of the superintendent were a wholesale publicity and the
Report of the Committee. 263
consequent enforcement of the law to be assured, but the super-
intendent was also charged with the duty of recommending to_
the Legislature annually such amendments to the law as in his
judgment were needed to correct evils found to be without the
purview of existing statutes.
But the supervision by the department has not proved a suffi-
C'iont protection against extravagance and maladministration.
Annual statements from the corporations have been received,
filed and published, but in many particulars without sufficient
detail to exhibit the real etHciency of honesty of the management.
'Not- has there been suitable effort upon the facts actually reported
to detect and expose evasions of departmental requirements and
the resort to artifice and double dealing in order to avoid a true
disclosure of the companies' affairs. For the most part a critical
examination of the reports so made seems to have been neglected,
an^ the verification of the annual statements has been left to ex-
aminations conducted at irregular intervals. ISTo rule seems ,to
have been adopted with reference to ,the frequency of examina-
tions. Thus the Security Mutual Insurance Company has been ex-
amined four times since its reincorporation in 1898, at its request
and apparently with no other object than to enable it to use the
department's certificate in support of its anniml statement, while
the ProTident Savings Life AssVrance Society has been examined
only once in the past ten years (18S7), and it would seem that
this was the only examination in' its history. The Metropolitan
Life Insurance Company has also been examined only once during
ten years, that is in 1900. The advisability of frequent examina-
tions is sufficiently illustrated by the case of the Washington Life
Insurance Company, where it appeared on the examination in
1904 that during the interval of four years since the prior exam-
ination it had in at least two annual statements deceived the de-
partment by glaringly false returns of its existing liabilities, and
that instead of having an alleged surplus of considerable amount
its capital was seriously impaired.^ In connection with this com-
pany it may be noted that a more careful scrutiny of the reports
to the department of lapsed and restored policies would have led
at gn earlier date to the investigation which appears finally to have
been induced by outside criticism. The foUovping is a list of the
examinations of life insurance companies between January 1,
189.5, and December 21, 1905:
American Union Life Insurance Company. (Reinsured
February 18, 1901, in the Security Trust and Life Insurance
264 Legislative Insurance Investigation.
Company of Phlladelfiliia, Pa.) October 28, 1897, July 12,
1900, August 3, 1900, December 2Y, 1000.
Bankers Life Insurance Company of the City of New York.
October 26, 1899, January 26, 1903, Marcli 13, 1905.
Brooklyn Life Insurance Company. (Reinsured in Equi-
table Life Assurance Society of 'the United States on July
22, 1901). September 25, 1900.
Equitable Life Assurance Society of the United States.
July 9, 1895, October 13, 1902, June 30, 1905, October 17,
1905.
Germania Life Insurance Company. June 17, 1901, July
14, 1902.
Home Life Insurance Company. June 1, 1896, April 29,
1901.
Life Association of America. (On organization) Augiist
7, 1903. Eurther examinations December 14, 1904, April 6,'
1905.
Life Insurance Club of ISTew York. (On organization)
May 19, 1905.
Manhattan Life Insura^nce Company. December 30, 1895,
May 1, 1905, July 21, 1905.
Metropolitan Life Insurance Company. May 14, 1900.
Mutual Life Insurance Company. July 17, 1896, March
24, 1899-, September 21, 1903.
Mutual Eeserve Life Insurance Company. March 15, 1895,
May 16,-1898, August 22, 1899 (on incorporation), April 16,
1902, July 6, 1905.
New York Life Insurance Company. October 16, 1899,
August 2, 1904.
Provident Savings Life Assurance Society. October 16,
1897.
Security Mutual Life Insurance Company. April 28,
1898 (on reincorporation), December 29, 1899, February 14,
1903, January 19, 1904, January 13, 1905.
United States Life Insurance Company. ^ December 20
1900, March 14, 1905, May 1, 1905.
Washington Life Insurance Company. December 20,
1900, December 29, 1904, January 18, 1905.
Infrequent as have been the examinations of particular com-
panies, they would still have availed in many instances to disclose
the conditions made apparent by this investigation, had they been
Report of the Committee. 265
rigorously conducted with the purjiose of cxjoosing whatever
aliases existed. It is said, hoVever, that it has long been the tra-
dition of the departraent not to concern itself with a close super-
vision of the management of life insurance companies apart from
the ascertainment of their solvency. It is urged with much in-
sistence that it is impossible for the department to manage
the companies, and that, despite its sweeping powers,
it performs its function of its investigations go to the
extent of determining that the companies have sufficient
, assets to warrant their continuing in business. In this
view, whether the administration of a given company was eco-
nomical, whether- excessive sums were expended in an unjusti-
fied race for business, whether officers were availing them-
selves of official relations to advance personal fortunes, whether
relatives and favorites were being enriched through exorbitant
, commission contracts, whether the companies were confining them-
selves to the business for which they were chartered or were ex-
tending, their operations into the fields through the control of
subsidiary organizations, whether books were regularly kept and
amounts disbursed were accounted for by proper vouchers,
whether secret accounts were maintained for corrupt purposes,
whether directors did their duty or simply acted as the appointees
of an autocratic management, whether policy holders were obtain-
ing their proper returns through just methods of distributions,-
Avould be questions with which the Superintendent of Insurance
would be under no duty to concern himself if he were satisfied
that the company had abundant resources to meet all its liabilities.
The reports from time to time made to the superintendent by
his examiners are not consistent with so narrow a conception of
official duty. In some cases such questions have been closely ex-
amined, and in others, as for example, that of the Mutual Reserve'
Fund Life Association, serious charges have largely been ignored.
But the position taken by the department with regard to the ex-
tent of its supervision and the professed scope and actual limita-
tions of the examinations it has conducted are not only sufficiently
but best illustrated by its course with reference to the three great
companies as .contrasted with the facts now shown to exist.
Thus the Mutual Life Insurance Company was examined by tlie
department in 1898. It seems to have been occasioned by a de-
mand for an examination by commissioners of insurance of other
states, which led to a request on the part of the company that
266 Legislative Insurance Investigation.
the Xew York Superintendent should make an examination. This
s^■as done, representatives of the other commissioners participat-
ing in the work. The examination covered a period of nearly
four months. Its purpose, method and extent are thus stated in
the officially published report of Chief Examiner Isaac Vander-
poel to Superintendent Louis F. Payn under date of March 24,
1899:
" I submit herewith report on examination of the Mutual
Life Insurance Company of New York as directed by, your
appointment under date of May 2, 1898. The examination
has contemplated a verification- of the company's annual
statement to the Insurance Department and the reptart ex-
hibits the condition of the company on December 31, 1897,
together with the receipts and disbursements for that year as
shown by the examination, the scope of Avhich included the
transactions of the company as to receipts and disbursements
from December 31, 1894, to December 31, 189T, a period
covering three years.
" The company's condition on December 31, 1894, having
been ascertained by an examination of its affairs made by
this department, the figures representing its net or ledger
assets at that time were increased by the company's receipts
since then, less the disbursements during the same period, to
test the correctness of the amount reported on December 31,
189Y, as being its ledger assets. For the years 1895 and
1896 the investigation was confined to the examination of
the company's receipts and disbursements as evidenced by its
various books of accounts running from cash books or books
of original entry to ledgers, and for 1897, in addition to this,
the payments of all moneys have been accounted for by an
iexamination of the receipt vouchers taken by the company
covering payments on policyholders' accounts or for expenses
of management. Thus each item composing the total of $36,-
124,060.99 of disbursements for 1897 was examined and ac-
counted for."
tFpon the results of this examination Superintendent Payn
commented in his annual report to the Legislature in 1899 as fol-
lows:
" The work of conducting this investigation (including the
appraisal of such company's real estate as had not been
appraised by this department oa the examination of 1894)
Report of the Committee. 267
covered a period of six months and necessitated the employ-
ment of a very considerable force in order that the investiga-
tion might be thorough and complete, which I am satisfied it
has been. It contemplated an analysis of the company's
receipts and disbursements since the last examination by
this department December 31, 1894, and while I do not deem
examinations of corporations of this class essential at such
short intervals as three years, yet I am satisfied that the
action of the company' ofl[icers in requesting this examination
to be made by me will be indorsed by its policyholders. The
investigation conclusively shows that the interests of its
policyholder>s are amply conserved by the officers and direct-
ors. I am satisfied the methods adopted by the company in
the accretion of surplus funjis and their apportionment
among policyholders by way of dividends are equitable and
secure uniformity of distributions among the various kinds
or classes of policies. The investments of its funds, its re-
ceipts and disbursements for the years 1895, 1896, and 1897,
have been examined and checked with the company's annual
statements for these years and the memoranda covering these
items, together with reports of appraisers and of counsel, and
also various schedules and exhibits, representing in detail
the methods by which totals of figures are arrived at are
now on file in this department."
This company was again examined in 1903 and the report of
Chief Examiner Vanderpoel to Superintendent Hendricks under
date of September 24, 1903, shows clearly the professed scope of
the examination. It was formally represented to Superintendent
Hendricks that the examination bad tested methods of adminis-
tration and established the fact that the welfare of the policy-
holders had been conserved by the character of the management.
Mr. Vanderpoel in his report, published by the superintendent,
says:
" In an examination of a life insurance coi-poratlon >vaose
transactions are as extensive as those of the Mutual life, it
is made necessary to formulate a line of procedure as to Jie
general scheme of the work, which will result in ultimately
arriving at a comprehensive result. If the scope of the
investigation were confined solely to ascertaining the fnct
that the corporation was solvent under the law, that is, that
its assets were properly invested thereunder'and equal to or
53
268 Legislative Insurance Investigation.
in excess of liabilities, the time occupied in determining this
question would be relatively limited compared to that re-
quired to determine likewise whether the conlpany had been
managed in the best interests of policyholderSj^the cost of
whose insurance to them, in a purely mutual company, de-
pends largely upon an intelligent administration of its affairs.
"An examination therefore of receipts and disbursements
for a series of years becomes necessary, if we are to arris •
at any idea of the conduct of a company's business with the
view of confirming the belief that the welfare of all policy-
holders has been conserved by the character of its manage-
ment in the past. I believe the time occupied in establishing
this fact was amply warranted. It necessitated, among other
things, inspecting and reviewing in specific detail as to items
contained therein the monthly reports of all agencies since
December 31, 1897. Thus agency receipts from new and
renewal premiums with corresponding commission disburse-
ments and all expenses of every nature pertaining to the pro-
curing of new business or the renewing of old have been thor-
oughly examined, both as to domestic agencies and agencies
under the supervision of the company's foreign department.
So also have all disbursements for expense's properly charge-
able to home office been exhaustively reviewed. Every fa-
cility was afforded by the company's officers and the heads of
its several departments to thoroughly aec,omplish the work:
which has been materially expedited by the admirable meth-
ods in vogue at the home office in the handling of accounts
dnd keeping of books of initial or final entry."
In striking contrast with this official report is the actual course
of the examination which preceded it, as disclosed by the testi-
mony taken by your Committee. The examiner did not know and
made no effort to ascertain the salaries paid to individual officers.
He did not know and made no effort to ascertain the amount paid
the son of the president of the company or the terms of the con-
tract under which he had been receiving excessive commissions
upon foreign business. ISTor did he allude to the exorbitant com-
pensation paid to the firpi of C. H. Eaymond & Company, of which
President McCurdy's son-in-law was a member. No attempt
was made to ascertain whether moneys had been spent properly
or improperly. The fact that a disbursement was approved by
the stamp of the Committee on Expenditures was "deemed a suffi-
Report of the Committee. 269
cient justification for the payment. Voucliers answered the pur-
pose if they covered the amount called for by the hooks, regard-
less of the question whether the amounts were actually expended
as therein stated or of the excessive outlays attributed to particu-
lar departments. Concealed payments under vouchers for moneys
drawn by the chairman of the expenditure committee, and the
enormous totals disbursed in the Supply Department, under the
management of Andrew 0. Fields, either escaped attention or
were treated as without significance. No officer, or committee-
man or agent was examined under oath. Despite the language
of the report, there had been no real effort to detect abuses in
administration. As a test of the character of the managein^nt
the examination was plainly a farce.
Mr. Vanderpoel testified that his examination in the case of the
Mutual was in accordance with the established usages of the
department. He stated that tie was made chief examiner in 1895,
and thereafter continued the method of examination which
previously had been employed.
For several years the department has maintained for its con-
venience an office in l^ew York City, through which the examina-
tions of companies having their principal place of business in
that city have bee» conducted. Kobert H. Hunter, the first
depjity, has been in charge of that office since 1897, having in most
cases immediate supervision of the work of the examining force.
It is apparent that no suitable steps have been taken to insure
thoroughness of the examinations with reference to official fidelity
or so to direct, by special instructions, the course of inquiry, as
to safeguard the interests of policy holders by an exposure of
wasteful expenditure or corrupt practices. The final responsi-
bility for this neglect, however, must rest with the Superintendent
of Insurance. Superintendent Hendricks and his predecessors
seem uniformly to have relied upon the reports of the examiners,
and have permitted them and the deputy in charge to conduct the
examinations in their own way, practically without direction or
interference.
The New YorTc Life Insurance Company was examined in 1899
and in 1904. In the report of the former made by Examiner Van-
derpoel to Superintendent Payn on October 16, 1899, it is said:
"The examination contemplated an investigation of the
various items composing the company's annual statement to
the Insurance Department of ISTew York for the year ending
270 Legislative Insurance Investigation.
December 31, 1898. The manner in which these items were
made up has been investigated by a thorough inspection of
the company's books and records of all description and the
accuracy of the figures composing the annual return in
question has been verified in practically every instance.
"The receipts of the company during the year 1898
amounted to $45,431,916.51 and the disbursements during
the same period to $30,498,953.01. Each separate item of
receipts and disbursements has been examined and its cor-
rectness tested by the most careful checking of the company's
accounts and office records of every description."
The examination of 1904 purported to be an exhaustive one and
included a visit of the examiner to the European headquarters at
Paris for the purpose of investigating the records of the foreign
business. But neither this report nor the earlier one alludes to
any of the transactions of the company which have attracted
attention in the present inquiry. No mention was made of the
extraordinary payments for legal expenses or of Andrew Ham-
ilton and his work. Although the treasury department ledger
was before the examiner, none of the inquiries naturally sug-
gested by the accounts of syndicate profits were prosecuted, and
the transactions in " non-ledger " securities either were undiscov-
ered or ignored. An important object of the examination was to
verify the annual statement, yet nothing is said of the proceed-
ings by which transactions and interests of the company were
concealed from its reports. On the other hand, Mr. Vande'rpoel's
report to Superintendent Hendricks under date of August 2,
1904, states:
" The examination of the New York Life Insurance Com-
pany— made under the direction of your commission of ap-
pointment dated January 11, 1904 — Shaving been completed,
I beg to transmit to you the result of said examination in the
accompanying report showiag the condition of the company
December 31, 1903, confirming the correctness of its annual
statement to the Insurance Department for the calendar year
then ending, and likewise verifying the annual returns for
the four previous years succeeding the prior examination
made to December 31, 1898.
With regard to the company's disbursements the report con-
tinues:
"A complete checking and auditing of these items in .their
entirety would have been a task so. lengthy as to be impossible
Report of the Committee. 271
of accomplishment within any reasonable period. ISov would
it, I think, have proved more thorough and complete than the
method adopted in this and other examinations of life insur-
ance corporations of this -magnitude of calling for accounts
and' vouchexs at random.
" The hulkiness of this portion of the examination work was
rendered even more extensive than usual in the present in-
stance by reason of the niimerous returns required by this
company of its (approximately) 200 cashiers who report their
premium collections and make remittances to the home office
daily. This, as will be seen, would for the year 1903 involve
the handling of some 60,000 separate accounts alone.
" Receipt vouchers to a considerable number, covering dis-
bursements on every account, have been examined and traced
through all subordinate books of initial entry from cash to
ledger. Check books and returned checks were also liberally
examined in connection with these receipts for the payment
of moneys by the company. The result of this work I believe
amply justifies the conclusion that all disbursements found-
to have been made incidental to the expense of conducting
business were in no sense excessive, unreasonable or not war-
ranted.
" The officers and representatives of the company gave your
examiners full and free access to all its records and aided
them in every way in their endeavor to accomplish the work
thoroughly and expeditiously."
The Equitable Life Assurance Society was examined in 1902.
Like the others it was conducted throtigh the ISTew York office and
purported to be a complete examination. But its perfunctory
character is sufficiently shown by the fact that the report of the
examiner fails to give the slightest intimation of the existence of
any of the abuses which, recently disclosed, have outraged public
sentiment. There is no hint of extravagant expenditures, of ir-
reo-uhar accounts, or of the manipulation of corporate investments
for the profit of the officers. The palpable evasion of the law gov-
erning the annual statement in the making of the pretended " end
of the year " loans, although known to the examiner, was left
unchallencged. In his report under date of October 13, 1902,
Mr. Vanderpoel said:
" The company's condition was certified to as the result of
an examination by the Insurance Department of New York,
272 Legislative Insurance Investigation.
made in the years 1S94-5, said examination having been
brought down to December 31, 1894. The scheme of the
present examination, among other things, contemplated the
plan, adopted in ^previous exarminations, of selecting at ran-
dom various items of receipts and disbursements, as 'reported
in annual statements since 1894, and verifying the accuracy
of the same by an audit made from a checking of the numer-
ous vouchers from which these items were derived.
" In the case of receipts and disbursements represented in
the accounts of agents, both domestic and foreign, every
agent's report to the company, rendered since 1894, has been
examined and followed into the subsidiary cash used by the
company in posting these voluminous accounts in its books
of original entry. From them the entries- were checked to
journals and finally into ledgers, the totals of which are re-
turned in the- several statements made to the Insurance De-
partmeiit since its examination of the company in 1894.
Thus the various items of premiums, commissions and allow-
ances to agents, medical expenses, advertising, dividends to
policy holders, taxes, foreign exchange, etc., have been sever-
ally investigated and traced in the manner outlined above,
into the annual statements referred to.
" The examination was begun in April last, and has occu-
pied the entire attention of the examining force until the
present time. Every facility has been accorded them, by the
representatives of the company in its endeavor to expedite
the work, and ample opportunity has always been afforded
to investigate and verify the nature of all transactions relat-
ing to the conduct of its affairs."
The first criticisin of the management of this company was in
the report of the superintendent in June, 1905, after dissensions
among its officers had brought censurable practices within the
public cognizance.
Practically it may be said that in the case of these large com-
panies no serious effort to insure the correct administration of
their affairs has been made until within the last year, while mis-
leading reports, conveying the impression that such matters had
been the subject of investigation, have from time to time been
presented officially to the Legislature and distributed as public
documents, thus placing upon the management of these companies
transacting their vast business throughout the world the seal of
official approval.
Report of the Committee. 273
This condition lias not resulted, as has been stated, from lack
of legal authority either to inquire into the irregularities now
exposed or to compel reports which would have disclosed them.
No substantial amplification of the powers or authority of the
department seems necessary. It is recommended hereafter in this
report that the superintendent be empowered to examine persons
not officers or agents of the corporation who may be deemed to
possess material information. It' is also recommended that the
companies be required to furnish additional information in their
annual statements, but such information could have been required
by the superintendent. Most of the evils which have been dis-
closed by the investigation would have been impossible had there
been a vigorous performance of the duties already laid upon the
department, a vigilant watchfulness in the interest of policy-
holders, and a courageous exercise of the powers which the statute
fonfers.
REMEDIAL LEGISLATION.
The matters demanding the consideration of the Legislature
for the purpose of- remedying existing evils and of establishing
more securely the business of life insurance in this State may be,
grouped under the following heads:
(1
(2;
(3
(4:
(5
(6
(7
■(8
(9
(10
(11
(12
(13
(14
(15
(16;
Organization of life insurance corporations.
Control, or the rights of policy holders in the election of
directors.
Retirement of stock.
Investments,, including syndicate participations.
Limitation of new business.
Political contributions.
Lobbying.
Limitation of expenses.
Valuation of policies.
Eebates.
Surrender values.
Ascertainment and distribution of surplus.
Eemedies of policy holders, or right to resort to the courts.
Forms of policies.
Publicity and State supervision.
Penalties.
OEGAWIZATION OF LIFE INSUEANCE OOEPOEA-
TIONS.
Under existing law a mutual life insurance corporation without
capital stock cannot be organized save for the purpose of trans-
acting business upon the co-operative or assessment plan or upon
the so-called " stipulated premium " plan or as a fraternal society.
In other words. Article II. of the Insurance Law, under which life
insurance corporations transact business upon the ordinary level
premium basis with full legal reserve, seems to be inapplicable
unless the company has a capital stock. Prior to 1849 the busi-
274
Report of the Committee. 275
ness of insurance had been transacted largely by corporations
created under special acts. A general insurance law applicable to
marinp, fire and life insurance companies was passed in 1849
(chapter 308). In 1853 a general law was enacted providing for
the formation of life insurance companies (chapter 463). The
provisions of these general acts relative to the formation of cor-
porations with capital stock were substantially retained in the re-
vision of 1892 (Article II. of the Insurance Law relating to " life,
health and casualty insurance corporations "). Under amend-
ments of Section 52 of the Insurance Law life insurance corpora-
tions, originally organized as purely mutual have been permitted
to reincorporate so as to come under Article II., which now gov-
erns both stock companies and such reincorporated mutual com-
panies. We have therefore in this State, exclusive of assessment
and fraternal organizations, mutual life insurance companies cre-
ated by special act, mutual life insurance companies subject to the
* provision of Article II. through reincorporation and stock corpora-
tions either formed under the present Insurance Law or previously
created; but there is no general provision or plan for the organi-
zation of mutual level premium companies.
It would 'appear to be an anomaly in the law that a life ip Fr-
ance corporation may be formed upon a purely mutual basis to
transact business as a co-operative or assessment concern without
adequate reserves, while a mutual company is not permitted to be
formed in such a manner that a full reserve through a proper
valuation of its risks may be required. In all successful life in-
&uranv,e companies the capital stock soon com.es to bear an insig-
nihi^'ant relation to the resources of the company provided by its
pohcyholders. The plan of procuring the funds nece^avy to start
the corporation through a subscription to shares is of obvious con-
venience at the outset, but if the corporation is ever to be estab-
lished upon a secure basis it must be by a distribution of its risks
over a large number of policyholders, who, whatever their formal
relation to the comp'any, ha^e in effect combined in a common
adventure to provide protection to all from a loss which in time
is certain to fall upon each one. Without going so far as to pro-
hibit the further organization of stock corporations it would seem
to be wise not to prohibit, but rather to encourage, the formation
of mutual companies upon a full legal reserve basis, provided suit-
able guaranties are given of the bona fides and soundness of the
eiiterprise.
,276 Legislative Insurance Investigation.
The Committee therefore recommends that Article II. of the
Insurance Law be so amended as to permit the formation there-
under of mutual corporations -without capital stock to transact .
the business of life insurance and for such other purposes as are
authorized to be connected thereTsdth in the ease of stock corpora-
tions; provided that at least 500 persons have subscribed in writ-
ing to become membei^ therein in the aggregate amount of at
least $1,000,000 to be insured upon their lives, and shall have
each paid in one full annual premium in cash upon the insurance
subscribed for, and provided further that it shall make the same
deposits with the Superintendent of Insurance that are required
of stock corporations formed for similar purposes. A company
thus organized will provide all the security that is afforded on
the formation of a stock corporation and a much greater assur-
ance of success through the membership witb which it begins
business.
Section 200, permitting the incorporation of companies upon
the co-operative or assessment plan, should be amended so as not
to permit -such companies to be incorporated in the future, and
foreign companies of this sort not already transacting business
in this State should not be permitted to enter the State. Com-
panies of this class, a,side from the voluntary reserves they may
maintain, afford practically no security to their policyholders other
than their capacity to levy assessments. In most cases their his-
tory presents a record of deception and delusion. Too frequently
they invite disaster by offering insurance below its actual cost and
inflict disappointment and serious loss upon those who have con-
fided in an attractive scheme for cheap insurance and are unable
to pay the readjusted rates which in the course of tiine must in-
evitably be demanded.
To increase the reserve required of such companies without
bringing it up to the full standard maintained in the case of
ordinary life insurance corporations doing business upon a level
premium basis will, the Committoe believes, prove futile. Such
a provision would not only leave the reserve inadequate, but
would promote misapprehension by creating an appearance of
security through compliance with a new though insufficient legal
standard. To this criticism the "Stipulated Premium" Law
(Article X. of the Insurance Law) passed in 1898 was justly
siibject. Its purpose was to enable a corporation to escape from
the general class of assessment companies and place itself on an
Report of the Commitiee. 277
apparently level or so-called " stipulated " premium basis al-
iliougli retaining the right to levy special assessments, but on
the other hand it was not compelled to maintain the full reserve
required of companies organized under Article II. nor a reserve
sufficient for the safety of its members. It could gain the ad-
vantage of receiving from the superintendent a certificate that
it had complied with the law as to reserves, although the reserves
so required were themselves insufficient. Only one company rein-
corporated under this law and that swiftly availed itself of an
opportunity which the law afforded it to reincorporate under
Article 11.
While on account of the serious injury which thereby might
be inflicted upon innocent policyholders the committee is not
pr^ared to recommend that existing domestic assessment or
co-operative corporations should be prohibited from continuing
their business and that foreign companies heretofore admitted to
transact business with the State upon this basis should be de-
barred therefrom, yet the committee is decidedly of the opinion
that no new corporations should be formed or admitted within
the State to do business of this character.
It is also the opinion of the committee that full opportunity
should be afforded to existing assessinent companies, which have
accumulated sufficient resources, to reincorporate under Article
H. of the Insurance Law, subject to a requirement for full re-
serve with reference to policies issued either prior or subsequent
to such reincorporation. The law should be amended accordingly.
The " Stipulated Premium " Law (Article X. of the Insurance
Law), now practically of no importance, but still furnishing
legal authority for the formation of corporations upon an unsat-
isfactory plan and also for the reincorporation of assessment
associations with a pretense of adequate reserves, should be
repealed.
As the Committee was unable to investigate fraternal societies,
it makes no recommendation with refesence to their organization
and suggests no amendments to Article VII. providing therefor.
278 Legislative Insurance Investigation.
CONTROL, OR THE RIGHTS OF POUOTHOLDERS IN
THE ELECTION OE DIRECTORS.
(a) Mutual and mixed corporaiions.
Of the fifteen life insurance corporations (exclusive of assess-
ment companies and fraternal societies) organized under the
laws of this State, four, the Mutual^ the New York Life, the
Mutual Reserve and the Security Mutual, are purely mutual
companies; in four others, the Manhattan, the Germania, the
Home and the Metropolitan, although stock corporations, policy
holders are entitled to vote for directors, and in each case, despite
various provisions as to qualifications and manner of voting, the
liolicyholders would, if they exercised their right; be able to
control the corporation. These companies, while a bare majority
ill number, represent more than two-thirds of the outstanding
insurance, exclusive of industrial policies, written by the fifteen
companies.
Notwithstanding their theoretical rights, policyholders have
had little or no voice in the management. Entrenched behind
jiroxies, easily collected by subservient agents and running for
long periods, unless expressly revoked, the ofiicers of these com-
panies have occupied unassailable positions and have been able
to exercise despotic power. Ownership of the entire stock of
an unmixed stock corporation scarcely could give a tenure more
secure. The most fertile source of evils in adminisbration has
been irresponsibility of official power. However much this may
be expected in the case of iibsolute stock control, in that of a
mutual company it proceeds from a flagrant disregard of the
law of its being. While it would be plainly unwise that the'
management of a life insurance company should be rendered
unstable or that its personnel should be frequently changed, it
is of the first importance that ofiicers should realize their direct
responsibility to those whom they represent and should rely
for their continuance in office upon proved efficiencv and not
upon a practical inability of the policyholders to depose them.
Difficult as the problem is, effort to solve it should not be
abandoned because of the enormous number of policyholders in
the large companies. Nor is it necessary to propose a plan which
will be sure to result in the" exercise of their rights by all policy-
holders. The end to be attained is to provide the means for a free
Report of the Committee. 279
and effective expression of the wish of the policyholders at all
times, BJid particularly in an emergency, and to destroy the ma-
chinery by which in the past they have been rendered all but
helpless. The business of life insurance, as has already been said,
is fundamentally mutual in principle and the best possible pro-
vision should be made for the representation of members in the
gpvemment of companies that avowedly transact their business
upon this basis.
Various suggestions have been made to the effect that policy-
holders in general are incompetent to vote intelligently for di-
rectors, and that their interest would be stimulated and a better
result attained if an electoral college or a class of general trustees
should be chosen, who in turn should select the directors. Tinder
such a plan the policyholders, it has been said, might be divided
according to geographical districts, within which men of dis-
tinguished character and experience might be chosen for the pur-
pose of representing the policyholders in thq election. To such
a plan, however, there is the obvious objection that the policy-
holder would be deprived of the right to cast his vote directly and
would be limited to the selection of a representative of his dis-
trict — only one of a large electoral body. It would be more
than likely to result in the end in the election by districts of men
pledged to the suppoii; of certain candidates for directorships,
while complicating the machinery incident to their selection. It
might easily increase to an important degree the difficulty of meet-
ing an emergency, by requiring separate campaigns on behalf of
policyholders in a large number of districts against an adminis-
tration possessed of the advantages of a well equipped organiza-
tion. The Committee is satisfied that the right of policyholders
to cast their votes directly for their trustees should be retained
and that in case it becomes important that they should combine
for the protection of their interests they should not be trammeled
by any reference to geographical or other divisions.
It has also been suggested that all voting by proxy should be
prohibited. This seems to the committee to be an ill-advised
remedy. It would be an altogether unjust restriction to compel
the policyholder to cast his vote in person. There is no good
reason vhy, as a meraber of the corporation, he should not have
the ordinary privilege of voting through his appointed agent.
To compel him to send his vote by mail would not provide an
adequate substitute, as this would tend to interfere with a desir-
280 Legislative Insurance Investigation.
able freedom. in the combination of policykolders and also pre-
vent policyholders at a distance and -without sufficient informa-
tion as to candidates from appointing those in whom they had
confidence to vote on their behalf. The evil does not lurk in a
vote by representation, but in the continuance of the representa-
tion under conditions which give peculiar advantages to the cor-
porate managers. Not only should the policyholder not be dis-
franchised by depriving him of the right to cast his vote directly,
but he should be privileged to combine with other policyholders
within or without his vicinage by giving proxies to trusted agents
who may either vote for specified candidates, or if desired, ex-
ercise their authori''/ according to their discretion. On the
other hand, it is the judgment of the committee that proxies
should not only be revocable at pleasure, but should be required
to be given within two months of the election and should be
valid only for that election. All existing proxies should be de-
clared void.
But while a policyholder should not be limited to voting in per-
son or by mail, there seems to be no sufficient reason why he
should not be permitted to vote in either of these ways if
he so desires. At first blush there seems to be a serious objection
to voting by mail in the lack of any suitable authentication of
the ballot, but this objection applies equally to proxies, which
are generally authenticated on]^ by the name of a witness. Bal-
lots sent by mail may be similarly authenticated, and voting in
this manner may properly be confined to the use of -forms of
ballots :^rnished for the purpose.
This freedom in voting, however, will be of slight Stid if further
opportunity is not afforded for arousing and concentrating the
interest of policyholders. Policyholders should have appropriate
means of learning who are their fellow policyholders, so that
they may -readily communicate with each other and effect* com-
binations. The management should name its candidates so that
their qualifications for the office of director may be discussed and
appraised and the importance of opposition duly estimated. Full
opportunity should be afforded for direct and independent nomi-
nations by the policyholders, and the company should be compelled
to' place in the hands of every policyholder a ballot con-
taining the names of all nominee^. In order to avoid the pos-
sibility of an attempt to forestall opposition by the nomination
of unexceptionable candidates and the subsequent substitution
Report of the Comm-ittee. 28.1
of an inferior ticket, the election should be limited to those who
have been nominated in a prescribed manner.
With these objects in view, the following plan is recommended :
At least five months prior to each election, lists of policyholders
having at least $1,000 of insurance in force, properly classified by
states and countries, giving names and addresses, but not the
amount of insurance, should be filed with the Superintendent oi
Insurance, and similar lists should be open to inspection at the
home office of the corporation. Lists, also open to inspection of
policyholders within each State and foreign country, should be
filed at the general agencies of the company in such jurisdic-
tions. The above limitation as to the amount of insurance will
serve to exclude the holders of industrial policies, who in the
Metropolitan Company number several millions. But it seems
impracticable to include them in the provision for open lists,
although they will retain their voting privilege. Voting should
be limited to those who have been insured at least one year before
the election, and whose policies are still in force when the elec-
tion is held. The Board of Trustees or directors should annually
nominate candidates to be voted for at the next election, and
should file its nominations with the Superintendent of Insurance
at least four months before the election, together with a designa-
tion of persons to receive proxies to vote for such candidates.
It should also be provided that any group of one hundred mem-
bers should be privileged to make and file with the Superintendent
independent nominations; together with names of persons who
Avill receive proxies to vote for the candidates, at least three
months before the election. The ,corporation should be required
at least two months prior to the election to mail to each policy
holder notice of ihe election, together with a suitable ballot con-
taining the names of all the candidates whose nominations have
been duly filed, vsdth properly addressed envelope inclosed for the
return of the ballot. The periods above mojitioned have been fixed
in order to give opportunity to reach distant policy holders. Votes
should be limited to the nominated candidates and suitable pro-
visions should be made for new nominations, and the casting of^
votes under proxies, in case of the death or incapacity of any per-
son nominated. Provision should also be made for the proper
custody of ballots received by mail and disinterested persons should
be appointed to act as inspectors of election.
282 Legislative Insurance Investigation.
To recapitulate, the laws should provide:
(1) For accessible lists of policy holders.
(2) For the nomination of candidates representing the admin'
istration.
(3) For independent nominations whenever desired.
(4) For the circulation by the compa:ny of ballots containing
names of all candidates.
(5) For the cancellation of existing proxies.
(6) For voting either in person, by mail or by proxy, but for
the limitation of the life of proxies to two months preceding a
given election.
It is believed that such a plan will promote a just conser-
vatism and the continuance in office of efficient administrators,
while affording the fullest opportunity for the expression of the
wishes of policy holders whenever there is reasonable ground to
believe that a change of management is advisable for the protec-
tion of their interests.
The present directors of mutual life insurance companies in
this State have been elected without the actual participation in
their selection of any considerable number of policy holders. It
is important that an opportunity should be given to the policy
holders to elect entirely new boards of directors as soon as tho
provisions of law above recommended can be made applicable.
To that end the Committee recommends that a special act should
be enacted providing for the expiration of the terms of office of
existing directors of such companies on the 15th day of No-
vember next and that the annual meetings which would otherwise
be held at an earlier date should be postponed to that time. In
this way it will be possible for lists of policy holders to be filed
under the statute, for nominations to be made and for the policy
holders to cost their votes in person, by proxy or by m!lil, as
they may desire. All existing proxies should be declared void
so that no proxies should be voted at such election other than
those which are given under the statute within two months prior
thereto. The first election should be under the supervision of
-the Superintendent of Insurance, who should be directed to ap-
point inspectors of election and see that it is conducted according
to law. The new boards of directors should divide themselves
into two classes so that thereafter one-half of the board may be
elected annually and errors in management promptly corrected.
As the annual election in one of these companies would other-
Bepori of the Committee. 283
wise take place in April, it is important that tliis special act should
be passed immediately.
(b) Stock corporaiions.
While both stock and mutual corporations have exhibited the
abuses incident to management without a becoming sense of re-
sponsibility, the latter are more amenable to the demands of public
sentiment and proper provision for the exercise of the rights of
policy holders provides a cheek apart from the necessities of com-
petition or the fear of judicial intervention. The advantages sup-
posed to reside in the control of a majority of the stock in corpora-
tions vyhere shareholders alone are entitled to vote have been illus-
trated by the excessive amotints offered for the stock of the Equi-
table Society, with dividends limited to seven per cent, annually
upon a par value of $100,000 and the business of which has been
conducted upon the most explicit representations that the Society
was committed to the miitual principle. Kepeatedly have its of-
ficers stated under oath that its stockholders had no interest in its
surplus and yet the purchase by a prominent financier of $50,200
of its stock in par value at a price of $2,500,000, despite an un-
equivocal statement of the absence of g^lfish intention and the
immediate transfer of the purchased shares to distinguished trus-
tees under a plan inviting the co-operation of policy holders in
the choice of directors, awakend no little iirotest and was viewed
as a matter of serious concern by other financial interests. No
exception can be taken, to the ability, the judgment and the char-
acter of those who are acting as trustees of a majority of the^Equi-
table shares, but their appointment and their efforts to ascertain
,the wishes of the policy holders as a guide to the selection of an
ultimate majority of the Board affords a most important exposi-
tion of the conviction that stock control of large life insurance cor-
porations no longer commands the public confidence.
The manner in which the stock of the Provident Savings was
acquired some years ago, largely through the use of the company's
own funds, and the efforts to secure a control of the Bankers' Life,
as a prominent feature of an investment company, point clearly
to the dangers of stock ownership, witli exclusive voting privi-
leges, as inviting speculative purchases with an eye to the benefits
whicii may directly or indirectly flow fjrom the control of the
business and property of such corporations.
Tlie policy holders, while having only contractual rights, are not
in a position to withdraw without loss in case the control of the
284 Legislative Insurance Investigation.
company is abused ; they have engaged in a venture and contrib-
uted their money for the success of a corporation without prospect
of return unless they continue their policies. It is but just that
in view of the peculiar nature of the institution they should be
admitted to a voice in the selection of directors and that this
should be accomplished by direct permission of law without com-
pelling those who are desirous of giving them this rght to resort
to the indirect method of a voting trust, which necessarily, under
existing statutes, is a temporary expedient.
While the constitutionality of giving to policy holders the right
to vote for directors in stock corporations without thp unani.tnous
consent of the stockholders- has not specifically been adjudged, the
recent opinions rendered by the Appellate Division of the Second
Department in the case '-'f Lord vs. Equitable Life Assurance
Society favor the conclusion that such a law would be sustained,
ilr. Justice Maddox at Special Term had announced a contrary
view and upon the decision of Ihe appeal the matter was discussed
in the prevailing opinion of ifr. Justice Woodward. After re-
ferring to the general proposition announced in a recent case by
Afr. Justice Ilateh, that under "its rpscrve power to alter and re-
peal charters the Legislature was competent to regulate and con-
trol the internal management of a corpo>ration so far as it had
relation to the public and concerned the policy of the State, even
though the exercise of the pov/er added to the burdens of the
stockholder, by decreasing his liability, or dihiinished the value
of his stock or changed the name, offices or proportion in manage-
ment and control of the corporation, the leai-ned Justice said:
" AVhile the authorities are, as we believe, clear upon the
proposition stated by Mr. Justice Hatch in reference to cor-
porations generally, we are equally persuaded that in refer-
ence to life insurance companies the power may be very
appropriately exercised. As we have already pointed out,
the character of life insurance contracts is peculiar; the
annual premiums not only pay the current risk, but they con-
stitute partial payments upon the full life term, subject to
forfeiture under certain -stated conditions, and the policy
holders are peculiarly interested in the life of the company
and the method of its management. In fact, as a practical
proposition, although the policy holders technically occupy
the relation of creditors to the corporation they are the cap-
italists; they are the ones who furnish the money upon which
Report of the Committee. 285
the business is conducted. ' The insured parties are asso-
ciates in a great scheme. This associated relation exists
whether the company be a mutual one or not. Each is inter-
ested in the engagement of all; for out of the coexistence of
many risks arises the law of average which underlies the
whole business' (New YorJc Life Insurance Company vb.
Statham, 93 U. S., 24, 31). The original stock subscription
of $100,000, under the provisions of the law as it stood at
the time of the organization of the defendant company, was
invested in securities ' and deposited with the Comptroller,
and this capital has never been employed in the business, ex-
cept as it has stood as a guarantee fund for the payment of
policies. All the rest of the capital, with a surplus of $80,-
000,000, has been contributed by the policy holders in a com-
pany which pledged itself in its charter to conduct its busi-
ness on the mutual plan" and to distribute at intervals an
equitable proportion of the surplus after providing for all the
liabilities of the company. The original investment is hardly
a factor in the affairs of the company; it has never been in-
vested in the sense that capital is invested in a manufactur-
ing corporation, and while the stockholders are technically
the equitable owners of the assets of the corporation the
policy holders who have life contracts to be fulfilled and who
have been promised aji equitable distribution of the surplus
are the ones who have furnished all of the active capital as
well as all the vast surplus. Nearly $1,500,000,000 of these
policies are now outstanding; over half a million of people
are annually contributing to the resources of the defendant
and each one of these contributors if he is the holder of a life
policy has an interest in the company, a tangible interest in
the surplus and the continued solvency of the corporation.
Why, then, if the Legislature shoujjd deem it 'imprudent to
trust these assets and the corporate business to the directors
chosen by the representatives of the $100,000 of the original
capital stock, should there be any question as to the author-
ity of the sovereign power of the State to change the method
of electing directors? The stockholders would not be de-
prived of any property; they would still have their stock;
they would still have the right to participate in the assets of
the corporation to the extent of their holdings in the event
of the corporation going into dissolution; they would still
286 Legislative Insurance Investigation.
have the right to participate in the choice of directors; they
would still have equitable rights which the courts might pro- ,
tect in the event of abuses in the management of the com-
pany; they would have all of the rights which they now have,
except the right of the representatives of $100,000 of idle
capital to control the millions of dollars of assets of the de-
fendant which are dedicated to the interests of policyholders
•and in this way they would have a voting power all out of
proportion to the amount of their investment. "What is there
in this inconsistent with the right of the Legislature to amend
the charter and to take from the stockholders a portion of
their powers over the affairs of a corporation in which so
many are vitally and financially interested? There is no pre-
sumption that directors elected by policyholders' would be
false to their trusts or that they woud arbitrarily exert their
power even though they constituted a majority of the board.
They would still be charged with the duty of honestly manag-
ing the affairs of the corporation in the interests of the cor-
poration; it would still be their duty to administer the funds
belonging to the corporation under the letter and the spirit
of the law and every dollar's worth of stock would be owned
by the same persons who own it now, or their assigns, and
the stockholders would have the same property interest in the
corporation that they now have. Surely it may not be said
that it is not within the reserve power of the State to so regu-
late the internal affairs of one of its own creations that the
creature may not be compelled to carry out in good faith the
purpose for which it was created, and what is necessary in
this regard is within the discretion of the Legislature.
Whether the scheme which is proposed and which is now be-
fore us is a good one or not is not here for determination; we
are dealing now with a question of power and we have no
doubt that the Legislature might if it saw fit so amend the
law of this State as to permit of the choice of a majority of
the directors of the defendant cijmpany. Whether it has
done so is quite another question which we will now discuss."
The precise question presented in the Lord suit was whether
the directors of the Equitable Society had authority under section
52 of the Insurance Law so to amend the charter as to provide
that of the fifty-two members of the Board of Directors twej tj-
eight should be chosen by the policyholders and twenty-four by
Report of the Committee. 287
the stockholders in a prescribed manner. Section 52 contains a
broad grant oi power permitting an existing corporation to rein-
corporate under the Insurance Law, and to adopt through the
action of its Board of Directors, " in whole or in part, a new
charter in conformity herewith and include therein any or all
provisions of its existing charter and any or all changes from its
existing charter to cover and enjoy any or all the privileges and
provision of existing laws which might be so included and enjoyed
if it were originally incorporated thereunder." One of the priv-
leges of existing law is the right upon incorporation to provide
"for the manner of electing directors and ofScers." Notwith-
standing the powers conferred by section 52 a majority of the
Appellate Division held in the Lord case that it should not be
construed as contemplating an authority to the directors to con-
fer upon policy holders a right to elect a majority of the directors,
and that so radical a change should be manifested in explicit
and unambiguous terms. Mr. Justice Willard Bartlett concurred
in the result of the decision, but upon a different ground, to wit,
that the directors could not so amend the charter "as to deprive
a stockholder of the right to participate in the eleetioii of every
director of the corporation." He added: "While the board may
permit policy -holders to vote for every director it cannot law-
fully exclude stockholders from the exercise of the same right."
Mr. Justice Hooker dissented from the majority upon the ground
that section 52 authorized the action taken by the directors. But
while the court was divided as to the scope of this section, there
appears to have been no difference of opinion as to the power of
the Legislature to confer upon policy holders, without the consent
of the stockiiolders, the right to vote for directors.
While the determination of its validity must necessarily be left
to the courts, the committee believes that all doubt of legislative
intention should be resolved by amending the law so as to con-
fer upon the directors of stock life insurance corporatipns an
janmistakable authority to grant to policy holders the right to
vote for directors, and thus- to have that voice in management to
which their preponderate interests justly entitle them. It may
not be necessary, as a matter of law, but it would more accord
with the general sense of equity that such a change should be
acquiesced in by a majority of the stockholders, and the Cora-
niittee believes that with an enlightened public sentiment it will
not be difficult to obtain such assent.
288 .Legislative Insurance Investigation.
Section 32 of the Stock Corporation Law proTides that any stock
corporation "may alter its certificate of incorporation so as to
include therein any purposes, powers or provisions which at the
time of such alteration may be applied to corporations engaged in
a business of the same general character or which might be
included in the certificate of incorporation of a corporation organ-
ized under any general law of the State for a business of the
same general character," by filing an amended certificate after
the same has been authorized by votes of a majority of diiv-ctor?
and of stockholders representing at least three-fifths of the capi-
tal stock. It has been questions' whether this section was appli-
cable to insurance corporations in view of the scheme of amend-
ment provided by section 52 of the Insurance Law. It seems to
the Committee that an amendment to the Insurance Law should
be enacted, giving to the directors of life insurance corporations
with capital stock, authority to confer upon policy holders the
right to vote for directors with the concurrence of a majority of
the stock, and the Committee so recommended. Whenever the
voting, privilege shall be given to policy holders, statutory pro-
visions for open lists, nominations and 'balloting, as in the case
of mutual companies, should become applicable.
EETIKEMElsTT OF STOCK.
!N"ot only should stock corporations be permitted to give to
policy holders the right to vote, but an opportunity should be
afforded for conversion into purely mutual companies. The com-
mittee does not believe that this conversion should be made com-
pulsory, but the law should not stand in the way of its accomplish-
ment upon a just basis, if desired by the parties in interest. After
the stock has served its purpose by providing a suitable guaranty
at the beginning of business and the company has reached a
stage where without injustice it can be retired and the company
be managed exclusirely by and in the interests of the policy^
holders, this object should be attainable under legal sanction.
Suitable safeguards should be provided so that the plan of retire-
ment should not deprive any stockholder of his right of property
without his consent, and on the other hand should not impair the
obligation of the contracts of policyholders. The withdrawal
under the guise of a- retirement of stock of any portion of surplus
equitably belonging or awaiting apportionment to policyholders
Report of the Commiitee. 289
should not be countenanced in the slightest degree, apart from
any question of the power of the Legislature to authorize it.
But there is no reason, if the parties are able to formulate a
proper plan, why the stockholders and the policyholders should
not be permitted to agree upon a payment to the stockholders
of an amount fairly determined to be the present value of the
stock. In other words, the law should provide that the stock
may be retired u'non an equitable plan providing for the payment
to the stockholders out of the accumulations of the company of
such an amount as may fairly be taken to be the value of the
stock with reference to its par value, the dividends lawfully pay-
able thereon, and the eventiial right, if any, of the stockholders
in any accumulations of the company, and without impairing the
eventual rights of the policyholders in such accumulations.
Provision should be made for the consummation of the plan
only after it shall have been adopted by a majority of the directors
and approved at a meeting of stockholders called for the purpose
by a vote representing the majority of the stock, and shall also
have been approved in writing by the Superintendent of Insur-
ance and by a majority of the policyholders voting at a meeting
of policyholders called for the purpose under the supervision of
the superintendent and at which policyholders shall be entitled
to vote in person, by proxy or by mail. In this manner full oppor-
tunity would be afforded for the discussion of the plan of retire-
ment and the policy of converting the company into a mutual
organization could be carried out only in case of a widespread
conviction of its wisdom. The superintendent should be
instructed to withhold his approval unless the company upon
reincorporation and after the retirement of its stock under the
proposed plan shall retain funds sufficient to maintain its deposit
with him and to meet all liabilities, including its legal reserve,
according to the valuation of its policies and all surplus funds
and accumulations, save the amount agreed to be paid to the
stockholders.
INVESTMEl^TS.
TTnSer section 20 of the Insurance Law every insurance corpora-
tion transacting business in this State is entitled to purchase,
hold and convey real property only for the following purposes;
" 1. The building in which it has its principal office and
the land upon which it stands.
290 Legislative Insurance Investigation.
" 2. Suet as shall be requisite for its convenient accommo-
dation in the transaction of its business.
" 3. Such as shall be acquired for the accommodation of
its bitsiness.
" 4. ' Such as shall have been mortgaged to it in good faith
by way of security for loans previously contracted or for
moneys due.
" 5. Such as shall have been conveyed to it in satisfaction
of debts previously contracted in the course of its dealings.
" 6. Such as shall have been purchased at sales upon judg-
ments, decrees or mortgages obtained or made for such debts.
" Y. Such as shall have been acquired under sections thir-
teen and fourteen of the general corporation law."
It is provided that the property specified in subdivisions 4; 5
and 6, which shall not be necessary for its accommodation in the
convenient transaction of its business, shall be sold and disposed
of within five years after its acquisition, unless the time shall be
extended as directed in a certificate from the Superintendent of
Insurance upon the ground that the interests of the corporation
will suffer materially by a forced sale.
Section 13 of the General Corporation Law provides that when
any corporation shall have sold or conveyed any part of its real
property, the Supreme Court may, notwithstanding any restric-
tion to which it may be subject, authorize it to purchase and hold
from time to time other real property upon satisfactory proof that
the value of the latter does not exceed the value of the property
conveyed within three years next preceding the application. By
section 14 o»i the same law any domestic corporation transacting
business in other States or foreign countries may acquire and
dispose of such property as shall be requisite in the convenient
transaction of business.
Despite these restrictions the testimony taken by the commit-
tee discloses flagrant abuses in connection with investments in
real estate. Under the guise of procuring suitable accommoda-
tions for the transaction of business excessive amounts have been
expended in the acquisition of land and buildings iiot necessary
in any proper sense for the uses of the corporation, which yield
a poor return upon the amount expended. Only by successive
reductions of the book value have the companies been able to show
earnings equal to those demanded by the law regulating their
reserves. These reductions of book value, in order to exhibit a
Report of the Committee. 291
given rate of income, while important for the purpose of avoiding
an overrating of assets, frequently tend to obscure the large sums
which have either been lost or rendered unproductive. The com-
mittee recommends that the annual statements of insurance cor-
porations should be required to show not only the valne at which
the properties are carried upon the books. and the claimed market
value, but the actual cost in each case, together with the gross
and net income received therefrom. No further purchase of prop-
erty should be permitted under subdivisions 1 and 2 of section
20 of the Insurance Law or under section 14 of the General
Corporation Law without the consent of the Superintendent of
Insurance upon his finding that the acquisition is necessary.
Section 13 of the General Corporation Law, providing that the
Supreme Coiirt might authorize purchases of real property in
lieu of similar property disposed of, should be rendereli inapphca-
ble to insurance corporations.
The provision for the disposition of real property within five
years should be extended so as to include property acquired for
the use of the company whenever it shall no longer be needed,
as well as property obtained in satisfaction of debts or under mort-
gage foreclosures. The practice of tlisposing of real estate by ex-
change, which has led to serious abuses, should be prohibited.
Such property should be disposed of, within the time prescribed
by law, by sale.
The present law regulating investments in securities requires
that the minimum capital and the deposit with the Superin-
tendent of Insurance required of domestic life insurance com-
panies shall be invested in the stocks or bonds of the United
States or of this State, or in the duly authorized bonds of a
county or incorporated city in this State, or in bonds and mort-
gages on improved unencumbered real property in this State
worth fifty per cent, more than the amount loaned thereon. The
residue of the capital and surplus of a domestic life insurance
corporation may be invested in or loaned on the pledge of like
securities or in the public stock or bonds of any one of the United
States, or (with the consent of two-thirds of its board of direc-
tors, managers or finance committee) in bonds issued by any city,
county, town, village or school district of this State pursuant to
law, or in the stocks, bonds or other evidences of indebted,ness
of any solvent institution incorporated under the laws of the
United States or of any State thereof (except similar life insur-
292 Legislative Insurance Investigation.
ance corporations), as well as in the real estate wLich it is author-
ized to hold. It may also in other States or foreign countries
invest the funds required to meet its obligations therein in the
same kind of securities in such jurisdictions in which it is allowed
to invest in this State. It may also make loans not exceeding
the lawful reserves upon the pledge of policies and their accumu-
lations. It is not authorized to obtain by purchase or otherwise
the control of any other insurance corporation.
The liberality of these provisions has tempted life insurance
companies to engage indirectly in enterprises foreign to the pur-
poses of their organization. Through the control of subsidiary
corporations, by means of stock ownership, some have practically
transacted the business of banks and trust companies. One com-
pany for many years has in this manner owned and conducted
a restaurant. In addition to investments in stocks insurance cor-
porations have placed millions of dollars at the disposal of other
companies through the maintenance of inactive deposit accounts
at low rates of interest. In their dealings in securities some
have sought, as one of the witnessess frankly expressed it, to
approach as closely as possible to the business of bankers. In
this manner purchases have been made, not for investment but
for resale; and the large companies have freely furnished their
support to numerous financial ventures through participation in
the underwritings of syndicates.
Most syndicates are merely partnerships formed for a single
transaction. They are gotten up to carry through an operation
that is a. larger one than is feasible for a sigle bank or banking
house or individual. The ordinary type of syndicate agreement,
and that in which these companies have usually been participants,
is for placing upoii the market a large output of corporate securi-
ties. Often the interests of the makers of the, security demand
the immediate use of a large amount of money. And, in order to
realize promptly such large amount, the makers are inclined to
sell the entire output at a price considerably below that which
can be realized at a gradual sale. The securities are therefore
offered in lump to some bank or banking house at a lower price
and are forthwith purchased in lump. In connection with thia
purchase the party taking the securities, who is known as the
syndicate manager, invites a considerable number of associates
to agree to take a certain portion of the securities at the original
price within a certain time, if called upon ,to do so. The securities
Report of the Committee. 293
are then put upon .the market for gradual sale at a higher price.
If the public take them at the proffered price no call is made upon
the participants or underwriters, except, perhaps, for certain ex-
penses or temporary advances. In consideration of the partici-
pant's contingent obligation to take up his share if called upon,
he is given a proportionate share of the profits from the sale
to the public. Sometimes the participant is permitted to with-
draw for investment securities to an amount equivalent to his
subscription, relinqiiishing his interest in the profits on the pub-
lic offering. In a great many cases persons undertaking these
financial operations find considerable difficulty in procuring part-
ners in the enterpise. Very many of the syndicates are
■ hazardous_and many have entailed serious losses upon the partici-
pants. In many instances, however, the securities are of such a
character that a considerable profit is practically icertain. The
reason for putting out the securities in such a way is merely be-
cause the makers of them have not the facilities or the time for
themselves making direct sale to the public. In this class of
cases the " giving " of participation by the original purchaser is
in the nature if a favor'bestowed. The syndicates in' which the
life insurance companies and their officers have participated have
usually been of the last-named description. It is quite obvious
that in cases of this kind, where participation is offered to a
life insurance company the dominant motive is to- secure the good
will and the favor of the company as a purchaser of securities
rather than to get the protection of the company as an under-
, writer. And those who, as officers and members of finance com-
mittees, have, determined the course of the company in its partici-
pations and purchases have frequently been in a position to profit
by their action on behalf of the company.
It has been sought to justify this course of business upon the
ground that in the main it has proved profitable. It is said that
subsidiary organizations furnish appropriate channels for the use
of the large accumulations of an insurance company, that through
syndicate participations, securities have been obtained at bottom
prices and that both through such underwritings and through
transactions on joint account and speculative purchases, with a
view to resale upon a rising market, the companies have been
enabled to make large profits. The dangerous tendencies of these
practices are obvious. They have brought insurance companies
into close relations with railroads, banks, trust companies, bank-
294 Legislative Insurance Investigation.
iug Bouses and the flotation of new enterprises, thus involving
them in the manifold transactions of the financial world, not in
their normal relation as creditors through suitable investments,
but as co-owners of the corporations and promoters of the under-
takings to which they have thus become allied. They have weak-
ened the sense of official responsibility, multiplying the opportuni-
ties for gaing, both direct and indirect, to officers and directors
through the use of the company's funds, and making easy the
exercise of official discretion at the promptings of self-interest.
The- profits made possible under astute management of those
closely identified with important financial operations furnish
no answer to the criticism of this policy. It is conceivable that
the companies might make money if they engaged directly in the
brokerage or banking business. Even by the manipulation of the
stock market, it may well be that with the special advantages they
have enjoyed, they could have added largely to their accumula-
tions. But they were not incorporated to make money by specu-
lation, by barter, by purchase for resale or by the development of
industry. They were chartered to furnish life insurance, and the
true measure of their power and their duty in the handling of
their funds is to invest them with due conservatism, to the end
that they may be able to discharge their obligations. If in this
manner they should make less money they would also be less
likely to court disaster. They should not attempt, and should
not be permitted to attempt, to undertake by indirection ' that
which may not be done directly under the provisions of their char-
ter. Many of the arguments which have been urged in support
of the control by life insurance companies of ancillary banks and
tnist companies would justify a like control of railroads and in-
dustrial enterprises. No tendency in modem financial conditions
has created more widespread apprehension than the tendency; to
vast' combinations of capital and assets. But while in the case
of railroads and industrials these vast amounts are mostly fixed
in particular productive activities, the larger part of the huge
accumulations of life insurance companies consists of assets read-
ily convertible into money and susceptible of application to varied
uses. It is this fact which has placed the officers and members
of finance committees of life insurance companies in positions of
conspicuous financial power and has pointed the necessity' of
guarding against abuses by the requirement of conservative and
durable investments.
Report of the Committee. 295
Investments in stocks should be prohibited. They are funda-
mentally obectiouable, as the corporation, instead of holding a
secured obligation, acquires a proprietary interest in another
business, with rights subect to all indebtedness which may be ,
created in the conduct of it and often direct liabilities as stock-
holders. This interest must be nourished and supported. In-
stead of being a creditor with adequate security, to which upon
default the corporation may resort, it assumes the responsibili-
ties of proprietorship and must contribute from the accumula-
tions provided by the policyholders in order to sustain the
enterprise. If the stock holdings constitute a small minority
the investment is at the mercy of administrators chosen by the
majority stockholders. If the stock interest be a large one, it is
frequently found advisable to increase it until a substantial con-
trol is effected, and the insurance corporation is not only engaged
in a different enterprise, but directly undertakes its management,
such relations afford ready opportunities to conceal irregular
transactions and to hide the malversation of funds. Long ago
the Prussian- Government refused admission to its jurisdiction
of any insurance company investing in stocks, and the restriction
has been found salutary and not burdensome. The Germania,
doing a large business in Prussia, has readily complied with its
laws and the New York Life, which, with some reservations -not
publicly proclaimed, has professed compliance with the Prussian
rule, has not been embarrassed in making its investments. The
Committee is satisfied that the extension of a similar rule to all
companies will remedy many of the evils to which the investiga-
tion has directed attention.
Loans secured by tifst mortgage on improved real property
siti.Ated in other States of the United States, where the property
is worth at least 50 per cent, more than the amount of the loan,
should be permitted without any restriction having reference to
the security of policy holders within a particular jurisdiction.
It is difficult to draw any satisfactory line with reference to
investments in negotiable bonds. It would not be advisable to
restrict the investments of life insurance companies in the same
manner as those of savings banks. The securities available for
investment under such limitations would not be large enougli
in amount to furnish a sufficient field for the profitable invest-
ment of the large accumulations of insurance corporations. It
has been feared that such a restriction would prove to be too
296 Legislative Insurance Investigation.
severe and might operate so far to increase tlie demand for the
favored securities as to preclude a satisfactory rate of income.
After much reflection upon this subject the Committee is of opin-
ion that no satisfactory line can be drawn with reference to in-
vestments in bonds, other than collateral trust bonds, without
hampering the companies in the enjoyment of that reasonable
freedom of investment necessary to ensure the return upon which
the calculations of their risks are based. Investments in col-
lateral trust bonds, where the greater part of the security con-
sists of the hypothecated stocks of corporations, should not be
permitted. But otherwise, the field of investment being limited
to evidences of indebtedness,- it is believed that the choice of par-
ticular scurities may better be left to the discretion of the
directors.
Summarizing these stiggestions, the Committee recommends
that the law as to investments in securities should be amended so
as to provide :
_(1) That no investment in the stock of any corporation shall
be permitted, except in public stocks of municipal corporations.
(2) That investments in bonds secured to the extent of more
than on«-third the value of the entire security therefor by the
hypothecation of corporate stocks shall be prohibited.
(3) That no loans shall be made upon stocks and bonds which
are not the subject of purchase under the above provisions.
(4) That every company now owning stocks or bonds of the
prohibited classes shall be required to dispose of the same within
five years from December 31, 1906, and each year prior thereto
shall make a reduction" of the amount of such investments to an
extent approved by the Superintendent of Insurance.
(5) The statute should also forbid all syndicate participations,
transactions for purchase and sale on joint account, and the mak-
ing of any agreement providing that the company shall withhold
from sale for any time, or subject to the discretion of others, any
securities which it may own or acquire.
(6) It should also be provided that no officer or director should
be pecuniarily interested either as principal, co-principal, agent
or beneficiary in any purchase, sale or loan made by the corpora-
tion, except in case of a loan upon his policy.
It is not believed that the companies will be deprived of suit-
able advice and direction by the prohibition of dealings with ofB-
cers and directors, or with firms of which they may be members.
Report of the Committee, 29Y
The business of the company should be transacted under the
direct supervision of the trustees and no opportunity should be
afforded for a conflict between their personal interest and their
oflicial duty. It is entirely indefensible to j)ermit one to act
as the trustee of an insurance corporation in a transaction in
which he may benefit, apart from his interest in the corporation,
by the exercise of his discretion. The size and important finan-
cial relations of the great companies have blinded many to ele-
mentary principles of administration, and whatever the immediate
result of the proposed changes in their loss or gain, it is essential
to their maintenance upon a sound basis that they should be freed
ffom the alliance and practices which the testimony before your
Committee has disclosed.
Foreign companies should not be entitled to transact business
within this State unless their investments are of the same char-
acter as those required of domestic corporations.
LIMITATIONS or NEW BUSINESS.
The business of the Mutual, the Equitable and the New York
Life has grown beyond reasonable limits. Notwithstanding the
fact that they have long since passed the point where further
enlargement can benefit their policyholders, they have resorted
to every effort to obtain new business, regardless of the expense
which is reflected in diminishing dividends. Eearful of losing
prestige, the chief concern of each has been to keep up with the
others. Extravagant commissions have been paid and these have
been supplemented by liberal bonuses and prizes. Clubs have
been formed, conventions held, and money lavishly expended for
the entertainment of agents to excite them to their utmost en-
deavor. Some have sought to justify this mistaken course by
the claim that they were fulfilling a duty in distributing broad-
cast the benefits of life insurance. Much has been due to pride
of growth and zeal for impressive totals, while the huge accum-
lations of the companies and the great responsibilities involved
in their management have furnished pretexts for increased sal-
aries and extravagant administration.
Not only has the rivalry of the three companies proved detri-
mental to themselves, but it has acted as a spur to the smaller
companies, which to keep their footing have been compelled to
make outlays disproportionate to their abilities. There will be
no proper reform, of the insurance' business unless these waste-
ful measures are stopped.
f)
98 Legislative Insurance Investigation.
The growtli of the three companies has long been a matter of
grave concern to students of insurance conditions, No useful
purpose will be served by their becoming larger. Their member-
ship is so large and their resources are so vast as to make the
question of responsible control and conservative management one
of extreme difficulty, and their magnitude if permitted to grow
unrestricted will soon become a serious menace to the com-
munity. The prohibition of the issuance of new policies when-
ever the assets of the company reach a prescribed volume is im-
practicable. As premiums are constantly being received and
reserves increasing, no company could calculate with certainty
whether it was entitled to receive new business and the limit
would not affect the three companies with a just degree of uni-
formity. Thus if the limit were placed at $500,000,000 of assets
the Mutual would be close to the line, while a considerable mar-
gin would remain for. the other two companies, permitting them
greatly to extend their business, while the -Mutual, with less out-
standing insurance than the New York Life, would be debarred
from taking additional risks. Nor would it be wise to prescribe
the limit with reference to the total insurance in force. The
total amount of the business of the New York Life already
largely exceeds that of the Equitable and the Mutual, and a
limit which would suitably affect the former would place no
effective limitation upon the others, and in the case of the former
would result in requiring an unnecessary disorganization of the
agency force,
It is the opinion of .the Committee that the desired result can
be attained by limiting the amount of the new business which
each company may take to $150,000,000 a year. The total ter-
minations by death, maturity; expiry, surrender, lapse and other
decrease of the three companies in the year 1904 were as follows:
Mutual $129,126,2g0 00
Equitable - 139,513,210 00
New York Life ". 162,326,114 00
The suggested limii.don would suffice to maintain a requisite
vitality and a siiitable agency organization, while precluding a
further and unnecessary increase of business. There would no
longer be an excuse for extravagant commissions and unprofit-
able foreign branches would be discontinued, with the probability^
Report of the Committee. 299
that the larger part, if not the whole, of the new business wo\ild
consist of insurance upon lives .carefully selected in the United
States. With economical administration and under the restraint
of a wholesome publicity the three companies would thus be placed
upon a sound, conservative basis.
Une[uestionably the release of the smaller companies from the
strenuous compe-tition of the others would result in a severer
rivalry among themselves. To secure their normal and not too
hasty growth proper limitations should be applied to them as
well. In other words, they should be permitted to take only
such amount of new business as they may fairly be expected to
write by means of a reasonable outlay.
The result may be accomplished by requiring that the new
business should bear a suitable relation to the amount of insur-
ance already in force.
From an examination of the course of their business, and hav-
ing in mind the opportunities which will be afforded to the other
companies by the practical cessation of the competition of the
three leading companies, the Committee recommends that no life
insurance corporation doing business in this State (except a cor-
poration more than two-thirds of whose outstanding insurance
on December 31, 1905, consisted of industrial insurance), shall
in any year beginning with 190Y issue policies in excess of the fol-
lowing prescribed limit:
The limit of new business in any year shall be determined by
taking certain percentages of the total insurance in force on the
31st day of December of the preceding year, including only poli-
cies upon which the first premiums have been actually received
by the company as follows :
Total insurance less than $50,000,000 no limit.
Total insurance between $50,000,000 and $100,000,000, 30 per
cent, thereof.
Total insurance between $100,000,000 and $300,000,000, 25
per cent, thereof.
Total insurance between $300,000,000 and $600,000,000, 20
per cent, thereof.
Total insurance between $600,000,000 and $1,000,000,000, 15
per cent, thereof.
If the total insurance in force shall be in excess of $1,000,-
000,000, the new business shall not exceed $150,000,000 annuf Uy.
The case of the industrial companies presents special considera-
54
300 Legislative Insurance Investigation.
tions. The great numiter of lapses makes it necessary that a large
volume of business should be written to ensure stability. The or-
dinary department is developed in connection with the industrial
branch and furnishes an opportunity to industrial agents to add
to their slender compensation. The ordinary business annually
written is much larger in proportion to the total outstanding
insurance of the same sort than in the case of other companies.
The total assets are relatively small. Thus the Metropolitan, with
total outsanding insurance at the end of 1904 of nearly $1,500,-
000,000 had assets of only $128,000,000, while the Equitable
with outstanding insurance of about the same amount had assets
amounting to $412,000,00. The Committee is of the opinion
that any company writing industriaHnsurance and excepted from
the above limitations, should not be permitted to issue policies
\ in any year, excluding 'industrial policies, to an amount exceed-
ing 50 per cent, of the total amount of the insurance other than
industrial outstanding on the 31st day of December in the. year
preceding, nor in any event more than $150,000,000.
POLITICAL CQNTEIBUTIONS.
Contributions by insurance corporations for political purposes
should be strictly forbidden. Neither executive officers nor direct-
ors should be allowed to use the moneys paid for purposes of
insurance in -support of political candidates or platforms. The
devious methods taken to conceal the payments of this sort are
confessions of their illicit character. They illustrate the manner
in which executive officers have treated the funds of the com-
pany virtually as their own, abusing their power to disburse them
without proper accounting. Whether made for the purpose of
supporting political views or with the desire to obtain protection
for the corporation, these contributions have been wholly unjua-
tiiiable. In the one case executive officers have sought to impose
their political views upon a constituency of divergent convic-
tions, and in the other they have been guilty of a serious offense
against public morals. The frank admission that moneys have
been obtained for use in State campaigns upon the expectation
that candidates thus aided in their election would support the
interests of the companies, has exposed both those who solicited
the contributions and those who made them to severe and just
condemnation. The committee recommends the passage of an
Report of the Committee. 301
unequivocal and drastic measure to remedy this evil. Not only
should it be expressly prohibited and treated as a waste, of cor-
porate moneys, but any officer, director or agent making, author-
izing or consenting t6 any such contribution shouK be guilty of
a misdemeanor, and the prohibition should be extended to all
corporate contributions of this character.
LOBBYING.
Nothing .disclosed by the investigation deserves more serious
attention than the systematic efforts of -the large insurance com-
panies to control a large part of the legislation of the State.
They have been organized into an offensive and defensive alliance
to procure or to prevent the passage of laws affecting not only
insurance, but a great variety of important interests to which,
throu^ subsidiary companies or through^ the connections of their
officers, they have become related. Their operations have ex-
tended beyond the State and the country has been divided into
districts so that each company might perform conveniently its
share of the work. Enormous sums have been expended in a sur-
reptitious 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 have been dishonestly used. Andrew
0. Fields, who represented both the Mutual and the Equitable in
legislative matters, and was in control of the supply department
of the former company, remained beyond the jurisdiction during
the sessions of the committee. The general solicitor of the
Mutual, to whom the chairman of the committee on expenditures
entrusted large sums, died just before the beginning of the inves-
tigation and apparently left no account as to how the money
had been spent. Andrew Hamilton, who, within ten years,
received upwards of $1,000,000 from the New York Life on the
warrant of its President in connection with its bureau of legisla-
tion and taxation, has remained abroad and has failed to render
any proper account 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. The officers of the Equitable, from
whom light might have been expected on the disbursements, of
their company, either have renaained out of the jurisdiction oi
have been disabled by ilbiegs. On account of the absence of the
302 Legislative Insurance Investigation,
necessary witnesses and the lack of proper vouchers, the com-
mittee has been unable to trace the moneys said to have been dis-
bursed in connection with legislation. But while it is sufficiently
evident that large sums have been disbursed for improper purposes,
it is also clear that payments for confidential outlays exempt from
audit have furnished abundant opportunities for misapj)ropria-
tions. They suggest the necessity of requiring a strict accounting
from those who are responsible for the payments as well as from
the agents who have received the moneys.
It has been insisted that the insurance companies have been so
continuously menaced by the introduction of improper and ill-
advised legislative measures in many States that they have been
compelled to maintain a constant watchfulness and to resort to
secret means to defeat them. An insurance corporation, however,
holds a position of peculiar advantage in opposing any legislative
measure which really antagonizes the interests of policy holders.
A very large proportion of the voters of the State hold policies of
life insurance. It is easy for the company, to apprise them of
hostile legislative measures, and in addition a department of the
State government exists for their protection, whose recommenda-
tions have rarely failed to receive proper consideration in the
Legislature. It is not a difficult matter to direct ^public attention
to an objectionable bill affecting life insurance corporations or
to have opposing argumeiit and criticism effectively presented.
Again, if, in spite of argument fairly- and publicly presented, the
Legislature insists upon passing a law inimical to the true inter-
ests of the companies, it Is not the officers, but the policyholders,
who must bear the loss, and the consequences which can readily be
pointed out are almost certain to bring about an early repeal of
the obnoxious legislation. The employment of agents to disburse
large sums, and of clandestine methods to defeat legislation is
wholly inexcusable.
The pernicious activities of corporate agents in matters of legis-
lation demand that the present freedom of lobbying should be re-
stricted. They have brought suspicion upon important proceed-
ings of tbe Legislature, and have exposed its members to conse-
quent assault. The Legislature owes it to itself, so far as possible
to stop the practice of the lavish expenditure of mofieys ostensibly
for services in connection with the support of or opposition to bills
9nd generally believed to be used for corrupt purposes. The Legis-
lature should free Itself from the stigma which now attaches to
Report of the Committee. 303
the progress of measures affecting important interests. The laws
against bribery and corruption, offenses which' are difficult of
proof, are sufficiently stringent, but an effort should be made to
strike at the root of the evil by requiring under proper penalties
full publicity with regard 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 detailed and receipted for, and an adequate statement re-
garding them should form a part of such reports as may be re-
quired.
In the case of insurance corporations the remedy lies first,
generally, in the requirement of a proper authorization of all
expenditures and vouchers, stating in detail the purposes for
which moneys paid for legal expenses or in connection with legis-
lative matters have been expended. And, further, the company
should be compelled to set forth in its annual statement to the
Superintendent of Insurance all sums so disbursed, giving the
names of the payees, the amounts paid and the specific purpose
of the payment.
Professional services in promoting or opposing legislation may
be entirely honorable and are frequently necessary. In England
members of the so-called Parliamentary bar have been held in
deserved esteem. The drafting of bills and the presentation of
arguments for and against their enactment before legislative
committees call for a high order of professional ability. In
Massachusetts and in Wisconsin .statutes have been passed re-
quiring that persons who professionally advocate or oppose legis-
lation affecting corporate interests should enter regular appear-
ances and disclose for what clients they are acting. In Wisconsin
it is made a misdemeanor for any person to accept a fee con-
tingent upon the passage or defeat of a pending measure, and
by statute passed there in 1905 it is made unlawful for any
person employed for a pecuniary consideration to attempt per-
sonally to direct or influence a member of the Legislature to
vote for or against any pending measure otherwise than by appear-
ing before regular committees, by publications, or public ad-
drosses, or by statenients, arguments or briefs delivered to all
members of Legislature and filed in the office of the Secretary
of State. We are not inclined to recommend legislation on this
subject which will interfere with the presentation to a legislator
of the views of his constituents or of citiezns generally, but we
304 Legislative Insurance Investigation.
believe that where legislation is opposed or prompted by paid
professional advocates the matter should be the subject of suita-
ble regulation.
The Committee therefore recommends that the Legislative Law
be so amended that every person retained or employed for com-
pensation as counsel or agent to promote or oppose the passage
of bills or resolutions by either House or executive approval of
such measures shall before entering upon the service file in the
office of the Secretary of State a writing stating the name or
names of his employer, together with a brief description of the
legislative matter with reference to which the service is to be
rendered. The Secretary of State should be required to provide
a docket to be known as the "Docket of Legislative Appearances,"
with appropriate blanks and indices in which the names of coun-
sel and agent may be properly 'entered. Fees contingent upon
legislative action should be prohibited. It should also be made
the duty of every corporation and association doing business in
the State within two months after the adjournment of the Legis-
lature to file with the Secretary of State an itemized statement
duly verified showing in detail all expenses paid or inciirred in
connection with legislation pending at the last session, including
all disbursements or compensation paid or payable to counsel or
agents. Exception may be made of the duly accredited counsel
of mimicipalities, public boards and public institutions, and also
of the ordinary professional services in drafting bills or advising
clients as to the construction and effect of proposed or pending
legislation where the professional service is not otherwise con-
nected with legislative action; Violation of the law should be
made a misdemeanor, and the failure to file the statements re-
quired should subject the offender to appropriate penalties.
EXPENSEa
The Committee deems it inadvisable to recommend that the
Legislature attempt to prescribe the expenditures of insurance
corporations. The Legislature cannot undertake the management
of the business. In seeking to secure economical administration
it should not over-step the line which divides suitable State super-
vision from an utterly impracticable effort to prescribe details.
The Legislature should aim to permit freedom of management
subject, to general regulations and complete publicity.
Report of the Committee. 305
For example, it is deemed unwise to limit salaries by statute,
but it sbould be provided that all salaries of officers and the
compensation of any other person receiving over a certain amount,
say $5,000 in any year, should be fixed by the Board of Directors
and not by any committee thereof, or by any executive officer, and
should be reported in the annual statement to the Superintendent
of Insurance.
And, as already indicated, provision shoiald be made for the
authorization of all expenditures and for proper vouchers in all
cases. Vouchers for legal or other services should set forth the
services rendered. Pensions to officers, -directors and the members
of their families should be prohibited.
The evidence, however, makes it clear that the most wasteful
expense lies in the amount paid for new business. Every com-
pany professed to deplore this, pleading that competition rendered
it unavoidable, In many cases the expenses greatly exceeded the
total loadings upon the premiums.
By the limitation of their new business the three great com-
panies will be able very largely to diminish their agency expenses.
This will also relieve the- smaller companies to a marked degree
of the competition to which they have hitherto been subject. It
wiU, however, be offset by greatly increased competition between
the smaller companies themselves. It is plain that the proposed
limitations with reference to their new business cannot be relied
upon as a sufficient assurance of economy, for while these limita-
tions are necessary to prevent an abnormal rate of growth, they
still leave in the case of the smaller companies as large a field
for their activities as they have hitherto enjoyed. Some limita-
tion of the expense in getting business is imperatively required;
otherwise there is little reason to doubt that there will be a con-
tiauance of the present extravagant methods.
The committee does not recommend that the rate of commis-
sions be prescribed by law. Whether a company should pay a
salary or a commission, whether it should pay a so-called broker-
age commission or an initial commission supplemented by reason-
able renewals, are details of management which should be left
to the decision of the directors. It is recommended that com-
missions 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 $1,000 of insurance at
the same age and should be determined by the amount paid in
306 Legislative Insurance Investigation.
the case of an ordinary whole life policy. Bonuses, prizes and
rewards and other special inducements based upon, the size of
particular policies or upon the aggregate of insurance written
should be prohibited. All commissions should be definitely agreed
upon in advance and should be a fixed percentage of the premium
for each $1,000 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 year's commissions, so that
the general restrictions placed upon the first year's expenses
should not be evaded. Loans and advances to agents should be
prohibited. OtherAvise it is not deemed wise to attempt to fix by
statute the terms of agency contracts or the amounts of premiums
or loadings, save as the net premium according to long-established
usage may be determined by the statutory scheme of the valua-
tioin of policies to secure suitable reserves.
But the Committee is_ satisfied that some criterion should be
established by which the amount which may properly be expended
in obtaining new business may be determined.
The total expenses" should be limited to the total " loadings "
upon the premiums ; in other words, as the gross premium is
made up of the amount which, upon the calculations of the com-
pany as to mortality and interest is sufficient to cOver the insur-
ance (called the " net " premium) and an additional amount
for the purpose of meeting expenses and contingencies (called
the " loading "), the expense, other than investment expenses,
should be limited to the aggregate of the loadings. The loadings
should also be uniform in the case of the same amount of insur-
ance at the same age, and the standard should be the loading
upon an ordinary whole life policy. An exception may be made
in the case of a limited payment life or limited payment endow-
ment policy, where an additional loading may be provided for
expenses during the continuance of the policy after the expiration
of the limited payment period ; but such additional loading, save
as it may be used' in the years for which it is so provided, should
be added to the reserve liability of the company on the policy.
But experience shows that these provisions, though important
in the case of many companies, would not in themselves, or in
all cases, prove a sufficient check upon extravagance. For ex-
ample, the outlays of the New York Life, and the Equitable would
not have been restrained. In 1904 the expenses were 99.77 per
cent, of the loading in the case of the New York Life, and 90.45
Report of the Committee^ 307
per cent, in tlie case of tlie Equitable ; while tlie expenses of tHe
Provident Life and Trust of Philadclpliia, a company distin-
guisked for the low cost of new business, exceeded its loading,
amounting to 101.06 per cent, thereof. This was not because its
expenses were high, but because its loading was low. It would
not be wise to adopt a limitation which in any case might result
in an increase of premiums. ISTor would the suggested limitation
accomplish the desired result with an additional provision de-
fining the amount of the loading. It would not be possible to
prescribe a loading for level premiums which would leave suffi-
cient margins for contingencies and not afford opportunities for
excessive expenses in obtaining new business.
In searching for a proper criterion the committee has made a
study of the first year's business taken by itself. It has sought
to compare the amount expended for new business with the mar-
gins upon the first year's premiums, that is'to say, the margins
afforded by the loading on these premiums and the gain in mor-
tality during the first year.. To this end the committee has re-
quired every company >to report the total margins in its premiums
for the first year of insurance collected during 1904, and the total
cost of new business. It thus appeared that the entire loading
upon such premiums amounted to $21,295,413.12, and the mor-
tality savings for the first year of insurance to $7,400,197.27, the
total margins being $28,695,610.38. The cost of the new btisiness
aggregated $65,833,253.68, which is about 230 per cent, of the
total margins. The margins of the first year's premiums may
fairly be expended in acquiring new bvisiness (duly apportioning
thereto its share of the general expenses), for unless the new
insurance were written such margins would not be available for
any purpose. On the other hand, it is clear that to the exteiit
that the margins of the first year's premiums, fairly determined,
are exceeded by the expense of new business, the fund, otherwise
available for distribution in dividends, either annual or deferred,
is depleted. The companies whose returns have been summarized
above are divided by natural cleavage into three groups as follows :
(1) Companies having an annual premium business and carry-
ing as a liability what is known as the full net reserve upofi- their
policies.
(2) Companies doing an industrial business.
(3) Companies operating on the preliminary term plan.
The following is a comparative statement compiled by the coii-
siilting actuary of the e&mmittee of the returns from these three
classes of companies:
308
Legislative Insurance Investigation.
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It mil be noted that companies doing an annual premium lixisi-
ness, without preliminary^ term, show total loadings on first year's
premiums $13,095,548.27, first year's mortality gain
$6,805,338.27, making total margins of $19,901,086.54. Their
cost of new business was $50,494,798.98, or 254 per cent, of the
margins.
The industrial companies, taking their industrial departmenta-
only (the returns of their ordinary branch being included in the
first class) show loadings, $5,081,954 and mortality gains $23,910,
making total margins of $5,105,864. The cost of new business
was $10,817,907, or 212 per cent, of the margins.
The third" class of companies operate on what is called the pre-
liminary term plan — that is to say, they charge a level premium,
but treat the insurance for the first year as one year term insur-
ance with an option to renew for succeeding years, thus escaping
the statutory reserve the first year. These show loadings of
$3,117,910.85 and mortality gains $570,749, making a total of
$3,688,659.85. The cost of new business was $4,520,547.70, or 123
per cent, of the margins. -The device of preliminary term insur-
ance is resorted to, in order to provide a fund through the decrease
of reserves for the requisition of new business. Under the present
law it is said that this plan in some form is absolutely essential
to enable a new company to get under way and by it alone it would
seem that a number of companies have been enabled to meet the
strain of competition. But it will be noted that in only one of
the companies using this plan were the expenses within the mar-
gins of the first year's premiums, including mortality gains.
Whatever it may do, therefore, in providing for the expense of new
business, it utterly fails to furnish a criterion for economy.
It is indefensible for other reasons. If the insurance for the
first year is not in reality term insurance, the law as to valuation
of policies is violated and the reserves in this State are calculated
upon a wrong basis. This is the position taken by the Massachu-
setts Insurance Department, with the result that the valuation of
the policies, i. e., the reserve liability, of the Security Mutual in
1904 for example, was about $311,000 higher under the ruling of
the Massachusetts Department than it was in New York, the surplus
of the company varying accordingly. On the other hand, if it be
treated as one year term insurance according to the form of the
policy, then it would seem to be a clear case of a discrimination
violating the intent of section 89 of the Insurance Law. For the
one year term rates charged are not the same for all forms of
312 Legislative Insurance Investigation.
policies, but the same premium which is charged in subsequent
years according to the character of the insurance, whether life,
limited payment life or endowment is charged in the first year.
Otherwise there would be no advantage in the device, for it is
precisely the diflFerence between the cost of insurance and the full
level premium rate that is sought to be gained in the first year to
meet the expense of obtaining the business. Under such contracts
as much as $100 is sometimes paid for a single year insurance
worth $Y net It is said that this discriminating feature of the
plan has been denounced by leading actuaries here and abroad who
favor some provision for the cost of new business. On the other
hand, it is claimed that the evasion of the statute as to discrimina-
tion is permissible because the policy differs from an ordinary one
year term policy in giving an option .for its continuance upon
another basis, but this distinction is purely formal and in the
judgment of the Committee section 89 should be so amended as
to leave no doubt that this kind of insurance falls within its
prohibition.
Abandoning the preliminary term idea, the returns of other
companies which provide a full net reserve against their policy
liabilities, should be examined to ascertain whether they suggest
any proper criterion f ^r +l.e limitation of expenses. For this pur-
pose it is important to examine the returns of some of the more
conservative companies. Taking three of the companies whose
new business appears to have been taken on a relatively economical
basis, it is found that their expenses for new business in 1904
were in excess of the margins upon the first year's premiums to
the following extent:
Massachusetts Mutual, excess 41 per cent.
T^'orthwestem Mutual, excess 36 per cent.
Provident Life & Trust, excess 35 per' cent.
But even in the case of these companies the excess named, after
using all the mortality gains on policies within the first year as
well as loadings on first year's premiums in meeting the cost of
the new business, amounted to the following sums, taken out of
funds which otherwise would have been avalable for dividends:
Massachusetts Mutual $139 5Yl 64
!N"orthweste(m Mutual 390 969 45
Provident life & Trust 83 517 70
Report of the Committee. 313
One-half of the mortality gains for the first year of the insur-
ance may have been upon policies issued the year before. On this
basis the margins on business obtained during the year are really
less than as stated, and the excess of the cost oi new business over
such marine becomes:
Massachusetts Mutual ,. . . . $204,633 63
IsTorthwestem Mutual ' 621,906 45
Provident Life & Trust 142,784 20
These amounts, we are advised, may be taken as measuring the
extent to which, in companies conducted with relative economy,
the expense of the new business operates as a drain upon the funds
contributed by other policyholders.
Where the cost of obtaining new business is not kept within
reasonable limits, surplus from all sources for four or more years
may be required to make good the outlay as appears from the
report of the New York Life to the Prussian insurance depart-
ment. But in a company economically administered the excess
of the expense of obtaining new business over the margins of the
first year's premiums may be made good from the gains on mor-
tality on the new business during the first five years after admis-
sion.
The mortality for the first five years is reported by Mr. Eufus
W. Weeks, President of t!ie A tuarial Society of America, as the
result of an investigation of twenty-eight classes of risks, accord-
ing to data furnished by all the leading companies, to be the fol-
lowing percentages of the death rate by the American experience
table, which is the standard in this State:
First insurance year 47.6 per cent.
Second insurance year 62.5 per cent.
Third insurance year 67.3 per cent.
Fourth insurance year 71.3 per cent.
Fifth insurance. year 76.2 per cent.
We are advised that it is generally deemed conservative to as-
sume that the actual mortality during the first five years will
amount to the following percentages of the standard death rate:
First insurance year 50 per cent.
Second insurance year 65 per cent.
314 Legislative Insurance Investigation.
Third insurance year TS per cent.
Eourth insurance year 85 per cent.
Fifth insurance year 95 per cent.
On this basis the estimated present value of the mortality gains
of the three companies above mentioned, realized during 1905,
1906, 1907, 1908 and 1909, as compared with the American ex-
perience table, upon new insurance issued in 1904, would be as
follows:
Massachusetts Mutual $258,855 00
Northwestern Mutual ■ T3Y,4tO 00
Provident Life & Trust 1Y4,709 00
It thus appears that a provision which would have made these
mortality gain's available for the expense of the new business of
1904 would have more than covered the excess of expenditures
over first year's margins, and this would perhaps be true of the
other economically managed companies.
On the other hand, had this criterion been applied to the entire
group of companies, with reference to all the business except
industrial, their entire expenses for new business would have
amounted in 1904 to only $31,904,771, or $23,110,50 T less than
had actually been expended. Under such a limitation this great
sum would have been saved for policy holders, amounting to an
addition of about 30 per cent, to the surplus earnings of the year.
The Committee believes that the following is a proper standard
for reasonable and profitable expenditure for new business, viz.:
That the expense of new business should not exceed the loading
on first year's premiums plus the present value of the mortality
savings on a conservative basis for five years ^it^x admission.
These two items arise directly from the new business. Were there
no new business, neither the loading on new premiums nor these
mortality gains would be realized. It costs the other policy
holders nothing to permit them to be used in this way, and if
the cost of new business is kept within these limits, both old and
new policy holders are the gainers.
These savings, however, cannot be made available in the case of
a new company or of a company which annually distributes its
gains, without changing the law regulating reserves, -po that the
reserves in the first year on new business shall take into considera-
lion the expected mortality gains for the ensuing five years. This
Report of 'the Committee. 315
was brought out in the testimony of Mr. Emory MeClintock, the
actuary of the Mutual Life Insurance Company, as follows:
" Q. Would there be any way by which the company (the
'Old Equitable' of London, which has never employed an
agent) could increase its business without reducdug the
returns to old policy holders? A. If it adopted a different
system of valuation, yes.
" Q. What would be the different system of valuation that
would permit that result ? A. What I spoke of the other day;
Dr. Sprague's system would permit it; Mr. Dawson's system
would permit it.
"Q. What do you refer to as Mr. Dawson's system ? A. It
was a system which was proposed for reducing the amount of
reserve the first year by giving the company credit for the
mortality gains of the ensuing five years.
" Q. It is based on the idea that the personally examined
risk, the new risks of the company, show a more favorable
rate of mortality than is indicated by the present valuation?
A. Yes.
" Q. !N^ow is that more favorable rate of mortality shown
by any reliable data ? A. Oh, yes.
" Q. Have you tables which will enable you to state in
fairly accurate percentage the extent to which personally
examined risks for new business during, say, five years after
it is written show a better mortality than is taken for granted
in the present system of valuations? A. The experience of
the companies is sufficiently well known to indicate that the
first year the mortality ought to range about 50 per cent, of
the American table.
" Q. And the idea is that that large saving of mortality for
the fii'st year should have some correspondence in the valua-
tion of the policy or in fixing of the reserve ? A. That is his
idea.
" Q. And the amount that would be saved on the reserve
by that sort of valuation could be used without affecting the
interest of other policy holders in the getting of new busi-
ness ? A. There is no doubt of it."
The Committee is satisfied that no injury would result from
the change in the method of valuing policies which would jermit
the establishment of the stated criterion for the expense in obtain-
ing new business. The gains from mortality according to actual
316 Legislative Insurance Investigation. \
experience "will be realized in any event during: the five years.
Meanwhile, according to the present system, a reserve is charged
precisely as if the company would have to pay the loss in accord-
ance with the standard table. A larger reserve is now exacted,
therefore, than is needed to assure solvency, which is the purpose
of the reserve law. The old established company makes it good
by withholding surplus from its other policies. The new com-
pany, or the company which divides its surplus closely is at a
disadvantage. It has resulted in the palpable evasion known as
preliminary term insurance. The proposed system will result in
no smaller reserve the first year than the mortality fairly to be
expected calls for. It provides ample security to the policy
holder; if he dies the loss falls wijhin the expectation of mortality
on which the reserve is based; if he lives the plan contemplates
increasing reserves against his policy, and as only the expected
gains in mortality for the first five years are taken, there will be
at th""e end of this period the full reserve againsl; the policy called
for by the present standard table. On the other hand, the pro-
posed system will set free in the first year's margins enough
money to pay the cost of new business on an economical basis,
and at the same time afford a satisfactory standard of reasonable
outlay. No other plan has been suggested in the Committee which
will accomplish these results, and apparently the end could not
be otherwise gained except by fixing an admission fee to meet the
cost of new business, a plan which so far as the Committee knows,
has no supporters and to which there would be obvious objection
as encouraging rebating. Under the method now recommended
the new business in effect pays for itself and the general gains of
the company are available for distribution in dividends.
The basis for reserves which the Committee recommends is
known as " select and ultimate," by which is meant that " select " ,
mortality for the first five years is provided for and " ultimate "
mortality thereafter. The Committee is advised that it has been
under consideration for several years past, first in the Actuarial
Society, then in the Congress of Actuaries, and also by the Ger-
man, Dutch and Scandinavian authorities, and that the o]nnion
expressed at the Congress of Actuaries to the effect that it is " the ^
most cautious, prudent and conservative system of that kind that
has ever been proposed," has been very generally indorsed. A
measure to make it the minimum standard in New York was
before the Legislature last year; it passed the Assembly §fid was
Report of the Committee. 317
I
on third reading in the Senate when the session closed. The
Committee recommends its adoption as an economical standard,-
upon the following grounds:
It is a correct measure of li'ahility and so assures solvency.
It will enable new companies to start business without recourse
to preliminary term insurance.
It will permit the prohibition of the issuance of preliminary
term policies without destroying small and weak companies.
It will furnish margins in the first year's premiums sufficient to
cover an economical expenditure for new business without taking
the surplus of other policy holders.
It will permit the establishment of a suitable limitation of the
amount which may be expended for new business apart from
industrial insurance; and the Committee recommends that the
expenses for obtaining new business be limited accordingly.
An option, however, should be given to all companies to hold
additional reserves to bring their total reserves to a higher stand-
ard if they so desire, without affecting the limit of expense.
VALUATION^ or POLICIES.
It is the opinion of the Committee that the law as to minimum
valuations of policies should be amended as follows :
(1) A minimum standard for valuation of policies other than
industrial should be established in accordance with the " select
and ultimate " method above described.
Any life insurance corporation should be permitted to value its
policies according to the American Experience Table of Mortality
at a lower rate of interest than that prescribed by the statute,
but not lower than three per cent, per annum, and with or without
reference to the " select and ultimate " method of valuation, but
in every case it should be required to report to the Superintendent
of Insurance any excess of its valuations over those computed by
the legal minimum standard and also the standards used by it
in mak:ing the same, and it should not be permitted to abandon
any standard which it has adopted without the Superintendent's
consent.
(2) Preliminary term valuations of policies issued after Decem-
ber 31, 1906, should not be permitted.
(3) The Superintendent of Insurance should be required to fix
a legal minimum standard for the valuation of industrial policies
318 / Legislative Insurance Investigation.
in accordance with which all such policies issued after the d4t
-day of January, 1907, shall be valued.
(4) Assessment and co-operative companies should be compelled
to maintain at all times a reserve not only equal to the proceeds
of one death or disability assessment or periodical call on all
' policy or certificate holders thereof, /but also at least equal to the
cost of insurance for all policies in .accordance with the American
Experience Table of Mortality until the next call or assessment
is due and payable over and above all liabilities, including exist-
ing death claims.
(5) Any reserve provided for by the articles of association, con-
stitution or by-laws or by the contracts with the members of any
life insurance company should be valued and charged as a liability
in accordance therewith.
EEBATES.
The law as to rebates is sufficiently stringent to cover all cases
of life insurance officers and agents. No exception is made where
the insured is an officer or employee of the corporation, and it
would seem that the allowances shown to have been given in such
case are within the condemnation of the law prohibiting dis-
criminations.
The illegal and wasteful practice of rebating has its source in
undue competition and has thriven upon the excessive commis-
sions and advances allowed to agents. The limitation upon the
amount of new business and the curtailment of the amount avail-
able for expenses in obtaining business, togetjier with the pro-
hibition of discrimination in the amount of compensation paid
for different plans of insurance and of special rewards based
upon the aggi-egates of insurance written will, it is believed,
prove an effective remedy for thin evil.
But, as a further precaution, it is recommended that the Penal
Code should be amended so as to provide that a person receiving
a rebate should be equally guilty with the, one who gives it.
SUREENDEE VALUES.
The existing law in substance provides for surrender values
in the case of lapse after a policy shall have been ip force three
years by the application of the reserve with dividend accumula-
tions, taken as a sitigle premium, to the purchase of extended in-
surance, or at the option of the policyholder to the purchase of
Report of the Committee. 319
a paid-up policy. It is provided tliat the net value of tlie insur-
ance given for such single premium shall not be less than two-
thirds of the entire reserve after deducting the indebtedness of
the policyholder.
It has been suggested that all policyholders should on lapse
be entitled to -withdraw in cash the amount of the reserves
against their policies. Siach a provision the Committee believes
would be ill-advised. Lapses, particularly in the early years of
insurance, are a source of expense to the company and therefore
to the other policyholders and should be discouraged. Provision
for surrender values for policies which have not been in force
three years would not be advisable. Nor is there a reason why
the policyholder who has paid his money to obtain insurance
should be entitled on lapse, unless his contract so provides, to
withdraw his reserve in cash. If it is applied, according to the
statute, to the continuance of his insurance or to the purchase of
paid-up insurance, equity is done.
It is not recommended that any change be made in the law
with reference to existing contracts. But with regard to new
policies the provisions of the statute should be liberalized. It
should not be necessary for the policyholder to give notice of
his election, but the insurance in the absence of notice should be
automatically continued for its full amount as long as the re-
serve upon his policy will justify. It should also be provided
that the net value of the insurance given upon lapse should not
be less than four-fifths of the entire reserve computed according
to the legal minimum standard. Waiver of these - provisions
should not be permitted. This will bring future industrial poli-
cies, in which such waivers are common, within the law.
ASaEETAimiENT AND DISTKIBUTION OF SUEPLUS.
There has beenmuch popular misapprehension regarding divi-
dends declared by life insurance coi-porations.
A Ufe insurance company, normally, is not organized for
the purpose of making money for its policyholders. A mutual
company is based upon the operation of the law of averages.
While the duration of the life of any one person is uncertain, the
number of deaths which -will annually occur among a large num-
ber of persons may be predicted almost to a certainty. Assuming
a given rate of mortality based upon experience and a given
income from the investment of funds, calculations are made of
320 Legislative Insurance Investigation.
the amount which should be paid to meet the cost of insurance
in a particular case. An additional amount is added to cover
estimated expenses and to provide for contingencies, and the
result is the fixed premium required. If the actual rate of mortal-
ity exactly coincided with the expected rate, if the company
realized exactly the anticipated income and if the expenses and
contingent necessities corresponded exactly to the provision there-
for, there would be no surplus and hence no dividends. The
policyholder would receive the insurance bargained for and noth-
ing else.
The same is true of a stock company transacting business upon
the mutual plan, save that the authorized return in dividends
upon the stock would be counted among the expenses of the busi-
ness. A stock company doing a business exclusively for profit
would gain none unless it charge more than the cost of insur-
ance and the necessary outlays, and if it did charge more the
stockholders would reap the gains by the issuance of non-par-
ticipating policies; that is to say, of policies which would not par-
ticipate in profits.
The gains of life insurance companies are of five classes: -
(1) Gains from mortality due to the difference between the
actual and the expected mortality;
(2) Gains from interest or income due to a realization of a
larger income than was counted upon;
* (3) Gains from lapses by reason of a less amount being paid
upon lapsed policies than the accumulation arising from the pre-
miums paid;
(4) Gains from loading by reason of the expenses and con-
tingent necessities of the company being less than the amount
anticipated, and
(5) Profits upon sales of property or liquidation of invest-
ments.
These gains simply represent the amount which the policy-
holder has been overcharged for his insurance. In a mutual
company or a stock company transacting business upon the mutual
plan and issuing participating policies the policyholder is en-
titled to an equitable return of the overcharge and this is ac-
complished by the payment of dividends.
However, as the precise results of the continuance in business
cannot be predicted and as investments may fall, as well as rise,
in value, it is important that the company should be provided
Report of the Committee. 321
with a contingent fund for the security of its policyholders .and
should be permitted to accumulate such a fund out of its surplus.
It is manifest that all gains or surplus in excess of such con-
tingent fund should, in equity, be returned to the holders of
participating policies at such appropriate times as may' be prac-
ticable for their ascertainment. This return should b& effected
in such a manner that the policyholders will share in the pro-
portions in which, through their payments, they have contributed
to the gains. !For this purpose the cSmpany owes it to its policy-
holders to give them at convenient periods a gain and loss exhibit
showing the actual results of the company's business, by which
the efficiency of the managers may be tested and the amount
available for return to the' policyholders determined.
It is noticeable that nearly all the charters of the life insurance
companies have carefully provided for such ascertainment of
gains and periodical distributions. But about thirty years ago a
scheme was devised for ^ the withholding of these gains under
policies with so-called deferred dividend plans. The original
scheme of these policies called " tontine " was to provide that
the apportionment to gains should be withheld for a given period,
say ten, fifteen or twenty years, and that then all accumulations
upon a given issue or class of policies should be divided among
the surviving members. In case of death before the expiration
of the period the face only of the policy was to be paid, without
any portion of the accumulations, and in case of lapse there was
to be absolute forfeiture, including the entire reserve. This was
succeeded by what were called " semi-tontine " policies, by which
provision was made for the payment of surrender values in case
of lapse, but there was no participation in profits save in case
of survival. To complete the scheme the Laws of 1868, Chapter
.118 (now section 87 of the Insurance Law), provided that any
domestic life insurance corporation which was restricted to mak-
ing a dividend only once in two or more years, might thereafter,
"notwithstanding anything to the contrary" in its charter or
articles, "make and pay over dividends annually or at longer
intervals in the manner and proportions and among the parties
provided for in such charter or articles." This was followed by
Chapter 100 of the Laws of 18Y2 (section 83 of the Insurance
Law), to the effect that any domestic corporation may ascertain
" at any given time and from time to time the proportion of
surplus accruing to each policy from the date of the last to the
322 Legislative Insurance Investigation.
date of tlie next succeeding premium payment, and may dis-
tribute the proportion found to be equitable either in cash, in
reduction of premium, or in reversicnary insurance, payable with
the policy and upon the same conditions as therein expressed at
the next succeeding date of such payment, notwithstanding any-
thing in the charter^ of such corporation to the contrary."
The deferred dividend policies had conspicuous advantages for
the companies, as they permitted the accumulation of profits for
long periods mthout accouftting. The feature of an additional
benefit in the case of survivorship appealed to the gambling in-
stinct, and in addition there were seductive estimates of the
amounts which would be accumulated and distributed at the end
of the period. It was urged upon the policyholder that it was
much better that he should forego slender annual dividends in
the hope of the greatly increased returns which would await him
in case he survived the tontine period. A large propoxtion of
outstanding insurance is of this form, and it is said that it has
been very popular. But it is believed that the -popularity has
been largely due to the representations which have accompanied
it and to the fact that delusive statements have been encouraged
by the efforls of the companies to extend business of this class
through the payment of larger commissions than were allowed
for other forms of insurance.
The results have not justified the expectations. Estimates re-
lied upon when the policies were issued have been falsified by the
event. The comparisons shown in the statements relating to the
different companies exhibit the wide discrepaiicies between the
expectations and the actual results. Under policy clauses leaving
distribution to be made according to the methods and principles
adopted from time to time by the companies dividends have been
declared more or less arbitrarily, and proper accountings have
been refused. The companies have not been agreed ars to the
methods to be employed in determining the shares of policy
holders, and their computations show striking variances.
The following is an actual illustration of the practical con-
sequences of the conflicting judgment of the actuaries : In 1885
a policyholder took twenty-year endowment policies in the Mvr
tual. New Torh Life and Equitable for substantially the same
amount, paying to each company an annual premium of $200.
When the policies matured in 1905 he received from the Mutual
$4,082.59, from the New York Life $5,352.45 and from the Equit-
Beport of the Committee. 323
able, $6,M3.75. The policy in the Mutual was for $2,813 on the
five-year distribution plan; that in the New York Life was for
$2,888 on the twenty-year tontine investment plan; that in the
Equitable was for $2,890 on .the twenty-year tontine savings fund
plan. Apart from the difference in the form of the policy in the
Mutual, by which the gains from forfeitures were less, the vary-
ing results were mainly due it would seem to the different methods
of calculation employed. The Equitable's method, already ex-
plained, of referring its distribution to Homan's original esti-
mates and of giving to the policyholder the same proportions of
the estimate that its available surplus fund bore to the surplus
which would have accumulated under Homan's conditions, re-
sulted in largely increasing the surplus on endowment policies
as compared with other forms, and particularly on endowment
policies issued at advanced years.
The disappointing returns upon these policies, as well as the
diminution in annual dividends, has no doubt been due to a con-
siderable extent to the reduction in the rate of return upon in-
vestments. But it has been more largely due to the wasteful
methods of^the companies, which have been made possible by the
vast accumulations permitted by this form of insurance. For
the most part the companies have denied any legal or equitable
obligation with reference to these accumulations prior to actual
apportionment, and they have been available to provide means
for lavish expense in obtaining new business, and for other out-
lays which would have been checked by a suitable system of
accounting. Thus the huge surpluses of the companies have en-
couraged extravagance and facilitated corruption.
It is the opinion of the Committee that dividends should be dis-
tributed annually, being applied either in reduction of premiums
or to the purchase of additional insurance, or paid in cash, at
the option of the insured. ISTo attempt should be made to disturb
rights under existing contracts, but the issue of so-called deferred
dividend policies in the future should be forbidden.
Much has been said with reference to the propriety of per-
mitting the persistent policyholders to divide the surplus accumu-
lations upon policies which terminate during the tontine period.
On the one hand, it is said that this is a form of wager which
should not be permitted; and, on the other, that it invites per-
sistence and is a means of approximating a more just return to
those who by reason of their longer lives pay more for their in-
824 Legislaiive Insurance Investigation.
surance. With reference to the last suggestion it may be rer
marked that there is no method by which the losses due to death
can be distributed with exact equality. The entire scheme of
mutual insurance is based upon a distribution of these losses
through payments fixed according to the law of averages, the
corollary being that each one who pays should receive his equit^
able ehare of any overcharge. There would seem to be nothing
in the supposed attractiveness of the opportunity to derive gain
from the accumulations of other members which furnishes a sound
argument for the continuance of this form of insurance.
Nor is there force in the suggestion that annual dividends are
of comparatively small amounts and that it is to the advantage
of the policyholder to wait until the maturity of a long" term
contract when he will receive a fund large enough to be the sub-
ject of investment. There is no reason why the dividend should
not be -annually declared, nor why the policyholder should not
be entitled to deal with it as he sees fit. If he desires to purchase
additional insurance, he may do so, but if he prefers to take the
money or to use it in the reduction of his premiums, he should
have this privilege.
The deferred dividend plan of insurance is to be supported,
if at all, upon the ground that there shoitld be no interference
with freedom, of contract.
But in this matter freedom of contract should yield to im-
portant public policy. Of all the reforms suggested by the Com-,
mittee nothing, it is believed, is more imperatively demanded
than that the companies should be compelled to exhibit the results
of their management by annual accounting. If details of man-
agement are to be left, as they should bcj to the discretion of the
directors, they should be compelled each year to state the results
of their administration and to come under definite liabilities to
the policyholders for the amounts to which the latter are enti-
tled. There seems to be general agreement that the abuses which
inevitably flow from the control of large accumulations, said to bis
held for policyholders but not the subject of any definite obliga-
tion, make this necessary. Even those who favor the continuance
of deferred dividend contracts recognize the importance of annual
accounti.l\gs and of the annual credit to each policy of its fair
share of the gains.
But if there is to be an annual aceounting there is no reason
why there should not be an annual distribution; on the contrary,
this is needed to make the remedy complete.
Report of the Committee. 325
It is not sufficient merely to provide for credit entries in the
books of the company of accounts payable at the end of long
periods with reference to which the company will undoubtedly
conduct its business and adjust its investments. The manage-
ment should be subjected to the test of placing annually its
accumulations at the disposal of the policyholders, leaving them
to decide whether they shall be withdrawn. If they are to be
left with the company, it should be at the option of the policy-
holder through the purchase of additional insurance. In this
manner a suitable freedom is given to the policyholder and the
company is placed under wholesome, and, it is believed, neces-
sary, restriction.
The claim that the companies have needed the system of de-
ferred dividends to protect themselves against fluctuations in
values and unforeseen demands should be fairly dealt Avith by
permitting the accumulation and retention of a reasonable con-
tingent fund. This fund should be held for the protection of
policyholders, but available only for distribution in the event of
liquidation. It should not be made a cover for depriving them
of their rights 'by means of unwarrantable reservations, but
should be defined by statute. The Committee recommends that
any life insurance company doing business in this State shall be
entitled to accumulate a contingency reserve out of the gains
attributable to policies hereafter written to the extent of the
following percentages of the net values of such policies, com-
puted according to the legal minimum standard, to wit :
When such net values are less than $100,000, 20 per cent,
thereof, or the sum of $10,000, whichever is the greater.
"Where such net values are greater than $100,000, the percent-
age thereof, measuring the contingency reserve, shall decrease one-
half of 1 per cent, for each $100,000 of said net values up to
$1,000,000; one-haK of 1 per cent, for each additional $1,000,000
up to $10,000,000; one-half of 1 per cent, for each additional
$2,500,000 up to $20,000,000; one half of one per cent, for each
additional $5,000,000 up to $50,000,000; one-half of one per
cent, for each additional $25,000,000 up to $100,000,00; one-half
of one per cent, for ' each additional $50,000,000 up to
$200,000,000; one-half of one per cent, for each additional
$100,000,000 up to $500,000,000; and thereafter the contingency
reserve shall not exceed two per cent, of said net values. The
326 Legislative Insurance Investigation.
following table is an iUiistration of this limitation of the eon-,
tingency reserve:
Percentage of net values
defining maximum
Xet values. contingencjr reserve.
ISTot more than $100,000 20 per cent.
or $10,000, whichever is larger.
$100,000 to $200,000 , 19^ per cent.
$200,000 to $300,000 , 19 per cent.
$300,000 to $400,000 184 per cent.
$400,000 to $500,000 .18 per cent.
$500,000 to $600,000 174 per cent.
$600,000 to $700,000 ' 17 per cent
$700,000 to $800,000 16^ per cent.
$800,000 to $900,000 16 per cent.
$900,000 to $1,000,000 154 per cent.
$1,000,000 to $2,00.0,000 15 per cent.
$2,000,000 to $3,000,000 144 per cent.
$3,000,000 to $4,000,000 14 per cent.
$4,000,000 to $5,000,000 , .134 per cent.
$5,000,000 to $6,000,000 .13 pei? cent.
$6,000,000 to $7,000,000 , 124 per cent.
$7,000,000 to $8,000,000 12 per cent.
$8,000,000 to $9,000,000 114 per cent.
$9,000,000 to $10,000,000 11 per cent.
$10,000,000 to $12,500,000 .104 per cent.
$12,500,000 to $15,000,000 10 per cent.
$15,000,000 to $17,500,000 94 per cent.
$17,500,000 to $20,000,000 9 per cent.
$20,000,000 to $25,000,000 84 per cent.
$25,000,000 to $30,000,000 , 8 per cent.
$30,000,000 to $35,000,000 74 per cent.
$35,Q00,000 to $40,000,000 7 per cent.
$40,000,000 to $45,000,000 64 per cent.
$45,000,000 to $50,000,000 6 per cent.
$50,000,000 to $75,000,000 54 per cent.
$75,000,000 to $100,000,000 5 per cent.
$100,000,000 to $150,000,000 44 per cent.
$150,000,000 to $200,000,000 4 per cent.
$200,000,000 to $300,000,000 34 -per cent.
$300,000,000 to $400,000,000 3 per cent.
$400,000,000 to $500,000,000 24 per cent.
More than $500,000,000 2 per cent.
Bepori of the CommiUee. 327
It should be provided, however, that no company having exist-
ing surplus funds or contingency reserves or funds awaiting dis-
tribution as deferred dividends should be entitled at any time
to accumiilate any additional contingency reserve under the
statute except to the extent that the aggregate of such reserves
and funds are less than the contingency reserve to which it would
be entitled according to the rates above mentioned if computed
upon the net values of the total policies then outstanding.
In connection with the provision requiring annual distribution
of dividends upon policies hereafter written, the companies
should be required annually to iile with, the Superintendent of
Insurance a gain and loss exhibit for the year in a prescribed
Jorm, showing with suitable detail the gains and losses of the
year, the amount available for distribution, the amount of divi-
dends declared, and the method of calculation by which they have
been determined.
So far as existing policies are concerned, without impairing
any of their obligations, the companies may be required also to
file each year with the Superintendent of Insurance a similar
statement showing the annual dividends declared upon present
annual dividend policies and the manner in which they have
been computed, and also the share of any gains or surplus claimed
to be held for eventual apportionment upon existing deferred divi-
dend policies and the manner in which the share has been arrived
at. As deferred dividend policies mature and distributions are
made, the company should be compelled to file a statement showing
the amount distributed and the method of calculation adopted.
This, with free access to the courts to determine the propriety of
the companies' action, will tend to the advantage of existing policy
holders without affording any possible basis for the claim that the
legislation has interferred with contract rights.
The Committee has not thought it advisable to recommend .that
the Legislature should establish the manner in which dividends
should be computed. If the companies are required to state their
methods of computation ample opportunity will be afforded for a
comparison both of methods and results, and any method which
is open to serious criticism can readily be reviewed in the courts.
NON-PAKTIOIPATINGv POLICIES.
The Committee believes that mutual companies and stock com-
panies chartered to transact business on the mutual plan or hold-
328 Legislative 'Insurance Investigation.
ing themselves out as transacting business upon this basis, should
be forbidden from writing non-participating policies.
The writing of non-participating policies by these companies
must almost necessarily result in an injustice. If premiums are
charged at a rate lower than the actual cost of carrying" the in-
siirance, including a fair share of expenses, it is an imposition upon
the other policy holders who must contribute to pay the difference.
If, on the other hand, the premiums are at a rate higher than that
demanded by the cost of carrying the insurance, the excess is with-
out excuse and those who take the policies are overcharged and
are deprived of the returns to which they should be entitled. In
short, the non-participating policy issued by a company doing busi-
ness upon the mutual plan can be justified only upon the supposi-
tion that the exact results of the business can be foreseen and the
premium adjiisted accordingly. This, of course, is an impossibil-
ity. The business of companies conducted upon the mutual plan
should be exclusively mutual.
KEMEDIES OF POLICY HOLDERS, OR RIGHT TO RE-
SORT TO THE COURTS.
Not only have the funds belonging to policy holders, through
the opportunities afforded by deferred dividend contracts, been
wasted through lax and corrupt administration; not only have
their shares of profits been determined by secret and largely arbi-
trary methods of computation ; but they have been denied an oppor-
tunity to seek relief in the courts.
In 1888 in the case of Uhlman v. The New York Life In-
surance Company (109 N. Y. 421) the Court of Appeals held
that a life. insurance company issuing policies on the tontine sys-
tem was in no sense a trustee of any particular fund for the holder
of such policy ; that their relations were simply that of debtor and
creditor and that the policy holder, at the expiration of the
agreed period, was not entitled to an accounting in the absence
of any evidence of misappropriation, wrongdoing or mistake on
the part of the company. The burden was thrown upon the
policyholder of making and establishing proper allegations of fact
showing that the apportionment had not been equitable or had
been based upon erroneous principles. The Court, however, said:
"Inasmuch as the agreement is that the apportionment
shall be an equitable one, the question. of what is an equitable
one, all the facts ?nd circumstances being known, may be
Report of the Committee. 329
one over whicli the courts liave supervision. Prima facie,
the apportionment as made by the defendant should be re-
garded as a compliajice with the terms of the policy, or, in
other words, should be regarded as equitable apportionment.
It should be thus regarded because by the terms of the policy
the duty of making it is cast upon the corporation and it
ought to be presumed that the defendant has performed its
duty instead of admitting that it has failed to do so. But
the question is still leftj has or has it not complied with the
agreement to make an equitable apportionment? And the
plaintiff and all others similarly situated have the right,
upon proper allegations of fact showing that the apportion-
ment made by the defendant is not ecjuitable or has been
based upon erroneous principles, to have a trial and make
proof of such allegations, and if proved the Court will de-
clare the proper principles upon which the apportionment is
to be made so as to become an equitable apportionment.'
It was also held that as it was discretionary with the Court
whether or not it would exercise its equitable jurisdiction to com-
pel an accounting merely by reason of the fact that the accounts
were complicated, it would remit the plaintiff to an action at law
if, considering all the circumstances, it appeared that an account-
ing would be of great inconvenience and possible oppression to
the defendant.
By chapter 400 of the Laws of 189'0 (section 56 of the Insur-
ance Law) it was enacted as follows:
" No order, judgment or decree providing for an account-
ing or enjoining, restraining or interfering with the prose-
cution of the business of any domestic insurajace corporation
or appointing a temporary or permanent receiver thereof,
shall be made or granted otherwise than upon the applica-
tion of the attorney-general on his own motion, or after his
approval of a request in writing therefor of the Superin-
tendent of Insurance, except in an action by a judgment
creditor or in proceedings supplementary to execution."
By this statute the policyholder, even though he were in a
position to make suitable allegations to bring his case within
the Uhlman decision, was debarred from relief by the courts save
through the action or approval of the attorney-general.
In Swan v. The Mutual Reserve Fund. Life Association, 155
330 Legislative Insurance Investigation.
N. Y. 9 (1898), it was held that an action on behaK of the plain-
tiff and other policyholders to enforce the performance of the
proTisions in the policy in respect to the reserve fund, by a com-
plaint which alleged an improper accumulation, retention and in-
tended misapplication of a surplus of the reserve fund and which
prayed that the number of living policyholders and the amount
paid by them to the reserve fimd be ascertained and that the
plaintiff be paid a ratable amount according to his contribution,
was an action for an accounting and for an interference with the
prosecution of the business of the corporation within section 66.
In Greeff vs. The Equitable Life Assurance Society, 160 N. Y.
19 (1899), a policyholder's action to recover a propprtionate
share of the company's surplus without application to or approval
by the attorney-general, it was held that the action was pro-
hibited if regarded as one for an accounting. It was also held,
iu considering the question whether the complaint Stated facts
sufficient to entitle the plaintiff to recover in an action at law
upon the policy as an instrument for the payment of money,
that where the directors had exfercised their discretion in regard
to the distribution of surplus the courts would not interfere if
there had been no bad faith, wilful neglect or abuse of discre-
tion. tJnder the company's charter the question of how much
surplus should be accumulated for the security of the company
and its members was one to be decided by the officers and man-
agers according to their discretion, having in^ view the present
and future contingencies of the business; and in the absence of
any allegation of wrongdoing or mistake their apportionment
prima facie was to be regarded as equitable. It was further held
that where the policy provided that only the proportion of the
company's surplus which equitably belonged to it was to be
credited to it and paid to the policyholder, an apportionment
and determination of that proportion is a condition precedent to
the policyholder's right of recovery of any portion of the surplus
in an action at law.
In the light of the disclosures of the investigation, the Com-
mittee favors the repeal of the requirement of section 56 that
action by the attorney-general should be a condition precedent to
an order, judgment or "decree for an accounting. Policyholders
should have free access to the courts to have their rights deter-
mined.
It should be remembered that the facts are vnthin the peculiar
knowledge of the company and that it has a legal department
vt of the Com-miUee. 331
competent to attend to all legal proceedings. Furtker, if the
propriety of the method adopted is determined in one suit, the
decision will serve as a precedent and it is unlikeily that other
suits of the same nature would be pressed. The proposed repeal
is also to be taken in connection with the recommendations as to
the annual filing of statements showing the methods of calculating
dividends which will put the companies to the necessity of expos-
ing these methods and should be supplemented by a suitable op- ,
portunity to the policyholder without the intervention of any
State officer to obtainany needed redress. The Committee is con-
vinced that the companies misled the Legislature in procuring the
enactment of Section 56 and that it was not required to protect
the . companies against unjust and vexatious suits, but rather to
aid their policy of concealment and to facilitate through their
deferred dividend system and through contrpl of the distribution
of dividends the continuance of their improper methods of admin-
istration.
The provision that orders, judgments or decrees restraining the
prosecution of the business of an insurance company or appoint-
ing a temporary or permanent receiver should not be granted save
upon the application of the Attorney General or after his approval
of a request in writing therefor of the Superintendent of Insur-
ance, is not. open to serious objection. The Committee believes,
however, that the .practice in these matters with reference to in-
s]irance companies should be assimilated to the general scheme
qf :the statutes relating to other corporations. In this view sec-
tion 56 should be repealed and the matter should be left subject
to tlie general provisions of the articles of the Code of Civil Pro-
cedure relating to actions against corporations.
FOKMS OF POLICIES.
Life insurance companies transacting business in this State
should be required to issue policies providing for the ordinary
sorts of life insurance, simple in form and in clear and concise
language. By far the greater part of outstanding policies issued
bv the level premium companies are of the types known as:
(1) Ordinary life, providing for a continuous payment of pre^i
miums until death, when the policy matures;
(2) Limited payment life, providing that premiums shall be
fully paid in a certain number of years, e. g., in ten* fifteen or
twenty, and that the policy shall mature at death;
55
332 Legislative Insurance Investigation.
(3) Endowment, providing for the payment of the policy at a
fixed time or in the event of earlier death, and
(4) Term policies, Or those providing for insurance against
death, during a specified period.
It is deemed advisable that standard forms of policies of these
classes should be established.
In order that there should be no undue restriction upon other
sorts of insurance which have been or may from time to time be
devised, any company should be privileged to issue policies in such
cases, provided they have been approved by the Superintendent
of Insurance.
To remedy the abuses which have grown up in the multiplica-
tion of forms designed to attract custom either by catchy titles
or by supposed liberality of provision, it is thought best that in
addition to requiring approval of the Superintendent of other
than certain standard forms, provision should be made for the
standardization of the new types of policies so far as possible.
This may be accomplished by requiring a company which desires
to issue a policy of a sort other than one for which a standard
form has been prescribed, to submit its request to the Superin-
tendent, who shall give an opportunity to it and other companies
to be heard, and shall establish a standard form of the desired
type of insurance to which all insurance policies of that type shall
be required to conform. The form may be changed by the Super-
intendent from time to time if it should appear that a change is
desirable. All companies will thus be free to write in suitable
form the various kinds" of insurance which under the supervision
of the Department; may be deemed to offer important advantages
to policy holders, while they wiU be compelled as a condition of
their transaction of business within the State, to write the ordi-
nary kinds of insurance in the forms established by the statute.
The issue of other policies than those thus provided for should be
prohibited.
The standard forms wiU be submitted in connection with the
bills recommended by the Committee. In the case of any com-
pany not transacting or professing to transact business upon the, ,
mutual plan, permission should be given to vary the standard
forms by the omission of the participating feature.
The recommendation as to the compulsory issue of standard
forms does not extend to the policies issued by assessment or
co-operative associations or fraternal societies.
Report of the CommiUee. 333
These provisions should be supplemented by the requirement
that every policy hereafter issued by any company shall contain
the entire contract between the parties; that nothing shall be
incorporated therein by reference to any constitution, by-laws,
rules, application or other writing unless the same is endorsed
upon or attached to the policy when issued; and that all state-
ments purporting to be made by the insured shall in the absence
of fraud be deemed representations and not warranties; any
waiver of these provisions to be void.
PUBLICITY AND STATE SUPEEVISION".
Clear and speciiic provision should be made for disclosure of the
transactions of the companies. They should be required to set
forth in their statements to the Superintendent of Insurance, as
of December 31 in each year, the following matters, apart from
those which the superintendent may otherwise require:
(1) The real estate held by the company, the dates of acquisi-
tion, the names of vendors, the actual cost, the value at which it
is carried on the company's books, the market value, the amounts
expeiided during the year for repairs and improvements, the gross
and net income from each parcel and if any portion of the same
be occupied by the company the rental value thereof, a statement
of any certificate issued by the superintendent extending the
time for the disposition thereof, and any and all transactions in
real estate since the last annual statement.
(2) The amount of its existing loans upon the security of real
property, stating the amount loaned upon property in each state
and country.
(3) The moneys loaned by the company to any person (except
loans upon the security of real property above mentioned), the
actual borrowers, maturity and rate of interest, the securities
held therefor and the same particulars with reference to any loans
made or discharged since the last annual statement.
(4) All other property owned by the company (including all
securities) whether or not recognized by the law as proper invest-
ments, the dates of acquisition, from whom acquired, the actual
cost, the value at which the same are carried upon the books, the
market f alue, the interest or dividends received thereon ; and also
the movements of securities and property other than real estate
acquired and disposed of during the year, setting forth all such
property purchased or sold during the year, with the names of
834 Legislcdive tnsuranc6 tnvesHgaUon.
puTchaaeTS and sellers, the price paid, the income received and
outlays made in connection therewith.
(5) A statement of all commissions paid to any persons in con-
nection -with loans or purchases or sales of "any property, giving'
the dates of payment and the names of the payees.
(6) A statement of all payments for legal expenses, giving dates
and names and addresses of the payees.
(7) A statement of all moneys expended in connection with
matters of legislation, giving the dates, the legislative measure or
proceeding in connection with which the payment was made, the
interest of the company therein, the amounts of the payments and
the names and addresses of the payees.
(8) A statement of the officers and directors of the company,
the proceedings at the last annual election, giving the names of
candidates and the number of votes cast for each, and whether in
person, by proxy or by mail.
(9) A statement of all the compensation and emoluments re-
ceived by any officer or director of the company or by any person
whose compensation is more than $5,000 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 carried in each bank
or trust company during each month of the year.
(11) All death claims resisted or compromised during the year,
with particulars as to sums insured, sum paid and reasons as-
signed 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 gains
or losses, and a statement showing separately the margins upon
premiums for the first year of insurance, according to the select
and ultimate method of valuation as prescribed in Article II. of
the Insurance Law, and the actual expenses chargeable to the
procurement of new business, which shall also show the manner in
which any general outlays of the company have been apportioned
for the purpose of arriving at the amount of such expenses.
(13) A statement separately shoAwng the amount of the gains
of the company for the year attributable to policies written after
December 31, 1906.
(14) A statement showing the rates of annual dividends de-
clared during the year for all plans of insurance and all dura-
tions, and for ages at entry 25, 35, 45 and 55, and the precise
method by which such dividends have been calculated.
Report of the Committee. 335
(li5) A statement showing the rates of dividends declared upon
deferred dividend policies completing their dividend periods, for
all j)lans of insurance, and the precise method by which such
dividends have been calculated.
(16) A statement showing any and all amounts set apart or
provisionally ascertained or calculated or held awaiting appor-
tionment upon policies with dividend periods longer than one year,
for aU plans of insurance and all durations and for ages of entry
as aforesaid, together with a precise statement of the- methods of
calculation by which the same have been provisionally or other-
wise determined.
(17) A statement of any and all reserve or surplus funds held
by the company and for what purpose they are claimed respec-
tively to be held.
It is the opinion of the Committee that the Superintendent is
vested with ample authority under the law with reference to su-
pervision and examination, save that he, his deputies and exam-
iners should be permitted to subpoena and examine under oath
at any time when he may deem it necessary, not only the officers
and agents of the corporation, but any person believed by him
to possess material information regarding the company's property
of affairs, and also to compel such person to produce any book or
paper in his custody containing information as to any transac-
tion of any of the companies and to submit the material portions
thereof to inspection.
PEN'ALTIES.'
Suitable penalties should be provided for infraction of law.
The provision of Section 36 that any director or officer who re-
ceives any money or valuable thing in connection with loans or
purchases made by the company should forfeit his position and
be disqualified from thereafter holding office in an insurance cor-
poration, should be repealed. Section 53, to the effect that any
person or corporation violating any provision of the Insurance
Law should forfeit $600 for each violation unless a different sum
was prescribed, should be repealed.
The violation of any of the provisions of the law should be made
a misdemeanor.
The provisions of the Penal Code as to perjury should be
amended so as to provide that in any prosecution the falsity of
the testimony or statement set forth in the indictment should be
336 Legislative Insurance Investigation. -*
presumptively established by proof that the defendant has made
oath to the contrary.
The provisions of the Penal Code as to the misconduct of offi-
cers and employees of corporations should also be amended to
make clearer provision for cases of false entries in books* and
accounts and the omission from reports of any matter required by
law to be stated.
Apart from what has already been suggested, the Committee
is not prepared to make recommendations with reference to in-
dustrial insurance further than to say that the subject is one de-
serving of special investigation. The most serious evils which
have been disclosed by this inquiry, to wit, the excessive premi-
ums, the enormous lapse rate and the hardships of the agents,
seem to be inherent in the system. A great reform could be ac-
complished if the expense of solicitation and collection could be
avoided by the establishment of branch offices where insurance
might be obtained by the thrifty poor who desire it. But the
opinion of those connected with the companies is that such a plan
would be impracticable and the committee is without information
which would justify an attempt to compel its introduction. It
is insisted that the present method is the most economical that
has yet been proved to be adequate to the exigencies of the busi-
ness. The alternative seems to be presented either of prohibit-
ing altogether industrial insurance by private corporations or of
permitting its continuance substantially upon the present basis,
subject to those regulations designed to secure economical admin-
istration, applicable to all companies alike.
It may be added that the Committee is also without facts which
would warrant the prohibition of insurance of children. Among
those who, from interest in charitable work or for other reasons,
have given special study to the subject, there seems to be no con-
sensus of opinion, while the companies assert with positiveness
that the neglect and injury to children which might be supposed
to follow from such insurance have no existence in fact. It is
urged that the insurance of children is in very small amounts and
is sought more frequently to obtain indemnity agaiiist a proper
burial than to c^erive any personal advantage for the parents. In
the absence of further evidence the Committee believes that legis-
lation would be unwise.
The Comuiittee regrets that it has been unable further to ex-
amine into assessment associations or to investigate fraternal
societies.
Report of the Committee. 337
Bills embodying the foregoing recommendations of the Oom-
mittee and providing for the amendment of the law in minor de-
tails not requiring discussion will be presented herewith^
The Committee and those associated with it have prosecuted
their work with the sole desire to do impartial justice and to
accomplish needed reforms in the interest of the people of the
State. They are confident that the proposed measures of relief
are not only salutary but essential. It is believed that they will
provide an adequate remedy for conditions which had become
intolerable and will place the life insurance business of this State
a})on a sound and enduring foundation.
Respectfully submitted by the Committee.
Dated, Albany, New York, February 22, 1906.
On the part of the Senate:
WM. W. ARMSTRONG,
WM. J. TULLY,
D. J. RIORDAK
On the part of the Assembly:
JAMES T. ROGERS,
ROBERT LYNN COX,
"W. W. WEMPLE,
EZRA P. PRENTICE,
JOHN McILEOWN.
BILLS INTRODUCED
BY THE
Joint Committee of the Senate and Assembly appointed
to investigate the affairs of Life Insurance Companies.
State of New York.
No. 963. Int. 810.
In As^kmbly,
February 22, 1906.
Introduced by JOINT COMMITTEE OE SEI^ATE AND
ASSEMBLY — (hj unanimous consent)-^read once and re-
ferred to the committee on Insubance:
AN ACT
To amend the legislative law relative to services in legisla-
tive matters.
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
1 Section 1. Chapter six hundred and eighty-two of the laws of
2 eighteen hundred and ninety-two, being chapter eight of the gen- '
3 eral laws and known as the legislative law, is hereby amended by
4 adding to article three a section designated as section sixty-six to
5 read as follows:
6 § 66. Every person retained or employed for compensation as
7 counsel or agent by any person, corporation or association to pro-
8 mote or oppose directly or indirectly the passage of bills or resolu-
9 tions by either house or to promote or oppose executive approval
10 of such bills or resolutions, shall, in each and every year, before
11 any service is entered upon in promoting or opposing such legis-
12 lation, file in the office of the secretary of state a writing sub-
13 scribed by such counsel or agent stating the name or names of the
14 person or persons, corporation or corporations, association or asso-
ExpLANATioN— Matter underscored is new; matter in braokete [ ] 1b
old law to be omitted.
341
S42 Legislative Insurance Investigation
1 ciations, by wlioin or on whose behalf he is retained or employed,
2 together with a brief description of .the legislation in reference to
3 which such service is to be rendered. No notice so filed shall be
4 valid for more than thirty days after the adjournment of the ses-
5 sioTi of the le^slature held in the year in which the same is filed.
6 It shall be the duty of the secretary of state to provide a docket
7 to be Icnown as the docket of legislative appearances, with appro*
8 priate blanks and indices, and to forthwith enter therein the
9 uames of the counsel and agents so retained or employed and of
10 the persons, corporations or associations retaining or employing
11 them, together with a brief description of the legislation in refer-
12 ence to which the service is to be rendered, which docket shall be
13 open to public inspection. Upon the termination of such em-
14 ployment the fact of such termination, with the date thereof, may
15 be entered by direction of either such counsel or agent or of the
16 employer. No person, corporation or association shall retain or
17 employ any person to promote or oppose legislation for compensa-
1 8 tion contingent in whole or in part upon the passage or defeat of
19 any legislative measure or measures. No person shall for compen-
•20 sation engage in promoting or opposing legislation except upon ap-
21 pearance entered in accordance with the foregoing provisions of
22 this section. And no person shall accept any such employment or
23 render any such service- for compensation contingent upon the pas-
24 sage or defeat of any legislative measure or measures. It shall be
25 the duty of every corporation and association doing business in this
26 state within two months after the adjournment of the legislature to
27 file in the office of the secretary of state an itemized statement veri-
28 fied by oath of an oiScer or agent of the corporation or association
29 showing in detail all expenses paid or incurred in connection with
30 legislation pending at the last previous session, including all dis-
31 bursements paid or incurred to counsel or agents, and also specif y-
32 ing the nature of said legislation and the interest of the eorpora-
33 tion therein. The provisions, however, of this section requiring
Bills Introduced hy tJie Comrmttee. 343
1 docket entries shall not apply to duly accredited counsel or agents
2 of counties, cities, towns, villages, public boards and public institu-
3 tions. And the provisions hereof shall not be construed as affect-
4 in professional services in drafting bills or in advising clients
5 and in rendering opinions as to the ctostruetion and effect of pro-
6 posed or pending legislation where stich professional service is not
7 otherwise connected with legislative action. Any person, associa-
8 tion or corporation violating any provision of this section and any
9 person causing or participating in a violation thereof shall be
10 guilty of a misdemeanor. And upon the failure of any foreign
11 corporation or association to comply with the provisions of this
12 section, in addition to the penalties above prescribed, the license
13 of such corporation or association to do business in this state shall
14 be revoked. And in addition to tiie penalties hereinbefore im-
15 posed any corporation or association failing to file the statement
16 of legislative expenses within the time required shall forfeit to the
17 people of the state the sum of one hundred dollars per day for
18 each day after the expiration of the two months within which such
19 statement is required to be filed, to be recovered in an action to be
20 brought by the attorney-general.
21 § 3. This act shall take effect immediately.
State of Ne^w York.
No. 964. Int. 811.
In A^sbmbly,
February 22, 1906.
Introduced by JOmi COMMITTEE OE SEITATE AND
ASSEMBLY — (by ■unaniinous consent) — read once and re-
ferred to the committee on Insxjbance.
AN ACT
Providing for the election of directors in mutual life insurance
corporations.
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
1 Section 1. The annual election oi directors of etery d&mestic
2 mutual life insurance corporation/ whether incorporated "by a
3 special act or under a general law, which otherwise according to
4 its charter or by-laws would be held hereafter and prior to iTovem'-
5 ber fifteenth, nineteen hundred and six, shall be postp'^hed and
6 held on said date and the directors of said corporations whose
7 terms would otherwise earlier expire shall continue to hold office
8 until said date and until their successors are elected; and on said
9 date the terms of office of all the directors of said corporations
10 respectively shall expire, anything to the contrary in the charter
11 or by-laws thereof notwithstanding. On said fifteenth day of No-
13 vember, nineteen hundred and six, the annual meeting of every
13 such corporation shall be held at a time and place which shall be
14 fixed by the board of directors and an entire new board of directors
Explanation— Matter underscored is new; matter is brackets [ 1 i«
old law to be omitted.
841
Bitls Introduced ly the Oommitiee. 345
1 shall then be elected. The said elections shall he under the super- '
3 vision .of the superintendent, of insurance who shall appoint at
3 least three policyholders of each corporation holding such an elec-
4 tion to act as inspectors thereof. No votes shall be cast at any'
5 such election under; any proxy executed prior to the first day of
6 July, nineteen hundred and six, and all proxies executed hereto-
7 fore or prior to said date authorizing any vote to be cast at any
8 election of directors of any domestic mutual life insurance corpo-
9 ration shall be void.
10 § 2. The new boards of directors elected as hereinbefore pro-
11 vided shall forthwith elect new officers of said corporations re-
13 spectively and the terms of office of any and all officers of said
13 corporations then in office shall expire upon the election and quali-
14. fica#on of their, successors, anything in the charier, by-laws or
'!'»;') f-' . ■ ' ■ 'j I. .', > . ■ ■■ ' ' . . •
15 in the terms of the appointment or election of such officers to the
id contrary notwithstanding.
17 ■ § 3. The said new boards of directors shall divide themselves
18 by lot into two classes as nearly eqiial as may be, one class to hold
19 office until the next annual meeting of the company and the other
20. class to hold office until one year from the date of the' next aimual
31 meeting, and at each annual meeting thereafter directors shall be
33 elected for a term of two years in the place of those whose terms^
33 of office then expire.
24 § 4. This act shall take effect immediately.
State of Ne^jsr York:.
Nd. 965. ^ lift fiiSi
In Asskmbly,
February ia, i{Sfd6<
Introduced by JOINT COMMITTEE OF SENATE Al^D
ASSEMBLY —('by tmanliiitftlls congent) — read ohcfe mi re-
ferred to the dof^nittse oH Is^BVBA]!r4}&
. AN ACT
Td amend the general CDrporation law relative id ptiliM con-
tributions by corporations.
The Pwph of ^e "State of New Torh represented M 8&nMe anS
Assembly^ do enact as follows:
1 Section 1. The general wtpossHim lassr is hereby ftttended by
2 adding thereto a new eeietioii to be kn»#5i dig Sfeetiea fb!rty<€ftB -to
3 read as follows:
4 § 41. No corporation tloing business in thife state ^shall directly
5 or indirectly pay or use or offer, consent Or agree to pay 0* lise
6 any money or property for or in aid of aay p6liti«al pj^tjr^ com»
7 mittee or organization, or for, or in aid of, any candidate for
8 political office or for nomination for such office, or for any political
9 purpose whatever, or for the reimbursement or indemnification
10 of any person for moneys or property so used. Every corporation
11 which violates this section and any officer, director, stockholder,
13 attorney or agent thereof who participates in, aids, abets or advises
13 or consents to any such violation, and any person who solicits or
14 knowingly receives any money or property in violation of this
ExpLANATioN-Matter underscored is new; matter in brackets [ 1 ia
old law to be onutted. •= i j "
8M
Bills Introduced hy fhe CommiUea. 34Y
1 section, shall be guilty of a misdemeanor. A person offending
2 -against this section is a competent witness against another per-
S son so offending and may be eompelled to attend and testify on
4 any trial, hearing or proceeding or investigation in the same man-
5 ner as a»y other person. The testimony so given shall not be
6 used in any prosecution or proceeding, civil or criminal, against
7 the .person testifying. Any such person testifying shall not there-
8 after be liable to indictment, prosecution or punishment for the
9 offense with reference to which his testimony wa^ given, and may
10 plead or prove the giving of. testimony accordingly, in bar of such
11 an indictment or prosecutionv
13 § 3 This act shall take effect impiediately.
State of Nev^ York.
No. 966. Int 813.
In A^skmbIvY,
February 22, 1906.
Ijitroduced by JOINT COMMITTEE OE SENATE AND
ASSEMBLY — (by unaiiiinoiis consent) — ^read once and re-
ferred to the committee on Insubance.
AN ACT
To amend the penal code relative to the crime of perjury.
The People of the State'of New York, represented in Senate and
Assembly, do enuct as follows:
1 Section 1. The penal code is hereby amended by adding thereto
2 an additional section to be known as section one hundred and one-a
3 to read as follows :
4. § 101-a. Contradictory statements under oath. — In any prose-
5 cution for perjury the falsity of the testimony or statement set
6 forth in the indictment shall be presumptively established by proof
7 that the defendant has testified, declared, deposed or certified un-
8 der oath to the contrary thereof in any other testimony, declara-
9 tion, deposition, certificate, affidavit or other writing by him
10 ^ubpcilbed.
11 § 2. This act shall take effect on the first day of September,
13 nineteen hundred and six.
ExiiLANATioN— Matter underscored ^^— ^^^— ^ is new; nutter In brackets [ 1 i«
old Jaw to be oiBivi»t
«8
State of Ne^v York.
No. 967. Int. 814.
In A^skmbIvY,
February 22, 1906.
Introduced by JOINT COMMITTEE OF SENATE AND
ASSEMBLY — (br unanimous consent) — ^read once and re-
ferred to the committee on Insuea^tce.
AN ACT
To amend the penal code in relation to the misconduct of
officers and employees of corporations.
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
1 Section 1. Subdivision two of section six hundred and eleven
2 of the penal code is hereby amended to^read as follows:
3 2. Makes or concurs in making any false entry^ or concurs in
4 omitting to make any material entry [thereofj in its books or
6 accounts; or,
6 § 2. Subdivision three of section six hundred and eleven of
7 the penal code is hereby amended to read as follows;
8 3. Knowingly concurs in making or publishing any written re-
9 port, exhibit or statement of its aifairs or pecuniary condition
10 containing any material statement which is false, or omitting any
11 statement required by law to be contained therein; or,
12 § 3. This act shall take effect on. the first day of September,
13 nineteen hundred and six.
ExpLAMATioN- Matter underscored is new; matter in brackets [ ] in
old law to be omitted.
349
State of Ne^NT Vork.
No. g68. Int. 815.
In As^kmbly,
February 22, 1906.
Introduced by JOINT COMMITTEE . OF SEl^TATE AND
ASSEMBLY — (by Tmanimous consent) — read once and re-
ferred to tbe comlnittee on Insueance.
AN ACT
To amend the penal code relating to rebates and allowances
by life insurance corporations.
The People of the State of New YotTc, represented in Senate and
Assembly, do enact as follows:
1 Section 1. The penal code is hereby amended by adding a new
2 section thereto to be known as section five hxmdred and seventy-
3 seven-k to read as follows :
4 § 577-1^. Any person knowingly receiving any rebate or allow-
5 ance or deduction from any premium, or any valuable thing
6 special favor or advantage whatever, as an inducement to take
7 any policy of life insurance, not specified in the policy is guilty
8 of a misdemeanor.
9 § 2. This act shall take effect on the first day of September,
10 nineteen hundred and six.
Explanation— Matter underscored ■ is new: matter In brackets [ ] is
old law to be omitted.
860
State of Ne^Af York.
No. g6g. Int. 8i6.
In AsskmbIvY,
February 22, 1906.
Introduced by JOINT COMMITTEE OF SENATE AND
ASSEMBLY — (by unanimous consent) — read once and re-
ferred to tbe committee on Insubance.
AN ACT
To amend the general corporation law relative to the acquisi-
tion of real property by life insurance corporations
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
1 Section 1. Section thirteen of the general corporation law, being
3 chapter six hundred and eighty-seven of the laws of eighteen hun-
3 dred and ninety-t'n:o, is hereby amended to read as follows :
4 § 13. Acquisition of additional real property. — When any eor-
5 poration, except a life insurance corporation, shall have sold or
6 conveyed any part of its real property, the supreme court may,
7 notwithstanding any restriction of a general or special law, au-
8 thorize it to purchase and hold from time to time other real prop-
9 erty, upon satisfactory proof that the value of the property so pur-
10 chased does not exceed the value of the property so sold and con-
11 veyed within the three years next preceding the application.
13 § 3. This act shall take effect immediately.
ExpLAHATioN— Matter underscored —— iB new; matter in brackets [ ] la
old law to be omitted,
851
State of Ne^sv Yorl^:.
No. 996, Int. 809.
In Asskmbly,
February 22, igo6.
Introduced by JOINT COMMITTEE OF SENATE AND
ASSEMBLY — (by unanimous consent) - — ■ read once and re-
ferred to the committee on Insukance.
AN ACT
To amend the insurance law generally.
The People of the State of New York^ represented in Senate and
Assembly, do enact as follows:
Section 1. Section two of the insurance law, being chapter six
hundred and ninety of the laws of eighteen hundred and ninety-
two, entitled "An act in relation to insurance corporations, con-
stituting chapter thirty-eight of the general laws," is hereby
amended to read as follows:
§ 2. The superintendent of insurance. — There shall continue to
be a separate and distinct department charged with the execu-
tion of the laws relating to insurance, to be known as the insur-
ance dep'artment, the chief officer of which shall be the superin-
tendent of insurance, who, after the termination of the term of
office of the present superintendent, or whenever a vacancy shall
occur in the office, shall be appointed by the governor, by and
with the advice and consent of the senate, and shall hold his office
for the term of three years. He shall receive an annual salary
of seven thousand dollars, which shall be in full of all services,
ExPLASATTON— Matter underscoreij it new: matter in brackets [ ] is
old law to be omitted. •«> i. j ~
852
Bills Introduced by the. OomrmUee. 353
performed by him in any capacity. The superintendent and
his deputies shall take and subscribe and file in tlie office of the
secretary of state the constitutional oath of office within fifteen
days from the time of notice of their appointments respectively.
The superintendent shall, within the same time, give an official
undertaking in the sum of twenty-five thousaxid dollars, with two
good sureties to be approved by the comptroller. Neither the
superintendent nor any deputy nor employee shall be directly or
indirectly interested in any insurance corporation, except as an
ordinary policyholder. All books, papers, documents, securities,
stocks, bonds and mortgages, and all other papers whatever, in the
office of the comptroller and in the office of the secretary of state
at the time of the passage of chapter three hundred and sixty-six
of the laws of eighteen hundred and fifty-nine, relating to the
"business of insuranoe, shall, on demand, be delivered and trans-
ferred to the superintendent, and be and remain in his charge
and custody.
§ 2. Section seven of the insurance law as amended by chapter
one hundreif and seventy-one of the laws of eighteen hundred and
ninety-eight is hereby amended to read as follows:
§ 7. Expenses of examinations. — The expense of every examina-
tion or other investigation of the affairs of an insurance corpora-
tion, pursuant to the authority conferred by the provisions of this
chapter, shall be borne and paid by the corporation so examined,
unless remitted by the superintendent. If a corporation for the
insurance of domestic animals, such expense shall not exceed
for any one corporation the sum of fifty dollars in any one year.
No charge shall be made for any examination of an insurance cor-
poration by the superintendent or his deputy personally, or by
one or more of the regular clerks of the department except for
necessary traveling and other actual expenses. AH charges for
making any examination and all charges against an insurance cor-
poration by an attorney or appraiser of the department shall be
354 Legislative Insurance Investigation.
presented in the lona of an itemized bill approved by the superin-
tend^t, audited by the comptroller, and paid on his warrant
dxawn in the usual manner on the state treasurer, to the person
making the examination. The corporation examined on receiving
a certified copy of such bill so approved, audited and paid, shall
repay the amount thereof to the superintendent of insurance, to
be by him paid into the state treasury to replace the money
drawn out as above provided. No insurance corporation [exam-
ined] shall either directly or indirectly pay by way of gift, credit
or otherwise, any other or further sum to the superintendent or
any clerk or employee of the insurance department or any exam-
iner for extra service or for purposes of legislation, or on any
other pretense whatsoever.
§ 3. Sfection eleven of the insurance law *as amended by
chapter seven himdred and twenty-five of the laws of eighteen
hundred and ninety-three is hereby amended to read as follows:
§ 11. Examination by superintendent. — If the declaration and'
charter specified in the preceding section shall be approved by the
attorney-general, the superintendent shall thereupon cause an
examination to be made by himself or by one or more competent
and disinterested persons specially appointed by him for that
purpose, into the affairs of the corporation or proposed corpora-
tion, [except in the case of corporations proposing tp incorporate
under article six of this chapter.] If such persons, after ex-
amination m^de, shall certify under oath, if it be a stock cor-
poration, that the amount of capital requiri^ by law has been
paid in and is possessed by it in cash, or is invested in the manner
required by law; or if a mutual or cooperative corporation, that
it has received and is in actual possession of the capital, pre-
miums or engagements of insuraiice to the full extent required by
law, the superintendent shall file such certificate in his depart-
ment. Every such insurance corporation shall also deposit with
the superintendent of insurance, before receiving authority to
BUls Iniroduced hy the Committee. 355
transact business in this state, sucli sums of money or securities
as may be required by law.
§ 4. Section fifteen of tbe insurance law is hereby amended to
read as follows:
§ 15. State treasurer to countersign transfers of securities. —
No transfer of securities held by the superintendent of insurance
shall be valid unless countersigned by the treasurer of the state
or [in his absence from his office or inability to perform its
duties by] his deputy, and upon notice of at lease five days to
the corporation depositing such securities. The treasurer shall
keep in his office or in the office of the superintendent a book in
which shall be entered the name of the corporation froih whose
account such transfer of securities is made by the superintendent,
the name of the transferee unle^ made in blank, the par value
of the securities transferred, the amount for which every mort-
gage transferred is held by the superintendfent ; and within five
days after countersigning and entering the same, the treasurer
shall advise by mail the corporation from whose account such
transfer is made, of the kind of security and the amount of the
same thus transferred. The treasurer shall have access at all
times during office hours to the books of the superintendent of
insurance for the purpose of ascertaining the correctness of any
transfer or assignment presented to him to countersign and the
superintendent shall have access to the book herein mentioned
kept by the treasurer during office hours to ascertain the correct-
ness of the eiitries upon the same. The treasurer shall state in
his aiinual report to the legislature the total amount of such
transfer or assignment eountersigHfed by him.
§ 5. Section sixteen of the insurance law as amended by chap-
ter one hundred and twelve of the laws of eighteen hundred and
ninety-three and by chapter nine hundred and sevente'en of the
kws of eighteen hundred and ninety-fiVe and by chapter two hiln-
356 Legislative Insurance Investigation.
dred and eighteen of the laws of eighteen hundred and ninety-
seven is hereby amended so as to read as follows :
§ 16. Investment of capital and surplus. — The cash capital of
every domestic insurance corporation required to have a capital,
to the extent of the minimum capital required by law, shall be
invested and kept invested in the kinds of securities in which
deposits with the superintendent of insurance are required by this
chapter to be made. The residue of the capital and the surplus
money and funds of every domestic insurance corporation over
and above its capital, and the deposit that it may be required to
make with the superintendent, may be invested in or loaned on
the pledge of any of the securities in which deposits are required
to be invested or in the public stocks or bonds of any one
of the United States, or except as [herein] in this ch3,pter other-
wise provided, in the stocks, bonds or other evidence of indebted-
ness of any solvent institution incorporated under the laws of
the United States or of any state thereof, or in such real estate
as it is authorized by this chapter to hold; but no such funds
shall be invested in or loaned on its own stock or the stock of any
other insurance corporation carrying on the same kind of in-
surance business. Any domestic insurance corporation may, by
the direction and consent of two-thirds o:f its board of directors,
managers or finance committee, invest, by loan or otherwise, any
such surplus moneys or funds in the bonds issued by any city,
county, town, village or school district of this state, pursuant to
any law of this state. Any corporation organized under the
ninth subdivision of section seventy of the insurance law, for
guaranteeing the validity and legality of bonds issued by any
state, or by any city, county, town, village, school district,
municipality, or other civil division of any state, may invest by
loan or otherwise any of such surplus moneys or funds in the
bonds which they are authorized to guarantee. Every such
doHiestio corporation doing business in other states of the United
Bills Introduced hy the Committee. 357
States or in foreign countries, may invest the funds required to
meet its obligation incurred in such other states or foreign
countries and in conformity to the laws thereof, in the same kind
of securities in such other states or foreign countries that such
corporation is by law allowed to invest in, in this state. Any
life insurance company may lend a sum not exceeding the lawful
reserve which it holds upon any policy, on the pledge to it of such
policy and its accumulations as collateral security. But nothing
in this section shall be held to authorize one insurance corpora-
tion to obtain, by purchase or otherwise, the control of any other
insurance corporation.
§ 6. Section twenty of the insurance law is hereby amended
to read as follows
§ 20. Restrictions as to real property. — Every insurance cor-
poration transacting business in this state may purchase, hold
and convey real property only for the following purposes and in
the following manner:
1. The building in which it has its principal office and the
land upon which it stands.
2. Such as shall be requisite for its convenient accommodation
in the transaction of its business.
3. Such as shall have been acquired for the accommodation of
its biisiness.
4. Such as shall tave been mortgaged to it in good faith by
way -of security for loans previously contracted or for moneys due.
5. Such as shall have been conveyed to it in satisfaction of
debts previously contracted in the course of its dealings.
6. Such as shall have been purchased at sales upon judgments,
decrees or mortgages obtained or made for such debts.
7. Such as shall have been acquired under sections thirteen,
and fourteen of the general corporation law.
All ?uch real property specified in subdivisions three, four, five,
rand] six and. seven of this section, [as it may acquirS^arid]
358 Legislative Insurance Investigation.
whicli shall not be necessary for its accommodation in the con-
venient transaction of its business, shall be sold and disposed
of within five years after it shall have acquired title to the same,
and it shall not hold such property for a longer period unless it
shall procure a certificate from the superintendent of insurance
that its interests will suffer materially by the forced sale thereof,
in which event the time for the same may be extended to such
time as the superintendent shall direct in such certificate. If it
is a domestic marine insurance corporation, it may also acquire
and hold such real property within the state or upon or in its
waters which is or may be adapted to or available for use in
protecting, storing and caring for wrecked vessels or cargoes, or
in protecting, storing or caring for such vessels and appliances
as are or may be employed for assisting the same, or which is or
may be adapted to or available for other purposes of or incident
to marine salvage service, and may manage and dispose of such
real property in the same manner and with like effect as if it were
an unincorporated owner thereof. No real property shall be ac-
quired by any life insurance corporation under subdivisions one
or two hereof or under section fourteen of the general corporation
law except with the approval of the superintendent of insurance.
No real property shall be disposed of by any life insurance cor-
poration by exchange for other real property as the consideration
for the transfer in whole or part unless the acquisition of the latter
shall be requisite for the convenient accommodation of the cor-
poration in the transaction of its business and shall be approved
by the superintendent.
§ 7. Section twenty-f Our .of the insurance law is hereby amended
to read as follows:
§ 24. Limitation of risk. — No domestic insurance corporation,
nor any insurance corporation organized under the laws of any
country outside of the United States, doing business in this state,
shall expose itself to any loss on any one risk or hazard to an
Bills tniroduGei ty thfi GommiHlm. SEjd
amount exceediiig ten per centum of its capital and surplus. No
insurance corporation incorporated under the laws of any other
state of the United States, doing business in this state, shall ex-
pose itself to any loss on any one risk or hazard within this state
to an amount exceeding ten per centum of its capital and surplus.
No portion of any such risk or hazard which shall have been
reinsured in a corporation authorized to do insurance business in
this state shall be included- in determining the limitation of risk
prescribed in this section. This section shallnot apply to life in-
suranee corporations.
§ 8. Section thirty-three of the insurance law, as amended by
chapter twenty-three of the laws of eighteen hundred and ninety-
six, is hereby amended to read as follows :
§ 33. Reciprocal requirements. — If, by the existing or future
laws of any state, an insurance corporation of this state having
agencies in such other state or tie agents thereof, shall be re-
quired to make any deposit of securities in such other state for
the protection of policyholders or otherwise, or to make payment
for taxes, fines, penalties, certificates of authority, license fees or
otherwise, greater than the amount required by this chapter from
similar corporations of such other state by the then existing laws
of this state, then and in every such case, all insurance corpora-
tions of such state, established or heretofore having established
an agency or agencies in this state shall be and they are hereby
required to make the like deposit for the like purposes in the in-
surance department of this state, and to pay the superintendent of
insurance for taxes, fines, penalties, certificates of authority,
license fees and otherwise, an amount equal to the amount of such
charges and payments imposed by the laws of such other stat«
upon the insurance corporations of this sta,te and the agents
thereof.' The superintendent of insurance may remit any of the
fees and charges which he is required by law to collect, except
such as he is required to collect by virtue of this section; but no
discrimination shall be made in favor of one corporation over
360 Legislaiive Inswamce Invesiigcdion.
another from the tiame state or country. Whenever it shall ap-
pear to the superintendent of insurance that perraission to trans-
act business -within any state -of the United States or within
any foreign country is refused to a company organized under the
laws of this state, after a certificate of the solvency and good
management of such company has been issued to it by the said
superintendent and after such company has complied with any
reasonable laws of such state or foreign country requiring de-
posits of money or securities with the government of such state
or country, then and in every such case, the superintendent [shall]
may forthwith cancel the authority of every company organized
under the laws of such state or foreign government and licensed
to do business in this state, and [shall] may refuse a certificate
of authority to every such company thereafter applying to him
for authority to do business in this state, until his certificate shall
have been duly recognized by the government of such state or
country.
§ 9. Section thirty-six of the insurance law is hereby amended
to read as follows:
§ 36. Ofiicers and directors not to [receive compensation for.
negotiating loans] be pecuniarily interested in transactions.- — ^JSTo
director or ofiicer of an insurance corporation doing business in
this state shall receive any money or valuable thing for negotiat-
ing, procuring, [or] recommending [any loan from any such
corporation, or for selling or aiding in the sale of any stocks or
securities to or by such corporation] or aiding in, any purchase
by or sale to such corporation of any property, or any loan from
such corporation, nor be pecuniarily interested, either as prin-"
cipal, coprincipal, agent, or beneficiary, in any such purchase,
sale or loan; provided that nothing herein contained shall prevent
a life insurance corporation from making a loan upon a policy
held therein by the borrower not in excess of the net value thereof.
Any person violating [the] any .provision [s] of this section
Bills Introduced by the Committee. Sfil
shall [forfeit his position as such director or officer, and be
disqualified from thereafter holding any such office in any insur-
ance corporation] be guilty of a njisdemeanor.
§ 10. Section thirty-nine of the insurance law is hereby
amended to read as follows:
§ 39. Examiners and examinations. — [The superintendent of
insurance shall, as often as he deems it expedient, appoint one
or more competent persons not officers of or connected with, or
interested in any insurance corporation doing business in this
state, other than as a policyholder, as examiners to examine into
the affairs of any such corporation. Such examiners may
examine under oath the officers and agents of any such corpora-
tion and its books, with reference to its business.] The super-
intendent of insurance sha^l at least once in three years examine
into the affairs of every insurance corporation doing business in
this state and may examine any such corporation as often as
he may deem it expedient. For such purpose he may appoint as
examiners one or more competent persons not officers of or con-
nected with or interested in any insurance corporation other
than as policyholders; and upon such examination he, his deputy
or any examiner authorized by him may examine under oath
the officers and agents of such corporation and all persons deemed
to have material information regarding the company's property
or business. Every such corporation, its officers and agents, shall
produce its books and all papers in its or their possession relating
to its business or affairs, and any other person may be required
to produce any book or paper in his custody deemed to be relevant
to the examination, for the inspection [and examination of such]
of the superintendent, his deputies or examiners whenever re-
quired; and the officers and agents of such corporation shall f acili-
tate such examination and aid the examiners in making the same
so far as it is in their power to do so. Every such examiner shall
make a full and true report of every examination made by him,
3^2 Legislative Insurance Investigation.
verified by his oath; whicli report so verified shall be presumptive
evidence in any action or proceeding in the name of the people
against the corporation, its officers or agents, of the facts stated
therein. The superintendent shall grant a hearing to the -cor-
poration examined before filing any such report; and may withhold
any such report from public inspection for such time as he may
deem proper and may, if he deems it for the interest of the public
to do so, publish any such report or the result of any such exam-
ination as contained therein, in one or more newspapers of the
state.
§ 11. Section forty of the insurance law is hereby amended to
read as follows:
§ 40. Examination by superintendent upon request of stock-
holder, policyholder or creditor.-^The superinteiideBt shall jnsiks
an examination into the affairs of any insurance corporation doing
business in this state, whenever any stockholder, policyholder or
judgment creditor of any such corporation shall, by a declaration
subscribed and sworn to by him, notify the superintendent [that
from facts within the knowledge oftheperson making the declara-
tion, and stated therein, he believes the condition of such corpora-
tion does not justify its continuance in business, and if .the superin-
tendent is satisfied from the facts stated that the corporation is in
such a condition.] of facts within the knowledge of the person
making the declaration, and stated therein, or within the knowl-
edge of persons whose affidavits stating the same are presented
therewith, which in the judgment of the superintendent make such
an examination advisable. [ITo such examination shall be made
within twelve months from the time when an examination shall
have been made by an examiner of the department. No stock-
holder or creditor of any such domestic corporation, without its
consent by a vote of its board of directors, at a meeting called for
that purpose, shall maintain an action for the dissolution of the
coiporajcion, or appry fe tk; a;|jDointment of a receiver of its
Bills Introduced hy the Committee. 363
property and effects unless after notification by such creditor or
stockholder as in this section provided the superintendent, if satis-
fied as aforesaid, shall neglect or refuse for the space of thirty days
to cause such examination to be made.]
§ 12. Section forty-five of the insurance lavr is hereby amended
to read as follows :
§ 45. Forms of report to be furnished by superintendent. — The
superintendent shall cause to be prepared and furnished to every
corporation required by the provisions of this chapter to report
to him, printed forms of the reports and statements required of
such corporations. He may make such changes from time to
time in the form of the same as shall seem to him best adapted
to elicit from such corporations a true exhibit of their condi-
tion in respect to the several matters which they are required
to report, or in respect to any pther matters which he may deem
material. The report of any corporation, the capital of which
is composed in whoje or in part of notes, shall, in addition to
the foregoing, exhibit the amoimt of notes originally forming its
capital, and also what proportion of such notes is still held by
the corporation and considered capital. If a corporation, incor-
porated under the laws of any state or country outside of the
Fnited States, such report with respect to the business done
and assets held by or for the corporation, shall only contain a
statement of the business done and assets held by or for it
vTithin the United States for the protection of all policyholders
-residing within the United States, and shall not contain any
statement in regard to its assets and business elsewhere. Jfa
addition to any other penalty prescribed by law, every insur-
ance corporation failing to make and file the reports and
statements required by this chapter or to reply to any inquiry
o£ the superintendent, shall forfeit to the people of the state
five hundred dollars for the first offense, and an additional five
hundred dollars for every month that such corporation shall
56
864 Legislative Insurance Investigation.
ibereafter continue to transact any business of insurance in this
state.
§ 13. Section fifty-two of the insurance law as amended by
chapter seven hundred and twenty-five of the laws of eighteen
hundred and ninety-three, by chapter seven hundred and twenty-
two of the laws of nineteen hundred and one, and by chapter
five hundred and seventy-four of the laws of nineteen hundred
and five, is hereby amended to read as follows : .
§ 52. Eeorganization of existing corporations and amendment
of certificates. — Any domestic corporation existing or doing
business at the time this chapter takes effect, may, by a vote of
a majority of its directors or trustees accept provisions of this
chapter and amend its charter to conform with the same, upon
obtaining the consent of the superintendent of insurance thereto
in writing; and thereafter it shall be deemed to- have been incor-
porated under this chapter, and every such corporation in reincor-
porating under this provision may, for that purpose so adopt
in whole or in part a new charter, in conforniity herewith, and
include therein any or all provisions of its existing charter, and
any or all changes from its existing charter, to cover and enjoy
any or all the privileges and provisions of existing laws which
might be so included and enjoyed if it were originally incorpo-
rated thereunder, and it shall, upon such adoption of and after
obtaining the consent, as in this section before provided, to such
charter, and filing the same and the record of adoption and con-
sent in the office of the superintendent of insurance, perpetually
enjoy the same as and be such corporation, and which.is declared
to be a continuation of such corporation which existed prior to
such reincorporation; and the offices therein which shall be con-
tinued shall be filled by the respective incumbents for the periods
for which they were elected, and all others shall be filled in the
same manner by such amended charter provided. • Every domestic
insurance corporation may amend its charter or certificate of in-
corporation by inserting therein any statement or matter which
Bills Introduced hy the Committee. 365
might have been originally inserted therein; and may likewise
amend its charter or certificate of incorporation, by inserting
therein any powers which, at the time of such amendment, may
have been conferred by law upon domestic insurance corporations
engaged in a business of the same general character, or which
might be included in the certificate of incorporation of a domestic
insurance company organized imder any general law of this state
for a business of the same general character; and the same pro-
ceedings shall be taken upon the presentation of such amended
charter or certificate to the superintendent of insurance, as are
required by this chapter to be taken with respect to an original
charter or certificate, and if approved by the superintendent of in-
surance and his certificate of authority to do business thereunder
is granted, the corporation shall thereafter be deemed to possess
the same powers and be subject to the same liabilities as if such
amended charter or certificate had been its original charter or
certificate of incorporation, but without prejudice to any pending
action or proceeding or any rights previously accrued. Upon the
reincorporation or upon the amendment of the charter of any life
insurance corporation,, having a capital stock, in accordance with
the provisions of this section', it may by a vote of a majority of its
directors confer upon its policyholders or upon such pol-
icyholders ag may have a prescribed amount of insurance upon
their lives the right to vote for all or any less number of the
directors in such manner not inconsistent with any provision
of this chapter as may be authorized by a vote of the stock-
holders representing at least a majority of the capital stock
at a meeting of stockholders called for the purpose. Sestion
thirty-two of the stock corporation law shall not apply to such a
corporation. This section shall apply to insurance corporations
organized under or subject to article six of the insurance law
as well as to insurance corporations organized under specia-l
566 Legislative insurance Investigation.
charters or article two of the insurauce law. In the case of
any corporation organized nnder or subject to article six of
the insurance law, which corporation has amended its charter
and is now operating under article two of the insurance law, all
contracts, policies and certificates issued prior to its reincorpora-
tion, shall be valued as one year term insurance at the ages at-
tained excepting when such contracts, policies or certificates shall
provide for a limited number of specified premiums or for specified
surrender values, in which case they shall be valued as provided in
article two, section eighty-four of the insurance law. But no life
insurance corporation shall hereafter be permitted to avail itself of
the provisions of this section unless it shall hold for all its out-
standing policies or certificates assets equal in value to the mini-
mum reserve required by section eighty-four of the insurance law.
§ 14. Section fifty-three of the insurance law is hereby amended
to read as follows:
§ 53. Any corporation or person violating any provision of the
insurance law [shall forfeit, to the people of the- state the sum of
five hundred dollars for every such violation unless a different
-sum is specifically provided for the violation by the provisions of
this chapter. Such sum, when collected, shall be paid into the
treasury of the state], -except where such violation constitutes a
felony, shall, in addition to any penalty otherwise prescribed for
such violation, be guilty of a misdemeanor.
§ 15. Section fifty-six of the insurance law is hereby repealed.
§ 16. The insurance law is hereby amended by adding a new
section thereto, to be known as section fifty-eight, to read as
follows:
§ 58. Policy to contain the entire contract; statements of in-
sured to be representations and not warranties. — Every policy of
insurance issued or delivered within the state on or after the first
day of January, nineteen hundred and seven, by any life insurance
corporation "doing business within the state shall contain the entire
Bills Introduced by the Committee, SC?
contract between the parties and nothing shall be incorporated
therein by reference to any constitution, by-laws, rules, appli-
cation or other writings unless the aame are endorsed upon or
attached to the policy when issued; and all statements purporting
to be made by the insured shall in the absence of fraud be deemed
representations and not warranties. Any waiver of the pro-
visions of this. section shall be void.
§ 17. Section fifty-nine of the insurance law is hereby amended
to read as follows:
§ 59. Certain provisions in policies prohibited. — 'No corpo-
ration issuing policies of insurance upon the lives of persons,
whether such corporation is a domestic one, existing under the
laws of the state, or a foreign one which has become entitled to
do business within the state, shall, after this section shall take
effect, provide in any application, policy or certificate of insur-
ance, that the person soliciting such insurance, or any person
who is engaged in the business of soliciting insurance for the
company issuing such policy, or certificate, and whose compen-
sation is either paid by said company, or is contingent upon the
issuing of such policy, is the agent of the person insured under
said policy or ceitificate, or shall insert in said policy or certifi-
cate any provision to make the acts or representations of such
person binding upon the person so insured under said policy or
certificate.
§ 18. The insurance law is hereby amended by adding thereto
■a new section, to be known as section sixty, to read as follows :
§ 60. Estimates and misrepresentations prohibited. — ISTo life
insurance corporation doing business in this state and no ofiicer,
director or agent thereof shall issue or circulate, or cause or
permit to be issued or circulated, any estimate, illustration, cir-
t3ulaf or statement of any sort misrepresenting the terms of any
policy issued by it or the benefits or advantages promised thereby,
or the dividends or share of surplus to be received thereon, or
368 Legislative Insurance Investigation.
shall use any name or title of any policy or class of policies mis-
representing the true nature thereof. Any violation of this sec-
tion shall constitute a misdemeanor.
§ 19. Section seventy of the insurance law, as amended by
chapter nine hundred and seventeen of the laws of eighteen hun-
dred and ninety-five, by chapter six hundred and ninety-three of
the laws of eighteen hundred and ninety-nine, by chapter six
hundred and forty-three of the laws of nineteen hundred and one
and by chapter five hundred and seventy-three of the laws of nine-
teen hundred and five, is hereby amended to read as follows :
§ 70. Incorporation. — ^Thirteen or more persons may become a
coi-poration for the purpose of making any of the following kinds
of insurance:
1. Upon the lives or the health, of persons and every insurance
appertaining thereto, and to grant, purchase or dispose of
annuities.
2. Against injury, disablement or death resulting from travel-
ing or general accident, and against disablement resulting from
sickness, and every insurance appertaining thereto.
3. Insuring any one against loss or damage resulting from ac-
cident to or injury suffered by an employee or other person, and
for which the person insured is liable.
4. Guaranteeing the fidelity of persons holding places of public
or private trust. Guaranteeing the performance of contracts
other than insurance policies and executing or guaranteeing bonds
and undertakings required or permitted in all actions or pro-
ceedings or by law required.. Guaranteeing and indemnifying
merchants, traders anc^ those engaged in business and giving
■credit from loss and damage by reason of giving and extending
credit to their customers and those dealing with them; and cor-
porations authorized to do such last named business in this sub-
division mentioned shall have all the powers conferred by sectioii
one hundred and seventy-eight of this chapter.
5. Against loss by burglary or theft, or both.
Bills Introduced hy the Committee. 3G9
6. Upon glass against breakage.
T. Upon steam boilers and pipes, engines and machinery con-
nected therewitH or operated thereby, against explosiooi and acci-
dent and against loss or damage to life or property resulting there-
from, and to make inspection of aad to issue certificates of- inspec-
tion upon such boilers, pipes, engines and machinery.
8. Against any other casualty specified in the charter which
may lawfully Ke the subject of insurance.
9. Guaranteeing the validity and legality of bonds issued by
any state, or by any city, county, town, village, school district,
municipality or other civil division, of any state or by any private
or public corporation.
By making and filing in the office of the superintendent of in-
surance a certificate signed by each of them, stating their inten-
tion to form a corporation for the purpose or purposes named in
some one of the foregoing subdivisions specifying the subdivis-
ions; and setting forth a copy of the charer which they propose
to adopt, which shall state the name of the proposed corpora-
tion, the place where it is to be located, the kind of insupance
to be undertaken, and under which of the foregoing subdivisions
it is authorized, the mode and manner in which its corpor-
ate powers are to be exercised, the manner of electing its
directors and officers, a majority of whom shall be citizens and
residents of this state, the time of such elections, the manner of
filling vacancies, the amount of its capital, if any, and such other
particulars as may be necessary to explain and make manifest
the objects and purposes of the corporation. Such certificate
shall be proved or acknowledged and recorded in a book to be
kept for that purpose, and a certified copy thereof delivered to
the persons executing the same. A mutual company, without
capital stock, may be organized for the purposes, either separately
or taken together, specified in the first and second subdivisions
of this section. Except as above provided, no such corporation
shall be formed under this article for the purpose of under-
370 Legislative Insurmice Invesiigcdion.
taking any other kind of insurance than that specified in some
one of the foregoing subdivisions, or more kinds of insurance
than are specified in a single subdivision; [except that] biij: a
corporation other than a mutual corporation may be formed for
all the purposes combined, or any two or more of them, specified
in the first, second and third subdivisions, or for all the purposes
combined, or any two or more of them specified in the second,
third, fourth, fifth, sixth, seventh, and eighth subdivisions. After
June first, nineteen hundred and five, no corporation or associa-
-tion shall transact, in connection with any other kind of insur-
ance mentioned in the foregoing subdivisions, the business
of guaranteeing and indemnifying merchants, traders and those
engaged in, business and giving credit from loss and damage by
reason of giving and extending credit to their customers and
those dealing with them, except such a corporation or association
as shall have been authorized to transact such business before
said date; but such a corporation or association may continue
to transact such business with all the powers and privileges
theretofore possessed or enjoyed by it. No one policy issued by
any one corporation shall embrace more kinds of insurance than
are specified in one of such divisions, but a policy may embrace
risks specified in' subdivisions two and three.
§ 20. Section seventy-one of the insurance law is hereby
amended to read as follows:
§ Tl. Completion of organization. — Upon receipt of the cer-
tified copy of the certificate of incorporation from the superin-
tendent, the person signing such certificate [s] shall public notice
of their intention to form such corporation in [the state] a paper
designated- by the superintendent for six successive weeks, upon
expiration of which time they may open books to receive sub-
scriptions, if a stock corporation, to the capital stock, or if a
mutual corporation for life insurance, and keep them open ixntil
the whole of such stock or the minimiim amount of life insurance
has been subscribed for, and collect such subscriptions to the
Bills Introduced by the Committee. 3Tl
capital stock or the anmial iireminms payable upon sucli insur-
ance; and may invest such capital or moneys in the manner pre-
scribed in this chapter. No such corporation shall transact any
business of insurance until, if a stock corporation, the capital
has been fully paid in in cash or, if a mutual corporation, at least
five hundred persons have subscribed in the aggregate for at
one million dollars of insurance upon their lives and shall each
have paid in one full annual premium in cash upon the insurance
subscribed for, nor in either case until it shall have deposited with
the superintendent of insurance one hundred thousand dollars
in the securities required by law. If organized for purposes men-
tioned in two or more of the [foregoing] subdivisions of section
seventv, it shall deposit with the superintendent the same amount
in securities in the aggregate not exceeding two' hundred and fifty
thousand dollars, as if corporations had been separately formed
for such purposes. The securities deposited pursuant to this
section shall be held by the superintendent in trust for the benefit
and protection of and as -security for the policyholders of the
corporation.
§ 21. Section seventy-three of the insurance law is hereby
amended to read as follows:
§ Y3. Special deposits to secure registered policies and annuity
bonds. — Any domestic life insurance corporation may deposit
with the superintendent of insurance securities of the kinds and
in addition to the amount now required and authorized by law
to be deposited with [it] him to any amount not less than
twenty-five thousand dollars, which shall be legally transferred
by it to the superintendent for the common benefit of all the
holders of its registered policies and annuity bonds issued under
the provisions of this article, and he shall hold the same in trust
for the purposes and objects specified in this article. Such securi-
ties shall not be alienated from the purposes of such trust, nor
transferred except in the manner provided in this article, and
such transfer must be made by the superintendent under his seal
872 Legislative Insurance Invesiigation.
of office upon the written application, under its corporate seal,
of tlie corporation making tlie deposit, or of the receiver of such
corporation, and in compliance with the laws of the state relat-
ing to such transfers. When such securities shall have been
legally transferred to the superintendent, he shall issue to such
corporation registered policies of insurance or annuity bonds of
such denominations or amounts as the corporation may require.
Such policies or bonds shall bear upon the face thereof the words
" the reserve on this policy (or bond) is secured by pledge of
public stock or bonds and securities " with the seal of the depart-
ment, and shall be countersigned by the superintendent or his
authorized deputy. The corporation shall be charged by the
superintendent upon the delivery of such policies or bonds with
the amounts of the net [present] value thereof at the end of
the policy year, valued [by the table authorized by law in rela-
tion to life insurance corporations] according to the provisio*is
of section eighty-four of this chapter [amount and number of
premiums paid annually,] making proper allowances for semi-
annual [ly or] quarterly or monthly premiums [thereon anii
the terms thereof,] but in no case shall the amount of [such
value exceed in the aggregate the amount of] securities deposited
imder the provisions of this section be less than the amount of
such aggregate values.
§ 22. Section eighty-three of the insurance law is hereby
amended to read as follows:
§ 83. Distribution of surplus to policyholders. — [Any domestic
life insurance corporation may ascertain at any given time, and
from time to time, the proportion of surplus accruing to each
policy from the date of the last to the date of the next succeed-
ing premium payment, and may distribute the proportion found
to be equitable either in cash, in reduction of premium, or in
reversionary insurance, payable with the policy, and upon the
same conditions as therein expressed at the next succeeding date
of such payment, notwithstanding anything in the charter of such
Bills Introduced hy the Gommitiee. 373
corporation to the contrary.] Except as herein provided, every
domestic life insur^ince corporation heretofore or hereafter organ-
ized, yyhether incorporated by special act or under a general law,
anything in its charter or certificate of incorporation or in such
special act or general law to the contrary notwithstanding, and
every foreign life insurance corporation doing business within
the state shall provide in eveiy policy issued on or after the first
day of January, nineten hundred and seven, that the proportion
of the surplus accruing upon said policy shall be ascertained and
distributed annually and not otherwise. Upon the thirty-first
day of December of each year, or as soon thereafter as may be
practicable, every such corporation shall well and truly ascer-
tain the surplus earned by such corporation during said year. ,
After setting aside from such surplus such -sums as may be
required for the payment of authorized dividends upon the capital
stock, if any, and for a contingency reserve not in excess of the
amount prescribed in this article, every such corporation sh-all
separately determine the aggregate amount of the remaining sur-
plus which shall be equitably apportionable to all policies issued
on or after the first day of January, nineteen hundred and seven,
and shall apportion such amount to said policies according to
their respective shares. The share of surplus so apportioned shall
be payable to the holder of the policy in cash or at his option
shall be permitted to accumulate to the credit of the policy at
such rate of interest as shall be allowed by the company, and
with such interest shall be payable upon the maturity of the
policy or shall be withdrawable in cash by the holder of ,the policy
on any anniversary of the date of issue thereof, or shall be appli-
cable to the payment of any premiiim or ^ premiums upon said
policy or to the piirchase of a paid-up addition thereto. Such
corporation may require the holder of the polic^y to elect the
manner in which said dividends shall be applied as above provided
374 Legislative Insurance Invesligation.
by mailing, a written notice of the amount of the said dividends
and the options available as aforesaid to the policyholder in a
sealed envelope in J^he manner required by the provisions of this
chapter for hotices of premium payments, and in case the policy-
liolder shall fail to notify the company in writing of his election
within three months after the date of the, mailing of said notice,
the surplus shall be applied by the company to the purchase of a
paid-up addition to the sum insured. The, dividends declared
as aforesaid shall be payable respectively either upon the anni-
versary of the policy next after' said thirty-first 3ay of Deceni-
ber or upon a day certain in the year following ^aid date, accord-,
ing to the rules of the corporation and the terms of the policy,
and upon the sole condition that ^he premium payments for the
policy year current upon said thirty-first day of December shall
have been completed. This section shall not apply to any stock life
insurance corporation which on or after the first day of January,
nineteen hundred and seven, shall transact and shall represent
itself as transacting its business exclusively upon a nonmutual
basis and shall after said date issue only nonparticipating policies.
§ 23. Section eighty-four of the insurance law as amended by
chapter one hundred and forty-seven of the laws of eighteen hun-
dred and ninety-three and by chapter three hundred and forty-sijc
of the laws of nineteen hundred and one is hereby amended to read
as follows :
§ 84. Valuation of policies. — The superintendent of insurance
shall annually make valuations of all outstanding policies, addi-
tions thereto, unpaid dividends,' and all other obligations of every
life insurance corporation .doing business in this state. All
valuations made by .him or by his authority shall be made ^upon
the net premium basis, [according to the standard of valuation
adopted by the company for the obligation to be valued; pro-
vided, that in every case the standard of valaation employed
shall be stated in his annual report. Any company may ado'^t
Bills Introduced hy the Oommittee. 375
but if tlie total value determined by any sucb standard for the
obligations for wbicli it has been adopted sliall be less than
that determined by the legal minimum standard hereinafter pre-
scribed, or if the company adopt no standard, said legal minimum
standard shall be used.] The legal minimum standard for con-
tracts issued before the first day of January, nineteen hundred
and one, shall be the actuaries' or combined experience table of
mortality with interest at four per centum per annum, and for
contracts issued on or after said day shall be the American experi-
ence table of mortality with interest at three and one-half per
centum per annum; provided that the legal minimum valuation of
all contracts issued on or after the first day of January, nineteen
hundred' and seven, shall be in accordance with the select and
ultimate method, and on the basis that the rate of mortality during
the first five years after the issuance of said contracts respectively
shall be calculated according to the following percentages of the
rates shown by the American experience table of mortality, to
wit, first insurance year fifty per centum thereof, second insurance
year sixty-five per centiim fhereofj third insurance year seventy-.
five per centum thereof, fourth insurance year eighty-five per
centum thereof, and fifth insurance year ninety-five per centum
thereof. The Superintendent may vary' the standards of interest
and mortality in the case of corporations from foreign countries
as to contracts issued by such corporations in other countries than
the United States; and in particular cases of invalid lives and other
extra hazards, and value^ policies in groups, use approximate aver-
ages for fractions of a year and otherwise, [and calculate values
by net premiums or otherwise] and accept the valuation of the
department of insurance of any other state or country if made
upon the basis and according to the standards herein required in
place of the valuation herein required if the insurance ofiicer of
such state or country accepts as suiScient and valid for all pur-
poses the certificate of valuation ^of the superintendent of insur-
376 Legislative Insurance Investigation.
ance of this state. No policy issued after the thirty-first day of
December, nineteen hundred and six, shall be valued as term insur-
■ ance unless premitmis are based upon net term rates ; and no policy
with level premiums issued after said date shall be valued as term
insurance for the first policy year. As soon as practicable after
the first day of January, nineteen hundred and seven, the super-
intendent of insurance shall fix legal minimum standards for the
valuation of industrial policies and annuities which shall be valued
in accordance therewith. Any life insurance corporation may
voluntarily value its policies according to the American experi-
enee table of mortality at a lower rate of inte^st than that above
prescribed, but no lower than three per centum per annum, and
with- or without reference to the select and ultimate method of
valuation, and in every such case shall report any excess of its
valuations over those computed by the said legal minimum stan-
dard and also the standards used by it in making the same to the
superintendent of insurance in its annual statement, provided that
no such standards if adopted shall be abandoned without the con-
sent of the superintendent of insurance first obtaining in writing.
§ 24. Section eighty-seven 'of the insurance law is hereby
repealed.
§ 25. The insurance law is hereby amended by the addition of
a section to article two thereof to be known as section eighty-
seven to read as follows:
§ 87. Contingency reserve. — Any life insurance corporation
doing business in this state may accumulate and maintain a
contingency reserve out of the surplus attributable to policies
issued on or after the first day of January, nineteen hundred
and seven, not exceeding the following respective percentages of
the net values of said policies computed according to the legal
minimum standard prescribed by section eighty-four of tiiis chap-
ter, to wit: "When said net values are less than one hundred
Bills Introduced hy the Committee. 311
thousand dollars, twenty per centum thereof or the sum of ten
thousand dollars, whichever is the greater; when said net values
are greater than one hundred thousand dollars, the percentage
thereof measuring the contingency reserve shall decrease one-half
of one per centum for each one hundred thousand dollars up to
one million dollars; one-half of one per centum for each addi-
tional one million dollars up to ten million dollars; one-half of
one per centum for each' additional two million five hundred
thousand dollars up to twenty million dollars; one-half of one per
centum for each additional five million dollars up to fifty million
dollars; one-half of one per centum for each additional twenty-
five million dollars up to, one hundred million dollars; one-half
of one per centum for each additional fifty million dollars up
to two hundred million dollars; one-half of one per centum for
each additional one hundred million dollars up to five hundred
million dollars; and if said net values equal or exceed the last
mentioned amount, the contingency reserve shall not exceed two
per centum thereof. Provided that as the net values of said
policies increase and the maximum percentage measuring the
contingency reserve decreases such corporation may maintain
the contingency reserve already accumulated hereunder, although
for the time being it may exceed the maximum percentage herein
prescribed, but may not add to the contingency reserve when
the addition will bring it beyond the maximum percentage; and
provided further that no such corporation ha^^ing existing sur-
plus funds or contingent reserves or funds awaiting distribution
as deferred dividends shall be entitled at any time to accumulate
any additional contingency reserve under this section except to
the extent that the aggregate of such reserves and funds is less
than the contingency reserve to which it would be entitled ac-
cording to the rates above mentioned if computed upon the net
values of the total policies then outstanding. ,
378 Legislative Insurance Investigation.
§ 26. Section 'eighty-eight of the insurance law is hereby-
amended to read as follows::
'§ 88. Surrender value of lapsed or forfeited policies. — "When-
ever any policy of life insurance issued after January first, eight-
een hundred and eighty, ,and before January first, nineteen hun-
dred and seven, by any domestic life insurance corporation after
being in force three full years, shall, by its terms, lapse or become
forfeited for the nonpayment of any premium or any note given
for a premium or loan made in cash on such policy as security,
or of any interest on such note or loan, the reserve on such
policy computed according to the American experience table of
mortality at the rate of four and one-half per centum per annum
shall, on demand made, with surrender of the policy within six
months after such lapse or forfeiture, be taken as a single pre-
mium of life insurance at the published rates of the corpora-
tion at the time the policy was issued, and shall be applied, as
shall have been agreed in the application or policy, either to
continue the insurance of the policy in force at its full amount
so long as such single premium will purchase temporary insur-
ance for that amount, at the age of the insured at the time of
lapse or forfeiture, or to purchase upon the same life at the
same age paid up iasurance payable at the same time and under
the same conditions, except as to payments of premiums,- as the
original policy. If no such agreement be expressed in the appli-
cation or policy, such single premium may be applied in either
of the modes above specified at the option of the owner of the
policy, notice of such option to be contained in the demand herein-
before required to be made to prevent the forfeiture of the policy.
The reserve hereinbefore specified shall include dividend addi-
tions calculated at the date of the failure to make any of the
payments above described according to the Americau experience
table of mortality with interest at the rate of four and one-half
per centum per annum after deducting any indebtedness of the
insured on account of any annual or semi-annual or quarterly
Bills Introduced by the Committee. 379
premium then due, and any loan made in cash on such policy,
evidence of which is acknowledged by the insured in writing.
The net value of the insurance given for such single premium
under this section, computed by the standard of this state, shall
in no case be less than two-thirds of the entire reserve computed
according to the rule prescribed in this section after deducting
the indebtedness as specified; but such insurance shall not par-
ticipate in the profits of the corporation. This section shall not
apply to any case of a policy issued before January first, nine-
teen hundred and seven, where the provisions of the section are
specifically waived in the application and notice of such waiver
is written or printed in red ink on the margin of the face of
the policy when issued. If any policy of life insurance issued
on or after January first, nineteen hundred and seven, by any
domestic life insurance corporation or issued or delivered within
the state on or after the said date by any foreign life insurance
corporation doing business within the state, after being in force
three full years shall by its terms lapse or become forfeited for
the nonpayment of any premium or any note therefor or any
loan on such policy or of any interest on such note or loan, the
reserve on such policy computed according to the standard
adopted by said company in accordance with section eighty-four
of this chapter, together with the value of any dividend addi-
tions or accumulations upon said policy, after deducting any in-
debtedness to the company, shall upon demand vidth surrender
of the policy be, taken as a single premium at the published rates
of the corporation at the time the policy was issued and shall
be applied as agreed upon in the policy, provided that if no other
option expressed in the policy be availed of by the holder thereof,
the same shall be applied to continue the insurance of the
policy in force at its full amount so long as such single
380 Legislative Insurance Investigation.
premium will purchase temporary insurance for that amount at
the age of the insured at the time of lapse or forfeiture, pro-
vided that the net value of the insurance given for siich single
premium shall in no case be less than four-fifths of the entire
reserve computed as provided in this paragraph, and provided
further that any attempted waiver of the provisions of this par-
agraph in any application, policy or otherwise shall be void.
Tf the reserve upon any endowment policy applied according to
the provisions of this section as a single premium of temporary
insurance be more than sufficient to continue the insurance to
the end of the endowment term named in the policy, and if the
insured survive that term, the excess shall be paid in cash at
the end of such term, on the conditions on which the original
policy was isued.
§ 27. Section eighty-nine of the insurance law is hereby
amended to read as follows:
§ 89. Discriminations prohibited. — No life insurance corpora-
'tibn doing business in this state shall make any discrimination in
favor of individuals of the same cla^s or of the same expectation
of life either in the amount of premium charged or in any return
of premium, dividends or other advantages. ITo premium upon
any policy of life insurance isued on or after January first, nine-
teen Hundred and seven, shall be charged for term insurance for
one year, higher in amount thaji the premium for term in-
surance for one year at the same age under any other form of
policy issued by such corporation. ISlo agent of any such cor-
poration shall make any contract for insuran-ce or agreement as
to such cooitract other than that A^hich is plainly expressed in
the policy issued. ISTo such corporation or agent thereof shall
pay or allow, or offer, to pay or allow as an inducement to any
persooi to insure any rebate of premium, ox any special favor or
advantage whatever, in the dividends to accrue thereon, or any
inducement whatever not specified in the policy. If it shall ap-
Bills Introduced hy the Committee. 381
pear to tlie satisfaction of the superintendent of insurance after
a hearing by him upon due notice, that any corporation is issuing
policies or making contracts that are directly or indirectly in
violation of this section, he shall, upon the written approval of
the attorney-general, require such corporation and its officers and
agents to refrain, within twenty days, from making any such
policy or contract. [ISTo such person shall make any agree-
ment VTith any of its officers, trustees or salaried employees, where-
by it agrees that for any services rendered or to be rendered
thereafter by such official, trustee or employee, he shall receive
any salary, compensation or emolument that will extend beyond
a period of twelve months from the date of such agreement or
contract. If any such corporation, or officer or agent thereof,
shall fail to comply with the provisions of this section, the super-
intendent shall, within twenty days after such failure, publish
a notice of the fact in the state paper once a week for four weeks,
and institute such proceedings in law as may be necessary to re-
strain such violation of this section.]
§ 28. Section ninety-two of the insurance law as amended by
chapter two hundred and eighteen of the laws of eighteen hundred
and ninety-seven is hereby amended to read as follows:
§ 92. No forfeitiire of policy without notice. — Xo life insur-
ance corporation doing busiiiess in this state -^-..11 within one
year after the default in payment of any premium, instalment
or interest declare forfeited, or lapsed, any policy hereafter issued
or renewed, and not issued upon the payment of monthly or
weekly premiums, or unless the same is a term insurance con-
tract for one year or less, nor shall any such policy be forfeited,
or lapsed, by reason of nonpayment when due of any premium,
interest or instalment or any portion thereof required by the
terms of the policy to be paid, within one year from" the failure
to pay such premium, interest or instalment, unless- a- Avritten
or printed notice stating the amount of such premium, interest, '
382 LegislaMve Insurance Investigation.
instalment, or portion ttereof, due on such policy, the place
v,hero it shall be paid, and the jerson to whom the same is pay-
able, shall have been duly addressed and mailed to the person
whose life is insured, or the assignee of the policy, if notice of
the assignment has been given to the corporation, at his or her
last known postoffice address in this state, postage paid by the
corporation, or by any officer thereof, or person appointed by
it; to collect such premium, at least fifteen and not more than
forty-five days prior to the day when the same is payable.
The notice shall also state that unless such premium, interest, instal-
ment or portion thereof, then due, shall be paid to the corpo-
ration, or to the duly appointed agent or person authorized to
collect such premium by or before the day it falls due, the policy
and all payments thereon will become forfeited and void except
at to the right to a surrender value or paid-up policy as in this
chapter provided. If the payment demanded by such notice shall
be made within its time limited therefor, it shall be taken to be
in full compliance with the requirements of the policy in respect
to the time of such payment; and no such policy shall in any case
be forfeited or declared forfeited, or lapsed, until the expiration
of thirty days after the mailing of such notice. The affidavit
of any officer, clerk or agent of the corporation, or of any one
authorized to mail such notice that the notice required by this
seetioUj has been duly addressed and mailed by the corporation
issuing such policy shall be presumptive evidence that such notice
has been duly given. [!N"o action shall be maintained to recover
imder a forfeited policy, unless the same in instituted within one
year from the day upon which default was made in paying the
premium, instalment, interest or portion thereof for which it is
claimed that forfeiture ensued.]
§ 29. The insurance law is hereby amended by the addition of
a new section thereto, to be known as section ninety-four, to
read as follows :
Bills Introduced hy the Committee. 3S.j
§ 94. Election of directors. — At every election of directors in
any domestic nuitTial life insurance corporation, whether ineor-
porated by special act or under general law and anything to
the contrary in its charter, certificate of incorporation ci- by-
laws notwithstanding, every policyholder whose insurance shall
be in force and shall have been in force for at least one year
prior thereto. shall be entitled to vote without other qualincation.
Every such policyholder, and none other, shall be entitled to
vote in person or by proxy or by mail, as herein provided. At
least five months prior to every s\ich election every such corpora-
tion shall file with the superintendent of insurance two full and
correct lists of the names and last known postoffice addresses
of all persons then insured for at least (Jhe thousand dollars each,
whose insurance was in force twelve months prior to the date
fixed for such election. The names of said policyholders shall
be arranged on said lists alphabetically and shall be classified
by states, territories and possessions of the United kStates and
by foreign countries. Such corporation shall also maintain two
similar lists at its home ofilce; and at its general agemcies in
every state, territory and possession of the United States and in
every foreign country it shall maintain two similar lists of such
policyholders residing in such jurisdiction. All said lists shall
be subject to inspection and copy at any time during business
hours by any policyholder in said cojrporation or by his author-
ized representative. Where policyholders of any domestic stock
life insurance corporation have become or §hall become entitled
to vote for directors, two similar lists of policyholdera, qualified
to vote, insured for at least one thousand dollars, whose insur-
ance shall then be in force and shall have been in force at least
one year prior to the date of any election of directors, shall be
filed and maintained in the office of the superintendent of insur-
anee at the home office and general agencies of such corporation
384 Legislative lns.urance Investigation.
respectively, similaTly arranged and similarly subject to inspec-
tion and copy as in tlie case of mutual corporations as above
provided. At least four months prior to the date of any election
of directors in any such corporation the board of directors shall.
nominate candidates for every vacancy to be filled at such elec-
tion and shall also appoint three persons to receive proxies to
be voted for said nominees, and shall also file with the superin-
tendent of insurance at its home ofiice and at the office of every
general agency above described a certificate of the names of the
candidates so nominated and of the persons so designated to
receive said proxies which shall be described as the "administra-
tion ticket." Any one hundred or more qualified voters of such
corporation may make other nominations for one or more vacan-
cies to be filled at any such election 'by filing with the superin-
tendent of iiiSurance at least three months before the election
and at the home office of the corporation a certificate signed and
, knowledged, giving the names and addresses- of the candidates
nominated, the names and addresses of three persons designated
to receive proxies to be voted for said nominees, and an appropri-
ate name or title to distinguish the ticket from the administra-
tion ticket and other nominations. At least two months prior
to any such election the corporation shall cause to be mailed to
each policyholder whose name shall be upon said list and whose
policy shall still be in force, at his last known postoffice address,
a statement of the candidates nominated as hereinbefore provided
and of the persons so appointed to receive proxies. Such state-
ment shall be conveniently arranged under the names or titles'
by which the nominations have been designated and shall have
printed upon it the name of the company, the postoffice address
of -its home office, the number of directors to be elected and the
names of those whose terms expire, the date of the election and
Bills Introduced hy the Oommiitee.
instrTictioiis as herein provided for the use thereof as ballots or
for the use of a proxy as herein provided and a designated space
for the signatures of the member and of a subscribing witness-
There shall be enclosed in such sealed envelope with such state-
ment a suitable return gummed envelope having thereon the
name and postoiEce address of the home office of the corporation,
the words " ballot for directors " and a designated space for the
member so voting to write his name and his postoffice address in
his own handwriting thereon. There shall also be enclosed in
such sealed envelope a suitable blank proxy upon which shall
be printed asv statement of the right of the member to vote either
by mail or by proxy as herein provided or in person. Ifo other
papers or written or printed matter shall be enclosed in such
sealed envelope and the style and composition of such sealed
envelope and enclosures shall be approved by the superintendent
of insurance before being so mailed. A member desiring to vote
by mail must indicate the name of the nominee or nominees
for whom he desires to vote or strike out the name or names of
those -for whom he does not desire to vote upon the statement so
provided and sign the same in his own handwriting in the pres-
ence of a subscribing witness, and the statement when so marked
and signed shall become a ballot. Such member must enclose
the statement so marked in such return or a similar envelope
^■— ^^i^-^— ^■^-^^^■■-^^^^^^^ ■<*^—^^— ' II. ■.-■■■■IB,.-.. ^11. , ■,.,■,■■■
upon which must be written his signature and postoffice address
in his own handwriting. Such envelope containing the ballot
securely sealed and postpaid may be mailed by 'the menrber to
or may be delivered at the home office of the company. 'No
member may vote for more than the number of directors so to
be elected and all ballots upon which the intent of the member
does not fairly appear shall be void. Any member may vote
by proxy executed to any person, whether designated in the
386 Legislative Insurance Investigation.
■Statements filed as aforesaid or otherwise, but a proxy shall not
be valid unless executed within two months prior to the election
and shall be used only at such election or any adjournment
thereof and may be revoked by the member giving the same at
any time prior to the opening of the polls upon the day of such
election. The votes at such election shall be limited to the can-
didates nominated as aforesaid except that in case of the death or
incapacity of any candidate so nominated the board of directors of
such corporation, if the candidate was upon the administration
ticket, and the nominators if the candidate was upon an indepen-
dent ticket, may nominate another candidate in his place by filing
a certificate of said nomination with the superintendent of insur-
ance prior to the day set for the election, and if any such certifi-
cate of new nomination shall be filed more than ten eks piior
to the election the name of the candidate so selected shall be set
forth in the statement of candidates sent out by the company; and
if in either case no such new nomination shall be made then the
persons designated to receive proxies for such ticket may at the
election cast the votes under proxies held by them for any candi-
date whom they may select to take the place of the one" who has
died or become incapacitated. The election shall be by ballot and
shall be hejd at the home ofiice of the company, and the polls shall
be opened at ten o'clock in the forenoon and remain open until
four o'clock in the afternoon of the day of the election at which
time they shall be closed and the ballots cast shall be immediately
canvassed. The board of directors shall appoint an adequate num~
ber of inspectors of election who shall be qualified voters and shall
provide sufiicient lists of members entitled to vote for the purpose
of verifying all proxies voted at the election or ballots received by
mail, and the inspectors of election shall receive and canvass the
ballots cast and shall certify the result to the board of directors.
All envelopes received by the company marked "ballot for dircc-
Bills Introd-wced by the Committee. 387
tors prior to the closing of the polls shall first be verified by the
signatures thereon aiid shall be preserved intact without opening
and delivered to the inspectors of election during the hours when
the polls shall be open. The inspectors shall thereupon publicly
open the same and deposit such ballots with the others cast at such
election. One qualified voter designated by a majority of each
three persons who shall have been appointed to receive proxies to
be voted for tickets nominated as aforesaid may be present during
the casting and the canvass of the votes.
§ 30. The insurance law is hereby amended by adding thereto
a new section, to be known as section ninety-five, to read as
follows :
§ 95. Conversion of a stock" life insurance corporation into a
mutual corporation. — Any domestic stock life insurance cor-
poration, whether incorporated under a general law or by
special act, may be reincorporated under the provisions of this
article as a mutual life insurance corporation, and may thereupon
by an amendment of its charter provide for the retirement of its
capital stock by the payment of an amount fairly determined to be
the present value thereof with reference to its par value, the divi-
dends allowed by law thereon and the eventual right, if any,
of the stockholders in any accumulations of the corporation; pro-
vided, however, that the plan of such retirepaent: (1) Shall have
been adopted by a vote of a majority of the directors of such
corporation; (2) shall have been approved by a vote of stock-
holders representing a majority of the capital stock at a meet-
ing of stockholders cnlied for the purpose; (3) shall have been
submitted to the superintendent of insurance and shall have
been approved by him in writing; and (4) shall have been ap-
.proved by a majority vote at a meeling called for the purpose
of policyholders each insured in at least one thousand dollars
and whose insurance shall then be in force and shall have been
Legislative Insurance Investigation.
in force for at least one year prior to such meeting. The meet-
ing- shall be called by the board of directors and shall be held
under the supervision of the superintendeoat of insurance, and
policyholders shall be entitled to cast their votes in person, by
proxy or by mail. The vo-tes shall be cast and canvassed in the
same martner as provided in the case of election of directors of
mutual life insurance corporations so far as the provisions
therefor shall be applicable. The notice of said meeting shall
contain a concise statement of the proposed plan and contain
proper instructions for the indication by the policyholder on
a blank provided for the purpose of his approval or disapproval
thereof. A plan of retirement of capital stock shall not be
approved by the superintendent or be valid unless the corporation
aiter said retirement shall remain possessed of asssets sufficient
to maintain its deposit theretofore made with the superintendent
and not less than the entire liabilities of the corporation, includ-
ing the net values of its outstanding contracts computed accard-
ing to the standard adopted by the companv under section eighty-
four of this chapter, and also all funds, contingent reserves and
surplus save so much of the latter as shall have been lawfully
devoted under this section to said retirement. Upon the approval
of the said plan of retirement as aforesaid said stock shall be
retired and canceled . and all right on the part of the holders
thereof to vote thereon or to receive dividends thereunder shall
cease and the said stockholders shall be entitled to receive from
the corporation in lieu of their shares of said stock the amounts
respectively payable to them in accordance with said plan of
retirement, which -^hall be paid as therein provided.
§ 31. The insurance law is hereby amended by adding thereto
a new section, to be known as section ninety-six, to read as follows :
§ 9'6. Limitation of new business. — 'No life insurance corpora-
tion doing business in this state, except a corporation more
Bills Introduced hy the Committee. 389
than two-thirds of the outstandina; insurance of which on Dc
:cem-
ber thirty-first, nineteen hundred and five," consisted of indus-
trial insurance, shall issue in any year new policies for a larger
amount in the aggregate than as fallows, to wit: If the total
amount of the insurance by. said corporation in force on the
thirty-first day of December of the preceding year, including only
policies upon which the first premiums have actually been
received, is in excess of fifty million dollars, the amount of new
insurance which may be issued shall be determined by the fol-
lowing percentages of said insurance in force, to wit: If said
insurance in force is more than fifty million dollars and lt)ss
than one hundred million dollars, not more than thirty per
centum thereof; if more than one hundred million dollars and
less than three hundred million dollars, not more than twenty-
five per centum thereof ; if more than three hundred million dol-
lars but less than six hundred million dollars, not more than
twenty per centum thereof; if more than ijx hundred million
dollars but less than one thousand million dollars, not more than
fifteen per centum thereof; and if said amount of insurance in
force shall be in excess of one thousand million dollars, not more
than one hundred and fifty million dollars of new insurance shall
be issued provided, however, that in the case of any corporation
excepted as aforesaid the policies issued in any year, excluding
industrial policies, shall not exceed in amount fifty per centum
of the total amount of the outstanding insurance on the thirty-
first day of December in the year next preceding, including only
-policies other than industrial policies upon which first premiums
have been actually received, nor in any event more than the ajnount
of one hundred and fifty million dollars.
§ 32. The insurance law is hereby amended by adding thereto
a new section to b© known ^s section ninety-seven, to read 4?
follows ;
390 Legislaiive Insurance Investigaiion.
§ 97. Loadings upon net premiums. — 'No life insurance jor-
poration doing business in this state shall on or after the first day
pf January, nineteen hundred and seven, add a greater loading
to the net premium for each one thousand dollars of any kind
of insurance than the loading for the same amount of insui'ance
at the same age in the ccse of an ordinary whole life policy, except
that in the case of a Innited payment life or limited pavment
endowment policy an additional loading may be provided for ax-
penses during the continuance of the policy after the expiration
of the limited payment period, which additional loading, save as
the same may be used in the years for which it is so provided,
shall be added to the reserve liability of the company on said
policy.
§ 33. The insurance law is hereby amended by adding th'^'eto
a new section, to be /known as section ninety-eight, lo read as
follows :
§ 98^ Limitation of expenses. — ISTo life insurance corporation
doing business in this state shall in any calendar year ifter the
year nineteen hundred and six expend or become liable far or per-
mit any person, firm or corporation to expend on its behalf or un-
der any agreement with it for commissions on first year premimns
or for salaries, agency expenses or other expenses of a ay sort in
connection with or attributable to the obtaining of new insurance
or the insurance of new policies in said year, an amount in excess
of the total margins of all premiums for the first year of insurance
received in said calendar yea'r as ascertained by the select and
ultimate method of valuation as provided in section eighty-for.r of
this chapter ; and no such corporation shall make or incur any
expense or permit any expense to be made or incurred upon its
behalf or under any agreement with it, except investment ex-
p enses, in the conduct of its business, in excess of the aggregate
amount of the loadings upon premiums received in said year, taken
jBitls tniroduced hy the Oommitiee. 391
together with the said margins for the first year of insurance. IS'o
snch corporation, nor any other person, firm or corporation on its
behalf or under any agreement with it shall pay or allow to any
agent, broker or other person, firm or corporation for procuring
an application for life insurance, for collecting any premium there-
on for any other service performed in connection therewith, any
compensation other than that which has been determined in ad-
vance, and if such compensation be a commission it shall be a fixed
percentage of the premiums for each one thousand dollars of insur-
ance and not greater in amoant for any one thousand dollars of
insurance at the same age on any plan than shall be allowed in the
case of an ordinary whole life policy; and all bonuses, prizes,
rewards, salaries or commissions of . any sort based upon the
amount of any policy or policies or upon the aggregate of applica-
tions for insurance procured by any person, firm or corporation
or the aggregate of policies issued thereon, other than as aforesaid,
are prohibited. No such corporation shall pay any commission
save upon premiums for the first five years of insurance, and
no commission for any year after the first year of insurance shall
exceed an amount equal to seven and one-half per centum of the
premium upon an ordinary whole life policy at the age of entry
of the insured. No such corporation shall make any loan or ad-
vance to any person, firm or corporation soliciting or undertaking
to solicit applications for insurance. This section shall not apply
to expenses made or incurred in the business of industrial insur-
ance nor, except as to the limitation of expenses for the first year
of insurance and as to compensation of and loans and advances
to agents or solicitors, to stock corporations issuing and represent-
ing themselves as issuing nonparticipating policies exclusively.
§ 34. The insurance law is hereby amended by adding thereto
a new section, to be known as section ninety-nine, to read as
follows:
392 Legislative Insurance Investigation.
§ 99. Salaries of officers and agents; when fixed by board of
directors. — No life insurance corporation doing business in this
state shall pay any salary, compensation or emolument to any
oflicer, trustee or director thereof, nor any salary, compensation
or emolument amounting in any year to more than five thousand,
dollars to any person, firm or corporation unless such payment
be first authorized by a vote of the board of directors of such
life insurance corporation, l^o such life insurance corporation
shall make any agreement with any of its ofiicers, trustees or
salaried employees whereby it agrees that for any services ren-
dered or to be rendered he shall receive any salary, compensation
or emolument that will extend beyond a period of twelve juonths
from the date of such agreement. No such corporation shall grant
• any pension to any officer, director or trustee thereof or to any
member of his family after his death.
§ 35. The insurance law is hereby amended by adding thereto
a new section, to. be known as section one hundred, to read as
follows :
§ 100. Vouchers. — No life insurance corporation doiiig busi-
ness within this state shall make any disbursement of one hun-
dred dollars or more unless the same be evidenced by a voucher
signed by or on behalf of the person, firm or corporation receiv-
ing the money and correctly describing the consideration for the
payment, and if the same be for services and disbursements
setting forth the services rendered and an itemized statement of
the disbursements made, and if it be in connection with any
matter pending before any legislative or public body or before
any department or officer of any government, correctly describiiTg
in addition the nature of the matter and of the interest of such
corporation therein, or if such a voucher cannot be obtained by
an affidavit stating the reasons therefor and setting forth the
particulars above mentioned.
Bills Introduced hy the Committee. 393
§ 36. Tlie insurance law is hereby amended by adding thereto
a new section, to be known as section one hundred and one, to
read as follows:
§ 101. Investments. — ^I^o domestic life insurance corporation,
whether incorporated by special act or under a general law, and
no foreign life insurance corporation doing business in this
state shall after the first day of June, nineteen hundred and six,
invest any of its funds in, or loan upon the security of, any
shares of stock of any corporation, except public stocks of
municipal corporations, or bonds which are secured by the pledge
or mortgage of shares of stock to the extent of more than one-
third the value of the entire security therefor. Every such cor-
poration which on the first day of June, nineteen hundred and
six, shall own any shares of stock to the extent of "mor-e than one-
third the value of the entire security therefor. Every such cor-
poration which on the first day of June, nineteen hundred and
six, shall own any shares of stock other than public stocks of
municipal corporations, or any bonds secured by shares of stock
to a greater extent than that above mentioned, shall dispose of
the same within five years from the thirty-first day of December,
nineteen hundred and six, and in each year prior to the expira-
tion of said five years shall make such reduction of its holdings
of said securities as may be approved in writing by the superin-
tendent of insurance. 'No investment or loan shall be made by
any such life insurance corporation unless the same shall first
have been authorized by the board of directors or by a committee
thereof charged with the duty of supervising such investment or
loan. No such corporation shall subscribe to or participate in
any underwriting of the purchase or sale of securities or prop-
erty or enter into any transactJon for such purchase or sale on
account of said corporation jointly with any other person, firni
or corporation; nor shall any such corporation enter into any
394 Legislative Insu,rance Intiestigaiion.
agreement to withhold from sale any of Its property, but tlie
disposition of Its property shall be at all times within the control
of its board of directors. Any such corporation, in addition
to other investments allowed by law, may invest any of its funds
in any duly atithorized bonds or evidences of debt of any city,
cotmty, town, village, school district,- municipality or other civil
division of any state and may Ipan upon the security of improved
unencumbered real property in any state worth fifty per ceijtum
more than the amount loianed thereon.
§ 3Y. The insurance law is hereby amended by adding a new
section to be known as section one hundred and two, to read as
follows:
§ 102. Standard forms of policies. — On and after the first day
of January, nineteen hundred £^nd seven, all policies of insur-
ance, other than industrial policies, issued or delivered within
this state by any life, insurance corporation doing business within
the state, shall be in the forms hereby pTeseribed and not other-
wise save as hereinafter provided. There shall be four standard
forms of policies, to wit: (1) An ordinary life policy, (2) a lim-
ited poyment life policy, (3) an endowment policy, and (4) a term
policy. The said standard forms shall be as follows:
(Insert forms.)
Whenever any such corporation shall desire to issue or deliver
within this state any kind of policy other than ordinary life,
limited payment life, endowment and term policies, it shall sub-
' mit a propoged form of policy to the superintendent of insurance
who shall thereupon fix a day for a hearing upon said applica-
tion and cause notice thereof to be given to every corporation
transacting within the state business of the same general character
as that transacted by such applicant; and the superintendent may
after such hearing approve the said form with or without
modifications thereof as may seem to him expedient and establish
Bills Introduced iy the Committee. 395
tlie same, as a standard form of policy which any company doing
luisincss within the state shall be entitled to nse in addition to
tTie forms hereby prescribed. Forms of policies sc approved by
tTic superintendent may be changed from time to time upon the
npplication of any company upon similar request and after a
hearing npcrn similar notice. It shall be lawful for any eorpora-
ti?r ? -suing- exclusively nonparticipating policies to incorporate in
any of said standard forms a provision that the said policy .shall
be nonparticipating and to omit therefrom clauses ^providing for
participation in the surplus of the company.
§ 38. The insurance law is hereby amended by adding ' thereto
n new section, to be known as section one hundred and three, to
read as follows:
§ 103. Companies issuing participating policies not to do a non-
participating business. — On and after the first day of January,
nineteen hundred and seven, no mutual life insurance corpora-
tion doing business within the state and no stock life insurance
corjioration hereafter issuing or professing to issue any partici-
pating policies, shall issue any policies which do not by their terms
give to the holders thereof full right to participate in the accumu-
lations of said corporation as provided in this chapter.
§ 39. The insurance law is hereby amended by adding thereto
a new section to be known as section one hundred and four, to
read as follows:
§ 104. Annual reports of life insurance corporations. — In addi-
tion to any other matter which may be required by law or pur-
suant to law by the superintendent of insurance to be stated
therein every annual report of every life insurance corporation
doing business in the state of ISTew York, made pursuant to sec-
tion, forty-four of this chapter, shall contain an accurate, concise
and com.plete statement of the following matters, to wit: (1) All
the real property held by the corporation, the dates of acquisition,
57
396 Legislative Insurance Investigation.
the names of the vendors, the actual cost, the value at which
it is carried one the company's books, the market value, the
amounts expended during the year for repairs and improvements,
the gross and net income from each parcel, and if any portion
thereof be occupied by the company the rental value thereof,
a statement of any certificate issued by the superintendent extend-
in.? the time for the disposition thereof, and all purchases and sales
made since the last annual statement, with particulars as to dates,
names of vendors and vendees, and the consideration. (2) The
amount of existing loans upon the seciirity of real property, stating
the amount loaned upon property in each state and foreign coimtry.
f 3) The moneys loaned by the corporation to any person other than
loans upon the security of real property above mentioned, the
actual borrowers thereof, the maturity and rate of interest of such
loans, the securities held therefor, and all substitutions of securi-
ties in connection therewith, and the same particulars with refer-
ence to any loans made or discharged since the last annual state-
ment. (4) All other property owned by the company or in which
it has any interest (including all securities, whether or not recog-
nized by the law as proper investments), the dates of acquisitioa,
from whom acquired, the actual cost, the value at which the
property is carried upon the books, the market valuej_the interest
or dividends received thereon, during the year; also all pur-
chases and sales of property other than real estate made, since
the last annual statement, with particulars as to dates, names
of purchasers and sellers, and the consideration; and also the.,
'income received and outlays made in connection with all such
property. (5) All commissions paid to any persons in connec-
tion with loans or purchases or sales of any property, and a
statement of all payments for legal expenses, giving particulars
as to dates, amounts and names and addresses of payees. (6 )
Bills Introduced hy the Committee. 897
All moneys expended in connection with any matter pending
before any legislative body or any officer or department of gov-
ernment, givJDg particulars as to dates, amounts, names and
addresses of payees, the measure or proceeding in connection
■with which the payment was made, and the interest of the cor-
poration therein. (7) The names of the officers and directors of
the company, the proceedings of the last annual election, giving
the names of candidates and the number of votes cast for each
and whether in person, by proxy or by mail. (8) The salary,
compensation and emoluments received by officers or directors
and where the same amounts to more than five thousand dollars
that received by any person, firm or corporation, with particulars
as to dates, amounts, payees and the authority by which the
payment was made. (9) The largest^ balances carried in each
bank or trust company during each month of the year. (10)
All death claims resisted or compromised during the year, with
particulars as to sums insured, sums paid and reasons assigned
for resisting or compromising the same in each case. (11) A
complete statement of the profits and losses upon the business
transacted during the year and the sources of such gains and
losses, and a statement showing separately the margins upon
premiums for the first year of insurance ascertained according
to the select and ultimate method of valuation as provided in
section eighty-four of this chapter and the actual expenses .charge-
able to the procurement of new business incurred since the last
nual statement, and also showing the manner in which any
an
general outlays of the company have been apportioned for the
purpose of arriving at the amount of such expenses. (12) A
Itatement separately showing the amount of the gains of the
company for the year attributable to policies written after De-
^mber thirty-first, nineteen hundred and six, and the precise
398 Legislative Insurance Investigation.
■ — 1
method by which the calcTilation has been made. (13) The rates
of annual dividends declared during, the year for all plans of
insurance and all durations and for ages at entry, twenty-five,
thirty-five, forty-five and fifty-five, and the precise method by
which such dividends have been calculated. (14) A statement
showing the rates of dividends declared upon deferred dividend
policies completing their dividend periods for all plans of insur-
ance and the precise methods by which said dividends have been
calculated. (15) A statement showing any and all amounts set
apart or provisionally ascertained or calculated or held awaiting
apportionment upon policies with deferred dividend periods longer
than one year for all plans of insurance and all durations and
for ages of entry as aforesaid, together with the precise state-
ments of the methods of calculation by which the same have
been provisionally or otherwise determined. (16) A statement of
any and all reserve or surplus funds held by the company and
for what purpose they are claimed respectively to be held,
§ 40. Section two hundred of the insurance law is hereby
amended to read as follows:
§ 200. Incorporation. — ISTine or more persojas may become a
corporation for the purpose of transacting the business of life or
casualty insurance, or both, upon the cooperative or assessment
plan, fraternal or nonfratemal, by filing in the office of the
superintendent of insurance a declaration signed by each of
them and duly acknowledged, setting forth their intention to
form a corporation for the transaction of, life or casualty insur-
ance, or both, upon the cooperative or assessment plan, the name
of the proposed corporation, the place where its principal office
shall be located within the state, the mode in which its corporate
powers are to be exercised and of electing directors or other per-
sons, by whatever name or title designated, who are to have
and exercise the general control and management of its affairs and
Bills Intro'duced iy the Commitfes, 399
of its funds, which election shall be in such manner as shall be
prescribed by its by-laws, or in case of fraternal societies, by rep-
resentatives chosen by subordinate lodges, councils or bodies, who
shall be members of such societies and a majority of them citizens
of this state. Such declaration shall have indorsed thereon or
annexed thereto and as u part thereof, the sworn statement of
three of such persons that at least two hundred persons eligible
under the proposed laws of the corporation to membership there-
in have in good faith made application in writing for membership.
If all the requirements of this chapter have been complied with,
the superintendent shall file such declaration and record it with
the certificate of the attorney-general, in a book to be kept for that
purpose, and deliver to the corporation a certified copy of the
papers so filed and recorded, with his license in writing to the cor-
poration to engage in the business proposed in the declaration,
which certified copy and license shall be filed in the office of the
clerk of the county where the office of the corporation is to be
located. Such corporation shall not commence the business of
insurance until at least two hundred persons have subscribed in
writing to be insured therein in the aggregate amount of at least
four hundred thousand dollars, and have each paid in two per
centum on the amount of the insurance severally subscribed for iu
cash, and the same is deposited in bank to the credit of the mor-
tuary fund to be held in trust for the benefit of the beneficiaries,
and the superintendent of insurance shall have further certified
that it has complied with the provisions of this chapter, and is
authorized to transact business. Provided, however, that no such
corporation shall be formed nor any such license or certificate be
granted or issued by the superintendent of insurance after June
first, nineteen hundred and six.
§ 41. Section two hundred and four of the insurance law is
hereby amended to read as follows:
§ 204. Foreign corporations. — No such corporation, associa-
tion or society organized under the laws of any other state or terri-
400 ~ Legislative Insurance Investigation.
tory of the United States or District of Columbia, or foreign
countries, except such secret fraternal societies having subordinate
lodges or councils as are now authorized to transact business within
this state with the consent of the superintendent, shall transact
business herein until it has reeeived from the superintendent of
insurance a certificate of authority to do business in this
state, a duplicate of which shall b© filed in his office.
The superintendent shall annually issue to such foreign
corporation, association or society renewal certificates of authority
to continue its business, if its annual report is satisfactory to him,
which certificate shall be filed in the office of the clerk
of the county where its principal office is located within this state,
within sixty days after filing such annual report, and no such
foreign corporation, associations or society, except secret
fraternal societies above specified, shall be authorized to continue
such business after the expiration of such sixty days unless
such certificate shall have been so received and filed. The super-
intendent shall refuse a certificate of authority or a renewal of
the same to any such foreign corporation, association or society,
except such secret fraternal societies, when, in his judgment,
such refusal will best promote the public interests, or when by
the laws of the state or territory under which the same is organ-
ized, the cosporations, associations or societies of this state doing
a life or casualty business upon the co-operative or assessment
plan are not permitted to transact such business in such other
state or territory. Provided, however, that n.o certificate of
authority to do business in this state except renewal certifi-
cates of authority to such corporations, associations or societies
as are now authorized to transact business within the state, shall
be issued by the superintendent of insurance after June first,
nineteen hundred and six. When any other state or territory
shall impose any obligation upon such corporation, association
or society of this state, or their agents transacting business in
Bills Introduced by the Committee. 401
sucli other state or territory, the like obligations are hereby im-
posed upon similar corporations, associations or societies of such
other state or territory and their agents or representatives trans-
acting business in this state, and such corporation, association or
society of such other state or territory, and their agents and repre-
sentatives shall pay all licenses, fees or penalties to, and make
deposits with, the state treasurer imposed by the laws of such
other state or territory upon any bueh corporation, association
or society of- this state doing business therein; and in case of
failure to pay the same, the superintendent shall refuse the cer-
tificate of authority herein provided for, or cancel such certificate
in case one shall have previotisly been issued.
§ 42. Article ten of the insurance law is hereby repealed.
§ 43. This act. shall take effect immediately.
State of Ne^w York.
No. i02g. Int. 864.
In AsskmbIvY,
February 27, 1906.
Introduced by. JOINT COMMITTEE OE SENATE AND
ASSEMBLY • — (by unanimous consent) — read once and re-
ferred to the committee on Insueance.
AN ACX
To amend the insurance law relative to life insurance corpora-
tions upon the cooperative or assessment plan.
The People of the State of New Yorlc, represented in Senate and
Assembly, do enact as follows:
Section 1. Section two hundred and five of the insurance law,
being chapter six hundred and ninety of the laws of eighteen hun-
dred and ninety-two, entitled "An act relative to insurance cor-
porations," constituting chapter thirty-eight of the general laws, is
hereby amended to read as follows:
§ 205. Reserve or emergency fund. — Every such corporation,
association or society, except casualty associations or societies,
shall accumulate and maintain at all times a reserve or emergency
fund of an amount not less than the ^jroceeds of one death or dis-
ability assessinent, or periodical call on all policy or certificate
holders thereof, and at least equal to the amount of its maximum
certificate or policy, and also at least equal to the cost of ins\ir-
ance for all policies in accordance with the American experience.
table of mortality until the next call or assessment is due and
Explanation— Matter underscored — is now: matter in brackets [ ] is
old law to be omitted.
403
Bills Introduced hy the Committee. 403
payable over and above all liabilities, including existipg death
*^^^i™s. Such fund, if not already accumulated, shall be accumu-
lated by every existing corporation, association or society formed
for like purposes, within six months from the time this article
takes effect ; [and by every corporation, association or society here-
after formed under this article, within six months from the date of
its, incorporation,] and shall be held for the benefit or protection of
its members, their legal representatives or beneficiaries. In case
such fund or any portion thereof shall have been issued by the cor-
poration for the purpose or purposes for which the same was created
or accumulated, and the amount thereof reduced to less than the
proceeds of one death or disability assessment or periodical call, the
amount of such reduction below the proceeds of one death or dis-
ability assessment or periodical call shall be made up and restored
to said fund within three months thereafter. If such fund is in
excess of double the proceeds of the last death or disability as-
sessment or periodical call, upon the entire membership, the eKcess,
or any portion thereof, may be used in reduction of assessments
or premium calls upon policy or certificate holders; and if in ex-
cess of double such proceeds, and not less than the sum bf one hun-
dred thousand dollars, the pro rata excess on any policy or certifi-
cate terminated by death or surrender may be refunded to the
holder or beneficiary provided that nothing contained in this
article shall be construed to permit any contract promising any
fixed cash payment to any living certificate or policy holder, and
provided further that any reserve provided for by the articles
of association, constitution or by-laws or by any contract with
members shall not be used in violation thereof and shall be treated
as a liability. Every such casualty association or society shall
accumulate .within six months from the -time this article takes
effect and maintain a reserve or emergency fund of at least
eight thousand dollars, if the maximum policy issued by such
association or society be for five thousand dollars or more or a
4:04 . Legislative Insurance Investigation.
reserve or emergency fund of two dollars for each five thouHand
dollars of insurance in force, if the maximum policy issued by
such association or society be for less than five thousand dollars,
and thereafter five per centum of the amount realized on each
periodical call shall be set apart and added thereunto, unless the
same be already accumulated, until such fund shall be equal to
two dollars on each five thousand dollars of insurance in force.
In case such reserve or emergency fund or any portion thereof
shall have been used by any such corporation -or society for the
purpose for which the same was created or maintained, "the
amount so used shall be made up and restored to said fund within
six months thereafter. Such fund may be held in cash, or in-
vested in the same class of securities required for. the investment
of funds by domestic life insurance corporations. ITo foreign
corporation, association or society shall be authorized to transact
any business authorized by this article within this state unless
it furnishes evidence satisfactory to the superintendent of insur-
ance that it has accumulated a fund equal in amount to that re-
quired by this section, and that such accumulation is permitted
by the laws of the state or country where it is incorporated and
that it is held for the benefit of policy or certificate holders
only and invested as required by such laws. If any such corpora-
tion, association pr society is authorized by the law under which
it is incorporated to issue contracts of insurance not authorized
by this article, it may be permitted to transact in this state the
kind of business authorized by this article upon complying in
all other respects with the cequirements of this chapter and
filing with the superintendent of insurance an agreement duly
executed by its proper officers that such corporation, association
or society will not enter into or issue within the state of ISTew
York any contract of insurance, policy or agreement not author-
ized by this article. Upon a breach of said agreement by any
such corporation, association or society, the superintendent of in-^ ;
Bills Introduced by the Committee. 405
sui-anee shall forthwith revoke and cancel its authority to trans-
act business in this state. The annual report of the superin-
tendent of insurance required in section two hundred and two
of this article shall be in lieu of all other reports required by law.
§ 2. Section two hundred and eight of the insurance law as
amended by chapter five hundred and sixty- liine of the laws of
nineteen hundred and five, is hereby amended to read as follows :
§ 208. Hearing thereon. — Such corporation, association or so-
ciety, in case it is alleged to be insolvent, to have exceeded its
powers, failed to comply with any other provision of law, or is
conducting its" business fraudulently, as specified in the last
paragraph of the preceding section, shall be entitled to be heard,
and to a trial by jury of the facts stated in the report, if the
same shall be traversed, and to examine papers and witnesses
under oath in the usual mode of trials of actions. If the trial
is by jury the court shall submit to the jury specific requests
to find covering the matters in issue separately, and the jury
shall return a special verdict upon each question submitted, and
if by such verdict it shall be found that the corporation, associa-
tion or society is insolvent because of matured death claims or
other obligations due and unpaid exceeding its assets as herein-
before provided or has been conducting business fraudulently,
the court may fender judgment that it and each officer thereof be
perpetually enjoined from exercising any corporate rights, privi-
leges or franchises, and that it be dissolved and that a receiver
be appointed, an account taken, and an equitable distribution of
its property among its creditors and members be made. If no
charge of insolvency is made in such report, or, if made, is not
established by the verdict of the jury, but it shall be found by
such verdict that the corporation, association or society has ex-
ceeded its corporate powers or failed to comply with any pro-
visions of this article or has conducted its business unlawfully,
the court may make and enter judgment enjoining and restrain-
406 Legislcdwe Inswrance Investigation.
ing it from the commission of such acts or such of them as the
court may determine, and in case of failure to desist therefrom
within the time to be specified in such judgment that the corpora-
tion is dissolved. Pending the trial of the facts stated in such
report, the court may, upon motion of the attorney-general and
upon notice to the corporation, association or society, grant an
injunction restraining it and its directors and other officers from
collecting any debt or demand and from paying out or in any
way transferring or delivering to any person any money, prop-
erty or effects during the pendency of the proceedings except by
direction of the court, and may appoint one or more temporary
receivers of its property, with all the powers of temporary re-
rece;vers in such cases.
§ 3. Section two hundred and ten of the-insurance law is hereby^
amended to read as follows:
§ 210. Payment of maximum amount of policy; notice of as-
sessment.— Every policy or certificate hereafter issued by any
corporation doing business under this article, and promising a
payment to be made upon a contingency of death, sickness or
accident, shall specify the sum of money, which it promises to
pay upon each contingency insured against, and the number of
'days after [satisfactory] receipt of proof of the happening of
such contingency on which such payment shall be made. Upon
the occurrence of such contingency, unless the contract, shall have
been avoided by fraud, or by breach of its conditions, the cor-
jioration shall be obligated to the beneficiary for such payment at
the time and to the maximum amount specified in the policy or
certificate. If the superintendent of insurance shall be satisfied
upon investigation that any such corporation has refused or
failed to make such payment for thirty days after it became due,
and after proper demand, he shall notify the corporation to issue
no new policies or certificates until such indebtedness is fully
paid; and no officer or agent of the corporation shall make, sign
Bills Introduced hy the Committee. 407
or issue any policy or certificate of insurance while sucli notice
is in force. Each notice of assessment, premium or periodical
call made by any such corporation, association or society, upon
its members or any of them, shall truly state the cause and pur-
pose of the same, and if the amount paid on the last death claim
paid has not been paid in full at its maximum face value, the
name of the deceased member, and the maximum face value of the
certificate or policy, and the reason why not paid in full. An
affidavit made by. the officer, bookkeeper or clerk of any such
corporation, association or society, having charge of the mailing
of such notice, that such notice was mailed, stating the date of
mailing, shall be presumptive evidence thereof.
§ 4. Section two hundred and fourteen of the insurance law
as amended by chapter three hundred and ninety-nine of the laws
of eighteen hundred and ninety-four is hereby amended to read
as follows:
§ 214. Exemption of certain societies and subordinate lodges
of odd feilows and masons from the provisions of this article. —
]!^o society or subordinate lodge or body of any secret, fraternal
or industrial society now organized in this state paying only sick
benefits, not exceeding two hundred and fifty dollars in the aggre-
gate to any one person in any one year, or a funeral benefit or
relief to those dependent on a member not exceeding three hun-
dred and fifty dollars, shall be required to make any report
thereof under this article. Subordinate lodges ol councils or
other bodies by whatsoever name known, of fraternal, secret or
industrial societies shall not be required to make an annual
report to the superintendent of insurance, when the money,
charity, relief or aid is payable by the grand or supreme body
of the same, and is derived from assessments uppn such sub-
ordinates or their members, but such report shall be made and
filed by such grand or supreme body. This article shall not
prevent the creation of a reserve fund by any corporation, asso-
ciation or society transacting the business of life or casualty
408 Legislative Insurance Investigation.
insurance, or both, upon the cooperative or -assessment plan,
where its funds or its accretions, or both are to be used for the
payment of assessments or death losses, or for benefits in case
of physical disability only. This article shall not apply to the
grand or subordinate lodges of the independent order of odd
fellovrs as they now exist, or to any grand or subordinate lodge
of free and accepted masons, nor to any association or organi-
zation of the veteran firemen of any city of the state having a
population of five hundred thousand or more. Thi= article shall
not prevent any' corporation, association or society authorized to
do business hereunder, from paying out of surplus accumula-
tions or reserve fund to its members, such ratable cash dividends
or crediting on assessments such ratable sums as they are now or
may hereafter become entitled to by the terms of their contracts,
provided that nothing contained in this article shall be construed
to permit any contract promising any fixed cash payment to, any
living certificate or policy holder, unless such corporation, asso-
ciation or society shall have deposited the sum of on£ hundred
thousand dollars with the psurance department of the state, and
the superintendent has certified to that effect^ and provided fur-
ther that for every such contract a sufiicient reserve shall be
maintained in accordance with the provisions of article two of
this chapter. The voluntary unincorporated associations known
as the E'ew York stock exchange and the consolidated stock and
petroleum, exchange of New York, and the booksellers and sta-
tioners' provident association of the United States are exempted
from the provisions of this article.
§ 5. This act shall take effect immediately.
State of Ne^w York.
No. 1030. Int. 865.
In AsskmbIvY,
February 27, 1906.
Introduced by JOIN'T COMMITTEE OF SENATE AKI)
ASSEMBLY — (by unanimous consent) — read once and re-
ferred to the committee on Insurance.
AN ACT
To amend the insurance law relating to standard forms of life
insurance policies.
The People of the State of New Yorh, represented in Senate and
Assembly, do enact as follows:
Section 1. Article two of the insurance laiy, being chapter
six hundred and ninety of the laws of eighteen hundred and
ninety-two, entitled "An act in relation to insurance corpora-
tions constituting chapter thirty-eight of the general laws," is
hereby amended by adding a new section, to be known as sec-
tion one hundred and two, to read as follows:
§ 102. Standard forms of policies. — On and after the first
day of January, nineteen hundred and seven, all policies of
insurance, other than industrial poKcies, issued or delivered
within this state, by any life insurance corporation doing business
within the state, shall be in the forms hereby prescribed and
not otherwise save as hereinafter provided. There shall be four
ExpLAKATio»— Matter underscored is new: matter In brackets [ ] is
(dd law to be omitted.
409
410 Legislative Insurance Investigation.
standard forms of policies, to wit: (1) An ordinary life policy,
(2) a limited payment life policy, (3) an endowment policy,
and (4) a term policy. The said standard forms shall be as
follows :
(1) Ordinary life policy.
!N"ew York Standard Life Insurance Policy.
Ordinary life.
Amount $ Premium $
The
Life Insurance Company,
of , >
In consideration of dollars,
receipt of which is hereby acknowledged, and of the payment of
a like sum upon each day of hereafter
until the death of the assured.
•" T
Promises to pay upon receipt at the home office of the com-
pany in of due proof of the death
of .' of , countyv
of , state of , herein called
the insured, dollars after deducting
any indebtedness to the company and any unpaid portion of
the then current year's premium, at said home office to
, with .right of
revocation.
Change of beneficiary. — Where right of revocation has been
reserved the insured may from time to time, if there be no exist-
ing assignment of the policy made as herein provided, change
the beneficiary with . or without reserving right of revocaition by
filing written notice thereof at the home office of tlie company,
cicconipanied by the policy for suitable indorsement thereon; and
if tlip last named beneficiary under a revocable designation .=ihall
Bills Introduced hy the Committee. 4H
not STirYJYe the insured the policy shall be payable to the legal
representatives of the insured.
Payment of premiums. — The company will accept payment of
premiums at other times than as stated above, as follows :
Except as herein provided the payment of a premium shall not
maintain the policy in force beyond the period for which it is
paid.
All premiums are payable in advance at said home of&ce or
to any agent of the company upon delivery of a receipt signed
by an officer of the company and countersigned by said agent.
A grace of thirty days from the day when it would otherwise
be payable shall be granted for the payment of every premium
after the first, during which time the insurance shall continue
in force.
Conditions. — (The policy may here provide for restrictions of
liability by reason of travel, occupation, change of residence and
suicide, applicable .only to one year after the issuance of the
]5olicy.)
Incontestability. — (The policy shall here provide that it shall
be incontestable, except for nonpayment of premiums, either
from its date or after one year, in the following form:)
This policy shall be incontestable, except for nonpayment of
premiums, from its date.
If the age of the insured has been understated, the amount
payable hereunder shall be such as the premium ,paid would have
purchased at the correct age.
Participation. — This policy shall each year participate -in the
412
Legislative
Insurance Investigation.
piirolus of tlie
company as
1 provided by
the laws of the state of
New York now in force.
Dividends. — Dividends
at the option
of the holder shall be
either —
(1) Payable in cash, or
(2) Accumulated to the credit of the policy with interest
at per centum per annum and payable at the maturity
of the policy, but withdi'awable on any anniversary of the
policy, or
(3) Applied toward the payment of any premium or pre-
miums, or
(4) Applied to the purchase of paid-up additions to the policy.
Unless the holder of this policy shall elect otherwise within
threee months aiter the mailing by the company of a ^vritten no-
tic© requiring such election as provided by the laws of the state
of New York, the dividends shall be applied to purcliase paid-up
additions to the policy.
Loans. — -The compjfiny at any time will advance upon the sole
security of this policy, at a rate of interest not greater than
II ^— —■■«■■■ —^^^ I ^1^— ■■■■ ■ !■ M I r.i— ^.^^ II
per centum per annum, a sum not exceeding the amount specified
in the table of loan values herein f.et forth after deducting there-
from all other indebtedness to the company. Failure to repay any
such advance or interest shall hot avoid this policy unless the total
indebtedness to the company shall exceed the aggregate of the net
value of the pp-licy and of all additions thereto and all dividends,
and aocumulatijms and notice shall have been given by the com-
pany as prescribed by law.
Assignment. — No assignment of this policy shall be binding
upon the company unless it he filed with the company at its said
home office. The company assumes no responsibility as to the
validity of any assignment.
Bills Introduced hy the Committee. 413
Oplio'ns on surrender or lapse. — After this policy shall have
been in force three full years it may be surrendered by the holder
fl^ Pi^T- time iirior to anv default or witliiri tliree montlTi nfter nntr
default and thereupon the net value of the ]X)licy and of all addi-
tions thereto and all dividends, and accumulations, after deduct-
in.g any indebtedness to the company, shall be applied at the option
of the holder —
(1) To continue the policy in force at its full amount for the
period for which such net value, dividends, and accumulations
will purchase temporary insurance, or
(2) To purchase paid-up' insurance payable at the same time
and on the same conditions, except as to payment of premiums,
as this policy.
. And if, in the event of any default in the payment of premium
or otherwise, after the policy shall have been in force three full
years, the holder shall not exercise either of said options within
three months after such default, the said net value, dividends^
and accumulations shall be applied by the company as provided
in the first of said options.
The minimum periods for which the insurance will be continued
and the minimum amounts of paid-up insurance which will be
allowed as aforesaid, evclusive of the application of dividends,
additions and accumulations, are-shown in the table of surrender
values herein stit forth, subject to adjustment in case there is any
indebtedness to the eompaily.
Table oif Loak akd Sukbendeb. Values.
^ , Paid-up Continued Insurance.
Premiums paid. Loan value. Insurance. Years. Months. Days.
1
2
414 Legislative Insurance Investigation.
Years' Paid-up Continued Insurance.
Premiums paid. Loan value. Insurance, Years, Months, Days
3
4
5
6
7
S
9
10
11
1^
IS
14:
15
10
17
18
19
20
Values for other years will be computed on the same basis and
be furnished upon request.
Modes of settlement. — The insured, or after his death the bene-
ciary, by ■written notice to the company at its home office, may
elect to have the total sum payable under this policy upon the
death of the insured paid either in cq^h or as follows :
(1) By the payment of an annuity equal to per centum
of such total sum payable at the end of each year during the life-
time of the beneficiary, and by the payment upon the death of the
■benefi.ciary of the said total sum, together with any accrued portion
of the annuity for the year then current, to the beneficiary's legal
representatives or assigns.
Bills Introduced hy the Committee. 415
(2) By the payment of eqtial annual mstalmeiits at the begin-
ning of each year for a specified number of years, the first instiil-
irent b&ing payable immediately, in accordance with the follow-
ing table for each one thousand dollars of said total sum.
(3) By the payment of equal aiunual instalments payable at
the end of each year for a fixed period of twenty years and so
many years longer as the beneficiary shall survive, in accordance
with the following table for each one thousand dollars of said total
sum.
Any instalments payable under (2) or (3) which shall not have
been paid prior to the death of the beneficiary shall be paid to the
beneficiary's legal representatives or assigns.
Unless otherwise specified by the insured or by the beneficiary
in making such election, the beneficiary may at any time surrender
the agreement for the paypjient of an annuity or such instalments
for the commuted value of payments yet to be made, computed
upon the same basis as the following table ; provided that no such
surrender and cominutation will be made under (3) unless the
good health of the beneficiary is shown to the satisfaction of the
company.
Tabij: of InstaI/Ments.
Option (2). Option (3).
Years. Instalment. Age of Instalment,.
Beneficiary
at death of
insured.
In Avitness whereof the company has caused this policy to be
executed this day of
(2) Limited payment life policy.
416
Legislative
Insurance Investigation,
New Toek Stant>abb Life' Instjeancb PoiLiCY.
nt$..
LIMITED PAYMENT LIFE.
Amou
Premium $
THE
LIFE INSUEANCE COMPANY.
of.
In consideration of dollars, receip'': of which
is hereby acknowledged, and of the payment of a like sum upon
each day of hereafter until full
years' premiums shall have been paid or until the prior death
of the insured.
Promises to pay at the home office of the company in .
in of due proof of the death of , of
. , county of , state of .
herein called the insured, dollars after deduct-
ing any indebtedness to the company and any unpaid portion of
the then current year's premium, at said home office to
. , with right of revocation.
Change of beneficiary. — Where right of revocation has been
reserved the insured may from time to time, if there be no exist-
ing assignment of the policy made as herein provided, change the
beneficiary with or without reserving right of revocation by filing
written notice thereof at the home office of the company, accom-
panied by the policy for suitable indorsement thereon; and if
the last named beneficiary under a revocable designation shall
not survive the insured the policy shall be payable to the legal
representatives of the insured.
Bills Introduced by the Committee. 417
Payment of premiums. — The company will accept payment of
premiums at other times than as stated above, as follows :.
Except as herein provided the payment of a premium shall
not maintain the policy in force beyond the period for which it
is paid.
All premiums are payable in advance at said home office or to
any agent of the company upon delivery of a receipt signed by
an officer of the company and countersigned by said agent.
A grace of thirty days from the day when it would otherw ise
be payable shall be granted for the payment of every premium
after the first, during which time the insurance shall continue in
force.
Conditions. — (The policy may here provide for restrictions of
liability by reason of travel, occupation, change of residence and
suicide, applicable only to one year after the issuance of the
policy-)
Incontestability. — (The policy shall here provide that it shall'
be incontestable, except for nonpayment of premiums, either from
its date or after one year, in the following form) :
This policy shall be incontestable, except for nonpayment of
premiums, from its date.
If the age of the insured has been understated, the amount,
payable hereunder shall be such as thfe premium paid would have
purchased at the correct age. t!p:
Participation.— This policy shall each year participate in the
418 Legislative Insurance Investigation.
surplus of tlie company as provided by the laws of the state of
New York now in force.
Dividends. — Dividends at the- option of the holder shall be
either--
(!Q Payable in cash, or
(2) Accumulated to the credit of the policy with interest at
per centum per annum and payable at the maturity
of the policy, but withdrawable on any anniversary of thei policy.
or
(3) Applied toward the payment of any premium or premiums,
or
(4) Applied to the purchase of paid up additions to the policy.
Unless the holder of this policy shall elect otherwise within
three months after the mailing by the company of a written notice
requiring such election as provided by the laws of the state of
New Yerk, the dividends shall be applied to purchase paid up
additions to the policy.
Loans. — ^The company at any time will advance upon the sole
security of this policy, at a rate of interest not greater than
per centum per annum, a sum not exceeding the amount
specified in the table of loan values herein set forth after deduct-
ing therefrom all other indebtedness to the company. Failure
to repay any such advance or interest shall not avoid this policy
unless the total indebtedness to the company shall exceed the
aggregate of the net value of the policy and of all additions
thereto and all dividends and accumulations and notice shall have
been given by the company as prescribed by law.
Assignment. — ISTo assignment of this policy shall be binding
upon. the company unless it be filed with the company at its said
Bills Introduced hy the Committee. 419
home office. The company assumes no responsibility as to the
validity of any assignment.
Options on surrender or kpse.— After this policy shall have
been in force three full years it may be surrendered by the holder
at any time prior to any default or within three months after
any default and thereupon the net value of the policy and of all
additions thereto and all, dividends, and accumulations, after de-
ducting any indebtedness to the company, shall be applied at the
option of the holder —
(1) To continue the policy in force at its full amount for the
period for which such net value, dividends, and accumulations
will purchase temporary insurance, or
(2) To purchase paid-up insurance payable at the same time
and on the same conditions, except as to payment of premiums,
as this policy.
And if, in the event of any default in the payment of premium
or otherwise, after the policy shall have been in force three full
years, the holder shall not exercise either of said options within
three months after such default, the said net value, dividends,
and accumulations shall be applied by the company as provided
in the first of said options.
The minimum periods for which the insurance will be continued
and the mimimum amounts of paid-up insurance which will be
allowed as aforesaid, exclusive of the application of dividends, ad-
ditions and accumulations, are shown in the table of surrender
values herein set forth, subject to adjustment in case there is any
indebtedness to the company.
420 .Legislative Insurance Investigation.
Table os" LoIn anb Sukeendeb Values.
Years' Paid-up. v Continued Insurance.
Premiums paid. Loan value. Insurance. Years. Months, Says,
1
2
3
4
5
6
7
8
9
10
11
12
13
15
16
17
18
19
20
Values for other years will be eompiited on the same basis and
be furnished upon request.
Modes of settlement. — The insured, or after his death the bene-
ficiary, by written notice to the company at its home office, may
elect to have the total sum payable under this policy upon the
death of the insured paid either in cash or as follows:
(1) By the payment of an annuity equal to per
centum of such total sum payable at the end of each year during
the lifetime of the beneficiary, and by the paynrent upon the death
Bills Introduced hy the Committee. 421
of the beneficiary of tha said total sum, together with any ac-
crued portion of the annuity for the year then current, to the
beneficiary's legal representatives or assigns.
(2) By the payment of equal annual instalments at the be-
ginning of each year for a specified number of years, the first
instalment being payable immediately, in accordance with the
following table for each one thousand dollars of said total sum.
(3) Ey the payment of equal annual instalments payable at
the end of each year for a fixed period of twenty years and so
many years longer as the beneficiary shall survive, in accordance
with the following table for each one thousand dollars of said
total sum.
Any instalment payable under (2) or (3) which shall not have
been paid prior to the death of the beneficiary shall be paid to
the beneficiary's legal representatives or assigns.
Unless otherwise specified by the insured or by the beneficiary
in making such election, the beneficiary may at any time surrender
the agreement for the payment of an annuity or such instalments
for the commuted value of payments yet to be made, computed
vrynn file Same basis as the following table; provided that no
such surrender and commutation will be made under (3) unless
the good health of the beneficiary is shown to the satisfaction of
the company.
Table of IisrsTALMEiirTS.
Option (2). Option (3).
Years. Instalment. Age of Instalment.
Beneficiary
at death of
insured.
In witness whereof the company has caused this policy to be
executed '. • day of
(3) Endowment policy.
422 Legislative Insurance Investigation.
New York Stawdaed Life Insubance Policy,
enbowmewt
Amount $ . Premium $ .
THE
LIEF INSUEANCE COMPACT.
of , >
In consideration of dollars,
receipt of which is hereby acknowledged, and of the payment of
a like sum upon each day of hereafter
until full years' premiums shall have been
paid or until the prior death of the insured,
Promises to pay at the home office of the company in
.to of , county of
. state of , herein called the in-
sured, on the day of , , if the
insured be then living, or upon receipt at said home office of due
proof of the prior death of the insured, to
with right of revocation, dollars,
after deducting any indebtedness to the company and any unpaid
portion of the then current year's premium.
Change of beneficiary. — Where right or revocation has been
reserved the insured may from time to time, if there be^no ex-
isting assignment of the policy made as herein provided, change
the beneficiary vsdth or without reserving right of revocation by
filing written notice thereof at the home offiae of the company,
accompanied by the policy for suitable indorsement thereon ; and
if the last named beneficiary under a revocable designation shall
not survive the insured the policy shall be payable to the legal
representatives of the insured.
Bills Introduced hy the Committee. 423
Payment of premiuins.— The company will accept payment of ■
premiums at other times than as stated above, as follows:
Except as herein provided the payment of a premium shall not
maintain the policy in force beyond the period for which it is
paid.
All premiums are payable in advance at said home office or to
any agent of the company upon delivery of a receipt signed by
an officer of the company and countersigned by said agent.
A grace of thirty days from the day when it would otherwise
be payable shall be granted for the payment of every premium
after the first, during which time the insurance shall continue
in force.
Conditions. — (The policy may here provide for restrictions of
liability by reason of travel, occupation, change of residence and
suicide, applicable only to one year after the issuance of the
policy.)
Incontestability.— (The policy shall here provide that it shall
be incontestable, except for nonpayment of premiums, either
from its date or after one year, in the following form:)
This policy shall be incontestable, except for nonpayment of
premiums, from its date.
If the &«■& of the insured has been understated, the amount pay-
able hereunder shall be such as the premium paid would have pur-
chased at the correct age.
Participation.— This policy shall each year .participate in the
surplus of the company as provided hy the laws of the state of
New York now in force.
4:24 Legislative Insurance Investigation.
Divideiids. — Dividends at the option of the holder shall be
either —
(1) Payable in cash, or
(2) Acciunulated to the credit of the policy with interest at
per centum per. annum and payable at the ma-
turity of the policy, but withdrawable on any anniversary of the
policy, or
(3) Applied toward the payment of any premium or premiums,
or
(4) Applied to the purchase of paid-up additions to the policy.
Unless the holder of this policy shall elect otherwise within
three months after the mailing by the company of a written
notice requiring such election as provided by the la.ws of the state
of New York, the dividends shall be applied to purchase paid-up
additions to the policy.
Loans. — The company at any time will advance upon the sole
security of this policy, at a rate of interest . not greater than
per centum per annum, a sum not exceeding the
amount specified in the table of loan values herein set forth after
deducting therefrom all other indebtedness to the company. Fail-
ure to repay any such advance or jnterest shall not avoid this
policy unless the total indebtedness to the company shall exceed
the aggregate of the net value of the policy and of all additions
thereto and all dividends and accumulations and notice shall have
been given to the company as prescribed by law.
Assignment. — No assignment of this policy shall be binding
upon the company unless it be filed with the company at its said
home office. The company assumes no responsibility as to the
validity of any assignment.
Options on Surrender or lapse. — After this policy shall have
seen in force three full years it may be surrendered by the holder at
Bills Introduced hy the Committee. 425
any time prior to any default or within three months after any
default and thereupon the net value of the policy and of all addi-
tions thereto and all dividends, and accumulations, after deducting
any indebtedness to the company, shall he applied at the option
of the holder.
(1) To continue the policy in force a't its full amount for the
period for which such net value, dividends and accumulations will
purchase temporary insurance, hut not "beyond the
^^7 0^ and the excess, if any, to the purchase of
a pure endowment to be payable on said date in the event only that
the insured be then livino-.
(2) To purchase paid-up insurance payable at the same time and
on the same conditions, except as to payment of premiums, on this
policy.
And if, in the event of any default in the payment of premium
or otherwise, after the p<jlicy, shall have been in force three full
years, the holder shall not exercise either of said options within
three months after such such default, the said net value, dividends,
and accumulations shall be applied by the company as provided in
the first of said options.
Tie minimum periods for which the insurance will be continued
and the minimum amounts of pure endowment and of paid-up
insurance which will be allowed as aforesaid, exclusive of the
application of dividends, additions and accumulations, are shown
in the table of surrender values herein set forth, subject to adjust-
ment in case there is any indebtedness to the company.
426 Legislative Insurance Investigation.
Table of Loan and Sdekendee Values.
Years' Paid-up Endow- Coiatiaued Insm-anoe. ' Pure En-
Premiums paid. ILoan value, ment Insurance. Years. Months. Days. dowment.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Values for otter years will be computed on the same basis and
be furnished upon request.
Modes of settlement. — The insured, or after his death the bene-
ficiary, by written notice to the company at its home office, may
elect to have the total sum payable under this policy upon the
death of the insured paid either in cash or as follows:
(1) By the paypient of an annuity equal to ■ . . per centum
of such total sum payable at the end of each year during tlie life
time of the beneficiary, and by the payment upon the death of
Bills Introduced by the Committee. 42l
the beneficiary of the said total sum, together with any accrued
portion of the annuity for the year then current, to the bene-
ficiary's legal representatives or assigns.
(2) By the payment of equal annual instalments at the be-
ginning of each year for a specified number of years, the first
instalment being payable immediately, in accordance with the
following table for each one thousand dollars of said total sum.
(3) By the payment of equal annual instalments payable at the
end of each year for a fixed period of twenty years and so many
years longer as the beneficiary shall survive, in accordance with
the following table for each one thousand dollars of said total
sum.
Any instalments payable under (2) or (3) which shall not have
been paid prior to the death of the beneficiary shall be paid to the
btneficiary's legal representatives or assigns.
Upon the maturity of this policy as an endowment the insured
may elect to have the total sum payable hereunder, paid either in
cash or in one of the following methods, designating whether the
payment shall be made to the insured or to the beneficiary or
to them both jointly as herein provided:
(4 By the payment of an annuity equal to per centum
of the total sum payable at the end of each year either to the
insured for life or to the beneficiary for life, or to both during
their joint lives or to the survivor during life, and by the pay-
ment upon the death of the payee or surviving payee of the said
total sum, together with any accrued portion of the annuity for
the year then current, to his legal representatives or assigns.
(5) By the payment of equal annual instalments at the begin-
ning of each year for a specified number of years, the first instal-
ment being payable immediately, in accordance with the follow-
ing table for each one thousand dollars of said total sum, either
58
428 Legislative Insurance Investigation,
to the insured or to the beneficiary or to both jointly and the
survivor.
(6) By the payment to the insured or the beneficiary of equal
annual instalments _pay able at the end of each year for a fixed
period of twenty years and so many years longer as the payee
phall survive, in accordance with the following table for each one
thousand dollars of said total sum.
(7) By the payment to the insured and the beneficiary jointly
and to the survivor of equal annual instalments payable at the
end of each year for a fixed period of twenty years and so many
years longer as they or either of them shall live, computed by the
j-ame mortality table and rate of interest as used in computing
the amounts to be paid under options (3) and (6).
Unless otherwise specified by the insured or by the beneficiary
in making such election, the payee or payees under said election
may at any time surrender the agreement for the payment of an
annuity or instalments for the commuted value of- payments yet
to be made, computed upon the same basis as the following table,
provided that no such siirrender and commutation will be made
under (3), (6) or (Y) unless the good health of the -payee or
payees is shown to the satisfaction of the company.
Bills Introduced hy the Committee. 429
Table of Instalments.
Options (2) and (5). Options (3) and (6).
^^^T^s. Instalment. ' Age of payee when Instalment.
policy becomes
payable.
In witness whereof the company has caused this policy to be
executed this. . day of . . .
(4)
Term
policy.
New York Standabd
Life Insueance Policy.
TESM
Amount $.
....
. . . . Premium $
THE
riEE INSUEANCE COMPANY.
of.
In consideration of dollars, receipt of which is
hereby acknowledged, and of the payment of a like sum upon
each day of hereafter during the term of
years or until the prior death of the insured,
Promises to pay upon receipt at the home office of the com-
pany in of due proof of the death within years
from the date hereof of of , county of ,
state of , herein called the insured,
dollars, after deducting any indebtedness to the company and any
unpaid portion of the then current year's premium, at said home
office to with right of revix;ation.
Change of beneficiary.^ — "Where right of revocation has been
reserved the insured may from time to time, if there be no exist-
ing assignment of the policy made as herein provided, change the
■±•"0 Legislative Insurance Investigation.
beneficiary with or without reserving right of revocation by filing
written notice thereof at the home oflSce of the company, accom-
panied by the policy for suitable indorsement thereon; and if the
last named beneficiary under a revocable designation shall not
survive the insured the policy shall be payable to the legal repre-
sentatives of the insured.
Payment of premiums. — The comjiany wi-11 accept payment of
premiums at other times than as stated above, as follows:
Except as herein provided the payment of a premium shall not
maintain the policy in force beyond the period for which it is paid.
All premiums are payable in advance at said home office or to
any agent of the company upon delivery of a receipt signed by an
oflficer of the company and countersigned by said agent.
A grace of thirty days from the day when it would otherwise be
payable shall be granted for the payment of every premium after
the first, during which time the insurance shall continue in force.
Conditions. — (The policy may here provide for restrictions of
liability by reason of travel, occupation, change of residence and
suicide, applicable only to one year after the issuance of the
policy)-
Incontestability. — (The policy shall here provide that it shall
be incontestable, except for nonpayment of premiums, either froui
its date or after one year, in the following form:)
This policy shall be incontestable, except for nonpayment of
premiums, from its date.
If the age of the inspired has been understated, the amount pay-
able hereunder shall be such as the premium paid would have pur-
chased at the correct age.
Bills Introduced by the Committee. __ 43 1
Participation. — This policy shall each year participate iu the
surplus of the company as provided by the laws of the state of
ISTew York now in force.
Dividends. — Dividends at the option of the holder shall be
c'ithei' —
(1) Payable in cash, or
(2) Acciimiilated to the credit of the policy with interest at
per centum per annum and payable at the maturity of
the policy, but withdrawable on any anniversary of the policy, or
(3) Applied toward the payment of any premium or premiums,
or
(4) Applied to the purchase of paid-up additions to the policy.
Unless -the holder of this ])ol'cv shall elect otherwise within
three months after the m'liliiijr by the company of a written
notice requiring such election as ])rovided by the laws of the
state of New York, the dividends shall be applied to purchase
paid-up additions to tae policy.
Privilege of renewal. — The insured, if under the, age of sixty-
live years, may renew this policy for further terms of
years each bj vinritten notice to the company at its said home
office on or before the expiration of the insurance hereunder and
by paying the premiums to be fixed by the age on the birthday
nearest to the date of such renewal in accordance vidth the follow-
ing table for each one thousand dollars of insurance; if the insured
shall be over the age of sixty-five years the policy may be renewed
upon similar notice as an ordinary life policy by paying premiums
(luring life in accordance with the following table fyr eack "tk;
thousand dollars insurance;.
432 Legislative Insurance Investigation.
Table of Peemittms fob Kenbwals.
.... Years' term-premiiun Ordinary life premium
Attained age. for each $1,000. .. .in Attained age. for each $1,000. .. .in
advance. advance.
Privileges of change to other forms of policies. — The insured
may exchange this policy for a participating policy for the same
amount or any less amount upon a life, limited payment life or
endowment plan upon any anniversary of the policy or within
the thirty days of grace by surrendering the policy to the com-
pany at said home office with written notice of the election^
and by paying the premiums to be fixed by the age on the birth-
day nearest to the date of such exchange, according to the rates
of the company then in force. On such exchange the company
will apply the net value of this policy and of all additions thereto
computed in accordance with the standard adopted by the com-
pany under section eighty-four of the insurance law of the state
of New York, together with all dividends and accumulations,
toward the payment of premiums upon the new policy.
Assignment. — ISTo assigmnent of this policy shall be binding
upon the company unless it be filed with the company at its said
home office. The company assumes no responsibility as to the
validity of any assignment.
Options on surrender or lapse. — After this policy shall have
been in force three full years it may be surrendered by the
holder at any time prior to any default or within three months
after any default and thereupon the net value of the policy and
of all additions thereto and all dividends, and accumulations,
after deducting any indebtedness to the company, shall be applied
at the option of the holder —
(1) To continue the policy in force at its full amount for the
period for which such net value, dividends, and accumulations
will purchase temporary insurance, or
Bills Introduced hy the Committee. 433
(2) To purchase paidiip insurance payable at the same time
and on the same conditions, except as to payment of premiums,
as this policy.
And if, in the event of any default in the payment of premiuii;
or otherwise, after the policy shall have been in force three full
years, the holder shall not exercise either of said options within
three months after such default, the said net value, dividends,
and accumulations shall be applied by the company as provided
in the first of said options.
The minimum periods for which the insurance will be continued
and the minimum amounts of paid-up insurance which will be
allowed as aforesaid, exclusive of the. application of dividends,
additions and accumulations, are shown in the table of surrender
values herein set forth, subject to adjustment in case there is any
indebtedness to the company.
Years' Continued Insurance.
Premiums, paid. Paid-up Term Insurance. Years. Months. Days.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
434 Legislative Insurance Investigation.
Years' Continued Insurance.
P;;-r,iiuiTis. paid. Paid-up Term Insurance. Years. Months. Days.
16
17
18
19
20
Values for otlier years will be compiited on the same basis and
lie fiimished upon request.
Modes of settlement. — The insured, or after his death the bene-
Hciary, by written notice to the company at its home office, may
elect to have the total sum payable under this^ policy upon the
death of the insured paid either in cash or as follows :
(1) By the payment of an annuity equal to per
centum of such total sum payable at the end of each year during
the lifetime '■■f the beneficiary, and by the payment upon the death
of the beneficiary of the said total sum, together with any accrued
portion of the annuity for the year then current, to the bene-
ficiary's legal representatives or assigns.
(2) By the payment of equal annual instalments at the begin-
ning of each year for a specified number of years, the first instal-
ment being payable immediately in accordance with the following
table for each one thousand dollars of said total sum.
(3) By tlie payment of equal annual instalments payable at the
end of each year for a fixed period of twenty years and so many
years longer as the beneficiary shall survive, in accordance with
the following table for each one thousand dollars of said total
sum.
Any instalments payable under (2) or (3) which shall not
have been paid prior to the death of the beneficiary shall be paid
to the beneficiary's legal representatives or assigns.
Unlc?s otherwise specified by the insured or by the beneficiary
j'j making such election, the beneficiary may at any time surren-
der the agreement for the payment of an annuity or such instal-
Bills Introduced hy the Committee. 435
meats for the commuted valne of payments yet to be mado, com-
p;ited upon the same basis as the following table; provided that
no such surrender and commutation will be made under (S) un-
less the good health of the beneficiary be shown to the satisfaction
of the company.
Table of Instai.meitts.
Option (2). Option (3).
Years. TQgtalment. Age of Instalment.
Beneficiary
at death of
insured.
In witness whereof the company has caused this policy to be
executed this day of
Whenever any such corporation shall desire to issue or deliver
within this state any kind of policy other than ordinary life, lim-
ited payment life, endowment and term policies, it shall submit
a proposed form of policy to the superintendent of insurance who
shall thereupon fi.x a day for a hearing U} i said applicntion
and cause notice thereof to be given to every corporation trans-
acting within the state business of the same general character
as that transacted by such applicant; and the superintendent
may after such hearing approve the said form with or without
modifications thereof as may seem to him expedient and estab-
lish the same as a standard form of policy which any company
doing business Avithin the state shall be entitled to use in addi-
tion to the forms hereby prescribed. Forms of policies so ap-
proved by the superintendent may be changed from time to time
upon the application of any company upon similar request and
after a hearing upon similar notice. It shall be lawful for any
corporation issuing exclusively nonparticipating policies to incor-
])orate in any of said standard forms a provision that the said
j)olicy shall be nonparticipating, ■ and to omit therefrom clauses
providing for participation in the surplus of the company.
§ 2. This act shall take effect immediately.
INDEX.
yOLUMES ONE TO SBVBN.
ABBREVIATIONS AND
KEY TO NAMES OF WITNESSES
Conn. Mut Connecticut Mutual Life Insurance Co.
l^quit Equitable Life Assurance Society.
Metr Metropolitan Life Insurance Co.
:\Iut. Ben Mutual Benefit Life Insurance Co.
Mut Mutual Life Insurance Co.
jSlut. Res Mutual Reserve Life Insurance Co.
X. Y. Life N. Y. Life Insurance Co.
X. Y. Sec. & Trust Co N. Y. Security & Trust Co.
Penn. Mut Pennsylvania Mutual Life Insurance
Co.
Prov. Sav Provident Savings Life Insurance Co.
Prud Prudential Life Insurance Co.
See. Mut Security Mutual Life Insurance Co.
U. S. Life United States Life Insurance Co.
The initials in parenthesis in the Index refer to the witnesses
and are foun,d alphabetically arranged below.
A. D. J
A. G. P
A. H
A. I., Jr....
A. W
A. W. M
B. B. O., Jr.
C. A. N. . ..
C. A. P
C. C. G. . ..
C. C. W
CD
C. D. W. . . .
C. G
C. H. R. . ..
A. D. Julliard
A. G. Pain
A. Hamilton (deposition of)
A. Iselin, Jr.
A. Wheelwright
A. W. Mayne
B. B. Odell, Jr.
C. A. Norris
C. A. Preller
C. C. Gretsinger
(same as 0. D. W.), C. C. White
C. Doremus
isame as 0. C. W.), C. D. Whito
C. Gilbert
C. H. Raymond
44:2 Key to Witnesses.
C. J. S 0. J. Smith
C. M. D CM. Depew
0. M. T CM. Turner
C P. McC C. P. McClelland
C. R. H C. R. Henderson
C. W. C 0. W. Camp
D. H. W D. H. Wells
D. M.. J D. M. Junk
D. P. K. D. P. Klngsley
D. S. D D. S. Dickenson
E. C. P E. C. Potter
E. D. R E. D. Randolph
E. H. H E. H. Haniman
E. I. D E. I. Devlin
E. L. B E. L. Baylies
E. MeC E. MoOlintock
E. E. R E. E. Rhodes
E. W. C E. W. CoggeshaU
E. W. R E. W. Rogers
E. W. S E. W. Scott
T. B. J T. B. Jordan
F. C , F. Cromwell
F. H F. Hendricks
F. H. E F. H. Ecker
F. H. S F. H. Shipman
F. W. J F. W. Jackson
I'. W. J F. W. Jenkins
G. C. Van T., Jr G. 0. Van Tuyl, Jr.
G. D. E G. D. Eldridge
G. E. I , G. B. Ide
G. E. T G. E. Tarbell
G. F. B G. F. Baker
G. G. H G. G. Haven
G. H. S G. H. Sickles
G. H. S G. H. Squire ( deposition of)'
G. H. S., Jr G. H. Squire, Jr.
Key to Witnesses.
HI
G. J. P. . .
G. E. B. . . .
G. T. D. . . .
G. T. H. . . .
G. T. W. . .
G. W. J. . . .
G. W. P. . . ,
G. W. P. . . ,
H. B. H. .
H. B. S. . . ,
H. D. A. . .
H. D
H. F
H. G
li. H. B. . .
H. H. \V. .
H. K. S. . .
H. M. . . .
H. Moigenthau
H. P. T. . ..
H. E. W. . .
I. V
J. A. H. . . .
J A. McC. .
J. A. N. . . .
J. C
J. 0. K
J. S. McC. . .
J. F. D. . . .
J. F. MeC. .
J. F
J. G
J. G. Van C.
J. H. H. . . .
J. H., Jr. . .
J. H. S
G. J. Plunkett
G. E. Brown
G. T. Dexter
6. T. HoUister
G. T. Wilson
G. W. Jenkins
G. W. Palmer
G. W. Perkins
H. B. Hyde
H. B. Stokes
H. D. Appleton
H. Deinpsey
H. Fiske
H. Greaves
H. H. Brockway
H. H. White
H. K. Stokes
H. Moir
H. Morgenthau
H. P. Tow-nsley
H. E. Winthrop
I. Vanderpoel
J. A. Hyland
J. A. McCall
J. A. Nichols
J. Claflin
J. 0. Keeler
J. C. McCall
J. F. Dryden
J P. McCullough
J. Fiihrer
J. Gilchrist
J. G. Van Cise
J. H. Hyde
J. Howard, Jr.
J. H. Schiff
444
Key to Witnesses.
J. 3. C
J. J. M
J. K. A
J. K. G
J. McG
J. McG., Jr. . .
J. M. C
J. N. J
J. P. M
J. R. C
J. R. H
,T. T
J. Timp
J. W. P
1. B
L. r. p
L. G. . .
L. M. B
M. E. M
M. M. D
t
M. M. M
il. M
M. W. T
N. D. P., Jr. .
N. F. T
R. A. G
R. A. McC. . .
E. H. H
R. H. McC. . .
R. K. H
E. M
R. O
R. S. R
R. W
R. W. W. . . .
S. B. D
J. J. Cunningham
J. J. Merrill
J. K. Apgar
J. K. Gore
J. McGuinness
J. McGuinness, Jr.
J. M. Craig
J. N. Jarvie
J. P. Munn
J. R. Cady
J. R. Hegeman
J. Tatlook
J. Timpson
J. W. Phair
L. Ballard
L. F. Payn
L. Gillespie
1,. M. Bailey
M. E. Mullaney
M. M. Dawson
M. M. Mattison
M. Murray
M. W. Torrey
N. D. Putnam, Jr.
N. F. Towner
R. A. Granniss
R. A. McCurdy
R. H. Hunter
R. H. McCurdy
R. K. Hubbard
R. Morgan
R. Olyphant
R. S. Ransom
E. Wightman
R. W. Weeks
S. B. Butcher
Key to Witnesses.
445
s. ii. s. . .
S. S. McC. .
S W. ...
T. A. B. . .
T. C. B. . .
T. C
T. C. P
T,. F. E. . . .
T. F. W. . . ,
T. M. B. . . .
W. A. B. . .
^Y. A
^\'. A. M. . .
W. A. R. . .
\V. B.. Sr. . .
w. c. p. . .
\\'. A. S. . . .
W. F. T
\V. G. O. . .
\V. H. K. . .
W. M. C. . .
W. N. E. . .
W. R. G. . .
W. S. F. . . .
W. S. M. . .
w. s. s. . . .
w. a*. G. . . .
W. V. K. . .
\y. w. K. . .
S. M. Smith
S. S. MeCurdy
S. Wilson
T. A. Buokner
T. C. Bell
T. Conan
T. C. Piatt
T. F. Ryan
T. F. Williamson
T. M. Banta
W. A. Butts
W. Alexandei
^V. A. Marshall
W. A. Read
W. Barnes, Sr.
W. C. Phillips
W. A. Stevens
W. F. Thummel
W. G. Oakmon
W. H. Kingsley
W. M. Carpenter
W. N. Elbert
W. R. Gillette
W. S. Fanshawe
W. S. Manning
W. S. Sullivan
W. T. Gilbert
W. V. King
W. W. Richards
INDEX.
A
Actual law and methods :
calculation of assessment?; In Mut. Res. (G. D. E.), 2756-2768; and
reason for increased assessments (G. D. B.), 307] -3077 ; in Sec. Mut.
(D. S. D.), 3511-3533
calculation of dividends; in ..Etna Life, 4«i;8-4S29; in Equitable (J. G.
Vac. C), 4670; in Life Association (H. P. T.), 408G-4087; In Man-
hattan Life (M. W. T.), 4658-4659; in Metr. Life (J. R. H. and J. M. O.), .
1966-1967, 1972-1974, 2172-2173; in Mut. Life and formula used (B. '
McC), 1899-1902; estimates and tables of results prepared l?y Profes-
sor Stuart used in Mut. Life (E. McC), 1798-1799; in N. Y. Life (R. W.
W.), 1125-1128, 4744; calculations of N. Y. Life compared with other
companies, (E. McC), 1827-1828; in Prov. Savings Life (H. M.), 3951,
3954 3957: calculations in Sec. Mut. prior to 1889 (C M. T.), 3437,
3438; in Washington Life (J. T.), 4164-4166.
Dawson's, or select and ultimate system of valuation, discussion of
(E. McC), 1911-1916
difference between systems in Great Britain and America (H. M.), 3994
calculation of lien and premiums on exchange policy in Sec. Mut. (B. S.
D.), 3506-3515
loadings in Manhattan Life (M. W. T.), 4654; in Mut. Life, 1882-1892;
in Prov. Sav. Life (H. M.), 3923-3925, (B. K. H.), 3961; in Sec. Mut.
(D. S. D.), 3520-3.523
calculation of profits in Manhattan Life (M. W. T.), 4652-4658
select and ultimate system of valuation, see Dawson
Smith l>ool£ of estimates (W. A. M.), 3599
Sprague system of valuation (E. McC), 1912
surplus; distribution of in Manhattan Life (N. W. T.), 4658; treatment
of surplus and reserves in N. Y. Life (J. A. M.), 1099-1105; surplus in
Sec. Mut. (D. S. D.), 3529-3532
1099 1105; surplus in Sec. Mut. (D.' S. D.), 8529 3532
calculation of surrender values in Sec. Mnt. (D. S. D.), 3527-3529
see also testimony of:
J. M. Oraig, actuary of Metr. Life; M. M. Dawson, consulting actu-
ary of Ins. Investigation Com. ; D. S. Dickinson, actuary of Sec.
Mut. ; G. D. Eldridge, vice-pres. of Mut Res, ; E. McCliatoi k, actu-
ary of Mut. Life; H. Mois, pres. of Prov. Savings Life; H. P.
Townsley, pres. of Life Association ; C M. a'uruer, pres. of Sec.
Mut. ; J. C. Van Cise, actuary of Equit. Life; K. W. Weeks, actuary
Of N. X. Life
448 Index — Witnesses and Exhibits.
Acturlal Soc. of America :
discussion on percentages on "select and ultimate" method (E. McC.)
1912-1913
Advertising :
methods and expenses of, in Mat. Life (W. S. S.), 1754-1765; (J. H.,
Jr.), 2111-2114; (ex. 270), 1428-1429; in Mut. Res. (G. D. E.), 3191-
8194; in Prudential Life (J. F. D.), 3687-3688
substitution of, for agents, see Life Ins. Club of N. Y.
see also individual companies,
^tna Life Ins. Co. of Hartford :
statement of, 4826-4831; baak balances of. 4828; campaign and political,
contribations of, 4827; capital stocli of, 4827; commissions of, 4828;
dividends, methods of calculating, 4828-4829; documents furnished by,
4826-4827 ; investments of, 4828 ; rebates on taxes, 4541 ; syndicate par-
ticipations of, 4827-4828
-'Agency methods, see under individual companies.
Agency and Investment Co.:
relations of, with Security Mutual (C. M. T.), 3327-3351, 3487, 3536-3537
capitalization of (C. M. T.), 3349-3351; increase of stock of (C. M. T.),
3332-3aS3, 3351-3352 ; issuance of stock of, for benefit of Security Mu-
tual (C. M. T.), 3431-3432, 3433
receipts of, from agents' balances (C. M. T.), 3335-3337
dividends of (C. M. T.), 3345-3347
Aird:
agency director of Buffalo Branch of N. Y. Life (T. A. B.), 978
Albany Trust Co.:
account of A. Hamilton with (es. 160 and G. C. Van Tuyl), 826, 827
Alexander, Francis W :
statement of (ex. 995), 4759
Alexander, J. W. :
account with Williamson and Squire (ex. 369), 2330; (ex. 943), 4736
agreement regarding compensation of (ex. 206 O. D. B.), 92S-929; and
pension for widow (C. M. D.), 2431-2432
consultations of, with C. M. Depew (C. M. D^), 2421
director of Fidelity Trust Co. (J. F. D.), 3666
connection of, with legislative interests of Co.- (A. W. M. and W. F. T.),
1062, 1195
attitude of, towards limitation of insurance (E. McC), 1824
syndicate allotments to, by J. H. Hyde (J. H. S.), 1035
syndicate participations of, in syndicates managed by Kuhn, Loeb & Co.
(J. H. S.), 1027; in 0. B. & Q., purchase (H. R. W.), 849; In Penn.
Coal Purchase Syndicate (G. H. S.), 883; in Southern Pac. 25 year
4. per cent bonds, (H. R. W.), 833; letter of, regarding Union Pacific
Syndicate (J. H. H.), 2132-2266
named as trustee of Equitable stock (W. A.), 116, 122; resignation of, as
trustee (W. A.), 128, 124
Index — Witnesses and Exhibits. 440
AlexniKler, J. ^Y. — Continued:
statement of, ta Board suggesting voting rights of policyholders (W. A.),
145
Alexander, J. W., account:
identity of, with T. D. Jordan account (H. Greaves), 908
Alexander, J. W., No. 3 account with Mercantile Trust Co.:
entry couceruing, in G. H. Squire, Trustee account (H. G.), 906; identity
of, witli T. D. Jordan and J. W. Alexander account (H. G.), 908; (ex.
377 and M. M.), 2381-2386
Alexander, William :
testimony of. 112-149
on his connection with Equit. Life, 118, 113 ; on plan, for mutualization
of Equit., 133; on salaries of officers of Equit, 139-141; on com-
mittees, 142-143, 144-146; on sales of Equit. stock, 146-147; on fees
for attending meetings, 147-149 ; on stock transfers, 148
Alexander and Jordan account of Equit. Life (J. H. H.), 2212, 2216, 2217
Alexander, Thomas, & Davis:
purchase of Jap. bonds from, uy Equit. Life (H. R. W.), 891
Alien, C. A.:
loan to, by H. P. Townsley (H. P. T.), 4068; connection of, with Life
Association (H. P. T.), 4070
Allen, C. H. :
connection of, with Washington Life and Morton Trust Co. (J. T.), 4113
Allen, F. L. :
counsel for Mutual Life in investigation, 9
Allied Real Estate Interests :
organization of (E. L. B.), 4225-422G; contribution to (E. L. B.). 4225
4228), 4249-4250; disbursements of (B. L. B.), 4226-4228, 4250-4251
Allison Case:
$35,500 judgmfent in, against N. Y. Life and payment] by Mr. Gibbs (J. A.
McC), 2951-2953
Allis-Chalmers syndicate :
participation of Metr. Life in (J. R. H.), 2094-2095 ; participation of J. R.
Hegeman in (J. R. H.), 2091-2092
Ambler, Henry S. :
announcement of death of, 6.55
Amendt, Anna L. :
duties of, in Equitable (G. E. T.), 2642-2644; salaries of (G. E. T.),
2644
American Bicycle Reorganization Syndicate:
relations of, to Metr. Life (S. B. D.), 513-515
American Collectors Company:
H. P. Townsley on, 4070
American Deposit & Loan Co. :
account of G. H. Squire, trustee, with (H. G.), 898, 908, 913
books of, held by Equit Trust Co. (L. G.), 3002
450 Index — Witnesses and Exhibits.
American Deposit & Loan Co. — Continued :
sale by, of 805 shares of liawyers' Mort. Ins. Co. to Equit. and connection
therewith of Jordan's sale of same stock (G. H. S., Jr.), 2431; sale
through, of Lawyers' Title and Lawyers' Mort. Ins. Co. stock to Equit.
for G. H. Squird (G. W. J.), 2338-2341, 2378; payments by, for stock of
Lawyers' Title and ESwyers' Mort. Ins. Co.'s stock on account ot J. H.
Hyde to T. D. Jordan (G. H. S., Jr.), 2375-2376; connection of, with
Lawyers' Title Ins. and Lawyers' Mort. Ins. Co. stock transactions of
Equit. Life and G. H. Squire (G. H. S.), 2519-2520, 2524-2525, 2529;
statement of purchase and sale by, of stock of Lawyers' Title Insur-
ance Co. (Ex. 507), 3002-3004; statement of purchases by, of Lawyers'
Mortgage Ins. Co. stbck (Ex; 508), 300^ 3004; letters sent by Ameri-
can Deposit & Loan Co., with certificates of stock of Lawyers' Title
and Lawyers' Mortgage Ins. Co. (Ex. 509, 510), 3004, 30O5; check of,
for profits on stock of Lawyers' Title & Lawyers' Mortgage Ins. Co.
(Ex. 511),. 3004; paymetfts by, to G. H. S. of profits from Lawyers'
Title and Lawyers' Mortgage Ins. Cos. (exs. 515-526 and R. S. R.),
3016, 3018; papers of, regarding transaction of Lawyers' Title and
Lawyers' Mortgage Ins. Cos. (ex. 515, 516), 1017
loans to T. F. Williamson (G. W. J.), 2339, (T. F. W.), 2380-2381
participation of, in C. B. & Q. purchase (H. R. W.), 849
American Exchange Bank:
relation of, to Mut. Life (F. C), 507
American experience table :
character of, (J. A. McC), 1079-1080; used by Prov. Savings Life in
fixing premium rate on policies (H. M.), 3938-3939
American Union Life :
attitude of Ins. Dept. to transfer of securities of (F. D. A.), 4471-4472
Amsterdam :
statement of cost of N. T. Life's building in (ex. 241), 1168
Ambiguous clauses in policies :
case of Mut Reserve vs. Foster and decision in House of Lords (G. D.
E.), 2769-2770; in Mut Res. regarding additional payments (G. D. B.),
3028, 3029
Annual dividends, see dividends.
Apgar, James K. :
testimony of, 2601-2610 ; on voucher to T. D. Husted, Oct. 11, 1897, 2601-
2604 ; on his political history, 3601-3602 ; on legislative activity of A. C.
Fields, 2606-2608; on his political relations to T. D. Husted, October,
1897, 2608-2610
Appleton, H. D. :
duties of, in state department of insurance (F. H.), 4269-4270
connection of, with Stipulated Premium Law (L. F. P.), 4514
testimony of, 4384-4415, 4448-4489; on his duties as second deputy, 4385-
4386; on attitude o# Department toward reports, 4386-4388; on New
York companies, 4388 ; on causes leading to examination of Washington
Index — Witnesses and Exhibits. 451
Appleton, H. D.— Continued :
Life, 4389-4390; on change ut report of examination of Mutual Reserve,
1895, 4395-4397 ; on attitncle of Department toward Stipulated Premium
Law, 4402-4415, 4454 4456 ; on attitude of Department toward insurance
legislation, 4411-4412; on advisability of limitation of business and
standard policies, 4484 ; on passing of amendment of Sec. 52 of insur-
ance law, 4448-4450 ; on authority of insurance dept. to exclude certain
organizations, 4450-4451 ; on refusal of Ins. Dept. to grant license to Sec.
Life and Trust Co., 4452-4453 ; on distinctive functions of N. Y. & Al-
bany officers of Ins. Dept., 4452-4453 ; on disadvantage of reincorporation
of assessment companies as level premium companies, 4454; on con-
troversy of Bankers' Life regarding Section 214 of Ins. Law, 4457-4458,
4463-4464, 4471-4472; on interpretation by Ins. Dept. of Section 201
and 214 of Ins. Law as regards Baulvers' Life and Mut. Res., 4464-
4468 ; on deferred examination of Bankers' Life, 4468 ; on supervising
powers of superintendent over policies, 4458-4402 ; on authority of Ins.
Dept. to refuse permission to reincorporate, 4463 ; on transfer of securi-
ties of Am. Union Life, 4472 ; on advisability of compelling insurance
companies to show movements of securities during year, 4472-4475 : on
form of annual statement blanks, 4474 ; on advisability of compelling
insurance companies to state legal expenses in detail and syndicate
participation, 4474 ; on advisability of requiring companies to give
schedule of dividends, 44TC-4477 ; on advisability of gain and loss ex-
hibit in annual statement, 4477-4482 ; on advisability of profit and loss
statements, 4480, 4483 ; on possibility of insurance departments sug-
gesting reduction of expenses, 4482-4483 ; on limitation of examina-
tion to one of solvency of company, 4483; on sufficiency of present
statements required, 4483; on advisability of additional powers for
superintendent of insurance, 4484-4485 ; on evils of deferred dividends
and bonuses, 4484 ; statement of, regarding work of Ins. Dept., 4485-
4487; on his insurance in Conn. Mut. Ben. (H. D. A.), 4488-4489
opposition of, to cash value policies in Bankers' Life (R. M.), 4234-4239,
4243-4244
Arlington Hotel:
transactions of Metr. Life concerning (F. H. E.), 2144-2145
Arnold, D. H. :
counsel of Home Life, in obtaining rebates on taxes (H. Morgenthau),
4560
Arbuckle Bros. :
connection of J. N. Jarvie with (J. N. J.), 475, 476; relations of, to Mut.
Life (J. N. X), 475-477; syndicate participations of (J. N. J.), 475-477
Arndt, David N. :
semi-annual bills of (R. A. McO.), 1483-1484
Asberg, Goldberg & Co. :
managers of St Paul & San Francisco underwriting syndicate, (H. R,
W.), 794
452 Index — Witnesses and Exhibits.
Ashe, J, F. :
C. P, McClelland's testimony concerning services of, to Mut. Life, 3057
3058
Assessment Insurance :
inability to pay cash dividends (H. D. A.), 4465
delay in paying claims (G. D. B.), 3129-3130
disadvantages of, in Mutual Reserve (G. D. E.), 3156
legislation against, in Canada (G. D. E.), 3156
opinions on (G. D. E.), 3306; IF. H.), 4289-4299
possibilities for reincorporation of (G. D. E.), 2751-2752; reincorporation
of assessment comiDanies as level premium companies — Mut. Res. (G
D. E.), 2740-2753; Security Mutual of Binghamtou (G. D. E.), 2751;
amendment preventing (H. D. A.), 4448-4450; disadvantages of (H. D.
A.), 4454
advantages for assessment companies under laws of N. Y. State to reor-
ganize as stock companies (H. P. T.), 4077
necessity for safety clause provision in (H. D. A.), 4459-4460
Atchison, Topeka & Santa Fe convertible 4's :
participation of Equit. Life in (H. W. R.), 887; participation of Mutual
Life in (F. C), 203, 436, 437; (A. D. J.), 557
Atlantic Coast Line R. R. Syndicate:
participation of Equit. Life in (H. R. W.), 806-809, 806-869; (J. H. H.).
2257-2258; connection of J. H. Flyde with (H. R. W.), 806, 807; par-
ticipation of J. H. Hyde and associates in (ex. 360), 2258
relations of, with Louisville & Nashville stock (J. C), 225-233; (S. B.
D.), 512
participation in, by Metr. Life (S. B. D.), 512, 513, 528
relations ol, with J. P. Morgan (S. B. D.), 528
participation in, by Mutual Life (F. C), 203, 204
participation of N. Y. Life In (J. C), 225-233; (E. D. R.), 263-264; joint
account in, of N. X. Life (ex. 133), 704; (G. W. P.), 702, 704
participation of N. Y. Sec. & Trust Co. in (G. W. P.), 2895
relations of, with Vermilye & Co. (S. B. D.), 528
Audit Co. stock :
as security, in G. H. Squire trustee's account (H. G.), 908, 899; connec-
tion of, with M. Hartley account, (H. G.), 899
Auditing of accounts :
in Equit. Life by T. D. Jordan (M. M.), 2388-2389; Inadequacy of, in
Equit. Life (F. W. J.), 2836-2838; inadvisability of auditing cash book
by person having right to draw money (F. W. J.), 2838
Australia :
agents' commissions in (H. M.), 3935
expenses of business in, and reason.s (ex. 512 and G. T. W.), 3008-3010,
3014-3016
mortality rate in, more favorable for rates (J. F. D.), 3767
Index — ^Yitnesses and Exhibils. ,453
Australian Mutual Provident Society:
commissions of (6. E. T.), 2620, (G. T. W.), 3014-3016
comparison of, with Bquit. business In Australia (G. T. W.), 2850-2853
methods of (G. E. T.), 2674-2676
low uiortality rate in (J. T.), 4122
causes for success of (G. T. W.), 2850-2851
largest cash surrenders paid by (J. T.), 4122
B
Babcoek, William :
relations of, to Banli of California and Mutual Life (F. C), 208, 209;
interest of, in Bank of California (R. A. McC), 1662
relations of, to Mut. Life (C. A. P.), 1298-1299; letter of, to Robert
Granniss, Feb. 2, 1904 (ex. 65), 499; contribution to, as chairman of
Congressional Committee, from Mut. Life (W. F. T.), 1198
Bailey, L. M., trustee:
balance transferred to account of, from G. H. Squire, trustee account
(H. G.), 912, 913; loans to G. H. Squire, trustee, transferred to (exs.
201, 202), 920, 921; connection of, with G. H. Squire trustee account
(H. R. W.), 993-994; bank book of, with Equit Life (J. H. H.), 2217-
2218
G. R. Brown's testimony on Equit. Life's property in name of, 2741-2742
statement regarding account of (ex. 217), with N. Y. Life, (H. R. W.)i
993, 994
position of, in Equitable Life (H. G.), 912
syndicate transactions of :
connection of, with Nav. syndicate (H. R. W.), 918
testimony of, 2469-2482; on his trustee account, 2469-2470; on his de-
posit of $843.35 (L. M. B.), 2469; on his real estate transactions of
Equitable in his name, 2470-2478 ; on fire insurance on properties mort-
gaged to Equitable, 2478-2481 ; on his salavy, 2478
Baker, G. F. (Pres. of 1st National Bank and Trustee of Mut. Life) :
connection of, with other financial institutions than Mut. Life (F. C),
484; responsibility of, for campaign funds of Mut. Life (W. R. G.),
Iti53; member of salary committee of Mut. Life (G. G. H.), 4543-4544,
4546
statement of syndicate participations of (ex. 982), 4755; testimony of,
484-488; on syndicate operations, 486-488; on his individual participa-
tion, in syndicates with Mut. Life, 487
Baldersou :
identity of (J. A. N.), 2562
Ball, Wilbur L. :
counsel for Equitable Society in investigation, 8
Ballard, Louis:
testimony of, 1551-1557; on whereabouts of L. W. Lawrence, 1551-1552;
en relations between L. W. Lawrence and Globe Printing Co., 1552-1557
Ballard, S. M. (secretary of N. Y. Life) :
salaries of (1904.1905), 215; relation of, to J. A. McOall (E. D. R.), 216
454 Index — Witnesses and Exhibits,
Baltimore & Ohio convertible debentures :
participation of G. H. Squire trustee in (H. G.). 904, 911
Bank of California :
relations of, with Mutual Life (F. C), 208-210, 499-502
Bank of England:
assets of, Aug., 1905 (J. McK.), 1427; salary of chief governor of (J.
McK.), 1427
Bank of France:
assets of, Aug., 1905 (J. McK.), 1427
Bank of Montreal :
arrangement of, with N. T. Life (E. D. R.), 368
Bank Clerks' Mutual Benefit Association. See Bankers Life Ins. Co.
Bankers Life:
examinations :
controversy with Ins. Dept. regarding Section 214 of Insurance Law
(H. D. A.), 4457-4458, 4463-4469, 4471-4472-
deferred examination of, by Ins. Dept. (H. D. A.), 446
exhibits: 821, 822, 823, 824, 860, 861
expenses :
general statement of (H. K. S.), 4252-4254; reduction of, since March,
1905 (H. K. S.), 4256; amounts expended from 1899 to 1904 (H. K.
S.), 4254
income: net earnings, from 1899 to 1904 (M. M. D.), 4254
investments:
in stocks (H. K. S.), 4248-4249; in Pere Marquette R. R. consolidated
mortgage (H. K. S.), 425G-4258
relations of, with Kniclierbocker Investment Co. (H. P. G.), 4096-4107
legislative payments: legislative and campaign contributions of (H. K.
S.), 4249
loans :
transaction regarding, called for about 1902 (R. M.), 4245-4248
litigation :
suit of Knickerbocker Investment Co., 4098-4104; citation from H.
Odell's opinion in suit of Knickerbocker Investment Co., 4098-4104;
suit of Townsley (R. M.), 4246-4247
relations of, with Manhattan Bond and Underwriting Co. (H. P. T.),
4104-4107
new business: written from 1899 to 1904 (H. K. S.), 42.54
organization and government :
organization of, as stock company in 1899 (H. P. T.), 4096; connection
of H. P. Townsley with (H. P. T.), 4096; capital stock of, at time
of organization as stock company (H. P. T.), 4096; original organi-
zation of, as fraternal company (R. M.)', 4230; re-incorporation of, as
assessment Co. (R. M.), 4230-4231; re-incorporation of, as old-line
company, 1898 (R. M.), 4236-4241
Index — Witnesses and Exhibits. 455
Bankers' Life — Continued ;
policies :
transference of, written under first organization (R. M.), 4231-4232;
issuance of, with casli value (R. M.), 4233-4238; Dawson policy (sub-
stitution of loans for cash surrenders), (R. M.), 4235-4236, 4241;
change in forms of, at time of reorganization (R. M,), 4242-4243;
preliminary term policy (R. M.), 4242-4243; litigation regarding, in
Vermont (R. M.), 4245; comparison of valuation of policies by De-
partment of Mass. with Department of New York (preliminary term
policies), (M. M. D.), 4255-4256
premiums :
scale of (R. M.), 1S03, 4232-4233; elevation of scale of (R. M.), 4233
reserve of (R. M.), 4231-4232
syndicate participations of (H. K. S.), 4249
Banks, relation of, to R. R. syndicates and insurance companies (F. C),
488-490
Bannard (Pres. of N. Y. Trust Co.) :
dealings of, with N. Y. Life (E. D. R.), 361, 363, 365; responsibility of,
in N. Y. Security & Trust Co. syndicate (E. D. R.), 538, 539; connec-
tion of, with New Orleans Traction securities (W. S. F.), 2994
Banta, T. M. (ca.shier of N. Y. Life) :
affidavit of, verified Dec. 28, 189G (ex. 973), 4753; testimony of, 2958-
296S ; on connection of cashier's department with treasurer's, and ac-
counting for cash, 2958-2965 ; on bis ignorance of accounts and pay-
ments not ou record, 2960-21308 ; on change of cashier's dept., since
Beer's administration, 2961-2962 ; on Texas affidavits regarding cani-
paign contributions, 2961 ; on bis ignorance regarding campaign con-
tributions, 296-2965 ; on Hanover Bank Office Account, 2961 ; on
knowledge of cashier's department of syndicate transactions, 2961-29G.'J ;
on his ignorance concerning Sloane bills (T. M. B.), 2962-2963; ou sub-
stitution in vault of check of Central Bank for securities during taxa-
tion, 2965-2967; ou his salary, 2968
Barnes, William :
opposition of, to Brackett Bill (R. A. McC), 1477-1482; testimony of,
2025-2040 ; on his connection with insurance companies in general,
2026; ou his connection with Equitable, Mutual, and N. Y. Life, 2026-
2032; on his plan for insuring workingmen, 2026-2032; on his coimec-
tion with bill to repeal section 56 of insurance law, 2029-2032, 2040;
statement of, as superintendent for life insurance companies (ex. 345),
2037-2038 ; on his views on section 56 of insurance law, 2032-2037
Barr, Luke & Moore :
participation of, in Northern Pacific-Great Northern (G. 'W. P.), 693
Harrington, E. :
employee of Eqult. Life, appearance of, in Atlantic Coast Line R. R. syn-
dicate transaction (H. B. W.), 866-868
Bartholomew, G. W. :
commission paid to, by New York Life (M. M.), 678; participation of, in
Missouri Pacific 5's (G. 'W. P.), 680-681
456 Index — Witnesses and Exhibits.
Batclieller, G. S. :
relations of, with Equit. (S. S. McC), 2486-2487; statement of Mr.
Hughes concerning connection of, with Mut. Life, while Judge in
Egypt, 2973
Baylies, E. L. :
testimony of, 4249-4251 ; on contributions from insurance companies to
Allied Real Estate interests bill, 4225-4228; on contributions from cor-
porations other than insurance companies, to Allied Real Estate inter-
ests, 4228, 4249-4250
Beck, Hon. James M. (counsel for Mutual Life) :
request of, for cross-examination, 40 ; on N. T. commissions, 1268, 1269,
1270, 1271; on assets of Mut. Life, 1301, 1302, 1303; on salaries, Mut.
Life, 1370 ; on subpoena of Mr. Fields, 1371 ; on rates of commissions
paid to general agents in Mut. Life, 1385; on competition in agency
dept., in city of N. Y., 1390; on- relations of increased salary of Rich-
ard A. McCurdy to Increased assets of Mut. Life, 1397, 1398, 1309; on
comparison, of assets of banks of France, England and Germany, witli
combined assets of Mut. Life, 1406; correction of his statement, of
comparative assets of three European Banks and Mut. Life, 1428; on
increase of Richard A. McCurdy's salary, 1406, 1407, 1408, 1409; on
Mr. Fields' health, 1460-1461 ; attack on investigating committee, 1540-
1544
Beers, W. H. (vice-president of N. Y. Life, 1438-1443, president, 1444-1448) .
salaries of, 214
Belgrade :
statement of cost of N. Y. Life's building in (ex. 242), 1168
Bell, H. F. (president of the Citizens' Trust Co. of Paterson) :
letters to, April 21, 1904, from H. P. Townsley (ex. 747 and 748), 4065
Bell, Hilary:
payments to, for advertising, of money of H. H. Brockway (G. D. E.),
3191, 3194
Bell, T. C. (connected with Metropolitan Agency) :
testimony of, 1315 1319 ; on relations of Mut. Life to 0. H. Raymond &
Co., 1315-1319; on rebate system in Mut. Life, 1318-1319
Bennett mortgage to N. Y. Life: (J. A. McC), 646
Bennett office building:
mortgage of annexed property of, to Equit. Life (J. A. McC), 623
Berkshire Life Ins. Co. of Pittsfield (not examined) :
statement of, 4822-4825 ; documents furnished by, 4822 ; history of, 4822 ;
commissions of, 4824 ; elections of, 4822 ; legal expenses of, 4S'^2 ; sala-
ries of 4822-4824; surplus-apportionment of, 4825; distribution of, 4821
Berlin: statement of cost of N, Y. Life's office building in (ex. 239), 1167
Bethlehem Steel Co., syndic.ite:
participation of Washington Life in, through Harvey, Fisk- & Sons
(J. T.), 4159
Binghamton Beet Sugar Co.: history of (O. M. T.), 3491-3493, 3494
Index — Witnesses and Exhibits. 457
nissell, Evelyn L. (president of Empire Life) :
deatii of (S. W.), 4034
Hlacls, Franis S. :
counsel for Equitable Society in investigation, 8
Blackmailing legislation: J. A. McOall on, 1089
Blair case :
litigation of Prudential Ins. in St. Louis (J. P. D.), 3682-3683
Blair & Co. :
syndicate operations of; Southern Railway notes. Series C, syndicate
(H. R. W.), 878; Wabash, Pittsburg Terminal Railvyay bonds (H. R.
W.), 847; Wabash, Pittsburg Terminal Syn. (S. B. D.), 522-524; West-
ern Pac. syn. (S. B. D.), 519; Wheeling & Lalie Erie Syn. (S. B. D.),
519
Bliss, Cornelius N :
payment to, by N. Y. Life on account of Rep. Nat. Com. campaign (G. W.
P.), 5S2-583; campaign eheclj to, from N. Y. Life (Dec. 30, 1904), (ex.
78), 582, 588
Block, Sullivan Sc Erd:
letter from, to Prov. Savings Life, March 25, 1905, (ex. 712), 3933
Blood, James H. :
counsel employed by Prudential Insurance Co. (J. F. D.), 3672
Boardman, Piatt, & Soley :
voucher for payment to, by Mutual Reserve of $10,000 (ex. 610), 3320
Bohn Agency :
advances to (1905) from Equit. (G. E. T.), 2627-2628
Bohn, & J. Bohu & Bros. :
statement with regard to combined accounts of, (Frick report), 2636-2637
Bond Conversion Syndicate, or Preferred Stock Retirement Syndicate:
share in, received by N. Y. Life in final settlement of profits in TJ. S.
Steel transaction (G. W. P.), 2888, 2890-2892
Boswell, Wm. :
advertisement of, on Pure Life Insurance (C. M. T.), 3426; correspond-
ence of, with Sec. Mut Life Ins. Co. (ex. 994), 4758
Boswell and Buckley:
advance to, by Prov. Savings Life, for purchase of stock (E. W. S.),
3859-3861 ; agreement between, and E. W. Scott, regarding transfer of
shares of Prov. Savings Life (E. W. S.). 3867
Boston City joint account :
participation of Farson, Beach & Co. in (G. W. P.), 602-607, 727
Bouker :
identity of (J. A. N.), 2502
Bovee, O. N. :
counsel for Metropolitan, 9
Bowles :
movement of, against Mut. Life (G. T, D.), 1322-1326; R. A. McCurdy
on movement of, 1495-1508 ; copy of letter from Mut. Life, 1499
458 Index ^Witnesses and Exhibits.
Brackett, Senator:
bill of, liDiiting insurance (R. A. McC,). .1477-1487; (E. McC), 1824-1825
Bramwell :
appraisal by, of Depew Improvement Co. (C. M. D.), (ex. 380), 2425-2427
Breek :
ill charge of correspondence bureau of Mut. Life (W. S' S.), 1764
Bremmer, W. D. (assistant treasurer of Equitable) :
election of, as trustee of Equitable stock (W. A.), 124; voucher to, from
Equit. Life (S. S. McC), 2493
Brice, Wilson B. (director and assistant counsel of Life Association) :
connection of, with Life Association (H. P. T.), 4068; with B. Van
Schaick (H. P. T.), 4068-4070
loan to, and security for, by H. P. Townsley of $10,000 (H, P. T.), 4068
payment by, of $10,000 loan to H. P. Townsley, (H. P. T.), 4068
Bright, Osborne:
responsibility of, in N. Y. Security & Trust Co. Syndicate (E. D. R.), 539
Broekway, H. H. (director of Mut. Reserve) :
connection, of, with Mut. Res. (G. D. B.), 3182-3183, and list of payments
to, by Mutual Reserve (ex. 611), 3320-3321
testimony of, 3183-3184 ; on his salary and services, 3182, 3185-3180, 3188-
3190; on his fees,- 3184-3185 ; on his gift of moaey to P. H, Burnham,
3185-3191 ; testimony of Burnham concerning, in examination of in-
surance department (R. H. H.), 4028-4529
lirooklyn Wharf and Warehouse Co. :
capitalization of (J. T.), 1625; history of, between 1895 and 1901 (J. T.),
1629-1630; history of reorganization of, in 1901 (J. T.), 1629-1631; his-
tory of, subsequent to 1901 (J. T.), 1631-1634; appraisal of properties
of (J. T.), 1632-1633; relations of, to Mut. Life, 564-565
Brophy, Rev. G., of IloUoway, Hastings Co., Ontario, Canada :
letter from, to Investigating Committee (ex. 969), 4751; letters regard-
ing policies of, to Investigating Committee from- Equit, N. Y., and Mut.
Life (exs. 970-972), 4752
Brown, Gerald R. (head of Equit. Life's bond and mortgage department) :
testimony of. 2731-2744, 2825-2835 ; on real estate holdings of Equit. Life,
2731-2744; on supervision of payments to janitor, 2739-2740, 2743-2744;
on rentals in Equit. Building, 2825-2820; on Equitable's transaction
concerning King Houses, 2826-2830; on reduction in book value of
Equit. Life's estate, 2830; on fire insurnnce of Equitable and connec-
tion of J. H. Hyde with Continental. 2830-2833, 2835; on bis knowl-
edge concerning lease to Mercantile Safe Deposit Co., 2833-2834; on
his commission on premium of insurance. 2833
Brown, Stewart:
loan to, by Prov. Savings Life. 3867, U021, 4026-4028; purchase from and
sale to, of 62 shares of North American Trust Company's stock, by
Prov. Savings Life (E. W. S.). 4021
Bro^vnell, Charles B. ■.
ti'ansfer to. of interest In Prov. Savixvgs Life by Mr. Hadley %ad subse-
quent transfer from, to E. A. Dunham (E. W. S.), 4022
Index — Witnesses and Exhibits. 459
Buckley, Wm. H. :
sjervices of, to Germania in lien bill (K. C. t.), 42M-420a; payment to, by
Metr. Life (H. F.), 2189; employment of, by N. Y. Life (J. A. UcO.),
1142; counsel retained by Prov. Life in Albany (E. W. S.), 3857-;i859;
connection of, with Prussian Life (F. H.), 4263; connection of, with
insurance department (B. W. S.), 3857-3858; (F. H.), 4260, 4262-4263
Buckner. T. A. (vice-president of N. Y. Life) :
salaries of (1898-1905), 215; testimony of, 735-745, 748-762, 762-792, 968-
993 ; on Nylic system, 7-1S-762, 763 ; information furnished by, concern-
ing salaries and Nylic expenditure (ex. 506), 3001; correction of his
own testimony of Sept. 21, on bonuses to agency directors. Home office
agency expenses, salary of agency directors, Nylic for agents, 968-970 ;
on disbursements in N. Y. Life, 781-787 ; on expense ratios of N. Y.
Life, 983-985 ; on foreign expenses of N. Y. Life, 985-992 ; on contracts
with agents at home and abroad, 788-791
Buckner, Walter (superintendent of agency in Paris office of N. Y. Life) :
(T. A. B.), 987
Buda-Pesth :
statement of cost of N. Y. Life's building in (ex. 243), 1168
Budd (ex-Gdv. of California) :
examination by, of Equitable (S. S. McC), 2495-2507
Buffalo Branch office of N. Y. Life :
advances to agents (ex. 209), 976-979; contracts with agents (T. A. B.),
974-980; ledger balances of, for Dec., 1903 (ex. 209), 976-980
Burnham, F. A. (president of Met. Reserve) :
number of proxies cast by, at meeting deciding on changed policies
(1901), (G. D. E.), 2788; connection of, with Mut. Res. before his presi-
dency (G. D. E.), 2803 ; creation of contingent fund for expenditures or
(G.D.E.), 2804; use made by, of contingent fund (C.D.E.), 3269-3271:
increase in salary of. to take place of contingent fund (G. D. E.), 2805-
2806; salaries of (G. D. E.), 3023; testimony of physician regarding
ability of, to appear before committee, 3164-3167 ; payment to, of $6,000
from H. H. Brocliway (H. H. B.), 3186-3191, (G. D. E.), 3192.^195;
charges against, iu f'afterson case (G. D. E.), 3197; charges against,
for mismanagement (G. D. E.), 3222; letter of, to Mr. Stevenson on
Moss commissions oa transfer 6usiness (ex. 580), 324G; order of, to
Mr. Moss regarding commissions on transfer business (ex. 581), 3246;
advancement by, of £15,000 to Mr. Moss (G. D. E.), 3252-3254; fric-
tion of, with J. D. Wells (G. D. E.), 3254-3255; alleged payments of
$40,000 to Ins. Dept. (G. D. E.), 32G8, 3274; relations of, to G. Storm
(G. D. B.), 3288-3289; opiiiion of L. F. Payn regarding, 4505-4507, 4513;
cross-examination of, by N. Y. Branch of insurance department (U. H.
H.). 4528-4530
Burnham, George, Jr. (2d vice-president of Mutual Reserve) :
salaries of, (G. E. D.), 3023-3024
Butler, ex-senator of Mass. :
payment to, by Metr. Life (H. F.), 2189
460 Index — Witnesses and Exhibits.
Butler, George P., & Brothers:
relations of, to Wabash R. R. Co., syn. (S. B. D.), 519; to AVestern Mary-
land R. R. Syndicate (S. B. D.), 526; (H. R. W.), 809, 870; profits of,
in sale of L. S. & M. S. R. R. R. stock to Metr. Life (H. F.), 3799-3801
Butts, William A. (paymaster and custodian of Mut. Reserve) :
testimony of, 3365-3366, 3372-b373
O
Cable, William A. :
Identity of (H. P. T.), 4069
Cady, J. Rider:
counsel retained by L. F. Payn, (L. F. P.), 4515; counsel of, for Prus-
sian companies {L. F. P.), 4517, (J. R. C), 4520
interview of, vrilh McCurdy regarding admission of Prussiaur companies
(L. F. P.) 4517-4519
testimony of (Dec. 28) ; on his connection with question of admitting
Prussian companies, 4520-4523
Cafe Savarin:
organization of (D. M. J.), 2450-2465; directorate of (D. M. X). 2404-
2465; lease to, from Eiiuit. Life (July 19, 1887), (ex. 392), 24r>;'..i;i.54 ;
second lease to, from Equit. Life (May 1, 1888), (ex. 383), 24.55;
agreement of Equit. Life with, (April 7, 1891), 2456; indenture between
Equit. Life, Mercantile Safe Deposit Co., and Cafe Savarin (D. M J ),
2459 ; relations of, with Lawyers' Club and Equitable Life (D. M, J. j ,
2460-2465
Camp, C, W. (secretary of Mut. Res.) :
salaries of, (G. D. "E.), 3024
testimony of, (Sept. 6), 102-112
Campaign Contributions :
see legal and legislative expenses.
Campbell, Charles T. :
connection of Fidelity Trust with estate of (J. F. D.), 3697
Canadian Insurance Law :
reduction of policies (1904) (G. D. E.), 3085; act affecting Mutual Re
serve (1904), (G. D. E.), 3147-3149; advantages to policyholders undai
option in clause C, as compared with those in the U. S.. 3307-3308
Canadian Life, of Quebec :
acquired by Metr. Life (H. F.), 2191-2195
Canadian Northern :
joint account of, in N. Y. Life (G. W. P.), and (ex, 134), 704
Canadian Pae. Railway :
relations of, with Minneapolis, St. Paul and S. S. Marie Syn, (S. B. D.),
521
Capron, George O. (agent of Life Association) :
connection of, with Life Association (H. P. T.), 4070
rate of compensation to. by Life Association (H. P. T.), 4086
Index — Witnesses and Exhibits. 461
Capi-on, George C. — Continued:
holder of policy No. 2149, used as illustration in circular, (H. P. T.),
4086 ; right of, under terms of his original policy to change it for en-
dowment policy (H. P. T.), 4088; policy in Life Association issued to,
previous to his connection with company (H. P. T.), 40S8
Carlisle (general agent for Mut. Life in Cook Co.) :
commissions of (Mut Life, com. agency dept.), (R. H. McC), .127S-3280
Carnegie Bonds:
list of (E. D. R.), 339
Carpenter, Woi. M. (clerk In Supply Dept. of Mut. Life) :
connection of, with Mut. Life (C. A. N.), 1561-15(52; conne<;tion of, with
Mut Life's house at Albany (M. E. M.), 2004-2005, 2011 ; signature of,
Mut. Life (ex. 277), 1575; voucher with signature of, (Mut. Life),
Jan. 7, 1904 (ex. 280), 1578; salary of, from Mut Life (W. M. C),
1579
testimony of, 1573-1589; on his relations with Mr. Fields, 1573-1574; on
whereabouts of Mr. Fields, 1574-1575 ; on payments to M. E. MuUaney,
1577-1579, ou disbursements of money by M. E. MuUaney, 1584; on his
duties in Albany, 1579-1580 ; on vouchers for house in Albany, 1582-
1583 ; on money for legislation, 1584 ; on his duties, 1587-1588 ; on
sources of money he received from Mut. Life, 1591
Casualty Co. of America :
R. H. McCurdy on, 1285-1286
Central Bond & Realty Co. : see Lawyers' Title Insurance Co.
Central Life, of St Louis: acquired by Metr. Life (H. F.), 2191-2195
Central Nat Bank (Citizens' Central Nat. Bank) :
rate of interest paid by, to N. Y. Life (1904-1905), (B. D. R;), 867; check
of, substituted for N. X. Life securities during taxation (T. M. B.),
2965-2967; loan to, by New York Life of securities for taxation pur-
poses (E. D. R.)r, 2977-2980; payment to, by J. P. Morgan & Co. of
$40,751.39, for N. Y. Life (G. W. P.), 2896; Andrew Hamilton's iio
count with, (ex. 144), 762-703; advances to A. Hamilton and E. E.
McCall, on behalf of N. Y. Life, at different times from 1896 to 1901
(G. W. P.), 2896; deposits of Manhattan Life and rates of interest
with (ex. 907), 4662-4663
Central Nat Bank, and J. P. Morgan & Co. :
notes of A. Hamilton and E. E. McCall taken up by (G. W. P.), (ex.
478-484), 2897, 2898
Central Pac. Railway, 1st Refunding 4's:
statement of joint account in, N. Y. Liife (ex. 126), 700; statement of
2d purchase of, N. Y. Life (ex. 127), 701; (G. W. P.), 700, 701
Central Refunding Syndicate:
participation of Bquit. Life in (H. R. W.), 797, 836-837
Central Trust Co.:
deposits of Mutual Life with (G. G. H.), 4667
Cihamberlain & Gillette (general agents of Mut Life for Texas) :
net profits of (G. T. D.), 1311-1313; loans with U. S. Mortgage & Trust
Co. (G. T. D.), 1321-1322
59
462 Index — Witnesses and Exhibits.
Chatham National Bank:
account of Washington Life with, (J. T.), 4151-4152 •
Chicago & Alton:
joint account transaction (N. T. Life and Goldman, Sachs & Co.), (E.
D. R.), 347-349; F. H. S.). 386-388; (G. W. P.), 681-C84; (ex. 112), 682
Chicago & Alfon Z^i Refunding bonds:
M. M. Mattison on, 682; participation in, by Louis Fitzgerald (G. H. S.),
2540; participation in, by N. Y. Life (J. C), 248-249; participation of
G. H. Squire, Trustee, in (H. G.), 905-919; (G. H. S.), 2540
Chicago, Burlington & Quincy Syndicate:
distribution of allotments in (J. H. H.), 2242-2245, 2248-2257; (G. H. S.),
2543-2547
participation of Equitable Life in, (H. R. W.), 805-806; 849-862; (exs.
168, 169, 170, 171, 172, 173), 850-860; (J. H. H.), 2242-2257; (O. M. D.),
2411-2412, 2415, 2417-2418; syndicate agreement with Equit. Life (ex.
53), 855-858
participation of J. H. Hyde in, (J. H. H.), 2242-2257
participation of J. A. McCallin, (J. A. McC), 1160
object of (H. R. W.), 850-851
participation of Mut. Life In (P. C), 417-420; syndicate agreement of
(ex. 53), 417; (ex. 52, No. 16), 450-452
participation in, by N. Y. Life (J. C), 249-250
^ distinct from C. B. & Q. joint account transaction (B. D. R.), 393
joint account transactions in, of N. Y. Life & W. S. Fanshawe & Co.
(E. D. R.), 391-393
Chicago Central Nat. Bank : see Central Nat. Bank
Chicago Mut. Life Association: n
connection of H. P. Townsley with (H. P. T.), 4052
Chicago & Northwest Syndicate:
participation of Equit. Life in (H. R. W.), 806, 863-866, 872-874; (J. H.
S.), 1021; proceeds of pTofit from, in G. H. Squire trustee account
in (H. G.), 911
M. M. Mattison on, 672, 673-677; participation of G. H. Squire, Trustee,
in, (H. G.), 911
Chicago & Northwest:
joint account transaction (N. L. Life and Goldman, Sachs & Co.), (F. H.
S.), 388-391
Chicago, Rock Island & Pacific 4's:
participation of Equit. Life In (H. R. W.), 796, 835-836; sale of, by Mut.
Life (F. C), 504-505
Chickering, W. H. (attorney of Mut Life in San Francisco) :
payments to, from Equit. Life (S. S. McC), 2495-2497
Childers, J. H. :
examiner of Mutual Reserre, for Dept. of Missouri (G. D. E.), 3273
Child insurance:
attitude of charitable associations toward (H. F.), 3841; statistics show-
ing advantage of (ex. 697), 3844-3845; extent of, in England, U. S.
Index — Witnesses and Exhibits. 463
Child Insurance — Continued:
and Canada (H. F.), 3842-3843; investigation of, and litigation against
in Penn. (H. F.), 3798-3799; average amounts paid, Metr. Life (H. F.),
3845-3846; medical inspection and charges of abuse of cliildren, Metr.
Life (H. F.), 3847-3848
Citizens' Central National Banls : see Central National Bank
Citizens' Life, of Atlantic City: acquired by Metr. Life (H. F.), 2192-2195
Citizens' Trust Co., of Paterson:
bank account of Life Association with (H. P. T,), 4063-4065; rate of
interest paid by, to Life Association, on savings bank account (H. P.
T.), 4063-4064; loan made by, to Townsley and Van Schaick (H. P. T.),
4057-4058 ; collateral for loan, made to Townsley and Van Schaick
(H. P. T.), 4063
City Realty Co.: organization of (W. R. R.), 1693
Claflin, John (director of N. Y. Life) :
testimony of, 217-250 ; on finance and sub-committees, 217, 220 ; on
his connection with other companies than N. Y. Life (J. C), 218; on
debenture bonds, 228-230 ; on holding agreemeats, 234-241 ; on syndi-
cate participations of N. Y. Life, 219-250; on his participation in syn-
dicates (J. C), 241, 242-249; on Atlantic Coast Line, Louisville and
Nashville Purchase money syndicate, 226-237 ; on Japanese Bond Syndi-
cate, 220-222; on Oregon Short Line 4's, 222-223; on Wabash, Pitts-
burg Terminal, 222; knowledge of, of transaction with N. Y. Sec. &
Trust Co. in U. S. Steel (G. W. P.), 2884
Clardy (Jittorney employed by Mutual Reserve in Missouri) : (G. D. E.),
3273
Clark, W. A.: loan to, from U. S. Life (J. P. M.), 4594
Clarke:
complaints of, concerning his policy in Mut. Life, answered by E. McClin-
tock, 1814-1816
Cleveland, Grover:
Trustee of Equitable Life Assurance Society (W. A.), 129-1.80; letter
from, explaining plans of trustees of Equitable Life (ex. 155), 792
Cleveland, Canton & Southern Syndicate:
participation of Equit. Life in (H. R. W.), 797-798, 838
Cluuie, Andrew J. :
operations of, against Equit. Life (S. S. McC), 2494-2502; superintendent
* of insurance in California (G. D. E.). 3199-3202
Clunie, Thomas J. :
counsel for Mutual Reserve in Califoruia, 3199-3202
Cofield (general agent for Sec. Mut. in Georgia) :
contract of, with Sec. Mut. (C. M. T.), 3500-3501
Coggeshall, Edwin W. :
interview of, with R. A. McCurdy regarding Lawyers' Mortgage Co. stock
(H. M.), 4566-4567; testimony of, 4370-4376; on increase of stock of
464: Index — Witnesses and Exhibits.
Coggeshall, Edwin W. — Continued :
Lawyers' Mortgage Ins. Co., 4370-4372; on increase of stock of Law-
yers' Title ]ns. Co., 4372-4373; on non-affiliation of corporation witb
Equitable, 4374-4375
Colby, Bainbridge:
presence 6t. at interview between Hyde and Odell (B. H. H.), 2352; Inter-
view of, with Gov. Odell and J. H. Hyde (B. B. O. Jr.), 2.394-2396
Colonial Life Ins. Co. of America, of Jersey City (not examined) :
statement of, 4551-4552; "documents fui-nished by, 4551 ; bank balances of,
4552 ; Campaign contributions of, 4552 ; present capital stock of, 4551 ;
commissions of, 4552; industrial business of, 4552; insurance of, in
force, Dec. 31, 1904, 4552; investfBenfs of, 4552; legislative payments
of, 4552 ; loans of, on collateral, 4551 ; syndicate participations of, 4551
Colvin: identity of (J. A. N.), 291
Coman, John H. : connection of, with Bquit (T. C. P.), 2573
Coman, Thomas:
testimony of, 2568-2573, 25S3-25S6; on his services to Bquit. Life, 2569-
2573 ; on his salaries in Equit. Life, 2570-2571 ; on his increase of salary
(1902), 2586; on his payments from Bquit outside of salary, 2573;
on his offices under city government, 2568-2569 ; on his services to
Equit. in city departments, 2584-2586; on his work in reducing assess-
ments, 2572-2573; on his voucher of February 4. 1903, for $250, 2583-
2584; on his voucher of $500, March 13, 1903, 2583-2584; on his voucher
of June 22, 1903, for $200, 2583-2584; on Ralph Meyer, 2583-2584; ou
Captain Thorppson, 2584
Commercial Trust Co. :
participation of, in R. R. Securities Co., Syndicate (H. R. W.), 843
Commissions: see individual companies.
Connecticut General Life Ins. Co. (not examined) :
statement of, 4854-4857 ; documents furnished by, 4854 ; history and ad-
ministration of, 4854 ; rates of interest on mean assets, 469 ; business of,
in force, 4856; political campaign contributions, 4855; commissions of,
4857; deposits of, 4855; board of directors, duties of, 4855; mode of
apportioning dividends, 4855 ; deferred dividends of, 4855 ; investments
of, 4855 ; legal expenses of, 4855 ; legislative payments of, 4855 ; loans
of, on collateral, 4855; rebates: on taxes (J. J. M.), 4541; to G. D.
Eldridge (G. D. E.), 3294-3295; salaries of, 4855; syndicate participsf-
tions of, 4855
Connecticut Mutual Life Ins. Co., of Hartford:
statement by, 4825-4829 ; documents ftirnlshed by, 4825 ; history of, 4826 ;
organization and governtnent (D. H. W.), 165-166
rates of interest on mean assets (F. C), 469; bank balances of, 4826;
agents and their commissions (H. H. W.), 172-173; election of direct-
ors (D. H. W.'), 165; dividends; statement concerning reduction of
(E. McC), 1816-1817; mode of apportioning, 4826; annual dividend system
(J. A. McC), 1163; ratio of loading to expenses (W. A. M.), 4826-4828;
investments of, 4826; legal expenses of, 4826; loans of, on collateral.
Index — Witnesses and Exhioits. 465
Continental Mutual Lffe Ins. Co. — Continued:
482P; officers and their duties (H. H. W.), 169-171; character of poli-
cies of, 4826; maximum annual risk on single life, 4826; rate on ten-
years time contract non-participating policies (H. M.), 3974-3975
policyholders: number of (D. H. W.), 166; in N. Y. (D. H. W.), 166-167;
voting rights of (D. H. W.), 165; participation of, in elections (D. H.
W.), 166-167; publicity of lists of (D. H. W.), 165
proxies; practice regarding (D. H. W.), 165-169; number of, held (D. H.
W.), 167
rebates on taxes (J. J. M.), 4541 ; receipts and disbursements (H. H. W.)„
171-172.; salaries of officers (H. H. W.), 170-171
Continental Coal Syndicate:
participation in, by N. Y. Life (E. D. R.), 256, 259-260, 267
Continental 'Fire Insurance Co. :
relationgj of, with Equitable Life (J. H. H.), 2323-2324; (G. R. B.), 2832-
2833
Continental Trust Co. :
relations of, with N. Y. Security & Trust Co. (E. D. R.), 274-276; absorp-
tion of, with N. Y. Securiiy & Trust Co. (E. D. R.), 370; sale by, of
Provident Savings stock (E. W. S.), 3625-8626; loan to E. R. Hadley
on Prov. Savings stock in (B. W. S.), 3622
Copyrighting insurance reports ;
copyright of Miller examination by Mut Life (W. S. M.), 2815-2816
Cornell, W. T. (president of Equit Trust Co.) :
letter from, to G. H. Squire (H. R. W.), 920
Corporation Liquidation Co. :
formation of (W. W. R.). 1688-1690
Counsel :
for Equitable Life, 9 ; foif Investigating Committee, 6, 8 ; for Metropolitan
Life, 9; for Mut. Life, 8-9; for Mutual Reserve Life, 9; for N. Y.
Life, 9
Cow«y: connection of, with state insurance department (F. H.), 4261
Cox, Mark T. :
connection of, with Fidelity Trust, Public Service Corporation and Rogers,
Winthrop & Co. (J. F. D.), 3789
Craig, James M. (actuary of Metr. Life) :
testimony of, 1967-2003, 2041-2055, 2163-2167; on his duties as actuary,
1967 ; on business expenses of Metr. as compared with other companies,
2046-2049 ; on distribution of dividends,. 1968-1973 ; on mortality rates
in different departments and medical examinations, 1968-1973 ; on mor-
tality tables of Metr. Life, 1979-1981; on his Impaired Life Table
(J. M. C), 1979; on reasons for limiting payments on paid up policies
to death within expectation of life, 1994-1995.; on endowment and paid
up policies of Metr. Life, 2041-2045 ; on endowment and whole life poli-
cies, 2052-2055; on infantile, whole life, and endowment policies, 1997-
1999, 2000-2001 ; on persistence in insurance in infantile policies, 1995-
1997; on reasons for endowment periods fixed on infantile policies,
i66 Index — Witnesses and Exhibits.
Oraig, James M. — Continued :
1992-1994 ; on reasons for fixing endowment period at a^e 79, 1989-1992 ;
on surrender of participating policies in diflferent departments, 1967-
1969; on gains from surrendered and lapsed policies, 2001-2003; on
valuation of policies and premiums,' in special class, 1974-1979 ; on valu-
ation of policies by N. Y. and Mass. Departments, 1982-1988 ; on load-
ing on premiums of Metr., 2045-2046, 2050-2051; on premiums on in-
creasing life and endowment and on whole life policies, 1992 ; on valua-
tion of premiums and policies, in special class, 1974-1979 ; on compari-
son of net premiums in industrial and ordinary department, 2051-2052 ;
on reduction in insurance benefits, 1988-1989; on duration of policies
and lapsed policies, 2163-2167
Crane & Gail: suit of, against Sec. Mut. (C. M. T.), 3450-3453
Cravath :
presence of, at conversations between Ryan and Harriman (T. F. R.),
2645-3652; (E. H. H.), 3905; interview of, with E. H. Harriman at
Metr. Club (E. H. H.), 3904; crisis in life insurance of 1870, et seq.,
J. A. McCall on, 1084-1086
Cromwell, Frederic (treasurer of Mut. Life) :
letter to. from Wm. Babcoek (ex. 66), 500; letter to, from (J. G. Haven,
regarding purchase of Lawyers Mort. Ins. Co. stock (ex. 865, 4550-
4551 ; receipt of payment by, to Guaranty Trust Co. for Lawyers Mort
Co. stock (ex. 866), 4568-4569
testimony of, 149-164, 182-212, 397-411, 41^4-456, 457-473, 488-507, 4034-
4574; on his connection with companies other than the Mut. Life, 150,
160, 163, 206; on relations of insurance companies to banks and trust
companies, 240-187, 189, 443-445, 490-504; on Bank of California, 208-
210; on relations of Mut. Life to Bank of California, 500-502; on rela-
tions of Mut. Life with the National Bank of Commerce (Bank bal-
ances) 457-463; on trust companies, 195-197; on price of his stock in
Guarantee Trust Co., 210-211, and in U. S. Mortgage and Trust Co. (F.
C), 230; on U. S. Mortgage and Trust Co., 206-208; on relation of
Mut. Life to Trust Co.'s, 463-408; on relations of Mut. Life to U. S.
Mortgage & Trust Co., 502-504; on bank balances of Mut. Life (Mor-
ristown Trust Guaranty Trust), 495-497; on the relations of Railroad
Syndicates to baiiks, and ins. cos., 488-490 ; on collateral trust bonds,
190-191 ; on finance and sub-committees of Mut. Life, 200-202 ; on non-
ledger securities, Mut. Life, 455-456; on joint account transactions,
Mut. Life, 454-455 ; on disbursements of Mut. Life, 504-506 ; on Syndi-
cate practice, 3 89-1 97; on Syndicate agreements, 205-206; on the ad-
vantages of Syndicates, 398-400; on Syndicate profits. 415-417; on Syn-
dicate participations of Mut. Life ; Topeka, and Santa Fe convertible
bonds, 203, 436-438; on Atlantic Coast Line Syndicates, 203-204; on
Chicago, Burlington & Quincy purchase, 450-452-457; on Cuban Bond
Syndicate, 182-184, 421-426; on Japanese Syndicate, 197-203, 442-450,
454-455; on Missouri Pacific 4's transactions, 490-495; on Navigation
Syndicate, 415; on Oregon Short Line, 419-420, (ex. 55), 439-442; on
Index — Witnesses and Exhibits. 467
Cromwell, Frederic — Continued :
Penn. R. R. transactions, 425-431, (ex. 50), 438-439; on Southern Pacific
Bond transactions, 431-433; on Tbird Avenue R. R. Bonds, 452-454;
on U. S. of Mexico Bonds transaction, 433-436; list of his Syndicate
participations (ex. 51), 404-406; on his individual Syndicate participa-
tions (ex. 55), 421; Atchison, Topeka & Santa Fe (ex. 55), 436-438;
Chicago, B. & Q. purchase, 419, 451-452; Cuban Bond Syndicate, 402,
404, 405, 408, 414-415, 420-425, 430; Jap bonds (F. O.) 447, 449, 450,
454 ; Navigation Syndicate, 415 ; Oregon Short Line 4's, 438.-442 ; Penn.
R. R. transaction, 425, 430, 437; profits in Southern Pac. bonds, 436;
from Third Avenue R. R. bonds, 452-453; U. S. of Mexico bonds, 434,
436 ; on participation of officers of Mut. Life in operations where com-
pany is interested, 4570-4572 ; on his knowledge of, and connection with
Lawyers' Mortgage Ins. Co.'s stock transaction, 4567-4572 ; on proposed
reduction of expenses in Mut. Life, 4572-4574; on his efforts to locate
A. C. Fields (F. C), 4574
Cromwell, Seymour L. (son of F. Cromwell) :
participation of in Cuban Bond syndicate (F. C), 405-406
Cuban Bond Syndicate:
participators in (F. C), 182-184
participation in, by Mut. Life (F. C), 400-411, 414, (J. T.), 411-414;
(A. D. J.), 558,559; profits of Mut. Life from, (F. C), 421-425
Cummings, George M. (pres. of U. S. Mortgage & Trust Co.) :
testimony of, 66-68
Cunningham, J. J. (clerk in N. Y. Ins. Dept.) :
connection of, with Mr. Fields (W. M. C.),.1589, 1590
testimony of, 1516-1523; on his relations with Andrew C. Fields, 1517-
1523
Cutler, C. W.:
appraisal by, Depew Improvement Co. (ex. 381), 2427
D
Daniels: — dismissal of, from Manhattan Life agency (H. B. S.), 4664
Davis, Annie:
identity of (J. A. II.), 3368; payment to, for $4,000 (J. A. H.), 1897,
3369
Dawson, Miles M. (consulting actuary) :
testimony of, on profits from real estate transactions and securities of
Prov. Sav. Life, 4028-4032; on financial statement of Prov. Savings
Life, 4416-4417 ; on net earnings of Bankers' Life, 4254 ; on coniparativt-
valuation of Bankers' Life policies in Mass. and N. X., and the Dewey
Law, 4255-4256; on lapses and restorations of Washington Life, 4390-
4392; on premiums and payments to policyholders of Mut. Ben., 4417;
on estimatefl and actual deferred dividends of U. S. Life (ex. 887),
4618-4619 ; on correction of comparative tables of estimates and actual
results furnished by Equitable (ex. 920), 4721-4723; identification by
of ex. 954, 4T40-4741; on actual results and illustrated results of poli
468 Index — Witnesses and Exhibits.
Dawson, Miles M. — Continued:
cles in N. Y. Life, 4750 ; on difference in settlement of Brophy policies
by Equit, N. Y., and Mut. Life, 4752-4753; on gain and loss exiiibit
showing policies within their first year in 1904 in companies doing
business In the State of N. Y. (ex. 986), 4756; on refusal of Life As-
sociation to furnish information for gain and loss exhibit, 4756; on
failure of State Life Ins. Co. of Indiana to reply to his request for in-
formation for gain and loss exhibit, 4756 ; identification by, of ex. 101ft,
1011, 1012, 1013, 1014, 1015, pp. 4769-4771
Dawson's select and ultimate method of valuation:
discussion of (E. McC), 1916-1927
Deal, Edgar (broker) :
purchase from, of Lawyers' Title Ins. Co. stock by Williamson &_Squire
for Equit (G. H. S., Jr.), 2335-2836
Deeming :
application of, to Ins. Dept. for suit of accounting against Mutual Re-
serve (G. D. E.), 3205
Dehler, Max :
connection of, with examination of Mutual Reserve by Ins. Dept. of
Iowa (G. D. E.), 3270; bills of, for examination of Mutual Reserve
(ex. 484, 485), 3271
Dempsey, Henry (cashier of Citizens' Central Bank) :
testimony of, on A. Hivnilton's account with Citizens Bank, 762
Depew, C. M. :
connection of, with W. S. Manning and Graham bill (W. S. M.), 2819-
2820; letter to, from J. A. Nichols, regarding Manning (J. A. N.),
2558-2560; participation of, in C. B. & Q. purchase (H. B. W.), 849
testimony of, 2408, 2437, 2508; on his connection with Equit., 2408; on
his services as counsel to Equit., 2418-2423 ; on amount received by him
from Equit., 2421-2422; on his stock in Equit, 2435; denial by, of
knowledge of Squire, Hartley, Alexander, No. 3, and Alexander and
Jordan accounts, 2408; on campaign contributions of Equit. Life and
other societies, and propriety of same, 2408, 2409 ; on decision of Equit
Life regarding participation of officers in syndicates, 2409; on actioii
of executive committee regarding syndicates, 2413; on syndicate
participations in which he was interested, C. B. & Q., 2411 ; Penn.
Coal, 2411 ; Oregon Short Line, 2411, 2413 ; Pittsburg and Toledo, 2412 ;
International Merc. Marine, 2412 ; Union Pac, 1st 4's, 2412 ; on method
of allotments in syndicates, 2412-1414 ; on participation of Equit in C.
B. & Q. syndicate, 2415 ; on element of risk in syndicates, 2415-2416 ; on
syndicates Itor which he was called on for money, 2417; on participa-
tion of Equit., in Penn. Coal syndicate, 2417-2418 ; denial by, of knowl-
edge of work of Fields and Hamilton, 2422-2423, 2424; denial by, of ac-
quaintance with legislative interests of Equit., 2423-2424, 2425 ; denial
by, of community of interest between R. R. companies and insurance
companies, 2424 ; on loan from Equit Life to Depew Improvement Co.,
2426-2427 ; letter of, to Paul Morton, regarding loan to Depew Improve-
Index — Witnesses and Exhibits. 469
Depew, C. M. — Continued :
ment Co. (ex. 379), 2425-2426; on appraisal of Depew Improvement
Co. by Mr. Bramwell (ex. 380), 2425-2427; on appraisal of Depew Im-
provement Co. by W. P. Cutler (ex. 381), 2427-2428; on origin of his
connection with Depew Improvement Co., 2427-2428 ; on nature of work
of Depew Improvement Co., 2434-2435; denial by, of knowledge of
Equit's practice of loaning at end of year, 2428 ; denial by, of knowl-
edge of loan in his name in Hartley account, 2428 ; oh suggestions made
to him for increasing salary of president and vice-president, and his
justification of same, 2428-2430; denial by, of knowledge of salaries
paid Hyde by subsidiary companies, 2430 ; on his connection with
Hyde's ambassadorial plan, 2430-2431 ; on agreements for compensa-
tion of H. B. Hyde and J. W. Alexander and their widows, 2431-2432 ;
disclaimer of connection with passing of section 87 and 56 of Ins. Law
and views on same, 2433-2434; on regular public audit, 2434, 2437; on
deferred system, 2434 ; on limitation of insurance business. 2436-2437 ;
on relations of J. A. Nichols with Equit. Life, 2509-2510, 2511-2512 ; on
connection of T. D. Husted with Equitable, 2510-2511 ; on payment by
Equit. Life, of $14,166 (1900) to Commissioner of California, 2511
trustee of Equitable stock (W. A.), 117, 122
Depew Improvement Co. :
appraisement of, by Mr. Bramwell (C. M. D. and ex. 380), 2425-2427; by
C. W. Cutler (ex. 381), 2427-2428
location of lands of (C. M. D.), 2435
loan to, from Equit. and letter fex. 379), regarding (0. M. D.), 2425-
2428
nature of work of (0. M. D.), 2434-2435
Desbacker, David H. (agent of N. T. Life) :
contract of N. Y. Life with (ex. 208), 975-976, 978-979
Deutseher Bank:,
connection of, with Northern Pac. Syndicate (H. R. W.), 795
Devlin, E. I. :
testimony of, 1072-1077, 1167, 1182- on cost of, and income from N. Y.
Life'o real estate in Paris, 1072-1077; on real estate property of N.
Y. Life, 1167-1182
C>exter, George T. (supt of Mut. Life, domestic agency dept.) : __
responsibility of, In contract of 1905, with C. H. Raymond (R. H. McC),
1258
testimony of, 1308-1316, 1319-1322, 1324-1326; on agency contract and
profits of Chamberlain and Gillette, 1308-1313 ; on profits of Raymond
and Co., 1313-1314 ; on policy of Mut. Life regarding profits of agencies,
1313-1316; on policy of Mut. Life, regarding C. H. Raymond & Co.,
1316 ; on advances to agents in Mut. Life, 1319-1321 ; on Gillette loans
with TJ. S. Mortgage & Trust Co., 1321-1322 ; on loan of Fleming Bros,
with TJ. S. Mortgage & Trust Co., 1322; on practice of Mut. Life in
loaning upon policies, 1322 ; on policy of Mut. Life on limit upon risks,
1322-1323 ; on Bowles movement, 1324-1326
470 Index — Witnesses and Exhibits.
Dickinson, David S. (actuary of Sec. Mut.) :
testimony of, 3505-3532; 3537-8538; on lien and premiums on exehani-re
policy, 3505-3511; on exchange of old for new policies in Sec. Mut.
3505-3511, 3512-3513 ; on privileges of holders of old assessment policies,
3512-3519; on Cross policy, 3515-3518; on provisions for surplus in
Security Mut, 3519-3532; on loading of premiums, 3520-3523; on dif-
ferent valuation of policies in N. Y. and Mass., 3523-3524 ; on reserve
on stipulated premium policies and ordinary life policies, 3523-3524 ; on
surrender values, 3525-3529; on Costello policy, 3525-3529; on taxes,
3529; on surplus, 3529-3521; on difference In reports to N. Y. and
Mass. departments, 3537-3538
District of Columbia :
regulations regarding, insurance in (W. F. T.), 1199-1200
Discriminative insurance :
prohibition of (section 89, of ins. law rev. 1892), 1087
Dividends to policyholders :
cause for general diminution of, and effect of expenses on (E. McC),
1836-1822; reason for reduction in, in Mut. Life (E. McC), 1856-1861
English system of paying (E. McC), 1831-1832
increase In (ex. 298), due to mortality rate (E. McC), 1861-1862; in Life
Association (H. P. T.), 4081-4082, 4084-4086; in Mut. Life, 1438-1439
1446; table of, in Mut. Life from 1885 to 1905 (R. A. McC), 1444-1445;
on paid up policies, in Mut. Life (E. McC), 1847
advisability of supervision over schedule of, by Insurance department
(H. D. A.), 4476-4477
Dividends, annual :
in Life Association (H. T. T.), 4082, 4084, 408§; in Mut. Life, method of
calculating (E. McC), 1806-1808; basis of calculation of (E. McC),
1838-1846; method of getting interest factors (E. McC), 1878-1882;
method of getting loading factor and amount to which it applies (B.
McC), 1882-1892
Dividends ; deferred :
general discussion: — history of (J. A. McC), 1093 tontine system (J. A.
MeC), 1093-1095; Tontine reports of N. Y. Life to German governme/it
(J. A. McC), 1095-1099; comparison of, with annual (J. A. McC),
1161-1163; arguments against in Frick report, 1787-1189; answer fo
argument against (E. MeC. ), 1789-1790 ; forfeiture of surplus in case
of non-persistence in (E. McC), 1792-1794; feasibility of keei»ing ac-
count of each policy (E. McC), 1829; advantages of, to policyholder
and to company (E. McC), 1831-1834; two ways of dealing with ac-
cumulations on, and practices of Equit, N. Y. Life, Mut. and North-
western regarding (E. McC), 1833, 1835-1836; better mortality rate on
(E. McC), 1900-1902; views of C M. Depew on, 2433; advantages of
(J. G. Van C), 4691-4696
calr-ulation of, in Equitable Life (J. G. Van C), 4098-4715; in Home Life
(G. E. L), 35.55-357:j; in Mut. Life (E. McC), 1801-1806; basis for
calculation of. In Mut.' Life (E. McC), 1838-1846; method of calculat-
Index — Witnesses and Exhibits. 4Y1
Dividends, deferred — Continued :
ing profit factor (E. McC), 1892-1902; in N. T. Life (R. W. W.), 1113;
iu Prov. Savings Life (H. M.), 3949-3951;; comparison of methods of
computing of Nortliwestern, Mut., Equit., N. Y. Life, Penn. Mut, and
Home Life (E. McO.), 1827-1829
Dobbins, Edward L^ (vice-president of Mutual Benefit) : — (E. E. R.), 84
Dodge : — statement of, to W. Alexander concerning prices paid for Equitable
stock, 147
Dolan, J. A. :— duties of, in inspection dept. of N. T. Life (G. W. P.), 746
Dolge, A. L.:— loan to, from Manhattan Life (H. B. S.), 4661
Doremus, Cornelius :
testimony of, 4184-4207, 4210-4218, 4280; on Allied Real Estate Interests'
lien bill, 4188 4190-4191 ; correction by, of his own testimony on Allied
Real Estate Interests' lien bill, 4210-4211 ; on mortgage tax bill, 4190,
4190-4192 ; 4212-4213 ; on rebating, 4196 ; on comparison of foreign and
domestic business of Germania, 4196-4198; on Industrial insurance, of
Germania, 4199-4200 ; on reduction of policies in Oct., 1905, ■^212-4215
Dryden, John F. (president of Prudential Ins. 'Co. of America) :
testimony of, 3653-3721, 3753-3797; on organization and officers of Pru-
dential Ins. Co., 3653-3657 ; on history of his connection with Prudential
Ins. Co., 3656-3657; on connection of Prudential Ins. Co., with Fidelity
Trust Co., 3657-3666; on amount of his stock in Prudential, 36G0; on
connection of Prudential with Public Service Corporation, 3667-3668;
on connection of Prudential Ins. Co. with Union National Bank, 3668-
3669 ; on his directorship in Union Nat. Bank, 3669 ; on his offlcership
In Fidelity Trust, 3669 ; on legal expenses of Prudential Ins., 3671-3684 ;
in syndicate participations of Prudential Insurance, 3684-3685 ; on com-
missions upon insurance, 3685-3687, 3688-3689 ; ou commissions to him
on insurance in Prudential Ins. Co. and Prov. Life and Savings, 3688-
3689; on salaries of officers in Prudential Ins. Co., 3689-3692; on his
salaries (J. F. D.), 3690; on securities, loans and fees of Prudential
Ins. Co., 3693; on stock ownership of Prudential Insurance Co., 3695-
3700; on surplus of Prudential Ins. Co., 3700-3701; ou rates (partici-
pating), on industrial and ordinary policies, 3703-3709; on ratio of
lapses and percentage of revivals, 3709-3713; on amount received by
policyholders in case of lapse, 3713-3717; on additional benefits and
dividends on industrial policies, 3717-3724; correction of testimony ot,
regarding agreement with Mass. Department, 3726-3727 ; correction of
own testimony concerning finance and executive committees, and his
study of insurance from foreign standpoint, 3753-3755 ; on question of
increased benefits to policyholders, 3755; on benefits to poor from in-
surance, 3755-3757; on agents and supervisors and their responsibility
for lapses, 3759-3766; correction of testimony regarding dividends by
Mr. Lindabury, 3760-3767; correction of his own testimony regarding
extent of industrial business, 3767 ; on cause for more favorable rates
in Australia, 3767 ; on charging agents with lapses, 3768-3770 ; on ex-
pense of getting business (agents' commissions) compared to premiums
472 Index — Witnesses and Exhibits.
Dryden, John F. — Continued:
and benefits to insured, 3771-3777; on employment of James Perry,
3778; correction of his own testimony regarding James Perry, 3787;
on real estate of Prudential Life Ins. Co., 3778-2779; on financial
operations of Prudential Ins. with Fidelity Trust, 3731-3787, 3787-3789 ;
on federal supervision of insurance, 3790-3795; on foreign business of
insurance companies, 3795; on question of limitation of insurance,
3795-3796
Dryden, Forrest F. :— salaries of (J. F. D.), 3692
Dry Goods Association :
business of, transferred to Empire Life (S. W.), 4050-4051
Dummy loans, see loans
Duncan, Henry B. :
connection of, with Mut. Life (R. H. IiIcC.), 1275
Dunham, E. A. :
responsibility of, in acquisition of Hadley's stock (B. W. S.), 3618;
payments to, by Pro v. Savings Life, on order of Mr. Hadley (B. W. S.),
38G2-3864; transfer to, of interest in Prov. Savings Life by C. B.
Brownell and subsequent transfer from, to E. W. Scott (B. W. S.),
3864
Dunham (agent of Manhattan Life) :
contracts of company with (ex. 905), 4643-4666
Dut3her P. F. :
connection of, with Mut. Life's house at Albany (M. B. M.), 2010-2011;
vouche* of payment to, from Mut. Life (ex. 339), 2011
Duteher, Silas B. :
joint connection of, with Metr. Life and firm of Duteher & Edminster
(W. E. D.), 2156; loans to, from Metr. Life and rate of interest on
(J. R. H.), 1780-1782; services of, to Metr. Life (J. R. H.), 1781-1782
testimony of, 653-688; on Finance Committee of Metr. 508-510; on his
participation in syndicates, 512, 515, 516; on syndicate participations
of Metr. Life, 512-530 ; on Wheeling & Lake Erie R. R., 514-515 ; on
bank balances of Metr. Life, 530-532; on investments of Metr. Life,
532-533
Duteher & Edminster :
connection of, with fire insurance on mortgages of Metr. Life (J. B. H.),
2108-2110, (W. E.), 2156-2157
B
Eaton, H. A.:
broker selling F. Cromwell's share of Lawyers' Mort Co. stock, (F. C),
4569
Ecker, F. H. (comptroller of Metr. Life) :
early connection of, which Metr. (J. R. H.), 1960-1961
statements of, regarding mortgage on Parker Building, 2196; regard-
ing price paid for property on 24th Street, 2196-2197
testimony of, .119-122, 2138-2156 ; on real estate transactions of Metr.
2138-2156
Index — Witnesses and Exhibits. 473
ISconomlc Life of Wilmington:
industrial business of, acquired by Metr. Life (H. F.), 2191-2195
ISdmister, Willard E. :
testimony of, on fire insurance business of Metr. Life, 2156-2157
Egenolf, Peter (agent of Prudential Ins. Co., with weekly income of over
$500) ; (J. F. D.), 3770-3771
Elbert, W. N. (in charge of real estate matters of the Prov. Savings Life) :
testimony of, 3962-3968, 3997-4000, 4002 ; on profits on sales of Englewood,
Waco and Savannah properties, in 1904, 3963; on 'book value of Savan-
nah property in Prov. Savings Life, 3963 ; on increase of book value of
properties on West 27th and 28th Streets, between 1902 and 1904, 3964-
3966 ; on exchange of West 27th and 28th Street properties for No. 35
Nassau Street, 3967; on properties owned by Prov. Savings Life in
1897, 3997-3998 ; on cost and book value of Waco, Texas, office build-
ing, 3997-3999 ; on exchange of Waco, Texas, property for 432-4 Broad-
way and 80 and 82 Wooster Street, N. T., 3999; on transaction by
which Waco, Texas, property was again returned to Prov. Savings
Life, 3999 ; on market value of real estate of Provident Savings Life,
4002; on method of arriving at book value of real estate owned by
Prov. Savings Life, 4002; on profits on sales of real estate by Prov.
Savings Life in 1904, 4458
Hldridge, George D. (vice-president and actuary of Mutual Reserve) :
testimony of, 2745-2806, 3018-3029, 3065-3078, 3083-3122, 3123-3163,
3168-3182, 3191-3207, 3212-3231, 3239-3321, 3372-3375; on organisation
and early business of Mutual Reserve, 2745-2749 ; on reorganization of
Mut. Reserve and amendment to Insurance Law, 2749-2753; on early
forms of poiicies of Mut. Res., showing assessment rates, increase, etc.,
2755-2777 ; on plan to reduce amount of insurance by lien on outstand-
ing policies, 2777-2796; on complaining letter of policyholder, Aug. 3,
1905, 2788-2790, 2797; explanation of loss in excess of assets over lia-
bilities (1891-1899), 2798-2801; explanation, by of increased expenses
in 1899, 2801-2803; correction of testimony of, regarding comparative
figures of 1891 and 1899, 3018-3019; on contract of Mut. Res. with
E. B. Hayes, 2802-2804; on contingent fund for salary ^nd expendi-
tures of president, 2804-2806; correction of testimony of, regarding
contingent fund of Mut. Res., 3019-3020 ; on salaries of officers of Blut.
Res., 3021.3025 ; on increase in his salary, 2023-3024 ; on reasons for in-
■ creased salaries of Mut. Res., 3099-3101 ; on tyonds and assessments en
policy of David Hall, 3025-3029; on ambiguity in wording of policies
regarding additional payments, 3027-3029; on difCereut classes of poli-
cies of Mut. Res., 3065-3078; on increase on 15-year policies accovdins
to age, 3071-3075; on Mut. Reserve's acquisition of business of other
companies, 3083-3099; on acquisition «f Provincial Prov. Life of
Canada, 3083-3087; on acquisition of Northwestern Life by Mut. Res..
3087-3099; on payment and settlement of claims of Mut. Res., 3106-
3122 ■ on debarment of Mut. Res. from doing business in certain States,
3121-3122; ogx manner of Mut. Res. of dealing with death claims, 3123-
3130; on rates and increase of rates of Mut. Res., 3130-3147; on Mut.
474 Index — Witnesses and Exhibits.
Eldridge, George D. — Continued:
Rps. legislation business in Canada, 3147-3156 ; on determining amount
of surrender values, 3168-3169; on comparative liens on policyholders
in U. S. and Canada, 3168-3171 ; on real estate of Mut. Reserve, 3171-
3178; on commissions to officers and contract with E. B. Harper, 3179-
3182 ; on commissions on policies of officers, 3292-3293 ; on defense made
by Mutual Reserve in Harper suit, 3250-3251 ; on payments under
Harper contract^ 3220; on relation of H. H. Brockway to Mut. Res.,
3182-3183 ; on payments of Mr. Brockway to Mr. Burnham, 3101-3194 ;
on legal expenses of Mutual Reserve, 3194-3207 ; on accounts of Mutual
Reserve with Moss, 3212-3231 ; on excessive payments to M. D. Moss,
3214-3218 ; on commissions and payments to Moss, 3239-3250, 3251-3254 ;
on charges of HofEecker against Burnham, and threatened litigation in
consequence, 3218-3223; on Hoffecker's resignation from Mutual Re-
serve, 3255-3257 ; on examination of Mutual Reserve by Ins. Dept., 3257-
3265 ; on examination of Mutual Reserve by Iowa Ins. Dept, 3270-3272 ;
on alleged payments to Iqs. Dept. of N. Y., 3268-3269, 3274-3275; on
legislation providing for reincorporation and examination of Iviul. Re-
serve in 1902 and 1904, 3275-3280; on preliminary term policies, 3280-
3283 ; on ease of getting insurance business as compared with former
times, 3283-3284; on increase of commissions generally, and decrease
of surplus in Mutual Reserve, 3284-3286; on payments of Mutual Re-
serve to Storm, 3286-3292 ; on his insurance in companies other than
Mutual Reserve, and rebates, 3294-3296; on natural premiums, 3305-
3306 ; on assessment system of insurance, 3306 ; denial by, of payments
to A. Hamilton and A. C. Fields, 3315
Election of Officers :
in N. X. Life (J. C. McC), 75, 76; in Washington Life (J. T.), 4112-4-113,
4115
Election of Directors or Trustees :
participation of employees in, Mutual Benefit (E. E. R.), 83; Mut. (W.
G. O.), 38; N. Y. Life (J. C. McC), 69
practices regarding, Metr. (H. F. and F. H. E.), 93-97; Mut. Ben. (E. E.
R.), 83-84; Mut. Life (R. A. G.), 18-21; (G. M. C), 66-67; N. Y.
Life (J. C. McC.),- 49-58, 69
proportion of proxy votes, Metr. (H. F. and F. H. E.), 94, 96; N. Y.
Life (J. C. McC), 72
Ellerbe, C O. : — counsellor in Missouri (J. R. H.), 2069
Ellerbe, C. P. :— state superintendent of insurance (J. R. H.), 2171
Empire Life :
accumulation in 1901 used to meet death losses in 1902 and 1903 (S. W.),
4043-4044
acquisition of business of other companies; Dry Goods Association (S.
W.), 4050, 4051 ; National Mutual (S. W.), 4035
assesments, on Sanders policy (S. W.), 4047-4048
assets ax iS. W.). 4035-4036
bank aoounts and balances of (S. W.), 4035
Index — Witnesses and Exhibits. 473
Empire Life — Continued :
business of, in New York, Pennsylvania and West Virginia (S. W.).
4037-4038, 4044
circulars; "Pure Life Insurance at Cost" (ex. 736), 4039-4040; mislead-
■ ing statement In circulars of (S. W.). 4042-4044; impossibility of
carrying out provisions made by, in circular (S. W.), 4047
claims department: death claims approved as not paid, and being con-
tested (S. W.), 4036; amount put in and amount paid in 1904 (S. W.),
4051; proportion of contested claims for 1905 (S. W.), 4051; time
witbin vs'hich claims are ordinarily paid (S. W.), 4051; disbursements
of, ill 1904 (S. W.), 4038
employees of (S. W.), 4035
examination of, by New York Department in 1903 (S. W.), 4044
exhibits 569, 570, 571, 572, 578, 574, 575, 576, 577
outstanding insurance, amount of (S. W.), 4037
legal expenses, fees to Townsend & McClelland for representation in
controversy with N. Y. State Ins. Department (S. W.), 4045
liabilities (S. W.), 4036 ; ;
officers of (S. W.), 4034-4035 '" ^1
offices, rent of (S. W.), 4038
organization of; under name of Home Benefit Society, 1881 (S. TV.),
4033; insurance in force at time of organization of, carried on by
rider attached to old policies of Home Benefit (S. W.), 4034; assess-
ment corporation under Article VI. of the Insurance Law (S. W.),
4034
property owned by, at end of 1904 (S. W.), 4039; ownership by of
$5,000 water bonds of N. Y. City (S. W.), 4035; policies, number of,
outstanding (S. W.), 4037; policyholders; complaint on policy on the
life of A. B. Smith, to Investigating Committee (S. W.), 4043-4050;
aftiount paid to widow of A. B. Smith (S. W.), 4051
relations to insurance departments ; exclusion of, from doing business
in Kentucky, New Jersey, Ohio, and other slates (S. W.)., 4044; con-
troversies with New York State Insurance Department in 1903 ( S. W. ) ,
4045 ; criticism of, by Insurance Dept. and retention of McC. to answer
charges (G. D. E.), 3211-3212; supervision exercised over, by Ins. De-
partment of N. Y. (S. W.), 4046; Henaricks on, 4289-4290
reserve of (S. W.), 4037, reserve fund, referred to in circular (S. W.),
4040-4041
salaries of employees (S. W.), 4038; of officers (S. W.), 4038
England (advertising agent) :
relations of, to Mut. Life (C. J. S.), 1749
English actuary tables:
character of (J. A. McC), 1079-1080
English insurance companies:
assets of (E. McC), 1835-1836; methods of paying dividends (E. McC),
1831-1832; (H. M.), 3992-3995
method of, of fixing reserve (H. M.), 3993
method of ascertaining an(J (iistrtbuting surplus (H. M.), 3992-3994
i-Y6 Index — Witnesses and Exhibits.
Eqtiit. Co. of England:
annual dividend system of (J. A. McG.), 1163; returns of, to policy-
holders, 1165
Equitable Life Assurance Society:
accounts; under individual names without knowledge of Finance Com-
mittee (J. H; S.), 1012; in names of employees (G. E. T.)^ 2307-250S ;
J. W. Alexander No. 3 account (H. G.), 905; (M. M.), 2381-2386; (F.
W. J.), 2aj7
Alexander and Jordan account (J, H. H.), 2212, 2216, 2217, 2219
Louis M. Bailey trustee accoant (J. H. H.), 2218-2219; (L. M. B.),
2468-2470 •
"F. Walter account" (C. P. McC), 3058-3060
Marcellus Hartley trustee account (J. H. H.), 2217
J. H. Hyde account (J. H. H.), 2258-2259
G. H. Squire, trustee account (J. H. H.), 2200-2217; and ignorance of
auditor concerning (F. W. J.) ; see under individual name
supervision of (J. H. S.), 1006-1010
actuarial department; calculation of deferred dividends (J. G. Van 0.),
4698-4715, 4719-4721; hypothetical surplus and reserves in calculating
dividends (J. G. Van C), 4704-4710; use of Homans' estimates for 1871,
as basis of dividend calculations (J. G. Van 0.), 4705-4714; hypotheti-
cal ratios used in calculating dividends (Ex. 914), 4707-4709; dis-
crepancies between actual ratios and Homans' estimated ratios (J. G.
Van C), 4710-4714; explanation of difference between Homans' esti-
mated and actual results (J. G. Van C), 4723-4724
advertising department, connection of J. Howard, Jr., with (J. H., Jr.),
2114; advertising method of agency department (G. E. T.), 2009-2G74
agency department; rates of interest on agents accounts (G. B. T.), 2035
agreement with N. Y. Life, in regard to agents (T. A. B.), 974-975, 979-
982
advances to agents (G. E. T.), 2624-2639; to Bohm agency (1905),
(G. B. T.), 2627-2628; to Hayes (G. B. T.), 2627; to Mix (G. E. T.),
2630-2635; to H. J. Powell (G. B. T.), 2627; to Woods (G. B. T.),
2629-2630
Agents' balances (6. E. T.), 2636-2637; (State Superintendent
Hendricks on), 4304-4305
bonus system (G. E. T.), 2610-2612, 2613
commissions and expenses in 1904 (G. E. T.), 2066; statement of im-
proved business, through changes in commissions (G. E. T.), 2640-
2641 ; amounts received by general agents (G. E. T.), 2681-2685
contracts: — with general agents (G. E. T.), 2658-2659; between general
agents and sub agents (G. B. T.), 2669; average return to agents
under (G. E. T.), 2684
expenses of convention of agents (G. B. T.), 2690-2692; Manhattan
lieach convention, 1905 (G. E. T.), 2691; N. Y. Convention, 1905 (G.
E. T.), 2691-2692
Index — Witnesses and Exhibits. 477
Equitable Life Assurance Society — Continued :
agents' profits:— in Chicago (G. E. T.), 2682-2683; of E. A. Woods (G.
E. T.), 26S2-26S3, 2084, 2685-2686
salaries to agents, in Australia (G. L. W.), 2850-2852
Agency and Investment Co., relations of, with, 3327-3351
assets; and expenditures in 1876 and 1905, 14; in 1904 (G. E. T.), 2663.
2664; comparison of, between last five years and previous ten (G. E.
T.), 2666-2609; relation of, to taxes (G. E. T.), 2692-2693
auditing of accounts; by T. D. Jordan (M. M.), 2388-2889; jurisdiction
and inadequate powers of auditor (F. W. J.), 2836-2838; auditing of
accounts of securities, 2837-2838
banking and brokerage dealings ; bank balances in 1904, 4866-4877 ; gen-
eral negotiations with Kuhn, Ix)eb & Co. (J. H. S.), 1014-1020; pro-
portionate share of Kuhn, Loeb & Co. in financial transactions (J. If.
S.), 1050-1051; brolverage business (G. E. T.), 2636
Buffalo oflSce, connection of G. H. Sickles with (G. H. S.), 4729-4730; and
rebates given by him, 4732
campaign and political contributions ; see legislative expenses.
cashier's dept. ; non-ledger check transactions of T. D. Jordan and Mer-
cantile Trust Co. (M. M.), 2382-2386; cash memorandum account and
connection of T. D. Jordan, therewith (M. M.), 2386-2389, non-super-
vision of cash accounts by auditor (F. W. J.), 2836; check on financial
affairs of Co., as regards extraneous accounts, 2838-2839
commissions; general statement (G. E. T.), 2610-2839; rates of in general
(G. E. T.), 2589-2600, 2610-2618, 2623; on 20 payment life and endow-
ment policies (G. E. T.), 2589-2593; on annual dividend policies (G. E.
T.), 2593-2590; (G. E. T.), 2659-2664; on deferred dividend policies (G.
E. T.), 2594-2596; on various kinds of policies (G. E. T.), 2597; on 5
year dividend policies (G. E. T.), 2659; on 4;s income bonds (G. E. T.),
2597; on policies of agents and ofiicers of company (G. E. T.), 2676-
2680; as compared with Washington Life (J. T.),.4]33
commutation of commissions; practice of (G. E. T.), 2635; method of
(A. W. M.), .3005-3006; for G. Tarbell and in general (A. W. M.), 3005-
3008
committees, their members and duties ; on accounts or auditing committee
(W. A.), 145; (J. H. S.), 1007; (J. H. Schiff), 1005-1006, ^by-law 23),
1006; agencies (W. A.), 145; executive (W. A.), 142-144 (see also
under executime) ; finance (W. A.), 141-142 (see alsco under finance) ;
insurance (W. A.), 145
counsel for, in i:^surance Investigation, 8.
directors; list of (Sept. 5, 1905), 136-139; meetings of (W. A.), 141
dividends; comparison of, for 1904 and 1903 (G. E. T.), 2668
dividends, deferred; comparison of computation with other companies
(E. McO.), 1827-1828; system of accumulations on (E. McC), 1830;
method of calculation of (ex. 912), 4698-4699; calculations of, for
policies expiring in 1904 (ex. 913), 4699; experience of: — for year
ending 1905 (ex. 915), 4713-4714; for year ending 1906 (ex. 916),
-1T8 Index — Witnesses and Exhibits.
Equilable Life Assurance Society — Continued:
4714; statement of, for 1904 (ex. 919), 4716
disbursemonts tor advertising, printing, etc., 504 ; for premiums, reserves,
insurance department fees, and licenses, 1904 (G. E. T.), 2G65
employees, memorandum explanatory of agreement of Society with, re-
specting insurance (ex. 924), 26G3
estimates ; comparison of, with actual results of 1873, 1876, 1871, 1885
(ex. 920), 4721-4723
examinations by insurance departments; of Minnesota (S. S. McC),
2503
of Missouri (0. J. S.), 1745
of N. Y. in 1902 (F. H.), 4284-4285; of N. Y. In 1905, testimony taken
at (ex. 31), 146; preliminary report of (ex. 32), 146; F. Hendricks
on, 4306-4009 ; I Vanderpoel on, 4326-4328
executive committee; responsibility of, in distribution of allotments (G.
H. S.), 2541; control of, over investments (J. H. S.), 1001-1002, 1005,
1007; action of, on purchase and sales of securities (H. R. W.), 816-
817; responsibility of, in collateral loans, for reduction of balances at
end of year (H. R. W.), 2449-2450; change in system of minutes of
(H. R. W.), 886; action of, on Jap. 4yys syndicate (H. R. W.), 888,
889-890, 891, 900; authorization of Philadelphia, Baltimore & Washing-
ton Bond and L. I. R. R. Refunding Bond transaction (H. R. W.), 823;
resolution of, on purchases of L. T. Ins. Co. stock by officers (J. G.),
2523-2524
exhibits (see exhibits) ; 53, 155-157, 157A, 158A-B, 159, 161, 162, 163,
164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 174A, 175, 176, 178,
179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 192,
193, 194, 194A, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204A, 204B,
205, 206, 206A, 206B, 206C, 20GD, 206E, 207, 218, 219, 220, 221, 222,
223, 224, 225, 226, 227, 228, 229, 280, 231, 232, 233,, 234, 235, 341, 342,
343, 344, 854, 355, 856, 357, 358, 359, 300, 361, 369, 370, 371, 382, 384,
385, 386, 387, 388, 389, 390, 391, 392, 393, 394A, 394B, 395, 396, 397, 398,
399, 40O, 402-407, 408, 409, 409A, 409B, 410, 411, 412, 413, 414, 415, 416,
417, 418, 419, 420, 421, 422, 423, 424, 425, 426, 428, 429, 430, 456, 458,
459, 512, 513, 514, 545, 546, 547, '649, 650, 651, 705, 705A, 706, 707, 708.
862, 921, 931, 932, 983, 934, 985, 936, 937, 938, 989, 940, 942, 943, 944,
945, 946, 947, 948, 949, 950, 951, 952, 953, 960, 970, 985
expenses; amount of, in 1904 and 1899 (G. E. T.), 2665, 2666; apportion-
ment of between participating and non-participating policies (G. E.
T.), 2647-2654; comparison of, between last five years and provisions
ten years (G. E. T.), 2666-2669; ratio of; in Australia (6. T) 3008-
3010, 3012-3014; in U. S. (6. T. W.), 3010
fees; of directors and committees (W. A.), 148-149
finance committee, methods of working of and duties (H. R. W.), 813-
817, ( J. H. S.) 1003-1014, 1015; (section 19 of by-laws concerning)
lOOC-1007; action of, on Union Pac. Pref. stock (H. W. K.), 812-815,
817-819 ; authorization of purchase of St. Louis Terminals from J. P
Morgan & Co. (G. W. P.) 932-934.
Index — Witnesses and Exhihiis. 479
Equitable Life Assurance Society -.— Continued :
fire insurance; practice of regarding (J. H. H.), 2323-2324; on mo>tgagoii
properties (L. M. B.), 2478-2481; (F. B. J.), 2482-2484; testimony on
(G. R. B.), 2830-2832; relations with Continental Fire Insurance Co.
regarding (J. H. H.), 2323-2325; (G. R. B.), 2832-2833
foreign business; Australia; agencies (G. T. W.), 2850-2853; expenses (G.
T. W.), 3008,3010, 3014-3016; percentage of expense to premiums (G.
T. W.), 3012-3013, 3014; rate of commissions in (G. T. W.), 3016; state-
ment of Australian agency (ex. 512), 3008-3010
France: — reserve against (G. T. W.), 2854; percentage of expense tc
premiums (G. T. W.), 3013; statement of French agency (ex. 513),
3011-3012; French legislation (J. H. H.), 2234-2236
Great Britain :"— expenses (G. T. W.), 3011-3014, 3016; percentage of
expense to premiums (G. T. W.), 3011-3012, 3018-3014
extent and course of foreign business (exhibits 458, 459), 2848-2850
cost of business in foreign a-;encies in 1904 (ex. 925), 4728
income; total amount of in 1899 and 1904 (G. E. T.), 2605-2666
investments (W. A.), 142
janitor of Broad St. building: compensation of (G. R. B.), 2739, 7241;
supervision over payments of (G. R. B.), 2739-2740; helpers of (ex.
430), 2743-2744
lapses; non-segregation of, according to years of issue (J. G. Van C. ),
4724-4720; letters and paper of Van Cise regarding (ex. 921, 922), 4726
legal and legislative expenses and measures ; contributions ; for cam-
paign or legislative purposes (J. H. SchifC), 1012, 1013; in 1904 (J. H.
H.), 2219-2220; in 1902 (J. H. H.), 2220-22^1; (C. M. D.), 2408-2410;
(G. B. T.), 2991; to state politics (T. C. P.), 2574-2576
efforts to influence legislation ; by representation in different States
(A. W. M.), 1060, 1064-1066, 1068; by money (A. W. Mayne), 1070-
1071; by co-operaticn with N. Y. Life in Wisconsin (J. A. McC),
1154-1155; in connection with surplus in 1808 (J. A. McC), 1163; in
regard to water rights in Islip (J. McGuinness), 2109-2200; and ced-
ing lands to Islip (J. H. H.), 2234; in France (J. H. H.), 2235-2238;
general methods (G. E. T.), 2511-2515
legal expenses; records of (A. W. M.), 1067-1068; S. S. McCurdy on,
2485-2507 ; bill from G. S. Batchelier, 2486-2487 ; vouchers for 2485-
2492; and for payments to J. F. Pierce, 2491-2492; and to Tracy,
Boardman & Piatt, 2490 ; payments to W. H. Chickering, 2495-2497 ;
retainer to Gov. D. B. Hill in 1900, 2493-2494; checks to T. D.
Husted Oct. 18, 1895, $1,000; Oct. 15, 1896, $1,000, 2605
legislation for mutualization of society and connection of E. H. Harri-
man with (E. H. H.), 3914, 3915-3920
persons employed to influence legislation; Wm. Barnes, Sr. (W. B.,
Sr.), 2026-2032 ii A. O. Fields and memoranda to and from Mr. Jordan
(1898-1902) (ex. 353), 2197; Jan. 10, 1902, Feb. 28, 1905 (ex. 355).
2197-2198; March 10- April 24, 1905 (ex. 356), 2198; J. McGtiinness
(J. McG.), 2197; A. Hamilton (A. W. Mayne) 1062-1061, 1068-1072;
4S0 Index — Witnesses and Exhihita.
Equitable Life Assurance Society — Continued:
his reports on legislation and records of disbursements {A.. W.
Mayne), 1052, 1053, 1057-1060, 1070, 1072; and payments to him (ex.
221), 1053-1060, 1070; Manning (J. A. N.), 2555-2556; J. A. Nichols
(J. A. N.), 2563: (J. A. N.), 2489; B. L. Short and W. T. Thummel
(A. W. Mayne), 1061-1064, 1066-1067
loans; in names of clerks (J. G.), 2439-2444, 2441-2448; In name of T. F.
Williamson (T. F. W.), 2380-2381
to syndicate managers of Cleveland, Canton & Southern (H. R. W.),
837
Depew Imptovement Co. (C. M. D.), 2424-2427, (F. H.), 4295-4303
to E. H. Harriman in May, 1901 (E. H. H.), 2343
to John E. Searles (H. G.), 897-898
on unimproved property (G. R. B.), 2830
loans on collateral: from 1897 to 1904 (J. G.), 2438-2440; In 1904 (J.
G.), 2440-2444; in 1903 (J. G.), 2444; in 1902 (J. G.), 2446-2447; for
purpose of reducing apparent cash balances (J. G.), 2437-2448; trans-
action in, vrlth Kuhn, Loeb & Co. (J. G.), 2439-2444, 2446-2447
mortality experience; in Australia (G. T. W.), 3008-3009; in England
(G. T. W.), 3015
mutualization ; deed for (W. A.), 129-132; prevented by legislation (W.
A.), 133-145; efforts for (E. H. H.), 3915-3920; attitude of Alexander
faction towards (B. H. H.), 3917-3918
officers; commissions on policies of (G. E. T.), 2697-2701
transactions regarding compensation of, 927=929 (exs. 206A, 206B,
206C, 206D, 206E
list of (W. A.), 138-139
connection of, with Mercantile Trust Co. (H. R. W.), 829-831
policies held by, In Society (ex. 923), 4726-4727
powers of (J. H. S.), 1001, 1009-1011; salaries of, see salaries
syndicate participations of, in syndicates managed by Kuhn, Loeb &
Co. (J. H. S.), 1024-1029
transactions of, in Lawyers' Mortgage Co. stock (G. H. S.), 2527-2530
organization and government (W. A.), 114-116, 133, 135 145, 148-149; and
charter, 114-116
payments on executive order (J. H. H.), 2207
policies; analysis of convertible policies (G. E. T.), 2647-2654; classes
of deferred dividend policies (J. G. Van C), 4696-4698; classes of
tontine policies (J. G. Van C), 4697-4698
policyholders, voting rights of, proposed (W. A.), 145
premiums, total of, in 1904 and 1899 (G. E. T.), 2665-2666; ratio of,
to taxes (G. E. T.), 2654^2665
purchasing department, total amount expended by, 1904 (J. McG.), 2465
real estate; receipts in book values and actual cfists of Improved prop-
erty (G. B. B.), 2830-2831; book value, reduction of (G. R. B.), 2830;
and its influence on rate of income (F. W. .T.), 2844
Index — Witnesses and Exhibits. 481
Equitable Life Assurance Society — Continued:
building operations: under name of L. M. Bailey (L. M. B.), 2470-2479;
King model houses (L. M. B.), 2473-2474; (G. R. B.), 2740, 282G-
2830
equalization of values (G. R. B.), 2734-2735
evasion of 5 year limitation on ownership (L. M. B.), 2475-2478; (G.
R. B.), 2741-2742
statement of foreclosure (ex. 429), 2732, 2737-2741
foreign offices; Australia (G. R. B.), 2737; (F. W. J.), 2843-2845; Ber-
lin (G. R. B.), 2736; Madrid (G. R. B.), 2737; (F. W. J.), 2843-
2844; Paris, numbers 1 and 2 (G. R. B.), 2735-2737; cost and ade-
quacy of Paris Buildings (F. W. J.), 2838-2842; cause of acquiring
new building in Paris (G. T. W.), 2853-2855; Vienna (G. R. B.),
2737; (F. vV. J.), 2843; income from foreign buildings in proportion
to cost (F. W. J.), 2840, 2842-2845
Equit. Life, home office buildings: statement of (ex. 428), 2732-2737;
cost, boob value, and income of in Boston (G. R. B.), 2733-273G; in
Denver (G. R. B.), 2734-2735; in Des Moines (G. _R. B.), 2735; in
Memphis (G. R. B.), 2735; in N. Y. (G. R. B.), 2732-273-1, 2735-273G;
in St. Louis (G. R. B.), 2734-273G ; (J. H H.), 2317-2318
janitor's house and restaurant (82-^ Broad Street) (G. R. B.), 2737-
2739
rentals and leases; in Equit. bldg. (G. R. B.), 2825-2827; inadequate
rentals paid by Mercantile Safe Deposit Co. and Equit. Trust Co.
(G. R. B.), 2826; to Mercantile Safe Deposit Co. (G. R. B.), 2833-
2834; Mercantile Trust Co., St. Louis (J. H. H.), 2318; to Caf6
Savarin and Lawyers' Club (D. M. J.), 2451-2465
supply department (Greenwich department), (G. R. B.), 2738
rebates; practice of (G. E. T.), 2611-2618, 2021, 2040; to G. R. Brown
(G. R. B.), 2833; in Buffalo (G. H. S.), 4730-4731
dismissals for (G. T.), 2639-2640
on taxes (J. J. M.), 4539
reports and relations to Insurance Departments; to Insurance Commis-
sioner of California (S. S. McC), 2493-2502; Insurance department of
Conn, in 1904 (G. E. T.), 2069; to supt. of ins. of N. Y. on International
Navigation Co. syndicate in 1904 (II. R. W.), 820; falsification in re-
ports to N. Y. Department (F. H.), 4301
payments of, to State Insurance Departments (S. S. McC), 2493-2507
salaries; of inspector (G. E. T.), 2657-2058
of legislative representatives (A. W. M.), 1005; of officers (1876),
11-12; (1905), 139-141; increase of, of president and vice-presi-
dent, and justification of same (C. M. D.), 2427-2430
security register, records on (H. R. W.), 805-815
silencing of unfavorable insurance reports (W. S. Manning), 2808-2811,
2821-2824*
subsidiary companies; shares held in Fidelity Trust Co. (J. F. D.), 3003;
officers connected with Fidelity Trust (J. F. D.), 3665-3066, 3669
482 Index — Witnesses and Exhibits..
Equitable Life Assurance Society — Continued :
contributions of business to by Mercantile Trust Co. (J. H. H.), 2324-
2325; safe deposit leases with, Mercantile Trust Co. (J. H. H), 2313-
2317 ; and reorganization of Mercantile Safe Deposit, Equitable Safe
Deposit and Missouri Safe Deposit companies for benefit of (J. H.
H.), 2317-2319; settlement of claims against company by Slercantile
Trust Co. (T. F. R.), 3475-3477; stock owned by Equitable in Mer-
cantile Trust Co. (J. H. H.), 2314-2315, 2319; syndicate dealings with
Mercantile Trust Co. (Cleveland, Canton & Southern), (H. E. W.),
837; (St. Louis & San Francisco underwrit.' ag syndicate), (H. R. W.),
831-832; (Union Pac. Reorganization syndicate), (H. R. W.), 828-
831
supply department ; J. McGuinness, Jr., on 246(5-2467 ; method of pro-
curing stationery and printing (J. McG.), 2465-2469; relations of, with
Lawrence & Co. and Globe Trinting Co. (J. McG.), 2466
surplus; discussion of (G. E. T.), 2649-2653
distribution of, in annual dividends (J. G. W.), 4716-4718
amount for deferred dividend policies (J. G. Yan C), 4718-4720
statement of, for 1903 (ex. 918), 4714-4716
stocljholders, list of (Sept. 8, 1905), (W. A.), 134
stock ownership ; documents relating to ( W. A. ) , 116-135 : Indenture
trust deed (W. A.), 117-121; tiajstees appointed by H. B. Hyde (W. A.),
117
public sale of stock (W. A.), 146-148; sale of stock to T. P. Ryan (W.
A.), 124; purchase price paid by T. F. Ryan for stock of J. 11. llyne
(T. F. E.), 3459; valuation of Ryan's stock (T. F. R.), 3400-3467;
execution of trust deed of Ryan's stock (T. F. R.), 3463-3464; con-
ditions of beneficial ownership of Ryan's stock (T. F. R.), 3484-
8487 ; proposal of E. H. Harriman to share Ryan's stock (T. F. R.),
3469-3475; (enforced testimony of T. P. R.), 3645-3652; interviews
of E. H. Harriman with Ryan regarding (E. 11. H.), 3899-3916
transfer of stock, (since June 1905), (W. A.), 148-149; (exs. 205, 206),
925-927
stock transactions, In stocks of Lawyers' Title and Lawyers' Mort. Ins.
Co., with G. H. Squire and Williamson and Squire, and American De-
posit and Loan Co. (ex. 369 and G. H. S.,Jr.), 2329, 2332-2338 (G. W.
J.), 2338-2341, 2378; (exs. 376 and 376A.), 2377; (deposition of G. H.
Squire), 2515-2530; (A. W. M.), 3002-3003; (E. W. C), 2515-2^30; (H.
Morgthau), 4563
syndicate operations; allotments (J. H. H.), 2206-2212; reason for dis-
tribution of syndicate allotment (J. H. H.), 2259-2263
purchase of bonds in syndicates where Executive Committee is inter-
ested (G. H. S.), 2549-2552
syndicate participations through L. Fitzgerald (J. H. S.), 1021-1024
participations managed by Kuhn, Loeb «& Co. (J. H. S.), K)24-l<i_s
reasons for dealing through managers (E. H. H.), 23-19-2351
Index — Witnesses and Exhibits. 483
Equitable Life Assurance Society — Continued :
methods of participation In syndicates (G. H. S.), 2551-2552
records of syndicate operations (J. H. H.), 2212-2214
syndicate participations; statement of (ex. 157A), 793-824; Atcliison,
Topelia & Santa Fe convertible 4's (H. R. W.), 887-888; Atlantic Coast
Line R. R. (H. R. W.), 856-809, (H. R. W.), 865-869, (J. H. H.), 2257-
2259; Central Pacific refunding syndicate (H. R. W.), 797, (H. R. W.),
836-838; Chicago, Burlington & Quincy Purchase (H. R. W.), 805-806,
(H. R. W.), 848-862; (exs. 168, 169, 170, 171, 172, 173), (H. R. W.),
850-860, (J. H. H.) 2241-2256, (C. M. D.) 2415, 2417-2418, (G. H. S.)
2542-2547; Chicago & Northwest (H. R. W.), 805, (H. R. W.) 863-866;
Gen. (H. R. W.), 872-874, (J. H. S.) 1021; Chicago, Rock Island c&
Pacific 4's (H. R. W.), 796; (H. R. W.) 4's, 835-836; Cleveland, Can-
ton & Southern (H. R. W.), 797-798, (H. R. W.) 837; Gould's eastern
expansion (J. H. H.), 2240-2242; International Navigation Co., 1st
mortgage bonds (H. R. W.), 819-821, (H. R. W.) 879-881, (J. H. H.)
2276-2278; (G. H. Squire, trustee), (H. G.) 914-919; Japanese 6 per
cent bonds, first series (H. R. W.), 823-824, (11. R. W.) 824, (H. R.
W.) 884-886; Jap. 6's, second series (H. R. W.), 888; Jap. 4y2's (exs.
188, 189, 190, 191), 888-892; Lackawanna Steel (J. H. H.), 2224-2229;
Long Island Refunding 4 per cent, bonds (H. R. W.), 822-823, (J. H.
H.) 2279-2281; Mexican National Read.iustment (H. R. W.), 806-807,
H. R. W.), 865; N. Y. C. & H. R. Refunding (H. R. W.), 796, (II. R.
W.) 834-835, (J. H. H.) 2237-2238; N. Y. City 3y2's stock (H. R. W.),
796-797, (H. R. W.) 836, (J. IL S.) 1021; Northern Pacific (H. R. W.)
749-795, (H. R. W.) 832-833; Penn. coal purchase (H. R. W.), 798-
801; (exs. 166 and 167) 839-841, (J. H. H.) 2238-2239, (C. M. D.) 2417-
2418; Penn. R. R. 3% convertible bonds (H. R. W.), 892; Philadelphia,
Baltimore and Washington bonds (H. R. W.), 822, (J. H. H.) 2279-
2281; combined syndicate of Philadelphia, Baltimore, Washington &
L. L Refunding 4's (H. R. W.), 881-883, 885, (J. H. S.) 1036-103 J;
Pittsburg and Toledo (H. R. W.), 804-805, (H. R. W.) 847-849, (H. R.
Rio Grande and Western 1st consolidated 4's (H. R. W.), 803 (H. R.
W.), 845 (H. R. W.), 2238; R. R. Securities Co. 31/^ gold bonds (H. R.
W.), 802-803, (H. R. W.) 843-845, 846, 849, (J. H. H.) 2238: St. Louis
and San Francisco underwriting syndicate (H. R. W.) 831-832; (H. R.
W.) 921-922; St. Paul and San Francisco underwriting (H. R. W.),
794; St. Louis & Iron Mountain Railway, 2d mortgage 5's (H. R. W.),
795-796; (H. R. W.), 833-835; Southern Pacific bonds (H. R. W.),
798-799; exs. 163, 164, 165) 837-839, (J. H. H.) 2238, (G. H. S.) 2552-
2553; Southern Pac. R. R. 1st Refunding 4's (H. R. W.), 886-887;
Southern Railway Notes, series C. (H. R. W.), 817, 878-879; Union
Pac. general (ex. 204 A and B), 923-925; Union Pacific convertible
bonds (H. R. W.) 801-802, (H. R. W.) 841-843, (J. H. H.) 2238; Union
Pacific first 4's (J. H. S.), 1021; Union Pacific 1% year 5 per cent, notes
(H. R. W.) 821, (H. R. W.) 881-882, (J. H. H.) 2278-2279; Union
484 Index — Witnesses and Exhibits.
Equitable Life Assurance Society — Continued :
Pacific Pref. stock (H. K. TV.), 810-819; (exs. 177, 178, 179, 180, 181,
182, 183, 184, 185), 874-878; (J. H. ScMfe) 1038-1049, (J. H. H.) 2264-
2276, (E. H. H.) 2343-2348; Union Pacific Railway bonds (H. R. W.),
794-796; Union Pac. Eeorganizatiion Purchase Money (H. R. W.) 803-
804), (H. R. W.), 828-831; (H. R. W.) 829, 831; (exs. 204 A and B) 922-
925; U. S. of Mexico 4 per cent, bonds (H. 'R. ^t,), 887; Western Mary-
land R. R. (H. R. W.) 809-810, (H. R. W.) 871-873, (J. H. H.) 2263-
2264; W. Va. Central and West Maryland purchase (H. G.), 907-909,
913; and allotment to G. H. Squire (J. H. H.), 2212-2216.
syndicate profits; Atchinson, Topeka & Santa Fe convertible 4's (H. R.
W.), 887; Atlantic Coast Line R. R. (H. R. W.), 808-809, (H. R. W.),
869; Central Pacific Refunding syndicate (H. R. W.), 8317; Chicago,
Burlington, & Quincy Purchase (H. R. W.), 805, (H. R. W.), 853,
(H. R. W.), 859-863; Chicago & Northwest (H. R. W.), 806, 865, (H.
R. W. 873; Chicago, Rock Island & Pacific 4's (H. R. W.), 835-836;
Jap. 4%'s, (H. R. W.) 890; Mexican National Readjustment (H. R.
W.), 806; (H. R. W.), 865, Northern Pacific (H. R. W.), 795, (H. R. W.),
833; Penn. Coal purchase (H. R. W.) 841; Philadelphia, Baltimore &
Washington and Long Island Refunding 4% Bonds (H. R. W.), 823,
(H. R. W.), 881-882; securities received from Pittsburg & Toledo
syndicate (H. R. W.), 805, (H. R. W.), 847-848; Rio Grande & Western
1st consolidated 4's (H. R. W.), 803, (H. R. W.), 845; R. R. Securities
Co. (H. R. W.), 802, (H. R. W.), 843; St. Louis & Iron Mountain
Railway, 2nd mortgage 5's, (H. R. W.), 834; St. Louis & San Fran-
cisco underwriting (H. R. W.), 831; Southern Pacific (H. R. W.), 838,
(H. R. W.), 887; Southern Railway Notes, Series C (H. R. W.), 878;
Union Pac. Convertible bonds (H. R. W.), 842; Union Pac. l}i year 5%
Notes (H. R. W.), 821, (H. R. W.), 881-882; Union Pacific Railway
bonds (H. R. W.), 794; Union Pac. Reorganization (H. R. W.), 804,
(H. R. W.), 829-831; W. Maryland R. R. (H. R. W.), 871
trustees named in agreement of mutualization (W. A.), 129; compensa-
tion of (T. F. R.), 3467
twisting (G. E. T.), 2618-2620
taxes, amounts of, in 1904 (G. E. T.), 2662, 2663, 2664; (G. E. T.), 2664,
2665; and in 1899 (G. E. T.), 2566; on real estate, 1890 (6. E. T.), 2566;
and other than real estate taxes, 1899 (G. E. T.), 2S66-2667; relations
of, to assets (G. E. T.), 2663-2G68
tontine system in insurance originated by (J. A. McC>, 1094-1095
transportation of officers free (G. E. T.), 2687-2694; private car (G. H.
S.), 2552; voucher for 13 days of private car G. E. T.), 2689
Equitable Safe Deposit' Co. of Boston:
capital stock of (J. H. H.), 2317-2318; lease with, of Equitable Life
(J. H. H.), 2317; transfer of Hyde stock in to Mercantile Trust, 2318
Equitable Trust Co.:
transactions of, with Equitable Life (J. G.), 2444-2446; Atlantic Coast
Line syndicate (H. R. W.), 866-808
Index — Witriesses and Exhibits. 485
Equitable Trust Co. — Continued :
connection of, with Kuhn, Loeb & Co. (J. H. S.), 1084
deposits of Prudential Ins. Co. with (J. F. D.), 3666; officers of Pru-
dential Ins. Co. interested in (J. F. D.), 3666
connection of with G. H. Squire, trustee account (H. G.), 907; in Naviga-
tion syndicate (H. G.), 914-919; in W. Va. Central & West Maryland
purchase syndicate (H. G.) 908-909; loans of, in W. V. C. & M. syndi-
cate (J. H. H.), 2215
syndicate participations of; in Jap., 4j4's (H. R. W.), 888-891; in South-
ern Pac. 1st Refunding 4's (H. R. W.), 868-867
account of, with Williamson and Squire (ex. 369), 2329-2330
Erie convertible 4's joint account in, of N. Y. Life (G. W. F. and Ex.
125), 697-698, 727; connection of, with N. Y. Life and J. P. Morgan &
Co. (G. W P.), 574-579, 581-582; connection of, with N. Y. Life and
W. S. FaDKhawe (G. W. P.), 574-579, 581-582.
Erie R. R. Preferred Stock.
participation In by N. Y. Life (E. D. R.), 257, 258, 267
Evans, H. Clay (formerly Counsel General at London):
letter to Ohaiirman of Investig'ating CommJttee complaining of inereae
of premiums om his policy in the Ptov. Savings Life, 3937
date of issue, initial premium, etc., on policy of (H. M.), 3973; increased
rate of pnMninm on (H. M.), 3974-3976
Evansville and Teri-e Haute:
participation !n, by N. Y. Life (E. D. R.), 256-258
Everett, J. D. & Co;
participation of, in Jersey City 4's (G. W. P.), 697
Excess arrears on lapses:
treatment of, in Metr. Life (J. R. H.), 2174-2176, (H. F.), 2176-2180
Exhibits (references to testimony and to Vols. I and II of Exhibits):
1, Mutual Life, certificates of election, 20, Eix. p. 5
2, Mut. Life, proxy form, 23, Ex. 6
3, Mut. Life, notice to policyholders, 28, Ex. p. 7.
4, N. Y. Life, declaration and charter of, 45-48, Ex. p. 7
5, N. Y. Life, certificates of election, 51-58, Vol. 1, Ex. p. 11
6, N. Y. Life, four proxies, 62, Ex. p. 18
7, Mut. Life, Mst of voters (1906), 68, Ex. p. 19
8, N. Y. Life, form of request for proxy, 71, 72, Ex. p. 19
9, N. Y. Life, by-law 38, concerning electioms, 74, Ex. p. 20
10, Mut. Ben. Life, Proxy form of, 84, p. 21
11, National Traveler's Ins. Co., declaration and certificate of, 89, Ex.
p. 21
12, Metropolitan Life, Proxy form of, 97, Ex. p. 25
13, Mut. Res. Life, declaration and charter of, lOS-106, Ex. p. 26
14, Mut Res. IJfe, proxy foi-m of, 108, Ex. p. 29
15, Mut. Res. Life, notic-e of annual meeting of, 110, Ex. p. SO
10, Equit. Life, charter of, 114-llC, Ex. p. 31
17. Equit. Life, indenture trust deed of, 116, Ex. p. 83
18. Equit. UfB, deed appointing W. H. cintyre trustee, 122, 123, Ex.
p. 39
s-86 Index — Witnesses and Exhibits.
[<;xhibits — Continued :
19, Equit. Liife, BUI of sale of sto<;k to Thomas F. Ryan, 124, Ex. p. 40
20, Equit. Life, assignment and transfer of Equitable stock to J. H.
Hyde, 125, Ex. p. 41
21, Equit. Life assignment and transfer of Bqait. stock to T. F. Eyan,
126, 127, Ex. p. 41
22, Equit. Life, power of attorney from trustees of, to T. F. Ryan, 127,
Ex. p. 43
23, Equit Life, codicil to will of J. H. Hyde transferring s.tock to T. F.
Ryan, 218, Ex. p. 43
24, Equdt. Life, trust agreement between T. F. Ryan, Grover Cleveland,
M. J. O'Brien, and George Westinghouse, 130, Ex. p. 45
25, Equit. Life, List of stockholders of, (Sept. 5, 1905, lS6, Ex. p. 49
26, Equit. Life, list of directors of, (Sept. 5, 1905), 136-138, Ex. p. 51
27, Equit. Life, list of officers of, 139, Ex. p. 54
28, Equit Life, by-laws of, as amended Aug. 3, 1904, 141, Ex. p. 54
29, Equit Life, by-laws of, as amended, July 27, 1905, 142, Ex. p. 54
30, Report of liVick Comraattee, 146,' Ex. p. 55
31, Equit Life, testimony taken by Superintendent Hendricks on, 146,
Ex. p. 55
32, Equit. Life, Preliminary report of Superintendent Hendricks on,
146, Ex. p. 55
33, Mut. Life, list of Finance Committee of, 151, Ex. p. 55
34, Perm Mutual Life, supplement to charter, 175, Ex. p. 55
35, Penn. Mut. Life, Sec. 14 of charter of, 176, Ex. p. 57
30, Mut. Life, bank balances, Jan. to Sept. 1905, 211, Ex. p. 57
37, N. Y. Life, srlaries of executive officers of, 1877-1905, 218, Ex. p. 63
38, N. Y. Life, syndicate participations of, 221, 2888, EX. p. 67
39, N. Y. Life, cash balances, Sept. 1900^-Aug. 31, 1905, 237, Ex. p. 67
40, N. Y. Life, cash balances, Jan. 31 — Aug. 31, 1905, 237, Ex. p. 68
41, N. Y. Life, disposal of N. Y. Security & Trust Co. stocks, 269, Ex.
p. 72
42, N. Y. Life, subscribers to purchasing syndicate of N. Y. Security
& Trust Co., stock, 270, Ex. p. 82
43, N. Y. Life, agreement on option of N. Y. Security & Trust Co. stock,
271, Ex. p. 83
44, N. Y. Life, memorandum for comptroller, 313, Ex. p. 84
45, N. Y. Life, memorandum of Erie Railway Syndicate transaction, 413,
Ex. p. 84
46, N. Y. Life, list of purchases and sales. Sept 1, 1895 — Sept 1, 1905, 317,
Ex. p. 84
47, (not found in testimony), marked for identification, Ex. p. 85
48, N. Y. Life, syndicate account of Toronto, Hamilton & Buffalo R. R.,
1st mortgage 4's, due June 1st, 1946, and account of same, 382, Ex.
p. 85
49, N. Y. Life, N. Y. Life and Goldman, Sachs & Co., joint account, 380,
Ex. p. 86
50, N, Y, Life, bonds, Chicago & Alton R. R. Co., 387, Ex. p. 87
Index — Witnesses and Exhibits, 487
KT.hibits — Continued :
50, Mut. Life, list of syndicate transactions, 387, 407, 1660
51, Mut. Life, list of F. .Cromwell's syndicate transactions, 404, Ex. p. 87
52, Mut. Life, isyndicate agreement between Speyer & Co. and Mut. on
Cuban bonds (Feb. 16, 1904), 410-411, Ex. p. 88
53, Mut. Life, syndicate agreement of Chicago, Burlington & Quincy pur-
chase, 417, Ex. p. 94
53, Equit. Life, C. B. & Q. purchase syndicate agreement, 855-858, Ex.
p. 119
54, Mut. Life, syndicate agreement, Oregon Short Line, 420, Ex. p. 94
55, individual syndicate participations of F. Cromwell, 420, Ex. p. 85
56, aiut. Life, letter of Oct. 20, 1904, agreement of U. S. of Mexico bonds,
434, Ex. p. 96
57, Mut. Life, letter on U. S. of Mexico bond transaction, 435, Ex. p. 97
58, 59, 60, 61, 62, Mut. Life, bank balances, 457, 4755. Ex. p. 97
63, Mut. Life, statement of interest received by, on balances in banks,
463, Ex. p. 98
64, Mut Life, statement of Bank and Trust Co.'s stock owned June 30,
1905, 463, Ex. p. 100
65, letter from Mr. Wm. Babcock to Robert Grannlss, Feb. 2, 1904, 500,
Ex. p. 104
66, letter of Mr. William Babcock to F. Cromwell, 500. Ex. p. 104
66A, Metr. Life, bonds and stocks owned by, Sept. 1, 1905, 510
67, Metr. list of purchases and sales of, for 10 years, past, 510, Ex. p. 106
68, Marked for identification, Ex. p. 106
69, Metr. Life, syndicate participations of, 510, Ex. p. 107
70, Metr. Life, bank balances of (Sept. 1900— Aug. 1905), 530, Ex. p. 109
71, N. Y. Life, joint accounts of, 534, Ex. p. 110
72, N. Y. Life, Hanover Bank office account, 535. Ex. p. 112
73, N. Y. Life, list of unclaimed assets of, 537, Ex. p. 112
74, N. Y. Life, account of, with First National Bank, 547. Ex. p. 116
75 and 76, N. Y. Life, Hanover Bank accounts, 553. Ex. p. 116
77, Hanover Bank office account with N. Y. Life, 582. Ex. p. 110
78, N. Y. Life, campaign check (Dec. 30, 1904), 582, 588. Ex. p. 116
79, N. Y. Life, check to A. Hamilton (March 19, 1904 ^ 591, Ex. p. 117
80, N. Y. Life, check to A. Hamilton (March 9, 1904), 591, Ex. p. 117
81, N. y. Life, Golding check (March 22, 1904), 591, Ex. p. 117
81, N. Y. State National Bank of Albany, account with, of Andrew Ham-
ilton, 609 (not found in Book of Ex.)
82, N. Y. Life, check to Golding (March 24, 1904), 591, Ex. p. 118
82A, N. Y. Life comptroller's warrant to Andrew Hamilton, 612, Ex.
p. 118
83, N. Y. Life, Andrew Hamilton's receipt, 612, Ex, p. 118
84 to 92 (inclusive), N. Y. Life, 4 checks to John M. Golding, 5 to Aft
drew Hamilton, 614, 620, Ex. p. 118
93, N. Y. Life, diagram of printing house property, 619. Ex. p. 118
488 Index — Witnesses and Exhibits.
Exhibits — Contlmied :
94, N. Y. Life, minutes of Finance Committee -on purcliase of property,
617. Ex. p. 122
95, N. T. Y. Life, check of Central Nat. Bank of N. Y. to Andrew Hamil-
ton, Dee. 2, 1903, 624. Ex. p. 122
95, N. Y. Life, check to A. Hamilton, Dec. 2, 1903, 622. Ex. p. 157
96, N. Y. Life, check to A. Hamilton, Dec. 14, 1903, 622. Ex. p. 123
97, N. Y. Life, comptroller's voucher for payment to Hamilton, Dec. 2,
1903, 622. Ex. p. 123
98, N. Y. Life, comptroller's voucher for payment to Hamilton, Jan. 8,
1904, 622. Ex. p. 124
99, N. Y. Life, memo, for Comptroller Ballaird in relation to Judge
Hamilton's ma,tter, Dec. 12, 1903, 623, Ex. p. 124
99A, N. Y. Life, check to Hanover Bank ofllce account, Jan. 28, 1904,
to Hamilton, $25,000, 631, Ex. p. 162
100, N. Y. Life, check to Hanover Bank oflflce account, Jan. 28, 1904,
to Hamilton, $20,000, 631, EX p. 125
101, N. Y. Life, voucher for cheek of exhibit 99A, 631, Ex. p. 126
102, N. Y. Life, Hamilton's voucher for check of exhibit 100, 631,
Ex. p. 126
103, check from N. Y. Life to J. P. Morgan & Co., Jan. 2, 1904, G63,
Ex. p. 127
104, N. Y. Life statement of realizations in cash, 699. Ex. p. 127
104, N. Y. Life, joint accounts of, 1897-1905, 665 (not in Ex.)
105, N. Y. Life, statement of transaction of, in Savannah, Florida and
WestOTn 5's, 667, Ex. p. 129
106, N. Y. Life, account of paa-ticipation of, in Chicago and North-
west Consolidated Sinking Fund 7's, 672, Ex. p. 130
107, N. Y. Life, account of participation of, in Chicago and North-
west 7's, due Feb. 1, 1915, 672, 676, Ex. p. 131
107A, N. Y. Life, No. 3 syndicate list, 692
108, N. Y. Life, 'account of participation of, in Chicago and North-
west, Feb. 7, 1901, 672, Ex. p. 132
109, N. Y. Life, statement of transaction of N. Y. Life and N. Y.,
Ontario and Western, 678, Ex. p. 133
110, N. Y. Life, amount realized on L. I. City 4%'s, 679, Ex. p. 134
111, N. Y. Life, Mo. Pac. By. Co. Trust 2 per cent. Bonds, Joint Acct.,
681, Ex. p. 136
112, N. Y. Life, statement of transaction in Chicago and Alton 4's, 682.
Ex. p. 137
113, N. Y. Life, Joint Acct. Eussian Wladikawkos By. Loan of 1900,
683, Ex. p. 139
114, N. Y. Life, statement of joint account with Queens County 4's
. 684, Ex. p. 114
114A, N. Y. Life, Queens Co. 4 per cent. Bonds. Ex. p. 140
115, N. T. Life, statement of joint account of, with L. I. Eefunding 4's,
685, Ex. p. 143.
116, N. Y. Life, resolution on participation of W. S. Fanshawe in L. I.
Eefunding 4's, 686, Ex. p. 143
Index — Witnesses and Exhibits. 489
— — >■ —
Exhibits — Continued :
117, N. X. Life, statement of joint account of, witb Pittsburg, Virginia
and Charleston, 690. Ex. p. 144
118, N. Y. Life, statement of joint account of, with N. Y. City 3% bonds,
690, Ex. p. 145
119, N. Y. Life, statement of joint account of, with L. I. Refunding 4's,
691, Ex. p. 147
120, N. Y. Life, statement of joint account in Oregon Short Line, 691,
Ex. p. 148
121, N. Y. Life, Northern Pac, Grt Northern, O. B. & Q. 4 per cent, joint
acct. Ex. p. 149
122, N. Y. Life, statement of joint account in Southern Pacific 4's, 695.
Ex. p. 151
123, N. Y. Life, statement of joint account in Jersey City 4's, 697.
Ex. p. 152
124, N. Y. Life, resolution on division of profits in Jersey City 4's, 697.
Ex. p. 153
125, N. Y. Life, statement of joint account in Erie convertible 4's, 698.
Ex. p. 154
126, N. Y. Life, statement of joint account in Central Pac. Railway, 1st
Refunding 4's, 699. Ex. p. 158
127, N. Y. Life, statement of 2d purchase of Cen. Pac. Railway, 1st
Refunding 4's, 701. Ex. p. 158
128, N. Y. Life, Atlantic Coast Line R. R. Co., Central Pac. Refunding
4's, 701. Ex. p. 159
128A, N. Y. Life, statement of joint account of, in Sanitary District
of Chicago, Municipal 4i^'s, 701. Ex. p. .
129 (marked for identification), 702. Ex. p. 162
130, N. Y. Life, statement of joint account in New Orleans Terminal,
703. .Ex. p. 162
131, N. Y. Life, statement of joint account of N. Y. Life in Washington
Terminal, 703. Ex. p. 163
132, N. Y. Life, statement of joint account in N. Y. City 3y2's, 703.
Ex. p. 164
133, N. Y. Life, statement of joint account of, in Atlantic Coast Line,
704. Ex. p. 165
134, N. Y. Life, statement of joint account of, in Canadian Northern,
704. Ex. p. 167
135 (136 in Ex.), N. Y. Life, statement of joint account of, in U. S. of
Mexico, 704. Ex. p. 168
136 (135 in Ex.), N. Y. Life, joint acc't with W. S. Fanshawe & Co.,
704. Ex. p. 169
137, N. Y. Life, joint accounts (bonds retired). Ex. p. 170
138 (marked for identification). Ex. p. 176
139, N. Y. Life, cashier's order for check to J. P. Morgan, Jan. 2, 1904.
Ex. p. 176
140, N. Y. Life, statement of transactions with J. P. Morgan & Co.. 715.
Ex. p. 176.
141, N. Y. Life, expenses for 1904, 744. Ex. p. 177
490 Index — Witnesses and Exhibits.
le _ <
Exhibits — Continued :
142 (marked for identification). Ex. p. 177
i43, book relative to Nylic system (1895), 748. Ex. p. 177
144, transcript of A. Hamilton's account with. Citizens' Central Bank,
762. Ex. p. 177
145, pamphlet No. 8, concerning Nylic, 766. Ex. p. 177
146, i)rospectus of Nylic for agency directors, 767. Ex. p. 177
147, prospectus for 1903, of Nylic for agency directors, T75. Ei. p. 177
148, prospectus for 1904, of Nylic for agency directors, 775. Ex. p. 177
149, prospectus for 1905, of Nylic for agency directors, 778. Ex. p. 177
150, N. Y. Life, statement of Income and disbursements, 1904, 781.
Ex. p. 178
150, N. Y. Life, 4755. Ex. p. 178
151, N. Y. Life, form of agreement with agents (whole time men), 782.
Ex. p. 178
152, N. Y. Life, form of agreement with agents (part time men), 782.
Ex. p. 179.
153, N. Y. Life, statement of premiums and expenses of, for 1904, 785.
Ex. p. 179
154, N. Y. Life, statement of premiums and expenses of, for 1903, 787.
Ex. p. 181.
155, letter from Hon. Grover Cleveland, explaining plans of trustees
of Equitable Life Assurance Society, 792. Ex. p. 183
155, Ex. A, see Exhibit 24
Ex. B, see Exhibit 156
Ex. 0, see Exhibit 157
156, address made to policyholders by trustees of Equitable Life, .Tunc
16, 1905, 792. Ex. p. 187
157, second address to policyholders by trustees of Equitable Life, 792
Ex. p. 189
157A, Equitable Life, statement of syndicate participations of, 703
(Not found in Exhibits.)
158A-E, Equitable Life, records of purchases, from Jan. 1, 1900, to Sept.
1, 1905, 793. Ex. p. 190.
159A-E, Equitable Life, record of sales and securities of, Jan. 1, IGCO.
to Sept. 1, 1905, 793. Ex. p. 191.
160, N. Y. Life, A. Hamilton's account with Albany Trust Co. (G. C.
Van Tuyl), 827. Ex. p. 191
161, Equit. Life, list of syndicates and managers, 828. Ex. p. 191
162, letter from Geo. H. Squire to Gen. Fitzgerald, Nov. 9, 1897, 830
(Equit. Life). Ex. p. 191
163, letter from Speyer & Co., to Equit. Life, regarding Southern syndi-
cate, Nov. 16, 1900, 838. Ex. p. 192
164, confidential letter from M. Erdman to George H. Squire, 838. Ex.
p. 193
165, letter of Nov. 15, 1900, regarding Southern Pacific syndicate, 83S.
Ex. p. 193
166, statement of participaints in Penn. Coal purchase, 839. Ex. p. 194.
167, letter from J. P. Morgan & Co., to Gen. Fitzgerald, regardiiig Penn.
Coal purchase syndicate, 840. Ex. p. 194
Index — Witnesses and Exhibits. 491
Rxiiibits — Continued :
168, Equit. Life, letter regarding C. B. & Q. purchase syndicate, 850.
Ex. p." 195.
1€9, Equit. Life, letter to (May 14, 1901), being first call for 10% in
O. B. & Q. purchase syndicate, 851. Ex. p. 195.
170, Equit. Life, tetter to (July 19, 1901), second call for 121/2% in C. B.
& Q. purchase syndicate, 852. Ex. p. 196
171, Equit. Life, letter to, dated July 1, '02, in regard to 0. B. & Q.
purchase syndicate transaction, 853. Ex. p. 196.
172 & 173, Equit: Life, letters from Mr. Squire to Equit. Life (July 2,
1902), in'C. B. & Q. transaction, 860. Ex. p. 197-198
174, Equit. Life, statement of securities, in Chicago and Northwest
bond syndicate, 863. Ex. p. 198
174A, Equit. Life, letter from Lawrence L. Gillespie, May 12, 1904, 867.
Ex. p. 199.
175, Equit. Life, purchase voucher of, in Atlantic Coast Line syndicate,
867. Ex. p. 200.
176, Equit, statement of profits of Equit. Life in Chicago & Northwest
R. R. Co. transaction, 874. Ex. p. 200
177, Equit., letter (Jan. 1903) on Union Pac. Pref. Stock transaction,
874. Ex. p. 201
178, Equit. Life, concerning Union Pac. Pref. stock syndicate, 874.
Ex. p. 201
179, Equit. Life, letter to Mr. Hyde from Kuhn, Loeb & Co., March 22,
1904, 875. Ex. p. 202
180, Equit., letter to Mr. Hyde from Kuhn, Loeb & Co., July 26, 1904,
876. Ex. p. 203.
181, Equit., letter from J. H. Hyde to Mr. Morton, 877. Ex. p. 203
182, Equit., copy of the assignment of J. H. Hyde to tlie Equitable, 877.
Ex. p. 204.
183, Equitable, letter to Mr. Hyde from Kuhn, Loeb & Go., July 13.
1905, 877. Ex. p. 204
184, Equit, letter from Mr. Morton to Kuhn, Loeb & Co., 877. Ex. p.
205.
185, Equit, letter from Kuhn, Loeb & Co., to Mr. Morton, 878. Ex.
p. 205
186, Equit, Phil., Bait and Wabash jBond Syndicate, and L. I. R. R.
4 per cent Bond Synd., 881. Ex. p. 206
187, Equit., statement of, in Jap. 6's first series, syndicate, 881. Ex. p.
207
188, Equit., letter from Kuhn, I^eb & Co. to Equit. Life on Jap. 4%'s.
888. Ex. p. 208
189, Equit., letter from Equit to Kuhn, Loeb & Co., 888. Ex. p. 209
190 and 191, Equit., notifications of Equit. to Mercantile and Equitable
Trust Cos. of allotments on Jap. 4% bonds, 889. Ex. p. 209-21(5
192 (marked for identification). Ex. p. 210
193, Equit. Life, bank-book of G. H. Squire, trustee, with American
Deposit and Ixian Co., 895. Ex. p. 210
194, Equitable, letter of April 1, 1902, from H. 0. Deming to G. H.
Squire, 899. Ex. p. 211
492 Index — Witnesses and Exhibits.
Exhibits — Continued :
194A, Equit., letter regarding Pittsburg Co. loan, 906. Ex. p. 211
195, Equit., letter from J. H. Hyde to G. H. Squire, trustee, regarding
participation in West Va. Central and West. Maryland purchase, 907.
Ex. p. 212
196, Equit. Life, letter from J. H. Hyde to J. W. Alexander, trustee, re-
garding participation in W. Va., Central and West. Maryland purchase
syndicate, 908. Ex. p. 213
197, Equit, letter acknowledging receipt of call in W. Va., Central and
West. Maryland purchase syndicate, 908. Ex. p.' 213
198, Equit, bank-book of L. M. Bailey with Equit. Trust Co., 912. Ex. p.
214
199, Equit., letter to G. H. Squire, trustee, acknowledging $62,500 in
Navigation syndicate, 914. Ex. p. 214
200, Equit, letter from G. H. Squire to W. T. Cornell, 920. Ex. p. 214
201, Equit., letter from W. T. Cornell to G. H. Squire, 920., Ex. p. 235
202, Equit, letter from G. H. Squire to A. W. Krech, 920. Ex. p. 215
203, Equit., letter from Mr. Mclntyre.to G. H. Squire, 920. Ex. p. 210
204A and B, Equit, statements of Equit Life's connection with Union
Pacific syndicates, 925. Ex. p. 216-217
205, Equit. Life, record of, stock transferred (June 1, Sept 7, 1905),
926. Ex. p. 218
206, Equit. Life, statements explaining records of stock transferred,
926. Ex. p. 220
206, Equit Life, statements explaining record of stock transferred, 920.
Ex. p. 220
206A, B, C, D, E, Equit Life, transactions regarding compensation ol
officers of Equit Life, 928. Ex. p. 224-229
207, Equit, statement taken from exhibit 192, showing G. H. Squire's
account, 929. Ex. p. 229
208, N. Y. Life, contract of, with D. H. Desbecker, agent, 975. Ex. p. 231
209, N. Y. Life, statement of ledger balances of Buffalo office of N. Y.
Life for Dec, 1903, 976. Ex. p. 232
210, N. Y. Life, statement of, regarding commutations (19C3), 982. Ex. p.
232
211, N. Y. Life, statement of, regarding commutations (1903), 982. Ex. p.
233
212, N. Y. Life, premiums and expenses of, through Paris direction
(1904), 986. Ex. p. 233
213, N. Y. Life, premiums and expenses of, for foreign countries, report-
ing to Home office, 986. Ex. p. 237
214, N. Y. Life, premium expense for Paris direction of, for first half of
1905, 987. Ex. p. 238
215, N. Y. Life, statement of salaries paid to agency inspectors, etc.,
in U. S., 993. Ex. p. 240
216, N. Y. Life, statement of salaries paid to agency inspectors, etc.,
in U. S., 993. Ex. p. 241
217, N. Y. Life, statement regarding account of L. H. Bailey, trustee,
993. Ex. p. 242
Index — Witnesses and Exhibits. 493
Exhibits — Continued :
218, Equit. Life, sales made to Equit. Life by Kuhn, Loeb & Co., 1014.
Ex. p. 243
219, Equit. Life, letter from J. H. Hyde to Kuhn, Loeb & Co., Feb. 17,
1902, 1032. Ex. p. 243
220, Equit, syndicate agreement of Union Pac. pref. stock, 1040. Ex. p.
244
221, Equit. Life, statement of payments made to A. Hamilton, 1053.
Ex. p. 245
222, 223, 224, 225, 226, Equit. Life, vouchers of payments to A. Hamil-
ton (Feb. 1, 1895), 1053; (June 7, 1895), 1053; (Jan. 25, 1896), 1054;
(March 16, 1897), 1054; (June 4, 1897), 1055. Ex. p. 245-246
227, Equit. Life, check for $5,000 to A. Hamilton (June 4, 1897), 1055.
Ex. p. 246
228, Equit. Life, voucher for payment to A. Hamilton (June 9, 1897),
1055. Ex. p. 247
228, N. Y. Life, statement of payments to A. Hamilton, 1138
229, Equit. Life, check for $6,183.19 to A. Hamilton (June 9, 1897), lOSo.
Ex. p. 247
230, 231, 232, 233, 234, 235, Equit. Life, vouchers for payments to A.
Hamilton >( Oct. 12, 1897), 10D6 ; (Feb. 18, 1898), 1057; (April 8, 1899),
1057; (June 16, 1899), 1057; (March S, 1901), 1058; (April 28, 1903),
1058. Ex. p. 247-249
236, N. T. Life, statement of amount expended on Paris building, 1072.
Ex. p. 249
237, N. Y. Life, letter from N. Y. actuary to vice-president Ingersoll of
Paris, 1117. Ex. p. 251
238, N. Y. Life, statement of law expenses, June 1, 1900 — Aug. 31, 1905.
Ex. p. 253
239, N. Y. Life, statement of cost of N. Y. Life's Berlin building, 1107.
Ex. p. 253
240, N. Y. Life, statement of cost of N. Y. Life's Vienna building, 1167.
Ex. p. 254
241, N. Y. Life's statement of cost of N. Y. Life's Amsterdam building,
1168. Ex. p. 256
242, New York Life, statement of cost of N. Y. Life's Belgrade building,
1168. Ex. p. 257
243, New York Life, statement of cost of N. Y. Life's Budapesth building,
1169. Ex. p. 258
244 and 245, N. Y. Life, statements of cost of N. Y. Life's home office
building, 1169-1170. Ex. p. 260-263
246, N. Y. Life, statement of cost of 72d street building, 1171. Ex.
p. 266
247, N. Y. Life, statement of cost of Plaza Hotel, 1176. Ex. p. 265
248, N. Y. Life, statement of cost of N. Y. Life's building in Kansas City,
1176. Ex. p. 268
249, N. Y. Life, cost of N. Y. Life's Omaha building, 1177. Ex. p. 270
250, N. Y. > Life, cost of N. Y. Life's Minneapolis building, 1178. Ex.
p. 271
60
494 ttidex — Witnesses and ExJiihits.
Exhibits — Continued :
251, N. Y. Life, cost of N. T. Life's Montreal building, 1179. Ex. p. 273
251A, N. Y. Life, cost of N. Y. Life's St. Paul building. Ex. p. 274
252, N. Y. Life, comparison of real estate between 1896 and 1901, llSl.
Ex. p. 27(i
253, Mut. Life, statement of foreign business, 1205. Ex. p. 277
254, Mut. Life, record of foreign department, 1210. Ex. p. 278
255, Mut. Life, statement of commissions paid to 0. H. Raymond & Co.
(1888 to 1903), 1211, 1220. Ex. p. 278
256, Mut. Life, receipts of R. H. MoCurdy from foreign business, l£.i;i.
Ex. p. 279
257, Mut. Life, amounts paid to R. H. McCurdy by C. H. Raymond, 1220.
Ex. p. 281
258, Mut. Life, statement of business of C. H. Ketymond & Co. (180G-
1904), 1228. Ex. p. 282
259, Mut. Life, statement of money received by L. Thebaud froiu C. H.
Raymond & Co., 1230. Ex. p. 282
260, Mutual Life, contracts with Raymond & Co. (1895), 1231. Ex. p. •2;t.
261, Mut. Life, contract with C. H. Raymond & Co. (1903). 1240. Ex.
p. 285
262, Mut, statement of payments to Judge Hamilton, 1904, 1250. Ex.
p. 287.
263, Mut. Life, domestic agency department, map for 1004-1905, 12."i4.
Ex. p. 287
264, Mut, payroll of president, vice-presidents, etc., 1437, 13C0. Ex. ii. 2P8
264, Mut., list of companies in which Robert H. JlcCurdy is diiec-;or, 12 li
265, Mut Life, lease to Nat Safe deposit of May 1, 1004, 1305. Ex. p. 2!X)
266, Mut. Life, lease to Nat. Safe Deposit Co., Feb. 4, 1897, 130.5. Ex.
p. 290
267, Mut lease to Nat. Safe Deposit Co., March 2, 1904, 1306. Ex. p. 290
268, Mut Life, Olyphamt voucher of Jan. 28, 1904, 1340. Ex. p. 290
269, Mut Life, voucher, Jan. 20, 1904, Olyphant, 13-'.7. Ex. p. 20C
270, Mut. Life, advertisement of Mut. Life Ins. Co., 1429. Ex. p. 290
271, Mut Life, affidavit of Mr. Field's phyhlcians,- 1461. Ex. p. 291
272, Mut Life, form of referring clients to C. fl. Raymond & Co., 1525.
Ex. p. 292
273 and 274, Mut Life, signatures of George J. Plunkitt, 1558. Ex. p.
293
275, Mut Life, voucher of payment to George J. Plunlcitt, 1569-1589.
Ex. p. 29i3
276, Mut Life, voucher signed Edgar W. Rogers, 1568-1589. Ex. p. 293
277, Mut Life, signature of Wm. M. Carpentei-, 1575-1582. Ex. p. 294
278 and 279, Mut Life, signatures of M. E. Mullaney, 1577. Ex.' p. 294
280, Mut Life, voucher with signature of Wm. M. Carpenter, Jan 7 1904
1578. Ex. p. 294
281, Mut Life, letter from auditing department of, to secure deposits
with correspeudents of Nat. Bank of Commerce, 1595. Ex. p. 295
282, Mut. Life, bonds and stocks, June 30, 1905, 1607. Ex. p. 295
Index — Witnesses and Exhibits. 493
E.'vliibits — Continued :
283, Mut. Life, statement of Richard A. McOurdy, interest in companies
wliere Mut. Life was interested, 10543, iSx. p. 295
284, Mutual, stafemeiit of syndicate to float Penn. R. R. 3%'s, 1645. Ex.
p. 296
285, Mut. Life, statement of syndicate in whicti Richard A. McCurdy is
interested, where Mut. Life has bought bonds f. in -yndicate managers,
1047. Ex. p. 296
286, Mut. Life policies held by officers of Mut. Life, 16&4. Ex. p. 30O
286, Mut. Life, despatch of, to Wilmington News, 1739. Ex. p. 303
287, Mut. Life, despatch to St. Paul Pioneer Press, 1740. Ex. p. 303
288, Mut. Life, special despatch (Sept. 16, 1905), 1749. Ex. p. 304
289, Mut. Life, special despatch (Sept. 21, 1905), 1750. Ex. p. 304
290, Mut. Life, special despatch (Sept. 27, 1905), 1750. Ex. p. 305
291, Muit. Life, special despaitch (Oct. 6, 1905), 1751. Ex:, p. 305
292, Mut. Life, advertisdng expenses (1904), 1756. Ex. p. 306.
293, Mut. Life, statement of advertising deipartment for 1G03, 1701'.
Ex. p. 306
294, Mut. Life, statement of advertising department for 1902, 1702.
Ex. p. 306.
295, Mut. Life, statemenit of mail order business of, 1762. Ex. p. 306
296, plan and agreement of reorgajiization of Wash. Traction and
Electric Co., 1771. Ex. p. 308
297, N Y. Life, paper of Rufus Weeks on equitable method of keep-
ing an account of deferred dividends, 1827. Ex. p. 308
298, statement showing increase in dividends, 1863. Ex. p. 309
299, Mut. Life, book of " adapted illustratioais " for use of agents.
1445, 1863. EX. p. 300
300, 301, 302, Mut Life, books of "adapted illustrations" for use of
agents, 1458, 1864. Ex. p. 309
303, Mut. Life, statement of yearly realized earnings and dividends,
1458, 1869. Ex. p. 309
3C4, Mut. Life, statement showing mannei- of calculating annunl
dividends of, 1456, 1878. Ex. p. 309
305, statement of method of calculation of deferred dividends by E.
McOlintock, 1902. Ex. p. 309
306, Mut Life, eaOmated cost of new business of 1904, with amount
available towards payment of, 1903. Ex. p. 310
307, Metr., premium i-ates, from the Metrop. Mag., 1921. Ex. p. 310
308, deaths per 1,000 among children, 1930. Ex. p. 310
309, Metr. Life, schedule of lapses in oa-dinary dept., 1934. Ex. p. 311
310, Metr. Life, schedule of lapses in industrial dept. of, 1934. Ex.
p. 313
311, Metr. I/ife, schedule of surrendei' values in ordinary and industrial
departments of, 1937. Ex. p. 314
312, Metr. Life, showing distribution of insurance in force Dec, 1904,
1939. Ex. p. 320
313, Metr. Life, items aggregating $1,940,044.05, industrial expenses,
1946. Ex. p. 321
496 Index — Witnesses and Exhibits.
^ *
Exhibits — Continued :
31 i, Meti'. Life, salaries, 1046. Ex. p. 321
315, Metr. Life, form cf agreement of agent witli Metr. Ufe In in-
clustrial dept., 1954. Ex. p. 826
3 16, Metr. Life, form of (contract witir assistant supt., 1957. Ex. p. 327
317, Metr. Life, form of conti-aet witli supt, 1959. Ex. p. 329
318, Metr. Life, form of adult -whole life policies of industrial dept,
1964. Ex. p. 331
319, Metr. Life, report of medical examiner on intei-mediate risk, 1971.
Ex. p. 331
319, Metr. Life, form of p'.dicies in special class, 1976. Ex. p. 331
320 (marked for identification). Ex. p. 331
321, Mut. Life, voucher for money paid M. E. Mullaney by A. 0.
Fields, 2005. Ex. p. 331
321-338, Mut. Life, vouchers for payments to M. B. Mullaney, 2007,
Ex. p. 332
339, Mut. Life, voucher of payment to P. F. Butcher, 2011. Ex. p. 332
340, Metr. Life, Bulletin 449, 2013. Ex. p. 332
341, Metr. Life, statement of rebates of interest to J. R. Hegeman from
Vermilye & Co., 2116. Ex. p. 332
341, 342, 343, 344, Equit. Life, vouchers for payments to Wm. Barnes,
Sr., 2026. Ex. p. 332, 333
342, 343, Metr. Life, transcript of account of J. R. Hegeman with
VermUye & Co., 2119. Ex. p. 333
344, Metr. Life, syndicate participations of J. R. Hegeman, 2125.
Ex. p. 333
345, statement of Wm. Barnes, Sr., as superintendent for life insur-
ance companies, 2038. Ex. p. 334
346, Metr. Life, table showing indusitrial reserve for N. Y. & Mass.,
2041. Ex. p. 334
346, Metr. Life, real esbate owned by Metr. with book and market
values, 2150. Ex. p. 334
347, Metr. Life, payments to A. Hamilton, 2068. Ex. p. 339-341
347, N. Y. Life, paper executed by J. A. McCall, concerning A. Hamil-
ton, 2158. Ex. p. 339-341
S47, Metr. Life, statement of average duration of policies, 2163. Ex.
p. 339-341
348, Metr. Life, letter from actuary of Metr. Life, Oct. 12, 1905, 2164.
Ex. p. 342
348, Meti'. Life, statement of elaimis paid, 2164. Ex. p. 344
349, N. Y. Life, report of special committee (Oct. 18, 1905), on publicity
iin opposing legislation, 2167^ Ex. p. 344
349, Metr. Life, syndicate list, 2089
S50, Metr. Life, detailed syndicate schedule, 2089. Ex. p. 346
350, Metr. Life, schedule of commissions to agents, 2170, 4760
351, Meti-. Life, average daily balances, 2099, Ex. p. 358
351, Metr. Life, book of instructions for agents, 2171
352, Metr. Life, statement of payments for legislation, 2187, Ex. p. 358
353, Metr. Life, itemized statement of legal expenses for 1904, 2189,
Ex. p. 359
Index — Witnesses and Exhibits. 497
Exhibits — Continued :
354, Equit. Life, memoranaa of Mr. Jordan to Mr. Fields regarding legis-
lation (188S-1902), 2198. Ex. p. 359
355, Bqtiit. Ldfe, memoTanda of legislation from Jan. 10, 1902, to Feb.
28, 1905, addressed by Jordan to Fields^- 2199. Ex. p. 369
355, Equit. Life, memorauda of Mr. Jordan to air. Fields, Jan. 10, 1902,
. Feb. 28, 1905, 2198. Ex. p. 369
35G, Equit. Lafe, memoranda of Mr. Jordan to Mr. Fields, March 10 —
April 24, 1905, 2198. Ex. p. 377
357, Equit. Life, statemenit of companies in which J. H. Hyde was
director, 2206. Ex. p. 378
358, Equit Life, statement of personal stocliholdings, 2206. Ex. p. 379
359, Equit Life, statement of French legislation, 2237. Ex. p. 380
360, Equit. Life, statement of participation of J. H. Hyde and associates
in Artlantic Ck>ast Line syndicate, 2258. Ex. p. 382
361, Equit. Life, statement prepared by J. H. Hyde, regarding syndi-
cate, No. 1, in Frick report, 2280. Ex. p. 383
362, Equit. Idfe, J. H. Hyde and associates, syndicate in which J. H.
Hyde made losses and profits, 2282. Ex. p. 383
363, Equit Life, net result of all syndicates in which Mr. Hyde was
intei-ested, 2283. Ex. p. 385
364, Equiit T/ifA. DJi-oifit and Irtsas acft. w.ith th* Sm-iprty. .T. H. Hyde,
2284. Ex. p. 386
365, Equit Life, letter® to directors of, June 9, 1905, from J. H. Hyde,
2296. Ex. p. 387
366, Equit. Life, state act in assembly to repeal chap. 806 of laws of
1868. Ex. p. 388
367, Equit. Life, state act in senate to rtrpeal Chap. 806 of laws of
1868. Ex. D. 389
368, (marked for Identificatioii). Ex. p. 390
369, Equit. Life, ti-ansactions of 'V/illiamson and ►^ quire with Equitable
and parties connected with it 2329* 4491. Ex. p. 390
370 and 371, Equit. Life, checks for proceeds from sale of Lawyers'
Title Ins. Oo. stock on G. "H. Squire's account with Williamson and
Squire, 2336, 2376. Ex. p. 397
372-372H, checks 16,981, Oct. 3, 1901; 16,946, Oct. 6, 1901; 17,759, Dec. 5,
1901; 19,041, llni: 25, 1802; ie,094, Mar. 31, 1902; 19,493, Apr. 23, 1902;
21,686, Sept 10, 1902; 27,4(6, Oct. 14, 1908; 28,097, Dec. 17, 1903; drawn
by Williamson & Squire on the Seaboard Nat. Bank, N. Y. Ex. p.
398-402
373, check for proceeds of sales on T. D. Jordan's account with Wil-
liamson & Squire, 2376. Ex. p. 402
374 and 374A, checks for proceeds of sales on W. H. Mclntyre's ac-
count with Williamson & Squire, 2377. Ex. p. 403-404
374B, checks 31,281, Oct. 12, 1904; Seaboard Nat Bank, Williamson &
Squire to Equit. Trust Co. Ex. p. 404
375 and 375A, check for proceeds of sale on account of Hyde, Squire and
Mclntyre with Williamson & Squire, 2377. Ex. p. 405
376, 376A, cheeks for proceeds of sales on Equit. Trust Co.', account
with Williamson & Squire, 2377, Ex. p. 405-406
498 Index — Witnesses and Exhibits.
Exhibits — Continued :
377, Alexander No. 3 trustee account with Mercantite Tl-ust Co., 2381.
Ex. p. 406
378, G. H. Squire, -wi-itten statement of, regarding Lawyers' Title Ins.
Co. stock transaction, 240i. Ex. p. 412
879, letter of 0. M. Depew to Paul Morton, regarding loan to Depew
Improvemeat Co., 2425. Ex. p. 413
380, appraisal of Depew ImproTement Co. by Mr. Bramwell, 2426. Ex.
p. 417
381, appraisal of Depew Improvement Co. by W. P. Cutter, 2427. Ex.
p. 419
382, Equit Life, lease to Soeiete Anonmye, 2453. Ex. p. 420
383, Equit. Life, second lease to Soeiete Anonmye, 2455 (May 1, 1888),
Ex. p. 425
384, Equit. Life agreement with Caf6 Savai-in (April 7, 1891), 2455. Ex.
p. 432
385, Equit. agreement with the Lawyers' Down Town Club, Jan. 1, 1888.
Ex. p. 434.
386, Equit. Life, indenture between Equit. Life, Mercantile Safe De-
posit Co. and Caie Savarin, 2459. Ex. p. 437
387, Equit. Life, receipts and expenses connected with Lawyers' Club
since 1881, 2461. Ex. p. 439
388, Equit. Life, total of biHs for 1903, 1904 and firet nine mos. of 1905,
2468. Ex. p. 441.
389, Equit. Life, voucher from Gov. Hill, March 20, 1895, 2487. Ex. p.
443.
390, Equit. Life, voucher for payment to Mr. Nichols (1900), 2489, 3505.
Ex. p. 443.
391, Equit. Life, voucher to J. A. Nichols, Dec. 28, 1901, 2489. Ex.
p. 443.
.S92, Equit. Life, voucher to Nichols, Dec. 26, 1903, 2489. Ex. p. 443
393, Equit. Life, voucher of April 4, 1896, 2490. Ex. p. 443.
394 (marked for identification'). Ex. p. 443.
394A, 394B, Equit. Life, voucher and memorandum, 2490. Ex. p. 444.
395, Equit. Life, voucher to C. R. Braton, 1896, 2490. Ex. p. ft44.
396, Equit. Life, voucher to Schlosser and Wood, 2491. Ex. p. 444.
397, Equit. Life, voucher from J. M. Lewis, 2492. Ex. p. 444.
398, Equit. Life, voucher of payment to Robert Luscombe, 1897, 2492.
Ex. p. 445.
399, Equit. Life, payment to S. S. Olds, June 2, 1899, 2492. Ex. p. 445.
400, Equit. Life, voucher from J. M. Lewis, June 8, 1899, 2492. Ex.
p. 445.
401, Equit. Life, voucher from W. H. Chickering, 2495. Ex. p. 44!?.
402 to 407, Equit. Life, 8 vouchers to J. A. Nichols, 1895, 1896, 1897,
1898, 1899, 1901, 1903, 2504. Ex. p. 446.
408, Equit. Life, voucher to J. A. Nichols, Dec. 20, 1904, 2504. Ex.
p. 446.
409, Equit. Life, voucher to Nichols, Oct. 11, 1897, 2505, Ex. p. 447,
Index — Witnesses and Exhibits. 499
Exhibits — Continued;
40iiA, 409B, Bqult. Life, voucher and card to T. D. Husted, 2603. Ex.
p. 447.
410, Equit., letter John A. Nichols to Senator Depew, Dec. 19, 189C,
2503-2509, 2558. Ex. p. 447.
411, Eqnlt. Life, letter from J. A. Nichols, Dec. 24, 1900, 2505-2509.
Ex. p. 447.
412, 413, 414, Equit. Life, vouchers to J. A. Nichols, 2558. Ex. p. 448.
415, Equit. Life, check to T. D. Husted, 2C08. Ex. p. 448.
416, Equit., form of agreement with general agents, 2G45. Ex. p. 4i8.
417, Equit. Life, letter on percentage allowed as an expense fund, .'2645.
Ex. p. 459.
418, Equit. Life, letter on compensations on convertible policies, 2046.
Ex. p. 460.
419, Equit. Life, statement regarding first year's compensations, 2654.
Ex. p. 461.
420, Equit. Life, statement prohibiting competitive literature, 2655. Ex.
p. 462.
421, Equit. Life, statement prohibiting employment of employees of
Mut. Life, N. Y. Life, or Prudential Insurance Co., 2056. Ex. p. 464.
422, Equit. Life, statement regarding inspector of agencies, 2657. Ex.
p. 464.
423, Equit. Life, extra 10;^ commission on non-participating policies,
from July 15 to December 31, 1905, 2659. Ex. p. 466.
424, Equit. Life, modification ,of commission on ordinary life policies,
five year dividend, annual dividend, and non-participating policies,
July 22, 1905, 2659. Ex. p. 467.
425, Equitable Life, agents offer for 1905, 2669. Ex. p. 468.
426, Equit. liife, Robinson circular, 2671, 2696. Ex. p. 469.
426, Equit. 2696.
427, Equit. (marked for identification). Ex. p. 470.
427A, 25th Anniversary Pittsburg agency. Ex. p. 470.
427B, Pittsburg agency, 1904. Ex. p. 471.
428, Equit. Life, office buildings, . Ex. p. 475.
429, Equit. Life, foreclosure real estate, 2732, 2737. Ex. p. 478.
-'.dO, Equit. Life, statement of janitor's helpers, 2743. Ex. p. 483.
431, Mut. Ees., first form of policy providing for excess assessment and
reserve, 2753. Ex. p. 484.
432, Mut. Ees. contract with A. C. Hunt, 2754. Ex. p. 487.
433, Mut. Kes. specimen form of assessment policy, 2755-2759. Ex.
p. 487.
434, Mut Reserve, specimen of policy form showing change in assess-
pient rates, 2759. Ex. p. 492
435, Mut. Keserve, English form of policy issued by Mut. Res. in 1890,
2764. Ex. p. 501
435A, Mut. Res., policy form showing increase of assessments, 2764. Ex.
p. 511
436, Mut. Res., examples showing how credit charges were made to policy-
jiqlders, 2781, Ex. p. 517
500 Index — Witnesses and Exhibits.
Exhibits — Continued;
437, Mut. Res., sections 2 and 3 of by-laws regarding lien on policies,
2787. Ex. p. 528
438, Mut Ees., section 2 and 3 of by-law as altered after reincorporation
of society, 2788. Ex. p. 580 s
439, Mut Res., notice to policybolders of special assessment, 2791. Ex.
p. 532
440, Mut Res., explanatory letter accompanying notice of special assess-
ment 2791. Ex. p. 534
441-444, marlsed for identification. Ex. p. 536
445, Mut. Res., resolution of directors authorizing charge of lien, 2795.
Ex. p. 536
446, Mut Res., extracts from will of E. B. Harper, 2804. Ex. p. 538
447, Mut. Res., resolution for creation of contingent fund (Feb., 1896),
for president, 2806. Ex. p. 539
448, W. S. Manning's statement of reasons for leaving Hartford Life,
2807! Ex. p. 541
449 and 450, W. S. Manning's testimonials from Washington Life,
2807. Ex. p. 541
451, W. S. Manning's testimonial from Mut. Ben., 2807. Ex. p. 541
452, endorsement of W. S. Manning by Professor E. Wright and others,
2808. Ex. p. 541
453, W. S. Manning's argument before State commissioner on insurance
(1883), 2810. Ex. p. 541
454, paper produced by W. S. Manning, 2812. Ex. p. 542
455, W. S. Manning's report of insurance investigation of 1877, 2813.
Ex. p. 542
456, Equit. Life, list of tenants of Equitable building, with rentals, 2825.
Ex. Q. 542
457, N. Y. Life, letter from N. Y. Security and Trust Co. to N. X, Life,
April 27, 1903, 2840. Ex. p. 545
458, Equit. Life, Oct. foreign business, . Ex. p. 545
459, Equit. Life, statement of course of foreign business (Ex. 60, Hen-
driclis), 2849. Ex. p. 550
460, N. Y. Life, letter from L. C. Root to E. D. Randolph, Feb. 19, 1902,
2855. Ex. p. 553
461, N. Y. Life, letter from L. C. Root to N. Y. Life, Feb. 27, 1902, 2856,
2910. Ex. p. 554
462, N. Y. Life, letter from L. C. Root to E. D. Randolph, May 12, 1902,
2856, 2894. Ex. p. 554
463, N. Y. Life, letter from second assistant treasurer of N. Y. Security
and Trust Co. to B. D. Randolph, Aug. 13, 1902, 2856. Ex. p. 555
464, New York Life, letter from second assistant treasurer of N. Y. Se-
curity and Trust Co. to E. -D. Randolph, Oct 1, 1902, 2856, 2910. Ek.
p. 556
465, N. Y. Life, account annexed to exhibit 404, 2850, 2905. Ex. p. 556
Index — Witnesses and Exhibits. tiOl
Exhibits — Continued :
46e, N. Y. Life, letter from Mr. Webb, Jr., to Mr. Randolph, 17,
1904, 2856, 2S94. Ex. p. 557
467, N. T. Life, letter from Mr. Webb to Mr. Randoplh, Sept. 16, 1903,
2857. Ex. p. 557
468, N. T. Life, letter from Mr. Webb to Mr. Randolph, Nov. 4, 1903,
2857. Ex. p. 558
469, N. X. Life, letter from Mr. Webb to N. Y. Life Ins. Co., 2857. Ex.
p. 559
470, N. Y. Life, letter from Mr. King to Mr. Randolph, May 6, 1904, 2858.
Ex. p. 559
471, New York Life, letter from N. Y. Sec. & Trust Co., May 17, 1004,
2858, 2893. Ex. p. 560
472, N. Y. Life, statement of commissions and profits, 2902. Ex. p. 561
473, N. Y. Life, list of policies held by G. W. Perkins in, 2867. Ex. p. 564
474, N. Y. Life, agents' report, of November, 1902, 2872. Ex. p. 565
475, New York Life, account in ledger No. 3, Hanover Bank office ac-
count, of sale of $43,000 U. S. Steel bonds, 2894. Ex. p. 505
475A, N. Y. Life, ledger No. 4, Hanover Bank office account, continuing
ledger No. 3, 2894. Ex. p. 566
476, N. Y. Life, answer to letter of February 19, 1902 (Ex. 460), 2894.
Ex. p. 567
477, N. Y. Life, answer to letter of May 12, 1902 (Ex. 462), 2894. Ex.
p. 567
478-484, N. Y. Life, notes of A. Hamilton and E. E. McCall, taken up by
J. P. Morgan & Co., and Central National Bank, 2897, 2933. Ex. p.
567-569
484 and 485, bills of Max Deliler for examination of Mutual Reserve, 500
485, 480, N. Y. Life, notes of A. Hamilton and E. E. McCall, taken up by
N. Y. Sec. — Trust Co., 2898, 2933. Ex. p. 569-570
487, N. Y. Life, treasury department, daily blotter No. 4, folio 237, con-
taining record of payment of $59,310.79 by N. Y. Life, 2899. Ex. p. 570
488, N. Y. Life, statement of legal expenses from 1898, 2903, 2904,
2905, 4281. Ex. p. 570
489 (marked for identification), (not found in testimony). Ex. p. 570
490, N. Y. Life, letter from Mr. Shipman, assistant to tlie treasurer of
the N. Y. Life, to Mr. Keeler of the N. Y. Sec. & Trust Co., Aug. 14,
1902, 2910. Ex. p. 571
■491 N. Y. Life, letter from Mr. Shipman, assistant to the treasurer of
the N. Y. Life, to the N. Y. Sec. & Trust Co., 2910. Ex. p. 571
492, N. Y. Life, letter to Mr. Randolph from Kidder, Peabody & Co.,
June 27, 1904, 2914. Ex. p. 571
493, N. Y. Life, letter from, to Kidder, Peabody & Co., in answer to
letter of .Tune 27, 1904, 2917. Ex. p. 572-494, N. Y. Life, letter of
27th, 1904, from Kidder, Peabody & Co., 2917. Ex. p. 572
495, N. Y. Life, memorandum of account received from Kidder, Peabody
& Co., August 10, 1904, 2918. Ex. p. 573
502 Index — Witnesses and Exhibits.
Exliibits — Continued :
496, N. T. Life, letter from Kidder, Peabody & Co., Aug. 10, 1904, 2918.
Ex. p. 573
497, N. Y. Life, letter from assistant treasurer of, to Kidder, Peabody
& Ck)., August 12, 1904, 2918. Ex. p. 574
498, N. T. Life, statement of profits in Mexican Central Railway bonds
transaction, received from Kidder, Peabody & Co., Sept. 17, 1904, 2918.
Ex. p. 574
499, N. Y. Life, memorandum from E. D. Randolph to G. W. Perkins,
2919. Ex. p. 575
500, N. Y. Life, entry in bond book referring to $4S,000 in U. S. Steel
corporation, 2932. Ex. p. 575
501, N. Y. Life, letter to Mr. Ingersoll, Nov. 15, 1905, 2947. Ex. p. 570
502, N. Y. Life, letter to A. Hamilton concerning return, 2947. Ex. p. 570.
503, N. Y. Life, check to Mr. Bliss for campaign payment, 2952. Ex. p.
577
504, Equitable, salaries of Paris ofiice, 3001. Ex. p. 577
505, Equit., salaries of officers of hom<s office, not executive, S£pt., 1905,
3001. Ex. p. 577
506, N. Y. Life, expenditures for Nylic (1904), 3001. Ex. p. 578
507, American Deposit & Lopfi Co., statement of purchase and sale by,
of stock of Lawyers' Title Insurance Co., 8002. Ex. p. 579
508, American Deposit & Loan Co., statement of purchase by, of Law-
yers' Mortgage Ins. Co. stock, 3002. Ex. p. 580
509, 510, letters sent by American Deposit & Loan Co., with certificates
of stock of Lawyers' Title and Lawyers' Mortgage Ins. Co., 3004.
Ex. p. 581
511, American Deposit & Loan Co., check of, for profits on stock of Law-
yers' Title and Lawyers' Mortgage Ins. Cos., 3004. Ex. p. 582
512, Equit. Life, statement of Australian agency of, 3008. Ex. p. 582
513, Equit. Life, statement of French agency of, 3011. Ex. p. 584
514, Equit. Life, statement of British agency of, 3011. Ex. p. 585
515, 516, American Deposit & Loan Co., papers of, regarding transaction
of Lawyers' Title and Lawyers' Mortgage Ins. Cos., 3016. Ex. p. 5SG
517, G. H. Squire's deposit book, showing entry of Oct. 11, 1901, $22,-
754.88, 3017. Ex. p. 586
518, G. H. Squire's check book. Ex. p. 586
519, 520, 521, 522, stubs of checks in G. H. Squire's book, 3017. Ex. p.
586-587
523-526, checks of G. H. Squire, on Western National Bank, 3018. Ex. p.
587-588
527, Mut. Res., salaries according to office (1881-1906), 3020. Ex. p. 588
528, Mut. Res., statem'ent of salaries according to individual, 3023. Ex.
592
529 to 537, Mut. Life, vouchers for payments to C. P. McClelland (1800.
1901), 3043-3055. Ex. p. 597-600
538, Mut. Life, voucher for payment to Townsend & McClelland, o. "..
Ex. p. 600
Index — Witnesses and Mxh.ibits. 503
Exhibits — Continued :
539-544, Mut. Life, vouchers for payments to L. F. Murray, 3057. Ex. p.
eoi
545, Equitable Life, voucher for payment to C. P. McClelland, 3058.
Ex. p. 602
546, 547, Equll. Life, vouchers for payments to C. P. McClelland, 3060.
Ex. p. 602
548, N. Y. Life, cable received from IngersoU, Nov. 28, 1905, 3064. Ex. p.
602
548, N. Y. Life, cable sent to IngersoU, Nov. 29, 1905, 8064. Ex. p. 602
550, Mut. Res., showing mortuary receipts and disbursements of 15-year
class, 3067. Ex. p. 603
551, Mut. Res., earliest form of bond, 3067. Ex. p. 604
552, Mut. Res., bond statements, 3078. Ex. p. 606
553, N. Y. Security and Trust Co., account with Union Savings Bank and
Trust Co., 3079. Ex. p. 607
554, voucher for payment of S16,000 to Hamilton by N. Y. Security and
Trust Co., 3081. Ex. p. 010
555, check for payment of $16,000 to Hamilton by~N. Y. Security and
Trust Co., 3081. Ex. p. 611
556, payments to Hamilton by N. Y. Security and Trust Co., 3082. Ex.
p. 611
557, check to order of Hamilton from N. Y. Security and Trust Co.,
3083. Ex. p. 612
557, Mut. Res.; contract of D. C. Merriam with Mnt. Res., 3087. Ex.
p. 612
558, Mut. Res., agreement between S. Levinson and Mut. Res., July 2,
1901, 3091. Ex. p. 615
559, Mut. Res., statement of legal expenses of, 3117. Ex. p. 618
560-572, Mut. Res., correspondence regarding death claims, 3126. Ex.
p. 620-628
573, Mutual Reserve, legal expenses of, by years, 3198. Ex. p. 629
574, Mutual Reserve, contract of, with M. D. Moss, Jan. 18, 1897, 3213.
Ex. p. 629
575, Mutual Reserve, supplementary contract with M. D. Moss, Feb.
27, 189G. Ex. p. 629
576, Mutual Reserve, contract of, with M. D. Moss, Jan. 1897, 3214.
Ex. p. 629
577, Mutual Reserve, contracts of 1898 of, with M. D. Moss, 3227. Ex.
p. 629
578, Mutual Reserve, warrant of credit for $93,000 to Moss, 3235. Ex.
p. 630
579, Mutual Reserve, vouchers of, crediting M. D. Moss with debits to
agents, 3238. Ex. p. 630
580, letter from Mr. Burnham to Mr. Stevenson regarding Moss com-
missions on transfer.business, 3246, Ex. p. 630
581, order from M. Bnrnhnm to Mr. Moss regarding commissions on
transfer business, 3246. Ex. p. 631
504 Index — Witnesses and Exhihiis.
Exhibits — Continued :
582, Mutual Reserve, voucher to auditor of agent for commissions,
3247. Ex. p. 631
583, Mutual Reserve, matter eliminated from Mr. Vanderpoel's report
on, 3201. Ex. p. 632
584, Mut. Res., bill of I. Behler, Sept. 6, 1901, 3272. Ex. p. 633
585, Mut. Res., bill of M. Behler, Sept. 6, 1905, 3272. Ex. p. 633
586, Mutual Reserve, letter from Ins. Dept. of Iowa regarding exam-
ination of, 3272. Ex. p. 634
587, Mutual Reserve, bill for examination of, by Missouri Ins. Dept.,
3273. Ex. p. 635
587A, Mutual Reserve, bill of Missouri attornej' to, 3274. Ex. p. 636
588, Mutual Reserve, letter to I. Vanderpoel, 3285. Ex. p. 636
589, Mutual Reserve, supplemental contract of D. C. Merrlam with,
3286. Ex. p. 637
590, assignment from D. C. Merriam to G. Sitorm, 3287. Ex. p. 639
591, 592, 593, 594, 595, 596, 597, 598, Mutual Reserve, vouchers of pay-
ments to G. Storm by, 3288. Ex. p. 640-641
599, assignment of G. Storm to Wm. Porter, 3291. Ex. p. 641
600, Mutual Reserve, cancellation of contract of, with G. Storm, 3291.
Ex. p. 642
601, Mutual Reserve, statement of legal expenses of, charged to general
expenses, 3298. Ex. p. 644
602, Mutual Reserve, voucher of warrant and payment of $15,000 by,
, to Tracy, Boardman & Piatt, 3299. Ex. p. 644
603, Mut. Res., voucher from Boardman, Piatt & Soley, May 27, 1901,
3299. Ex. p. 645
604, Mutual Reserve, letter from to Solladay, regarding his policy, 3300.
Ex. p. 645
605, Mutual Reserve, letter from to A. Lathrop, regarding bi-monthly
rates, 3300. Ex. p. 646
606, Mutual Reserve, application on policy of A. Lathrop in, 3301, Ex.
p. 646
607, Mutual Reserve, letter from A. Lathrop to, complaining of in-
creased assessments, 3302. Ex. p. 647
608, Mutual Reserve, letter from Lathrop, regarding Increased assess-
ments, 3303. Ex. p. 647
609, Mutual Reserve, contract between A. C. Hunt and, regarding roy-
alty on policy form, 3315. Ex. p. 648
610, Mutual Reserve, voucher for payment of $10,000 Dy, to Board-
man, Piatt & Soley, 3320. Ex. p. 649
611, Mutual Reserve, payments to Brockway, 3320. Ex. p. 649
612, Sec. Mut., original contract between C. M. Turner and Sec. Mut.,
3323. Ex. p. 650
613, Sec. Mut articles of incorpomtion of Agency Investment Co., 33i;8.
Ex. p. 653
614, Sec. Mut., contract between Sec. Mut. and Agency & Investmrnt
Co., Feb. 24, 1894, 3329. Ex. p. 655
Index — Witnesses and Exhibits. 505
Exhibits — Continued :
615, Sec. Mut. contract between C. M. Turner and Security Mutual,
3329. Ex. p. 659
616, Sec. Mut. contract between C. M. Turner and otliers and Sec. Mut
3829. Ex. p. 661
617, Sec. Mut., release of, by Agency & Investment Co., 3337. Ex. p.
668
618, Sec. Mut., contract between C. M. Turner and Sec. Mut. Feb. 13,
1902, 3343 Ex. p. 669
619, Sec. Mut., contract between C M. Turner and Agency and In-
vestment Co., 3343. Ex. p. 671
620, Sec. Mutj, contract between Sec. Mut. and Agency & Investment
Co., February 1.3, 1902, ^44. Ex. p. 674
621, Sec. Mut, contract between Security Jlutual and Agency & Invest-
ment Co., February, 1903, 3345. Ex. p. 677
622, Sec. Mut., statement of insurance in force, from 1886 to 1904, 3345.
Ex. p. 681
623, Sec. Mut., statement of premium income from incorporation to
Dec. 31, 1904, 334.-3. Ex. p. G82
624, Sec. Mut., amount 'paid hy the Security Mutual to the Agency &
Investment Co., 3345. Ex. p. 682
625, Sec. Mut, statement of dividends paid by Agency & Investment
Co., to Sept. 1, 1904, 3346. Ex. p. 083
626, C. M. Turner, moneys from Agency & Investment Co., and Security
. .Mutual, 3346. Ex. p. 684
627, Sec. Mut., list of salaries for, 3353. Ex. p. 685
628, Sec. Mut., list of stocliholders in Agency & Investment Co., 3358.
Ex. p. 685
629, Sec. Mut, amount of payments to Mr. Jenkins, 3359. Ex. p. 685
630, Sec. Mut, earlier form of policy, 3.36*. Ex. p. 686
631, Mut. Res., accounts referred to in Ex.'s 631, et seq., being a tran-
script of the Harper account, 3366. Ex. p. 689
632, Mut Res., warrant 15,189, 3366. Ex. p. 698
033, Mut Res., warrant of Nov. 4, 1896, 3367. Ex. p. 699
634, Mut. Res., order of Exec. Committee, Nov. 4, 1896, 3367. Ex. p.
699
635, Mut. Res., ledger 5, pages 134 and 135, draft to Mrs. Harper in
Paris, 3368. Ex. p. 699
636, Mut. Res., voucher of Feb. 11, IS??, 3368. Ex. p. 699
637, Mut. Res., check accompanying voucher, Feb. 11, 1897, 3368. Ex.
p. 700
638, Mut. Res., warrant 80,372, 3370. Ex. p. 700
639, Mut Res., payments to Jlrs. Harper, 3370. Ex. p. 700
640, Mut. Res., conclusion of account, Mrs. Harper, 3370. Ex. p. 700
641, Sec. Mut, form for continuing same rates, 3384. E.x. p. 701
642, Sec. Mut., form of policy given under the old assessment conditions
in exchange for original policies, 3416. Ex. p. 703
643, Sec. Mut., Circular, 3424. Ex. p. 706
644, Sec. Mut, form of Probable Life policies, 3425. Ex. p. 707
506 Index — Witnesses and Exhibits.
Exhibits — Continued :
645, Sec. Mut, general agent's contract, 3435. Ex. p. 711
646, Sec. Mut., statement of proportion of outstanding policies that are
annual dividends and deferred dividend policies, 3438. Ex. p. 71
647, Sec. Mut.. statement of monthly balances of First Nat. Bank ot
Binghamton, 3455. Ex. p. 71
648, Sec. Mut., statement of account of, with Mercantile National Bant
of N. Y., 3466. Ex. p. 712
649, Equit. Life, letter from T. F. Ryan to G. Cleveland, regarding
purchase of Equit. stocli, 3461. Ex. p. 712
650, Equit. Life, letter to three trustees of' Equit. on purchase of stock,
3461. Ex. p. 713
651, Equit. Life, letter to Mr. Morton on purchase of Equit. stock, 3461.
Ex. p. 714
652, Sec. Mut, record of collateral loans for ten years, 3495. Ex. p. 718
653, Sec. Mut, list of real estate mortgages to Nov. 22, IOCS, 3496. Ex.
p. 718 ~
654, Sec. Mut., computation of surrender value on assessment policies,
3528. Ex. p. 718
655, Sec. Mut., resolution for appointment of investigating committee,
3535. Ex. p. 719
656, Home Life Ins. Co., charter of, 3539. Ex. p. 720
657, Home Life Ins. Co., copy of by-laws, 3542. Ex. p. 726
658, Home Life Ins. Co., list of securities purchased during last ten
years, 3552. Ex. p. 726
659, Home Life Ins. Co., securities sold during past ten years, 3552. Ex.
p. 726
660, Home Life, stocks and bonds owned by, Nov. 1, 1905, 3552. Ex. p. 726
661, Home Life, statement of all collateral loans, 3553. Ex. p. 726
662, Home Life, surrender value of deferred dividends, 3561. Ex. p. 726
663, Home Life, form of agent's contract, 3574. Ex. p. 726
664, Home Life, ratio of loadings to expenses, 3583. Ex. p. 727
665, Home Life, computation of loading and expenses based on business
of two years, 3583. Ex. p. 727
666, Home Life, table of amounts credited to deferred dividends, 3597.
Ex. p. 728
667, Home Life, actual results on ten-year dividend endowment, 3599.
Ex. p. 728
668, Home Life, actual resuits on 20-year endowment 3599. Ex. p 729 1
1359, 1360
669, Home Life, book of estimates based on dividends of 1899, 3599 Ex
p. 730
670, Home Life, book of estimates issued in 1891, 3600. Ex. p. 730
672, Home Life, account card with deferred dividend policyholder (Henry
F. Wegner), 3609. Ex. p. 730
673, Prov. Savings, legal retainers, 3638. Ex. p. 731
674, Prudential Ins. Co., legal expenses of Prudential Ins. Go 3671 Ex
p. 731 , . .
075, Prudential Ins. Co., salaries of executive officers of, .3690. Ex. p. 733 "
Index — Witnesses and Exhibits. • 507
[exhibits — Continued :
676, Prudential Ins. Co., securities of Public Service Corporation con-
nected with, 3693. Ex. p. 733
677, Prudential Ins. Co., loans of, to Public Service Corporation, ;{693.
Ex. p. 735
678, Prudential Ins. Co., securities owned by, 3695. Ex. p. 735
679, Prudential Ins. Co., agent's manual in ordinary department (1900),
3702. Ex p. 735
680, Priidential Insurance Co., agents' manual In ordinary department
(1906), 3702. Ex. p. 735
681, Prudential Ins. Co., tables of rates of, for industrial policies, 3703.
Ex. p. 736
682, Prudential Ins. Co., table of lapses of, 3709. Ex. p. 736
683, Prudential Ins. Co., showing increase of persistency in insurance of,
3712. iBx. p. 738
684, Prudential Ins. Co., ratio of policies revived to policies lapsed of,
3713. Ex. p. 739
685, Prudential Ins. Co., table of surrender values and paid-up policies
of, 3715. Ex. p. 740
686, Prudential Ins. Co., form of industrial policy of, 3715. Ex. p. 740
687, Prudential Ins. Co., showing paid-up policies per $100, whole life
industrial, 3717. Ex. p. 752
688, Prudential Ins. Co., table of additional benefits of, 3718. Ex. p. 752.
See &lso Ex. 1006
689, Prudential Ins. Co., additional benefits in industrial department in
case of death after 5 years, 4452. Ex. p. 752
690, Prudential Ins. Co., table of cash dividends in industrial department,
3729. Ex. p. 753
691, Prudential Ins. Co., table showing premiums received and amount
paid policyholders in industrial department of, 3729. Ex. p. 753
■ 692, Prudential Ins., first policy year, expenses of, 3776. Ex. p. 753
693, Prudential Ins., Insurance o^/. in force Dec. 31, 1904, 3777. Ex. p. 753
693, Prudential Ins. Co., rates of industrial policies, 3777
694, Prudential Ins. Co., legal expenses of, 3797. Ex. p. 754
695, Prudential, record of monthly' balances in banks and trust com-
panies, 3797. Ex. p. 754 (not found at end of Exhibits)
696, Metr. Life, table of industrial experience, 3814. Ex. p. 754
697, Metr. Life, table of statistics showing advantages of child insurance,
3844. Ex. p. 755
698, Prov. Savings Life, salaries of, 3866. Ex. p. 756
699, Prov. Savings Life, agreement between Boswell & Buckley, and E. W.
Scott, regarding transfer of shares of Prov. Sav. Life, 3867. Ex. p. 757
700, Prov. Savings Life, payments for campaign and legislation, 3868.
Ex. p. 757
701, Provident Savings Life, real estate owned by, 3871. Ex. p. 757
702, Prov. Savings Life, statement of business written by increases,
lapses,, etc., 3885. Ex. p. 758
703, Prov. Savings, Life, percentage of e&Jtff^tiws in, for five yeai-s,
3888. Ex. p. 759
508 1 Index — Witnesses and Exhibits.
Exhibits — Continued :
704, Prov. Savings Lnfe, premiums and payments to policyliolders of,
3889. Ex. p. 759
705, 705A and 706, Equit. Life, correspondence of E. W. Scott with
vice-president of, 3880. Ex. p. 759-760
707, 708, Elquit. Life, correspondence of, with E. W. Sco.it, 3891. Ex. p.
761 '
709, Prov. Savings Dife, gaJn and loss exhibits of, 3893. Ex. p. 762
710, Prpv. Sa.vin.g3 Life, statement of net loadings and first year's ex-
penses, 3923. Eis. p. 763
711, Prov. Savings Life, mortality record for 1904, ratios of losses 1904,
and 1876-1884, 392& Ex. p. 764
712, Prov. Savings Life, letter to, from Block, Sullivan & Brd, 3933.
Ex. p. 766
713, Prov. Savings Life, letter from, to Block, Sullivan & Erd, In answer
to letter of March ffi, 1905, 3934. Ex. p. 766
714, Pi-ov. Savings Life, letter to, from B. S. & B., dated April 19, 1905,
3934. Ex. p. 768
' 7i5, Prov. Savings Life, letter to B. S. & E., May 3, 1905, 3934. Ex. p.
770
716, Prov. Savings Ldfe, letter to, fi'om B. S. & B., May 22, 1905, 393-J.
Ex. p. 771
717, Prov. Savings Life, letter to B. S. & B., May 25, 1905, 3935. Ex. p.
774
718, Prov. Savings Ldfe, policy issued in 1893, with clause providing
for Increase of rates, 3937. Ex. p. 776
719, Prov. Savings Life, method of calculating deferred dividends, 3950.
Ex. p. 777
720, Prov. Saviings Life, allocation of premiums and grovrth of surplus
or defloiency, 3950. Ek. p. 780
721, Pipov. Savings Life, nature of caJculkion in exchange cases where •
there has been a loan, 3951, Ex. p. 780
722, Prov. Savings Life, appraisal of properties of, made by Ins De-
partment of N. Y., 3951. Ex. p. 781
722, Prov. Savings Life, card O, showing manner of calculating de-
ferred dividends, 3951
723, Prov. Savings Life, contract with agents, 3970. Ex. p; 785
724, Prov. Savings, statement of totad receipts from premiums and pay-
ments to policyholders from the organization of the Society 8087
Ex. p. 785 ■ ^
725, Prov. Savings Life, statement of expenses of, for 1904, 3989. Ex.
p. 786
^^Qc?"^ savings Life, schedule of maximum rates per thousand,
3990. Ex. p. 786
^^Ex^ 78? ^'^^^ ^'^' ^'*'''"^^^' "* ^''^^^' ^^'^^^ P'-oPerty. 4005.
^^^ JT""^' ±^'''^^' ^^^'t^'^ent of the amounts paid back bv agents
m Dec. 190S, to readvance in 1804, 4017. Ex p 787
728, Prov. Savings, pi-ofit and loss items from 1897 to 1904 4029
Ex. p. 788 '
Index — Witnesses and Exhibits. 500
Exhibits — Continued :
730, Prov. Savings, banli balances, Oct. 31, 1900, to October 31, 1905,
4033. Ex. p. 792
731, Prov. Savings, record of purchases and securities for ten years
preceding Nov. 21, 1905, 4033. Ex. p. 792
732, Prov, Savings, record of sales of securities for ten years pre-
ceding Nov. 21, 1905, 4033. Ex. p. 792
733, Prov. Savings IJfe, securities, Nov. 21, 1905, 4033. Ex. p. 792
734, Prov. Savings, record of collateral loans, Oct. 31, 4033. Ex. p. 792
735, Empire Life Insurance Company, constitution and by-laws of,
4034. Ex. p. 793
736, Empire Ldfe, circular issued by, 4038. Ex. p. 802
737, Empire Life, circulai-s of, 4041. Ex. p. SOS
738, Empire Life, letter from, to Investigating Committee, Dec. 2, 1905,
4045. Ex. p. 818
730, Empire Life, list of payments for legal expenses, 4045. Ex. p. 818
740, Empire Life, Sander's policy, 13019, 4047. Ex. p. 819
741, Empire Life, letter to Mr. E. Sanders from Supt. of Insurance, May
9, 1905, 4048. Ex. p. 821
742, Empire Life, letter to Mr. E. Sanders from the Supt. of Insurance,
May 12, 1905, 4048. Ex. p. 822
743, Empire Life, letter to Mr. E. Sanders from the Supt. of Insurance,
June 9, 1905, 4048. Ex. p. 823
744, Life Associati'on, checkbook with the Gansevoort Bank, 4056. Ex.
p. 823
745, Life Association, resolution passed by, relative to compensation for
Townsley and Van Shajick, 4058. Ex. p. 824
746, Life Association, resolution fixing compensation for Townsley and
Van Shaick at $50,000, 4058. Ex. p. 824
747 and 748, Life Association, letters of April 21, 1904, addressed by
H. P. Townsley to Hem-y F. Bell, president of the Citizen's Trust
Co. of Paterson, 4665. Ex. p. 825.
749, Life Association, statement of loans made by, since organization,
with the exception of those now in force, 4069. Ex. p. 825
750, Life Association, statement of collateral loans aow in force, 4070.
Ex. p. 826
751, Life Association, list of mortgage loans made by, 4070. Ex. p. 826
752, Life Association, statement of securities held by, on December
7, 1905, ^0. Ex. p. 827
753, Life Association, statement of cash balances from Aag. 7, 1903,
to date, 4071. Ex. p. 829
754, Life Association, statement in reply to certain questions asked
by the Committee, 4071. Ex. p. 830
755, Life Association, specimen of agents' contract, 4071. Ei. p. 832
756, Life Association, circular sient by, to agents of other life insur-
ance companies, 4073. Ex. p. 832
757, Life Association, 90 per cent, commission, 4073. Ex. p. 833
758, Life Association, rate-book, 4074. Ex. p. 833
759, Life Association, check showing repayment by Townsley and
Van Shaick of $50,000, 4077. Ex. p. 833
5J0 Index — Witnesses and ExhihUs.
Exhibits — Continued :
760, Lif€ Association, elrculai' issued by, 4081. Ex. p. 833
760, Life Association, report of H. P. Townsley as president of, to
stoelilioldiei-s, Jan. 1, 1905, 4092
761, Manhattan Bond and Underwriting Oo., form of bond of, 4105,
Ex. p. 834
762, Life Association, prospectus of, issued by H. P. Townsley, 4107.
Ex. p: 835
763, Life Association, illustration of returns to investors made by
agents of, 4107. Ex. p. 837
704, Washington Life, statement of salaries paid to officers of com-
pany, 4114. Ex. p. 838
765, Washington Life, i*eport of Isaac Vanderpoel, chief examiner of
Ins. Dept., of result of examination of agents of Nov. 30, 1904, 4115.
Ex. p. 839
766, Washington Life, policy containing cash surrender provision at
end of twenty years, 4127. Ex. p.- 845
767, Washington Life, contracts with agents for 1906, 4131. Ex, p. 851
768, Washington Life, statement of first year's expenses, 4136. Ex.
I). 851,
769 and 770, Washington Life, • statement of total loadings on first
yeai-'s premiums in 1903 and 1904 as compared with the first year's
expenses in those years, 4137. Ex. p. 851-852
771, Washington Life, statement of money contributed for political
purposes or in comiection with legislation, 4137^ Ex. p.^ 852
772, Washington Life, real estate holdings of, 4143. Ex. p. 855
773, Washington Life, list of securities owned by, on Oct. 30, 1905,
purchased ^noe Jan. 1, 1905, 4143. Ex. p. 855
774, 775, 776, Washington Life, statement oif securities pi:)i;chased and
resold by, since 1905, other than those stated in Ex. 773, 4146 Ex
p. 855-857
777 (marked for identification) (not found in testimony). Ex. p. 858
778, Washington Life, resolution adopted by finance committee on
January 6, 1905, 4153. Ex. p. 858
779, Washington Life, participation of, in Imperial Jap. Gfovt. Stei'ling
Loan Syndicate 41/2 per cent. Govt, bonds, 4154. ■ Ex. p. 858
780, Washington Life, letter to, from Kuhn, Loeb i Co., on condi-
tions of participation in Imp. Jap. Govt Sterling Loan Synaicate
4% per cent. Govt, bonds, 4154. Ex. p. 859
781, Washington Life, letter concei-ning participation of, in N. Y.
Stoclj Exchange face bonds, 4155. Ex. p. 861
782, Washington Life, participation of, in Penn. R. R convertibles
4156. Ex. p. 861 ' . «4 ,
783-785, Washington. Life, correspondence relative to participation iu
Penn. R. R. convertibles through Kuhn, Loeb & Co., 4156 Ex ' d
862-864 • . i>.
786, Washington Life, participation of, in Imperial Jap Govt 2d
series 4% per cent bonds, 4156. Ex. p. 865
787 and 788, Washington Life, correspondemMj relative to transaction
of, m Imp. Govt. 2d series, 4^ per cent, bonds, 4157. E)x, p. §65-867
Index — zWiinesses and Bxhihits. 51]
Exhibits — Continued :
789, Washington Life, participation by, in Republic Iron and Steel Co.,
first mortgage, 415T. Ex. p. 867
790, Wasblngton Life, letter from Morton Trust Co. on allotrtjent in
Republic Iron and Steel Oo. first mortgage, 4157. Ex. p. 868
791, Washington Life, letter of Nov. 20, lS05, from Morton Trust Co.,
on allotment in BeiDublic Iron and Steel Co., 4158. Ex. p. 868
792, Washington Life, statement of participation in Imp. Jap. Grov. 4's,
maturing ia 1931, 4158. Ex. p. 869
79.3, Washington Life, letter from Harvey, Fisk & Sons on participation
in Bethlehem Steel Co. syndicate, 4159. Ex. p. 869.
794-798, Washington Life, collateral loans made by, since Jan. 1, 1905,
4163. Ex. p. 870.
799, Washington Life, complete list of legal fees paid by, for ten years
ending 1904, 4163. Ex. p. 871.
800, Washington Life, complete list of loans made by, for ten years
prior to Dec. 31, 1904, 4164. Ex. p. 871
801, Washington Life, method by which annual dividends have been
calculated, 4104. Ex. p. 871
802, Washington Life, statement of loading on issues of 1903 and 1904.
4183. Ex. p. 872
803, Washington Life, book prepared and used by former agents, 4183.
Ex. p. 872
804-807, Washington Life, actual results of apportionments on deferred
policies where the period matured in 1905, 4183. Ex. p. 872-874.
808, Germania Life, charter acrd by-laws of, 4184. Ex. p. 874
809, Germania Life, letter to policyholders on proxies, 4187. Ex. p.
874
810, Germania, statement regarding legislation, 4188. Ex. p. 876.
811, Germania, list of purchases of securities in XJ. S. since 1895, 4200.
Ex.- p. 877
812, Germania, list of purchases in Germany since 1895, 4200. Ex. p. 877
813, Germania, list df bOLds sold in tl. S., 4200, Ex. p. 877
814, Germania, list of bonas sold abroad, 4200. Ex. p. 877.
815, Germania, scale of comnnssioiis on policies, 4211. Ex. p. 877.
816, Germania, statement of disbursements for legal expenses since
1895, 4211. Ex. p. 879
817, Germania, collateral loans since 1895, 4212. Ex. p. 879.
818, Germania, statement of securities owned, 4212. Ex. p. 879
819, Germania, monthly cash balances in bank, 4212. Ex. p. 879
820, Germania, statement of surplus added annually on policies matur-
ing 1904, and statement of total sui-plus to the credit of those policies
from 1896 to 1904, 4228. Ex. p. 879
821, Bankers' Life, list of securities now owned, 4248, Ex. p. 880
1 823, Bankers' Life, list of collateral loans since 1895, 4248. Ex. p. 880
^ 824, Bankers' Life, report of chief examiner of Ins. Dept, Mar. 13,
1905, 4252. Ex. p. 880
512 Index — Witnesses and Exhibits.
_____ ^
Exhibits — Continued :
825. Germania, dividend distributions ini 1905, 4258. Ex. p. 883
82(1, Germania, book of estimates, 4259. Ex. p. 883
827, State Insurance I^epartment list of office staff, 4259. Ex. p. 883.
828, ^tate Insurance Department examinations made by department,
Jan. 1, 1895,— Dec. 1, 1905, 4267. Ex. p. 886.
829, Mutual Life, net profits on sales of securities,. 4332. Ex. p. 887.
830, Mutual Life, profit and loss account for 1901, 4835. Ex. p. 890
831, Mutual Life, memorandum of adjustment at end of 1901, 4335.
Ex. p. 890
832, Mutual Life, profit and loss and adjustment account, 1902, 4337.
Ex. p. 890
833, Mutual Life, profit and loss account for 1903, 4337. Ex. p. 890
834, Mutual Life, profit and loss account of, for 1904, 4338. Ex. p. 890
835, Mutual LlfB, profit and loss and adjustment accoimt for September
30, 1905, 4340. Ex. p. 891
S3C, Mutual Life, report for 1901, 4341. Ex. p. 898
837, Mntual Life, income during 1901, 4341. Ex. p. 897
838, Mutual Life, statement of Deeejnber 31, 1903, 4342. Ex. p. 902
839, Mutual Life, statement for 1904, 4342. Ex. p. 907
840, Mutual Life, analysis of profit and loss and adjustment entries,
1898, 4342. Ex. p. 913
841, Mutual Life, statements of profit and loss account for 1899, 4342.
Ex. p. 914
842,. Mutual Life, profit and loss account for 1900, 4342. Ex. p. 915.
843, Mutual Life, original memorandum of instruction for charging of
profit and loss, 1901, 4354. Ex. p. 916
844, Mutual Life, profit and loss and readjustment account for 1904.
4354. Ex. p. 916.
845, Mutual Life, memorandum of adjustment of one million dollars,
June 30, 1905, 4355. Ex. p. 917
846, Mutual Life, memorandum of adjustment for five million dollars,
June 30, 1905, 4355. Ex. p. 918
847, Lawyers' Mortgage Co., account of thousand shares of stock
transferred to N. D. Putnam, -Jr., 4378. Ex. p. 922
§48-850, Lawyers' Mortgage Co., accounts of G. H. Squire, J. H. Hyde,
and Mut. 4383, 4384. Ex. p. 924
851, State Insurance Department act to amend insurance law in rela-
tion to life and casualty cos. upon assessment plan, 4401. Ex. p. 924
8.!>2, Prov. Savings Life, financial statement of, 4417. Ex.. p. 924
853 and 854, N. Y. Life, doctor's certificate and translation regarding
Hamilton's health, 4434. Ex. p. 925
855, N. Y. Life, statement of A. Hamilton, 4435. Ex. p. 927
856, N. Y. Life, statement of legal payments to A. Hamilton, 4436.
Ex. p. 943
857, N. Y. Life, statement of legal payments other than to Hamilton,
4436. Ex. p. 945
858, opinion of attorney-general (Jan. f5, 1905), regarding amendment
to section 02. 4440. Ex. p. 94t;
859, letter from superintendent of insirance to governor, regarding
amendment to section 52, 4449. Ex. p. 947
, Index — Witnesses and Exhibits. 613
■Exhibits — Continued :
860, Bankers' Life, statement regarding controversy of Bankers' Life
with Ins. Dept., 4457. Ex. p. 948
861, Bankers' Life, letter to, from Supt. Payne, 4457. Ex. p. 950
862, Bquifc Life, letter to H. E. Powell from medical director of, 4535.
Ex. p. 953
863, letter of reference to attorney-general regarding rebates on taxes
to foreign companies, 4541. Ex. p. 954
864, answer of attorney-general regarding rebates on taxes to foreign
companies, 4541. Ex. p. 955
865, letter of 6. G. Haven to Mr. Cromwell, regasding purchase of
Lawyers' Mort. Ins. Co. stock, 4551. Ex. p. 955
866, receipt of payment of F. Cromwell to Guaranty Trust Co. for
Lawyers' Mortgage Co. stock (Ex. 866), 4569. Ex. p. 956
867, letter of G. G. Haven to A. Iselin regarding purchase of Lawyers'
Mort. Ins. Co. stock, 4574. Ex. p. 956
868, TJ. S. Life, charter of, with amendments, 4581. Ex. p. 957.
869, U. S. Life, by-laws of, 4586. Ex. p. 957
870, U. S. Life, salaries oi officers of, 4587. Ex. p. 957
871, U. S. Life, examiner's report on, 4587. Ex. p. 958
872, U. S. Life, supplemental report of examiner of, 4590. Ex. p. 963
873, V. S. Life, syndicate participations of, 4592. Ex. p. 964
874, IT. S. Life, collateral loans of, 45^3. Ex. p. 967
875, letter to Mr. Cromwell regarding stock of Lawyers' Mortgage Ins.
Co., Ex. p. 967 (not found in testimony)
875, TJ. S. Life, bank deposits and balances of, 4595 (not found in
exhibits)
876, U. S. Life, securities of, 4596. Ex. p. 958
877, U. S. Life, purchases and sales of, 4596. Ex. p. 958
878, U. S. Life, campaign contributions of, 4597. Ex. i». 968
879, U. S. Life, legal expenses of, 4599. Ex. p. 969
880, TJ. S. Life, loadings and expenses, 1903-1904, 4599. Ex. p. 969
881, syndicate participations of A. Iselin, Jr., where Mut. Life was
interested, 4603. Ex. p. 970
. 882, TJ. S. Life, statement showing comparison of former and present
rates to agents, 4604. Ex. p. 972
883, TJ. S. Life, schedule of commissions of agents of, 4608. fex. p. 977
884, TJ. S. Life, schedule of real estate of TJ. S. Life from files of in-
surance department, 4608. Ex. p. 979
885 (marked for identification), not found in testimony. Ex. p. 98i
886, TJ. S. Life, schedule of real estate of, 4612. Ex. p. 981
887, TJ. S. Life, estimated and actual dividends of, 4619. Ex. p. 981
888, TJ. S. Life, book showing results of policies for benefit of pur-
chasers, 4620. Ex. p. 982
889, TJ. S. Life, book formerly in use showing estlmateon policies, 4620.
Ex. p. 982
890, TJ. S. Life, report of examiner of, for 1905, 4621. Ex. p. 983
891, Manhattan Life, charter of, 4623. Ex. p. 983
892, Manhattan T,ife, by-laws of, 4625. Ex. p. 983
S14 Index — Witnesses and^Mxhihiis.
Exhibits — Continued :
893, Manhattan Life, legal expenses of, 4627. Ex. p. 984
894, Manhattan Life, salaries of officers of, 4628. Ex. p. 984
895, Manhattan Life, collateral loans of, 4630. Ex. p. 987
896, Manhattan Life, sectrlties purchased by. In last teh years, 4631.
Ex. p. 987
897, Manhattan Life, securities sold in last ten years by, 4632. Ex. p.
987
898, Manhattan Life, list of securities owned by, Nov. 29, 1905, 4632.
Ex. p. 987
899, Manhattan Life, statement of real estate of, 4633. Ex. p. 987
900, Manhattan Life, election returns of 1896, 4636. Ex. p. 987
901, Manhattan Life, letter sent to general agents, May 29, 1900, 4636.
Ex. p. 989
902, Manhattan Life, examination of, by Insurance Dept, 4636. Ex. p.
989
903, Manhattan Life, schedule of compensation to sub-agents of, ,4041.
Ex. p. 993
•904, Manhatt&n Life, schedule oif compensations for general agents of,
4642. Ex. p. 996
905, Manhattan Life, contracts of, with Dunham, 4643. Ex. p. 998
906, Manhattan Life, loans on collateral of, in force to date, 4660. Ex. p.
998
907, Manhattan Life, bank balances and their rates of interest in, 4662.
Ex. p. 998
908, syndicate participations of G. O. Haven, where Mutual Life was
interested, 4665. Ex. p. 999
909, Mutual Life, bank balances of, 4666. Ex. p. 1000
910, Life Ins. Club, specimen form of policy of, 4687. Ex. p. 1001
911, Life Ins. Club, contract with Life Ins. Club of N. T., aux., June
23, 1905, 4688. Ex. p. 1008
912, Equitable, method of calculating dividends on deferred dividend
policies In, 4698. Ex. p. lOOS
913, Equitable, calculation of deferred dividend policies of expiring in
1904, 4700. Ex. p. 1012
914, Equitable, hypothetical ratios used by in calculating dividends,
4707. Ex. p. 1016
915, Equitable, deferred dividend experience of, for year ending 1905,
4714. Ex. p. 1020
916, Equitable, deferred dividend experience of, for year ending 1906,
4714. Ex. p. 1022
917, Equitable ratios for calculating dividends, 4715. Ex. p. 1027
918, Equitable, statement of surplus in, for 1903, 4716. Ex. p. 1028
919, Equitable, deferred dividend statement of, for 1904, 4716. Ex. p.
1029
920, Equitable, testimony of Dawson on correction of comparative tables
of estimates and actual results furnished by, 4723. Ex. p. 1080
921, Equitable, letter from J. G. Van Cise to Invest. Com., regarding
lapses of, 4726. Ex. p. 1032
Index — Witnesses and Exhibits. 51S
Exhibits — Continued :
922, Equitable, letter and table from J. G. Van Olse to Invest. Com.,
4726. Ex. p. 1033
923, Equitable, statement of policies held by its officers, 4727. Ex. p.
1036
924, Equitable, memorandum of agreement witti employees, respecting
Insurance, 4727. Ex. p. 1042
925, Equitable, cost of foreign agencies to, 4728. Ex. p. 1053
926, Equitable, statement by, of cost of new business for 1895-1904, 4728.
Ex. p. 1078
927, Equitable, correction in testimony of Mr. Wilson, 4728. Ex. p. 1098
928, Equitable, statement of method of calculation of renewal commis-
sions to G. E. Tarbell, 4728. Ex. p. 1093
929, Equitable, rule for agents in regard to rebates, 4729. Ex. p. 1096
930, Equitable, correction In testimony of G. Tarbell, 4729. Ex. p. 1096
931, Equit. Life, statement of examination of, by State Insurance De^
partments and amount paid therefor, 4734. Ex. p. 1097
932, . Equit Life, statement of fire insurance effected through the office
of F. B. Jordan, covering the properties mortgaged to the Equit. Life
and commissions to Jordan from fire insurance companies, 4734. Ex. p.
932
933, Equit. Life, statement of H. R. Winthrop as to syndicates in which
the Equit. Life participated, 4734. Ex. p.
934 to 945, Equit. Life, memoranda of accounts of and parties connected
with, from books of Williarason and Squire, 4734. Ex. p. 1101.
934, account of Thomas Jordan with Williamson and Squire, 4734. Ex.
p. 1101.
935, Equit. Life, account of stock sold to, by Williamson and Squire,
4734. Ex. p. 1101.
936, Equit. Life, account of stock sold to, from books of Williamson and
Squire, 4735. Ex. p. 1104.
937, Equit. Life, account of G. H. Squire with Williamson and Squire,
4735. Ex. p. 1104.
938, Equit. Life, account of George H. Squire from books of Williamson
and Squire, 4735. Ex. p. 1106.
939, Equit. Life, account of sales for the account of G. H. Squire, 4785.
Ex. p. 1106.
940, Equit. Life, joint account of Hyde, Squire and Mclntyre with Wil-
liamson and Squire, 4735. Ex. p. 1108.
941, Equit. Trust Co., account of, from books of Williamson and Squire,
4735. Ex. p. 1108.
942, Equit. Life, account of W. H. Mclntyre with WilUamson and
Squire, 4735. Ex. p. 1108.
943, Equit. Life, account .James H. Hyde, 4735. Ex. p. 1109.
944, Bqait. Life, account of Sidney Dillon Ripley with Williamson and
Squire, 4735. Ex. p. 1110.
945, Equit. Life, account of J. W. Alexander with Williamson and
Squire, 4735. Ex. p. 1110.
51 6 Index — Witnesses and Exhibits.
Rchibits — Continued :
946, Equit. Life, report of the examination of, made by Superintendent
of Insurance as of June 30, 1905, 4736. Ex. p. 1110.
947, Equit. Life, record of collateral loans of, from Jan. 1, 1895, to Sept.
5, 1905, 473G. Ex. p. 1110.
948, Equit. Life, statement of transcript of stock ledger of the Law-
yers' Mortgage Co., showing stock transactions of the Equit. Life
4738. Ex. p. 1110.
949, Equit. Life, statement furnished by, of Lawyers' Mortgage Co.
stock owned by the company Sept. 5, 1901, 4739. Ex. p. 1112.
950, Equit. Life, statement of Lawyers' Title Ins. and Trust Co. stocks
owned by, Sept. 5, 1905, 4739. Ex. p. 1114.
951, Equit. Life, statement of securities purchased by, from Kuhn, Loeb
& Co., since Jan. 1, 1900, 4739. Ex. p. 1116.
952, Equit. Life, statement of law expenses of, 4739. Ex. p. 1118.
953, Equit. Life, statement of payments due insurance papers by, and
certain miscellaneous advertising charges, 4739. Ex. p. 1119.
954, N. Y. Life, statement of estimated surplus and actual results on
the tontine, estimates of 1872, 1881 and 1884, 4741.. Ex. p. 1122.
955, N. Y. Life, illustrations issued in 1905, 4734. Ex. p. 1124.
956, N. Y. Life, book headed "Actual Results on Free Tontine Policies
Maturing in 1905," 4734. Ex. p. 1124.
957, N. Y. Life, letter addressed by actuary to Privy Councillor of
Russia, 4745. Ex. p. 1124.
958, N. Y. Life, approximate amount taken in order to pay expenses at
end of 1904, or in making the calculations for 1904, 4747. Ex. p. 1125.
959, N. Y. Life, approximate fractional accounting to Dec. 31, 1902, in
connection with deferred dividend policies, 4747. Ex. p .1126.
960, Mut., N. Y. and Equit., number of persons insured with these com-
panies In certain years who survived the period and kept their pol-
icies in force 10, 15 and 20 year periods, 4749. Ex. p. 1131.
961, N. Y. Life, copy from the Prussian reports of the apportionment of
surplus to tontine policies, 4749. Ex. p. 1131.
962 and 96^, N. Y. Life, actual results in, in 1904 and 1905, 4750. Ex.
p. 1134-1135.
964, N. Y. Life, results of full tontine and non-forfeiting tontine policies
maturing in 1905, 4750. Ex. p. 1136.
965, Mut. Life, statement of the estimated surplus and actual results of
distribution policies issued by, 4751. Ex. p. 1137.
966, Manhattan Life, statement of estimated surplus and actual results
on policies issued by, 4751. Ex. p. 1138.
967, Northwestern Mut. Life Ins. Co., statement of estimated surplus
and actual results on policies issued by, 4751. Ex. p. 1139.
968, Penn. Mut. Life Ins. Co., statement of estimates surplus and actual
results on policies issued by, 4751. Ex. p. 1141.
969, letter received by the Investigating Committee from Rev. G. Brophy,
Holloway, Hastings Co., Ontario, Can., 4752. Ex. p. 1142
970, Equit. Life, letter from, under datei of Dec. 27, 1905, to Investigating
Committee with regard to Brophy policies, 4752. Ex. p. 1143
Index — Wiinesses and Exhibits. 517
Exliibits — ('!ontinued :
971, N. Y. Life, letter from, under date of Dec. 27, 1905, to Investigating
Committee with regard to Brophy poliries, 4752. Ex. p. 1143
972, Mut. Life, letter from Dec. 26, 1905, to Investigating Committee,
with regard to Brophy policies, 4752. Ex. p. 1145
973, N. Y. Life, affidavit of Theodore M. Banta, verified Dec. 28, 1896,
4754. Ex. p. 1146
974, N. Y. Life, affidavit of Hugh S. Thompson, verified Dec, 28, 1896,
4754. Ex. p. 1146
975, N. Y. Life, affidavit of John C. Whitney, verified Dec. 28, 1896, 4754.
Ex. p. 1146
970, A-B-C-D-E-F-G, N. Y. Life, memoranda of insurance on the lives of
officers of, and commissions or allowances received by the officers, 4754.
Ex. p. 1147-1152
977, N. Y. Life, statement of amount paid for examination by the State
lAs. Dept. from 1894 to 1905, 4754. Ex. p. 1153
97S, N. Y. Life, statement from the records of the Comptroller of the
state of N. Y., showing memorandum of taxes of, under Chapter 118
of the Laws of 1901, 4754. Ex. p. 1156
979 and 980, Mut. Life, statemeat of the business of O. H. Raymond and
Co., furnished by, 4755. Ex. p. 1159-1161
981, statement containing syndicate participations of A. D. Julliard, 4755.
Ex. p. 1163
982, statement of syndicate participations of George F. Baker, '4755. Ex.
p. 1171
983, Mut. Life, statement of the insurance examination of the State Ins.
Department and amount paid thereon of the Mut. Life, 4755. Ex. p.
1171
984, N. Y. Life, balances of, for 1904, being part of exhibit 39, 4756. Ex.
p. 1174
985, Equit. Life, bank balances of, for 1904, 4756. Ex. p. 1192
OSe', gain and loss exhibit showing prepared by M. M. Dawson showing
policies within their first year in 1904, in companies doing business in
the state of N. Y., 4750. Ex. p. 1192
987, Mut. Life, statement furnished by, as to the City Realty Company
and property owned and sales thereof at Rochester, N. Y., 4757. Ex.
p. 1198
988, Mut. Res., copy of contract of D. B. Harper with, 4757. Ex. p. 1202
989'. Mut. Res., deposition of Isaac Vanderpoel in the case of the Mut.
Res. against J. Thompson Patterson, 4757. Ex. p. 1203
990, Mut. Res., statement relating to cost of Mut. Res. building^rom
files of the Dept. of Ins., 4757. Ex, p. 1205
991, JIut. Res., statement of Income of the Mut. Res. building from the
files of the Dept. of Ins., 4757. EX. p. 1207
092, Sec. Mut., A. S. Rennie account and agreement, 4758. Ex. p. 1207-
1208
9.03 (marked for identification), not found in testimony. Ex. p. 1212
904. Sec, Mut., correspondence with Wm. Boswell, 4759. Ex. p. 1213
51 8 Index — Witnesses and Exhibits.
Exhibits — Continued:
995, statement of F. W. Alexander, 4759. Ex. p. 1216
996, Prov. Savings, statement from, with regard to Policy No. 129,771,
Isaac Shapiro, 4759. Ex. p. 1218
997, Prov. Savings, charter of, 4760. Ex. p.
998, Prov. Savings, traveling expenses of, for 1904, 4760. Ex. p. 1220
999, Prov. Savings, statement of collateral loans of, being exhibit 734
for identification, 4760. Ex. p. 1220
1000, Prov. Savings, report of examination of, by Ins. Dept, Oct. 19,
1897, 4760. Ex. p. 1222
1001, Metr. Life, statement of schedule of syndicate participations of, be-
ing exhibti 350 for identification, 4760. Ex. p. 1229
1002, Metr. Life, statement of the rentals and expenses of, 4761. Ex. p.
1229
1003, Metr. Life, statement of the expenses for examinations of the Ins.
Dept. incurred by, 4761. Ex. p. 1231
1004, Metr. Life, statement of Nov. 7, 1905, as to lapses, etc., 4761. Ex.
p. 1233
1005, Metr. Life, statement of insurance in force, 4761. Ex. p. 1235
1006, Prudential Life, statement of additional benefits and cash divi-
dends on regular industrial policies, being exhibit 688 for identification,
4761. Ex. p. 1243
1007, Home Life Ins. Co., statement of certain corrections in testimony
given by officers of, 4761. Ex. p. 1252
1008, Mut. Life, statement of payments made to individuals by, in con-
nection with advertising, 4762. Ex. p. 1252
1009, N. Y. Life, payments made by, to E. Riggs for special work in con-
nection with newspaper advertising, 4763. Ex. p. 1264
1010, Penn. Mutual, statement showing manner in which accounts
were kept with deferred dividend policyholders, 4769. Ex. p. 1265
1011, 'ISrorthwestern Mut. Life, statement of manner in which individual
accounts are kept with deferred dividend policy, 4770. Ex. p. 1272
1012, Northwestern Mut. Life, statement of specimen card, showing ac-
count of deferred dividend policy, 4770. Ex. p. 1273
1013, Metr. Life, mortuary table of, 4770. Ex. p. 1274
1014, Mut. Life, statement of annual dividends of, for 1885, 1890, 1895
and 1905, on policies of $1,000 issued at age 35, 4770. Ex. p. 1279
1015, N. Y. Life, statement of annual dividends of, figured at age 40, as
paid in 1885, 1890 and 1905, 4770. Ex. p. 1285
1016, N. Y. Life, memo, of dividends and interest. Dee. 31, 1904, 4771. Ex
p. 1288
1017,- Mut. Life, letter from G. G. Haven to Chas. E. Hughes Dec 30
1905, 4771. Ex. p. 1288 , . ,
1018, Home Life, letter from G. E. Ide to C. E. Hughes, Dee. 12, 1905,
4771. Ex. p. 1289
1019, Home Life, letter from Wm. A. Marshall to 0. B. Hughes Dec 18
1905, 4771. Ex. p. 1290. ' ' '
WM, Life Ins. Club of N. Y., letter to, from Life Ins. Club of N Y Aux
Nov. 1, 1905, 4771. Ex. p. 1290 ' '' '
Iiidex — Witivesses a/nd Exhibits. 519
Exhibits — Continued :
1021, letter from Eugene Van Schaick to C. E. Hughes, Dec. 19, 1905,
4771. Ex. p. 1291
1022, Equit, letter to policyholders from Paul Morton, 4771. Ex. p. 1292
1023, Equit., statements of Banks and Trust Companies, 4771. Ex. p.
1307
1024, Equit. affidavit of Gage E. Tarbell, in reply to testimony of G. H.
Sickles, Jan. 10, 1906, 4771. Ex. p. 1310
1025, Equit. Life, sales of securities to, by Kuhn, Loeb & Co., Jan. 1, 1900,
to Sept. 11, 1905, 4771. Ex. p. 1313
1026, Equitable Life, actuary's and auditor's analysis of cost of business
in 1903-1904, 4771. Ex. p. 1319
1027, Equitable Life, advance and loans to agents, 1904, 4771. Ex. p.
1321
1028, Equitable Life, letter from J. G. Van CIse to Wm. W. Armstrong,
Jan. 6, 1906, 4771. Ex. p. 1322
Expenses :
of foreign business. Equitable Life in Australia (G. T. W.), 3008; France,
3010, 3014, and in England (G. T. W.), 3011; Mut. (R. W. McC.),'1205;
N. Y. Life (T. A. B.), 985
causes for increase of (E. McC), 1819
limitation of, to loadings (E. McC), 1909
in Metr. and que,«tion of reduction of (H. F.), 3834, 3853
ratio of, to amount paid policyholders (Mut. Ben.), 86; comparison of
Metr., Mut, Equit, and N. Y. Life (J. R. H.), 1943
ratio of, to income, comparison of Metr., Mut., Equit, and N. T. Life (J.
R. H.), 1941
ratios for, Mut, 1267; N. T. Life, for 1904 (T. A. B.), 983, 984; Prov.
Sav. (ex. 724), 3987; Washington Life (ex. 769, 770), 4137; see also
legal expenses, and individual cos.
F.
Fairchlld, Chas. S. (president of N. Y. Sec. & Trust Co.) :
option of, on stock of N. Y. Security & Trust Co., (E. D. R.), 270-276;
shares of, in N. Y. Security & Trust Co. (E. D. R.), 362-363
verbal agreement of, with G. W. Perkins tor 75^ of profits of participa-
tion in U. S. Steel (G. W. P.), 2881-2882
Fancher, Charles H. :
presidency of, in Bankers' Life (R. M.), 4247; purchase by, of Bankers-
Life stock, 1902 (R. M.), 4245-4248
Fanshawe, W. S..
relations of, to J. P. Morgan & Co. (G. W. P.), 572, 573
relations of, to N. Y. Life (E. D. R.), 546, (G. W. P.), 572, 573
testimony of, 2985-2995; on commission charged by him for buying and
selling, 2993; on his independence of N. Y. Life in buying securities,
2992; denial by, of payments of profits to persons connected with N.
Y Life 2994, 2995 ; on his dealings with E. D. Randolph, 2993 ; on his
joint accounts with N. Y. Life, in L. I. R. R. Co. refunding 4's, 2992,
2993 ; on New Orleans traction deal with N. Y. Life and N. Y, Security
^ Trust Co., 2991, 2994 ; on his transactions with N. Y. Life .»nd J. P.
520 Index — Witnesses and Exhibits.
Exhibits — Continued :
Morgan & Ck)., 2991, 2992; on his connection with Drexel, Morgan &
Co., 2993
Fanshawe, W. S. & Co.;
loans to from N. Y. Life (G. W. P.), 954-939
joint account with N. Y. Life in C. B. & Q. (F. H. S.), 390-392
synclleate participations of: — Atlantic Coast lyine bonds iQ. W. P.),
702, 704; Canadian Northern (G. W. P.), 704; Central Pac. KaJlwiiy
1st i-efunding 4's (G. AV. P.), 099, 700^701; Errie convertible 4's (G. W.
P.) 574-579, oSf), 581, 697, 698; Japanese syndicate (J. C), 224; L. I.
refunding 4's (G. W. P.), 685-690; New Orleans traction syndicate
(M. M. M.), 721-726; couuectdon of, with N. Y. Life, in New Orleans
deal (E. R. D.), 375, 376; Northern Pacific-Great Northern (G. W. P.),
693, 694, 695; U. S. of Mexico (G. W. P.), 704
Farr's Tables:— 1980, 3844-3845
Farson, Leach & Co.:
participation of in Boston City joint account (G. W. P.), 602-606; in
Jersey City 4's (G. W. P.), 687; in L. I. City 41/2's (G. W. P.), 679-68G;
in Queens County 4's (G. W. P.), 683-685
Federal supervision of insurance:
constitutionality and advisability of (W. F. T.), 1200-1201
J. F. Dryden's views regarding, 3790-3795 ; protection' of American com-
panies abroad, 378'0-3791; dealing with fraudulent companies. 3791-
3792; uniform code of laws, 3792-3798, 3794
attempt of ins. cos. to influence (J. A. McC), 1139-1140, (W. T. T.),
1188-1195
bills concerning (W. F. T.), 1190-1200
Ferguson, C. H. (former gen. agt for Mut. Life in Chicago)
relations of, vHth Mut. Life (G. T. D.), 1315
Fidelity Mut: ■ ■
revocation of license of (H. D. A.), 4470
Fidelity Thrust Co.:
directors of (J. F. D.), 3780-3781
connection of officers of Equitable Life with (J. F. D.), 3665-3666, 3668
relations of, to Prudential Ins. Co.; transfer to, of control of stock of
Prudential Ins. Co. (J. F. D.), 3657-3660; officers of Prudential Life
Ins. Co. on board of directors of (J. F. D.), 3661-3604, 3695-3700; de-
posits of Pi-udential Insurance Co., to gain control of (J. F. D.), 3661-
3663; shares of, held by Prudential Ins. Co., and shares of Prudential
lus. Co. held by Fidelity Trust (J. F. D.), 3661-3664, 3695-3700; deposits
of Prudential Ins. Co., with (J. F. D.), 3664-3665; rate of interest paid
by, to Prudential. Ins. Co., 3664; officers and stockholders of
Prudential Ins. Co., in control of (J. F. D.), 3666; litigation re-
garding arrangement of, with Prudential Ins. Co. (J. F. D.), 3681-3683;
rent paid by, to Prudential Ins. Co. (J. F. D.), 3778; stock and bond
dealings with Prudential Ins. Co. (Newark Consolidated Gas Co.),
(J. F. D.), 3781; members of finance committee of, and their partial
securities and liabilities of (J. F. D.), 3787
stock ownership of; shares held by Equitable Life (J. F. D.), 3G63;
shares held by Prudential Ins. Co., 3661-3664, 3695, 3700
Index — Witnesses and Exhibits. 521
— " - , ,
Exhibits — Continvied :
syndicate participations of (J. P. D.), 3789; in 0. B. & Q. purchase (H.
R. W.), 849
Fields, Andrew C:
aiEdiavdt by pliysiicians of (ex. 271), 1460
connection of, with Mut. Life (W. R. G.), 1356, 1357, (R. A. McC), 1456-
1466; superintendent of supply department, Mut. Life (F. C), 505;
connection of, wiith corporation interests other than Mut Life (W. JI.
C), 1587, 1588
relations of, with P. F. Dutcher & Co. (J. J. C), 1517
connection of, with N. Y. Life (J. A. McC), 1142
residences of (J. J. C); in Albany (W. M. C), 1575-1577; C. P. McC's
testimony, concerning house of, in Albany, 3037-3043; attendance of,
In Albany during legislative season (W. M. C), 1586, 1587; time spent
In Albany by (M. E. M.), 2006, 2007
activity of, in insui-ance matters in Albany (C. P. McC), 3035, 3037,
3039, 3041; scope of legislative interest of (W. M. C), 1589, 1590; legis-
lative activity of (J. K. A.), 2606-2608; connection of, with C. P. Mc-
Clelland (C. P. McC), 8031-3044; memoranda of Mr. Jordan to, regard-
ing legislation (1888-1902), (M. E. M. and ex. 354-356), 2197'; vouchers
•-of payment recommended by (R. A. McC), 462, 463; voucher of Jan.
7, 1904 (R. A. McC), (Mut. Life), 1508; voucher for money paid M. E.
Mullaney by (ex. 321), 2005; employment of M. B. Mullaney by (M.
E. M.), 2003
oonneotion of, with payments to C. P. McClelland (C P. McC), 3044-
3051, 3208, 3209
acquaintance of L. F. Payn with position of (L. P. P.), 4500. See also
Mut. Life
Fifth Avenue Trust Co.;
connection of, with Mut Life in Jap. bonds transaction (F. C), 443, 446,
447
Fire Insurance:
methods of insurance cos. regarding (G. ft. B.), 2880-2833, 2835 (see also
individual cos. and testimony of Hyde, Brown and Jordan)
First Nat. Bank of Binghamton:
consolidation of (C M. T.) 3455
First Nat. Bank of Chicago:
rate of interest paid by, to N. Y. Life (1904-1905), (B. D. R.), 368
First Nat. Bank of New York:
balances of Mut Life with (G. F. B.), 484; accounts 1 and 2 with
N. Y. Life (E. D. R.), 366; rate of interest paid by, to N. Y. Life
(1904-1905), (E. D. R.), 868; N. Y. Life's renewal with, of previous
arrangements with N. Y. Sec. & Trust Co. (E. D. R.j, 367; relations
of, with N. Y, Life (E. D. R.), 544, 547, 548
Flske, Haley (vice-president of Metr. Life):
testimony of, 88, 95, 97, 102, 2176-2196, 3797-3799; on actuarial mat-
ters, excess, arrears, 2170-2180; on four complaining letters from
policyholders, 2180-2182 ; on lapses in industrial business and loss to
company therefrom. 3802-3812, 3S13-3S28; on release of reserves by
622 index — Witnesses and Exhibits.
Exhibits — Continued :
surrender and lapse, 3828-3830; on proportion of insured who get
no returns, 3831-3833 ; on Increasing age and endowment iioiities
and whole life, 3848-3652; statement of, regarding cause of higher
mortality rate in Mass., 3705-3706; on agencies: on treatment of
agents in Metr. Life, 2183-2186; on salaries of superintendents, 2182-
2184: on question of branch offices, instead of agents, 3839-3842; on
Intermediate department, 3837-3838 ; on ban!; balances, 531 ; on child
insurance, 3842-3843: on his efforts to defeat legislation against child
insurance, 3798-3799; on question of reduction of expenses, 3835-3H42;
on legislative action to assist reduction of expenses, 3853-3854; on
relative expenses of industrial and ordinary business, 3835-3837; on
expenses of industrial business, 3830; on legal expenses of Metr.
(Ex. 352, 353), 2187-2190; on sharing of legal expenses between Metr.
Life, John Hancock and Prudential Ins.. 3797-3799; on financial
operations: value of L. S. & M. S. stock, and connection of Mr.
Kead with sale of, 3853-3855; purchase liy Metr. Life of L. S. & M. S.
R. R. stock from G. P. Butler & Co., 3799-3802; Wabash-Pittsburg
Terminal syndicate, 522-524; Western Maryland R. B. syn., 529; on
mutuality of Metr. Life, 3351-3853; disbursements (Metr. Life), 533;
on investments of Metr. Life, 532; on his connection with other com-
panies than Metr. Life, 111; on industrial insurance companies taken
over by Metr. Life, 2191-2196
Fiisk, H. & Sons:
participation of, in Washington Terminal (G. W. P.), 601; letter from,
to Washington Life on participation In Bethlehem Steel Co. syn. (J. T.),
4159
Ftzgerald, Louis:
resignation of, as trustee of Bquit. stock (W. A.) 122
connection of, with Mercantile Trust Co. (J. H. S.), 1022; subscription
of to Missouri Safe Deposit Co., 2318
syndicate participations of Chic. & Alton syn. of March, 1899 (G. H. S.),
2539; C. B. & Q. purchase (H. R. W.), 849; Penn Coal purchase syn.
(H. R. W.), 799-800, 839-841; (G. H. S.), 2548; Pittsburg & Toledo syn-
dicate (H. R. W.), 847; in Union Pac. purchase money syndicate
(J. H. S.), 1021, (G. H. S.), 2538; Union Pac. Reorganizatioli syndicate
(H. R. W.), 828-831, (J. H. S.), 1020-1021, (G. H. S.), 2538; In Union
Pac. stock syndicate (.T. H. S.), 1021
connection of, with negotiations with Kuhn, Loeb & Co. (J. H. S.),
1015-1017; syndicate allotments to, by Kluhn, Loeb & Co. (J. H. S.),
1020-1024; list of participations of, in Kuhn, Loeb & Co.'s syndicates
(J. H. S.), 1024-1027; interest of George Gould represented by, in
Kuhn, Loeb & Co.'s syndicates (J. H. S.), 1024
Fitgerald, L., and associates:
participation of, in syndicates managed by Kuhn, Loeb & Co. (J H S.),
1027
Fleming Bros.:
loan of, with U. S. Mortgage & Trust Co. (G. T. D.), 1321
Fonda (3d vice-president of Mut. Life):
duties of, in Mut. Life (R. H. AfcC), 1288
Indeoi — Witnesses and Exhibits. 523
Forbes (general agent of Mut. Life in San Francisco):
relation of, to Mut. Life (G. T. D.), 1314
Foreign business of insurance companies:
J. F. Dryden's views on, 3795; success of Australian Co., due to lower
exi)enses, good management, etc. (G. T. W.), 2850^2853; Equit. Life's
business in Berlin, Vienna, Madrid, and Australia (F. W. J.), 2843-
2845; statement of French business of Bquit. (Ex. 513), 3010-3011;
Germanla (C. D.), 4195-4199; Mut. (R. H. McC), 1200-1210; N. Y. Life
(Exs. 212, 213, 214, 216), 983-998; rebating (G. T. W.), 2849; (see also-
individual cos.)
Forpman, Allan:
connection of, with " Journalist " (0. J. S.), 1748
Foster vs. Mut. Res.:
controversy regarding increased assessments (G. D. E.), 27S8-2770
Franklin, MoiTls (president of N. Y. Life, 1877-1885):
salaries of (E. D. R.), 214
Fraternal assessment organizations:
attitude of Insurance depairtment towards (H. D. A.), 4450, 4451
Preylinghuysen, Frederick (president of Mnt. Ben. Life): (E. E. R.), 83
Franklin Nat Bank:
partlcipatloQ of. In R. R. Securities Oo., syndicate (H. R. W.), 843;
connection of, with Kuhn, Loeb & Oo. (J. H. S.), 1034
French insurance law:
provisions of, for investment of reserve, and annual accounting on
deferred dividend policies (G..T. W.), 2852-2854; prohibitive of Mut.
Life business (F. 0. C), 4574, 4575
Frick Committee:
report of (ex. 30), 145; reference of to Philadelphia, Baltimore &■
Washington bond syndicate, 822-823; non«xamination by, of Squii-e,
Hartley and Alexandeo- accounts of Equit. (E. H. H.), 2362
Fricke, W. A.;
relations of, with Mut. Life (O. A. P.), 1296, (R. A. McC), 1471-1473
Fuhrer, John:
testimony of, 4218-4225, 4228-4230, 4258; on comparison of theoretic
and actual value on policies in Germania, 4258; on difCerence between
reports to German government and reports to the S.tate of New
York, 4224-4225
G.
Gain and loss exhibit:
advisability of, in annual staitement to insurance department (H. D. A.),
4477-4482; exhibit prepared by Dawson, of companies doing business
in state of N. Y. (Ex. 986), 4756
Giansevoort Bank:
account of Life Association vnth (H. P. T.), 4055-4062
loans to H. P. Tovsmsley on stock of Life Association (H. P. T.),
. 4055; to Townsley and Van Schaick (H. P. T.), 4056-4067; to W. H.
Wlemer, of Philadelphia (H. P. T.), 4067
524 Index — Witnesses and Exhibits.
Gardner, connection of, with State Insurance Department (F. H.), 420O-
4261.
German American Building:
transactions of Metr. Life conoei-ning (F. H. E.), 2142-2145
Germania:
banlv balances for 1905 (C. D.), 4212; reduction of (C. D.), 4212-4215
bonds, list of, sold in TJ. S. (Ex. 813), 4200; list of, sold abroad (Ex.
814), 4200
commissions, scale of (Ex. 815), 4211
dividends; declaration and apportionment on (J. F.), 4222; methods of
calculating (J. F.), 4219-4224, 4228-4229; distributions of in 1905 (Ex.
825), 4258; to stockholders (C. D.), 4187
estimates; practice regarding (C. D.), 4215; book of (Ex. 826), 4258
exhibits (for contents see under general heading exhibits), 808, 809,
810, 811, 812, 813, 814, 815, 816, 817, 818, 819, 820, 825, 826
expenses; amount of (C. D.), 4215-4218; ratio of to loading (O. D.),.
4215, 4217-4218; reduction of in 1905 (C. D.), 4215-4216
foreign business (C. D.), 4195-4196; comparison of foreign and domestic
business of (O. D.), 4196-4199
gains of 1904 (J. F.), 4222
industrial insurance, attitude of company toward (C. D.), 4199-4200
insurance, amount of, in force (C. D.), 4187-4188; proportion of total
business in State of New York (C. D.), 4199
investments (O. D.), 4192-4195; statement of purchase of securities
(Ex. 811), 4200; purchases in Germany since 1895 (Ex. 812), 4200;
statement of securities owned (Ex. 818), 4212
legal and legislative expenses and interests; legal expenses (C. D.),
4211; interest of company in Allied Real Estate Interests Lien Bill
(O. D.), 4188, 4190-4191; contributions to Allied Real Estate Interests
Lien Bill (E. C. P.), 4200-4206, 4208-4210; interest in Mortgage Tax Bill
(C. D.), 4190-4192, (E. C. P.), 4206, 4207; statement regarding legisla-
tion (Ex. 810), 4188
loans of, on collateral (C. D.), 42O0 (Ex. 817), 4211-4212
mortality, experience regarding comparative mortality in Gennany
and America (J. F.), 4229-4230
oflSeers, salaries of (C. D.), 4216-4217
organization and ehartei- of (G. D.), 4184-4187
policyholders, voting power of (O. D.), 4186-4187; cash payment to
Buckley, on lien bill (B. C. P.), 4209-4210; letter to policyholders on
proxies (Ex. 809), 4187
premium notes (0. D.), 4196-4197
proxies (C. D.), 4187
surplus, amount of (O. D.), 4188; discussion of (J. F.), 4220-4224; state-
ments of (Ex. 820), 4228-4229
syndicate panticipations (O. D.), 4230
taxes, rebates on (J. J. M.), 4542
Gibbs, F. N. (treasurer of N. Y. Life, 1892-1900):
salaries of (ex. 37), 215; connection of, with Toronto, Hamilton & Buffalo
transaction (F. H. S.), 383-385; connection of, with campaign con-
Index — Witnesses and Exhibits. 525
Gibbs, F. N.— Continued :
fributions of N. Y. Life (J. A. McC), 1134-1137; connecUon of, with
loan of securities (E. D. R.), 2978-2979 ,
Gilbert, Clinton (broker) :
purchase from, of Lawyers' Title Ins. Co. stock by Williamson and
Squire for Equit. (G. H. S., Jr.), 2385-2336
testimony of, on his purchase and sale of stock in Lawyers' Mort. Ins.
Co., 4489^493
Gilbert, William T. (counsel for Prov. Say. Life) :
statement of on gains and losses for 1904, in Prov. Sav. Life, S961
testimony of, 4000-4002, 4000-4018; on amount of loan made on Waco,
Texas, property in 1902, 4000; on book value of Waco, Texas, prop-
erty in 1902, 4002 ; on method of arriving at book value of real estate
of Prov. Sav. Life, 4002; on difference of market value of property
owned by Prov. Savings Life in 1900 and 1902, 4003; on sources of
information for Prov. Savings Life's report for 1902, 4004; on Savan-
nah, Georgia, property of Prov. Savings Life, 4005-4006, 4007-4009,
4012-4013; on enhancement of value of real estate by Prov. Savings
Life, 4006-4007, 4013-4014-4015; on Broadway property of Prov. Sav-
ings Life, 4008-4010; on plottage of real estate, 4009-4010; on Mamaro-
neck property of Prov. Savings Life, 4010-4013 ; on reasons for dis-
posal of, and loan on Englewood, Mamaroneck and Savannah proper-
ties, 4013-4014; on acquisition and value of Robinson and Tully prop-
erties by Prov. Savings Life, 4015; on acquisition by Prov. Savings
Life of properties on 106th, 112th, 113th Street, 4016
Gilchrist, John; Auditor of Security Department account (F. W. J.), 2836;
testimony of, on collateral loans in the Equit, 2437-2448
Gill, Mrs. Alice :
real estate transactions of, with Prov. Savings Life (W. T. G.), 4007
Gillette, Walter R. (vice-president of Mutual Life) :
position of (R. A. G.), 29; (R. A. McC), 1397-1398; duties of (W. R. G.),
1364
relations of, with C. H. Raymond & Co. (R. H. McC.), 1256; (W. R. G.),
1346-1347
responsibility of, in Mut. Life campaign funds (R. O.), 1333-1334; in
Olyphant loans (R. O.), 1330, 1331, 1333, 1334
testimony of, 1345-1371; on contract of Mut. Life with 0. H. Raymond
& Co., 1346-1347; on contracts with Chamberlain & Gillette, 1350; on
agency Items of Mut. Life, 1367-1368; on legal expenses of Mut. Life,
1349-1352, 1365-1367; on campaign funds (Mut. Life), 1352-1353, 1356-
1369; on department of supplies in Mut. Life, 1356-1357; on office fur-
niture account of Mut. Life, 1368-1369; on policy of Mut. Life on
salaries, 1368-1369
Gillespie, Lawrence (employe of Equit. Trust Co.) :
testimony of on purchase and sale by American Deposit & Loan Co., of
stock of Lawyers' Title Ins. Co., 3002-3004
Girard Nat. Bank of Philadelphia :
account of Washington Life with (J. T.), 4151-4152
Globe Mutual :
loans on sub-standard risks (J. A. McC), 1107
61
^26 index — Witnesses and Hxhihits.
Globe Printing Co. :
connection of L. W. Lawrence with, 1552-1557; relations of, with Law-
rence & Co., 1487-1488, 1564-1565, 1567, 1571; relations of, with Mut.
Life (R. A. McC), 1484-1485, 1487, 1488-1493
Golding, John M. :
connection of with Andrew Hamilton and N. Y. Life (J. A. McC), 621-
622
payments and checks to, from N. Y. Life (B. D. R.), 542, 543, 545-548;
(C. D. W.), 549; March 22, 1904 (ex. 81), 592; 4 checks to (exs. 84
to 92 inclusive), 614-615, 620; March 24, 1904 (ex. 85), 616, (ex. 86),
616, (ex. 88), 616; March 21, 1904 (J. A. McC), 619; March 22, 1904
. (J. A. McC), 619
Goldman and Sacks:
connection of, with Chicago & Alton syndicate (E; D. R.), 343, 367, 368:
(G. W. P.), 681-684; relation of, to N. Y..Life in Chicago & Alton
transaction (F. H. S.), 386-3S8; participation of. In Chicago & North-
west 3%'s (G. W. P. and M. M. M.), 671-678; participation of, in
Missouri Pac. 5's (G. W. P.), 680-681; participation of, in N. Y., On-
tario & Western (G. W. P.), 677-679
Gore, J. K. :
statement of, regarding premiums from industrial business, 3048 ; regard-
ing participating business of Prudential Insurance, 3699; regarding
percentage of industrial policies reaching fifteenth anniversary, 3719;
testimony of, regarding percentage of Industrial policies reaching fif-
teenth anniversary, 3722
testimony of, 3722, 3728-3754 ; on payments and benefits to policyholders
. and comparison of, with gains of company, 3728-3749 ; on increase of
surplus, 3734, 3754 ; on sub-standard risks, 3749-3754 ; correction of his
own testimony on sub-standard risks, 3767
Gould, George:
interest of, represented by L. Fitzgerald in Kuhn, Loeb & Co.'s syndi-
cates (J. H. S.), 1025; sale to of Mercantile Trust Co. stock for $500
(J. H. H.), 2324
Graham bill:
connection of W. S. Manning with (W. S. M.), 2819-2821
Grannis, Robert A. (1st vice-president of Mut. Life):
connection of with legislation department (W. T. T.), 1189, 1190, 1193,
1198; responsibility of, in campaign funds of Mut (R. O.), 1334, (W. E.
G.), 1353
increase of salary of, in 1902 (R. A. McC), 1397
testimony of 16-37, 1336-1345; on his connection with other companies
than Mut. Life, 16; on election of trustees in Mut. Life, 18-21; ou
proxies, 21-26; on officers, their election and duties, 27-31, 32-33; ou
committees, 31-32; on members of Finance Committee, 33-34; correc-
tion of his own testimony in regard to members of Jinance Com-
mittee, 149, on list of policyholders, and notices of meetings, 34-37;
on campaign funds, 1336-1340; on the Olyphant checks, 1340-1345;
on poUcy of Mut. Life, regarding legislation, 1343-1345
Index — Witnesses and Esphihits. 527
Great Britain:
agency methods in (H. M.), 3995-3096 (see also under English insurance)
Great Northern Kailway Co.:
connection of, with 0. B. & Q. Railway stock (H. R. W.), 858-859
Greaves, Henry (clerk of Equit. Life):
testimony of; on G. H. Squire, trustee account, 894-900, 902-918, 920-
922
Gretsinger, Charles C:
testimony of on profit and loss account of Mut. Life, 4353-4355
Grubbs, Judge:
representative of Mut. Life's interests in Kentucky (W. F. T.), 1191
Guarantee Trust Co.:
dividends paid by (F. C), 162, (R. A. McC), 1598-1599 .
•connection of G. G. Haven with (G. G. H.), 4547
bank account of Life Asso. with (H. P. T.), 4062-4077
organization of, as associate of IMutual (W. G. O.), 37; stock owned in,
by Mut. Life (F. C), 152-162; value of stock of (F. 0.), 466-467; direc-
tors of, also directors of Mut. Life fG. F. B.), 485; bank balances oC
Mut. Life with (F. C.) 495-497; loans upon and assignments of policies
(P. C), 506-507; deposits of Mut. Life with .(G. G. H.), 4547-4549, 4667;
transactions of with Mut. Life in Cuban bonds (F. C), 156-158, 189;
in Jap. bonds (P. C), 441-447; Lawyers' Mortgage Co. stock (N. D. P.,
Jr.), 4376-4378, (P. C), 4568 (G. G. H.), 4555; in Missouri Pac. 4's trans-
action (P. O.), 490-495
H
Hadley, Frank R., connection of with Provident Savings (E. W. S.), 3618-
3625: acquisition by, of stock in Prov. Savings (E. W. S.), 3618-3620;
loans to, by Prov. Savings (E. W. E.), 3622-3623; loan to, from Con-
tinental Trust Co. on Prov. Savings' stock (E. W. S.), 3623; conditions
leading to presidency of (E. W. S.), 3627-3628
Hall, David, bonds and assessments on policy of, in Mut. Res. (G. D. E.>,
3025-3027
Halle, connection of, with collateral loans of Equit. (J. G.), 2447
Halsey (agent of Mutual Res., in Baltimore):
account of with Mutual Reserve and refusal of Mr. HofEecker to audit
same (G. D. E.), 3219-3221
Halsey, N. W. & Co.:
oonneetion of, with U. S. Life (J. P. M.), 4588
I-Ialstead & Hodges, purchase from, by Equit. Life of 0. B. & Q. joint
4's (H. R. W.), 853, 855
Hamilton, Andrew:
account of: with N. Y. State Nat. Bank of Albany (J. M. McC), 659-
660, 661. 2956; with Albany Trust Co., (J. P. McC), 611; (G. C Van T.
and ex. 160), 826-828; testimony of N. P. Tower concerning checks of,
1160-1167; with Citizens' Central Bank (ex. 144), 762-763; with J. P.
Morgan & Co. (G. W. P.), 2905; personal account of (J. A. McC), 627-
<5'8- payment of $16,000 on account of Union Savings Bank (exs. 554,
555) (W. V. K.), 3080-3081; checks and drafts of (J. P. McC), 659-662
528 Index — Witnesses and Exhibits.
Hamilton, Andrew — Continued :
accounting of, of disbursements (T. A. McC), 624-625, 1149-H51; guar-
antee of J. A. McCall for money unaccounted for by Hamilton, 625;
accounting of, desired by Insurance committee, 2158-2159;« J. A. Mc-
Call on whereabouts of, 2157-2158; action of Board of Trustees regard-
ing accounting of (S. A. McC), 2167; efforts made by N. Y. Life to
get testimony of (J. C. McC), 3064-3065; testimony of J. C. McC. on
getting statement from, 4434-4451; inability of to produce check-books
and checks (J. C AIcC), 4374
disbursements, interview with J A. McCall (1901) regarding (J. A.
McC), 2933-2934; and percentage on and rStainer (J. A. McC), 2934-
2937
connection of, with Equit. liife; statement of payments made to (ex.
221^ 1053-1060; checks to, from Equit. Life (ex. 227), 1055; (ex. 229),
1056; vouchers of payments to, from Equit. Life (exs. 222, 223, 224,
225, 226), 1053-1055; (ex. 228), 1055-1056; (exs. 230, 231, 232, 233, 284,
285), 1057-1059; annual retainer of, from Equit. Life (A. W. M.), rela-
tions of, with J. M. Golding (J. A. McC), 621-622
law practice of (J. F. McC), 658-659
legislative bureau of; nature of (A. H.), 4419-4428; legislative repre-
sentation by, for N. Y. Life (J. A. McC), 611-633; control of, in ins.
legislation in U. S. & Canada (J. A. McC), 1137-1140, 1149-1151;
connection of, with Equif. regarding legislation (A. W. M.), 1052-1061.
1068-1072; connection of, with other insurance societies than Equi-
table (A. W. M.), 1060-1061; reports of, on legislation and on disburse-
ments (A. W. M.), 1052-1053, 1057, 1059, 1070, 1071; jurisdiction of,
in legislative matters (A. W. M.), 1068-1070; appearance of, before
legislative committees (A. W. M.), 1071; acquaintance of L. F. Payn
with position of (L. F. P.), 4501
connection of, with Metr. Life (ex. 347), 2067-2068
connection of, with Mut. Life, payments to, by Mut. Life (A. W. Mayne),
1070; vouchers to, from Mut. Life (R. A. McC), 1468-1469
conaection of, with N. Y. Life (G. W. P.), 592-593; (J. A. McC), 610'-612;
payments to, on real estate account, items aggregating $235,000 (J. A.
MoC), 612-655; checks of, from N. Y. Life (E. D. R.), 540-542, 545,
(C D. W.), 548-553; (ex. 79), 591; (ex. 84 to 92 inclusive), 614, 615;
(ex. 88), 616; (ex. 89), 620; (ex. 92), 619; (ex. 95), 621-622; (ex. 96),
621-622; statement of legal payments to (ex. 228), 1138-1139; (ex. 867).
4436; payments of through branch offices (J. A. McC), 1149-1150;
statement of payments to, 1904 (ex. 262), 1251; payment to, out of do-
debentures of Union Savings Bank and Trust Co. (J. C. K.), 2995-
2998, 3000-8001; payments to, of $59,810.79 out of syndicate profits
of N. Y. Life (M. M. M.), 2856; payment to, of $59,310.79, by N. Y.
Sec. & Trust Co., for N. Y. Life (G. W. P.), 2896, 2899; payments to,
from N. Y. Sec. & Trust Co. (ex. 554-557) (W. V. K.), 3081-3084; pay-
ment to of $488,705.50 (G. W. P.), 2908; confidential nature of pay-
ments (G. W. P.), 2905; ignorance of Hamilton concerning methods of
payment to him (A. H.), 4431, (J. C. Mc), 4447, 4448; loans to, from
Index — Witnesses and Exhibits.
V
Hamilton, Andrew — Continued :
N. Y. Life (G. W. P.), 727-729; for payments in taxes suit, see " con-
nection of, with tax legislation'"
notes of (ex. 478-486), J. A. McCall's testimony concerning, 2934-2945,
2953-2956; (exs. 478-484), 2897, 2898; (ex. 485, 486), 2898.
connection of, with Prov. Savings (B. W. S.), 3638-3639
payments by Prudential Ins. Co., legal expenses (J. W. D.), 3672-3673
report of, to Prussian government (J. C. Mc), 4447
residence of (B. D. R.), 55.3
statement of, to board of trustees of N. Y. Life, 4418-4433; regarding
need of a confidential bureau of legislation for insurance companies.
4419-4422; regarding conditions confronting insurance companies in
matters of legislation and taxation, 4421-4425; regarding measures b.v
which adverse legislation was defeated, 4425-4428; regarding account-
ing for expenses, 4428-4432; on confidential character of his disburse-
ment, 4428, 4429; on $235,000 charged him, 4431; on results of his
services to policyholders, 4432; offer of, to place $100,0<X) in custody
of N. Y. Life (A. H.), 4432; (J. C. MeC), 4437; on discrepancy between
accounting of, and money paid him by N. Y. Life, 4437-4440; on rents
and clerk hire paid by, 4443, 4444, 4445
connection of, with tax legislation (J. A. McC), 1143-1147; payments to,
for winning tax suit (J. A. McC), 1143, 1145-1148, 1151, 1148, 1151;
$75,000 paid to, in taxes suit (C. D. W.), 1182-1184, 1183; payments
to, for recovery of taxes, 1901 (E. W. S.), 3639-3642; successor of B. E.
McCall in litigation over tax law of 1901, and names of domestic
companies represented by him (J, J. M.), 4538, 4539; foreign Insurance
companies represented by (J. J. M.), 4540-4542; non-connection with
rebates on taxes to Home Life (G. I.), 4560; payments by Prov. Life
in connection with tax case (E. W. S.), 3856; connection with U. S.
Life in tax rebate matter (J. P. M.), 4597-4599
Hamilton Trust Co.:
participation of, in syndicates (S. B. D.), 515, 517; bank balances of with
Metr. Life (S. B. D.), 531-532; deposits of Metr. Life without Interest
(J. K.), 2101
Hanauer, J. J.: . ^ .^,
transactions of, with Equit. in 1902 (G. E. T.), 2445; connection of, with
Kuhn, Loeb & Co. (G. B. T.), 2447
Hanover Nat. Bank:
account with, and rate of Interest paid by, to N. Y. Life (E. D. R.), 368:
(ex 72) 535-536; (ex. 78), 582; checks to from N. Y. Life (ex. 99A, Jan.
28 1904), 631; (ex. 100, Jan. 28, 1904), 631; record in account of sale
by N. Y.Life of $43,000 U. S. Steel bonds (ex. 475 & 475A), 2893
Han way, F. J.:
payments to, for special services by N. Y. Life, 4/62 , ^ , ,
Harnsheimer:-connection of, with purchase by N. Y. Life of Central
Pac. (G. P. W.), 701
Harper, B. B. (former president of Mut. Res.): ,n r^ ,^^
contract of Mut. Res. with, entitling him to commissions (G. D. E.),
2802-2804- copy of contract (ex. 988), 4756; commissions paid to (G.
530 Index — Witriesses and Exhibits.
Harper, F. B. — Continued:
D. E.), 2803; commissions to, and. to estate of (G. D. B.), 3179-3182;
payments on contract of (J. A. H.), 8366-3371 (W. A. B.), 3371-3372
(G. D. E.), 3372-3374; extracts from will of (ex. 446), 2803
low expenses during management of (G. D. E.), 2801-2803
policy form changed during administration of (G. D. E.), 2761, 3163
Harper, Mrs.:
payments to, on contract with B. B. Harper (J. A. H.), 3306, 3370. 3371
Ha«per, G. W. (treasurer of Mut. Res.): — salaries of (G. D. E.), 3025
Harper .Walter:— suit brought by against Mutual Reserve (G. D. E.),
3250-32.51
Harriman, E. H.:
connection of, with settlement of Odell-suit; conversation with Hyde
regarding (J. H. H.), 2.325, 2373-2374, (E. H. H.), 3250-2355, 2864-2365
connection of, with stock ownership of Bquit.; proposal to share Ryan's
stock (T. F. R.), 3469-3475; (enforced testimony of T. F. Ryan regard-
ing), 3645-3652, (E. H. H.), 2367-2359, 3809-3913, 3915-3916; threatened
legislative action of, against T. F. Ryan (enforced testimony of T. F.
R.), 3648-3652, (E. H. H.>, 3910-3912
connection of, with Union Pac. Pref. stock syndicate (H. R. W.), 812,
(J. H. S.), 1038, 1039, 1040-1041
loans to, from N. Y. Life (M. M. M.), 726-727
sale to of Mercantile Trust Co. stock at favorable price (J. H. H.) 2321-
testimony of, 2342-2872, 3899-3922; on origin of his connection with
Bquit. Life, 2.343-2344; on loan to him, from Equit. in May, 1901, 2344;
on J. H. Hyde's participation in Union Pac. Pref. stock syndicate,
2344-2348; on reasons for insurance companies dealing directly through
syndicate managers, 2348-2350; denial by, of knowledge of contribu-
tions for political purposes and legislation of Equit., 2350; on his
interview with J. H. Hyde and his connection with settlement of
Odell's suit, 2350-2355, 2804-2366; on interview of J. H. Hyde with
Gov. Odell, 2352-2353, 2354, 2365; on an interview of J. H. Hyde and
Gov. Odell and Mr. Colby in his office, 2352; denial by, of suggestion to
J. H. Hyde to settle Gov. Odell's claim, 2353-2354; denial by, of
knowledge of bill to repeal charter of Mer. Trust Co., 2353-2354; on
his interview with J. H. Hyde and the president regarding . former's
appointment as French Ambassador, 2355-2356, 2365-2866; denial by,
of connection between project of ,T. H. Hyde as ambassador and settle-
ment of Gov. Odell's suit, 2356, 2360; denial of suggestion on his
part that Frick com. would be favorable to Hyde, 2356; on his sugges-
tion to Hyde to move adoption of Frick report, 2366-2357, 2369-2371;
denial of effort on his part to purchase Hyde stock, 2357-23S8; ex-
planation of his former testimony regarding Equitable stock, 3914.
8915-3916; on his recommendation of appointment of Frick committee,
2867, 2372; on his offer of subscription to help hold Hyde stock, 2368,
2359, 2371; on appearance of Union Pac. Pref. stock syndicate in
Frick report, 2369-2360; on Odell's letter advocating ambassadorial
appointment of J. H. Hyde, 23i60; denial by, of knowledge of syndicate
transactions of Hyde and Associates, and of consultation with Kuhn,
Index — Witnesses and Exhibits. 531
Ilarriman, E. H. — Continued:
Loeb & Co., regarding allotments, 2360-2361; on his services as di-
rector of Equit. Life, 23161-2363; on slight control over or knowledge
of affairs of the company by directors, 2362-2364; on his connection
■with other financial institutions than Equit., and slight importance of
directors, 2866-2367; on his ideas as to improving management of
Equit., 23'65-2366; on his conversations with Ryan regarding Equit.
stock ownership, 3899-3000; on his exertions to have Ryan's nominee
elected, 3902; on his doubts regarding sincerity of Ryan, 3902, 3910;
on Ryan's selection of trustees without his knowledge, 3904; on his
Interview with Cravath at Metropolitan Club, regarding Ryan's stock.
3904; on his offer to buy one-half of stock of Equitable, 3906-3810;
on his reported threat to Ryan of legislative action, 3010-3912; on his
suspended exercise of Influence against Ryan, 3912-3913; on his poli-
tical influence, 3913-3914, 3915-3916; on his connection with legisla-
tion affecting mutualization of Equitable Life, 3914, 3915, 3916; on his
reli»tions to Odell, 3014-3915; on his communications with members of
legislature regarding prospective legislation, 3918-3922; on efforts of
Alexander faction, Piatt and Root, in Equitable mutualization pro-
ject, 3917-3918.
Hartley, Marcellus:
appointment of, as trustee of Equitable stock (W. A.), 117, 122; trustee
account of; loan from Equitable Life to (H. G.), 899-890; balance of,
credited to G. H. Squire, trustee, account (H. G.), 899, 905, (J. H. H:),
2217.
syndicate participations of, in C. B. & Q. purchase (H. R. W.), 849; in
• syndicates managed by Kuhn, Loeb & Co. (J. H. S.), 1026; in Penn.
Coal Purchase Syndicate (G. H. S.), 2548
Hartford Life Ins. Co. of Hartford (unexamined):
statement of, 4838-4842
history and administration of, 4839, 4840
commissions of, 4841
documents furnished by, 4838-4839
mode of apportioning dividends, 4841-4842
insurance of, in force Dec. 31, 1904, 4881
Investments of, 4880
legal retainers of, 4880
loans of, on collateral, 4881
salaries of, 4881
charges of, against stipulated premium law, 4455
Harvey, Fisk & Sons:
participations of, in Atlantic Coast Line, Louisville and Nashville Pur-
chase Money Syndicate (J. C), 226, 230, 231; In Atlantic Coast Line
(O. W. P.), 704; in Canadian Northern (G. W. P.), 704; in Central
Pac. Railway 1st Refunding 4's (2d purchase) (G. W. P.), 700, 701,
702; in N. Y. Central Hudson R. R. Co., 4:^ bonds, 1480 (J. C), 234-
235; in N. Y. City 31-2 bonds (G. W. P.), 690-691; in Pittsburg, Vir-
ginia & Charleston (G. W. P.), 690; in U. S. of Mexico (G, W, P.), 704;
in Washington Terminal (Q. W. P.), 703
332 Index — Witnesses and Exhibiis.
Hatsfeldt, L. :
connection of, with Henderson & Co. (C. H. R.), 479
Haven, George G. (trustee and member of finance and insurance committees
of Mut. Life) :
letter of, to Mr. Cromwell, regarding purchase of Lawyers' Mort. Ins. Co.
stock (ex. 865), 4550
syndicate participations of, in Cuban bonds (F. C), 405; where Mutual
Life was interested (ex. 908), 4664, (G. G. H.), 4557-4559
testimony of, 4542-4550, 4664-4669; on his linowledge of, and connection
with salary committee, 4543-4546; correction of his own testimony re-
garding appointment of salary committee, 4665 ; on his connection with
Guaranty Trust Co., Morristown Trust Co., Nat. Bank of Commerce,
Morton Trust Co., 4546; on relations of life companies to trust com-
panies, 4547; on amount of deposits of life companies with trust com-
panies, 4548, 4549; on Lawyers' Mort. Ins. Co. transaction, 4549-4557;
on his syndicate participations where Mut. Life was interested, 4557-
4559 ; on Wash. Electric R. R. stocks and bonds, 4559 ; on relations of
Mut. Life to Strong, Sturgis & Co., 4558
Haynes, A. C. :
advances to, from Equit. Life (G. B. T.), 2627; statement of total ad-
vances to (Frick report), 2637
Heath, Chas. E. :
connection of, with ^tate insurance department (F. H.), 4262
Hegeman, J. R. (pres. of Metr. Life) :
loans to, from N. Y. Life; securities of (G. W. P.), 711; memorandum
of (paper 139), 713; rates of interest on (G. W. P.), 944-945, 947-948,
(M. M. M.), 948
rebates and rates of interest to, from Vermilye & Co. (ex. 341), 2116-
2119, (G. T. H), 2121-2126, (W. A. R.), 2160; accounts of, with Ver-
milye & Co., Dec. 31, 1904^March 1, 1905 (exs. 342, 343), 2119-2121,
(W. A. R.), 2159-2163
syndicate participations of, (ex. 344), 2125-2130; responsibility of, in
Lake Shore, Michigan S. Railway Syndicate (S. B. D.), 525
testimony of, 1772-1784, 1920-1966, 2011-2020, 2055-2110, 2119-2121, 2125-
2188, 2167-2175; on twofold character of business of Metr. Life, and
stock and dividends of, 1772-1777 ; on his stock in Metr. Life, 1775-1777 ;
on loans to him from Metr. Life and low rate of interest on same,
1778 ; on loaris of Metr. Life, 1777-1784, 2073-2074, 2076-2085 ; on loan
to him from N. Y. Life, and rate of interest on, 1783-1784; on com-
parative premium rates in industrial and ordinary depts., 1921-1922;
on increase of premiums in Metr., 2056-2058 ; on comparative mortality
rates of industrial dept., and U. S., 1927-1930 ; on medical examination
and inspection in industrial dept, 1923-1929; on endowment periods
/; in increasing life and endowment, and in infantile policies, 1930-1933 ;
,.-,,, on use of increasing life and endowment tables, 2173-2174; on com-
irative mortality rates in industrial and ordinary depts., 1922-1923; on
ses and surrender values, and gains from surrender and lapse, 1933-
Index — Witnesses and Exhibits. 533
Hegeman, J. B. — Continued:
1940; on waiving of legal provisions regarding surrender values in
K. Y., but not in Missouri, 1962; on participating character of inter-
mediate policies, 1940 ; on ratio of expenses to income and to amount
said polieyliolders, 1941-1944; on different items in expense statement,
1945-1946 ; on salaries of Metr. Life, 1946-1953 ; on duties and salaries
of Comptroller Eckcrt. 1960-19G1 ; on his services to the Metr. Life,
1950-1951 ; on paid up insurance and cash surrender values, 1962-1964 ;
on paid up policies and term insurance, 2059-2062 ; on reason for limi-
tation of payment on paid up insurance to death within expectation
of life, 1964-1966 ; on distribution of dividends on non-participating
policies, 1966 ; on question of child insurance, 2012-2013 ; on mutual or
stock character of Metr., 2013-2014-; on influence of Metr. on legislation,
2014-2015 ; on campaign contributions and legislative interests of Metr.,
2067-2070; on industrial business of Metr., 2016-2017; on payment of
policies in industrial department, 2055-2056 ; on statements of market
value of securities, 2017-2020; on valuation of securities and accrued
interest, 2167-2170; values of securities in transactions of Metr., with
Vermilye & Co., 2130-2133; on complaints of policyholders and their
treatment, 2058-2059, 2063-2064 ; on organization, salaries, etc., of agency
dept., 1953-1960'; on jpeccaWlity of agents, 20<>5; on number of con-
tracts with superintendents and agents, 2C65-2066; on agents' surety
bonds, 2071-2072; on advance payments and ajrrears on lapses,
2174-2176; on relations of Mefci-. Life to Vermilye & Co.
and W. A. Read & Co., 2075-2076, 2078-2086; on payments
to him from Vermilye & Co. and W. A. Read & Co., 2105-2107 ; on his
accounts with Vermilye & Co., 2119-2121 ; on general syndicate transac-
tions of Metr. (exs. 349, 850), 2088-2096; on connection of Metr. with
Western Pacific R. U. bond syndicate, 2086-2088 ; on his individual par-
ticipation in syndicates with Metr. Life, 2089-2090, 2125-2129; on his
payment to M^tr. Life, on syndicate transactions (May or June, 1905),
2126; defease by, of his syndicate transactions, 2126-2128; on Metr.
and Nat. Shoe & Leather banks, 2096-2099; on his shares in Metr.
Bank, 2096 ; on his shares in International Banking Corporation, 2099 ;
on balances of Metr. in banks and trust companies (ex. 351), 2099-
2105 ; on his connection with Nat. Bank of Commerce of Kansas City,
2104 ; on his connectioQ with Hamilton Trust Co. and other companies,
2104-2105 ; on fire insurance of mortgages of Metr., 2107-2110 ; on real
estate operations of Metr., 2133-2138 ; on cost of Metr. Bank Building,
2134-2136; on book and market values of Mad. Square office building,
2150-2153
Henderson, Charles R. (trustee of Mut. Life):
testimony of, 479-484; on syndicate transactions of Mut. Life, 481-484.
responsibility of, in campaign funds of Mut. Life, In 1904 (W. R.
G.), 1354.
Henderson, Norman:
connection of, with Henderson & Co. (C. R. H.), 479
534- Index — 'Witnesses and Exhibits.
nendorson & Co.:
connection with C. K. Henderson and the Mut. Life (C. R. H.), 479-484,
participation of, in syndicates (0. H. H.), 482-483; in connection with
lint. Life (C. H. K.), 483-484.
Henry Bros. & Co.:
purcliase from, by Equit. Life of C. B. & Q. joint 4's (H. R. W.), 854.
HendricliS, Francis (supt. of ins.):
supplement by, to report of Mr. Vanderpoel on examination of Wash-
ington Life, 4115-4116.
testimony before, concerning Union Pac. pref. stocls syndicate (J. H. S.),
1045-1047.
testimony of, 4258-4310; on duties of superintendent of insurance, 4266-
4269; on scope of insurance department examinations, 4276-4287; on
limitation of examinations to question of solvency, 4267-4268, 4270-
4272, 4288-4289, 4305-4307; on admission to New Yorli State of Prus-
sian life, 4263-4266; on admission of companies to N. Y. State, 4266;
on advertising matter, 4267; on estimates, 4268; on filing of policies,
4268-4269; on contracts with agents, 4270; on examination of Mut.
Life, in 1895, 1899, 1903, 4272-4276, 4278; on examination of N. Y. Life
by state department, 4280; on examination of Security Mutual, 1903,
1904, ISO'S, 4279-4280; Dec. 1899, 4286-4297; on statements of legal dis-
bursements, 4280-4282; on annual reports, 4282-4284; on examiuatioa
of Equitable, 1902, 4284-4285; in 1905, 4308-4309; on contributions
toward legislation, 4285-4286; on gain and loss exhibit, 4286; on
amended form of report, 4286-4287; on reforms in insurance law,
4287-4288; on distinction between fraternal and assessment organiza-
tions, 4288; on assessment companies, 4289-4299; on the Empire Life,
4289-4290; on. Mut. Res., 4292-4295; on Provident Savings Co., 4297;
on examination of Life Association of America, 1903, 1904, 1905, 4297-
4299; on examinations of Metr. Life, 4299; on number of examinations
possible with present staff, 4299; on staff necessary to double number
of examinations, 4299-43CO; on examinations of vouchers, 4300-4801;
on falsification of reports by Mut. Life, 4301; on falsification of re-
ports by Eqiait., 4301; on loan- by Equitable to Depew Improvement
Co., 4301-4303; on Equitable's participation in Union Pac. pref. stock
syndicate, 4303-4304; on agents' balances in Equit., 4304-4305; on re-
bating, 4305; on agents' notes, 4307; on making public names and ad-
dresses of policyholders, 4307; on charges made by state department
to companies for examination, 4309; on attitude of state department
toward repeal of section 56 of the insurance law, 4810; on pro-forma
examinations by clerics, 4310.
Hendricks, Kate:
connection of, with state insurance department (P. H.), 4262.
Hendrix, Joseph C:
pension of, on retirement from Bank of Commerce (R. A. McC), 1550-
T551.
Hesse and Shingler:
letter to, from Prov. Savings Life, regarding policy No. 6£,856, of Cor-
nelius Chestnut (H. M.), 3978.
Index — Witnesses and Exhibits. 535
Hill, Gov. D. K.:
connection of, -with Bquit. (S. S. McC), 2483
voucher from, March 20, 1895 (S. S. McO.), 2483
retainer of, from Equit. in 1900 (S. S. McC), 2492-2493.
illness of, and willingness of to give testimony (Mr. Hughes), 6321
Hoagland, ,T. "W.: services of, to Bankers' Life during re-incorporation
(R. M.), 4241-4242, 4243, 4245.
retention of, by Bankers' Life foUo-wed by examination (H. D. A.), 44ti0.
Hodgson (general agent of Manhattan Life):
organizer of Manhattan Sec. Agency Co. (H. B. S.), 4637.
HofCecker, J. F. (auditor of Mutual Reserve)':
resignation of (G. D. E.), 3218
letters of asking for increase of salary (6. D. E.), 3255-3257.
Holden, .Tames C:
responsibility of, in 01yphan,t loans (R. O.), 1331.
Holden, W. J.:
legislative representative of Equit., Mut. and N. Y. Life, in Mass. (A.
W. M.), 1064-1065; (W. F. T.), 1191-1195-1196.
relations of, with Mut. Life (O. A. P.), 1296.
employment of, by N. Y. Life (J. A. McC), 1141-1142
Hoffman:
statement of, regarding claims paid on Slocum loss and premiums on
claims, 3774, 3776.
Hollister, George T.:
testimony of, on rebates and rates of interest to J. R. Hegeman from
Vermilye & Co., 2121-2123.
Homans, Shepard:
connection of, with Prov. Savings (E. W. S.), 3618
premium charges of Prov. Savings Life based by, on 80 per cent, of
American Mortality table (H. M.) 3936
form of policy originated by (H. M.), 3899
tables used, during time of (J. A. McC), 1080
ratio estimates of, for 1871, used as a basis for dividend calculations of
Equitable Life (J. G. W.), 4705-4714
Home Benefit Society :
name of present Empire Life until 1894 (S. W.), 4033, 4039
character of business of (S. W.), 4033-4084
reasons for change of name (S. W.), 4034
insurance in force at time ef change of name carried on, by rider at-
tached to old policies (S. W.), 4034
see also Empire Life
Home Life Ins. Co. :
trustee accounts (G. E. I.), 3544
agency department; management of (G. B. I.), 3675-3579; form of con-
tract (ex. 663), 3574^3575; advances to general manager (G. E. I.),
3577-3578; bonuses and prizes (G. E. I.), 3578; agents clubs (G. E. I.),
3578; agents' conventions (G. E. I.), 3578; expense fund of (G. E. I.),
3577; use of by estimate book of 1S91 (W. A. M.), 3600-3602; practice,
regarding circulars (G. E. I.), 3605
536 Index — Witnesses a^nd Exhibits.
Home Life Ins. Co. — Continued :
assets (G. E. I.), 3555
auditing of bills, practice regarding (G. E. I.), 3588-3590
Bank balances of (G. E. I.), 8549-3550
banking and broker's dealings of, with Benedict, Drysdale & Co. (G. B.
I.), 3552; with Vermilye & Co. (G. E. I.), 3551-3552
campaign contributions of (G. E. I.), 3545
commissions, renewal to agents who leave the company (G. E. I.), 3576;
renewal commissions in 1904 (G. E. I.), 3584; reduction of (G. E. I.)i
3579
contingent funds of (C. M. T.), 3536
dividends; methods of computing (G. E. I.), 3557-3560 ;. rule 8^ on guar-
antees of, 3601
dividends! annual, calculation of (W. A. M.), 3590-3594
dividends ; deferred, distribution of accumulations on, In cases of lapse
(G. E. I.), 3568-3569; advantages of annual accountings of (G. E.
J I.), 3566-3508; calculation of (W. A. M.), 3594r3599; pamphlet on (G.
E. I.), 3566, 3567; motives in favoring (G. E. I.), 3566-3572; circular
on allotments of (G. E. I.), 3572; practice of company regarding
(G. E. I. & W. A. M.), 3555-3562, 3564-3565, 3566-3573, 3594-3598;
distribution of amounts on, in case of death of policyholder (G.
E. I.), 3560-3561
estimates; on dividends, 3601; on deferred dividends (G. B. I.), 3573-
3574; on solicitation of business (W. A. M.), 3599-3605; comparison
of, to results ( W. A. M.), 3601-3602
exhibits (contents found under heading "Exhibits"), 656, 657, 658, 659,
660, 661, 662, 663, 664, 665, 666, 667, 668, 669, 670, 671, 672, 1007
expenses; comparison of, with other companies (W. A. M.), 3602-3605
fees; of directors (G. E. I.), 3588
insurance; amount of. In force (G. E. I.), 3544; investment, methods of
(G. E. I.), 3550-3553;- proportion of, in bonds and mortgages (G. E. I.),
3554-3555; average returns on bond and mortgages (G. E. I.), 3554;
average rate of interest on (G. E. I.), 3555-3556
joint account transactions of (G. E. I.), 3548
legislative measures of (G. E. I.), 3545-3547; attitude of, toward repeal
of section 56 of insurance law (G. E. I..), 3546-3548 ;, payments of, to
Nat. Protective Tariff Association (G. E. I.), 3545
legal expenses of, from 1890 to 1905 (G. E. I.), 3544-3547
loadings; ratio of, to premiums (W. A. M.), 3602-3605; ratio of, to ex-
penses (E. W. S.), 3611
loans; on collateral (G. B. I.), 3553, 3554, 3555; on deferred dividend
policies (G. E. 1.), 3569-3572; total of, to all kinds of policyholders
(G. B. I.), 3570; rate of interest on, to policyholders (G. B. I.), 3588
nepotism in (G. B. I.), 3543
new business; method of computing expenses of (G. B. I.), 3579-3584;
amount of, requisite each year (G. E. I.), 3584-3587
method of apportioning expenses between old and new business (G. B.
I.), 3583
officers of; commissions of, on business written (G. B. I.), 3548, 3549;
commissions of, on loans on bonds and mortgages (G. E. I.,) 3551;
Index — Witnesses and Exhibits, 537
H(ime Life Ins. C!o. — Continued :
commissions of, on securities (G. E. I.), 3548; names (G. E. I.), 3543;
salaries of (G. B. I.), 3543; syndicate participations of (G. E. I.),
3543
organization and administration of (G. B. I.), 3539-3543, 3587-3589;
charter of (ex. 656), 3539-3542
pensions of (G. E. I.), 3549
• policies, registration of (G. E. I.), 3588
proportion of business on annual preferred and non-participating poli-
cies (G. E. I.), 3547
policyholders; rights of, regarding information on their dividends (G.
B. I.), 3556-3557; participation of, in profits (art. 7 of charter), 3555;
right of, in elections (G. B. I.), 3587-3588; card indexes of (G. B. I.),
3559
premiums, renewal, 1904 (G. E. I.), 3584
real estate, expenses and value of Home Office building (G. B. I.),
3608-3609
rebates on taxes (J. J. M.), 4539, (G. I.), 4560, 4561
reserves, theory of special (G. B. I.), 3584-3585
salaries, of officers (G. B. I.), 3543
stockholdings of, in Colonial Trust Co. (G. B. I.), 3549-3550; in Corn
Exchange Bank (G. E. t), 3549
surplus of (G. B. I.), 3555
surrender values of deferred dividends (Ex. 662), 3561; on renewable
term policy (W. A. M.), 3611-3613; methods of fixing (W. A. M.), 3606-
3609
syndicate participations of (G. B. I.), 3544
Hopkins, G. B. & Co.:
purchase from, by Equit. Life of C. B. & Q. joint 4's (H. R. W.), 854,
855
Horan, J. A.:
relationship of, to J. A. McCall (J. A. McC), 1154
connection of, with Prov. Savings (E. W. S.), 3625-3626
Hotel Spalding:
transactions of Metr. Life concerning (P. H. E.), 2146
Howard, Joseph, Jr.:
conrection of, with Mut. Life (R. A. McC), 1463-1464
testimony of, on advertising business of Mut. Life, 2110-2115;
on his connection with Equit. Life, 2114
Howe:— duties of, in Sec. Mut. (C. M. T.), 3415-3416
Howell, Albert:
legislative representative of Equit, Mut. & N. Y. Life in Georgia (A.
W. M.), 1065
Hoyt, Howard H.:
duties of, in Equit. Life (G. B. T.), 2641-2642
ITubbard, R. K. (comptroller of Prov. Savings Life):
testimony of, 3961-3962, 4026-4028; on excess of expense over loadings
for 1902, 1903, 1904, 3961-3962; on reasons for difference in expenses
of 1903 and 1904, 3961; on amount of business written in Prov. Sav-
538 Index — Witnesses and Exhibits.
Hubbard, R. K.— Continued :
ings Life in 1902, 1903 and 1904, 3962; on transaction between Prov.
Savings Life and Stewart Brown in North American Trust Co.'s
stoclc, 4027
Hunt, Abel, C:
contract witb Mutual Reserve regarding royalty on policy form (Ex.
432 and G. D. E.), 2To4; (Ex. 609), 3289-3316
Hunter, Robert H. (deputy of Ins. Dept.):
duties of, in state department (P. H.), 4269, (H. D. A.), 1911; testimony
of, 4523-4536; on functions of N. Y. branch of ins. department, 4523,
4525, 4532; on examinations of Equitable Life, from 1897-1902, 4525;
on examination of securities of N. Y. companies, 4525-4527, 4531; on
his connection with examinations, 4527, 4528; on examination of
Mut. Res., 4528-4531; on examination of Burnliam, concerning Brock-
way, and non-reporting of same, 4528-4530; on his Investigation of
charges against Mut. Res. 4530, 4531; on method of dealing with
annual statements, 4532; on his connection with examination of
N. Y. Life, 4532; on his relations with Dr. H. R. Powell, 4535, 4536;
connection of, with Equit. (S. S. McC), 2488, 2489; voucher to, from
- Equit. Life, Oct. 11, 1897 (J. IC. A.), 2601-2604; voucher and card to,
from Equit. Life (Ex. 409A, 409B), 2603-2604; checks to from Equit.
(Ex. 415), 2603-2604, (J. K. A.), 2605
political relations of, with Apgar, October, 1807 (J. K. A.), 2608-2610
Hyde, Annie P.: — trustee of Equitable stock (W. A.), 116-122
Hyde, Henry H.:
relations of, with C. M. Depew (0. M. D.), 2418-2421
connection of, with Equit's transaction of King Model Houses (G. R.
B.), 2830
attitude of, towards limitation of insurance (E. McC), 1822-1823
safe deposit, leases of, stockholdings in Equitable at time of (J. H. H.),
2313-2317; purchase of stock in Mercantile Safe Deposit Co. (J. H.
(J. H. H.), 2318; stock holdings in Equitable Trust Co. of Boston
(J. H. H.), 2318; transference of stock in Equitable Safe Deposit Co.
to Mercantile Trust Co. (J. H. H.), 2318; subscription to stock of Mis-
souri Safe Deposit Co. (J. H. H.), 2319; payments to Mercantile
Trust Co. for three safe deposit co.'s (J. H. H.), 2319-2320
salary of, minutes of Finance Committee, and agreement regarding
(exs. 206A, B, D, E), 928-929, (C. M. D.), 2431-2432^
testimony of, on interest to stockholders, before investigating com-
mittee of 1877, 15
originator of tontine system in insurance (J. A. McC), 1094-3095, (0.
M. D.), 2418
trust created by, for J. H. Hyde (W. A.), 117-123
HYDE. J. H.:
ambassadorial project of (E. H. H.), 2355-2356, 2360, 2365 (J. H. H.),
2290-2291, 2295-2296; (B. B. O., Jr.), 2397; (C M. D.), 2430-243.1
connection of with Continental Fire Ins. Co. (J. H. H.), 2323-2324;
<Q. R. B.). 2833-2834
coiuifction of. M'ith Equit. Tiusl Co. (J. H. H.), 2207-2208; connection
Index — Witnesses and Exhibits. 539
Hyde, J. H. — Continued:
of, with Equit Trust Co., and Mercantile Trust Co. (J. H. H.),
2221-2222
director of Fidelity Trust (J. F. D.), 3666
attitude toward Frick report; suggestion of E. H. Harriman to move
adoption of (J. H. H.), 2295, (E. H. H.), 2356-2357, 2369-2371
connection of, wltli Lawyers' Title and Lawyers' Mort. In!». Co. stoclc;
his own testimony on, 2302-2309; purchase of stock by Williamson
and Squire (ex. 369, and G. H. S., Jr.), 2330, 2331, 2335; payment of
American Deposit -& Loan Co. for purchase of (G. H. S., Jr.), 2375-
2376; account with Williamson and Squire (ex. 943), 4735
connection of settlement of Gov. Odell's suit against Mercantile Trust
Co. (J. H. HO, 2287-2291, 2374-2375 (E. H. H.), 2351-2355 (B. B.
O., Jr.), 2394-2397
salaries of; in Equit. Life (C. J. S.), 1746-1750; (J. H. H.), 2201-2205
In Mercantile Trust Co. (J. H. H.), 2221
stock ownership of, in Equitable; indenture trust deed (W. A.), 116-123
assignments and transfer of stock to (W. A.), 125-126; transfer of
stock to T. F. Kyan (W. A.), 128-127; (J. H. H.), 2295, 2296-2297
codicil to will regarding (W. A.),' 127-128
syndicate participations of:
personal share in syndicates allotted to "J. H. Hyde and asso-
ciates," (J. H. S.), 1034-1035; Kuhn, Loeb & do., regarding " Hyde
and associates" (J. H. S.), 1031-1035; connection with Atlantic Coast
Line E. R. syndicate (H. R. W.), 806-809; participation in C. B. & Q.
purchase (H. R. W.), 849; (J. H. H.), 2241-2256; connection with
International Navigation Co., 1st mortgage bonds (H. R. W.), 819-822;
total allotment to, from International Mercantile Marin? Syndicate
(J. H. H.), 2209-2210; connection with Japanese 6^ bonds, 1st series
(H. R. W.), 823-824; relations to G. H. Squire, in Navigation syndi-
cate (H. G. and H. R. W.), 914-919; connection with Philadelphia,
Baltimore & Washington Bond syndicate (H. R. W.), 822-823; par-
ticipation in P. B. W. & L. I. Refunding 4's (H. R. W.), 881, 884,
886; i>articipation in Pittsburg-Toledo Syndicate (J. H. H.), 2241;
pai-ticipation in Pitfen-ed Toledo Syndicate (J. H. H.), 2238-2240;
connection with Union Pac. Pref. stock (H. R. W.), 812-819, 874-877;
(J. H. S.), 1038-1049; (J. H. H.), 2264-2276; (E. H. H.), 2343-2347;
testimony before Mr. Htendrlcks on U. P. pref. stock syndicate,
1045-1047; participation of. in W. M. R. R. Syndicate (J. H. 11,),
2263-2264; allotment to Squire in W. V. C. & W. M. syndicate,
2212-2216
testimony of, 2200-2296, 2298-2327, 2373-2374; on his salary and its
increase, 2901-2205; on his connection with financial operations of
Equit., 2202-2203;- on his connection with companies other than
Mutual, ?.205-2206, 2207-2208, 2221-2222, 2323-2324; on payments ou
executive order, 2206
on George H. Squire, trustee account, 2206-2217; on J. W. Alexiander,
No. 3 account, and Alexander and Jordan account, 2216-2231, 2284-
2286; ou contribution to liquidate iowi account witji Alexander and
540 Index — Witnesses and Exhibits. ">
Hyde, J. H. — Continued:
Jordan (J. H. H.), 2229; on connection of liquidation of loan with
sale of stock, 2229-2232
on political contributions of Equit. Life, 2219-2221; on legislative
interests of Equit. in Isdip and Suffolk Co., 2232-2235; on Influencing
Preneh legislation, 2234-2237
on syndicates of Equit. Life and his participation in same, 2206-2212,
2209'2210,_2237-2284; on Union Pacific pref. stock transaction. 2204-
2276, 2327-2328; on his compensation of $160,000 as syndicate
manager, 2325; on loan to Harriman, 2286-2287
on non-connection of Equit. with U. S. Shipbuilding Co. and
suit of Odell against Mercantile Trust, 2287-2288, 2302; de-
nial by, of connection with ship building interests, 2301; on
settlement of Odell suit, 2287-2291; on rumored repeal of charter
of Mercantile Trust Co., 2288, 2289, 2290; denial of suggestion by
Gov. Odell on attack of charter of Mercantile Trust Co., 2374; on
suggestion to him, by Harriman to settle suit with Odell, 2288.
2291; on place o* his conversation with Harriman regarding Odell
suit, 2325; reiteration of his testimony on suggestions of Harriman
to settle suit with Odell, 2373-2374
on his suggested appointment as Ambassador, 2290-2291, 2295-2296
on Harriman's attitude toward him, regarding Frick committee, 2291-
2293, 2295; on work of Frick Committee, 2293-2294.
on sale of stock to Kyan, 2295, 2296-2298; on offers to purchase Equit.
stock by HiaiTiman, Frick, Gould, Taxbell, and Young, 2298-2299;
on reduction in price of stock to individuals, 2324-2325
on Lawyers' Title and Lawyers' Mortgage Ins. Co. stock transaction,
2302-2309; denial byi of sale to Equit. of securities purchased on
his account, 2377-2378; on amount of money drawn by him from
Equit. for expenses (found in Hendricks' report), 2311-2312
on safe deposat leases of H. B. Hyde: — stockholdings of H. B. Hyde
in Equitable at time of safe deposit leases, with Mercantile Trust
Co., 2313-2317; safe deposit lease of Equitable with Equitable Safe
Deposiit Co. of Boston, 2317; orgamization of Security Safe Deposit
Co. of Boston, 2317-2318; on subscription of H. B. Hyde to stock
of Missouri Safe Deposit Co., 2318; on fire insurance of Fquit.
2323-2324; on sale to Mr. Gould of Metrcaiitile Trust Co. stock, for
$555, 2324
employment by, of T. F. Williamson (T. F. W.), 2379-2380
Hyde, J. H. & associates, account of (H. R. W.), 882; (J. H. H.), 2225-2229
participation of, in syndicates managed by Kuhn, Loeb & Oo. (J. H. S.),
1027-1028; letter from J. H. Hyde to Kuhn, Loeb & Co. regarding (J.
H. S.), 1081-1085; form of syndicate partioipatiQns of (J. H. S.), 1037-
1088
syndicate participations of, in Atlantic Coast Line R. R. syndicate (H.
R. W.), 866-869; (J. H. H.), 2257-2259; (ex. SOO), 2258; in Atchinsou,
Topeka & Santa Fe convertible 4's (H. R. W.), 887-888; in Interna-
tional Navigation Oo. 1st mortgage bond syndicate (H. R. W.), 880; in
In. Nav. Co. (J. H. H.), 2276-2278; in Jap. 6's, first series (H. R. W.),
Index — Wihiesses and Exhibits. 541
Hyde, J. H. — Continued:
884; in Phlla., Bait & WasliJngtoii & L. I. R. R. refunding 4's f.T. 11.
S.), 1036-1037; (H. R. W.), 882-884, 886; in Soutliem Railway Notes,
Seines C syndicate (H. R. W.), 878-879; participation of, in Southern
Pac. R. R. 1st Refunding 4's (H. R. W.), 886-887; 'in V. S. of Mexico
4 per cent, bonds syndicate (H. R. W.), 888; in Western Maryland
R. R. syndicate (H. R. W.), 871-873; (J. H. H.), 2263
Hyde, Squire and Melntyre:
joint account with Williamson and Squire (ex. 369 and G. H. Squire,
Jr.), 2329, 2383; (ex. 375, 375A), 2377; (ex. 940), 4735
Hyland, John A. (bookkeeper of Mutual Reserve):
testimony of an account of M. D. Moss; commission account, 323'l-3236,
3237-3238; advance account, 3238-3239; on charging legal expenses to
general, 3236-3237
I.
Ide, George E.:
testimony of, 3539-3589, 3600-3610; on investments of Home L.ife Ins.
Co., 3548-3555; on reserve for contingencies, 3555-3556; on deferred
dividends, 3555-3562, 3564-3565, 3566-3573; on advantages to pollcy-
' holder of defeaTCd system, 3564-3565 ; on rebates on taxes to Home
Life, 3562-3564, 3565; on conditions of American Life Insurance, 3562-
3564; on difficulties of annual accountings, 3572; on obtaining new
business, 3573-3587; on methods of computing expenses of new busi-
ness, 3579-3585; on Home Office building, 3609-3610
Illinois Central:
former custom of, to sell securities direct to company (B. H. H.), 2349-
2350
Illinois Central R. R. Stock:
R. R. Securities Co. organized for the holding of (H. R. W.), 844
Impairment Tables:
in New York Life (R. W. W.), 1103^1104
Imperial Bank of Germauy:
assets of, Aug., 1905 (R. A. MeC), 1428; salary of president of (R. A,
McC), 1428
Importers and Traders Bank:
principal deposit bank of V. S. Life (J. P. M.), 4595
IndustriAl Insurance:
causes for expense of (J. F. D.), 3703-3705; large expenses gf (H. F.),
3829
benefits to poor from (J. F. D.), 3755-3757
demand for and advantages of (H. F.), 3828-3831, 3832-3833; number
of companies for, in N. Y. (H. F.), 3833; in N. Y. State (H. F.), 2194;
business of other companies taken over by Metr. Life (H. F.), 2191-
2196
question of substituting branch offices for agents (H. F.), 3839-3842
question of lapses (H. F.), 3801-3812; loss to company from lapses in
Metr. Life (H. F.), 3817-3828; loss to policyholders from lapses (H. F.),
3831-3832; age proportion of policies of Metr. I/ife, compared with
same of population (H. F.), 3843-3844
542 Index — Witnesses and Exhibits.
Industrial Insurance — Continued :
expense of new business in (H. F.), 3817-3826
see also John Hancock, Metr. Life, and Prud. Life
Ingei'soll, W. F.:
salaries (1903-1905) and duties o^ (E. D. E.), 214; in charge of N. Y.
Life's business in Europe (T. A. B.), 789; in charge of Paris Office of
N. Y. Life (T. A. B.), 987
Insolvent life insurance companies:
loss to policyholders from in TJ. S., in ca. 1432 (J. A. McC.)> 1085; prac-
ticable legislative policy concerning (J. A. McC), 1085; English legis-
lative policy concerning (J. A. McC), 1086
Insurance Departments:
Calif OTnia:
transaction of Equiitable Life with Commissioner (S. S. McC), 2493-
2502; examination, of Mut. Ees. (G. D. E.), 8199-3202
Iowa: examination of Mutual lieserve (G. D. E.), 3270-3272.
Massachusetts:
valuation of industrial policies and concessions to Metr. Life (J. M. C),
1981-1982; different methods of, in valuing industrial policies (.1.
K. G.), 3732; valuation of preliminary term policies (D. S. D.), 3523-
3525; (H. M.), 3964-3947; objection of, to Prudential Ins. Co.'s large
deposits with Fidelity Trust (J. F. D.), 3666; agreement of Pruden-
tial Ins. Co. with (corrected testimony of J. F. D.), 3725-3727; atti-
tude of, with regard to liens on policies from 1901 to 1903, 3947-3948;
yearly valuations by (s! S. McC), 2503
Minnesota: examination by, of Mut. Res. (G. D. E.), 3203
Missouri:
examination by of Mutual Reserve (G. D. E.), 3273-3275; bill of for
examination of Mutual Reserve (ex. 587), 3273
New York:
list of office staff (ex. 827), 4259; appointees of Francis Hendricks
(F. H.), 4260-4262; riile of, regarding the connection of employees
with insurance companies (F. H.), 4206; work and position of (H.
T>. A.), 4485-4487; distinctive functions at Albany and N. Y. Offices
(H. H.~ A.), 4452-4454; amount received by, in fees and payments
upon examinations (F. H.), 4259-4260; total amount expended in
1904 (F. H.), 4259; examinations made by department, Jan. 1, 1895-
Dec. 1, 1905 (ex. 828), 4266; number of insurance companies subject
to jiJrisdiction of (F. H.), 4307-4308; method of regarding examina-
tions (I. v.), 4311-4312; limitation of examination to one of solvency
of company (H. D. A.), 4483; attitude of, toward charges of mis-
management of Ins. Cos. (L. F. P.), 4504-4514; attitude of toward
New York companies (H. D. A.), 4388
methods of, of dealing with annual statements (H. D. A.), 4393;
form of annual statement blanks (H. D. A.), 4474; attitude of]
toward assessment companies (H. D. A.), 4412-4414;- advisability of
supervision by, over schedule of dividends (H. D. A.), 4476-4477;
attitude of, towards suggestion of reduction in expenses (H. D. A.),
4482-4483; authority of, to exclude fraternal assessment organlza-
Index — Witnesses and Exhibits. 543
Insurauoe Departments — Continued:
tions (H. D. A.), 4450, 4451; attitude of, toward gain and loss ex-
hibit (H. D. A.), 4478-4482; attitude of, toward insurance legisla-
tion (H. D. A.), 4412; advisability of supervision by, in detail of
legal expenses and syndicate participation (H. D. A.), 4474; attitude
of, with regard to liens on policies from 1901 to 1903 (H. M.), 3947-
3948; attitude of toward rates of interest on collateral loans (I. V.),
4365; valuation of preliminary term policies by (H. M.), 3046-3947;
valuation of preliminary term policies as compared with Mass. and
Vt. (D. S. D.), 3523-3524; attitude of toward policy forms (H. D. A.),
4398-4399; supervising powers of, over policies (H. D. A.), 4459-4462;
inspection of circulars and policies of insurance companies by (R.
H. H.), 4533, 4584; attitude of toward distribution of profits to policy-
holders (I. v.), 4322; attitude of, under Payn to admission of Prus-
sian companies (L. F. P.), 4515-4519; authority of, to refuse per-
mission to reincorporate (H. D. A.), 4463, 4464; attitude of toward
reports (H. B. A.), 4386; attitude of toward verification of reports
(I. v.), 4323-4326; reserve required on adult life policies in indus-
trial and ordinary departments (J. M. C), 1783-1784; advisability_of
supervision by, over movements of securities (H. D. A.), 4472-
4476; attitude of, toward Stipulated Premium Law (H. D. A.),
4402-4415; attitude of toward boot values (I. V.), 4367, 4368; methods
of, of examining vouchers (I. V.), 4318, 4319; interpretation by, of
laws to meet its views of the public good (H. D. A.), 4466; advis-
ability of additional powers for (H. D. A.), 4484, 4485
New York City branch, records of (R. H. H.), 4533; functions of
(R. H. H.), 4523-4525, 4533; number of ex^imlners on staff of (R. H. H.)
4532; examination of securities by (R. H. H.), 4525-4527, 4531
American Union Life, attitude of, to transfer of securities of (H.
D. A.), 4472
Bankers' Life, attitude of,- toward issuance of cash value policies
of (R. M.), 423^4238; controversy with Bankers' Life regarding
section 214 of Insurance Law (H. D. A.), 4457, 4458, 4463-4471;
statemert regarding controversy of, with Bankers' Life (Exhibit
860), 4458; authority of, to demand new constitution of Bankers'
Life (H. D. A.), 4458; deferred examination by, of Bankers' Life
(H. D. A.), 4468
Empire Life, examination of, in 1903 (S. W.), 4044; controversies of
Empire Life with, in 1903 (S. W.), 4045, 4046; supervision exercised
by, over Empire Life (S. W.), 4046
Equitable Life, examination of (I. V.), 4326-4328; statement of ex-
amination of Equitable Life by, and amount paid therefor (Ex-
hibit 931), 4734
Life Association, deposit by, of $103,000 in New York city bonds
(H. P. T.), 4057; accounts of Life Association checked by (H. P. T.I,
4067; matter of $50,000- transaction between Life Associnl.on and
Townsley and Van Scliaick submitted by, to Attorney-General
(H. P. T.), 4096: knowledge of, of arrangement of T^ife Association
with policyholders for one per cent cash commission (H. P. T.), 4108.
Metr. Life Co., expenses incurred by, for examination (M. U. D.),
544 Index — Wit7iesses and Exhibits.
lusiir.ince Departments — Continued:
47C0-4761; concession to Metr. Life on valuation of industrial poli-
cies (.T. M. C), 1982-1983; valuation of infantile policies of Metr.
Life as compared with ordinary insurance (J. M. 0.)> 1986-1987;
examination by, of Metropolitan Life (I. V.), 4365, 4366.
Mutual Life, examination of, 1898 (I. V.), 4368-4370; 1899 (L. F. P.),
4496-4501; 1903 (I. V.), 4311-4322; 1904, (H. D. A.), 4388, 4389;
attitude of, toward Bowles suit against Mutual (I. V.), 4368; state-
ment of, examination of, and amount paid by Mut. Life (ex. 983),
4755, 4756
Mut. Res., treatment of contract reserve fund of (G; D. B.), 3161-3162;
(Hr. D. A.), 4898; decision of, regarding leasehold and investment of
reserve of Mut. Res. (G. D. E.), 3173-3175; examinations by, of Mut.
Res., 1894, 1895, 1898, 1899 (G. D. E.), 3204-3207; examination by,
of Mutual Reserve in 1899 (G. D. E.), 3258-3265; (I. V.), 4355-4365;
(L. F. P.), 4504-4514; (R. H. H.), 4528-4531; changes in report of, on
examination of Mutual Reserve, 1895 (H. D. A.), 4395-4397; failure
of, to examine charges against Mutual Reserve (G. D. E.), 3259-
3260, 3264-3265; attitude of, toward reincorporation of Mutual Re-
serve (G. D. B.), 3276; attitude of, toward insufficiency of rates of
Mutual Reserve (H. D. A.), 4399-4402; interpretation of section 214
by, to refer to Mut. Res. (H. D. A.), 4465-4468; attitude of, toward
increased assessments for age in Mut. Res. (G. D. E.), 3075-3076
N. Y. Life, relations to (E. D. R.), 351; (.J. A. McG.), 649; examination
by, of N. Y. Life, 1899 (L. F. P.), 4501-4504; 1904 (I. V.), 4328-4331,
4345-4349; amount paid to, by N. Y. Life for examinations from
1894 to 1905 (ex. 977), 4754; ownership by N. Y. Life of $43,000
U. S. Steel bonds not reported to (6. W. P.), 2894.
Prov. Sayings Life, appraisal of properties of (W. N. E.), 3965; (ex.
722), 8967; examination by, of Prov4dent Savings (I. V.), 4366-4367;
report of examination by, of Prov. Savings Life (ex. 1000), 4756
Sec. Life and Trust Co., refusal to grant license to (H. D. A.), 4452-
4453
Washington Life, report of examination of agents of (ex. 765), 4115-
4116; attitude of, toward lapses and restorations of Washington
Life (H. D. A.), 4393-4395
Tennessee:
requirements of, regarding explanations of policies (D. S. D.), 8518-
3519
Vermont:
valuation of preliminary term policy (D. S. D.), 3524
Wisconsin:
examination by, of Mut. Res. (G. D. E.), 3204
interference of, with business of Prudential Ins. (J. F. D.), 3682-3083,
3683-3684
Insurance investigation of 1877:
i.r. A. N.), 2561-2562; incorrectness of printed official report of (W. S.
il.), 2812, 2816-2817; connection of W. S. Manning with (W. S. M.),
Index — Witnesses and Exhibits. 545
Iiisui-iiuee Investigation of 1877 — Continued:
2812-2819; W. S. Manning's report of (ex. 455), 2812-2819; matter In-
cliuled in Mr. Manning's report not found in official report (W. S. M.),
2817-2818
Insurance Laws:
Dewey law in Massachusetts (M. M. D.), 4255-4256; comparison of de-
mands of German government with state of New York (J. F.), 4218-
4219
Massachusetts:
reciuirement of medical examination of risJis and rate of mortality
(J. P. D.), 3705
provision of, that no company shall accumulate above XO^ of its
assets (J. T.), 41G9
N. y. State:
section 33, regarding retaliatory measure on foreign governments (P.
I-I.), 42G.3-42G4
section 37, referring to residence of directors (J. N. J.), 478-479
section 52, amendment of, to allow assessment companies to recip-
rocate (G. D. K.), 2750-2752; passing of amendment and letter of
department to governor, and opinion of attorney-general regarding
(exs. 858 and 859), 4448-4450
section 56, regarding suits:
discussion of, by Wm. Barnes, Sr., 2032-2037; views of C. M. Depew
regarding, 2432-2433; attempted repeal of (W. B. Sr.), 2029-2030,
2041; attitude of Home Life Ins. Co. towi;rd (G. B. I.), 3546-3547;
attitude of McCurdy toward repeal of (R. A. McC), 1476-1482
section 84, regarding comjjutation of reserves on special class (J.
M. C), 1974-1975
section 88, regarding surrender values, waived by Metr. Life (J. E.
H.), 1962
section 89, regarding yearly contracts (B. H. McC), 1254
section 201, interpretation of, by insurance department, as regards
cash dividends (H. D. A.), 4465-4468
section 207, regarding 35 per cent, excess of expenses (F. H.), 4288-
4291
section 214, regarding promise of cash payments anfl deposit of
$100,000 (H. D. A.), 4456-4457; interpretation of, by department to
mean Mut. Res. (H. D. A.), 4404-44G8
stipulated premium law (C. M. T.), 3394-3400; possibility for assess-
ment companies to reincorporate under (H. D. A.), 4454; comparison
of reserve, required imder stipulated premium law, and reserve on
ordinary life policy (D. S. D.), 352.3-3524; attitude of Department
toward (H. D. A.), 4402-4415; disadvantages of (Fidelity Mut.) (H.
D. A.), 4470; (Hartford Life and Sec. Mut.) (H. D. A.), 4454-4456;
amendment of 1901 (H. D. A.), 4410-4412
bill for fixing rates of assessment companies (ex. 851) (H. D. A.),
4401
546 Index — ■'WitTiesses and Exhibits.
Insurance newspapers :
number of (C. J. S.), 1747; methods of, regarding reading matter (0. J.
S.), 1748-1749
relations of Miit. Life with (C. J. S.), 1738-1754; special despatches to,
from Mut. Life, Sept. 16, 1905 (ex. 288), 1749-1750; Sept. 21, 1905
(ex. 289), 1750-1751 ; Sept. 27 (ex. 290), 1751 ; ex. 291, Oct. 6, 1751
statements of payments made to, by N. Y. Life, 1900 to 1905, inclusive,
4762-4763
" Insurance Record " :
connection of Mut Life with (C. J. S.), 1747-1748
International Banliing Corporation :
(ionnection of Metr. Life and Nat. Shoe and Leather Bank with (J. R.
H.), 2099; shares in, owned by J. R. Hegeman (J. R. H.), 2099
International Commercial Bank of St. Petersburg:
participation of, in the Wladikakes Railway Co. (G. W. P.), 683
International Mercantile Marine Co. :
relations of, to International Navigation Co., and to N. Y. Life (J. C),
243
International Mercantile Marine syndicate:
distinction of, from International navigation syndicate (G. W. P.), 930-
931; participation of J. A. McCall in (J. A. McC), 1159-1160; partici-
pation of G. H. Squire, account in, 2206-2212
International Navigation Co. :
relations of, to International Mercantile Marine syndicate (J. C), 243;
relations of, to N. Y. Life (J. C), 243
International Nav. Co. :
1st mortgage bond syndicate :
character of, and distinction from Navigation syndicate (H. R. W.),
879-880; participation of Equit. Life in (H. R. W.), 819-822; (H. R.
.,.), 879-881; (J. H. H.), 227u-2-^78; connection of J. H. Hyde witn
(H. R. W.), 819-822; participation of J. H. Hyde and associates in
(J. H. H.), 2276-2278
International Navigation Syndicate :
distincti6n of, from International Mercantile Marine Syndicate (G. W.
P.), 930-931; participation of N. Y. Life in (G. W. P.), 931-932
Investigating Committee :
resolutions governing, 5-6, 7; members of, 6; appearances for, 6-7; ap-
pointment by, of sub-committee to take Squire's deposition (M. M. M.),
2865-2866; letter of, of December 9th, to Jerome on Ryan testimony,
3691-3692
Iselin, Adrian J. :
testimony of, 4574-4580, 4603-4604; on agency commissions of Mut. Life,
4578 ; on liis knowledge of salary commissions of Mut. Life, 4570-4578 ;
on Lawyers' Mort. Ins. Co. stock transaction, 4574-45T6 ; on bis syndi-
cate participations where Mut. Life was Interested (ex. 881), 4579-
4580, 4603-4004
Index — 'Witnesses and Exhibits. 547
Iselin, A. & Co.:
purchase through, by C. Gilbert of stock of Lawyers' Mort Ins. Co. (O.
G.), 4489-4491
Isle and King:
loans to, by Prudential Ins. Co. (J. F. D.), 3670-3671
Investments of insurance companies :
propriety of maintaining concentrated holdings (J. H. S.), 1048-1050;
character of, criticised before state committee (1883) (W. S. M.), 2810-
2811; advisability of ins. co's owning stock (J. A. McC), 2956-2958;
French law regarding, 2852-2854; see also individual companies
•Tackson, Francis W. (auditor of Equit. Life) :
testimony of (Nov. 24), 2836-2845; on his duties and Inadequacy of au-
diting accounts of Equit. Life, 2836-2838 ; on cost and adequacy of
Paris buildings of Equit, 2838-2842 ; on cost, income, and inadequacy
of other foreign buildings of Equit. Life, 2857-2845 ; on his connection
with commissions to Mr. Tarbell, 2845'
Jacobus, C. L. :
purchases and sales of securities through, by U. S. Life (J. P. M.), 4523;
transactions of, with U. S. Life in U. S. Steel stock and bonds (J. P.
M.), 4548-4549
James, Colonel :
counsel for Mutual Reserve in examination, 3260; counsel for Mutual
Reserve in Patterson case, 3196-3198
James, Schell & Elkus :
attorneys of Mutual Reserve, 3196-3198 ; payments to, in connection with
Ins. Dept. examination (G. D. E.), 3265
Japanese Syndicates:
connection of Kuhn, Loeb & Co. with, in Hendricks report (J. H. S.),
104^1050
Japanese 6 per cent, bonds, first series; participation of Equit. Life
in (H. R. AV.), 823-824, 884-886; connection of J. H. Hyde and asso-
ciates with (H. R. W.), 823-824; by Equit. Life (H. R. W.), 825; par-
ticipation in, by Mut. Life and its individual officers (F. C), 196-203,
441-447; participation of N. Y. Life in (J. C), 220-222, 223, 224; sub-
syndicates of (H. R. W.), 884
Japanese 6's, second series; participation of Equit. Life in (H. R. W.),
888; participation of Mut Life in (J. C), 447-449; participation of
N. Y. Life in (J. C), 223-224
Japanese four and one-half per cent, bonds (1st series) ; participation of
Arbuckle Bros, in (J. N. J.), 476-477; participation of Equit. Life in
(exs. 188-191), 887-892; participation of Mut. Life in (J. C), 449-450;
(A. D. J.), 552-555; rate of syndicate subscription in Mut Life (R. A.
McC), 1680; participation in, by Washington Life (ex. 779), 4153-4154
Japanese four and one-half per cent, bonds (2d series); participation
of Arbuckle Bros, in, (J. V. J.), 476477; participation of Henderson &
r.48 Index — Witnesses and Exhibits.
Japanese Syndicates— Continued :
Co., in (C. R. H.), 482; participation of Washington Life in (ex. 786),
4156.
Japanese Government 4's, maturing 1931: participation of Washington
Lifn in (ex. 792), 4158-4159
Jarvie, .Tames N. (trustee of Mut. Life):
testimony of (Sept. 14), 473-479; on his connection with other financial
institutions than Mut. Life, 474-475; on syndicate practices of Mut.
Life, 474-479; on requirement in charter of Mut. Life that directors
be citizens of N. Y. 478
Jenkins, G. W.:
testimony of, 2338-2341, 2378-2379; on transactions in stoclf of Lawyers'
Title and Lawyers' Mort. Ins. Co. stock between Williamson and
Squire, G. H. Squire, and Equit., 2338-2341, 2378-2379
Jenkins, Frederick W.: (general counsel and third vice-president of
Security Mutual)
testimony of, 3501-3504; on Security Mutual and stipulated premium
law, 3501-3504; on collateral loans to Binghamton Beet Sugar Co.,
3504
Jerome, Wm. T.:
(district attorney) reply of, to Legislative Committee, regarding Ryan
testimony, 3641-3643
Jersey City 4's:
joint account of N. Y. Life in (G. W. P.), 697; statement of joint account
in N. Y. Life (ex. 123), 697; resolution on division of profits in, N. Y.
Life (ex. 124), 697
John Hancocit Mutual Life Ins. Co. of Boston, Mass. (not examined):
statement of, 4862-4866; documents furnished by, 4861; history and kd-
ministration of, 4S62; agreement with Metr. regarding agents, and
rates (H. ¥.), 2186; cash balances of 4864; directors' fees of, 4863;
investments of, 4863; lapses of, on insurance, 4865; legal expenses
shared with Metr. Life & Prudential Ins. (H. F.), 3797-3799; legis-
lative department, an-angement with Metr. Life and Prudential Ins.
Co. (J. F. D.), 3679-3681; legislative payments of, 4883-4864; loans of
on collateral, 4863; rebates on taxes (J. J. M.), 4342; reserves and sur-
renders as compared with Prudential Ins. Co. (J. F. D.), 3748-3744;
salaries of, 4862-4863
Johnson, .Jefferson (commissioner of insurance of Texas):
appraisal by, of property owned by Prov. Savings Life (W. T. G.), 4003
Johnson, T. J. (2d vice-president of Washington Life):
connection of, with Washington Life (J. T.), 4106
Johnson, William N.:
ignorance of C. P. McClelland concerning connection of, with Equit.
Life (C. P. McC), 3058-3059; ignorance of C. P. McC. concerning
/ signed vouchers of (C. P. McC), 3209
Joint accounts of N. Y. Life in:
Atlantic Coast Line Bonds (G. W. P.), 702-703, 704; Boston City 3%'s
(G. W. P.), 602-606, 727; Canadian Northern (G. W. P.), 704; Central
Pac. Railway 1st Refunding 4s (G. W. P.), 699-700; Chicago and
Index — Witnesses and Exhihits. 549
Joint Accounts of N. Y. Life— Continued :
Alton 5's (exhibit 49), 386; (F. H. S.), 386-387; Chicago & Alton 4's
(G. W. P.), 681-683; Chicago, Burlington, and Quincy (F. H. S.), 391-
393; Chicago and Northwest SVa's (M. M. M.), 673-677; (G. W. P.),
671-673, 677; Chicago and Northwest 7's (F. H. S.), 387-390; Erie con-
vertible 4's, 575-579, 581-582, 697-698, 727; Jersey City 4's (G. W. P.),
697; L. I. City 4y2's (G. W. P.), 679-680, 691; Mexican Central Railway
bonds (G. W. P.), 2913-2914; Missouri Pacific 5's (G. W. P.), 680-681;
New Orreans Terminal (G. W. P.), 703; N. Y. City 3%'s (G. W. P.),
690-691, 703; N. Y., Ontario and Western (G. W. P.), 677-679; North-
ern Pacific-Great Northern (G. W. P.), 602-695; Oregon Short Line
(G. W. P.), 691-692; Pittsburg, Virginia & Charleston (G. W. P.),
690; Queen's County 4's (G. W. P.), 684-685; Sanitary District
of Chicago Municipal 4i^'s (G. W. P.), 701-702; Savannah,
Florida & Western 5's (M. M. M.), 665-671; Southern Pac. R. R. 1st
mortgage refunding 4's (G. W. P.), 695-697; U. S. of Mexico (G. W.
P.), 704; Washington Terminal (G. W. PJ, 601-602, 703-704, 727; Wladi-
kakes Railway Co. (G. W. P.), 683
lists of: Exhibits 71 and 104, 534, 665.
Jones, Walter S.:
representative of owner of property 536 and 538 Broadway, in trans-
action with Prov. Savings Life (W. T. G.), 4008
Jordan, F. B.
connection of, with Equit. as broker for fire insurance (L. M. B.), 2478-
2480; connection of, with fire insurance of Equit. Life (G. R. B.),
2830-2832; appointment of, as fire insurance broker by Mr. Hyde
(G. R. B.), 2830-2834; commissions to, from fire ins. cos. on insurance
through his ofl3ce of properties mortgaged to Equit. Life (ex. 932),
4734
testimony of, 1513-1514, 2482-2484; on whereabouts of his family, 1513-
1514; on whereabouts of father, 2482; on fire insurance on mort-
gaged property of Equit., 2482-2485
Tordan, Thomas D.
trustee of Equitable stock (W. A.), 117-122
member of sub-committee to audit accounts (J. H. S.), 1008-1009, 1011;
auditing of accounts of Equit., by (M. M.), 2388-2389
supervision by, of insurance legislation (A. W. U.), 1062; connection of,
with legislative interests of Co.. (W. F. T.), 1195; memoranda of, to
Mr. Fields, regarding legislation (1888-1902) (ex. 354), 2197; Jan.
10, 1902-Feb. 28, 1905 (J. McG.), 2197-2198; March 10-April 24, 1903
(ex. 356), 2198
purchases and sales of Lawyers' Title Ins. Co. and Lawyers' Mort. Ins.
Co., stock for by Williamson and Squire (ex. 369 and G. H. S., Jr.),
2329, 2330-2331, 2335; sale by, of Lawyers' Mort. Ins. Co. stock at
auction and subsequent purchase by Equit. of stock from Am. De-
posit & Loan Co. (G. H. S., Jr.), 2331; payment by American Deposit
& Loan Co., for purchase of Lawyers' Title and Lawyers' Mort. Ins.
Co., stock for by Williamson and Squire (ex. 369 and G. H. S., Jr.),
of sales on account of, with Williamson and Squire (ex. 373), 2377
550 Index — Witnesses and Exhibits.
Jordan. Thomas D. — Continued:
non-ledger transactions of, witli cashier's dept., of Bquit. and Mercantile
Trust Co. (M. M.), 2382-2386; connection of, with cash memorandum
of Equit. (M. M.), 2386-2389
relation of, to G. H. Squire trustee account (H. G.), 895-897, 905; draft of
$2,000 to in G. H. Squire account (H. G.), 002; possession of, of G. H.
Squire, trustee, bank deposit book (H. G.), 911-912; endorsement of
check from Speyer & Co. for Central Pacific Refunding prcfits (H. R.
W.), 837.
Jordan, Thomas D., account: '
Identitl of with J. W. Alexander account (H. O.) 908
Jordan and Alexander account:
deposit to, Aug. 18, 18i93 (J. H. H.), 2223-2224; deposits to in Lackawanna
Steel syndicate (J. H. H.), 2225-2229; deposit to, from Mercantile
Trust Co. (J. H. H.), 2229-2232
" Journalist ":
connection of Mut. Life with (C. J. S.), 1748; connection of Allan Fore-
man with (C. J. S.), 1748
Juillard, Augustus D.:
member of salary committee of Mut. Life (G. G. H.), 4544-4546; con-
nection of, with Lawyers' Mort. Ins. Co. transaction (G. G. H.), 4550-
4557; (H. Morgenthau), 4561-4566; responsibility of, in campaign funds
of 1904 (Mut. Life) (W. E. G.), 1353; statement containing syndicate
participations of (ex. 981), 4755
testimony of, 553-565; on his connections with corporations other than
the Mut Life, 554; on his syndicate participations, 555-560; on syndi-
cate practices of the Mut. Life, 560-563; on relations of Mut. Life to
Trust Cos., 564; on relations of Mut. Life with Morristown Trust Co.,
563-564
Junk, Daniel L.:
testimony of, on Caf§ Savarln, 2450-2465
K. 1
Kanawha and Hocking:
participation in, by N. T. Life (E. D. K.), 259-260
Kansas City, Nat. Bank of Commerce:
shares held by Metr. Life in (J. R. H.), 2104
Keeler, James C. (clerk of Title Guarantee & Trust Co.)'.
testimony of (Nov. 28), 2995-3000; on payments to Hamilton and others
through N. Y. Security & Trust Co., 2995-3000
Kennedy, Robert D.:
connection of with State Insurance Department (F. H.), 4262
Kerr: connection of, with Equit. Life (J. A. N.), 2557
Kidder, Peabody & Co.:
connection of, with N. Y. Life in Mexican Central Railway bonds trans-
action (G. W. P.), 2911-2921
loan transaction of, with N. Y. Life (E. D. K.), 2973-2977; profits from
N. Y. Life's loan to, paid to G. W. P. for Nylic (M. M. M.), 2864-2865
correspondence with N. Y. Life regarding accounts (ex. 492), 2914; (ex.
493), 2917; (ex. 494), 2917; (exs. 495 and 496), 2918; (ex. 497), 2919
Index — Witnesses and Exhibits. 551
Kiefer, D. H.:
connection of, with See. Mut. as actuary (0. M. T.), 3392-3394; salary of
(C. M. T.), 3394; loan to, by Sec. Mut. (C. M. T.), 3494-3495
King, G. H., Jr.:
connection of, with King Model Houses (G. R. B.), 2826-2830
King, Willard V. (vice-pres. of N. Y. Trust Co.):
testimony of, on existence of guarantee to N. Y. Life regarding IT. S.
Steel Syndicate,- 2934; on account of Union Savings Bank and Trust
Co., 3078-3082; on payments of N. Y. Sec. & Trust Co. to Hamilton,
3082-3084
XCingsley, Darwin P. (vice-pres. of N. Y. Life):
salaries of (1898-1905) and relationship to J. A. McCall (E. D. R.), 215
testimony of, on collateral loans, 256-257
trustee of Nylic fund (G. W. P.), 965
Kingsley, W. H. ( secretary of Penn. Mutual Life) :
testimony of, 173-174
Kingsley, Mabie & Co. :
purchase from, by Washington Life of American Tobacco securities (J.
T.), 4178
Kingsley and Weeks (trustees of Nylic).
annual accounting to, by G. W. Perkins of securities and cash held for
Nylic (G. W. P.), 2926, 2928
Knickerbocker Investment Co. :
connection of H. P. Townsley and E. Van Schalck with (H. P. T.) 4096-
4098 ; loans of, taken over by H. P. Townsley and Eugene Van Schalck
(H. P. T.), 4098
purchase by, of 626 shares in Bankers' Life Ins. Co. (H. P. T.), 4097; vot-
ing trust and trustees of (H. P. T.), 4097; suit of, against voting trust
of Bankers' Life stock (H. P. T.), 4098-4104; obligations of, taken over
by Manhattan Bond and Underwriting Co., and changed to time loans
(H. P. T.), 4104
Knickerbocker Trust Co.; deposits of Manhattan Life, with, and rates of
interest (Exhibit 907), 4662
Kuhn:
conversation of, with J. H. Hyde, regarding his -syndicate participations
(J. H. S.), 1033-1034; connection of, with Nat. Bank of Commerce,
and Equit. Trust Co. (J. H. S.), 1034
Kuhn, Loeb & Co.:
relation of, to Equit'.; method of procedure and general negotiations with
(J. H. s'.), 2445-2452; (J. G.), 1014-1021; proportionate share of com-
pany in financial transactions of Equit. Life (J. H. S.), 1050-1051;
collateral loans of Equit. Life (J. G.), 2439-2444, 2447-2448; purchase
of ifecurities by Equit. Life (ex. 951), 4739; sales to Equit. (e.-c. 218) ;
syndicate list of Equit. Life's participations (J. H. S.), 1024-1028;
syndicate transactions with Equit. Chicago & Northwest bond syndi-
cate (H. R. W., 863, 865, 872-874; Jap. 6's, first series, syndicate (H.
R W.), 881-884,' 886; Rio Grande & Western 1st consolidated 4's trans-
action (H. B. W.), 845; B. B. Securities Co. syndicate (H. B. W.), 843-
845 ; U. P. Pref. stock certificate and Co.'s ignorance of, of Equit. Life's
participation (J. H. S.), 1041-1048
552 hidex — Witnesses and Exhibits.
Kuhn, Loeb & Co. — Continued:
connection of, with Equit. Trust Co., (J. H. S.), 1034
connection of, with Franklin Nat. Bank (J. H. S.), 1034
connection of, with Mercantile Trust Co. (J. H. S.), 1034
relations of, with Mutual Life; Japanese bonds (E*. C), 202, 442, 445,
446, 447-448, 449, 453-454; Missouri Pacific's 4's (F. 0.) 402-493; Ore-
gon Short Line (E. D. B.), 419-420; 3rd Avenue R. R. bonds (F. 0.),
452-453; Penn. R. R. bonds (F. C), 425, 427
connection of, with Nat. Bank of Commerce (J. H. S.), 1034
relations of, with N. Y. Life in Japanese bonds (J. C)., 222-224
relations to Washington Life, in Jap. bonds transactions (ex. 780), 4154,
(ex. 786), 4156, 4158-4159; in Penn. R. R. bonds, 4156
syndicate transactions of (J. H. S.), 1018; allotments to Louis Fitzgerald
(J. H. S.), 1021-1024; allotments to company in syndicates (J. H.'S.),
1029; charges for services as syndicate managers (J. H. S.), 1030-1032;
connection of, with Atchison, Topeka and Santa Fe bonds (F. C), 43Y;
participation of, in Central Pac. Railway 1st Refunding 4's (G. W. P.),
699-700; participation of, in Chicago & Alton (E. D. R.), 344
managers of Chicago & Northwest syndicate (H. R. W.), 805; and
transactions in, with Equit. Life (H. R. W.), 803, 865, 872-874
managers of Japanese bonds syndicate (H. R. W.), 823-824; and trans-
actions in, with Equit. (H. R. W.), 884, 888-891; with Mut. Life (F.
C), 442, 445, 446, 447-448, 449, 453-454; with Washington Life (ex.
780), 4154; (ex. 786), 4156; (J. T.), 4158-4159; connection of, with
Jap. bonds, in Hendricks report (J. H. S.), 1049-1050
participation of, In L. I. Refunding 4's (G. W. P.), 686-690; connection
of, with Mex. Nat. Readjustment Syndicate Co. (H. R. W.), 806,
865; transactions in Missouri & Pacific 4's with Mut. Life (F. C),
491-492
connection of, with Oregon Short Line refunding bonds syndicate (F.
C), 438; with Oregon Short Line participating bonds (F. C), 440;
and transactions in, with Mut. Life (F. C), 419-420
connection of, with Penn. R. R. bonds transaction, 595, and transactions
in with Mut. Life (F. C), 425-427; with Washington Life (J. T.),
4156
managers of Philadelphia, Baltimore & Washington Bonds syndicate
and Long Island Refunding 4 per cent. Bonds syndicate (H. K. W.),
821-823; and transactions in, with Equit., 881-884, 886
managers of R. R. Securities Co. syndicate (H. R. W.), 801-802; and
transactions in, with Equit. ^H. R. W.), 843-844
managers of Rio Grande & Western 1st consolidated 4's (H. R. W.),
803; and transactions in with Equit. (H. W. R.), 845
connection of, with Southern Pac. bond transactions (P. C), 430-431;
with 3d Ave. R. R. bonds (Mut. Life) (P. C), 452-453
managers of Union Pacific syndicates (H. R. W.), 794 924, 925; Union
Pac. 1% year 5 per cent. Note Syndicate (H. R. W.), 821; and rela-
tion to Equit. Life in (H. E. W.), 881; managers of Union Pac.
Pref. stock syndicate (H. R. W.), 810-819; (S. H. S.), 1037-1049, and
relation to Equit. Life in (H. R. W.), 874-877; syndicate agree-
Index — Witnesses and Exhibits. 553
Kuhn, Loeb & Co. — Continued:
ment of, with Union Pacific convertible bond syndicate (H. R. W.),
801; managers of Union Pac. Reorganization syndicate (H. R. W.),
827-831
connection of, with Western Nat. Banli (J. H. S.), 1034
Kuser, Anthony R. (son-ia-law of J. F. Dry den):
director of Prudential Ins. Co. (J. F. D.), 3656, 3657; director of Public
Service Corporation (J. F. D.), 3667
Lake Shore and Michigan Southern Railway Go. Syndicate;
relations of, with Metr. Life (S. B. D.), 524
Lalsey, C. D.: payments to, by N. Y. Life, for special services, 4762-4763
Lambert, Major: relations of, to Mut. (G. T. D.), 1314
liangdon, Edwin: president of Central Bank at time of loan of securities
from N. Y. Life (W. S. F.), 2985
Langdon, W.:
connection of, with N. Y. Security & Trust Co. (B. D. R.), 277
testimony of, 251-253; on his connection with other companies than
N. Y. Life, 251; on his interest in Navigation syndicate, 252; on his
syndicate participations, 253
Lathrop, A.:
policy of, in Mutual Reserve, and unexpected assessments on same
(G. D. E.), 3300-3304; letter to, from Mutual Reserve on bi-monthly
rates (Ex. 605), 3300; application on policy of, from Mutual Reserve
(Ex. 606), 3301; letter from, to Mutual Reserve, complaining of in-
creased assessments (Ex. (507), 3303; letter to, from Mutual Reserve,
regarding increased assessment (Ex. 608), 3303
Lauterbach:
counsel for Mutual Reserve in litigation with policyholders (G. D. E.),
8221; counsel for Mutual Reserve in examination (G. D. E.), 3260;
payments to in connection with Ins. Dept. examination (G. D. B.),
3266
I/awrence, Frank R.:
counsel for Mut. Res. Life, in investigation, 9; counsel for Mutual Re-
serve in litigation against policyholders (G. D. E.), 3221; statements
of, concerning contested judgments of Mut. Res. (G. D. E.), 3115-3117;
quotation from, from argument before Superintendent of Insurance
(I. v.), 4356
Lawrence Lysander:
connection of, with JJut. Life (W. R. G.), 1357-1358 (R. A. McC), 1487;
(Connection of, with Globe Printing Co. (L. B.), 1552-1557; connection
of, with introducing Cady to McOurdy (J. R. C), 2105-2106; relations
of, with North River Fire Ins. Co. (L. B.), 1556
Lawrence & Co.:
relations of. with Globe Printing Co. (R. A. McC), 1488-1489; (C. A. N.),
1564-1665, (E. W. R.), 1507, 1571; '-eiatioiis of, to Mut. Life (C. A. N.),
1562-1 5M, ]5r>5-156<3
554 Index — Witnesses and Exhibits.
Lawrence & Hughes: payments to, in connection with Ins. Dept. exam-
ination (G. D. E.). 3269
Lawyers' Club:
organization of (D. M. J.), 2462-2463; lease to, from Equit. Life (Ex.
385), 2457-2459; relations of, with Equit. Life and Cafe Savarin (D.
M. J.), 2460-2465; receipts and expenses connected with, since 1881
(Ex. 387), 2461-2462
Lawyers' Mortgage Insurance Co.:
original capital stock of (E. W. C), 4370; increase of stock of (E. W.
C), 4370-4372; capital of, 1905 (E. W. C), 4376
affiliation of, with Equitable (E. W. C.),' 4374-4375; purchase and sale
of stock of, for G. H. Squire, by Williamson & Squire (Ex. 369 and
G. H. S., Jk), 2337-2338; transactions in stock of, through Am. De-
posit & Loan Co. (G. W. J.), 2378; purchases and sales of stocks of,
by Equit. (G. H. S.), 2527-2528; statement of purchase of stock of, by
American Deposit & Loan Co. (Ex. 508), 3002-3004; stock of, ownea
by Equit. Life, Sept. 5, 1901 (Ex. 949), 4739; statement of transcript
of stock ledger of, showing transactions of the Equit. Life, 4739;
purchase and sale of stock of, by Clinton Gilbert (C. G.), 4489-4491;
purchase and sale of stock of, by A. Iselin, Jr. (A. I. Jr.) 4574-4576
connection. of Mut. Life's officers with increase of stock of (H. Morgen-
thau), 4561-4567; purchase and sale of stock, by officers of Mut. Life
(P. C), 4567-4572; allotments of shares of, to officers of Mutual (N.
D. P., Jr.), 4376-4378; transference of s(tock in to N. D. Putnam
(E. W. C), 4372; (N. D. P., .Tr.), 4375-4384; account of thousand shares
transferred to N. D. Putnam (Ex. 847), (N. D. P., Jr.), 4378
Lawyers' Title Ins. Co.:
Capital stock of (E. W. C), 4374; increases in stock of: — (G. H. S.,
Jr.), 2333; (E. W. C), 4373-4376; Wse in value of stock of, between
March and June, 1901 (G. H. S.), 2518-2519
transactions in stock of, through Am. Deposit & Loan Co. (G. W. J.),
2338-2341, 2378; (Ex. 507), 3001-3004
affiliation of, with Equitable (E. W. C), 4374-4375; transactions in stock
of, by G. H. Squire with Williamson & Squire, and Equit. (ex. 309 fuid
G. H. S., Jr.), 2332-2337; transactions in stock of, by T. D. Jordan (ex.
369 and G. H. S., Jr.), 2329, 2330-2331; purchase of stock of, by G. H.
Squire from Equit. Life (ex. 378, statement of G. H. S.), 2403-2405;
purchases and sales of stock of, by Equit. (G. H. S.), 2515-2527; stock
of, owned by Equitable Life, Sept. 5, 1905 (ex. 950), 4739
relation of H. Morgenthau to increase of stock of (H. Morgenthau), 4001
Interest to Mut. Life from absorption of Central Bonds and R>jalty Co.
with (F. C), 456-457; officers of Mut. Life on executive committee of
(H. Morgenthau), 4563; members of executive committee of iH. Alor-
genthau), 4565
relations of, to Lawyers' Mortgage Co. (H. Morgenthau), 4565
r.egal and Legislative expenses :
advisability of dclailed report of, to insurance department (H. D. A.),
»'i74 ,
Index — Witnesses and Exhibits. 555
I-egal and Legislative Expenses — Continued :
campaign contributions, Gov. Odell's testimony regarding, 2397-2398; of
^tna Life, 4827; of Equit. Life (1902), (J. H. H.), 2219-2220; of
Equit. Life and^property of, (C. M. D.), 2408-2410; of Metr. Life (J. R.
H.), 2067-2008; of Mut. Life (W. T. T), 1197-1199; (R. O. and R. A.
G.), 1383-1345; (W. R. G.), 1352-1356; (R. A. McC), 1419-1421; (T. C.
P.), 2575-2579; of Mut. Res. (G. D. E.), 3269-3270; of N. Y. Life (G.
W. P.), 582-584, 590; (J. A. McC), 039-641, 654, 1132-1137 2945-2947,
2951; (T. M. B.), 2963-2965; (T. C. P.), 2577; (G. W. P.), 582-584; of
Prov. Savings Life (ex. 700), 3868 ; of Prov. Life & Trust Co. of Phila-
delphia (M. M. D.), 4765-4766; of Prudential lias. Co. (J. F. D.). .3671;
of Washington Life (J. T.), 4137; of U. S. Life (ex, 878), 6123
legal expenses, of Manhattan Life (ex. 893 and H. B. S.), 2167 2168;
of Metr. Life (ex. 352), 2187-2189; of Mutual Reserve (ex. S.-fi), 3118 ;
(J. A. H.), 3236-3237; (G. D. E.), 3209-3270; (ex. 601), 3298-3299; of
N. Y. Life aggregate payments to Hamilton (ex. 856), and others (ex.
857, 4436; of Prov. Savings (ex. 673), 3599; of U. S. Life (ex. 879),
4598-4599
Legislation regarding Insurance Companies:
discussion of (J. A. McC), 1087-1089; (W. T. T.), 1183-1202
adverse legislation, forms and method of dealing with (A. H.), 4421-4428
advisability of (E. McO.), 1830; (J. F. D.), 3679-3680;
character of legislation (W. T. T.), 1201-1202
co-operation of Equit., Mut. & N. Y. Life regarding (A. W. M.), lOSO-
1066, 1068; co-operation of N. Y. Life, Mut. Life, and Metr. (A. H.),
4426-4427; co-operation of cos. in Wisconsin (J. A. McC), 1154-1155
distribution of territory among ins. cos. for influencing (A. W. M.), 1068-
1070; (J. A. McC), 1139; division of expense among three big insur-
ance cos. (W. T. T.), 1184-1186
Equit. Life's interests regarding (A. W. M.), 1051-1072
Hamilton Bureua (A. H.), 1137-1150; (J. A. McC), 611. 633, 1137-1150;
(A. W. M.), 1051-1061, 1068-1071
proportion of, regarding industrial insurance (J. F. D.), 3680-3681
organization of literature concerning (W. F. T.), 1188; publications giv-
ing information concerning (J. F. D.), 3677-3678
Mutual's Interest in (W. F. T.), 1184-1199, (R. A. McC), 1451-1485; A. C.
Fields and his house at Albany (W. M. C), 1575-1590, (R. A. McQ),
1457-1466, 1590-1592, (M. E. M.), 2003-2011, (C P. McC), 3032-3043
relation of N. Y. Life to (J. A. McC), 1137-1149; see Hamilton Bureau
interest of policyholders in (W. F. T.), 1202-1203
nature of, attacked by Prudential Insurance Co. (J. F. D.), 3676-3677
aid of, in reduction of expenses (H. F.), 3853-3854
stipulated premium law, and connection of L. F. Payne with, (L. F. P.),
4514-4515
on surrender value, (J. A. McC), lOSO-lOSl
on surplus by Equit. in 1868 (J. A. JIi-C.), 11G3
550 Index — Witnesses and Exhibits.
Legislation Regarding Insurance Compianies — Continued:
on war tax bill (W. F. T.), 1195
repeal of section 56 of Ins. Laws and connection of Wm. Barnes, Sr.,
with (W. B., Sr.), 2200-2207, (R. A. McC), 1476-1482
Legislative Investigation of insurance:
history of previous legislation, 10, 15
Levinson, Salmon O. :
payment to, by Mut Res. in Northwestern Life transaction (G. D. E.),
3089-3090; agreement between, and Mut. Res., July 2, 1901 (exhibit
558), 3091-8093
Lewis, Charlton T. :
letter of, to Mut Life, on retainer to Mr. Friske (R. A. McC), 147M472;
legislative services of, to Mut. Life (Rich. A. McC), 1474-1475; voucher
signed by, on " F. Water account" (C P. McC), 3059; ignorance of
C P. McC. concerning signed vouchers of (C P. McC), 3209
Lewis, J. M. :
voucher to, from Equit. Life, June 8, 1899 (exhibit 400), 2493
Liberty National Bank:
account of Washington Life with (J. T.), 4151-4152
Liebman Building: See Universal Building.
Life Association:
accounts checked by Insurance Department (H. P. T.), 4067; perfection
of system of bookkeeping (H. P. T.), 40S3-1094
agency department, commissions to agents (ex. 755), 4071-4073; (H. P.
T.), 4073-4074; illustration of returns to investors made by agents (ex-
763), 4107; district open to general agents (H. P. T.), 4078; number
of general agents and commissions to (H. P. T.), 4078, 4079.
assets, total of; admitted and non-admitted, according to report, Dec.
31, 1904 (H. P. T.), 4091; according to statement to stockholders (H.
P. T.), 4091.
bank accounts; number of, in March, 1904 (H. P. T.), 4062; with Cit-
izens' Trust Co. of Paterson (H. P. T.), 4063-4004; rate of intei'est
paid to, by Citizens' Trust Co. on savings bank account (H. P. T.),
4063-4064; with Gansevoort Bank (H. P. T.), 4054
brokerage business of (H. P. T.), 4073.
capital stock of (H. P. T.), 4053.
claims dept.; amount paid in death losses (H. P. T.), 4089-4090; in 1901
and in 1902, as assessment company (H. P. T.), 4089; in 1903 and 1904
(H. P. T.), 4089; in 1905 (H. P. T.), 4090; litigated and compromised
claims (H. P. T.), 4090-4091; practice of paying death claims im-
mediately on proof of claim (H. P. T.), 4090-4091.
deposits, with North American Trust Co. (H. P. T.), 4054.
disbursements of, for 1904 (H. P. T.), 4080.
dividends; percentage of annual dividend business (H. P. T.), 4082; re-
duction of rate of, from 16 1-2 to 15 per cent. (H. P. T.), 4089; on
capital stock during 1904 (H. P. T.), 4080; dividends paid to policy-
holders, in 1904 (H. P. T.), 4081; in 1905 (H. P. T.), 4080; comparison
Index — WUnesses and Exhibits. 557
Life Association — Continued.
of, with premiums and receipts, for 1904 (H. P. T.), 4080; circular re-
lating to (H. P. T.), 4084; method of ccraputatloil, of (H. P. T.), 4081-
4086.
exhibits (see under Exhibits):
744, 745, 746, 747, 748, 749, 750, 751, 752, 753, 754, 755, 756, 757, 758,
759, 760, 761, 762, 763.
examinations of, 1903, 1904, 1905 (F. H.), 4298-4299;
expenses; statement of for 1904, in Blue Book (H. P. T.), 4071; items
for furniture and fixtures (H. P. T.), 4092; items not taken from books
for statement (H. P. T.), 4094.
gain and loss exhibit, refusal of company to furnish Information for
preparation of (M. M. D.), 4756.
insurance, amount of outstanding at end of 1903 and 1904 (H. P. T.),
4094; number of states covered by (H. P. T.), 4095; proportion of, in
state of N. Y. (H. P. T.), 4108.
lapses, heavy rate of, in 1904 (H. P. T.), 4094.
liabilities, increase of (H. P. T.), 4080. ' ' •
loans:
check book with Gansevoort Bank, showing amounts of (ex. 745),
4068; statement of all loans not now in force (ex. 749, 4054; state-
ment of loans now in force (ex. 750), 4070.
loans to O. A. Allen (H. P. T.), 4068; to Brice (H. P. T.), 4068.
to Townsley and Van Schaick: — from Gansevoort Bank, on Life As-
sociation stock (H. P .T.), 4054-4056, 4057-4060; repayment of, 4060-
4063; from Citizens' Central Bank of Patterson, on Life Associa-
tion stock (H. P. T.), 4057, 4063-4065; payment of $50,000 for ser-
vices to, as reimbursement (H. P. T.), 4058-4063; letters of Apr.,
1904, from Tawnsley to H. "p. Bell (ext. 747, 748), 4065, stub of
cheek on Gansevoort bank to H. P. Townsley, for $14,000 (H. P.
T.), 4065; check to, on Gansevoort bank for $9,560.40 (H. P. T.),
4065-4067; entry of deposit, March, 1905, of $50,122.57 (H. P. T.),
4068; loans to, of December, 1903 (H. P. T.), 4068-4069; Oct., 1904,
4069; check showing repayment of $50,000 to (ex. 759), 4091; stub
of check, Oct., 1904, to, for $10,000 (H. P. T.), 4091.
cheek of Guaranty Trust, to W. H. Wlemer, for $20,000 (H. P. T.),
4067-4068.
medical department:
director of (H. P. Tr), 4079; average cost of medical examination, per
$1,000 (H. P. T.), 4094.
mortality rate:
in 1905 as compared with other years (H. P .T.), 4090; nepotism In
H. P. T.), 4073, 4078-4079.
new business, amount of, written In 1904 (H. P. T.), 4094.
officers:
salaries of (H. P. T.), 4077-4079; amount of stock owned by (H. P.
T.), 4084; resignation of, named in preliminary resolution of 1901,
with the exception of Townsley and Van Schaick (H. P. T.), 4063;
presidency of H. P. Townsley (H. P. T.), 4078.
62
558 Index — Witnesses and Exhibiis.
Life Association — Continued,
organization and government:
organization, as assessment company (H. P. T.), 4053; reincorporatiou
of, as stock company (H. P. T.), 4052-4053; amount of mon«>y in
treasury at time of organization as stock company (H. P. T.), 4075;
contract between assessment company and stock company provid-
ing for policies (H. P. T.), 4076; charter, 4083.
policies, value of assessment: at time of orgamzation as stock company
(H. P. T."), 4075); valuation of assessment policies at end of second
year of organization as stock company (H. P. T.), 4076; number of
annual dividend policies (H. P. T.), 4084-4080; illustrations in circular
of sample annual dividend policies (H. P. T.), 4084; change made by
holder of policy No. 2348, from assessment to endowment policy
(H. P. T.), 4086-4088; policy issued to G. C. Oapron previous to his
connection v7ith company (H. P. T.), 4088; average loss per $1,000
policy (H. P. T.), 4094
policyholders:
agreement of, with assessment company (H. P. T.), 4053-4054; mis-
leading statement in circular to (Exhibit 760), 4081; dividends paid
to, in 1905 (H. P. T.), 4062; rights of, to change old for new policies
by payment of additional premiums (H. P. T.), 4088; cash commis-
sion contract with (H. P. T.), 4108; number of, sharing in one per
cent, cash commission (H. P. T.), 4108
premiums:
first year, in 1904, with deduction for commissions (H. P. T.), 4079;
difference in rates on life policies and term policies (H. P. T.), 4076;
comparison of total premiums and receipts, with total expenses
for 1904 (H. P. T.), 4080; average premium on $1,000 policy (H.
P. T.), 409-1; cliaracter of level premiums (J. A. McO.), 1083
proxies: (H. P. T.), 4081
receipts of, for 1904 (H. P. T.), 4080; relations of, with Insurance
Department — deposit of $103,000 in New York city bonds with
the Department of New York (H. P. T.), 4057; requiremaats of
department regarding return of Townsley and Van Schaick pay-
ment, 4095; knowledge of Insurance Department of one per cent,
cash commission (H. P. T.), 4108; debarment of company from doing
business in state of New Jersey (H. P. T.), 4095
reports:
to stockholders and to Insurance Department (H. P. T.), 4091; report
published in New York Times, January 1, 1905 (H, P. T.), 4092
reserve:
at end of 1903 (H. P. T.), 4075, 4077; for 1903 and 1904 (H. P. T.),
4080; average on life policy (H. P. T.), 4094 -i
salaries:
officers (H. P. T.), 4077-4079; of agents, including managers and
agents' clerks, for 1904 (H. P. T.), 4079 /
stock ownership:
stock subscribed for by policyholders at par (H. P. T.), 4054; stock
subscribed for by H. P. Townsley and E. Van Schaick (H. P. T.),
Index — Wihiesses and Exhibits. 55^
Life Association — Continued:
4054; stock given as security for loan by Gansevoort Bank to Towns-
ley and Van Seliadek (H. P. T.), 4066; amount of stock in, owned by
H. P. Townsley (H. P. T.), 4083; value of sliares (H. P. T.), 405T;
prices paid by Townsley and Van Schaick (H. P. T.), 4063; selling
price of stock (H. P. T.), 4063; method of securing subscriptions to
stock (H. P. T.), 4107, 4108
surplus: •
at end of 1903, according to Blue Book (H. P. T.), 4075, 4077; amoupt
of, taken over from assessment company by stock corporation (H.
P. T.), 4075; diminution of at end of 1904 (H. P. T.), 4077; amount
of in statement published in New York Times January 1, 1905
(H. P.T.), 4093; in statement to stockholders (H. P. T.), 4093
Life Assurance Companies' Act, passed in England in 1870 or 1871, owing
to failures (H. U.), 3994
l>ife Insurance Club:
29'56-2958; on advisability of limit to increase of insurance business,
advertising expenses of (K. W.), 4679, 4680, 4683; capital stock of
(R. W.), 4669; competition probable effect of (R. W.), 4684-4687; con-
tract of with auxiliary, regarding obligation and bills (Exhibit 911),
4681-4687, 4688-4689; expenses of, rent, office, furnishings, salaries,
etc. (R. W.), 4682-4683; loading percentage of (R. W.), 4687; medical
examinations of (R. W.), 4684; officers of and their salaries (R. W.),
4680; optional premium privilege, copyright on name (R. W.), 4687,
4688; organization and character of (R. W.), 4609; policies, Idnd of
(R. W.), 4684-4687; policies, specimen form of (Exhibit 910), 4687;
premium income of (R. W.), 4686; premium rates of (R. W.), 4684,
*4685, 4687; stock distribution of (R. W.), 4681-4682; superior class
of business of, owing to methods of obtaining it (R. W.), 4685, 4686
Limitation of insurance business:
discussion of (C. M. D.), 2435, 2436; (J. F. D.), 3795-3796; agitation con-
cerning (E. McC), 1822-1825; advisability of (J. A. McC), 1164, 1165;
introduction of bill by Senator Erackett for (E. McC), 1824-1825
Lindabury, Richard D.:
counsel for Metropolitan Life in investigation, 9
Little, John A.:
business" association of, with C. H. Raymond (C. H. R.), 1219, 1220;
connection of, with Widows and Orphans Benefit Life Insurance
Company (R. A. McC), 1374
Little Palls and Dolgeville Railroad:
change in book value of bonds of (H. B. S.), 4660, 4661
Lloyd, Isaac F.: vice-president of Mutual, 29
Longer (former actuary of New York Life) :
responsibility of, in G. E. Tarbell's commissions (G. W. P.), 2874
Long Island City four and one-half's:
joint account with New York Life (G. W. P.), 679, 680; amount realized
by New York Life on (Exhibit 110), 679
Long Island Refunding 4's :
See Philadelphia, Baltimore & Washington syndicate
g60 Index — 'Witnesses and tlxhihils.
Lord, Franklin B. :
suit of, against Equit. Life (W. A.), 133
Louisville and Nashville stock:
relation of, to Atlantic Coast Line bonds (J. C), 226-233; (S. B. D.), 512
Luscombe, Robert :
payment to, from Equit. Life, 1897 (ex. 398), 2492
Lynch, Daniel E. (attorney with office in N. T. Life. Building) :
connectioB of, with B. E. McCall (G. W. P.), 2902; salary of, paid by
Hamilton (J. C. McC), 4443-4444, 4445
/
Mc
McCall, John A. :
agents and persistency of business, statement concerning, at Nat. Con-
vention (E. McC), 1826; non-receipt of commissions by, on his, policies
in N. Y. Life (G. W. P.), 2869
Hamilton payments, conversation with G. W. Perkins regarding (G. W.
P.), 2909-2910; see also under his testimony
knowledge of transaction with Kidder, Peabody & Co. in Mexican Cen-
tralRailway bonds purchase (G. W. P.), 2917
Kidder, Peabody check, instructions concerning (E. D. R.), 2974-1975
limitation of insurance, attitude towards (E. McO.), 1822-1823, 1824-
1825, (J. A. McC), 1164-1165
Metr. Life, loan from and rate of interest on (J. R. H.), 1781-1783, (J.
A. McC), 1152-1154
N. T. Security and Trust Co., relation to (E. D. R.), 270-277; 362-364;
knowledge of, of transaction with N. T. Sec. & Trust Co., in U. S. Steel
(G. W. P.), 2884
relatives of, in N. Y. Life's building on 72d Street (E. I. D.), 1172-1H3
salaries of (1891-1905), 213
testimony of, G09-656; 1078-1100, 1132-1165, 2157-2159, 2167-2168, 2934-
2958; on campaign contributions (1892), 640; (1896), 639-640, 641;
(1900), 640-641 ; on campaign fund of 1904, 650-651; on campaign funds
of Alton B. Parker, 651 ; on campaign funds, 654 ; on campaign contri-
butions and affidavits to Texas officials, 1132-1137; denial by, of pay-
ments to Piatt, 2945-2947, 2951 ; refusal of, to disclose names of solici-
tors for campaign funds, 2953-2954
on Andrew Hamilton's connection with N. X. Life, 610-612 ; on pay-
ments to Andrew Hamilton, 612-654; on disbursements of Andrew
Hamilton, 624-625; on his guarantee for unaccounted payments of
Hamilton, 625 ; on Hamilton's contract with N. Y. Life, on recovery
of funds from State of N. Y., 625-626 ; on items of $235,000, 651-654 ;
on Hamilton notes (ex. 478-486), 2934-2945, 2953-2956; on his per-
sonal endorsement of Hamilton notes, 2938-2941 ; on an interview
with A. Hamilton in 1901, concerning latter's disbursements, 2934-
2936 ; on his ignorance, of use made by Hamilton of money paid him,
2953 ; on retainer and percentage on disbursements for Hamilton,
2930-2937; on payments to Hamilton through J. P. Morgan, 2937-
2938, 2941-2.942; on Albany account of Hamilton, 2956; on where-
abouts and holding to accounting, of A. Hamilton, 2157-2159 ; paper
executed by, concerning whereabouts of A. Hamilton, 2158 ; on action
of Board in regard, to Hamilton's accounting, 2167-2168 ; on his efforts
to secure return of Hamilton (exs. 501, 502), 2947
Index — Witnesses and Exhibits. 661
McCall, John A. — Continued :
on general insurance legislation, 1086-1090 ; on his connection with pro-
hibition of discrimination, 1087; suggestions of, regarding insurance
legislation, 1088-1090; on relation of N. Y. Life to ins. legislation,
1137-1151, 1154-1155 ; on payments of N. Y. Life to Mr. Nichols and
Mr. Manning, 2948-2949 ; on his relation to men of other states re-
garding legislative matters, 1140-1141 ; on his acquaintance with A.
C. Feild, 1143: on advisability of insurance companies owning stock,
2956-2958; on advisability of limit to increase of insurance business,
1164^1165
on properties of the N. Y. Life, 615-616; on acquisition of Printing
House annex properties, 619-620; on attitude of N. Y. Life towards
supt. of ins., 643-649 ; on his own wealth, 656 ^
on his own syndicate participations, 656, 1159-1160 ; on N. Y. Life's
transaction in U. S. Steel syndicate, 2949-2950-2958; admission of,
that TJ. S. Steel participations should have been recorded, 2958-2959 ;
on paying to NyHe profits from Mexican bonds, 2946-2947
on history of life insurance in U. S., 1079 ; on life insurance crisis of
1870 et seq., 1083-1086; on sub-standard insurance, 1090-1098; on
surplus and. reserves of N. Y. Life, 1099-1105 ; on transfers of money
from surplus to reserve fund, 1103-1105 ; on practices regarding loans
on policies in N. Y. Life, 1106-1108 ; on relative advantages of annual
and deferred dividend systems, 1162-1163; on judgment of $35,500 in
Allison case, and payment of $35,500 by Mr. Gibbs, 2951-2954; on
Mr. Perkins' connection with N. Y. Life and J. P. Morgan & Co.,
1160; on loan from Metr. Life, 1152-1153; on his connection with.
Metr. Life, 1152-1160 ; on his insurance in N. Y. Life, 1163 ; on his
insurance in different companies, and denial of commissions, 2949-
2950
McCall, John C. :
offices and salaries of, 42-43, 215
testimony of, 42-65, 68-82, 592-593, 3063-3065; on proxies, 69-75; on dis-
tribution of reports, 77
on Andrew Hamilton's connection with N. Y. Life, 592-593; on Ham-
ilton checks, 594; on payments of N. Y. Life to Hamilton, 3063-
3065; on his intended sailing to see A. Hamilton, 3065; on his in-
terview with Hamilton in Paris, 4434-4449; on discrepancy be-
tween Hamilton's accounting and money paid him by N. Y. Life,
4437-4440; on inability of Hamilton to produce check hooks and
checks, 4440-4442; on rents and clerk hire paid by Hamilton, 4442-
4444, 4445; on his not questioning statement of Hamilton, 4444-4447;
on Hamilton's report to Prussian government, 4447-4448
McCall, Edward E.:
association of, with A. Hamilton in tax litigation (J. A. McC), 1144;
counsel for domestic and foreign insurance companies in litigation
over tax law of 1901 (J. J. M.), 4537-4538, 4540-4541; legal services
of, to Prov. Savings (B. W. S.), 3639; connection of, with tax suit of
Prov. Savings (E. W. S.), 3856
notes made by, to order of J. A. McCall, for Hamilton (J. A. McC),
•2939-2941; notes of, taken up by J. P. Morgan & Co. and Central Na-
tional Bank (Exs, 478-484), 2897, 2898
562 Index — Witnesses and Exhibits,
'. ^ _ 1
]\icCall, Edward B. — Continued:
non-participation of N. Y. Life in campaign for election of (J. A. McC).
2951; connection of, with Allison judgment and payment to Mr. Gibbs
(J. A. McC), 2952-2954; connection of, with E. Lynch (G. W. P.),
2902
McOarter, E. H. : succession of, to T. N. McOarter as attorney-general
(J. F. D.), 3693
SIcCarter, Thomas N. (director of Prudential Life):
(J. P. D.), 3656-3657; president and director of Public Service Corpora-
tion (J. P. D.), 3667-3668; director of Union Nat. Bank (J. P. D.), 3669;
counsel, while attorney-general, for Prudential Life in Rocbotham
suit (J. P. D.), 3692-3693; resignation of, as attorney-general to be-
come generaj counsel of Pidelity & Trust, and then president of
Public Service Corporation (J. P. D.), 3693
McOarter, Uzal H. (president of Fidelity Trust Co.) :
(J. P. D.), 3668; director of Union Nat. Bank, 3669; director of Prufl.
Life, 3656-3657; director of Public Service Corporation (J. F. D.), 3667
McClave, Albert: relationship of, to J. A. McCall (J. A. McC), 1154
McClelland, Sen. Chas. P. (U. S. Appraiser):
connection of, with Mut. Life (R. A. McC), 1464-1457; vouchers to,
from Mut. Life (K. A. McC), 1455, 1457; presence of, in Mut. Life's
house at Albany (M. E. M.), 2010
testimony of, 3030-3062, 3057-3213; on his legislative offices, 3030-3032;
on his first connection with Mut. Life, 3032; on his connection with
C F. Ulrich, 3032; on his connection with A. C Fields, 3082-3037;
on connection of A. C Fields with insurance matters, 3035-3037, 3039-
3043; on time spent by him in Albany house of A. C Fields, 3038-
S043; on payments to him by Mut. Life (exs. 529-537), 3043; on his
services rendered to Mut. Life for retainer, 3044-3057, 3062-3063; on
services of L. P. Murray to Mut. Life, 3055-3057; on services of
J. E. Ashe to Mut. Life, 3057-3058; on his non-connection, with Mut.
Life during term in Legislature, 30«)-3061; on duration of his re-
tainer from Mut Life, 3060-3001; on his consultations with A. 0.
Fields and Mr. Short, 3062-3064
on his connection with Equit. Life, 3057-3059; on his ignorance of
Equitable " Water Account," 3058, 3059 ; ignorance of P. Water ac-
count, and C T. Lewis and Johnson vouchers, ,3209 ; further testi-
mony of, on payments to him of $5,800 by Equitable, 3208-3209 ; on
his signing of vouchers, 3210-3211
on his retention by Empire Life, 3211-3212
McClintock, Emory (actuary of Mut. Life):
testimony of, 1697-1736, 1786-1868, 1869-1920; on his salary,, 1697; on his
relations to actuarial societies, 1698; on membership of M. M. Dawson
in institute of actuaries, 1698; correction of his own testimony re-
garding M. M. Dawson, 1787; on history of insurance legislation in
the 70's and 80's, 1699-1709; on requirement of forfeiture, 1703-1704;
on reserve requirement as a liability, 1704-1715, 1716-1717;' on distinc-
tion between fraternal and assefrment companies, 1709-1710; on Dr.
Sprague's distinction between select and ultimate methods of reserve,
Index — Witnesses and Exhibits, 563
McClintock, Emory — Continued:
1714-1715; on select and ijltlrnate or Dawson's system of valuation,
1912-191 G, 1918-1919; on legislation in Mass. regarding reserves, 1715-
1716; on tontine metliods, 1716-1718; on insuring impaired lives, 1718-
1724
on decreasing dividends, 1731-1735; on outlook for rates of insurance,
1791-1792, 1799-1801; on complaints of policyholders concerning de-
creased dividends, 1808-1815; on causes for reduced dividends and
effect of expenses thereon, 1815-1822; on reason for reduction in
annual dividends, 1855-1861; explanation of increased dividends due
to mortality rate in ex. 298, 1861-1862; on method of calculating annual
dividends, 1806-1808; on basis for calculating annual dividends, 1838-
1846; on manner of calculating annual dividends in Mut. Life, 1900-
1904, 1877-1892; on deferred dividend policies, 1724-1731; on post-
mortem dividends, 1728-1729; on method of calculating deferred divi-
dends, 1801-1806; on comparative methods of computing deferred divi-
dends, 1826-1829; on feasibility of keeping account of each policy on
deferred dividend policies, 1829; on advantages of deferred dividends
to policyholders and to company, 1831-1834; on disadvantages of sur-
renders of policies, 1834-1835; on basis for calculating deferred divi-
dends, 1838-1846, on method of calculating profit factor in deferred
dividend policies, 1890-1902; statement of calculation of deferred divi-
dends by (ex. 305), 1902; on justification of different commissions on
ordinary and endowment policies, 1905-1908; on reason foi*- variation
of leading factor, 1910 ; on extent of use of double policy, 1786 ; on
method of calculating total dividends and their relation to realized
earnings, 1867, 1877; on dividends on paid-up policies and calculation
of interest, 1847-1854
on functions of actuary and statements of estimates, 1796-1799; on
books of estimates furnished agents, 1865-1868
en limitation of amount of insurance, 1822-1825; on advisability of leg-
islation in regard to insurance, 1830; on cost of nevr business of Mut.
Ijife in 1904, 1902-1904; on proper amount of money to be spent on
new Ijusiness and possibility of increasing business without injuring
old policyholders, 1908-1916; on number of lives aa Ins. Co. could do
business on, without increasing number, 1916»1917; on ratio of ex-
pense of Mut. Life to Income and to amount paid policyholders, as com-
pared with N. Y. Life, Equit., and smaller companies, 1917-1918; on
reason for remission of income tax to policyholders in England, 1918
McCullough, John F.:
testimony of, 657-662; "on Andrew Hamilton's law practice, 658, 659; on
checks and drafts of A. Hamilton, 659-662; on his own duties, 659-662
McCurdy, E. A. (president of Mutual Life) :
connection of, with other companies than Mutual Life, 153, 160, 161 ; re-
quest of, for examination by insurance department (L. F. P.), 4497;
attitude of, towards limitation of insurance (E. McC), 1823-1825; in-
terview of, with Cady regarding admission of Prussian companies
(Jv, F P,), 4517-4519; (J, R, C), 4531-4523
564 Index — Witnesses and Exhibits.
McOurdy, E. A. — Continued:
position of, regarding increased stock of IJawyers' Title Ins. & Trust
Co. (H. Morgenthau), 4561-4563; offer to, of stock in Lawyers' Mort.
Ins. Co. for Mut. Life (H. Morgenthau), 4563-4567; failure of, to
bring offer of Lawyers' Mort Co. stock before finance committee of
Mut (F. C), 4567-4568; (A. L), 4575
purchase and sale by, of Wash. Electric Co. stock (J. T.), 1766-1768;
participation of, in Japanese syndicate, 197
testimony of, 1372-1422, 1428-1512, 1523-1551, 1590-1625, 1640-1673; on
his connection with Widows and Orphans Benefit Life Ins. Co., 1873-
1448 ; on presidential duties in Mut Life, 1374-1375
on agency dept. of Mut. Life, 1375-1391 ; on contracts with C. H. Ray-
mond & Co., 1375-1376, 1379-13S2, 1384, 1385-1389 ; references of clients
of Mut. Life to 0. H. Eaymond & Co. (E. A. McC), 1525-1528; on
actuarial matters, 1391-1393 ; on his business relations with Mr. The-
baud, 1386-1387
on salaries in Mut Life, 1393-1419; on his own salary, 1395, 1397-1402,
1417; on increase of Mr. Grannis' salary in 1902, 1397; on appoint-
ment and salary of Eobert H. McCurdy, 1510-1512
on proxies, 1395-1397 ; on election of Dr. Gillette as vice-president of
Mut, 1397-1398 ; on growth of assets during his administration, 1339-
1401 ; on function of Life Ins. Co., 1410-1413, 1414-1415, 1416-1417
on campaign funds, Mut. Life, 1419-1421 ; on contributions to state
campaigns, 1420 ; on contributions to congressional committee, 1421 ;
on contributions from Mut. Life to candidates for judicial office in
N. Y. City, 1672 ; on contributions to political parties, 1672-1673 ; on
connection of James F. Pierce with Mut. Life, 1453-1455 ; on con-
nection of C. P. McClelland with Mut. Life, 1455-1456 ; on payments
Eobert Olyphant, 1452-1453; on connection of Mr. Fields with Mut
Life, 1457-1466; on supply dept. Mut. Life, 1459; on payment to A.
' Hamilton, 1466-1467, 1468-1471 ; on connection of J. Howard, Jr.,
with Mut. Life, 1463-1464; on legislative services of Charlton T.
Lewis, 1473-1475; on Albany house, 1590-1592; on repeal of section
66 of ins. law, 1476-1482; on disbursements of funds for purposes
extraneous to business of Mut. Life, 1421-1422; on advertising coup-
ons, 1429-1430
on dividends of Mut. Life, 1432-1449 ; on policyholders' letter of Oct. 5,
1905, 1435-1436 ; on the reduced rate policy system, 1435-1436 ; on
. reduction of expenses in Mut. Life, 1495 (agency dept, 1451-14ri21,
Oaw dept., 1495), (salaries 1450-1451); on Bowles movement, 1495-
1508 ; on executive special dept. of Mut. Life, 1499-1503 ; on tontine
policies, 1509-1510 ; on office appointments of Mut Life, 1533-1535
Life, 1533-1535
on supervision of investments of Mut. Life, 1537; on policy of Mut.
Life in investments in debentures, 1599-1606 ; on real estate dept
of Mut Life, 1539-1548; on his residence Grosvenor Hotel, 1539,
1540, 1543-1548; on his apartments at the Grosvenor 1673
Index — Witnesses and Exhibits. 565
McCurdy, K. A. — Continued:
criticism of methods of investigating committee, 1432-1433, 1442-1443;
on special press notices of Mut. Life, regarding investigation, 1524-
1525 ; defense of investigating committee, 1544
on subsidiary companies, 1C01-1G06, 1610 ; on relations of Mut. Life to
Morristown Trust Co., 1322 ; on his interest in Nat. Bank of Com-
merce, 154S ; on his interest In Hide and Leather Bank, 1549-1550 ;
on his interests in U. S. Mortgage & Trust Co., 1596 ; on his interest
in Guaranty Trust Co., 1595-1596, 1597; on, his interest in Morristown
Trust Co., 1G16, 1017-1018; on loans made to Mut. Life by Morris-
town Trust Co., 1024-1625; on his deposit in Morristown Trust Co.,
1024-1025 ; on his Interest in Fifth Avenue Trust Co., 1641-1642 ; on
his interest in Mut. Alliance Trust Co., 1643 ; on his interest in
American Exchange National Bank, 1644; on interest of Mut.
Life in flotations of securities by subsidiary companies, 1640-1641 ;
on interest of Mut. Life In the Casualty Co. of America, 1663-1664
on syndicate practices, in sale of securities, 1647-1649; on his praticl-
pation In 3rd Avenue Consolidated Bonds Syndicate, 1647; on his
participation in Jap. 4% per cent, syndicate, 1645-1646; on his
participation in Pean. R. R. 3% per cent, convertibles syndicate,
1645, 1646, 1647
on his policies in Mut. Life, 1663-1664, 1608-1669 ; on policies on lives, of
executive officers, 1665-1668 ; on provisions of Mut. Life for traveling
of officers, 1669-1670
McCurdy, R. H. :
general manager of Mutual, 29 ; connection of, with Widows and Orphans
Benefit Life Ins. Co. (K. A. McC), 1874
testimony of, 1202-1214, 1215-1218, 1251-1292, 1301-1307, 1322-1324, 1674-
1681 ; on his connection with Mut. Life, 1203-1210 ; on his connections
with companies other than Mut. Life, 1284-1286, 1287, 1888
on his business association with C. H. Raymond & Co., 1204, 1211-1213,
1214, 1215-1217, 1256-1260, 1261 ; on his receipts from C. H. Raymond
& Co. (ex. 257), 1224-1227; on domestic agency department, 1252-
1256, 1263-1266, 1274-1284, 1289, 1292, 1306-1353; on reduction of ex-
penses in agency dept., 1266-1267; on commissions in N. Y. & Texas,
1268-1270; on philosophy of agency organization, 1282-1284
on his connection with foreign business of Mut. Life, 1205-1210, 1212-
1214; on his receipts from foreign business of Mut. Life (ex. 256),
1213-1214; on his commissions on foreign business, 1205-1210, 1217-
1218; on foreign agency dept. of Mut. Life, 1275-1277; on his salary
from Mut. Life, 1217
on deferrjgd dividend policies, 1263-1264; on ratio of expenses, 1266-
1267; on policy of Mut. Life on authorization of payments, 1279;
on assets of Mut. Life In 1877, 1802-1303; on his syndicate partici-
pations, 1287-1288; on movement against Mut. Life by Bowles, 1322-
1323 ; on two matured endowment policies of his own, 1674 ; on pay-
ments to him for traveling, 1674-1677, 1678-1680
566 Index — Witnesses and Exhibits.
McCurdy, S. S. :
testimony of, on legal expenses of Eqult, 2484-250T
MacDonald :
payments to, from Mutual Reserve for settlement (G. D. E.), 8221-3222
Macfarland, Wallace (counsel for Equit. Life) :
opinion of, regarding compensation of officers, 928
McGuinnes, John (employee of Equit. Life) :
testimony of, 2196-2198, 2199-2200, 2465-2468; on his connectiom with
legislative bills and on memoranda of Mr. Jordan to Mr. Fields, 2196-
2198, 2199^2200; on purchasing department of Equitable, 2465-2468;
on relations of Equit Life with Globe Printing Co., 2466; on supply
depai-tment of Equit., 2466-2467; on relations of Equit Life with
Lawrence & Co., 2466
Mclntyre, W. H.:
account of, with Williamson and Squire (ex. 369), 2330; (ex. 942), 4533;
checks for proceeds of sales on account of, with Williamson and
Squire (exs. 374 and 374A), 2376-2377
member of sub-committee to audit accounts, 1008-1009, 1011
director of Fidelity Trust Co. (J. F. D.), 3666
deed of appointment of, as trustee Under Hyde Trust deed, 123
connection of, with leases of Equit. Life (G. B. B.), 2834; letter from,
to G. H. Squire (ex. 203), 920.
syndicate participation of:— in P. B. W. & L. I. Refunding 4's (H. R.
W.), 881, 884, 886; in syndicates managed by Kuhn, Loeb & Co. (J. H.
S.), 1028; included in "J. H. Hyde & associates" (J. H. S.) 1036;
responsibility of. In syndicate records of Equitable (J. H. H.) 2213-
2214
McKeen, James:
on previous legislative investigation of insurance, 10-15; comparison by,
of assets of banks of England, Prance & Germary with assets of
Mut. Life, 1427-1428; correction by, of statement of salary of the
president of the Imperial Bank of Germany, 1523; reading by, of ab-
stracts of information from statements furnished by companies out-
side of N. Y. City, 4763-4769
McVey, Rev. John:
letter from, to Sec. Mutual regarding policy 114, 3498
M
Mabie, Charles (2d vice-president of Mut. Res.):
retirement of (G. D. B.), 3023; salary of, as vice president of Mut. ReS.
(G. D. B.), 3099; connection of, with Northwestern Life traitsaction
(G. D. B.), 3090 . ^
Mackay-TSfesbitt Co.: ,
relations of, to N. T. Life (B. D. B.), 255-258
Maddox:
relation of, to King Model House of Equit. Life (G. R. B.), 2826-2827
Maiden Lane Nat Bank:
changed into Mctr. Bank (J. E. H.), 2097; deposits without interests et
Metr. Life (J. R. H.), 2102-2103
Main. A. W., see Mayne
Index — Witnesses and ExhihUs. 5()7
Alakelcy (former special agent of Mut Life):
business of (R. A.. McC), 1528-1530
Mamai-oneck property of Prov. Savings Life:
value of, and transactions regarding (W. T. G.), 4006, 4010-4013
Manhattan Bond and Underwriting Co.:
formation of, in Spring of 1905, by directors of Knickerboclcer Invest-
ment C!o. (H.P.T.), 4104; stocli of Bankers' Life Ins. Co. lield by (H.P.
T.), 4104; ownership of stock in, by Townsley and Van Schixiek (H.
P. T.), 41(V4-4105, 4106; purpose of organization of (H. P. T.), 410.5:
form of bond of (ex. 761), 4105; position of, with regard to Kniclter-
bocker Investment Co. and Bankers' Life Ins. Co. (H. P. T.), 4105;
suit against by Howard Stokes of Knickerbocker Investment Co.
(H. P. T.), 4105-4106
Manhattan Life:
actuarial dept; calculation of loadings (M. W. T.), 4654; reserve (M.
W. T.), 4655; calculation of profits and distribution of surplus (M. W.
T.), 4652-4659; simon pure surplus (M. W. T.), 4655
agency dept; competition with other cos. (H. B. S.), 4640; efforts of
agents to procure proxies (H. B- S.), 4604; expense of Syracuse
agency (H. B. S.), 4663; W. P. Lane in charge of agency dept.
(H. B. S.), 4664; Manhattan Sec. Agency Co. (H. B. S.), 46.37; allow-
ance for expenses (H. B. S.), 4645, 4640, 4647; schedule of compen-
sations for general agents (ex. 904), 4643-4646; schedule of compen-
sations to sub-agents (ex. 903), 4641-4642; contracts with Dunham
(ex. 905), 4643-4646; ratio of cost of *gency to first year's premiums
(H. B. S.), 4646-4647; payments of salaries in addition to commis-
sions (H. B. S.), 4646
auditing accounts of (H. B. S.), 4634
bank balances of, and rates of interest on same (ex. 207), 4662-4663;
deposits with Knickerbocker Trust, Mechanics' Nat. Bank, and Citi-
zens' Central Bank (ex. 907), 4662-4663
capital, amount of (H. B. S.), 4625; provisions concerning in charter
(H. B. S.), 4622-4623
commission rates (H. B. S.), 4640-4641; commissions on insurance to
officers (H. B. S.), 4627-4628
committees of (H. B. S.), 4625; members of Finance Committee (H.B.S.),
4625; members of auditing committee (H. B. S.), 4634
contingent fund account of (M. W. T!), 4652 ,
flividends and interest, amounts of (H. B. S.), 4625; payment of (II.
B. S.), 4649; dividends paid out in 1804 (M. W. T.), 4652; decrease
of dividends since 1879 (M. W. T.), 4657-4638; provisions concerning
dividends and interest, in charter (H. B. S.), 4023-4025; statement
of Co. regarding annual and deferred dividends (M. W. T.), 4058-4051);
mortuary dividends (H. B. S.), 4651
election, returns of, 1896 (ex. jOO), 463.6
examination by Insurance Dept., report of (ex. 902), 4036
exhit)its, 891, 892, 893, 894, 896, 897, 898, 966,
56S Index — 'Witnesses and Hxhihits.
. — IN . -I
Manhattan Life — Continued:
expenses;
ratio of, to loadings (W. A. M.), 3603; reasons for ratio (H. B. S.),
4637-4639; comparison of, with other companies (H. B. S.), 4659-4660.
investments;
securities purchased and sold in last ten years (exs. 896, 897, 898),
4031; net income from invested assets (H. B. S.), 4634; change la
book value of Little Falls and Dolgeville R. E. Co. bonds (H. B. S.),
4660-4661
lapses; reasons for large number of (H. B. S.), 4639; ratio of (M. W.
T.), 4658
legal and political expenses (ex. 893), 4627; campaign contributions
(H. B. S.), 4627
loading; on first years' premiumsi in 1903 & 1904 (H. B. S.), 4648-4649;
ratio of, to expenses (W. A. M.), 3603; (H. B. S.), 4637-4689; calculation
of (M. W. T.), 4654
loans:
on collateral (ex. 895), 4630; (ex. 906), 4660; to directors (H. B. S.),
4630; to A. L. Dolge (H. B. S.), 461
new business; cost of, in 1903, 1904 (H. B. S.), 4648-4649; efforts to
reduce expenses of (H. B. S.), 4647-4648
officers:
additional payments to, on profits (H. B. S.), 4628-4629; interest of,
in loans (H. B. S., 4628-4629; authority of president, to expend sums
without consultation (H. B. S.), 4625-4627
organization:
charter (ex. 891), 4622-4625; by-laws (ex. 892), 4625; payments on ex-
ecutive order (H. B. S.), 4625-4027
policies: popularity of 20 payment life (H. B. S.), 4639; survivorsliip
of (H. B. S.) ,4650
policyholders:
voting rights of (H. B. S.), 4634-4636; number of (H. B. S.), 4635;
failure of Co. to issue scrip to (H. B. S.), 4650-4651; total amounts
received from and paid to (H. B. S.), 4664
proxies: ,
form' in use and number of (H. B. S.), 4634^4636; form of letter re-
questing (ex. 901), 4686; efforts of agents to procure (H. B. S.),
4664
real estate:
net income from main building (H. B. S.), 4632-4634; book and market
value of (H. B. S.), 4633; statement of (ex. 899), 4633; net income from
total (H. B. S.), 4634; rental in main offices to Walter 0. Stokes & Co.
(H. B. S.), 4682
rebates on taxes (J. J. M.), 4539
salaries of officers (ex. 894), 4628
Index — Witnesses and Exhibits. 569
Manhattan Life — Continued:
surplus: distribution of, and failure of Oo. to issue scrip (H. B. S.),
4640-4651; increase of due to survivorship dividends (M. W. T.), 4653-
4654
syndicate dealings of (H. B. S.), 4627-4632
voting right, of share and policyholders (section 9 of charter), 4623
Manhattan Railway Stock tJndervrrlting Syndicate:
participation in, by G. H. Squire and Mercantile Trust Co. (G. H. S.),
2539
Manhattan Security Agency Co.:
organization of and relation to Manhattan Life (H. B. S.), 4637-4638
Manning, W. S.:
movement of, against Ins. Cos. (J. A. N.), 2554-2556, 2558-2568; payments
to, from Equit. Life (J. A. N.), 2555-2556; payments to, from Mut. Life
(.T. A. N.), 2563-2564; payment to, from N. Y. Life (J. A. N.), 2564-2565;
connection of, v^ith investigation of 1882 and 1885 (J. A. N.), 2565-
2566; family and business connection of (J. A. N.), 2566-2567
t'estimony of, 2805-2824; on his former connection vfith various life in-
surance companies, 2806-2808; on his reasons for leaving Hartford
Life (ex. 448), 2806-2807; on his testimonials from Washington Life
§x. 449 and 450), 2807; on his testimonial from Mut. Ben. (ex. 451),
2807; on his endorsement by Prof. B. Wright and others (ex. 452).
2S07-2808; on payments to him through Mr. Nichols, 2808-2810, 2811,
2822-2824; on his attitude towards insurance officers as distinct from
insurance, 2808, 2810, 2819; on his connection with Equit. Life. 2808;
on his retention by N. Y. Life, Mut. and Equit., 2810; on his argi'
mont before State Commissioner of Insurance (1883) (ex. 453), 2810'
2811; on his connection with C. M. Depew and Graham bill, 2819-2820;
on payment t'o him for opposing Graham bill, 2824; on garbling of
evidence in printed reports of investigation of 1877, 2812-2813; on re-
port of insurance investigation of 1877 (ex. 455), 2813-2819; on book
published by him on insurance investigation of 1877 (ex. 455), 2813-
2819; on disposals of his books, 2813-2814; on his promise to discoh-
tinue publishing book in return for certain payments, 2821-2823
Marquand:
subscription of, to Missouri Safe Deposit Co. (J. H. H.), 2818
Marsh, Dr. Ellas J.:
salary of, from Mut Life (R. H. McC), 1273
Marshall (employee of N. Y. Life) :
notes of, 282, 286, 308-309 ; salary of (E. D. R.), 293
Marshall, Wm. A; (Actuary of Home Life):
testimony of, 3589-3608, 3609-3613; on calculation of dividends on annual
dividend policies, 3590-3594 ; on interest rates In Home Life, 3590-3591,
3594; on loading percentage, 3591-3592; on calculation of deferred
dividends, 3594-3599 (ex. 672), 3609-3611 ; on use of estimates, 3599-3602,
3605 ; on relation of estimates to results, 3601-3602, 3605-3606 ; on ratio
of loading to expenses, 3602-3605, 3611 ; on cash surrender values, 3606-
3608, 3611-3613; on lapses, 3608
Martin, A. S. :
connection of, with state insurance department (F. H.), 4194
)70 Index — Witnesses and Exhibits.
Mass. Gas Co. Syndicate.
participation in, by Metr. Life (S. B. D.), 524-526
Massachusetts Ins. Dept. and Ins. Law :
see Ins. Dept's and Ins. Law
Massachusetts Life Ins. Co. of Springfield (unexamined) :
statement of, 4818-4822; documents furnished by, 4818; history and ad-
ministration of, 4818-4819 ; banlj balances of, 4821 ; commissions of, 4822 ;
directors' fees of, 4819 ; elections in, 4818 ; finance committee of, 4820 ;
investments of, 4821-4822; legal retainers of, since 1895, 4820; legislat-
tive payments of, 4821 ; political contributions of, 4821 ; salaries of, 4818-
4819 ; mode, of, of distributing surplus, 4822 ; syndicate participations of,
4822
Mattison, Milton M. (employee of N. Y. Life) :
notes of (E. D. R.), 282, 285, 287; salary of (E. D. R.), 292
statement of:
on commission paid to G. W. Bartholomew, 678 ; on Missouri Pacific 5's,
681 ; on Chicago & Alton 3 per cent Refunding bonds, 682 ; on tem-
porary loan to Goldman, Sachs & Co., 683-684; on joint account of N.
Y. Life in Southern Pac. Refunding 4's„ 695-696, and testimony on
same, 901-902 ; on profits in Erie Convertible 4's, 698, on rates of inter-
est on Hegeman loans, 946 ; on non-ledger assets of N. Y. Life, $43,-
000 bonds of U. S. Steel Corporation, 2892, 2894; on non-appearance as
a loan of payment to Kidder, Peabody & Co. of $930,000, 2916-2917
testimony of, 668-669, 696-697, 708-709, 713 (ensuing testimony is incor-
rectly labeled Mattison in book of testimony), 2845-2849, 2854-2860;
2898-2901 ; on joint account of N. Y. Life, with Savannah, Florida &
Western 5'.s 668-669 ; on Chicago & Northwest 3%'s, 673-677 ; on check
to J. P. Morgan for $800,000, 708-909; on interest im $800,000 purchas(;
of securities from Morgan & Co., 713 ; on N. Y. Life's syndicate parti
cipations in name of N. Y. Security and Trust Co., 2845-2849 ; on connec-
tion of N. Y. Life with U. S. Steel syndicate (ex; 460-471), 2854-2866;
on N. Y. Life syndicate account, 2859-2863 ; on payment of check from
Kidder, Peabody & Co., to G. W. P. for Nylic, 2864-2865 ; ignorance of,
concerning $59,000 to Hamilton, 2862 ; on non-appearance on ledger of
$59,000 to Hamilton, 2898-2901
iXaynard, V. C. : connection of with Syracuse agency of Manhattan Life
(II. B. S.), 4663-4664
JIayne, Alfred W. (associate auditor of Bquit. Life) :
association of, with W. T. Thummel, (W. F. T.), 1195; connection of,
with commissions to Mr. Tarbell (M. M. M.), 2845
testimony of, 1051-1072, 3004-3008 ; on legislative Interests of Equit. Life,
1051-1072 ; on his connection with insurance legislation and A. Hamil-
ton, 1051-1053 ; on his relations with E. L. Short and W. T. Thummel,
1063, 1065-1066; on commutation of renewal commissions for G. Tar-
bell, 3004-3008
Mechanics National Bank : deposits of Manhattan Life, with and rates of
Interest (ex. 907), 4662
Memphis and Charleston Railroad:
participation in by N. Y. Life (E. D. E.), 254
Index — Witnesses and Exhibits. STl
Mercantile Loan and Warehouse Co., see Mercantile Trust Co.
Mercantile Nat. Bank of N. Y.:
relations of, with Sec. Mut. (C. M. T.), 3456-3458
Mercantile Safe Deposit Co.:
oi-ganization of aiter panic of 1873 (J. H. H.), 2315-2316; assumption
by of safe deposit lease of Mercantile 'Trust with Equitable Life
(J. H. H.), 2315; indenture between Bquit. Life, Mercantile Safe De-
posit Co. and Cafe Savarin (D. M. J.), 2460; Inadequate leases paid
by, to Equitable Life (G. R. B.), 2826-2834
Mercantile Trust Co.:
account No. 3 of J. W. Alexander with (ex. 377 and M. M.), 2381-2385;
$65,000 paid to, in G. H. Squire Trustee account (Oct. 4, 1902) (H. G.),
913; checli transactions of, with T. D. Jordan and Equit., 922 (M. M.),
2381-2385
relations to Bquit. Life:
contribution of business by to Bquit. Life (J. H. H.), 2324-2325; in
Chicago & Northwest R. R. Co. con. .SVa's (H. R. W.), 872-873; in
Penn. Ooal Purchase (H. R. W.), 841; in Union Pac. Reorganization
syndicate (H. R. W.), 923-925; in W. Maryland R. R. syndicate
(H. R. W.), 871; date of tenantry of, with Equitable Life (J. H. H.),
2314
connection with, of L. Fitzgerald (J. H. S.), 1022
connection of, with Kuhn, Loeb & Co. (J. H. S.), 1034
officers of, connected with Equit. Life (H. R. W.), 829-831
relations to safe deposit cos.:
transference to, of Hyde stock in Equitable Safe Deposit Co. of Bos-
ton (J. H. H.), 2317; sale by, of Equitable Building in Saint Louis,
to Equitable Life (.T. H. H.), 2317-2318; lease of deposit vaults in
Equitable Building, Saint Louis (J. H. H.), 2318; payment to, of
$175,000 on organization of Missouri Cafe Deposit Co. (J. H. H.),
2318; payment to, by H. B. Hyde for three safe deposit cos. (11.
B. H.), 2318-2319
connection of, with Cafe Savarin (D. M. J.), 2451-2452, 2453, 2456, 2461-
2462
suit of Gov. Odell against, and settlement of (J. H. H.),' 2325; B. H.
H.), 2350-2353; (B. B. O., Jr.), 2392-2393, 2394-2397; settlement of
other suits with, than Gov. Odell's (B. B. O., Jr.), 2399, 2402; bill
repealing charter of, and attitude of Gov. Odell towards (B. B. O.,
Jr.), 2391-2392, 2397, 2400-2401
stock of:
share of Equit. Life in increase of (J. H. H.), 2314-2315; present
holdings in, of Equit. Life (J. H. H.), 2319; sale of, to M. Gould
for $500 (J. H. H.), 2324
syndicate participations of:
Chicago, Burlington & Quiney purchase (H. R. W.), 849; Jap. 4%'s
(H. R. W.), '888-890; Manhattan Railway Stock Underwriting (G.
H. S.), 2539; Northern Pac. (H. R. W.), 796; Pittsburg Coal loan
(H. G.), 905-906, 912; Pittsburg & Toledo syndicate (H. R. W.),
847-848; K. R. Securities Co. (H. R. W.), 843; Southern Pac. R, R,
572 Index —Witnesses and Exhibits.
Mercantile Trust Co. — Continued:
1st refunding 4's (H. R. W.), 886-887; St. Ix)uis & Iron Mountain
Railway 2d mortgage 5's (H. R. W-), 795; St. Paul & San Francisco
underwriting syndicate, to (H. R. W.), 794; Union Pac. convertible
bonds (H. R. W.), 801; Union Pacific Railway bonds (H. R. W.), 794;
Union Pac. Reorganization Purchase Money syndicate (H. R. W.),
804; (H. R. W.), 829-830; W. Va. Central & W. Maryland purchase
syndicate (H. G.), 907-909
Merchants Trust Co.:
connection of, with N. Y. Life's loan of secuTiities to Central Bank (E. D.
R.), 2980; connection of, with U. S. Life (J. P. M.), 4590, 4541
Merrien, DeWitt O.r
connection of, with acquisition of . Northwestern Life, by Mut. Res.
(G. D. E.), 3087; contract of, with Mut. Res. (ex. 557), 3087-3089; supple-
mental contract of with Mut. Res. (ex. 3286-3287; ass.ignment of claims
of, in Northwestern Life deal to Levinson (G. D. E.), 3091-3003; assign-
ment by to G. Storm (ex. 590), 3212
Merrill, John J. (corporation tax clerk): testimony of, on litigation over
retraction of tax law of 1901, 4547-4542
Metr. Bank:
organization and connection of, with Metr. Ldfe (J. R. H.), 2096-2097,
2098; shares of, held by officers of Metr. Life (J. R. H.), 2097-2098; shares
held by J. R. Hegeman in (J. R. H.), 2066; deposits of Metr. Life with
(J. R. H.), 2100-2103.
Metr. Industrial Reserve:
table of, in N. Y. and Mass. (ex. 346), 2040-2041
Metropolitan Life Insurance Co.:
acquisition of Industrial insurance cos., and method of acquiring (H. F.),
2191-2196
actuiial department:
concessions on valuation of policies in industrial dept. made by Mass.
& N. Y. ins. depts. (J. M. C), 1981-1983; reduction in amount of bene-
fits receiived by industrial dept. (J, M. C), 1988-1989; table increasing
life and endowment (H. F.), 3847-3851; reasons for terminating en-
dowment at age 79 in Increasing life and endowment (J. M. C), 1989-
1991; gain to company from use of .increasing life and endowment
tables (J. M. C), 2167, (J. R. H.), 2173-2174; table of whole life com-
pared with increasdng life and endowment (J. M. C), 1992-1994;
charges for endowment features of infantile endowment (J. M. C),
19©6-1907; tables of infantile whole life in force before infantile en-
dowment (J. M. C.), 1997-1999; table of infantile endowment (J. M.
C), 2000; comparison of infantile whole life with endowment table
(J. M. C), 2000-2001; liens on policies (J. M. C), 1975-1976; 1978-1979;
loading on premiums (J. M. 0.), 2045-2050; mortality table in indus-
trial dept. (J. M. C), 1979-1981; Craig's table for calculating mortality
rates, in special class (J. M. C), 1978; persistence of insurance in in-
dustrial dept. (J. M. C), 1996; persistence of infantile endowment
policies (J. M. C), 1995-1996; endowment period in industrial dept.
according to increasing life and endowment table (J. R. H.), 1980-1961;
Index — Witnesses and Exhibits. 573
Metropolitan Life Insurance Co. — Continued:
endowment period, according to infantile endowment table (J. R. H.),
1931-1932; ratio of amount paid to amount received on Increasing life
and endowment taMe (J. M. C), 2041-2043; proportion of net premiums
in $10 weekly payments (J. M. C), 2045; industrial experience tables
(ex. 696), 3812, 3813, 3815
advertising business of (H. F.), 3854; amount paid in Mass. to news-
papers, 1905 (H. F.), 2188
agency dept.:
organization of, in industrial branch (.1. R. H.), 1953; percentage paid
on collections (J. R. H.), 1942; metliods of payment of agents (H.
F.), 2183-2186; agent's ordinary and special salaries, and responsi-
bility for lapse (J. _R. H.), 1954-1958; peccability of agents (J. E. H ),
2004-2065; charges to agents for excess arrears (.T. R. H.), 2175-217();
(H. v.), 2170-2180; interests of agents, in preventing lapses (H. F.).
3811; fluctuation of agents, cause ©f expense of lapses (H. F.), 3822-
3823; form of contract with agents in industrial dept. (ex. 315),
1953-1955: form of contract with assistant superintendent (ex. 316),
1957-1959 • average compensation of assistant supts. (J. R. H.), 1959;
form of contract with superintendent (ex. 317), 1959-1960; contracts
with superintendents (J. R. H.), 2006; number and salaries of super-
intendents (.1. R. H.), 2065-2060; average compensation of supts. (J.
R. H.) 1059-1960; (H. F.), 2182-2183; special .salary paid on in-
dustrial business m 1904 (H. F.), 3823; percentage of industrial
agents, writing ordinary business (H. F.), 3835-3837; agents' surety
bonds (J. R. H.), 2071-2072; advice to agents (ex. 340), 2013-2024;
book of instructions for agents (ex. 351), 2174-2175; advice to agents
regarding advance payments (J. R. H.), 2174-2175; agreement with
other companies regarding employment of agents, and rate (H. F.),
2187; agreement with N. Y. Life, regarding agents (T. A. B.), 979-
980; question of substituting branch offices for agents (H. F.), 3838-
3841; complaining letters from agents, to investigating committee
(H. F.), 2178-2179.
assets and expenditures (1876), 14; (1905), 14.
banking and brokerage dealings and interests:
list of banks (S. B. D.), 530-531.
balances and deposits (ex. 70), 530; (ex. 351), 2099-2103; with Hamil-
ton Trust (S. H. D.), 531-532; (J. R. H.), 2101; with Metr. Bank (J.
R. H.), 2100-2103; with Metr. Trust Co. (J. R. H.), 2101; with Nat.
Shoe & Leather Bank (.T. R. H.), 2101; with W. A. Read & Co. (J.
E. H.), 2100-210]. 2104; with Vermilye & Co. (J. R. H.). 2100, 2101;
deposits without interest: with Hamilton Trust Co. (J. R. H.),
2101; with Maiden Lane Nat. Bank (J. R. H.), 2101-2104; with Metr.
Bank (.1. R. H.), 2104.
Interest of: in luternatlonaJ Banldng Co. (.T. R. H.), 2099; in Kansas
'City Nat. Bank of Commerce (J. R. H.), 2104; in Metr. Bank, 20!>0-
2098; in Nat. Shoe and Leather Bank (J. R. H.), 2008-2099.
relations of, to \V. A. Read & Co. and Vermilye & Co. (S. B. D.), 511-
512. 524, 525; (.T. K. H.), 2074-2075, 2078-20S6; purchase through and
574 Index — Witnesses and Exhibits.
l.tetropollt'an Life Insurance Co. — Continued:
of Vermilye & Co. (W. A. R.),), 2159-2161; sales of securities to W.
A. Reed at less than market prices (J. R. H.), 2078-2083; discrep-
ancies in stocli quotations in dealings with Vermilye & Co. (J. R.
H.), 2084-2086; explanation of sale of securities through W. A. Reed
& Co. (J. R. H.), 2130-2131.
bonuses:
received from Randolph Mason Coal Co. (J. R. H.), 2091-2094; to
president in addition to salary (J. R. H.), 1949-1950, 1951-1952.
capital stock (H. F.), 89.
child insurance:
question of (T. R. H.), 2012-2018; defeat legislation against (H. F.),
3798-3790; statistics showing advantage ot (ex. 697), 3844-3846;
average benefits of (H. F.), 384.5; average death claims paid on (H.
F.), 3846-3847; proportion of lapses (H. F.), 3846; medical inspection
of children (H. F.), 3847-3838; charges of abuse of insured children
(H. F.), 3848.
clerks and typewriters, number and salaries of (J. M. C), 2048-2049.
commissions to agents (ex. 350), 2170-2171; (J. M. C), 2046; commissions
previously given to president and vicelpresident on increase in busi-
ness (J. R. H.), 1946-1049.
comptroller: institution of office of, duties and salary (J. R. H.), 1960-
1961
counsel for, in investigation, 9
disbursements (commercial), 533; (legal) (S. B. D.), 533; unauthorized
disbursements (J. R. H.), 2009-2070
dividends :
to stockholders (provisions of charter and H. F.), 89-90, 91-93, 94
distribution of, on non-participating policies (J. R. H.), 1966-1967
distribution of, among various classes in 19C4 (J. M. C), 1972-1973
distribution of, in industrial dept., in 1904 (J. M. C), 1973-1974
guaranteed reversions dividends (J. R. H.), 2172-2173
elections of directors or trustees :
practices regarding (H. F. — F. H. E.), 89-95; participation of policy-
holders and stockholders in (H. F.), 89, 91, 92-94; proportion of
proxy votes (I\ H. K), 95-96
examinations of (H. F.), 4299; (I. V.), 4365-4366; statement of expenses
for (ex. 1003), 4760-4761
Exhibits 66A, 67, 60, 70, 309, 310, 311, 312, 313, 314, 315, 316, 317, 318,
319, 340, 341, 342, 343, .3!^. 345, 346, 347, 348, 349, 350, 351, 352,
353, 696, 1,001, 1,002, 1,003, 1,004, 1,005, 1,013
expenses :
comparison of, with other companies (J. M. C), 2046-2049, 2051 ; ratio
of, to income as compared with Mut, Equit., and N. Y. Life (J. R.
H.), 1941-1942; ratio of, to amount paid policyholders (J. R..H.),
1942-1944; of industrial department of (J. K. H.), 2016-2017; reasons
for, in industrial dept. (J. R. H.), 1941-1944; items aggregating
$19,874,752 in 1904, in Industrie. 1, dept. (J. R. H.), 1945-1946; items
Index — Witnesses and. Exhibits. 5Y5
Metropolitan Life Insurance Ck). — Continued:
aggregating 5!1.940,044.05. in Industrial dept. (ex. 313). 1946: ques-
tion of reduction of, in industrial business (H. F.), 3834-384.1; ex-
penses of ordinary department covered by profits of industrial busi-
ness (H. F.), 3835-3837; for printing stationery, and postage (H. F.),
3854-3855
fees for directors and committees (H. F.), 100, 101
finance committee; worlsing of (H. F.), 100, 101; (S. B. D.), 508-510;
fees of (H. F.), 101; authorization of purchase of stocii from 6. P.
Butler & Co (I-I. F.), 3801
fire insurance on mortgages managed by Dutcher and Edminster (J. R.
H.), 2108-2109; (W. E. E.), 2156-2157
foreign business of (H. F.), 2186-2187
growth of company, figures showing (J. R. H.), 1920-1921
industrial department :
nature and non-participating character of (J. R. 11.), 1774; voluntary
dividends to policyholders (J. R. H.), 1770-1777; payment of policies
to undertakers and creditors (J. R. H.), 2055-2056; payment of poli-
cies in case of death before end of endowment period (J. R. H.),
2055-2056; treatment of misunderstandings in technical lapses (J.
R. II.), 2058-2059; investigation of complaints (J. R. H.), 2059; re-
tention of policies by policyholders (J. R. H.), 2064-2065; propor-
tion of amount paid to amount received by policyholders (J. M. C),
2041-2045, 2050, 2051; statement of claims paid on industrial policies
(ex. 348), 2104; number of policies written in 1904 (H. F.), 3823;
proportion of maximum death claims to average amount paid (H.
F.), 3846; age proportion of iwlicies of Metr. Life compared with
same of population (H. F.), 3843-3844; maximum limit of insurance
per age in (H. F.), 3846; organization of agency branch (J. R. H.),
1953; question of branch oflice instead of agents (H. F.), 3838-3841
insurance in force, distribution of (ex. 312), 1939; statement of (ex.
1005), 4761
intermediate department :
participating character of (J. R. H.), 1773-1940; comparison of
premiums and risks in. with ordinary dept. (J. M. C), 1971-1972;
workings and results of (H. F.), 3837
investments:
securities offered in evidence (H. F.), 101; bonds and stocks owned
Sept. 1, 1905 (ex. 66A), 510; methods of purchase of securities (S.
B. D.), 511-512; statement of market value of securities in report
(J. R. H.), 2017-2020; explanation of values (J. R. H.), 2131-2132;
method of valuation (J. R. H.), 2167-2170; interest on investments
(S. B. D.), 531-533; investments on basis of estimates; Allis-Chal-
mers Co. (J. R. H.), 2094-2095; Worcester R. R. & Investment Co.
(J. R. H.), 2095-2006; Randolph Macon Coal Co. (J. R. H.), 2000-20ill;
Ijurchase of stock of L. S. & M. S. R. R. from G. P. Butler & Bro.
and Vermilye & Co., and prices paid (H. F.), 3790-3&)l; commis-
576 Index — Witnesses and Exhibits.
Metropolitan Life Insurance Oo. — Continued:
sions of Read & Butler & Co. (H. F.), r!853-3854; in Pope Mfg. Co.,
guarantee concerning stocli owned (J. R. H.), 2017-2020; invest-
ments in Randolph Macon Coal Co. (J. R. H.), 2091-2092, 2093
lapses:
fost of, in industrial department (H. F. & J. C), 3817-3828; death
claims on, in industrial department (H. F.), 3816-38-17; name made
to include terminations by death (J. M. C), 2165-2160; b.y death, not
charged to agent (H. F.), 2186; decrease in (H. F.), 2185-2186; ex-
cess arrears on (J. R. H.), 2174-2176; liabilities, release from
(H. F.), 3828-3830; loss on. to company in industi'ial depart-
ment (H. F.), 3802-3805, 3813-3S28; " non talien " policies in indus-
trial department {H. F.), 3812-3813, 3814; number of, in indus-
trial department and total premiums from, in 1904- (H. F. ), 3804;
average premiums on cancelled policies in industrial department
(H. F.), 3804, 3815; payment for, by premiums of persistent
policyholders (H. F.), 3827-3828; proportion of, with no return to
policyholder {J. R. H.), 1936, 1939-1940; question of (H. F.), £801-
3814; ratio of (.J. R. H.), 1933-1933; ratio of, in infantile policies (.1.
M. C), 1999; ratio of, decreasing (H. F.), f;815; revival and re-issue
of, in industrial department (H. F.), 3806-3809; average number of
revivals of (H. F.), 3315-3816; schedules of (exs. 509, 310), 1934-1935
legal and legislative expenses and interests:
connection of Wm. Barnes, Sr., with legislation department (W. B.,
Sr.), 202G-2C'31; campaign contributions to commmittees in 1898 (J.
R. H.), 2066-2007; disbursements of Mr. Fiske fJ. R. H.), 2069-2070;
influence of hostile legislation (,I. R. H.), 2014-2015; retention of per-
sons connected with insurance department (H. F.), 2188; co-opei'a-
tion with Mut. Life and N. Y. Life (A. H.), 4424-4427; arrangement
with Prudential Ins. Co. and .Tohn Hancock Life (.T. F. D.), 3680;
co-operation and payments with I'rudential Insurance (J. F. D.),
8673, 3675-3677, 3680; legal expenses for 1904 (,T. R. H.), 2015; (ex.
353), 2015, 2180-2190; payments t-i A. Hamilton (ex. 347), 2067-2068;
statement of payments (excluding A. Hamilton, ex. 352), 2187-2189;
expenses connected with bill against child insurance (H. F.), 3798-
8799; expenses shared vvith John tiancock and Prudential Ins. (H.
F.), 3797-3798.
loading on industrial premiums (.J. M. C.), 2045-2046, 2049; on ordinary
premiums (J. M. C), 2046-2030; comparison of, with other companies
(J. M. C), 2050.
loans :
on collateral, non-appearance of, in annual report (J. R. H.), 1778-
17^; to S. B. Dutcher and rate uf interest on (J. R. H.), 1780-1781; to
J. B. Hegeman, and low rate of interest on (J. R. H.), 1778; to J. A.
McGall (J. A. McC), 1152-1153; (J. R. H.), 1781-1783; to. W. A. Read
(J. n. H.), 2073-2074, 2076-2078; to St. Louis, Rocky Mountain and
Pacific R. R. Co. syndicate (J. R. H.), 2077-20'78; transfer of, to
Vermilye & Co. at end of year (W. A. R,), 2162
medical exiamination; and inspection of risks in industrial dept. (J. R.
H.), 1923-1929; comparison of, In intermediate department, with in-
dustrial (ex. 319), 1971
Index — Witnesses and Exhibits. 577
Metropolitan Life Insurance Oo.— Continued:
mortali'ty rate:
comparison of, in industrial and ordinary depts. (J. R. H.), 1922-1923;
comparison of, with that of U. S. (ex. 308), 1927-1930; in intermediate
dept (J. M. C), 1970; in infantile policies (J. M. C), 1999-2000
mortuary table (ex. 1013). Vol. II. Ex. 1349
uon-ledger assets:
accrued interest on bonds included in (J. K. H.), 2168-2170
new business:
amount written from 1901 to 1904 (J. R. H.), 1933; expense of, in
industrial department (H. F.), 381&-3826
officers:
list of, 98; duties of (H. F.), 99; interests of, in Metr. Bank (J. R. H.),
2007-2098; participation of, in syndicates (J. R. H.), (exs. 344, 345),
2125-2129; extent of stock ownership of (J. R. H.), 1775-1776
organization and government:
charter (H. F.), 88-94; incorporation of, as National Travellers' In-
surance Co. (H. F.), 88; mutual character of (H. R, H.), 2013-2014;
(H. F.), 3851-3853
paid up insurance:
conditions for giving, and distinction of, from cash surrender values
(J. R. H.), 1962-1964; dependence of, upon holder's death within
expectation of life (J. R, H.), 1964-1966; reasons for limiting payment
to death within expectation of life (J. M. O.), 1993-1995; on increas-
ing life and endowment plan (J. M. C), 2043-2045; in industrial de-
partment, and term insurance (J. R. H.), 2059, 2062; (H. F.), 3808;
basis of computation for (H. F., 2190-2191
policies :
adult whole life in industrial dept. (ex. 318), 1963-1964; comparison
between endowment policies and whole life policies (J. M. C), 2052-
2054; whole life policies compared with increasing life and endow-
nrent (H. F.), 3840-3851; infantile policies (H. F.), 2187; form of
policies, in special class (ex. 319), 1976-1977; number of participating
policies In Industrial dept. (J. M. 0.), 1969; number of participating
policies. In special class (J. M. 0.), 1967-1968; number of participating
policies, in ordinary department (J. M. C), 1967; statement of average
duration of policies (ex. 347), 2163-2164; non-participating character
of policies (H. F.), 3852-3853
policyholders:
character of industrial (J. R. H.), 2014; complaining letters from, to
investigating committee (J. R. H.), 2056-2064; complaining letters
from, explained (H. F.), 2179-2182; publicity of lists of (H. F.), 102;
loss to, on lapses compared with loss to company (H. F.), 3804-
3805; average amount of policies of (H. F.), 101; proportion of, in
industrial department, getting no return for their money (J. R. H.),
1939, 1940; ratio of amount paid by, to amount received on 20
year endowment (J. M. C), 2042-2043; impractibility of giving sur-
render values or paid up policies to, before 5 years (H. F.), 3811-
3812; right of, to surplus (II. F.), 01; voting right of (H. F.), 92-94
678 Index — "Witnesses and Bxhihiis.
Metropolitan Life Insurance Co. — Continued:
premiums:
in industrial department (J. E. H.), 192i; comparison of, in indus-
trial and ordinary departments (J. R. H.), 1922; increase of pre-
miums In industrial department (J. R. H.), 2056-2058; comparison
of, on ordinary and special class policies (J. M. C), 1977-1978; ratio
of, to expenses (J. M. C), 1987-1988; comparison of, on increasing-
life and endowment and on whole life policies (J. SI. C), 1992;
comparison of, on increasing life and enr'owment and infantile en-
dowment with ordinary rates (J. R. H.), 1932; basis of net pre-
mium in industrial department ( J. M. C. ) , 2051-2052 ; net premiums,
in ndustrial department, compared with net premiums on ordinary
basis (J. M. C), 2052
proxies:
form of (H. F.), 97-98; proportion of, in elections (H. F.), 94-96
purchases and sales, list of, for 10 years past (ex. 67), 510
real estate:
statement of amount owned, with book and market values (ex. 346),
2150-2156; transactions concerning Arlington flotel (F. H. E.), 2144,
2145; contract rates (F. H. E.), 2148-2149; transactions concerning
German American building (F. H. E.), 2142-2145; cost of Madison
Square office building (F. H. B.), 2148-2149; book and market values
of Madison Square office building (F. H. B.), 2150, 2153; arrange-
ment for Dr. Parkhurst's cluirch (F. H. E.), 2154; cost and income
from Madison Square office building (F. H. E.), 2154-5155; cost ot
Metr. Bank building (J. R. H.), 2134-2136; proportion of, in N. Y.
(J. R. H.), 2133-2134; property outside N. Y. (F. H. E.), 2155-2156;
transactions concerning Parker Building (.T. R. H.), 2137, 2138; (F.
H. E.), 2138-2142, 2196; rental rate of office building (F. H. B.),
2147, 2148; transactions concerning Seymour Hotel (P. H. E.),
2139-2142; transactions concerning Hotel Spalding (P. H. E.), 214G;
price paid for property on 24th street (F. H. E.), 2196, 2197;
trading transactions (F. H. E.). 2139-2146; transactions conc«ern-
ing Westminster Hotel (J. R. H.), 2137-2138; (F. H. E.), 2139-
2141; exchange transaction with Prov. Savings Life (E. W. S.), 3876
rebates :
on taxes (J. J. M.), 4539; of interest to J. R. Hegeman from Vermilye
& Co. (ex. 341), 2116-2119
reserve:
on adult life policies in industrial and ordinary departments (.1. M. C),
1983-1984; on infantile policies (.J. M. C), 1984-1987; (H. F.), 3833-
3834; ratio on paid up insurance to (H. F.), 2190-2191; time nec-
essary for accumulation of reserve liability, incompatible with
three year statute for paid-up policies (H. F.), 3814-3815; propor-
tion of premiums devoted to (H. F.), 3833; computation of, in
special class of insurance (,T. M. C), 1974-1975; amount of, released
by surrender and lapse in Industrial department (H. F.), 3828-3830
salaries :
of clerks and typewriters, 2048-2050; increase of (J. R. H.), 1946-
1953; of officers (1905) (H. F.), 99; (1S70), 14; statement of (ex. 314),
1940; yearly expenditure in (S. B. D.), 533
Index —Witnesses and Exhibits. S Y 9
Metropolitan Life Insurance Oo.— Continued :
substandard risks ("special class"), classlfleatlon of (J. M C ) 1968-
1969
stock, increase and retirement of (H. F.), 91-92
stockholders :
dividends of (H. F.), 92-93; voting right of (H. F.), 89, 91, 92, 93; H.
B. Hyde on interest of (1877), 14-15
surrender and lapse:
gains on (J. R. H.), 1938; (J. M. C), 2001-2003; ratio of, with re-
leased reserve, compared with other companies (J. R. H.), 1937
surrender values :
schedules of. In ordinary and industrial depts. (ex. 311), 1936-1937;
waiving of, in N. Y., but not in Missouri (J. R. H.), 1961-19G2
surplus :
and law affecting (H. F.), 89-90, 91-92; Interest on, to stockholders,
and increase of (J. R. H.), 1774-1775
syndicates :
general operations of (S. B. D.), 512-530, 528-529; participations of
Finance Committee in (S. B. D.), 512-515
syndicate participations (ex. 69, 511; (exs. 349, 350), 2088-2089;
Allis-Chalmers (J. R. H.), 2091-2092, 2094-2095; American Bicycle
Reorganization (S. B. D.), 513-514; Atlantic Coast Line Syn. (S. B.
D.), 512-513, 528; Lake Shore & Michigan Southern Railway Co. (S.
B. D.), 524; Mass. Gas Co. syndicate (S. B. D.), 524-526; Minn. St.
Paul & S. S. Marie syn. (S. B. D.), 520-522; National Shoe & Leather
Bank (J. R. H.), 2097-2099; Wabash R. R. Co. (S. B. D.), 517-519;
Wabash-Pittsburg Terminal (S. B. D.), 522-524; Western Maryland
R. R. (S. B. D.), 526-528, 529; participation of, in Western Pac. (S.
B. D.), 515-516; (J. R. H.), 2086-2088; Wheeling & Lake BiTie (S.
B. D.), 514-515; Worcester R. R. & Investment Co. (J. R. H.), 2t,>95
Metropolitan Trust Co. :
deposits of Metr. Life with (J. R. H.), 2100
Mexican Central Railway Bonds :
participation of N. Y. Life In, with Kidder, Peabody & Co. (G. W. P.),
2911-2921; participation of Nylic In (G. W. P.), 2931; profits from
transactions In, paid to Nylic (J. A. McC), 2945-2947
Mexican National Readjustment Syndicate:
participation of Equit. Life in (H. R. W.), 805-806, 865
Mexico (TJ. S. of), 4 per cent, bonds, syndicate:
participation of Equit. Life In (H. R. W.), 887; participation of Mut.
Life In (F; C), 433-436, (A. D. J.), 558-560; syndicate agreement with
Mut. Life (exs. 56 & 57), 434; joint account In, of N. Y. Life (G. W.
P.), 704
Michigan Mutual Life Ins. Co. of Detroit (unexamined) :,
statement of 4845-4846 ; documents furnished by, 4845 ; history and ad-
ministration of, 4845; commissions of, 4846; deferred dividends of,
4846; mode of, of distributing dividends, 4846; investments of, 4846;
Joans' of, on collateral, 4846 ; policies of, in force, 4846
580 Index —Witnesses and Exhibits.
Miller, C. E. :
relations of, with Mut. Life (C. A. P.), 1295; responsibility , Of , in
Olyphant loans (R. O.), 1331
Miller, George (Bowies' counsel) :
work of, in Bowles movement (G. T. D.), 1323, 1324, 1325
Miller, Wm. :
suit of, against B. W. Scott (E. W. S.), 3864
Minnesota Mutual Life (unexamined) :
statement of, 4790-4792; documents furnished by, 4790; history and
administration of, 4790-4792 ; total business of, 4792 ; elections of, 4791 ;
legislation payments of, 4792; syndicate participations of, 4794
Minn., St. Paul & S. S. Marie Syndicate:
connection of, with Canadian Pac. Railway ( S. B. D. ) , 521 ; with Metr.
Life (S. B. D.), 520-522; with Vermilye & Co. (S. B. D.), 520-521
Missouri Pac. 4's:
participation of Mut. Life in (A. D. J.), 557
Missouri Pacific 5's:
transaction in, of N. Y. Life (ex. Ill), 680; (G. W. P.), 680-681
Missouri Safe Deposit Co. :
organization and subscribers to stock of (J. H. H.), 2318
Mix, Robert J. (agent):
advances to, from Equit. Life (G. E. T.), 2629-2635; statement of total
advances to, in Frick report (G. E. T.), 2637; indebtedness of, to Equit
(G. E. T.), 2632-2635; duties of, in Equit. Life (G. E. T.), 2642
Moir, Henry (actuary of Prov. Sav. Life):
statement of, on incorrectness of expense item in Blue Book, 3981
testimony of, 3895-3898, 3922-3961, 3973-3979, 3987-3095; error iu comput-
ing gains on mortality in 1898, 1899, 3895-3898; on correctness of gain
and loss exhibits for 1901, 1902, 1903, 1904, 3922-3823; on expense of
new business in Prov. Savings Life, 3923-3924; on reason for excess
of expenses over loading, 3923-.3925; on bonuses to agents, 3924; on
graded scale of commissions, 3925; on policies originaily issued by
Prov. Savings Life, 3925-3926; on decrease in surplus from 1894 to
1896 (H. M.), 3926; on growing mortality and ratio of actual to ex-
pected losses, 3926-3928; on non-guccess of Prov. Savngs Life on
natural premium basis and data showing, 3925-3928; on amount of
insurance and kinds of policies in force at present time, 3928-3929;
on .liens on policies, 3929-3930; on change of yearly renewable term
policies for other forms, 3929-3930; on increase of rates and reasons
for, 3931-3937, 3946; on excess of actual mortality over expected, on
which premium charges were originally based, 3935-3936; on policy
form providing for increase of rates (ex. 718), 3937; on Owen policy
providing for guarantee fund and correspondence regarding, 3931-
3936; on use of American experience table iu fixing premium rate on
policies, 3938-3939; on segregating policies previous to 1889, reasons
for, and results of, 3936, 3939-3944; on influence of mortality rate on
segregation of policies, 3939-3944; on misleading inducements used by
agents, 3945-3947, 3975-3976; on discontinuance of yearly renewable
Index — Witnesses and Exhibits. 581
Moir, Henry — Continued.
term policies, 3047; on preliminary term basis and different valuation
of, in Mass. and N. Y., 3947-3948; on attitude of N. Y. and Mass. Ins.
Departments towards liens on policies, 3947-3948; on obligation of
contract liability, 3918; on preliminary term insurance, 3948-3949; on
proportion of deferred dividend to non-participating policies in Prov.
Savings Life, 3949-3950; on method of calculation of deferred divi-
dends (ex. 719. 720, 721, 722), 3949-3950; on use of estimates and re-
sults in calculation of dividends, 3952-3953; on method of
determining mortality cost and expenses to be charged, 3954; on
increased rate for additional benefits during 10. years, 3957-30(51 ;
on different forms of policies written by Prov. Savings Life, 3957-
3958; on policy of H. C. Evans, showing increased rates and lapses,
3973-3976; on effect of change in bookkeeping on gain and loss ex-
hibit, 3976-3977; on policy of C. Chestnut, No. 63,856, and insufficiency
of his payments, 3977-3979; on total receipts from premiums and pay-
ments to policyholders (ex. 724), 3987-3989; on legal reserve, 3987-3988;
on surplus, Dec. 31, 1904, 3988; on Shapira policy and increase of rates
on, 3991-8992; on his connection with Scottish Life Ins. Co. of Edin-
burgh, as actuary, 3992; on practice of English companies witli regard
to payment of dividends and distribution of surplus, 3992-3995; on
method of English insurance companies of fixing reserve, 3993; on
industrial and participating busiuei?s of Prudential Ins. Co. of Lon-
don, 3994; on passing of the Life Assurance Companies Act in Eng-
land owing to failures, 3994; on comparative premiums abroad and in
America, 3994-3995; on agency methods and commissions in Great
Britain, 3995-3096; on increase of business in Great Britain, 3995
Morgan, J. P.,~ & Co.:
relations of, to W. S. Fanshawe (G. W. P.), 572-573
relations of, to N. Y. Life (G. W. P.), 572-573; transactions of N. Y. Life
with (ex. 140), 715; sales of Dec, 1902, Feb. and April, 1903 (6. W.
. P.), 931-944; securities bought from', by N. Y. Life (G. W. P.), 960-
963: arrangement of G. W. Perkins with, for $3,000,000, in V. S. Steel
transaction (G. W. P.), 2882; arrangement of G. W. Perkins with
to pay N. Y. Sec. & Trust Co., $15,969.16, for N. Y. Life (G. W. P.),
2896; arrangement of G. W. Perkins with, to pay Central National
Bank $40,751.39 for N. Y. Life (G. AV. P.), 2896; payment of $59,310.79
to Hamilton for N. Y. Life (M. M. M.), 2868; transcript of, account of,
-vith A. Hamilton (G. W. P.), 2905; notes of A. Hamilton and E.
E. McCan taken up by (ex. 478-484), 2897, 2898; see also under syndi-
cate operations
syndicate agreements of (B. D. E.), 260
syndicate operations of: in Atlantic Coast Line Syn. (with Metr. S.
B. D.), 528; (with Bquit., H. K. W.), 865-869; in Atlantic Coast Line,
Louisville & Nashville (with N. Y. Life, J. C), 230; in Atchison, To-
peka & Santa Fe bonds (with Mut. Life, F. C), 436-437; in C, B. &
Q. purchase (with Mut. Life, F. C), 338, 418-419; (with Equit., H. K.
W.), 805, 848-863; in Erie convertible 4's (with N. Y. Life, G. W. P.),
574-575, 581-582; In International Navigation Syndicate (with Equit,
582 Index — Witnesses and Exhibits.
Morgan, J. P.— Continued.
H. R. W.), 819-820, 879-880; (with N. Y. Life, G. W. P.), 931-932; in
Mercantile Marine Syndicate (witli N. Y. Life, J. C), 242-244; in
Navigation Syndicate (with Mut. Life, F. C), 414; (with N. Y. Life,
E. D. K.), 349-351, 369; (G. W. P.), 585-586, 587, 662-664; in N. Y.
C. & H. R. R. refunding syndicate (with Equit.,-H. R. W.), 796; in
Northern Pacific-Great Nortliern (with N. Y. Life, G. W. P.), 693-
694; in Northern Pacific syndicate (with Bquit, H. R. W.), 796; in Penn.
Coal purchase (with Equit , H. R. W.), 799-800, 839-841; in Penn. R. R.
convertibles (with N. Y. Life, J. 0.), 248; (with Mut. Life, F. 0'.),
425-427; in Union Pac. Col. Trust Note syndicate (with Equit, H. R.
W.), 924; in United Collieries (with N. Y. Life, E. D. R.), 289
Morgan, R. (director and former president of Bankers' Life): •
effort of, to procure amendment to charter of company (H. D. A.), 4471;
testimony of, 4230-4248; on connection of Mr. Townsley with Bank-
ers' Life and dismissal of, 4232-4233; on organization and re-incor-
poration of Bankers' Life, 4230-4231; on reserve, 4231-4232; on inade-
quacy of former scale of premiums and increase of, 4232-4233; on
cash value policies in Bankers' Life, and opposition of Ins. Dept.
to, 4233-4236; on refusal of Ins. Dept. to allow putting up of money
under assessment law, 4236-4239; on desire of Bankers' Life to re-
incorporate under Sitipulated Premium law and attitude of Ins.
Dept. towards, 4236-4240; on request for examination and deferral
of, 4238-4239; on re-incorporation as old line company and examina-
tion by Ins. Dept., 4240-4245; on retention of Gen. Hoagland and sub-
sequent change in attitude of Ins. Dept., 4241-4244; on issue of pre-
liminary term policies and litigation regarding, 4242-4243, 4245; on
requisition of $100,000 capital and loans to raise same, 4240, 4241,
4246; on sale of stock, 4245-4246; on Townsley litigation, 4246-4247;
on his resignation and establishment of voting trust, 4247-4248
Morgenthau, Henry:
purchase by, of increased stock in Lawyers' Mortgage Ins. Co. (E.
W. C), 4371-4372
testimony of, on Lawyers' Mortgage Ins. Co. stock, 4561-4567; on his
connection with increase in stock of Lawyers' Title Ins. & Trust Co.,
4561; on his interviews with R. A. McCurdy, 4561-4563; on his offer
to R. A. MeCurdy of stock in Lawyers' Mort. Ins. Co. for Mut. Life,
4.503-4567; on interview of Coggeshall with R. A. McCurdy regard-
ing Lawyers' Mort. Co. stock, 4566-4567
Morristown Trust Co.:
capital, and surplus of (F. C), 163, 164; original capital of (R. A. McC),
1615; present capital of (R. A. McC), 1616
dividends of (R. A. McC), 1617
organization of (R. A. McC), 1615
connection of G. G. Haven with (G. G. H.), 4547
relation of, to Mut. Life (F. C), 163-164; (A. D. J.), o63-5&i; (R. H.
McC), 1284-1285, 1322; bank balances of Mut. Life with (F. C), 494-
495; rate of interest to Mut. Life (R. A. MeC), 1618-1624; rates of. to
other depositors than Mut. Life (R. A. McC), 1619; connection of,
with Milt. Life in Jap. Bonds transaction (F, C), 443-446, 447
Index — Witnesses and Exhibits. 583
Mortgage tax bill:
interest of Germania in (J. F.), 4206-4207, 4208
Mortimer, M. L.:
actuary of Prov. Savings Life in 1898-1899 (E. W. S.), 3895
Morton, Paul:
election of, as President of Equitable Life (W. A.), 144; (T. F. R.), 3480-
3483; statement by, to directors of Equitable, concerning Searles
loan (H. G. on), 897; letter of, to Kubn, Loeb & Co. on Union Pac.
Pref. stock syndicate transaction (ex. 184), 854; letter to, from 0. M.
Depew, regarding loan to Lepew Improvement Co. (ex. 3T9), 2424-
2425; letter of, to policyholders of Equit. (ex. 1022). Ex. 1220
Morton Trust Co.:
capital of (F. C), 185
relations of, to Mut. Life (F. C), 184-188; interest paid to Mutual Life
by (F. 0.), 205; directors of, also directors of Mut. Life (G, F. B.), 485;
connection of G. G. Haven with, 4547
account of Washington Life with (J. T.), 4131-4152; fluctuation of bank
account of Washington Life with (J. T.), 4153; letter from, Nov. 20,
1905, on allotment to Washington Life in Republic Iron and Steel Co.
(exs. 790 and J. T.), 4157-4158; securities purchased from, by Wash-
ington Life (J. T.), 4178; connection of 0. H. Allen with (J. T.), 4113
Moss, Moton D. (agent) :
connection of, with Mut. Res. in England and tJ. S. (G. D. E.), 3212-3213;
commissions and payments to ( G. D. E. ) , 3213-3217 ; accounting of,
for moneys spent by him (G. D. E.), 3217-3218; refusal of HofEecker
to audit accounts of (G. D. E.), 3971-3972
contracts of Mutual Reserve with (ex. 574), 3213; Feb. 27, 1896 (ex.
575), 3213-3214; 1897 (ex. 576), 3214; 1898 (ex. 577), 3227; charge of
substituting page in contract (G. D. E.), 3242-3243
account of, with Mutual Reserve, for commissions and advances (G. D.
E.), 3223-3230; commission account (J. A. H.), 3231-3236, 3287-3238;
advance account (J. A. H.), 3238-3239; warrant of credit to for
$93,000 from Mutual Reserve (ex. 578), 3235; vouchers of Mutual Re-
serve to, crediting with debits to agents (ex. 579), 3238-3239; commis-
sions of, on transfers from 15 to 5 year plan (G. D. E.), 3238-3241, 324fi;
commissions of, on old contract under new (G. D. E.), 3243-3245;
order received by, frorn Mr. Buruham on commissions on transfer
business (ex. 581), 3246; proportion of income of, on commissions on
transfer (G. D. E.), 3247
contract of, with Security Mut. (C. M. T.), 3333-3335; indebtedness of, to
Security Mutual (O. M. T.), 3334
Mott, Jordan L.:
opposition of, to lien bill (E. C. P.), 4201-4202
Mowry, C. H.:
connection of, with state insurance department {F. H.), 4254
Mullaney, M. E.:
connection ol', with Mut. Life's house at Albany (N. M. C), 1985-19SG;
ignorance of B. A. McCurdy concerning (R. A, McC), 1524; vouchers
584 Index — Witnesses and Exhibits.
Mullaney, M. B.— Continued.
for payments to, from Mut. Life (exs. 278, 279), 1577-1579; (exs. 321
338), 2008-2009
testimony of, on Mut. Life's house at Albany, 200S-2011
Munn, John P. (pres. of TJ. S. Life):
testimony of, 4580^602, 4604-4618, 4619-4621; on charter and organiza-
tion of TJ. S. Life, 4580-4587; on his original connection, with TT. S.
Life, 455; on his personal interest in Va. Passenger and Power
Co., 4588; on Va. Passenger & Power Co. bonds transaction, 4587-
4592; on loans of U. S. Life, 4592-4594; on bank dealings of U. S. Life,
4595; on book and market values of securities of TJ. S. Life, 4596;
on legal expenses of TJ. S. Life, 4597-4599; on commissions to agents,
4599-4602, 4694-4608; on real estate of TJ. S. Life and income there-
from, 4608-4613; on his commission on insurance in Mut. Lifp 4614-
4615; on transaction in TJ. S. Steel with C. L. Jacobus, 4615, 4617;
on method of calculating deferred dividends, 4618; on use of esti-
mates on policies, 4619-4620
Murray, Louis F.:
C. P. McGlelland's ignorance concerning services of, to Mut. Life, 3055-
3057, 3210-3211; vouchers for payments to, by Mut. Life (ex. 539-
544), 3057
Murray, L. H.:
ignorance of E. A. McCurdy concerning (R. A. McC), 1525
Murray, L. R.:
ignorance of R. A. McCurdy concerning (B. A. McC), 1525
Murray, Michael (cashier of Equit. Life):
testimony of, 2381-2389; on J. W. Alexander No. 3 account, 2381-2385;
on non-ledger check transactions of T. D. Jordan with cashier's dept.
and Mercantile Trust Co., 2382-2385; on cash memorandum account
in cashier's dept., and connection of T. D. Jordan therewith, 2385-
2389; on auditing of accounts by T. D. Jordan, 2388; on whereabouts
or T. D. Jordan, 2388, 2389
Mut. Alliance Trust Co.:
organization and capital of (F. C), 159; relation of, to Mutual Life
(F. C), 160; price of stock in, paid by Mut. Life (correction by Mr.
Cromwell of his own testimony), 397; dividends and transactions of
(F. C), 161-162; surplus and undivided profits of (F. C), 162-163
Mutual Benefit Life Insurance Co. of Newark, N. J. :
assets and expenses (E. E. R.), 85-86
commissions of, 4615-4616; (J. T.), 4122
deferred dividends of, 4616
documents furnished by, 4614
election of trustees; practices regarding (E. B. R.), 83-84; participation
of employees in (E. E. R.), 84 '
expenses, ratio of, to amount paid policyholders (E. E. R.), 86-87
insurance, amount of, in force at end of 1894 and 1899 (J. T.), 4125
investments of, 4848; committees in charge of (E. B, R), 86
lar«es, low rate of (J. T.), 4122
legislative and political contributions of, 4847-4848
Index — Witnesses and Exhibits. 586
Mutual Benefit Life Ins. Co.— Continued
loadings, ratio of, to expenses (W. A. M.)> 3603-3604
loans of, on collateral, 4849
officers (E. E. R.), 86
organization and government (E. B. E.), 83-84, 8S-87
policyholders: voting right of (E. E. R.), 84; participation of. In elec-
tions (B. E. R.), 84; publicity of lists of (E. B. R.), 85-86; ratio of
amount paid to, to expenses (E. E. R.), 86-87; comparison between
amounts paid and received by (J. K. G.), 3737-3738; corrected state-
ment of payments to (H. M. D), 4417
premiums, low rate of (J. T.), 4122; corrected statement of (M. M.
D.), 4417
proxies: practices regarding (B. E. R.), 83-85, 87; form of (ex. 10), 84
surrenders, low rate of (J. T.), 4122
statement of, 4847-4840
Mutual Life:
actuarial dept. ; functions of actuary (B. McC), 1796-1797; functions
of mathematical dept. (B. McC), 1797; estimates and tables of results
-prepared by Prof. Stewart (B. McC), 1798-1799; formula used in
calculation of deferred dividends (E. McC), 1899-1902; see also under
dividends of Mut. Life, and testimony of B. McClintock
advertising department: correspondence bureau (W. S. S.), 1764;
coupons of (R. A. McC), 1429-1430; disbursements of, 1904 (ex. 292),
1755-1757; 1903 (ex. 293), 1761-1762; 1902 (ex. 294), 1762
special press notices regarding Investigation (R. A. McC), 1524-1525;
(C J. S.), 1738-1754
relations of Mut. Life with insurance newspapers (C J. Sj), 1738, 1754;
Insurance Record (C J. S.), 1747-1748; "Journalist" (C J. S.), 1748;
Mut. Press Association (0. J. S.), 1749; (W. S. S.), 1760; "The State-
ment"^ (0. J. S.), 1746-1747; Telegraphic News Bureau (C J. S.),.1738-
1754; payments to Telegraphic News Bureau, Oct. 25, 1905 (C J. S.),
1743-1744; Oct. 11, 1905, 1744; Oct. 4, 1905, 1744-1745; amount spent
on insurance papers in 1904 (C J. S.), 1758
advertising in magazines (W. S. S.), 1764-1765; reading notices and
notices in religious papers (J. H., Jr.), 2110-2111, 2114
mail order business (ex. 295), 1762-1765; connection of C H. Raymond
with mail order business (W. S. S.), 1762-1763
persons connected with advertising department (W. S. S.), 1754-3755;
connection of G. A. England with (W. S. S.), 1759-1761; connection
of A. C. Fields with (W. S. S.), 1761; connection of J. Howard, Jr.,
witb (J. H., Jr.), 2111; payment to J. Howard, Jr., charged to legal
expenses (J. H., Jr.), 2113-2114
connection of supply dept. with (W. S. S.), 1754; discrepancy between
company's statement and W. S. Sullivan's statement (W. S. S.), 1758-
1759
agency committee: functions of (A. I., Jr.), 4578; members of (G. T. D.;.
1314 ■
6S6 Index — Witnesses and Exhibits.
Mutual Life— Continued.
agency department, functions of (F. C), 506; general working of
domestic agency department (E. H. McO.), 1252-1256, 1263-1266, 1279-
1284, 1289, 1292, 1306, 1308; (E. A. McC), 1375-1391
accounts of (E. A. McC), 1383-1385; (E. A. B.), 1342, 1343, 1367, 1368
advances to agents (F. C). 506; (G. T. D.), 1319-1321
contracts of (E. H. McOO, 1253-1254
coupon business of (E. A. McC), 1545
reduction of expenses in (E. H. McC), 1266-1267
general agents: — names of (E. H. McC), 1252; Chamberlain & Gillette
(Texas agents), 1252; (E. H. Mc), 1271; contracts with Chamberlain
and Gillette (E. H. McC), 12G8, 1306-1313; (W. R. G.), 1356; bonuses to
Cliamberlain and Gillette (E. H. McC), 1307-1308; Fleming (Nebraska
and Iowa agent) (E. H. McC), 1252-1272; Howard Lewis (Albany)
(E. H. McC), 1252-1273; Port (Louisiana agent) (E. H. M^C), 1252-
1272; George Eayniond (N. Jersey agent) (E. H. McC), 1252-1271;
Eemmer (Arkansas agent) (E. H. McC), .1252-1272; Eaymond & Co.
(agents for Metropolitan District), 1252; policy regarding profits of
general agency (E. H. MeC), 1260-1284; (G. T. D.), 1312-1315
relations of Mut. Life with C H. Eaymond & Co. (C H. E.), 1218-1249;
(E. H. MeC), 1256-1260, 1261, 1264-1266, 1269-1271, 1284, 1291-1292;
profits of C H. Eaymond & Go., 1902 (E. H. McC), 1261; agents em-
ployed by C H. Raymond (T. C B.), 1S17; contract with C H. Eay-
mond (W. H. G.), 1345-1347; references of clients to C H. Eaymond
(E. A. McC), 1525-1528, 1544-1545; references of applicants for loans
to Raymond & Co. (R. A. McC), 1536-1537
salaried agents, number and compensation of (R. H. McC), 1252-1253;
change from old agency system to salaried" agency system (O. H. E.),
1246-1248 ;.(E. H. -McC), 1254-1256
policy of Mut. Life toward independent agents, prior to Thebaud's
connection with Eaymond & Co. (R. A. McC), 1528-1530
books of " adapted illustrations " furnished agents (exs. 299, 300, 301,
302), 1863-1868
assets: and expenditures (1876), 12, (1905), 12; from 1885-1904 (E. A.
McC), 1402; of Dec. 31, 1904 (E. A. McC), 1428; growth of, during
administration of E. A. McCurdy (E. A. McC), 1399-1401; rate of
interest realized on mean admitted assets, 1904 (F. C), 464-465, 468-
469
bank dealings; bank balances, Jan. to Sept. 1305 (ex. 36), 211 (F. C).
155; (G. G. H.), 4665-4667; interest received on bank balances (ex. 63).
462-463; (G. G. H.), 4665-4669; balances with First Nat. Bank (G. F.
B.), 485-486; with Guaranty Trust Co. (F. C), 495-497; with Morris-
town Trust Co. (F. C), 494-495; with Nat. Bank of Commerce (P. C),
457-464; (G. G. H.), 4667
?elations to Arbuckle Bros. (J. N. J.), 475-477; to Bank of California
(F. C), 208-210; (E. A. McC), 1061-1662; to American Exchange Bank
(P. C), 507-508; to First Nat. Bank'(G. F. .B.), 485-486; to Kahn, Loeb
& Co. (F. C), 202; in Japanese bonds transaction (F. C), 442, 447-
448, 449; in Missouri Pacific 4's (C C), 491-492; in Oregon
Index — Witnesses and Exhibits. 587
Mutual Life — Continued:
Short Line transactions (F. C), 438-440; in Southevn Pac. bonds
(F. C), 430-431; to Nat. Bank of Commei-ce (F. C), 457-464;
(R. A. McC), 1548, 1592-1595; (G. G. H.),.4667; understanding with
Equit. Life, on formation of Nat. Bank of Commerce (R. A. McC),
1592; book value of shares in Nat. Bank of Commerce (R. A. McC),
1598; to J. P. Morgan & Co., in Atchison, Topeka & Santa Fe bonds
(F. C), 436-437; to Speyer & Co., In Soutliern Pac. bonds (F. C), 431-
432; in U. S. of Mexico bonds transaction (F. C), 434-436; to Strong^
Sturgis & Co. (G. G. H.), 4558-4559; see also under syndicates; indirect
dealings with R. R. cos. through banks (C. R. H.), 480-481; (F. C),
488-490; bank dealings (G. F. B.), 486-487
claims department: statement of death claims for the weeks ending
May 23, 1884, an<J Oct. 31, 1884, 1447; statement of Nov. 17, 1897, 1448
commissions: as basis for employment of agents, (R. H. McC), 1204;
rates of, to general agents (Raymond & Co., ex. 255), 1211-1212, 1220-
1224, 1230-1239, 1242, 1248 (R. H. McC— C. H. R.), rates of, to sub-
agents through Raymond & C&. (C. H. R.), 1223-1224, 1230, 1233-1234,
1239; of Mr. Carlisle (R. H. McC), 1279-1280; abandonment of renewal
commissions (E. McC), 1821-1822, 1826; effect of abandonment of re-
newal commissions on present expense (E. McC), 1910; reasons for
different rates of (E. McC), 1904-1908; of Chicago agency (G. T. D.),
1315; of N. Y. agency (R. H. McC), 1268, 1269, 1270, 1271; of Philadel-
phia agency (G. T. D.), 1314; of St. Louis agency, overwriting com-
missions (G. D. D.), 1310; rate of, as compared with Washington
Life (J. T.), 4133
committees: number of (R. A. G.), 31; agency, see agency; expenditure
(F. C), 504-505; (R. H. McC), 1278-1279; (C A. P.), 1297; (R. O;), 1328;
by-laws, article 44, regarding duties of committee on expenditures (R.
O.), 1331-1332; fees of, in 1904 (W. R. G,), 1365; finance, see finance;
insurance (E. McC), 1796; on salaries, see salary committee
contingent guarantee fund, purposes of (E. McC), 1793-1794
directors: requirement of citizenship of, in N. T. (J. N. J.), 478; election
of, see under elections
dividends, annual calculation of, based on average estimates rather
than actual results (E. McC), 1837-1846; calendar years disregarded
in calculation of (E. aicC), 1875-1876
annual dividends, method of (B. McC), 1806-1808; 1900-1904 (E. McC),
1877-1892; reason for reduction in (E. McC), 1855-1861 ; two sources
for, gain in interest and residue of loading (E. McC), 1878; getting
of interest factors for (E. McC), 1878-1882; getting of loading factor
and of amount, to which it is applied (E. McC), 1882-1892; method
of calculation of, and method of Washington Life (J. T.), 4164-4166
complaints of policyholders concerning, and explanation of (R. A.
McC), 1432-1449; on policy 103,592 from 1870 to 1904 (R. A. MeC),
1438-1439; notice as to future dividends, (1904) (R. A. McC), 1446
contribution plan for (E. McC), 1875-1876. 1880-1881
decrease of (R. A. MoC), 1430-1449; complaints of (B. McC), 1808
1815; effect of decrease on increased business (E. McC), 1859.
588 Index — Witnesses cmd Exhibits.
Mutual Life — Continued:
deferred dividends, method of calculating (E. McC), 1801-1806; com-
parison of computation, with other companies (E. MoC), 1827; basis
for calculation of (B. McO.), 1838-1846; system of accumulations on
(E. McC), 1836; calculation of profit factor (E. McO.), 1892-1902;
relative amount added to, by profit factor to share of policy in
group system (E. McC), 1897-1898; saving from annual dividends
ascribed to (E. McC), 1895
» deferred apportionment, use of term, instead of deferred dividends
(E. McC), 1794
dividends, forborne, savings from annual dividends (E. McC), 1895-
1896
dividends on paid-up policies, basis for payment of (E. McC), 1847-
1854
table of, from 1885 to 1905, 1444-1445
calculation of total dividends, and their relation to realized earnings
(E. MeC), 1870-1878; statement of yearly realized earnings 1900-
1904 (ex. 303), 1870; variation in loading factor (E. McC), 1919.
election of directors or trustees; by-laws controlling (R. A. G.), 18-19;
certificates of (ex. 1), 19-20; inspection of (W. G. O.), 38-40, (G. M.
C), 66-68; method of conducting (R. A. G.), 19-24, (W. G. O.), 38-40;
(G. M. C), 66-68; notices of (R. A. G.— W. G. O.), 35-37; participators
in (G. M. C), 67-68; voting list for (ex. 7), 68.
employees: in reserve (W. R. G.), 1365-1366; statement prohibiting em-
ployment of, by Equit. (ex. 421), 2656.
examinations of: of 1895, 1899, 1903 (F. H.), 4272-4276-4278; of 1898
with commissioners of other states (I. V.), 4368-4370; of 1899, and
attempted examination by other states at same time (L. F. P.), 4496;
of 1903 (I. v.), 4311-4322, 4323, 4324; examiners' laudatory statements
on examination of 1903 (I. V.), 4416; of 1904 (I. V.), 4343-4344; non-
examination of Bowles' charges (I. V.), 4368; limitation of examina-
tion to question of solvenc/ (I. V.), 4368, (L. F. P.), 4498-4501.
executive special dept.; nature of (R. A. MoC), 1499-1603; connection
of, with C H. Raymond & Co. (R. A. McC), 1531-1532
exhibits (see Exliibits) 50, 51, 52, 53, 55, 56, 57, 58-62, 63, 64, 65, 66,
253, 254, 255, 256, 257, 258, 259, 260, 261, 262, 263, 264, 265, 266, 267,
268, 270, 271, 272, 273, 274, 275, 276, 277, 278, 279, 280, 281, 282,
283, 284, 285, 286, 287, 288, 289, 290, 291, 292, 293, 294, 295, 299,
300, 301, 302, 303, 304, 305, 321, 339, 529-537, 538, 539-544, 829, 830,
831, 832, 833, 834, 835, 8.36, 837, 838, 839, 840, 841, 842, 843, 844,
845, 846, 960, 96S, 972, 979, 980, 983, 987, 1008, 1014
expenses:
for advertising, printing, stationery and postage (F. C), 504; com-
parison of, with other great ins. companies (E. McC), 1820-1822; of
investment, calculation of (E. MoC), 1847-1848; items of. (1898),
1360, (1899), 1361, (190O), 1361, (1801), 1362, (1902), 1362, (190!}), 1383,
(1904), 1368; for luncheon (item of 1904), 1364-1365; (R. A. McC), 1493-
1495; for office furniture (W. R. G.), 13I68-136Q; (R. A. McC), li533-
1535; for travelling of officers (R. H. McC), 1669-1670; for travelling
Imdex — Witness.es and Exhibits. 589
ilutual Life — Continued:
to B. H. MLcCurdy ,(E. H. McC.), 1674-16fr8, 16rr0-1681; ratio of (R.
H. McC), 1206-1268; ratio of, to profits from lapses and risks (B.
McC), 1816-1819; ratio of, to loadings (R. A. MoC), 1391-1393; ex-
planation of excess of, to loadings (B. McC), 1910; reduction of (R.
A. McC), 1419-1495; 'ji agency dept., 1451-1452; in law dept, 1452-
1495; in salaries, 1450-1451; in 1904 (R. H. McC), 1266-1267; proposed
changes for reduction in (F.C.) -45,72-4573; rent item (1394), 1372;
total disbursements, 1443, 1408-1404; for matters extraneous to
S regular business (R. A. McC), 1420-1422
IHance committee:
functions and operations of (-F. C), 152, 200-201; (R. H. McC), 1284-
^287; meetings and minutes of (R. A. G.), 32-33; members of (F. C),
?l-32, 33-34, 149 (ex. 33), 151 ; participation of Individual members of, in
financial operations of Co. (F. C), 201-204; concert of members of, in
financial operations .(F. C), 45-70-4571, 4572;' purehase ajid sale by
members of, of shares of Lawyers' Mort. Ins. Co. (G. G. H.), 4549;
quorum of (F. C), 154; sub-committee of, and its relation to whole
wm. (F. C), 151-152, 200-201; (G. F. B.), 484-485; meetings of sub-
■tommittee of (corrected testimony of F. C), 397; members of sub-
committee of (G. G. H.), 4543
•isthorization by, of C B. & Q. purchase (April 26, 1901) (F. C), 450-151,
(April 30, 1901), 451; of Jap. 6's, let series participation (May
6, 1904) (F. C), 441-442; of purchase of Jap. bonds (May 10,
1904) (F. C), 445; of purchase of -Jap. bonds, 2nd .series (F. C), 447-
448; of purchase of Jap. 4!!^, 1st series (ex. 52) ,(F. .0.), 449-450;.of pur-
chase Jap. 4% per cent, bonds, 2nd series, (F. C), 453-454; of Missouri
Pacific 4's transaction (F. C), 492-493; of Northern -Pacific-Great
Northern C. B. & Q. transaction (F. C), 451; authorization by, of
transaction in Oregon Short Line 4's refunding and O. S. L. 4 per cent,
participating bonds (Nov. 1, 1904) (F. C), 438-439; of Sotuthem Pac.
bond ti'ansactlons (F. C), 431-432; of participation in 3d Av^enue R. R.
bonds .(April 11, 1900) (F. O.), 452-453; purchase of Wash. Electric Co.
bonds (J. T.), 1770-1771
ignorance of, of salaries paid ofiicers (G. G. H.), 4546; regajding offer
of Lawyers' Mort. Oo. stock to R. A. McOurdy for Mut Idfe (F. 0.),
4568; (A. I.), 4575
foreign business:
creation of (R. H. McC), 1205, 1212-1213; and gualificattons of R. H.
McCnrdy for (R. A. McC), 1501-150i2; connection of R. H. McCurdy
with (R. H. McC), 1205-1210, 12'12-1214; commissions of R. H. Mc-
Ourdy on, -and reductions (K. H. McC), 1206-1210, 1213-1214, 1217;
contract with R. H. McCurdy for, 1203-1213 ; countries covered (R. H.
McC), 12C®-1206; growth of (R. H. McC), 1200-1210; payment of
receipts from, to-C. H. Raymond & Co. by R. H. McCurdy (R. H. Mo-
C), 1214, 1215-1217, (C H. R.), 1226
general agencies, persons in charge and salaries (R. H. MCC), 1275-1277;
Australian business (H. H. McC), 1277; Austrian business (R. H.
McC), 1277; French businese (.R. H. McC,), 1276; German ;buslnesa
63
590 Index — Witnesses and Exhibits.
Mutual Life — Continued:
(R. H. MoC), 1276-1277; business in Great Britain and Ireland (R. H.
McC), 1275; remission of income tax in England (E. McC), 1&18;
business in Holland and Belgium (R. H. MeG.), 1276; Hungarian busi-
ness (R. H. McG.), 1277; Mexican business (R. H. MeC), 1277; Scandi-
navian business (R. H. McG.), 1277; Spanish business (R. H. MeO.)i
"*1277
real estate property (R. H. McC.), 1209
record of (ex. 254), 1210
reduction of (F. G.), 4574
financial statistics of (ex. 253), 1198-1199, 1200
connection of John Tatlocli with (J. T.), 4109, 4173
gains: amount of, in 1904 and method of calculating (E. McC.), 1837-
1838; attitude of company towards gain and loss exhibit (H. D. A.),
4479
income, total of (R. A. McG.), 1885 to 1904, 1402; excess Of over total
disbursements, 1885 to 1904 (R. A. McG.), 1403-1404
insurance: amount of, in force, 1885 to 1904, 1405-1406; gain in, 1885 to
1904, 1406-1407; amount of, written from 1894 to 1899 (J. T.), 4125;
policy on limit upon rislis (G. T. D.), 1321-1322
interest, calculation of and relation to dividends (E. McC), 1^7-1852
investments:
method of maliing (F. C.), 151-152^ ot accumulations (F. G.), 155;
policy regarding, in debentures (R. A. McC.), 1599-1603; in securities
in sub-com. (G. F. B.), 485; supervision of (R. A. McG.), 1537; super-
vision over securities (U. S. Mortgage & Trust Co.) (F. C), 473;
list of stocks or bonds (June 30, 1905), in hands of investigating
committee (F. G.), 212; statement of bonds and stocks owned June
30, 1905 (R. A. McC), 1598; stocks in Penn. R. R. (F. C), 427-428,
428-429; stock owned in Lawyers' Title Ins. Go. (G. G. H.), 4557;
participation in increase of Lawyers' Mortgage Ins. Co.'s stock (E.
W. C), 4371; (H. Morgenthau), 4561; bonds and stocks acquired on
reorganization of Washington Traction & Electric Co. (J. T.), 1638-
1640; purchase of Wash. Electric Co. bonds through TJ. S. Mortgage
& Trust Co. (J. T.), 1765; see also under bank dealings and syn-
dicates
legal and legislative expenses and interests:
campaign funds (R. O. and R. A. G.), 1333-1345; (W. R. G.), 1352-1356;
(R. A. McC), 1419-1421; contributions to state campaigns (R. A.
McC), 1420; to political parties (R. A. McC), 1672-1673; to state
politics (T. C P.), 2575-2577, 2578-2579; to Rep. Congressional Com-
mittee (W. T. T.), 1197-1199; (R. A. McC), 1421; expenses of law
department (F. C), 505; (C A. P.), 1295-1299; (W. R. G.), 1349^1352,
1365-1367; disbursements of legislative department (W. F. T.), 1189-
1191; amount spent for legislation in 1904 (Wi F. T.), 1188-1190:
(W. R. G.), 1345; methods of, compensating attorneys in foreclosure
cases (R. A. McC), 1456-1457
.house in Albany and connection of A. C Fields with (W. M. C), 1575-
1577, 1578-1579, 1583; (R. A. McC), 1590^1592; (M. E. M.), 2008-2011;
Index— Witnesses And Exhibits. 691
Mutual Life— CJontlnued:
(C. P. MeC), 3037-3043; Inmates of (W. M. C), 1580-1582; (M. E. M.)
2010-2011; responsibility of officers of Mut. Life regarding (W m'
C), 1583; connection of M. E. Mullaney with. 2008-2011; voucliei'?
for expenses of (W. M. C), 1582-1583; payments to M. E. Mullaney
(W. M. C.), 1577-1579; voucliers signed M. E. Mullaney (E. A. McC),
1524; payments to M. Mullaney charged to different accounts (M E
M.), 2008-2009
legislative and legal policy (W. P. T.), 1183-1202; (R. A. G.), 1343-
1345; (R. A. McC.), 1451-1484; distribution of territory and expen.se
with Equit. and N. y. Life (W. P. T.), 1184; co-operation with N. Y.
Life and Equit. (R. A. McC), 1470-1471; co-operation with N. T. Life
and Metr. (A. H.), 4426; payments to Mut. Life by N. Y. Life and A.
Hamilton, 1187-1188; connection of Mr. Granniss with legislative
matters, 1189-1190; method of payment to representative (W. F. T.),
1197; confidential payments (W. F. T.), 1185-1186; (R. O.), 1329-1336-
(R. A. G.), 1340-1345; (W. R. G.), 1347-1351, 1354-1356;
(R. A. McC), 1454; names of representatives in different
states to influence legislation (W. F. T.), 1191 ; nature of legislation
attacked (W. F. T.), 1201-1203, (R. A. McC), 1476; methods of in-
fluencing legislation (W. F. T.), 1191-1195; in Iowa (W. F. T.), 1188;
bill for Federal supervision (W. F. T.), 1188-1195; war tax (W. f!
T.), 1196; repeal of section 56, and connection of W. Barnes with
(B. A. McC), 1477-1482; Brackett Bill (W. M. C), 1586-1587; pay-
ments to legislators, denial of (W. P. T.), 1199
persons connected with legal dept.; D. M. Amdt (R. A. McC), 1483-
1484; A. C Fields (R. A. McC), 1457-1458, 1460-1461, 1462, 1467; W. A.
Frlcke (R. A. McC), 1471-1473, 1482; A. Hamilton (R. A. McC), 1467-
1471; W. J. Holden (R. A. McC), 1484-1485; C T. Lewis (R. A. McC),
1471-1472, 1473-1475; C P. McClelland (R. A. McC), 1454-1457, (C P.
McC), 3031, 3044-3057, 3061-3062; J, P. Pierce (R. A. McC), 1453-1454,
1483; Sewell and Pierce (R. A. McC), 1523; B. L. Short (A. W. M.),
1061-1062, 1066-1067, (R. A. G.), 1341, 1343-1345, (W. R. G.), 1348-1349,
1354-1356; W. P. Thummel (W. P. T.), 1183-1202, (R. A. G.), 1343,
1344-1345, (E. A. McC), 1484
payments: to J. B. Ashe (C P. McC), 3057-3058; to Clunie In California
Investigation (S. S. McC), 2501; to Mr. Fields In 1904 (W. M. C),
1594; to Mr. Fields, voucher of Jan. 7, 1904 (R. A. McC), 1508;
vouchers of payment recommended by Mr. Fields (R. A. McC), 1462-
1463, (C A. N.), 1561-1562; to A. Frlcke, voucher of (R. A. McC),
1471; to A. Hamilton, vouchers of (R. A. McC), 1468-1469; to W. J.
Holden, voucher of (R. A. McC), 1484-1485; to Mr. Lawrence (E. W.
R.), 1571-1573; to C P. McClelland (exs. 529-537) (C P. McC), 3043-
3(^5; vouchers of (R. A. McC), 1455-1457; to Manning (J. A. N.),
2564-2565; to L. F. Murray (exs. 539-544), 3057, (C P. McC), 3055-
3057; to L. H. Murray, voucher for Aug. 12, 1901 (R. A. McC), 1524;
to L. R. Murray, voucher of 1903 (R. A. McC), 1524; retainer to J. A.
Nichols (J. A. N.), 2563-2564; to S. S. Olds (voucher of), (K. A. McC),
592 Index — Witnesses and Exhibits.
--= — — * — ^
Mutual Life — Continued:
1473 ; to James F. Pierce, voucher for Feb. 25, 1905 (R. A. McC), 1454;
to George Plunkitt, voucher of (B. W. R.), 1568; to Edgar W. Rogers,
voucher of Dec. 7, 1902) (R. A. McC). 1523; to Townsend and Mc-
Clelland (ex. 538), 3055
liabilities of (F. C), 155
litigation: Bowles' suit (R. H. McC— G. T. D.), 1322-1326, (R. A.
McC), 1495-1508; copy of letter from Bowles (R. A. McC), 1499
loading: on ten-payment policies (E. McC), 1854-1855; ratio of, to ex-
penses (R. A. McC), 1891-1394, (E. McC), 1910
loans: on collateral, policy regarding (E. D. R.), 354; rate of Interest
from (F. C), 460-462, (R. A. MeC), 1537-1539; annual statement of,
Dec. 31, 1903 (R. A. McC), 1537; Dec. 31, 1904 (R. A. McC), 1538;
charges on loans (F. C), 469; on bonds and mortgages, in Finance
Com. .(G. F. B.), 484-485; upon policies (G. T. D.), 1321; loan to' B. Y.
Frost (B. A. McC), 1538
to Jessup and Lamont (R. A. McC'), 1538, 3539
mortality gains, applied to expenses (E. McC), 1878; mortality rate
among deferred dividend policyholders (E. McC), 1900-1901
nepotism in (R. H. McC), 1218, 1273-1275, 1315
new business, 1885 to 1904, 1405 ; cost of, for 1904 and amount available
towards payment of (ex. 305), 1902-1904; statement of expenses of
gaining (J. McK.), 1736-1738
oflBcers, number and duties of (R. A. G.), 26-31, 82-33; duties of the
president (by-laws, paragraph 11), 1347; (R. H. McC), 1251-1252; (R.
A. C), 1374-1375; duties of actuary (R. A. McC), 1393; method of
choosing (R. A. G.), 26-27; policy of, on authorizaition of payments
(R. H. McC), 1279; share of, in commissions (R. A. McC), 1532-1533;
individual responsibility of, in controlling deposits (F. C), 495-497;
date of creation of office of general manager (R. H. McC), 1251;
policies held by (ex. 286) (R. H. Mc), 1664rl668; provisions for'travel-
. ing of (R. H. McC), 1669-1670
individual participation of, in syndicates with Mut. Life (G. F. B.),'487;
(A. I., Jr.), 4579; (G. G. H.), 4557; in Cuban bonds (F. C), 402-403,
408; in Japanese syndicate (F. C), 197; personal interest of , in financial
operations of Mut. Life with U. S. Mortgage & Trust Go. (P. C), 208
organization and government charter and by-laws of (R. A. G.), 16-18
policies:
annual dividend (C H. Bi), 122K1222; bond required by, in case of
loss of (R. A. McC), 1662-1663; deferred dividend policies (C :H. R.),
1220-1221; (R. H. M.), 1263-1264; (R. A. McC), 1509-1510; fifteen
year distribution (C H. R.), 1232-1288; reduced rate poliey system
(R. A. McC), 1435-1486; estimates of returns on (R. A. McC), 1535-
1536; single premium policies (C H. R.), 1232-1233; ten years' time
contract non-participating policies, rate on (H. M.), 3974-3975; ton-
tine policies (R. A. MeC), 1508-1510; twenty year distribution
policies (C H. R.), 1231-1233
policyholders:
complaints of, regarding dividends, letter of Oct., 1905 (R. A. Mc),
1430-1437; letter of Oct. 6 (R. A. Mc), 1437-1441; letter of Feb. 28,'
Index — Witnesses and Exhil/iis. 59'3
Mutual Life — Continued:
1905, 1443; letter from prominent lawyer (R. A. MeO.), 1443-144S;
complaint concerning policy No. 239,053, (E. McC'.),, 1808-1812; con-
cerning No. 193, 85T (E. McG.),. 1812fl813; complaints of Mr. Clarke
(E Mg.), 1814-1816; statement of regarding reduction in dividends
on policy 259,717 (B. McC), 1855-1856
notice to, regarding elections (ex. 3.), 23-24; payments to 1885 to 1904,
1404; participation of, ia elections (R. A. G. and W. G-. O.), 18, 25,
26, 28-39; publicity of lists of (R. A. G.), 34; relation of, tO' increased
assets (R. H. C), 1302-1304; report of trustees to, of 1878 (R. A.
McC), 1377-1378; of 1883, 1378-1379; ratio of expense to- income and
to amount paid policyholders, as compared with New York Life,
Equitable, and smaller companies^ (E. MoC), 1917-1918
profit and loss account (C. A. P.), 4334; (I. V.), 4343; (C 6. G.), 4353;
methods of dealing with net profits on sales (S. M. S.). 4332; omis-
sion of profits on sales of ledger assets in report to insurance depart-
ment (H. D. A.), 4388; profit and loss and memorandums of adjust-
ment (ex. 829-846), 4332, 4353
proxies:
practices regarding (R. A. G.), 21-26; (R. A. McC), 1395-1397; form
of (ex. 2), 24
real estate department:
Rich. A. McCurdy on, 1539-lo48; properties taken on foreclosure
(W. W. R.), 1681-1695'; book value of 92 properties in foreclosure
jurisdiction (W. W. R.), 1690^1691; real estate property of foreign
business (R. H. McC), 1209; policy on loans on real estate (W. W.
R.), 1687-1688; methods of examining applications for continuance
of real estate ownership (W. W. R.), 1690-1691; real estate in
Brooklyn (R. A. McC), 1660-1661; Brooklyn-properties sold in 1903,
(W. W. R.), 1686-1687, 1688-1690; mortgage on Stove Polish Real
Estate Exchange in BuffaJo (W. W. R.), 1695; Elmira properties
(W. W. R.), 1693-1694; history of ownership of Grosvenor (W. W.
R.), 1682-1684, 1691; returns, from Grosvenor Hotel (R. A. McC),
1539-1540; history of ownership of property on Prince Street and
West Broadiway (R. A. McC), 1611; foreclosures on Rochester prop-
erty ("W. W. R.), 1691-1693; terms of sale of Rochester property to
City Realty Co. (W. W. R.), 1692-1693; history of ownership of
Universal Building (W. W. R.), 1684-1686
rebates on commissions, practice regarding (R. H. McC), 1289-1291;
(T. C B.), 1318-1319; (G. E. T.), 2539; on taxes (J. J. M.), 4539
reports to Ins. Dept, falsification of (P. H.), 4301; omission in, of
profits on sales of ledger assets (H. D. A.), 4388
reserve, recognition of legal liabilities (B. McC), 1794-1795
salaries: of executive officers (1876), 11-12; (1905), 27; (R. H. McC).
1252, 1303-1305; (C A. K), 1299-1300; (W. R. G.), 1368^1369; (R. A.
McC), 1393-1419; of R. A. McCurdy (R. A.. McC), 1393-1394, 1398-1409;
of Robert H. McCurdy (R. A. McC), 1510-1512; ignorance of Finance
Committee in regard to (G. G. H.), 4546; uesponsibility of trustees
regardiiag (R. A. MeC), 141T
594 Index — Witnesses and Exhibits.
Mutual Life — CJontinued:
of clerks, system of gradation of (E. McC), 1819
of Dr. Ellas T. Marsh (K. H. McC), 1273
salaries of sub-committee (W. R. G.), 1368-1369
salary committee^ appointments and functions of (G. G. H.), 4543;
(corrected testimony of G. G. H.), 4665; members of (G. G. H.), 4543;
and reports of (A. I., Jr.), 4576; responsibility of, in increase of E. A.
McCurdy's salary (R. A. McC), 1393-1394; responsibility of, in salaries
of executive officers (R. A. McC), 1417-1419
subsidiary companies; interest in capitalization of Brooklyn Wharf &
Warehouse Ck). (J. T.), 1626-1634; Interest in the Casualty Co. of
America- (R. A. MeC), 1663-1664; Interest in Corporation Liquidating
Co. (R. A. McC), ieeO-1661; relations to Nat. Safe Deposit Co. (R. H.
McC), 1288-1289, 1670-1672; leases to Nat. Safe Deposit Co. (R. H.
McC), 1305-1306; relations to N. Y. Dock Co. (G. W. P.), 564-565; to
N. Y. Guaranty & Indemnity Co. (R. A. McC), 1603; relations to. N.
Y. Stock Co. (R. H. McC), 1289-1290; Interest in Wash. Traction and
Elec. Co. (J. T.), 1635-1636, 1637-1641; connection with Widows and
Orphans Benefit Life Ins. Co. (R. A. McC), 1373-1374
flotation of securities of subsidiary companies (R. A. McC), 1610-1614;
Brooklyn Wharf & Warehouse Co. (R. A. McC), 1610-1613; Wash.
Tractfon Elec. Co. (R. A. McC), 1614; subsidiary trust companies, see
under trust company relations
supply department; accounts of (W. R. G.), 1357-1359; advertising in
(W. S. S.), 1754; advertising, printing and stationery items (C A. P.),^
1293-1294; expenditures of (R. A. McC), 1489-1495; connection of a'
C. Fields with (K. H. McC), 1281; (W. R. G.), 1356-1357; (R. A. McC),
1457-1459; functions of (F. C), 504-505; (b. H. MeC), 1278; (W. R. G.),
1356-1357; (R. A. McC), 1459; relations of, to Globe Printijig Qo. (R.
A. McC), 1484-1485, 1488, 1489, 1493; and L. W. Lawrence (L. B.).
1552-1557; (W. R. G.), 1357-1359; to Lawrence & Co. (C A. N.), 1562-
1564, 1565-1566
surrenders and lapses, profits from, applied to' expenses (B. McC;), 1878
syndicate agreements (F. 0.), 189-196; of Chicago, Burlington &
Quincy purchase (ex. 53), 417; of Cuban bonds (ex. 52), 409-410; of
Oregon Short Line (ex. 54), 420
syndicate operations and transactions (F. C), 189-198, 397-411; (J. N
J.), 474.479; tG. F. B.), 485-487; (C R. H.), 481-484; (A. D. J.), 560-563,
list of (ex. 50), 397, 406-407
syndicate profits (F. C), 193-195; Atchison preferred stock (F. C), 436-
437; C B. & Q. transaction (F. C), 415, 418, 451; (corrected state-
ment) (F. C), 457; Cuban Bonds (F. C), 415-416; (F. C), 420-425;
(proportion of, to Mr. Cromwell's profits) (F. C.), 433; Jap. bonds
(F. C), 447, 448, 450; Navigation syndicate (F. C), 415; Penn. R. E. (ex.
50), 426-427; (May 25, 1903) (F. C), 438; Southern Pacific Bonds (F. C),
432-433; TJ. S. Mex. bonds (F. C), 435-436; 3rd Avenue R. R. (F. C),
453
syndicate participations:
Atchison, Topeka, and Santa Fe convertible 4's (F. C), 203, 436-438;
(A. D. J.), 557; Atlantic Coast Line Syndicate (F. C), 203-204; C. B.
Index — Witnesses and Exhibits. .595
Mutual Life — Continued:
& Q. purchase (ex. 52, and F. C), 450-452; Chicago, Rock Island &
Pacific Railway 4's (B\ C), 503-504; Cuban Bond Syndicate (P. C),
156-158, 182-184; (1st, 2nd, and 3d syndicate) (F. C), 400-411, 414,
(J. T.), 411-414; (A. D. J.), 558-559; purchase of bonds on syn. caU
(J. T.), 412; Japanese syndicate (F. C), 196-208; Jap. 6's, 1st series
(F. C), 441-446; Jap. 6's, 1st series, 2nd underwriting series (F. C.),
446-447; Japanese 6's, 2nd series (ex. 50), 447-448; Jap. 4%'s, 1st
series (ex. 50), (F. C), 449-450; (A. D. J.), 552-556; "(R. A. McC.).,
1660; Jap. 4^ 2nd series syndicate (R. A. McC), 1652-1655; Missouri
Pacific 4's (ex. 52, and F. C), 490-495; (A. D, J.), 557; navigation
syndicate, 415; Oregon Short Line (F. C), 41^-420; Oregon Short Line
4^ participating bonds («x. 50, No. 24), 438-441; Oregon Short Line
4's refunding bonds (ex. 50), 438-440; (A. D. J.), 557; Penn. R. R.
Bonds 3%, convertible (F. C), 425-430; (May 25, 1903), 437-438; (J. T.),
427-428; (O. R. H.), 481-482; (A. D. J.), 556-557; (R. A. McC), 1650-
1652; (withdrawal of bonds), 42fr427; Southern Railroad collateral
trust bonds (F. C), 158-159; Southern Pacific refunding bonds (F.
C), 431-433; (A. D. J.), 557; (R> A. McC.),. 1655-1659; V. S. of Mexico
4's (A. D. J.), 558, 560; 3d Avenue R. R. bonds (ex. 52, No, 7), 452-453
trust company relations; in general (F C), 465-468, 490-498-564; (A.
D. J.), 564; deposits with trust companies (G. G. H.), 4547; loans
through TiTist Cos rather than directly (F. C.), 472-473
deposits with Central Trust Co. (G. G. H.), 4666
relation to Fifth Ave. Trust Co. (Jap. bonds, F, C), 443-446, 447-448,
(R. A. MeC), 1641-1643
relation to Guarantee Trust Co. (F. C), 154-162, 189, 211; (Jap. bonds,
F. C), 441-447; (banli balances, F. C), 495-497; interest in (R. A.
McC), 1597-1598; shares in (R. A. McC), 1598-1599; acquirement of
charter of (R. A. McC), 1602-1603, 1607-1608; deposits with (G. G.
H.), 4666
relations to Morristown Trust Co. (F. C), 163-164; (Jap. bonds F. C),
443, 446-447; (bank balances, F. C), 495-496, (A. D. J.), 563-564, (R.
H. McC), 1284-1285, 1322; interest as stockholder in (R. A. McC),
1615-1616; deposits in (R. A. McC), 1618; rate of interest from (R. A.
McC), 1618-1624; average balance with, for last twelve and a half
years (R. A. McC), 1620-1621; dates of purchases in (R. A. MeC),
1623-1624; inci-ease of deposit in in Jan., 1902 (R. A. McC), 1625
relations to Morton Trust Co. (F. C), 184-188, 205
relations to Mutual Alliance Trust Co. (F. C), 160^161
relations to Title Guarantee & Trust Co. (F. C), 466-467, 497-499
relations to U. S. Mortgage & Trust Co. (P. C), 206-208, 211, (Jap.
Bonds, F. C), 441-446, (F. C), 470-473, (debenture bonds, F. C), 502-
503; shares in ( R. A. MoC), 1609; causes leading to acquirement of
charter (R. A. McC), 1607-1609
deposits with U. S. Security & Trust Co. (G. G. H.), 4666
relations to Windsor Trust Co. (R. H. McC), 1286-1287
Mutual Res. Fund Life Association, original name of Mut. Reserve (G.
D. E.), 2745
G9'6' Index — Witnesses and E'xhihiHs.
Mut. Res. Life .Association, original ingarporatioff of, as Wut Res. Fund
Life and reineorporation of, as Mut. Res. Life Ins. Co., 103'
Mutual Reserve Life Insurance Co.:
acquisition of business of other companies: Provincial Prov. of St.
Tnomas, Canada, and' reasons for (G. D. B:), 3fl83-308"r;' Kortlnvestern
Life (&. D. E.), 3OS7-3O90; expenses' of acquisition' of (G. D. 33.), 3i291-
329'2; supplemental contract with D. C. Merriam in (er. 589), 3286-
328T; assignment from D. C. Merriam to G. Storm (ex. 990), 3212;
vOUclrers of payments to G. Storm (exs. 591, 592, 593, 59'4, 595, 596,
597, 598), 328T-3289;- assignment of G. Storm to Wm. Porter (ex. 509),
3290-3291; cancellation of contract with G. Storm (ex. ©GO), 320&-3291
actuarial expenses- (G. D. E.)-, 31'7S-31.79
adTertlsIUg dept., mon-ey received from H. H. B. given- to Mr. Bell for
advertising- (6. D. E.), 31-91 3194
agency department; former method of payment from' mem^ersship- fees
(G. D. E.), 2801'-2S02; commi-Ssions (G. D'. E.), 3308, 3S11-3321'; to Moss
a-n'd^ sub-agents- (G. D'. E.), 3211-32i46; commissions on transfer busi-
ness- charged to mortuary aeeount (G. D. B.), 3247-3250; 325f-3252;
method of chargikg commissions (vouehfep form*, ex. 582)', 3247-^32*48
general agents, M. D; Moss; contracts with (1896- and 1897-, ex; 574,
575, 5?6), 3211-32W, (1898, ex. 577), .3227; commission' account of (J.
A. H.), 3231-3235; 3236-323.7; advance account of 3237-3239; paymients
on commi^fsl'on to (G. D. B.), 321'4-3-22«; warrant of credit 'for $88,000
to (ex. 578), 3235'; vouchers crediting, debits^ to agents (ex. 579)', 32S8-
3239;- commissions on transfers from oW to new plan (G. D. E.),
3240-3242, 3246; commisions to, on old contract under new (G. B. E.),
3243-3245', order from Mr. BHirnhain- to, in re commissions on: trans-
fer business (ex. 581), 3246; letUer from Mr; Buimham to Mr. Steven-
son in re commissions of on transfer business (ex. 5801)!, 3'2W
Salsey account (G. D. E.). 3218-3219
manual to agents (1897), statement of demonstration inv of tJen-year
distribution policies (6. D;. E.), 31130-3132;. of rajtes' on fflve^year com-
bination^ option plan (G. D. E.), 3140-8141
assessments: of 25 per cent, excess (G. Di E.), 2744, 274)6^2747; rates
of (ex. 433), 2756-2759, (ex. 434), 2759-2763,. (ex. 435), 2(767-2768;
changes in rate of, regardaing age of policyholder (G. D. E.):,. 2757-2762;
according to age of entry (G. D. E.), 2757, 2762; and iaeompatibillty
of same -with! natural premium basis (G. D. E.), 2774-2775; increase of,
with age (G. D. E.), 2762-2763'; irregularity of, in early years^ (G. D.
E.), 2776-2777; for reduction of insurance (6. D. E.)>,, 2778-2781 ;
number of calls on policies, in specimsn policy showing- red^iation
(ex. 4S&), 2782-2786;. notice of special assessment for reserve; to
policyholders (exs. 439* 440), 27i90'-2791; on policies from 189i6-1902' (G.
D. EO, 2796-2798; ambiguity regarding- addlti'ona;! payments (G. D. E.).
3028-3029; in case of D. Hall (G. D. E.), ,3026-3027
increase- of, on 15-year policies- (G. D. B.), 3071-3076; on lO-yeaff pol-
icies (G. D. E.), 307&3077; special' on 5-year policies (G. Dt E.); 3077;
diffieultites of company from increase of (G.. D. E.)'^ 3099^3102.; litiS-
gation concerning increase in U. S. (G. D. E.), 3113-3115; in Europe
Index — Witnesses and Exhibits. .597
Mutual Res. Life Ins. Co. — Oontiaued.
(G. D. E.), 3121; attitude of N. Y. Ins. Dept. toward Increase of
(G. D. E.), 3204-3205
assessments and aiopiioval of claims (G. D. E.), ,3124-3130; cause of
special assessment in 1905 «5. D. E.), 3138-3146; jt'eservation of
right to issue calls on .mortuary accounts (G. D. E.), 3142-3143;
change from assessment policies to nou-participating (G. D. B.),
3156-3157
assets: change In statement of , in 1005 (G. D. B.), 3285; elimination of,
from Vanderpoel's report (G. D. B.), 3262-3204; (I. V.), 4350-4352
auditing department: auditing of expense allowance of president (G.
D. EL), 2S05-2806); resignation of J. S. Hofteeber, and Teasons for
(G. D. E.), 3254-3257
bonds and bond statements: issue of, on reserve fund (G. D. E.), 2747-
2748; provision for, in policies (ex. 433), 2750; (ex. 434), 2761-2763;
credit for, cancelled by assessments (G. D. E.), 2788-2790; ((case lof D.
Hall) (G. D. E.), 3205-3207; form of bonds (ex. 551), 3068; form of
bond statements (exhibit 552), 3077
caBapaign contributions, see legal and legislative expenses and interests
Canadian business; on legal renewal basis (G. D. E.), 3148-3150; con-
tracts changed by law, regardless of policyholders (G. D. E.), 3155
claims dept.:
payment, settlement, and contesting of death claims (G. D. E.), 3102-
3122; agreement to pay definite amount on death claims (G. D. B.),
2745; report of Superintendent Hendricks concerning delay in
eettling claims (G. D. E.), 3102-3100, 3113; defence of company con-
cerning delay in settling claims (G. D. B.), 3106; number of con-
tested claims (G. D. E.), 3102-3103, 3113; number of compromised
claims, as stated in Supt. Hendricks' report (G. D. E.), 3105-3106;
appearance in. reports of expenses in resisting ot claims (O. D. E.),
3313-3314; manner of dealing with claims (G. D. E), 3123-3130;
average time required for approval of claims (G. D. E.), 3108-3109,
3112; delay in approval of (G. D. E.), 3124-3130; approval dependent
on times of assessment <G. D. E.), 3124-3130: time required for
payment of claims (G. D. E.), 3111-3113; accounting of expenses and
person in charge of (G. D. E.), 3314-3315
classification of policies, 3064-3071
commission to agents, see agency dept.; commissions to oflaeers, see
officers; for acquiring business of Northwestern Life (G. D. B.), 3089
committees of (C. W. C), 111-112; members of executive committee
(t>. I). B.), 3212
commutation of renewal commissions (G. D. E.), 3179; reference of, to
Northwestern Life transactions (G. D. E.), 3212; payments to G.
Storm (G. D. E.), 3286-3292
comj)laints of policy-holders, see policyholders
contingent fund for president's expenditures: resolution regarding (ex.
447), 2804; appearance of, in reports to department (G. D. B.), 2805;
correction of testimony regarding (G. D. E.), 3019-3020; use made of,
by Mr. Burnham (G. D. E.), 3208-3270
538 Index — Witnesses and Exhibits.
Mutual Res. Life Ins. Co.— Conttmied.
conti-acts: with B. B. Harper, for payment of commissions (G. D. E.),
2803-2804; payments on Harper contract (J. A. H.), 3X66-3371, (W. A.
B.), 8371-3372, (G. D. E.), 337^-3374; with A. C. Hunt in re royalty on
poUcy form (ex. 432) (G. D. E.), 2754; (ex. 609), 3315-3316; with D. 0.
Merriam (July 6, 1900), attitude of State Department toward (I. V.),
4362-4365
counsel: in investigation, 10; regular counsel, G. Burnham, 3024; during
examinations (G. D. B.), 3204-3205, 3258-3259, 3260; retention of J. F.
Pierce (G. D. B.), 3204
elections:
method of conducting (0. W. C), 107-108; minutes of (C. W. Co.),
107; notices of (C. W. C), 110; participators in (0. W. C), 107-108;
proportion of proxy votes (0. W. 0.), 108
employees:
participation of, in voting for amendment to constitution, 1901 (G. D.
B.), 2795
examination; by Ins. Dept. of Iowa (G. D. E.), 3270-3272; bills of M.
Dehler for (ex. 484^485, 3271-3272; letter from Ins. Dept. of Iowa, on
(ex. 586), 3272
by Missouri Ins. Dept. (G. D. E.), 3273-3274; bill for (ex. 587), 3273
by N. Y. Dept., 1451-1454 (G. E. D.), 3204-3207; and reports of in 1899
(G. D. B.), 3257-3265, (I. V.), 4349, 4365; (L. F. P.), 4504; omission of
investigation of charges in 1899 (G. D. E.), 3259-3260, 3261-3265;
(I. v.), 4352-4355; non-examination of payments to Moss (I. V.),
4356, of payments to Storm and Merriam (I. V.), 4361; in 1902 (G.
D. E.), 3275-3279; in 1904 (G. D. B.), 3279-3280; by N. Y. branch of
Ins. Department (R. H. H.), 4528
Exhibits: 431, 432, 433, 434, 435, 435A, 437, 439, 440,. 445, 446, 447, 527,
528, 550, 551, 552, 557, 568, 559, 560-752, 588, 632, 633, 634, 635, 636,
637, 638, 639, 6«), 988, 989, 990, 991
expenses, increase' in 1899 (G. D. E.), 2801-2803; increase of in 1902,
from business of Northwestern Life (G. D. B.), 3099; plan for reduc-
tion of (G. D. B.), 3300-3310
fees of directors, in general (C. "W. 0.), Ill, (G. D. E.), 3321-3322; to H.
H. Brockway (G. D. E.), 3184-3185; payments to H. Brockway (ex.
611), 3320-3321
foreign business and expenses of same (G. D. E.), 3319-3320;
investigating and adjustment dept., items covered by (G. D. B.), 2969;,
expenses of (G. D. E.), 3314-3315
investments; persons in charge of (C. W. C), 111; expenses of (G. D. E.),
3313
income, increase of, from expense loading of Northwestern Life policies
(G. D. E.), 3095-3099
insurance, reduction in amount of, to obviate increased assessments
(G. D. B.), 2777-2781; statement showing how reduction was made
(G. D. E.), (ex. 436), 2782-2787; justification found in policies for reduc-
tion (G. D. E.), 2777-2778
leasehold assets, appearance of. In examiner's report (L. F. P.), 4508
Index — Witnesses and Exhibits. 599
Mutual Res. Life Ins. Oo. — Continued,
lapses,' number 6f (G. D. E.), 3159^3161
legal and legislative expenses and interests; campaign contributions
(G. D. E.), 3269-3270
legal expenses, increase of (G. D. E.), 2801-2802; cause for large
amount of (G. D. E.), 3113-3114; statement of, from 1894-1905 (ex.
573 and G. D. B.), 3194-3207; in connection with proceedings of ins.
dept. In Iowa (G. D. E.), 3202, in connection with the proceedings
of ins. dept. in Minnesota and Wisconsin (G. D. E.), 3203; bill of
Missouri attorney, for procuring license (ex. 587), 3273-3274; in
connection with proceedings of ins. dept. in N. T. (G. D. B.), 3204;
(G. D. E.), 3265-3267; counsel for examination of 1902 (G. D. E.),
3277-3278; for examination of 1904 (G. D. E.), 3280; payments to
Mr. Lauterbach (G. D E.), 3278-3279; charged to general expenses
(J. A. H.), 3236-3237; amount charged to general in 1899 (G. D.
E.), 3267-3268; statement of, charged to general expenses (ex. 601),
3298-3299; payments to Tracy, Boardman & Piatt in connection with
legislation, 1901 (G. D. E.), 3275-3276, 3279-3280; voucher of war-
rant and payment to Tracy, Boardman & Piatt, of $15,000 (ex.
602), 3298-3299; payments of, of $10,000 to Boardman, Piatt & Soley
(ex. 610) 3320
legislation for reincorporation of (G. D. E.), 3275-3277; legislation in
Canada (G. D. E), 3147-3156
liabilities, inclusion of unproved death losses in, in report (G. D. E.),
2799-2800; imassessed claims cliarged to (G. D. E.), 3817
liens on outstanding policies, to obviate increased assessments (G. D.
E.), 2777,2796; illustration of (ex. 436), 2781-2786; by-law regarding
(ex. 437), 2786-2788; meeting of members adopting by-laws regarding
(G. D. E.), 2793-2795; resolution of d'rectors authorizing (ex. 445),
2795-2796; connection of, with legal reserve (G. D. E.), 2791-2792;
case of D. Hall (G. D. E.), 3026-3027; on 15 and 10 year class (G. D.
E.), 3072; reasons for, on 10-year class (G. D. E.), 3075-3076; amount of,
as compared with reserve (G. D. E), 3150-3152; comparison of, in
Canada and U. S. (G. D. B.), 3152-3153, 3169-3171; treatment of, as
assets (G. D. E.), 2792, 3279-3280
litigation; concerning increase of assessments (G. D. E), 2767; in
England, case of Mut. Res. v. Foster (G. D. E), 2768-2770; decision
of House of Lords, in Mut. Res. vs. Foster (G. D. B.), 2768-2770; in
North Carolina (G. D. E.), 3113-3116; in other states than North
Carolina (G. D. E.), 3121; judgments against Mut. Res. in England
(G. D. E.), and U. S., 3114-3120; appearance of judgments, in report
to ins. dept. (G. D. E.), 3117-3120
concerning commissions to Harper Estate (G. D. E), 3180-3181; in
suit brought by W. Harper (G. D. E), 3250-3251
Patterson suit (G. D. B.), 3194-3197; deposition of I. Vanderpoel in
Patterson suit, 3296-3297; (I. V.), 43S7-4358; examination of charges
In (L v.), 4358
(500 Index- — Witnesses and Exhibits.
Mutual Res. Life Ins. Go. — ContLntied.
Deeming application for suit of accountirag (G. D. B), 3205; payments
to MacDonald in settlement of threatened suit by policyholders (G.
D. E.), 3221-3222
loading, on premiums of Northwestern Life (G. D. E), 3095-3099
loans to policyholders, amojnt of, consisting of charges on policies (6.
D. E), 2792-2793
loss In excess of assets over liabilities, 1891-1899, explanation .of (G.
D. E.), 2798-2801
miscellaneous items, expense of resisting claims placed ander (G. D. E),
3314
misleading statements; regarding uniform payments (G. D. E), 3028-
3029, 3301-3303; regarding age rate of assessment (G. D. E), 2767,
2769-2771
mortality rate, in excess of anticipation (G. D. E.), 2798; Increased
by transfer plan (G. D. E.), 3138, 3143-3144, 3145-3147; on transferred
business (G. D. E.), -3241-3242
mortuary premiums in policy form of 1890 (G. D. B.), 2766; mortuary
receipts and disbursements on 15 year class of policies, 1891-1897
(G. D. E.), 3067
new business, cost of (G. D. E.), 3309-3311
non-ledger transactions; payments to F. A. Bumham by H. H. Brock-
way (H. H. B.), 3185-3191; (G. D. E.), 3192-8194
officers: commissions of, on insurance (G. D. B.), 3179-3180, 3180-3182,
3292-3293; on Harper contract (G. D. E.), 2802-2804; (J. A. H.), 3366-
3374; list of, 140; non-receipt by, 'of fees (G. D. E.), 3312
organization; declaration and charter of, 103-106;' assessment business
(G. D. E.), 2744; modification, from assessment society, (G. D. E.),
2744-2745; re-incorporations (1883, 1902) (G. D. E.), 2749; meeting of
members regarding re-incOrporation of, 1902 (G. D. E.), 2796
by-law of 1901, providing for reduction of insurance (G. D. E.), 2777;
minutes of meeting at wMch by-law was adopted, (G. D. B.), 2793-
2795
reorganization as level premium Go. (G. D. E.), 2750-2758
policies; flrs^t form of, providing for excess assessment and reserve (ex.
431), 2753-2754; royalties and payments upon first form of (G. D. B.),
2754; contract in re-copyrighted form of (ex. 609), 3315-3317
second specimen of, without limitation (ex. 433), 2755-2759
English form of, issued in 1890 (G. D. E.), 2764-2767; personal liabili-
ties of members on 1890 form of (G. D. E.), 2765,; ten year distri-
bution deposit of (1890), (G. D. B.), 2746; forms of, of 1S90, dis-
continued (G. D. E.), 2768
form of, showing increase of assessments (ex. 435), 2771-2772
subject to lien charge under by-law of 1901 (G. D. B.), 2796
beginalng of classiflcation of (G. D. E.), 3065-3066
fifteen year class (G. D. E.), 3066-3070; deficiency in (G. D. E.), 3067-
3070; increase in rate on, according to age (G. D. B.), 3072-3075;
bonds on (G. D. B.), 3074; continuation of, harmful to company
Index — Witnesses and Exhibits. 601
Mutual Res. Life Ins. Ck).^<:!ontlaiiie(i.
(Gf. D. E.), 3101; Mtigatlon concerning Increased assessments on, In
North Carolina (G. D. E.), 3113-3115; transfer from, to five year
combination option plan (G. D. B.), 3146-3147
10 year class (G. D. E.), 3070-3071; lien on (G. D. B.), S071; increased
assessments on (G. D. E.), 3076-3077; ten year renewable term
insurance (G. D. E.), 3130
five year class (G. D. B.), 3071-3072; deficit in (G. D. B.), 3071; special
assessment on (G. D. B.), 3076-3077; rates on five year combination
option policies (G. D. E.), 3140
contract reserve form (G. D. E.), 3071
level premium policies (G. D. E.), 3153-3154; first issue of, 2748; non-
separation of (G. D. E.), 3156
preliminary term system of (G. D. E.), 3280-3283
policy No. I,019j575, taken from Northwestern Life, showing lien and
additional charge (G. D. E.), 3299-3300; No. 3,593, showing special
assessments, instead of uniform rates as promised (G. D. E.), 3300-
3304; No. 315, where owner after paying $4,396.27, received nothing
(G. D. E.), 3304-3305; example showing amount paid and received
on policy for $5,000, issued In 1886 at age 40 (ex. 436), 2781-2786
reduction of policies of Canadian Provincial Co. (G. D. B.), 3085
policyholders; advantages to, in Canada under option clause 0. (G. D.
B.), 3308-3309; classification of, as regards reserve (G. D. E.), 2747;
complaints of, regarding credit bonds and assessments (Aug, 3, 1905)
(G. D. E.), 2788-2790, 2796; regarding increased assessments (ex. 607),
3302; correspondence with A. Lathrop regarding increased payments
(ex. 606), 3300-3301; (ex. 608), 3308; letter to Solladay, regarding his
policy (ex. 604), 3299-3300
lists of (C. W. C), 108; notice to, of Hen against policies (G. D. E.),
2780; participation of, in elections (C. W. C), 107-108; number of
voting on changed policies (1901) (G. D. E.), 2787-2788; number of
voting for amendment to constitxition in 1901 (G. D. E.), 2795; pro-
poBtion of proxy votes at meetings regarding reineorporation (G.
D. B,), 2796-2797; treatment of policyholders of Canadian Co. (G.
D. B.), 3084
litigation threatened by (G. D. E.), 3221-3223; inciting of, by auditor
Hofeeker to fake action against company (G. D. B.), 3222
proportion of amount paid to, to amount received (policy 315) (G. D.
E.), 3304-S305
premiums; first issue of level premiums (G. D. B.), 2748; incompati-
bility of natural premium basis, with assessments according to age of
entry (G. D. B.), 2774-2775; premiums collected on $1,000 ins. (G. D.
E.), 2775-277&; average premium o5 policies from 1896 toi 1902 (G. D.
E.), 2797; comparison of, on ten and fifteen year plan policies (G. D.
E.), 3130-3131; increase of, in fifteen year policies (1895), while low-
ering ten-year rates (G. D. B.), 3133-3135; miscalculations as tol suffi-
ciency of (G. D. B.), 3133, 3141-3146; amounts charged first year (G.
D. E.), 3281-3282
proxies; number and form of (0. W. C), 108-109; practices regarding
(O. W. C), 109; number cast at meeting deciding on changed policies
602 Index — Witnesses and Exhibits.
Mutual Res. Life Ins. Co. — Conlinued.
1901) (G. D. E.), 2787; number cast at meeting for amending consti-
tution, 1901 (G. D. B.), 2795; proportion of, east at meeting regarding
reincorporation (G. D. E.), 2796-2797
real estate; extent and value of (G. D. B.), 3171-3173; home office build-
ing, cost, expense, value, income, etc. (G. D. E.), 3173--3178; question
of leaseholds and investment of reserve in (G. D. E.), 3173-3175, 3177-
3178; expenses and repairs on (G. D. E.), 3312-3313
rebates on taxes (J. J. M.), 4539
reports and relations to Ins. Depts.: attitude of N. Y. dept. to acqui-
sition of business of Northwestern Life (P. H.), 4298-4294; to bonds
statements (H. D. A.), 4396; debai-ment of Mut. Keserve from busi-
ness in certain states (G. D. E.), 3121-3122; deposits with ins. depts.
G. D. E.), 3320; alleged payment of $40,000 to ins. dept. (G. D. E.),
3367-3268, 3274; dissatisfaction of company at omission of findings
on charges in 1899 (G. D. E.), 3206-3207; (deposition of I. V. concern-
ing), 3296-3297; relations to lovFa dept. (G. D. E.), 3270-3272; influence
of Mut. Res. in securing amendment to section 52 of insurance law
(G. D. E.), 2751-2752; judgments placed under " salaries," etc., In
report (G. D. B.), 3117-3120; attitude of N. Y. dept. toward insuffi-
ciency of rates (H. D. A.), 4399; to leaseholds (F. H.), 4294-4296; and
contract reserve (H. D. A.), 4397; toward liens (G. D. B.), 3279-3280;
(F. H.), 4292-4293; relation's to Missouri dept. (G. D. E.), 3273-3274;
restrictions of Mut^ Res. as co-operative assessment Co. (G. D. E.),
2748
reserves; contract reserve (G. D. E.), 3285; against earlier business pro-
vided in Section 52 of ins. law (G. D. E.), 2750
fund from 25 per cent, excess (G. D. E.), 2744-2745, 2746-2748, 2749;
division of fund from excess assessment (G. D. B.), 2755-2756; pro-
vision for fund in policies (ex. 433), 2756; (ex. 434), 2761-2762; basis
for application of fund to policies of other classes (G. D. E.), 2773;
dlscontinual of assessments for (G. D. B.), 3162-3163
fund for 15 year class (G. D. E.), 2800, 3161; reserve (esfimated and
real), on five year combination option policies (G. D. B.), 3141-
3146; legal reserve (G. D. E.), 2749; against level premium policies
(G. D. E.), 2749; for ten year class of policies (G. D. B.), 2773; ac-
cumulation of, on ten year policies (G. D. B.), 3138-3139
salaries; of president (0. W. C), 111; (G. D. B.), 2805-2806, 3019-3021; of
H. H. Brockway (G. D. E. and H. H. B.), 3182, 3185-3186, 3189-3190;'
increase in, from acquisition of Northwestern Life (G. D. E.), 3099;
reasons for increase of (G. D. E.), 3100-3101; reduction of, in 1898
(G. D. B.), 3310; statement of, according to individual (ex. 528), 3022;
statement of, according to office (ex. 527), 1881-1905, 3020-3022
securities invested in foreign jurisdictions and reasons for (G. D. B.),
3318-3319; securities invested in the U. S. (G. D. B.), 3320
surplus, explanation of, decrease in (G. D. B.), 2800, 3285-3286; probable
increase of through assessments of Nov. 1 (G. D. E.), 3317-3318; ten
year class of policies (G. D. E.), 3070-3071, 3134-3137; reduction of, by
eliminations in Mr. Vanderpoel's report (G. D. B.), 3261-3262
Index — Witriesses and Exhibits. 603
Mutual Res. Life Ins. Co. — Continued:
surrender values, amount of, paid in cash and otherwise (G. D. B.),
3159-3160; warning necessary for payment of (G. D. E.), 3156-3159;
method of determination of (G. D. E.), 3168-3169
technical defenses, nature of (G. D. B.), 3110-3111
valuation of policies according to section 52 of Insurance law (G. D.
E.), 2750-2751
Mylrea:
counsel of Mutual Reserve in Wisconsin (G. D. E.), 3203
N
Nash, Willis 6. (cashier of Nat. Bank at Albany), testimony of, on account
of A. Hamilton, 608-609
Nassau Bank, account of Empire Life with (S. W.), 4035-4036
Nassau Street, No. 35, taken in exchange for properties on West 27th and
28th Streets, by Prov. Savings Life (W. N. E.), 3967
National Association of Insurance Ooramissioners:
annual statement blanks approved by (H. D. A.), 4774; attitude of,
toward requirement of dividends in annual statement (H. D. A.),
4476; toward requirement of gain and loss exhibit (H. D. A.), 4477
Nat. Bank of Commerce:
dividends of (R. A. McC), 1598; connection of, with Kuhn, Loeb & Co.
(J. H. S.), 1034
relations of, with Mut. Life (F. C), 457-464; (G. F. B.), 485; interest
of Mut. Life in establishment of (R. A. McC), 1592-1595; deposit
of Mut. Life with (G. G. H.), 4667; connection of G. G. Haven with
(G. G. H.), 4547
account of Washington Life with (J. T.); 4151-4152
Nat. Bank of Commerce of Kansas City:
connection of J. R. Hegeman with (J. B. H.), 2104
Nat. Bank of the U. S. : see Hide and Leather Bank
National Life Insurance Co. of Montpelier, Vermont :
statement of, 4773; annual meetings of direcors of, 4774; bank balances
of, 4778; contracts of, with general agents, 4774; contributions of, to
political campaigns, 4774; dividends (annual and deferred) of, 4777;
documents furnished by, 4773; investments of, 4778; loans of, on
collateral, 4778
Nat. Life Ins. Co., U. S. A. : stock of, as security for assets of Northwestern
Life (G. D. E.), 3096, 3093, 3099
National Mutual :
business of, transferred to Empire Life in 1894 (S. W.), 4035
National Safe Deposit Co. : ,„ „ ,: ^ v
capitalization of (R. H. McC), 1671; financial status of (R. H. McC),
1306; relations of Mut. Life with (R. H. McC), 1288-1289; Interest of
Mut' Life in (B. H. McC), 1671-1672
National Shoe & Leather Bank : ^ ^ ,^ u «
rter,of^-s of Metr. Life with (J. B. H.), 2101; shares of, held by officers
nf Meir. Life (J. R. H.), 2097
604 Index — Witnesses and Exhibits.
National Surety Company :
agents' advances of ProT. Savings Life secured by (E. W. S.), 4017-4018;
assignment to, of renewal premiuins by Prov. Savings Life ( E. W. S-. ) ,
4018; arrangement with, for- agents, by Prov. Savings- Life' (B. W. S.),
4019
National Travelers' Insurance Co. : original name of Metropolitan Life Ins.
Co. (H. F.), 88
National Travelers' Ins. Co.: declaration and certificate of (ex. 11), 89
Nautilus Co. :
original name of N. Y. Life Ins. Co. (J. A. McC), 49
Navigation Syndicate (or International Mercantile Marine Syn.) :
participation in, by N. Y. Life (J. C), 242-247, (E. D. R.), 348-349, (G.
W. P., 585-588, 662-663, 706-708, 713, (M. M. M.), 708, 713; connection
of J. P. Morgan & Co. with (J. C), 242, (E. D. R.), 349-350, (G. W.
P.), 585-587; in syndicate list (ex. 38), 348; in list of ' purcHases (ex.
46), 348-349; loss of $80,000 on (E. D. R.), 369-370, (G. W. P.), 585;
sale of $800,000 to J. P. Morgan & Co., Dec. 31, 1903, and re^purcbase,
Jan. 2, 1904 (E. D. R.), 349-351, 380-381, (G. W. P.), 585-588; check
for $800,000 (G. W. P.), 662-664; and interest on same (G. W. P.),
706-708, (M. M. M.), 708-713, (ex. 139), 713; participation in, by J.
Claflin, 242-247; participation of G. H. Squire, trustee in (H. G'reaTes),
914-918, (H. R. Winthrop), 918-919; see also International Mercantile
Marine Syndicate
Nebraska: attempt of insurance companies to influence legislation in
(W. F: T.), 1193^1194
Nepotism :
in Life Association (H. P. T.), 4073, 4078, 4079; in Mut. Lifef (R. H.
McC), 1164, 1272-1275, 1315; in Metr. Life (H. F.), 99; in Mut. Res.
(C. W. C), 111, in N. Y. Life (J. O. MeC), 63:, (j. A. McC), 1153-1154,
(E. I. D.), 1172-1173; in Prudential Ins. Co. (J. F. D.)i 3653-3657
Newark Consolidated Gas Co. : Prudential Ins. and Fidelity Trust Co.'s
transactions concerning (J. F. D.), 3781
New business:
amount to be properly expended on (E. McC), 1904-1908; (J. T.), 4133-
4137; and possibilities of, without Injuring old policyholders* (B.
McC), 1908-1916; advantage for, of deferred dividend systemt (R.
W. W.), 1116-1117; drawing on reserve for (R. W. W.), 1118-1125;
possibility of limitation of (J. G. Vfln C), 4726; methods of procuring
(G. E. T.), 2621-2624; cost of, in Eqult, 1895-1904 (ex. 926), 4728;
in N. Y. Life, and damage to old pollcyholdfers (R. W. W.), 1119;
in Sec. Mut. (C M. T.), 3440; amount to be properly expeHded for,
in Washington Life (J. T.), 4135; in Home Life (©. E. L), 3587;
see also Individual companies
New England Mutual Life of Boston:
statement regarding, 4803; history and administration of, 4808; commis-
sions of, 4896; political contributions of, 48<!©; standing committees of,
4804; methods of, of apportioning dividends of, 4807; documents fur-
nished by, 4803; elections of 4803; investments of, 4806; legal ex-
penses of, 4804; legislative payments of, 4804; syndicate participa-
tions of, 4805
Index — Witnesses and Exhibits. 605
New Jersey insurance law : requirements regarding paid up policies ( J P
D.), 3T16-3717
Newkirk, George A.: (employee of N. Y. Life), notes of (B. D. B.), 287,
308, 309
New Orleans 4% bonds and Traction Syndicate:
transaction in, between N. Y. Life and N. Y. Security and Trust Co.
(J. C), 234; (E. D. R.), 369-380; (G. W. P.), 718-725, 952, 955-956;
(W. S. F.), 2987-2991; connection of Fansbaw & Co. with (H. D. R.),
375-376; (G. W. P.), 721-725, 952, 955-956; (W. S. F.), 2987-2994
New Orleans Terminal : statement of joint account in, of N. Y. Life (ex.
130 and G. W. P.), 703
N. Y. Central Bonds: purchase of ($5,000,000), by Mut. Life (F. C), 458
K Y. C. & H. R. Refunding syndicate: participation of Bqult Life, in
(H. R. W.), 796, 834-835; (J. H. H.), 2237-2338
New York City bonds: purchase of, for $103,000, and deposit of, with
N. Y. Ins. Dept. by Life Association (H. P. T.), 4057
N. Y. Cil7 3% bonds: joint account of N. Y. Life in, with Harvey Fisk &
S'ons (G. W. P.), 690-691,. 703; (ex. 118), 690; (ex. 132), 708
N. Y. City 3y2's syndicate:
participation of Equit. Life in, (H. R. W.), 796-797, 836; (J. H. S.), 1021;
proceeds of profit from, in G. H. Squire trustee account (H. G.), 900,
901
N. Y. Dock Co.: see Brooklyn Wharf & Warehouse Co.
New York Life Insurance Co.:
accounts bonds and stocks (ledger 2), bonds in, marked down by syndi-
cate profits (M. 'M. M.), 2861-2862; cash account (J. A. McC), 625;
commissions and profits account (G. W. P.), 585; Andrew Hamilton's
personal account (.1. A. McC), 627-628; Hamilton's account with Al-
bany Trust Co. (ex. 160 and G. C. Van Tuyl), 826-828; Hamilton's
account with J. P. Morgan & Co. (G. W. P.), 2905; Hanover Bank
office account (ledger 3), (ex. 72), 534-536; (E. D. R.), 534-541, 548;
iex. 75 and 76), 552-553; (ex. 78), 581; syndicate account kept in (6x.
472), 2858-2859; Home office annex account, payments to Hamilton
charged to (E. D. R.), 541-545, 547; (J. A. McC), 628-634; account. No.
1 with First Nat. Bank (E. D. B.), 366; account No. 2 with the First
Nat. Bank (B. D. R.), 366; (ex. 74), 547; ledger account (J. A. McC),
634-635; sub-ledger account (.1. A. McC), 626; legal expense account,
non-appearance in, of $75,000 to Hamilton in Dec, 1903 (J. A. McC),
626-627, 641; accounts 1, 2, 3 with N. Y. Security & Trust Co. (B. D.
R.), 277-278, 278-280; account 4 with N. Y. Sec. & Trust Co. (B. D. R.),
278-280, 353, 358-362, 363-365; suspense accounts (C D. W.), 551-553;
(J. A. McC), 628; syndicate account, kept in ledger 3, Hanover Bank
account (ex. 472 and M. M. M.), 2859-2863; debit of $236,346.67 to, on
Dee. 29, 1902 (M. M. M.), 2K9-2861: Sloane bill for furniture in (M.
M. M.), 2863
accumulations for distribution, dependence of, on surplus (R. W. W.),
1123-1124
actuarial department; method of classification of policies (R. *W. W.),
4744; statement of annual dividends, figured at age of 40, as paid in
606 Index — Witnesses cmd Exhibits.
New York Life Ins. Co. — Continued.
1885, 1890, 1905 (ex. 1015), 4770; distribution of deferred dividends
(R. W. W.), 1125-1128; equitable method of accounting for deferred
dividends (paper prepared by K. Wi W.) (ex. 297), 1827, difference in
estimated and actual sliare of surplus on deferred dividends (R. "W.
W.), 4741; computation of deferred dividends (R. W. W.), 4744; ap-
proximate discontinuance rates on policies since 1899 (R. W. W.),
4745; approximate amount taken in making calculations for 1904
(ex. 958), 4747; approximate fractional accounting to Dec. 31, 1902, on
deferred dividend policies (ex. 959), 4747; comparison of computation
of deferred dividends with other companies (E. McC), 1827-1828; sur-
plus and reserves on deferred dividends (J. McC), 1099-1105; results on
forfeiting and nonforfeiting class of policies (R. "W. W.), 4445; limi-
tation of interim funds (R. W. W.), 4747; methods of substandard in-
surance and impairment tables (R. W. W.), 1111-1112, 4747; calculation
of surplus for distribution (R. W. W.), 1109-1111; formula for distri-
bution of surplus, deferred dividends (R. W. W.), 1125-1127; ex-
planation of decrease in surplus from 1901 to 1904 (R. W. W.), 1128-
1130; basis used to estimate surplus- (R. W. W.), 4747;. statement of
estimated surplus and actual results on tontine estimates of 1872,
1881, 1884 (ex. 954), 4741; illustrations issued in 1905 (ex. 955), 4743;
books headed "Actual Results on Free Tontine policies maturing in
1905 " (ex. 956), 4742; explanation of tontine reports to German gov-
ernment (R. W. W.), 4746; copy from Prussian reports of apportion-
ment of surplus to. tontine policies (ex. 961), 4749; letter from actuary
to vice-pres. Ingersoll of Paris (ex. 237), 1117; letter from actuary to
Privy Councillor of Russia (ex. 957), 4745
advertising: items for advertising, printing, etc. (F. C), 504; statement
of payments to Insurance journals, 1900-1905 (M. M. D.), 4762; pay-
ments to E. Riggs for special work In advertising (ex. 1009), 4763
agency department; advances of, in Buffalo (ex. 209), 975-980; charged
to profit and loss (T. A. B.), 976, 977
balances of, treatment of, in reports (G. W. P.), 948-950; balances
charged to profits on securities (T. A. B.), 973
bonuses of. In Germany (T. A. B.), 788-789; amount paid In 1904
(T. A. B.), 782; of agency directors (M. M. M.) (T. A. B.), 7S3-736,
739; and their connection with Nyllc (G. W. P.), 964, 965-968, 2921.
clubs of (T. A. B.), 741-742
commissions of (T. A. B.), 740-747, (ex. 151), 787, (Nyllc system), see
Nyllc; rate of (G. W. P.), 2872; on single and first year premiums
(1904) (T. A. B.), 783; on deferred dividend policies (R. W. W.),
1113-1116; on ordinary life policies (R. W. W.), 1114-1116; compared
with Wash. Life (J. T.), 4133
advance and renewal commissions of (T. A. B.), 970-973; nature of
advance commissions (T. A. B.), 971-972
contracts of (T. A. B.), 787; in Australia (T. A. B.), 790; in Buffalo
(1901) (T. A. B.), 973-980; with D. H. Desbecker (ex. 208), 975-976;
in* France, England, and Russia (T. A. B.), 789; general agency
contracts (G. W. P.), 2873
Index — Witnesses and Exhibits. 607
New York Life Ins. Co.— Continued.
conventions of (T. A. B.), 740-741
fund for agency directors (G. W. P.), 963-968; see also Nylic
inspectors of agencies, 732-733 ; Inspectors of agencies at large (M M
M.), 733
managers of (T. A. B.), 740
organization of (G. W. P.), 729-732; policy regarding employing men
from other companies (T. A. B.), 973-983; relations to Bquit Life, in
regard to (T. A. B.), 974-975; agreement with Bquit. regarding and
transfer of 200 N. Y. Life men to Equit. (G. E. T.), 2630-2632;
present understanding with Equit. regarding (T. A. B.), 980-983, (ex.
421 and G. E. T.), 2656; agi'eement with Metr. Mut. and Prud. Life,
regarding (T. A. B.), 980, 981
rebates, continuation of, after discontinuance of agencies (G. W. P),
2874-2876; dismissal of agents for (G. W. P.), 2877
agents' report, Nov. 1902 (ex. 474), 2872-2873
salaries of, agency directors and inspectors (exs. 215, 216), 992-993;
salaries paid over to Nylic (G. W. P.), 2921
assets, ledger and non-ledger (E. D. R.), 254-259, 310-312, 325-326
l)anking and brokerage dealings ; cash balances from Sept. 1900- Aug. 31,
1905 (ex. 39), 237; Jan. to Aug., 1905 (ex. 40), 237; in 1900 (E. D.
R.), 277-278; in 1901, 278-280; in 1902, 280-289; balances for 1904, part
of ex. 39 (ex. 984), 2435; interest paid by banks (1904-5), (E. D. R.).
367-368; arrangement with Bank of Montreal (E. D. R.), 368; substitu-
tion in vault of check of Central Bank for securities during taxation
(T. M. B.), 2957-2967
relations with W. S. Fanshawe (F. H. S.), 391-392, (E. D. R.), 546;
(G. W. P.), 572-573; see also syndicate transactions; to First Nat.
Bank (E. D. R.) 365-368; (E. D. R. and ex. 74), 544, 547-548; with
Goldman & Sachs (Chicago and Alton) (E. D. R.), 343, 345, 346; .(ex.
49 and (F. H. S.), 386-387;" (Chicago & Northwest), (F. H. S.), 388-
390; with Kidder, Peabody & Co. in Mexican Central Railway bonds
transaction (G. W. P.), 2911-2921 (See joint accounts) ; with Kuhn,
Loeb & Co. (Chicago and Alton) (E. D. R.), 344-345
relations with J. P. Morgan & Co. (G. W. P.), 568-573, 572-573; (M.
M. M. and ex. 140), 715-716, $800,000 transaction in Navigation Syn-
dicate (E. D. R.), 349-351; (G. W. P.), 585-587, 662-664, 706-713;
ofBcial authorization of $800,000 sale to J. P. Morgan & Co. (G. W.
P.), 931; purchases from and sales to J. P. Morgan & Co. (Dec. 31,
1902, Feb. 16, April 29, 1903), (G. W. P.), 931-944; securities bought
from (G. W. P.), 960-963; advantages because of G. W. Perkins' con-
nection with firm of J. P. Morgan & Co. (G. W. P.), 2933; state-
ment of profits paid to, by G. W. P., 1903, 715 ; with J. S. Morgan
& Co. in United Collieries (E. D. R.), 289
arrangement with Wells Fargo Nevada Bank (E. D. K.), 368; see also
Joint accounts and syndicate transactions
608 Index — Witnesses and Exhibits.
New York Life Ins. Co. — Continued-
bonuses of stocks (J. C), 244; (E. D. R.), 322-324; bonuses of agents,
see agency dept.
campaign and political contributions, see legal and legislatiTe expenses
cashier's department ; connection of, with treasurer's department, and
accounting for cash (T. M. B.), 2958-2965; change in, since Beer's ad-
ministration (T. M. B.), 2961-2962, 2963
committees :
number and duties of (J. C. McC), 79-82; members of (Agency) (J.
C. McC), 83 ; (auditing) (J. C. McC), 81; executive) (J. C McC),
80-81; connection of A. G. Paine with agency (G. W. P.), 2882;
finance committee, see under finance
commutation of renewal commissions (T. A. B.), 970-973; statements re-
garding (ex. 210, 211), 982
dividends, annual: *
undesirability of (R. W. W.), 1116-1117; policy towards (J. A.' McC),
1157-1158; comparison of, with deferred (J. A. MoC), 1162-1163;. state-
ment of,' for 1885, 1890, 1905 (ex. 1015), 4770
deferred, higher commissions for (R. W. W.), 1113; relation of, to new
business (B. W. W.), 1116-1U7, 1123; method o-f distribution of (R.
W. W.), 1126-1128; computation of (R. W. W.), 4744; computation of,
compared with other companies (B. McC), 1827-1828; treatment of
surplus and reserves on (J. A. McC), 1099-110-5; transfer from
surplus to reserve fund and complaint of policyholders regarding
(J. A. MoC), 1101-llOS, 1103-1105; system of accumulations on
(E. McC),1836
calculation of dividends in reports to German Government (J. A.
McC), 1096-1009; relation of dividends to expenses and receipts
(B. W. W.), 1125
election of trustees; by-law affecting proposed (ex. 9), 73-75; certificates
of (ex. 5), 51-58; method of conducting (J. C McC. and ex. 5), 49-58;
minutes of (J. C McC), 50; nominations for (J. C McC), 75; par-
ticipators in (J. C. McC), 67; proportion of proxy votes (J. C McC),
63-65, 52
election of officers (J. 0. McC), 75-76
examination of, by N. Y. Ins. I>ept. (F. H.), 4280; (I. V.), 4328-4331, 4345;
(L. P. P.), 4501; by Prussian ins. bureau in 1899 (B. D. R.), 265
exliibits:
38, 39, 40, 41, 42, 43, 44, 45, 46, 48, 60, 71, 72, 73, 74, 75,. 76, 78, 79, 80,
81, 72, 83, 84 to 92, 92, 93, 94, 95, 96, 97, 98, 99, 98A, 100, 101,, 102, 103,
104, 105, 106, 107, 107A, 108, 100, 110, 111, 112, 114, 115, 116, 117, 118,
119; 120, 122, 123, 124, 125, 126, IZt, 128, 130, 131, 132, 133, 134, 135,
136, 140, 141, 144, 145, 146, 147, 148, 149, 150, 151, 152, 154, 160, 208,
209, 210, 211, 212, 213, 214, 215, 216, 217, 228, 236, 237, 239, 240, 241,
242, 243, 244, 245, 246, 247, 248, 249, 250, 251, 252, 297, 347, 349, 409,
457, 460, 461, 462, 463, 464, 465, 466, 467, 468, 469, 470, 471, 472,
473, 4T4, 475, 475A, 476, 477, 478-484, 485, 486, 487, 488, 490, 491, 492,
493, 494, 495, 496, 497, 498, 499, 500, 501, 502, 503, 506, 548, 549, 853,
834, 855, 856, 954, 955, 956, 957, 958, 959, 961, 962, 963, 964, 971, 976
A, B, 0, D, E, F, G, 977, 978, 984, 1009, 1015
Index — Witnesses and Exhibits. 609
New York Life Ins. Uo.— Continued,
es^venses of foreign agency (exs. 212, 213, 214, 216), ^5^993; home office
agency (T. A. B.), 742-743; (1904) (T. A. B.), 784; of branch office clerk
hire (T. A. B.), 785; for 1904 (ex. 141), 744; ratios of, for 1904
(T. A. B.), 983-985; ratio of, to loadings (W. A. M.), 3G03
ftees of directors and committees (J. C. McC), 82
finance committee: members of (J. C. MeC. — J. C), 80, 217; minutes
of (J. C. McC— J. C), 80, 82, 217, 219; meetings of (Nov. 9, 1900—
Dec. 30, 1901) (B. D. R.), 294-299; province of (G. W. P.), 588.589;
sub-committee of (J. C), 217-219
responsibility of, in Hamilton checks (J. A. McC), 622, '631-633; respon-
sibility of, in Hegeman loans (G. W. P.), 637-638
attitude .of, tovrard joint account transactions (E. D. R.), 393-396; author-
ization by, of C B. & Q. transaction, 394; authorization by, of Chicago
& Northwest transaction (E. D. R.), 395-396; ignorance of, conceming
Kidder, Peabody transaction (E. T>. R.), 2974; action of, on New
Orleans syndicate and bonds (B. D. R.), 373-375; resolutions of, on
participations in Northern Paciflc-Great Northern (Oct. 19, 1904, Oct.
3, 1904) (G. W. P.), 694; minute of, on Oregon Shoit Line participa-
tion (ex. 120) (G. W. P.), 691; minutes of, on purchase of property
(ex. 94), 616-618; knowledge by, of transaction with N. Y. Sec. &
Trust Co. in U. S. Steel (G. W. P.), 2882, 2884, 2889; authorization
of, by G. W. Perkins for payment of $2,179.69 in U. S. Steel syndi-
cate (G. W. P.), 2889-2891; disposition of the $43,000 tJ. S. Steel
bonds not reported to (G. W. P.), 2894
financial otiice (J. C McC), 79; and relations of, to main office (E. D. R.),
313.316, (C. C. W.), 314-317
foreign business; statement of (exs.. 212, 213, 214, 216), 983-993; report-
ing direct to Home office (ex. 213 and T. A. B.), 987, 988, 992; com-
parison of, with other companies (T. A. B.), 991
Paris office, management, expenses, and working of (exs. 212, 214),
986-992; cost of (T. A. B.), 990-991; (B. I. D.), 1072-1074; explanation
of cost of (J. A. MeC), 1156-1157; income from (E. I. D.), ] 074-1077;
income from Cafg Riche (T. A. B.), 991, (E. I. D.), 1075-1076
gain and loss exhibit, attitude of company towards (H. D. A.), 4479
holding agreements (J. C), 234-241, (E. D. R.), 546-547
impairment tables, sub-standard insurance (R. W. W.), 1111-1112
inspection, bureau of, nature and duties of (T. A. B.) 742-743, V45-746
interim allotments; relation of, to surplus (R. W. W.), 1109-WlO; limita-
tion of, by new business in excess of loadings (R. W. W.), 4746
investments:
by-law 32 (27) controlling (B. D. R.), 265-266; management of (J. 0.
McC) (J C), 79, 217-220; debenture bonds (J. C), 228-230; deben-
tures of Union Savings & Trust Co., (W. V. K.), 3079; distinction be-
tween bonds and stocks (B. D. R.), 323-326; purchases and sales from
Sept 1895, to Sept., 1895 (") (ex. 46), 317, 340, 343, 348, 349, 352; list
of pureliases in 1902 (G. W. P.), 700; securities in charge of finance
com. (J. C McC.) 80; securities bought from J. P. Morgan & Ce.
(G. W. P.), 931-944, 960-963; securities known as flotations of J. P.
610 Index — Witnesses and Exhibits.
New York Life Ins. Co. — Continued.
Morgan & Co. (G. W. P.), 713-715; investment In New Orleans Railway
bonds (J. C), 241; (E. D. E.), 369-380; (G .W. P.), 718-726; sale of New
Orleans traction securities (W. S. F.), 2986-2991; in St. Louis Terminal
4 per cent, bonds by G. W. Perkins (G. W. P.), &B2-944; cost of bonds
reduced by crediting syndicate profits (M. M. M.), 28C1-2862; see also
bank dealings, joint account transactions and syndicates; Russian
investments (J. A. McC), 1157-1158; stocks held Jan. 1, 1899 (E. D. R.),
266-267; sales of stocks under authorization of Nov. 15, 1900 (E. D. R.),
295; proof of stocks (E. D. R.), 298-309; sale of Union Pac. stock
(1904) (E. D. R.), 535
joint account transactions:
profits to banks in (F. H. S.), 386-393; in stocks (E. D. R.), 396; In
bonds and profits to banks (E. D. R.), 393-397; general review of
(E. D. R.), 5.54-548; (ex. 71), 534; (G. W. P.), 81, 601-607, 664-705; state-
ments of bonds retired (G. W. P.), 698
specific transactions:
Atlantic Coast Line bonds (G. W. P.), 702-703, 704; Boston 3 1-2 per
cent, bonds (G. W. P.), 727; Canadian Northern (G. W. P.), 704;
Central Pac. Railway 1st Refunding 4's (G. W. P.), 698-699; Chicago
& Alton, with Goldman, Sachs & Co. (F. H. S. and ex. 49), 386-387;
(G. W. P.), 681-683; Chicago, Burlington & Quincy with W. S. Fan-
shawe & Co. (F. H. S.), 390-394; Chicago & Northwest, with Gold-
man, Sachs & Co. (F. H. S.), 387-390; (G. W. P._M. M. M.), 671-677;
Erie convertible 4's (G. W. P.), 576-579, 581-582, 697 698, 726; Jersey
City 4's (G. W. P.), 697; L. I. City 4 1-2's (G. W. P.), 679-680; L. I.
K. R. refunding 4's, with W. S. B'anshawe (G. W.P.), 690-691; (W.
S. F.), 2992-2993
Mexican Central Railway bonds, with Kidder, Peabody & Co. (G.
W. P.), 2911-2921; (ex. 402), 2914-2915; (ex. 493, 494), 2917-2918; (ex.
495, 496, 497, 498, 499), 2918-2920; (E. D. R.), 2973-2977; connection
of Nylic with (G. W. P.), 2921-2925; check for $40,193.60 profits en-
dorsed by B. D. Randolph and paid over to G. W. Perkins (G. W.
P.), 2919-2920; investment of $43,000 In steel (G. W. P.), 2925-2931;
(ex. 500), 2931; Missouri Pacific 5's (G. W. P.), 680-681; New Orleans
Terminal (G. W. P.), 703; N. Y. City 3% bonds (G. W. P.), 690-691,
703; N. Y. Ontario & Western (G. W. P.), 677-679; Northern Pacific-
GreaJ Northern (G. W. P.), 692-695; Oregon Short Line (G. W. P.),
691-692; Pittsburg, Virginia & Charleston (G. W. P.), 690; Queen's
County 4's (G. W. P.), 683-685; Sanitary District of Chicago Munic-
ipal 4%'s (G. W. P.), 701-702; Savannah, Florida & Western 5's (G.
W. P.), 665-671; Southern Pac. R. R. 1st mortgage refunding 4's
(G. W. P.-M. M. M.-ex. 122), 695-697; U. S. of Mexico (G. W. P.),
704; Washington Terminal (G. W. P.), 601-602, 702-703, 727; Wladl-
kakes Railway Co. (G. W. P.), 683
legal and legislative expenses and Interests: campaign contributions;
in 1904 (check of $48,702.50) (E. D. R.), 543,544 (G. W. P.), 582-584'
588-589; (ex. 78), 582, 588 (J. A. McC), 650-651; contributions to Mc-
Klnley campaigns (G. W. P.), 582-583; amount of contribution to
Index — Witnesses and Exhibits. 611
New York Life Ins. Co.— CJontinued.
McKinley campaigns (G. W. P.), 590; knowledge of Finance Com-
mittee concerning (G. W. P.), 589-590; advisability of accounting
for (G. W. P.), 589; denial of pledges in return for (J. A. McCall),
1132; non-appearance of, on books (J. A. McC), 1132-1137; affidavits
given to Texas official concerning (J. A. McC), 1132-1137; ignorance
of legal department concerning (J. A. McC), 1185-1136; testimony
of cashier concerning (T. M. B.), 2963-2965; denial of contributions
to campaign committees (J. A. McC), 1140; denial of J. A. McOall
of contribution to Senator Piatt, 2945-2946, 2951; contributions to
state politics (T. C P.), 2577; affidavits of Banta, Thompson and
Whitney regarding (ex. 973, 974, 975), 473, Ex. p. 1222-1224
co-operation with Equit. in Wisconsin (J. A. McC), 1154-1155; with
Mut. and Metr. (A. H.), 4426
Hamilton Bureau: first connection of Hamilton with N. Y. Life (C
D. W.), 553 (G. W. P.), 592-593 (J. A. McC), 611; legislative work
of Hamilton (J. A. McC), 633, 1137-1139; appearances 'before legisla-
tive committees (J. A. McC), 1151-1152; denial of connection with
Chicago & Alton bonds legislation (J. A. McC), 1155-1156; measures
adopted to defeat adverse legislation (A. H.), 4425; confidential na-
ture of payments and disbursements (G. W. P.), 905 (A. H.), 4428;
expenses of Bureau (J. A. McC), 2934-2945, 2953-2956; retainer of
Hamilton (J. A. McC), 611-612, 638
payments to Hamilton: in connection with Home Office Annex prop-
erty (exs. 84-92 and J. A. McC), 614-620; history of $75,000 ad-
vanced Dec, 1903, for real estate transactions (ex. 95-98 and J. A.
McC), 621-625, 625-630, 632-633, 635-637, 641-649; history of $60,000
in Jan., 1904 (ex. 99A, 100, 101, 102 and J. A. McC), 623, 628, 631-
634, 651-652; history of $100,000 advanced for real estate transac-
tions in March, 1904 (E. D. R.), 540-542; (C D. W.), 548-649, 553;
(ex. 79, 80 and G. W. P.), 591, 593-594; (exs! 82, 83 and J. A. McC),
612-614, 621, 629-630, 134; items aggregating $235,000 transferred
from suspense to H. O. Printing Boom account (0. D. W.) 551-552,
(J. A. McC.) 623, 628, 634; reasons for placing $235,000 in real estate
account (J. A. McC), 651-654; non-accounting of Hamilton for
$235,000 and guarantee of J. A. McCall for same (J. A. McC), 61i,
6^: conversation of J. A. McC. with Hamilton regarding $235,000
(J. A. McC), 637-638; Hamilton's accounting for $235,000 charge (A.
H.), 4431; amount due Hamilton for tax suit (J. A. McCX 625-626;
payments of $75,000 in taxes suit (C D. W.), 1181-1188; payments
for legal work in 1904 (J. A. McC.) 638; credit of $111,139.04 to Ham
llton's Albany account, June 8, 1904 (J. A. McC), 654; accounting
of A. Hamilton for moneys spent by him (J. A. McC), 1149-1150;
payments for influencing legislation (ex. 238), 1138-1139, 1143, 1145-
1148 1149-1150, 1151; t)ayments in connection with legislation and
percentage on disbursements (J. A. McC), 2934-2945, 2953-2955; pay-
ment of $59,310.79 in -steel syndicate (G. W. P.), 2896-2899; (M. M.
M ) 2899-2901, (G. W. P.), 2901-2903; entry of payment of $59,310.79
on kotter No. 4 (ex. 787), 2899; non-appeai-ance of $59,000 on books
612 Index — Witnesses and ExMbits.
New York Life Ins. Co. — Continued.
and in a'e^ort to Insurance Department (J. A. McC,), 2942-2945, 2954-
2955; J. C. McC.'s testimony on $59,000, 3063; payments tlxro^gh City
Nat. Bank and Morgan & Co., between 1896-1901 (exs. 478, 479, 480,
481, 482, 483, 484), 2897; indirect payments througli Morgan '& Co.
(J. A. McC), 2937-2938, 2941; payments tlirough N. Y. Security anrl
Trust Co., between 1896-1901 (exs. 485, 486), 2898; memorandum of
payment of $488,705.50 June 14, 1899 (ex. 488 and G. W. P.), 2903-
2904; transcript of account with J P. Morgan (ex. 465), 2906-2907;
payments from debentures of Union Savings Bank & Trust Co.
• (J. C. K.), 2995-3000; aggregate payments (ex. 856 and J. C. McC).
4436; accounting of payments (A. H.), 4428; knowledge of State
Examiner concerning (L. V.) 4347
payments to Manning (J. A. N.), 2565; (J. A. McC), 2948-2949; discon-
tinual of (W. S. M.), 2810-2823
persons connected with legislative department besides Hamilton: W.
Barnes^ Sr. (W. B.), 2026-2032; W. H. Buckley (J. A. McC), 1142;
Clunie in California investigation (S. S. McC), 2501; W. J. Holdeu
in Mass. (J. A. McC), 1141-1142; William A. Moss (J. A. McC.) 1139;
J. A. Nichols (J. A. N.), 2565-2566; (J. A. McC), 2948-2949; Mr. Thum-
mel (J. A. McC), 1139-1140
legal account (J. A. McC), 625-627, 641
legal expenses in 1904 (T. A. B.), 784; reasons for large amount of, in
1904 (A. H.), 4430; statement of , from 1898 (ex. 488), 2903-2904, 2905;
aggregate payments to Hamilton (ex. 856) and others (ex. 857),
4436
tax litigation in 1902-1904 (J. A. MeC), 625-626, 1143-1147
litigation: Allison case (J. A. McC), 2951-2953; regarding taxes in 1902-
1904 (J. A. McC), 1143-1147
loading, ratio of, to expenses (W. A. M.), 3603
loans; of bonds at reqiaest of U. S. Government (E.' D. iR.), ,2982-2983
on collateral, policy regarding (B. D. R.), 300, 348, 355; (use of N. Y.
Security & Trust Co.), 354-355; (D. P. K.), 355-356; (G. w. P.-M.
M. M.), 710-726; made only on bonds (D. P. K.), 355; statement of
(ex. 138), 711
dimimy loans :
notes made by employees (E. D. R.), 282-288; universal practice of
(E. D. R.), 292-293; frequency of (E. D. R.), 380
to Hamilton (G. W. P.), 727-729; to E. H. Harrlman (G. W. P ) 574-
575, 726-727
to J. R. Hegeman (G. W. P.), 575, 710-713; memorandum of (ex. 139)
(G. W. P.), 713; rates of interest on (G. W. P.), 944-947; (J. A.
MeC), 1152; (J. R. S.), 1783-1784.
to W. S. Fanshawe & Co. (C W. P.), 954-959; on impaired risks
policies (J. A. McC), 1106-1107; to Kidder, Peabody & Co., en-
tered on books as a purchase (E. D. R.), 2975^2977; Mattison,
Marshall, and Newkirk loans (dummy loans) (E. D. R.), 300, 305^
308, 309, 358-359; to N. Y. Security &. Trust Co. $1,000,000 (G. w!
P.), 726-727; securities for loans to N. Y. Security & Trust Co. (G.
Index^ — Witnesses and Exhvbih. 6\li3
New York Life Ins. Co. — Continued.
W. P.), 959-960; on poflcies, practices regarding (J. A. McC), 1105-
1108; of securities for purpose of taxation (B. D. R.), 2977-2985;
temporary loans (G. W. P.), 574-575
medical" d'epartment, physicians' fees (T. A. B.), 742
mortuary benefits, for agency directors (T. A. B.)', 773-774; (provisions
of TOOS), 776-777; (proTisions of 1904); (T. A. B.)i 777-778
nepotism; interrelationsliip of officers (J. C. MeC), 63-; relationsliip
of J. A. McCall to A. McClave and J. A. "Horan (J. A. McC), 1153-
1155 ; relatives of J. A. McCall in building owned by N. Y. Life (E.
D. K.), 1172-1173.
new business :
advantage to, of deferred dividends (R. W. W.), 1116-1117, 1123; ad-
vantages of (R. W. W.), 1120'1123) ; borrowing from surplus to
pay for (R. W. W.), 1118; expenses of (R. W. W.), 1119-1122
noTT'Iedger accounts and transactions; non-ledger assets (B. D. R.), 254-
259-; non-1'edger assets (M. M. aid G. W. P.), 2892-2895, f J. A. McC),
2955; payment of $59,810.79' to A. Hamilton by Morgan & Co. (M. M.
M.), 2856, (G. W. P.), 2900; nonledger payments to Hamilton (J. C.
JfcCi), 3663'-3065; see also under legisla-tive expenses; clieck of $40,000
from Kidder, Peabody & Co. (M. M. M.), 2864-2S65; (B. D. R.), 2973-
2977; payment to Kidder, Peabody & Co; of $930,000 in Mex. Central
Railway bonds transaction (M. M.), 2916-2917; loan of securities to
Central Bank (E". D. R.), 2977-2981, 2984; securities not in list fur-
nished Investigating Committee (G. W. P.J, 2892; non-appeaTance in
record of syndicate participations, U. S. Steel (J. A. McC), 2949-2950,
2957-2958; see also under legislative expenses:— campaign contribu-
tions
Nylic :
nature of (B. D. R.), 352-353; explanation of system (T. A. B.), 748-
762, 763-707; degrees of (T. A. B.), 749-750; book relating to system
of, 1895 (ex. 143),. 749
funds of, accounts of (T. A. B.), 779, (G. W. P.), 2926-2928; amount
charged to in 1904 (T. A. B.), 783; payments to, charged under re-
newal commissions (T. A. B.), 706; investment of, by G. W. Perkins
(G. W. P.), 2924-2931; article 5 of agreement giving trustees power
to invest, 2930-2931; losses in investments of (G. W. P.), 2931; in-
vestments of $40,193.60 of, in Steel Common Stock at 19% (G. W.
P.), 2925-2926; relation of $40,193.60 to total amount of (G. W. P.),
2922-2923; total amount of (G. W. P.), 2922-2923- trustees of (G. W.
P.), 2924
payment to, of $40,000 from profits of loan to Kidder, Peabody & Co.
(G. W. P.), 286-1-2865; connection of, with transaction with Kidder,
Peabody & Co. in Mexican Central Railway Bonds transaction (G.
W. P;), 2911-2012, 2920-2021; participation of, in Mexican Central
Railway bonds (G. W. P.), 2931; payments to, of profits from Mexi-
can bonds (J. A. McC), 2946-2947
aumber of members of (T. A. B.), 766-707; persons, excluded from
(T. A. B.), 761; services and compensations of members (T. A. BX
749-762
614 Index-^-Witnesses and Exhibits.
New York Life Ins. Co. — Contimied.
modiflcatious of system of, in 1899 (T. A. B.), 758-762; in 1901 (T. A.
B.), 762-764; in 1903 and 1905 (T. A. B.), 764-766*
prospectus of, 1899 and 1901 (T. A. B.), 762
post-mortem benefits (resolution of, Nov. 13, 1895) (T. A, B.), 757-758
participation of, in Jap. syn. (M. M. M.), 717
■advantages to, of G. W. Peflsins' connection witli J. P. Morgan & Co.
(G. W. P.), 2933; see also Nylic for agency directors
Nylie for agency directors; nature and working of (T. A. B.), 784; num-
ber of beneficiaries of (T. A. B.), 778-779; (Dec. 31, 1904) (T. A. B.),
783; bonuses of (T. A. B.), 769-770; provisions for expense ratio (T. A.
B.), 774-775
fund for (T. A. B.), 767-770; provisions for (T. A. B.), 770-772; a'ccounts
of (T. A. B.), 780; amount deposited from salaries (1902) (T. A. B.),
781 ; amount of money paid by N. Y. Life to, in 1902 (T. A. B.), 781;
amount of money paid by N. Y. Life to (G. W. P.), 812-815; expendi-
ture for, -in 1904 (ex. 506), 3001; amount of, in 1904 (T. A. B.), 781;
total of, to July 1st, 1905 (T. A. B.), 783; trustees-of (T. A. B.), TeS-
769; connection of, with Fansliawe in New Orleans R. B. bonds
transaction (G. W. P.), 952-958; connection of G. W. Perkins with
(G. W. P.), 963-965
modification of system, 1905 (T. A. B.), 778
mortuary benefits (T. A. B.), 773-774, 776-777
prospectus, for 1902 (ex. 146), 767; for 1903 (ex. 147), 775; for 1904 (ex.
148), 775-776; for 1905 (ex. 149), 778
officers: number and duties' of (J. C. McC), 43-44, 78-79; commissions
and bonuses of (T. A. B.), 992-993; (G. W. P.), 2867-2872; memorandum
of insurance on liTes of, and commissions or allowances received by
(exs. 976A, B, 0, D, B, F, G), 4754; policies of G. W. P., on which he
received no commissions (G. W. P.), 2871-2878; personal connection of,
with syndicate operations of N. Y. Life (J. C), 242-245; (E. D. R.),
252-258; (U. S. Steel) (J. A. McC), 2949; knowledge of, of transaction
with Kidder, Peabody & Co. in Mexican Central Railway bonds (G.
W. P.), 2917
organization and government:
original incorporation of, as Nautilus Co. (J. C. McC), 49; charter and
declaration (ex. 4), 44-49
payments: on executive order (B. D. R.), 541-543; (G. W. P.), 589; (J.
A. McC), 610; methods of cheque payments (G. W. P.), 588-589;
Nylics and non-Nylics (T. A. B.), 766-767
policies:
issuance, of (J. C. McC), 44; classification of (R. W. W.), 4744; results
as to non-forfeiting as compared with forfeiting class (R. W. W.),
4745; comparison of actual and illustrated results of, by M. M. T).',
4775; number of tontine policies (J. A. McC), 1095; reports uf ton-
tines to German government (J. A. McC), 1096-1099; (ex. 961), 4749;
estimated and actual results on (ex._ 954-956, 962-964), 4741; number
of, held by G. W. Perkins (G. W. p1), 2867.
Index — Witnesses and Exhibits. 615
New York Life Ins. Co. — Continued,
policyholders:
participation of, in elections (J. C. McC), 59, 63-65, 69-72; publicity of
lists of (J. O. McC), 76-77; -voting right of (J. C. McC), 59; non-
discrimination in favor of German and Spanish soldiers (J. A. McC),
1105-1106; interests of affected by new business (R. W. W.), 1116,
1118-1124; gains to, from Hamilton's services (A. H.), 4432; number
of, surviving 10, 15, and 20 year periods, as compared with Equit.
and Mut. Life (ex. 960), 4749
premiums: proportion of, in U. S. and abroad (T. A. B.), 790-791
proxies:
number and form of (J. C McC), 59, 65, 71, 72; practices regarding
(J. C McC), 69-74; proportion of, at elections (J. C McC), 63-64;
proposed committee for (J. C McC), 75; revocation of (J. 0. McC), 63
real estate:
cost and income from foreign buildings (B. I. D.), Berlin (ex. 239),
1166-1167; Vienna (ex. 240), 1167-1168; Amsterdam (ex. 241), 1168;
Belgrade (ex. 242), 1168-1169; Buda-Pesth (ex. 243), 1169; from home
and branch office buildings (E. D. R.); N. T. offices (ex. 244, 245),
1169-1171, 1181; other N. Y. buildings (ex. 246, 247), 1171-1176; Kansas
City (ex. 248), 1176-1177; Omaha (ex. 249), 1177-1178; Minneapolis
(ex. 250), 1178-1179; St. Paul, 1179; Montreal (ex. 251), 1179; general,
1180; comparison between 1896 and 1904 (ex. 252), 1181; necessity for
large expenditures in (E. I. D.), 1076-1077
home office annex property, purchase price of (0. D. W.), 549-550;
history of acquisition and connection of Hamilton with (C D. W.),
550-551; (J. A. McC), 612-623; Bennett mortgage (J. A. McC), 623-
646; resolutions of finance com. in re printing-house property
(J. A. McC), 619; value of printing house property (J. A. McC),
652- diagram of printing house property (ex. 93), 616-619, 620;
connection of Golding with purchase and payments to him (E.
■ D R) 542-543, 545-548; (C D. W.), 549; (J. A. McC), 619, 621-622
rebates; causes of (G. W. P.), 2872; general discussion of (^: W- /■';
2873-2877; efforts of N. Y. Life to minimize (G. W. P.\ 2876; effect
on, of Nylic system (J. A. McC), 1087
rebates on taxes (J. J. M.), 4753 ., 4. * n „r,
reports and relations to insurance departments; to ins. dept. of Conn
iqn4 fT A B) 744-745; i;rofits from sale of securities, m reports to
different insurance departments (1901) (G. W. P.), 947-952; see
also examinations
reports to N. Y. Dept.:
form in, of 1902, of U. S. Steel bond transaction with N. Y. Sec.
Sr Trust Co (B. D. K.), 341-342; non-appearance of Navigation
fyndicate transaction in report of 1903 (ED. RJ ^52; no,.ap-
nearance in, of New Orleans bonds transactions (E. D. K), 377,
m M M) 722; appearance of $75,000 payment to Hamilton in
report of 1903 (J. A. McC), 643-644; appearance in, of profits from
NY Sec & Trust Co. stock (G. W. P.), 716-717; sale and repur-
Lle of $800,000 between Dec. 31 and Jan. 2 (G. W. P.). 585-583
616 Index — Witnesses and Exhibits.
New York Life Ins. Co. — Continued.
examination and readmission by Prussian dept. in 1899 (E. D. E.),
265; refusal by Prussian dept. to permit investments in stock and
subsequent by-law of N. Y. Life (E.. D. E.), 265-267,, 281, 285;> sale
of bonds at end of year to conform to Prussian requirements
(E. T>. E.), 341; reports of tontines to German gpvernment (J. A.
MoC), 1095-1099; (E. W. W.), 4746
reports, to. policy bolders;, distribution of (J. C. McC), 77
reserve fictitious character of legal (E. W. W.),, 1118-1123; surplus,
called reserve for otber contingencies (B. W. W.), 1131
salaries: of officers (1876) (J. C. McC.) 13, (1905), 78-79, (1877-1905)
213-214; of cashier (T. M. B.), 296S; of Hflime Office; not executive,
Sept., 1905 (ex. 506), 3001; of managers, agency directors, etc. (T. A.
B.), (1904), 784
sub-average insurance, see sub-standard
subsidiary companies, see bank dealings and trust co; relations
sub-standard insurance, practices regarding (J. A. McC), 1090-1093;
method of treating under-average lives (J. A. McC), 1091-1093; statis-
tics concerning business from under-average lives {S. A. MeC), 1091-
1092; difference in premiums on, fi'om regular policies (J. A. McC),
1108-1109; lien against policy (E. W. W.), 1111-1112; sub-standaia
risks (E. W. W.), 4747
surplus: and reserves in tontine system X J. A. McC), 1099-1105; increase
in addition to, in returns to Prussian government (J. A. McC), 1095-
1099; (E. W-. W.), 1109-1110; Prussian report showing apportionment
of (ex. 961), 4749; treatment of (E. W..W.), 1110-1111; borrowing
from, for new business (E. W. W.), 1118; distribution of (E. W. W.),
1125'-1130; difference in, in 1901 and 1903 (E. W. W.), 1127-1129; in-
crease of, in 1904 (E. W. W.), 1129-1130; called " reserve for other con-
tingencies" (E. W. W.), 1131; basis used in estimating (E. W. W.),
4747; difference in estimated and actual share of , on deferred dividend
policies (E. W. W.), 4741; on tontine policies (ex. 954, 955, 956),. 4741
syndicate agreements (J. C), 220-221; (E. D. E.), 259-289
syndicate operations and participations; general (J. C), 219-249; (E.
D. E.), 312-313; distinction between stocks and bonds (E. D. E.), 323-
324; return of bonds on call of syndicate managers after purchase
(P. H. S.), 385-386; balance of syndicate profits, Dec. 31, 1902, (M. M.
M.), 2862; syndicate participations of Nylic (E. D. E.)j, 351-353; in
name of N. Y. Security & Trust Co. (M. M.), 2846-2849
specific syndicate participations; Atlantic Coast Line, Louisville and
Nashville purchase money syndicate (J. C), 226-237; (E. D. E.),
263-264; Carnegie bonds (E. D. E.), 339'-340; purchase of Chicago
& Alton refunding bonds (J. C), 248-249, (E. D., E..), 325, 342-348;
Chicago, Burlington & Quincy purchase (J. C), 249-250; Chicago &
Northwestern stock (Dec.) 1901) (E. D. E.), 2991-300, 301-310; Chi-
cago, Milwaukee & St. Paul, 1900-1902 (E. D. E.), 294-309; Con-
tinental Coal (E. D. E.), 255, 259-200; (stock held 1899) (E. D. E.),
267; Erie Preferred (E. D. E.), 257-258, 267, 310-313; Evansville &
Index — Witnesses and Exhibits. 617
New York Life Ins. Co.— Continued.
Teppe Haute (E. D. R.), 255-258; Japanese bond -syndicate (J. C),
220-224; Kanawha and Hocking (E. D. R.), 259-2G0; Mackay-Nesbitt
(E. D. R.), 255-258; Memphis and Gharlestown Railroad (E. D. R.),
254 ; Navigation Syndicate (J. C), 242-247, (W. L..), 252, (E. D. R.),
848-352; (loss of $80,000), 369-370; (fSOO^fiOO transaction), 380-381,
(G. W. P.), 585-588, 981-932; New Orleans R. R. bonds and syndicate
(N. Y. Security & Trust Co.) (E. D. R.), 369-380, (agreement with
W. S. Fanshawe & Go.) (E. D. R.), 375-376, (M. M. M.), 718-723;
New York Central Hudson River R. R. Co. debenture 4 per cent.
bonds (J. C), 234; N. Y. Security & Trust Co. syndicate (E. D. R.),
538-540; N. Y. Security & Trust Co., and Continental Trust Co.,
merger (M. M. M.), 716, 718-723; Northern Pacific-Great Northern
bonds (J. C), 241-242; Northwest Preferred (E. D. R.), 281-289;
Penn. R. R. convertibles syndicate (J. C), 248; Oregon Short Line
4:'s (J. C), 222-223; St. Paul preferred (E. D. R.), 281-289; South-
ern Railway (E. D. R.), 254-255; Toronto, Hamilton & Buffalo (B.
D. R.), 327, 333, 335, 338, (F. H. S.), 382-386; Union Pacific (E. D.
R.), -255-256, 267, 319, 320, 322; United Collieries (E. D. R.), 288-289;
(E. D. R.), 542; U. .S. Steel (J. C), 248, (B. D. R.), 286-288, 338-342;
U. S. Steel loss (E. .DR.), 538; U. S. Steel, through N. Y. Security
& Trust Co. (G. W. P.), 2878-2895, 2907-2909, (J. A. McC), 2949-2950,
2957-2958 ; total amount of profits in transaction in U. S. Steel,
through N. Y. Sec. & Trust Co. (G. W. P.), 2897; file of U. S. Steel
Syndicate (M. M. M.), (exs. 460-471), 2854-2859; non-existence of
guarantee concerning in files of N. Y. Trust Co. (W. V. K.), 2934;
Wabash Pittsburg Terminal (J. C), 222; Wisconsin Central (E. D.
R.) 258
taxation :
amount paid for (A. H.), 4427; amount saved on, by Hamilton (A. H.),
4432; amount paid for from 1894-1905 (ex. 977), 4754 ; memorandum
of, from records of State Comptroller (ex. 978), 4754; litigation con-
cerning 1902-1904 (J. A. McC), 1143-1148; rebate to Co. for winning
suit (J. A. MeC), 1145-1148 •
treasurer's office, adjustment of accounts with N. Y. Sec. & Trust Co.
(G. W. P.), 2891; authority of treasurer in opening vault (T. M. B.),
2967
trust Co. relations; N. Y. Security & Trust Co.; general (E. D. R.) 264-
289; change in policy regarding (E. D. R.), 264-2G5; by-law (27 or 32)
regarding, 265-267; sale of stock (E. D. R.), 267-273; purchasing syndi-
cate for (agreement and subscribers, exs. 41 and 42), ,269-270; (separate
agreement for option on stock, ex. 43), 270-273; relations of trustees
of Trust Co. to N. Y. Life (B. D. R.), 273; merger of N. Y. Security
& Trust Co. with Continental Trust Co. (E. D. R.), 273-276; -change
of name to N. Y. Trust Co. (E. D. R.), 276; officers of N. Y. Life also
officers of N. Y. Trust Co. (E. D. R.), 276-277; bank balances of N. Y.
Life with (1900) (E. D. R.), 277-278; (1901), 278-280; (1902), 280-289-
618 Index — Witnesses dmd Exhibits.
New York Life Ins. Oo. — Continued.
353-354; controlling interest held in N. Y. Sec. & Trust Co. (G. W. P.),
2881
transactions, in Chicago, Burlington and Quincy (E. D. R.), 248-249;
reason for New Orleans bonds and syndicate transactions at time
of merger (B. D. K.), 369-380; (G. W. P.), 718-726;"" transactions in
Northwest Preferred and St. Louis Preferred (E. D. R.), 281-283;
transactions in U. S. Steel and Fort Worth, Texas (E. D. R.), 286-
288, 341; in U. S. Steel syndicate with N. Y. Sec. & Trust Co. (M.
M. M.), 2846-2849; (G. W. P.), 2878-2896, 2907-2909; (J. A. McO.),
2949-2950, 2958; deposit with N. Y. Security & Trust Co. for par-
ticipation in U. S. Steel syndicate (G. W. P.), 2847-2848; agreement
for 75 per cent, profits in U. S. Steel syndicate (G. W. P.), 2878-
2880, 2881-2883, 2886; guarantee by N. Y. Security & Trust Co., in-
suring against loss in U. S. Steel (G. W. P.), 2879, 2908-2909; agree-
ment to continue deposits with N. Y. Security & Trust Go. during
transactions in U. S. Steel (G. W. P.), 2881; amount of deposits at
time of transaction (G. W. P.),. 2908-2909; date of receipt of. $43,000
U. S. Steel bonds from N. Y. Security & Trust Co. (G. W. P.), 2892-
2893; see also N. Y. Sec. & Trust Co.
Trustees, Board of, report of special committee of (Oct. 18, 1905), on
publipity in opposing legislation (ex. 349), 2167-2168; policy of, re-
garding accountability of A. Hamilton (J. A. McC), 2158-2159
vaults, persons having access to (B. D. R.), 2978
New York Security and Trust Co. (N. Y. Trust) Co.:
history of relations of, with N. Y.'Life (E. D. R.), 264-289, 353-355;
cbntrolUng interest held in, by N. Y. Life (G. W. P.), 2881; bank bal-
ances of, with N. Y. Life (1900), 277-278; (1901), 277-280; (1902), 280"
289, 353-354; (1902-1905) (E. D. R.), 353-365; reasons for deposits with,
of N. Y. Life (E. D. R.), 353-355, 356-365; (D. P. IC), 355-356; rate oi
interest paid to N. Y. Life (1904-1905) (E. D. R.), 368; loans of, on col-
lateral (on stock) (E. D. R. and D. P. K.), 353-357; interest paid by,
on loans of N. Y. Life (B. D. R.), 354, 355, 356, 358, 363-364; securities.
for loans by N. Y. Life (G. W. P.), 959-960; to Mr. Fanshawe, Jan.,
1904 (G. W. P.), 574-575; relation of, to N. Y. Life in Fanshawe loan
transaction (G. W. P.), 952-954, 956; to Provident Savings Life, in-
terest on (E. W. S.), 3867; and reduction of (E. W. S.), 3866-3868
merger of, with Continental Trust Co. (E. D. R.), 273-276; capital of,
at time of merger (E. D. R.), 273-274; increase" of stock, and trans-
actions in with N. Y. Life at time of merger (B. D. R.), 273-276,
(M. M. M.), 716t717, 718-723; connection of Messrs. Fairchild, Me-
Oall & Perkins with increase (B. D. R.), 362-363; examination oi
assets of, at time of merger (1904) (E. D. R.), 369; taking over of
New Orleans bonds and syndicate by N. Y. Life at time of merger
(E. D. R.), 369-380; (G. W. P.), 718-726, 952, 954-956; (W. S. F.), 2986-
2991; connection of Fanshawe & Co. with New Orleans transnction
(E. D. B.), 375-376; (G. W. P.), 721-726, 952, 955-856; (W. S. F.), 2986
2994
Index — Witnesses and Exhibits. 619
New York Security and Trust Co. (N. Y. Trust) Co.— Continued:
notes of A. Hamilton and E. E. MeCall taken up by (exs. 485, 486),
2898; payment by, of $59,310.79 to A. Hamilton, for N. Y. Life
(G. W. P.), 28S6-2899; payments to Hamilton and others for N. Y.
Life (J. C. K.), 2&95-300O; payment to Hamilton of $16,000, on ac-
count of Union Savings Bank (exs. 554, 555) (W. V. K.), 3080-3081;
officers of, connected witli payments to Hamilton on account of
Union Savings Bank (J. C. K.), 3000; account of, with Union Sav-
ings Bank & Trust Co. (ex. 553), 30T8-3O82; payments to A. Hamil-
ton (ex. 556) (W. V. IC), 3082-3083; payment to, by J. P. IMorgan &
Co. of $15,969.16, for N. Y. Life (G. W. P.), 2896
syndicate transactions of; interest in, as per report of 1901 (G. W.
P.), 2894; participation in Atlantic Coast Line syndicate (G. W. P.),
2895; in Chicago, Burlington & Quincy stock (J. C), 249; in Chicago
& Northwestern & St. Paul (E. D. R.), 281-289; in Northern Pacific-
Great Northern (G. W. P.), 693; in Savannah, Florida & Western 5'3
(G. W. P.), 665-671
participation of, in U. S. Steel syndicate", through N. Y. Life (M. M.
M.), 2846-2849, (G. W. P.), 2878-2895, 29O7-290Q, (J. A. McC), 2949-
2950, 2968; allotment to, of $3,000,000 in U. S. Steel syndicate (G.
W. P.), 2878, 2879-2881; guarantee of, to N. Y. Life insuring it
against loss in participation in V. S. Steel (G. W. P.), 2879; arrange-
ment of, with G. W. Perkins for registrarship of $500,000,000 of
pref. stock in U. S. Steel Corporation (G. W. P.), 2879-2881; agree-
ment for 75 per cent, of profits to N. Y. Life in U. S. Steel syndi-
cate (G. W. P.), 2878, 2880, 2885; allotment by, to G. W. Perkins
of $50,000 for friend in Chicago (G. W. P.), 2880, 2886; allotment
by, to G. W. Perkins of $50,000 for "other people" ,(G. W. P.),
2882; allotment to A. G. Paine of $25,000 (G. W. P.), 2880-2882;
amount of cash paid by, in U. S. Steel Syndicate participation (G.
W. P.), 2895-2896; syndicate agreement of, with U. S. Steel Cor-
poration (G. W. P.), 2908; amount of deposits carried by N. Y.
Life in, at time of transaction in U. S. Steel (G. W. P.), 2908-2909
correspondence in re U. S. Steel Syndicate: letter to N. Y. Life,
April 27, 1903 (ex. 457), 2920-2921; letter from L. C. Root to E. D.
Randolph, Feb. 19, 1902 (ex. 460), 2855, (G. W. P.), 2885-2886; letter
from L. C. Root to N. Y. Life, Feb. 27, 1902 (exhibit 461), 2855; letter
from L. C. Root to E. D. Randolph, May 12, 1902 (ex. 462), 2855;
letter from 2nd assistant treasurer to E. D. Randolph, Aug. 2, 1902
(ex. 463), 2856; letter from 2nd assistant treasurer to E. D. Ran-
dolph, October 1st, 1902 (ex. 464), 2856; account annexed to exhibit
464 (ex. 465), 2856; letter from Mr. Webb, Jr., to Mr. Randolph (ex.
466), 2857; letter from Mr. Webb to Mr. Randolph, Sept. 16, 1903
(ex. 467), 2857; letter from Mr. Webb to Mr. Randolph, Nov. 4, 1903
(ex. 468), 2857-2858; letter from Mr. Webb (ex. 469), 2858; letter
from Mr. King to Mr. Randolph, May 6, 1904 (ex. 470), 2859; letter
from Mr. King to N. Y. Life, May 17, 1904 (ex. 471), 2859; letter
. to Mr. Keeler, Aug. 14, 1902 (ex. 4m), 2910; letter from Mr. Ship-
man, April 28, 1902 (ex. 491), 2910
620 Index — Witnesses and Exhibits.
N. Y. state National Bank of Albany, account with, of Andrew Hamilton
(ex. 81 and W. G. N.), 609
N. Y. Stock Co., relations of, with Mut. Life (R. H. McC), 1289-1290
N. Y. Stock Exchange face bonds, participation In, Ijy TOash. Life (ex.
781), 4154
N. Y. Sup't of Banks, report of, page 500, embodying report of N. Y. Sec.
& Tr^st Co. (G. W. P.), 2895
New York Trust Co.: see New York Security & Trust Co.
Nichols, J. A.:
letter from, to C. M. Depew, Dec. 19, 1896 (ex. 410 and S. S. McC), 2504-
2505, (C. M. D.), 2509, (J. A. N.), 2558-2560; letter to 0. M. Bepew,
Dec. .24, 1900 in re " rantankerous friend " (ex. 411) (S. S. McC), 2505-
2506; (C. M. D.), 2509, 2510, (J. A. N.), 2558-2560; employment of W. S.
Manning by (W. S. M.), 2808-2810
payment's to from Equit.:
in connection with Browning in 1900 (ex. 390 and S. S. MeC), 2489;
In J. B. Bride matter, Dec. 28, 1901 (ex. 391 and S. S. McC.\
2489-2490; in Blivan matter, Dec. 26, 1903 (ex. 392), 2490; in'Pear-
«on matter, Dec. 20, 1904 (S. S. MeC), 2490; 8 vouchers to, from
Equit.,- 18S5, 1896, 1697, 1898, 1899, 1901, 1903, 1904 (ex. 402 -to 409,
and S. S. McC), 2504
connection of, with Union Savings Bank & Trust Co. debentures and
N. Y. Life (J. C K.), 2997-3000; connection of with Union Savings
Bank account (W. V. K.), 3081
testimony of, 2553-2568; on history of his connection, with insurance,
2554; on his services to Equit., 1904, 2554-2556; on payments to him
by Equit., 1885-1890 (ex. 412, 413, 414), 2557-2559; on his connection
with Equit., 2489-2490; on Manning movement against insurance
companies and payments to him, 2554-2556, 2559-2568; on letters to
Senator Depew regarding Manning, 2559-2568; on insurance inves-
tigation of 1877, 2561; on payments to him from N. Y. Life, 2565-
2566; on his retainer from Mut. Life, 2563-2565; on his connection
with Mut. Life, 2567-2568
Non-forfeiture law; in Mass. (J. A. McC), In Mass., 1081; in N. Y. (J. A.
McC), 1081
Norris, O. A.:
connection of, with Mut. Life (W. R. .G.), 1357; testimony of, 1560-1566;
on whereabouts of Mr. Fields (C. A. N.), 1560-1561
North American Life Ins. Co.:
statement of, 4858; history and administration of, 4858; deferred divi-
dends of, 4860; method of, of computing dividends, 4860; documents
furnished by, 4858; insurance of in force, Dec. 31, 1904, 4859; invest-
ments of, 4859; loans of, on collateral, 4859; political contributions of,
4858; syndicate participations of, 4859
North American Trust Co.:
amount desposited with, by Life Association (H. P. T.), 4054; bank ac-
count of Life Association with (H. P. T.), 4062
Northampton and Caiilisle tables: character of (J. A. McC), 1080-1081
Index — Witnesses and Exhibits. 621
Novtliern Pacific-Oreat Northern Collateral Trust Bonds:
participation in, by N. Y. Life (J. C), 249-250; purchase of, by Mut. Life
from J. P. Morgan & Oo. (F. C), 416-418; participation of Mut. Life in
(F. C), 450-451
Northern Pacific, prior lien 4's: purchase and sale of, by N. Y. Life (Dec.
31, 1902, Feb. 16. 1903) (G. W. P.), 931, 933, 938, 941-944
Nortliern Pacific Railway Co.: connection of, with C. B. & Q. Railway
stoclj (H. R. W.), 858-859
Northern Pacific Syndicate: participation of Equit. Life in (H. R. W.),
832-833; participation of Mut. Life in (H. R. W.), 794-795
Northwestern Life Insurance Company of Chicago:
acquisition of business of, by Mut. Res. (G. D. E.), 3087-3099; com-
mission paid by Mut. Res. for acquiring bushiess of (G. D. E.), mS9:
amount received by receiver in transfer in (G. D. E.), 3090-3001;
assets of, secured by stock of National Life (G. D. E.), 3091, 3098.
:3097; advantage to Mut. Res., from expense loading on policies of
(G. D. E.), 3095-3099
Northwestern Mutual Life Ins. Co. of Milwaukee: statement of, 4831;
history and administration of, 4831; commissions of, 4837
dividends: reduction of (B. McC), ]810; reasons for preference of annual
to deferred (E. MoC), 1828-1829; method of, of computing deferred
dividends, 4838; comparison of Computation with other companies
(E. AIc-C), 1826-1827; system of accumulations on deferred dividends
(E. MeC), 1836; hypothetical accumulations and legal liabilities (E.
McC), 1794-1795; attitude toward estimates (E. McC), 1797-1798;
statement of manner in which individual accounts are kept with de-
ferred dividend policyholders (ex. 1011), 4769; statement of specimen
card, showing account of deferred dividend policy (ex. 1012), 4770
. documents furnished by, 4831
expfab'es: ratio of, to loading (W. A. M.), 3603; insurance of, in force,
4S37; rates of interest on mean assets (P. C), 469; investments of,
4835; legal expenses of, 4832; charges on loans of (F. C), 469-470;
rebates on taxes of (J. J. M.l, 4541; mode of, of apportioning sur-
plus, 4338; statement of estimated surplus and actual results on
policies issued by (ex. 967), 4751; syndicate participations of, 4837.
Nylic, see under N. Y. Life
O
O'Brien, E. P.: voucher to, from Equit. Life, June 1, 1903 (S. S. MoC),
2493
Odell, Hamilton:
opinion of, in suit brought by Knickerbocker Investment Co. against
voting trustees of Bankers' Life Ins. Co. stock (H. P. T.), 4098-4104
Odell, Gov. Benjamin B., Jr.:
suit of against Mercantile Trust Co.: Harriman's conversation with
Hyde concerning settlement of (.L H. H.), 2326; connection of E. H.
Harriman with settlement of (E. H. H.), 2350-2^55; interviews of
Odell with Hyde, Colby, and Harriman regarding settlement of
(J. H. H.), 2373-2374, (B. B. O.), 2394-2397
connection of, with Hyde's ambassadorial project (E. H. H.), 2360
64
622 Index — Wiinesses and Exhibits.
Odell, Gov. Benjamin K., Jr. — Continued:
testimony of, 2390-2403; on introduction of bill regarding charter of
Mercantile Ti-ust Co. and his attitude towards, 2391^392, 2397, 2400-
2401; on his claim against Mercantile Trust Co. and sale of U. S.
Shipbuilding bonds, 2392.-2393; on his interviews prior to time of
bringing suit, 2r;93; on interviews and steps leading up to settlement
of his claim, 2394-2397; on reasons for dropping legislation against
Mercantile Trust Co., 2394-2899; on suggestion by Hyde of retaliatory
measures,- 2396-2397; denial by, of threats of retaliatory measures to
procure settlement of claim, 2393-2S99; on his Interview with Jerome
concerning action against Mercantile Trust Co., 2400; on his inter-
view with C. M. Schwab regarding settlement of his claims, 2402; on
settlement of other suits with Mercantile Trust Co., 2399-2402; on
letter written by him at request of Mr. Mclntyre regarding ambas-
sadorial project of Mr. Hyde, 2397-2398; on his linowledge of cam-
paign contributions from insurance companies, 2397-2398
Olds, S. S.:
payment to, by Equit. Life, June 2, 1899 (ex. 399), 2491-2402; voucher
to. from Equit., May 17, 1901 (S. S. McC), 2493; voucher to, from Mut.
Life (K. A. McC), 1473; connection of, with Mut. Life (R. A. McC),
1473, 1475-1476
Olypbant, Robert:
relations of, with Mut. Life (C A. P.), 1296-1298; responsibility of, in
campaign funds of 1904 (Mut. Life) (W. R. G.), 1358-1356; ehecl£S
drawn by, on Mut. (R. A. McC), 1452-1453; voucher of Jan. 28, 1904
(ex. 268), 1341
testimony of, 1327-1886; on checliS to him from Mut. Life, Jan., 1904,
1329-3380; Aug., 1904, 1330; on campaign funds of Mut. Life, 1838-
1336; on confidential legal fuad of Mut. Life, 1328-1336
Onderdoulv: policy No. 48628, terms of exchange on (D. S. D.), 3506-8511,
3512-8513
Orear, L. H.: examiner of Mut. Res. for Dept. of Missouri (G. D. E.),
3272-3273
Oregon Short Line:
participation of Mut. Life in (F. C), 418-420, (ex. 50), 438, 440, (A. D.
J.), 557; syndicate agreement (Mut. Life)' (ex. 54), 420; statement of
joint account in, of N. Y. Life (ex. 120 and G. W. P.), 691, 692
Overriding Commissions: paid by Mut. Res. to M. D. Mos3 (G. D. E.),
3227-3228, 3233
Owen policy: Prov. Savings Life, No. 25180 (H. M.), 3931-39S3, 3988
P
Pacific Mutual Life of San Francisco:
industrial business of, acquired by Metr. Life, 2191-21P5
Paine, Augustus G.:
connection of, with N. Y. Life (G. W. P.), 2882; allotment to of $25,000
in N. Y. Security & Trust Co.'s participation in U. S. Steel Corpora-
tion (G. W. P.), 2880, 2882; on participations in U. S. Steel, 4752
testimony of, on his syndicate participations, 333-335
Index — Witnesses and Exhibits. 623
Palmer, Frederick: treasurer of Mutual (K. A. G.), 30
Palmer, George W.: testimony of, 2116, 2123-2125; on payments of rebates
by Vermllye and Co., 2123-2125
Parker Building: transactions of Metr. Life concerning, 2139-2142
Parsons: payments to, from Equit. in California examination (S. S. McO.),
24S6-24m
Patterson, J. Thompson:
libel suit of, against Mijt. Ees. (G. D. E.), 3194-3197; deposition of I.
Vanderpoel in case of Mut. Ees. against (ex. 989), 4749
Payne, L. F. (former superintendent of Insurance of N. Y.):
direction of, to include unproved death losses in reported liabilities (G.
D. E.), 2496; attitude of, toward increased assessment for age in Mut.
Ees. (G. D. E.), 3075-3076; quotation from report of, of 1898, on Stipu-
lated Premium Law, 4405; letter from, to Bankers' Life (ex. 861), 4457,
attitude of, towards gain and loss exhibit (H. D. A.), 4478
testimony of. 4492, 4500; on his appointment of examiners, 4493; on his
reliance on chief examiner, 4493; on examinations dm-ing his admin-
istration, 4494; on limitation of examination to one of solvency of
company, 4498; on hi^ acquaintance with position of A. C. Fields,
4500; on his acquaintance with position of A. Hamilton, 4501; on
attitude of Ins. Dept. toward charges of mismanagement of insurance
companies, 4504; on has opinion, regarding character of Burnham and
Wells, 4505-4513; on his connection with Stipulated Premium Law,
4514; on counsel retained by him, 4515; on his attitude toward attor-
ney-general's office, 4515; toward admission of Prussian Ins. Com-
panies, 4515; on connection of McCurdy with admission of Prussian
Companies, 4517; on his examination of Mut. Life, 4496; on effort of
Western departments to examine Mut. Life, 4497; on his examination
of Mut Res. and Sec. Mut. in 1898, 4496; of Mut. Ees., in 1899, 4504;
on appearance of leasehold assets in Mut. Res. in examiners' report,
4508; denial by, of acceptance of payment in Mut. Ees. case, 4519;
on examination of N. Y. Life, 4501; on examination of Pro v. Savings
Life, 4495
Penn. Coal Purchase Syndicate:
participation of Equit. Life in (H. R. W.), 798-800; (exs. 166 and 167),
839-841; (J. H. H.), 2237-2238; (C. M. D.), 2417-2418; participation
In by Alexander (G. H. S.), 2548; by Gen. Louis Fitzgerald (II. E.
W.), 799-800; (G. H. S.), 2548; by Hartley (G. H. S.), 2548; by
G. H. 'Squire (G. H. S.), 2548; by W. A. Wheelock (G. H. S.), 2.J48
Penn. Mutual Life Ins. Co. of Philadelphia :
statement of, 4810-4821; history and administration of, 4811; bank
balances of, 4S16 ; campaign contributions of, 4812 ; commissions and
advances to agents (W. H. K.), 181; dividends, proportion uf annual,
deferred and non-participating, 4817 ; documents furnished by, 4811 ;
estimated surplus and actual results (ex. 968), 4751, Ex. p. 1216-1217
election of directors or trustees (W. H. IC), 174-181; participation of
policyholders in (W. H. K.), 174-181; election of, 1886 (VV. H. K.),
178-181
exhibits, 746, 775
G24 Index — Witnesses and Exhibits.
Pemi. MutualLife Ins. Co. of Philadelphia. — Conl'inued:
investments, 4816; legal expenses, 4816; organization (W. H. K.), 174
policyhiolders: publicity of list of (W. H. K.), 178-1T9; number of, in
N. Y. (W. H. K.), ISO
proxies: practices regarding (W. H. K.), 175-176
surplus, amount of (exs. 34 and 35), 175, 176; syndicate participations,
4816; minutes of meeting (abstract of, read by Mr. McKeen), 4768
Penn. R. R. :_ participation of, in L. I. Refunding 4's (G. W. P.), 686-690
Penn. R. R. 3% convertible bonds syndicate :
participation in; of Arbuckle Bros. (J. N. J.), 476; of F. Cromwell
(F. C), 425; of Equit. Life (H. R. W.), 892; of Henderson & Co.
(C. R. H.), 482; of IN^at. Life (ex. 50), 437-438; (0. R. H.), 481-482;
(A. D. J.), 557-558; of N. Y. Life (J. C), 348; of G. H. Squire, trustee
(H. G.), 904-911; item of profits from, in G. H. Squire trustee account
• (H. G.), 904; of Washington Life (ex. 782), 4156
People's Life, of Norwich, Conn. ; acquisition of, by Metr. Life, 2191-2195
Peoria & Northwest 1st 3% bonds : withdrawn by Equit. Life in Chicago
& Northwest syndicate (H. R. W.), 863-864
I'erkins, F. R., or E. R. : salaries of (E. D. R.) (1903-1904), 216
Perkins, G. W. (vice-president of N. Y. Life) :
connection of, with N. Y. Life (E. T>. R.), 216; list of policies held by,
in N. Y. Life (ex. 473), 2867-2868; relations of, with Nylic (E. D. R.),
352; connection of, with Kidder, Peabody & Co., loan transaction
(E. D. R.), 2974-2975; negotiations of, in New Orleans traction deal
(W. S. F.), 2086; connection of, with N. Y. Security & Trust Co.
(E. D. R.), 270-277; shares of, in N. Y. Security & Trust Co. (E. D.
R.), 362-363; responsibility of, in N. Y. Security & Trust Co. (E.
B. R.), 538; salaries of (1893-1902) (E. D. R.), 214-215
syndicate operations of :
sale of Chicago, St. Paul and Milwaukee stocks (E. D. R.), 297; of
Chicago and Northwest (E. D. R.), 308-309; of Navigation bonds
(E. D. R.), .351
testimony of: 565-592, 593-607, 662-668, 669-673, 677-695, 698-708, 709-
735, 745-747, 929-908; on original contract of engagement with N. Y.
Life, 565; on his relations with N. Y. Life, 566-567, 568; on financial
status of N. Y. Life to-day, 567 ; on his salaries, 568
on his relations and relations of N. Y. Life with J. P. Morgan & Co.,
568-573; check for $800,000 from J. P. Morgan & Co., 706-708, 713-
714; authorization of purchases from, 710-711; dealings as officer
of N. Y. Life with himself as member of Morgan firm, 934-935;
joint affiliation with N. Y. Life and J. P. Morgan & Co., 962-963 ;
arrangement with J. P. Morgan & Co., to pay Central National
Bank $15,999.15, for N. Y. Life, 2896; advantages to N. Y. Life
of his connection with J. P. Morgan & Co., 2933
on agency dept., 729-735, 736; on commissions and rebates, 2868-2878;
on his arrangement with agent Weil for commissions on his own
policies, 2869-2871 ; on custom in Insurance companies of paying
commissions to oflicers, on their own insurance, 2868-2869; on form
of agents' report accompanying application, in which rebates are
Index — Witnesses and Exhibits. 625
Perkinss Geo. W. — Continued:
pre-empted (ex. 474), 2871-2872; on policies of G. E. Tarbell, isstied
under general agency contracts; 2873 ; on payment to 6. E. Tarbell,
by Comptroller of N. Y. Life, of 7 per cent, commission on his
policies, 2873-2874 ; on his commission on policy in small CO.,
2873
on campaign contributions. Importance of restrictive legislation re-
garding, 589.590; responsibility of Finance Committee regarding,
589-500; cheques to Mr. Bliss (1896, 1900), 581-684, 588-589
en payments to A. Hamilton, of March 19, 1904, for $100,000 ,exs. 79,
80), 591, 593.594; of $59,310.79 in steel syndicate (exs. 478, 479, 480,
481, 482, 483, 484, 485, 4S6), 2897-2899, 2901-2903; conversation with
J. A. McCall regarding Hamilton payments, 2909-2910 ; on Hamilton's
connection with N. Y. Life's legislative department, 59a
on payments to Golding; of JIarch 22, 1904 ($13 000), and March 24,
1004 ($5,000), 591-592
on dealings of N. Y. Life with insurance department, 716-717; on
forms of reports to insurance departments, 947-952
on joint accounts of N. Y. Life ; discussion of, 576-581 ; in Atlantic
Coast Line Bonds, 702-703, 704; in Boston 3y2's 601-606, 727; in
Canadian Northern, 704; in Central Pac. Railway 1st Refunding
4's 699-700 (2d purchase), 700, 701, 702; in Chicago & Alton 4's,
681-663; in Erie convertible 4's, 697-698, 727; in Jersey City
4's, 697; in L. I. City 4yo's, 679-680; in L. I. Refunding 4's, 6S5-
690, 691 ; in New Orleans Terminal, 703 ; in N. Y. City 3y2's, 704 ; in
Missouri Pacific 5's, 680-681; in N. Y. City 3y2 bonds. 690-691; in
N. Y., Ontario & Western, 677-679; in Northern Pacific-Great North-
ern, 692-695; in Oregon Short Line, 691-692; in Pittsburg, Virginia
& Charleston, 690; in Queens County 4's, 683-685; in Sanitary Dis-
trict of Chicago Municipal 4%'s, 701-702; in Southern Pac. R. R.
1st mortgage refunding 4's, 675-696, 697; in U. S. of Mexico, 704;
in Wash. Terminal, 726 ; in Wladikakes Railway Co., 683 ; in Wash-
ington Terminal, 702-703 ; retirement of bonds, 698-699
on transaction of N. Y. Life with Kidder, Peabody & Co. in Mexican
Central Bonds transaction, 2911-2921; on his connection with Kid-
der, Peabody & Co., check for $40,000, 2864-2865, 2911-2918, 2918, 2919-
2920 ; on his request to Kidder, Peabody & Co. to send bonds to N. Y.
Life, 2914; on knowledge of officers of N. Y. Life of transaction
with Kidder, Peabody & Co., 2917; on his responsibility to Kidder.
Peabody & Co., 2920; on his justification in regard to N. Y. Life's
transaction with Kidder, Peabody & Co., 2933
on loans of N. Y. Life; to Fanshawe, 952-9.59; to Hamilton. 728; to
Harriman, 726-727; to Hegeman. 710-713; and rates of interest on,
944-945, 947-948; to N. Y. Security & Trust Co., of $1,000,000, 726-
727, 959-900; on temporary loans, 574-575
on non-ledger accounts of N. Y. Life, 564; $43,000 bonds of U. S. Steel
Corporation, 2891-2S9'5
on Nylic; treatment of fund of, 963-968; value of securities of, 2911 ;
his use of fund for Mexican Central bonds transaction, 2910-2931;
article 5 of agreement of, which gives trustees power to invest
026 Legislative Insurance Investigation.
Perkins, Geo. W. — ^Continued:
funds of, 2930-2931; his liability in case of loss In investment of
Nylic funds, 2931 ; handling of fund through his account, 2924-2931 ;
investment for, $40,193.60 in Steel Common Stock at 19y2, 2924-
2926; record that would protect Nylic in case of his death, 2928-
2929 ; advantages to Nylic of his connection with J. P. Morgan &
Co., 2933 ; discharge of his duties to, as a ti'ustee, 2933
on syndicate participations of N. Y. Life; Navigation Syndicate, 585-
588, 662-665, 706-708; St. Louis Terminal 4 per cent, bonds ($4,000,-
000), 932-944; U. S. Steel (transactions of N. Y. Life and himself
with N. Y. Sec. & Trust Co., in), 2848, 2878-2895, 2907-2909, 2925-
2926, 2933; on agreement between N. Y. Life and N. Y. Sec. &
Trust Co. by which N. Y. Life received 75 per cent of profits in
participation in TJ. S. Steel, 2879-2881, 2882-2884, 2886; on arrange-
ment by which the N. Y. Sec. & Trust Co. was made registrar of
the $500,000,000 of pref. stock in U. S. Steel, 2880-2882; on allot-
ment to him, of $50,000, for friend in Chicago, by N. Y. Security &
Trust Co., 2881-2887; on allotment to him, by N. Y. Sec. & Trust
Co., of $50,000, for "other people," 2883; on allotment to A. G.
Paine, 2883; on knowledge of Finance Committee regarding par-
ticipation in U. S. Steel, 2885; on amount of deposits carried by
N. Y. Life in N. Y. Sec. & Trust Co., at time of transaction in
U. S. Steel, 2908-2909
Perry, James (agent of Prudential Insurance):
relationship of, to oflSces of company, and commissions (J. F. D.), 3778;
correction of J. F. D.'s testimony regarding relationship of, to officers
of Prudential Ins. Co. (J. P. D.), 3787
Persistence of insurance in Equit., Mut. and N. Y. Life (ex. 960), 4749
Peters, Henry H. (representative of owners of Waco, Texas, property in
1902):
loan to, by Prov. Savings Life (W. T. G.), 3999-4001; conveyance by,
of Waco, Texas, property to Prov. Savings Life (W. T. G.), 4154-4155
Phair, Joseph W. (cashier of Lawyers' Mortgage Co.):
testimony of, 4378; on stock transactions of Lawyers' Mortgage Co.,
4378; on trustee accounts, 4381
Pliiladelphia, Baltimore & Washington Bonds syndicate (Long Island
Refunding 4's):
participation in, of Equit. Life (H. R. W.), 821-828, 881-884, 885, (.1.
H. H.), 2278-2280; of James H. Hyde (H. R. W.), 822-823; of J. H.
Hyde and associates (J. H. S.), 1036-1087; statement of joint ac-
count of, with N. Y. Life (ex. 115, 119, and G. W. P.), 685-G91
Phillips, Wendell C. (physician): testimony of, on ability of Mr. Burn-
ham to appear before committee, 8164-3167
Phoenix Fire Insurance Co. of Brooklyn: examination of (I. V.), 4360
Phoenix Mutual Life of Hartford:
statement of, 4842; history and administration of, 4842; commissions
of, 4843; deferred dividends, 4843; documents furnished by, 4842;
insurance of, in force, Dec. 31, 1904, 4843; investments of, 4842;
legal retainers of, 4842; rebates of, on taxes (J. J. M.), 4541; syjidi-
cate participations of, 4842
Index — Witnesses and Exhibits. 627
Pierce, James P. (State Superintendent of Insurance):
(J. C. McO.), 49; insurance history of (T. 0. P.), 2579-2580; vouclier to,
from Bquit., April 1. 1897 (S. S. McC), 2491-2492; connection oi":
with Metr. (J. R. H.), 2070; with Mut. Life (0. A. P.), 1296; (R. A.
McC), 1453-1455; arrangement with, by Mut. Res. for including un-
proved death losses in report (G. D. E.), 2799-2800; retention of, as
counsel, by Mut. Res. iG. D. E.), 3204
Pierman, Dr. agency director of Buffalo: branch of N. Y. Life (S. A. B.),
978
Pierson: identity of (J. A. N.), 25G2
Pillot, P. Stuyvesant: relation of, with Mut. Life (R. H. McC), 1274
Pilsbury, Judge E. S.:
legislative representative of Equit., Mut. & N. Y. Life in Gal. (A. W. M.),
1065; services of, to Equit., in Gal. examination (S. S. McG.), 2496
Pittsburg Coal Loan: on G. H. Squire, trustee, account (H. G.), 905-906-
911; letter regarding (ex. 194 A), 906
Pittsburg & Toledo R. R.: character of (H. R. W.), 925
Pittsburg & Toledo Syndicate:
managers of (H. R. W.), 894; participation in; ol Bquit. Life (H. R. W.),
804-805, 847-849, 870-871; (J. H. H.), 2241; of J. H. Hyde (J. H. H.),
2241
Pittsburg, Toledo & Western R. R. : connection of, with Pittsburg &
Toledo Syndicate (H. R. W.), 870
Piatt, Frank H.: counsel for Mut. Res. in Investigation, 9
Piatt, T. C:
connection of, with campaign contributions (B. B. 0.), 2396; connection
of, with Equitable affairs in Albany (E. H. H.), 3918
testimony of, 2573-2583; on contributions to candidates: — for judicial
office, 2578; for legislatlive office, 2576, ^78-2580; on contributions to
national campaigns, 2574, 2576, 2577-2578, 2580-2581; and justification
of, 2581-2582; on contributions to state politics (Equit.), 2574-2576;
(Mut), 2576-2577, 2578-2579; (N. Y. Life), 2577; on services or Andrew
0. Fields, 2579; on Hamilton's work in Albany, 2579; on insurance his-
tory of J. F. Pierce, 2579-2580
Plunkitt, George:
connection of, with L. W. Lawrence & Co. (L. B.), 1558; signature of
(exs. 273 and 274), 1557-1558; voucher of payment to, by Mut. Life
(ex. 275), 1559; voucher of Mut. Life signed by (E. W. R.), 1568
testimony of, 1557-1560; on his connection with L. W. Lawrence, 1557-
1559
Policyholders:
benefits to, from industrial insurance (J. P. D.), 3772-3774; from non-
participating insurance (J. T.), 4178-4182; difference in cost to, of
participating and non-participating insurance (J. T.), 4178-4182; rights
of, to surplus in a mutual co. (J. G. Van C), 4992-4695
participation of, in affairs of company (J. A. MeC), 1160-1161
participation of, in administration (Conn. Mut.) (D. H. W.), 166-167;
(Equit.) (W. A.), 145; (Metr.) (H. F.), 90, 92-94; (F. H. E.), 94-97; (Mut.
Ben.) (E. E. R.), 84; (Mut.) lit. A. G.), IS, 21. 26; (W. G. O.), 88, 39;
(.Mut- Res.) (C. W. C), 107-108; (G. D. E.), 2787-2788; (N. Y. Life)
(J. C McC), 55, G3-U4, 69-72; (Penn. Mut Life) (W. H. K.), 174-180
628 Index — Witnesses and ExUhits.
Policyholders. — Continued:
publicity of lists of (Conn. Mut.) (D. H. W.), 166; (Mut. Ben.) (B. B K.)
8^86; (Mut.) (R. A. G.), S4-35; (Mut Res.) (C. W. 0.), 108; (N. Y. Life)
(J. 0. McC), 76-77; (Penn. Mut. Life) (W. H. K.), 178-179
voting right of (Conn. Mut.) (D. H. W.), 165; (Mut. Ben.) (C. W. C), 109;
(Mut. Res.) (C. W. C), 104; (N. Y. Life) (J. C. McC), 59
Ponder, John A., vice-president of Mutual (R. A. G.), 29
Pope Manufacturing Co.:
value of stock of, 1903-1904 (ex. 66) (S. B. D.), o13h514; value put on 2d
pref. stoclJ, in report of Metr. Life (J. R. H.), 2017-2020
Porter, Wm.: assignment to, of G. Storm (ex. 599), 3290-3291
Potter, B. Clifford:
testimony of, 4200-4210; on allied real estate interests lien bill, 4200-
4206, 4208-4210; on interest of Germania Life, in mortgage tax bill,
4206, 4207
Powell, H. J.: advances to, from Bquit. Life (G. E. T.), 2627; total ad-
vances to account of (G. E. S.), 2637
Powell, Dr. Horace R.: relations of, with R. H. Hunter (R. H. H.), 4535
Pratt, Le Gage, vice-president of Mut. Ben. (E. E. R.), 83
Preferred Stock Retirement Syndicate, see Bond Conversion Syndicate
Preller, Chas. A. (auditor of Mut. Life):
testimony of, 1301-1426, 4334-4345; on advertising, printing, and sta-
tionery items, 1292-1294; on legal expenses, 1295-1299; on salaries of
executive officers of Mut. Life, 130'0-1301
Preliminary tei-m policies; in Mut. Res. (G. D. E.), 3280-3283; in Prov.
Sav. (H. M.), 3948-3949; valuation of, 4274-4275
Premiums:
different kinds of (J. A. McC), 1082-1083; results upon, of Canadian
legislation of 1904 (G. D. E.), 3148-3150; statement of, in comparison
with expenses, in N. Y. Life, for 1904 (ex. 153), 785-787; for 1903
(ex. 154), 787
natural premiums; character of (J. A. McC), 1082; discussion of, and
experience with in Prov. Sav. (H. M.), 3944-3047; disadvantages of
(G. D. E.), 3305-3306; increase in, according to American tables (G.
D. E.), 3306; see also, under individual companies
Presbyterian Ministers' Fund (not examined): statement of, 4793
Price: connection of, with Sec. Mut. as actuai-y (C M. T.), 3392
Princeton & Northwest 3% bonds: connection of, with Chicago & North-
west bond syndicate (H. R. W.), 863-865
Provident Life and Trust Co. of Philadelphia:
statement of, 4779-4791; agents; commissions to and contracts with,
4788; bank balances, 4791; campaign contributions, 4780; in 1896,
4765; committees, on finance and accounts, 47S0; on trusts and audits,
4790; directors, duties of, 4790; documents furnis.hed by, 4779; elec-
tions, methods of, 4788; legal retainers, 4789; legislative contributions,
4781; ratio of loadings to expenses (W. A. M.), 3603
syndicate participations:
minutes regarding, 4766; partial list of, 4782-4788; appointment of
president, as member of reorganization committee of Reading R. R.
(from statement read by Mr. McKeen), 4766
Index — Witnesses and Exhibits. 629
Provident Savings Life Insurance Ck).:
actuarial department; calculation of deferred dividends (ex. 719, 720,
721, 722 and H. M.), 3949-3966
Agency department; allowance for expenses (E. W. S.)> 3971-3972; ad-
vances (II. M.), 3924; bonded advances secured by National Surety
Company (E. W. S.), 4017-4019; amounts paid back in Dec, 1903, to
readvance in 1904 (ex. 728), 4017; balances (E. W. S.), 8979-3980; in
Dec, 1903 (E. W. S.), 4017, 4019; in Jan., Feb., and Marcli, 1904
(E. W. S.), 4019; difference in, between Nov. and Dec. 1903 (E. W. S.),
4019; between Nov. and Dec, 1904 (E. W. S.), 3909; difference in debit
balances between 1908 and 1904, charged to profit and loss (B. W.
S.), 3980
bonuses (H. M.), 3924; contingent bonuses (E. W. S.), 3972
commissions (H. M.), 3923-3924; (ex. 723), 3969-3972; renewal commis-
sions paid after termination of contract (E. W. S.), 3972; additional
commissions on nonparticipating business (E. W. S.), 3979; com-
missions on insurance of E. W. Scott (E, W. S.), 4025-4026
contracts (ex. 723), 3969
advantages of writing participating business (E. W. S.), 3979; dis-
advantages of writing non-participating business prior to Nov. 15,
IGOQ (B. W. S.), 3979; methods of agents in securing new business
(H. M.), 3853; local board plan of insurance as operated by Western
agent (E. W. S.), 4020
bank balances (ex. 730), 4032
campaign contributions (ex. 700), 3868
capital stock of (E. W. S.), 3614
committees of "(E. W. S.). 3i616; finance committee (E. W. S.), 3616-3617;
insurance committee (E. W. S.), 3616
dividends; on capital stock (J. F. D.), 3656, (correction of J. F. D.'s
testimony), 3766-3767; on policies, decrease of (H. M.), 3941; on de-
ferred dividend policies (H. M.), 3952; calculation of deferred divi-
dends (ex. 722), 3951, 3954-3957; dividends on endowment policy issued
Feb. 15, 1904 (ex. 722), 3955
examinations of; by state insurance departments (N. Y., Tenn., and
Texas), (B. W. S.), 38(i9-3871; by N. Y. Department (F. H.), 4297;
(I. v.), 43G6; (H. D. A.), 4393; (L. F. P.), 4495; report of examination
of, Oct. 19, 1897 (ex. 1,000), 4760
exhibits; 673, 698, 699, 700, 701, 702, 703, 704, 709, 710, 711, 712, 713,
714, 715, 716, 717, 718, 719, 720, 721, 722, 723, 724, 725, 726, 727, 728,
729, 730, 731. 732, 733, 734, 852, 99G, 997, 998 999, 1,000
expenses; between 1890 and 1904 (E. W. S.), 3636-3687; difference in
for 1903 and 1904 (R. K. H.;, 3961; statement of, for 1904 (ex. 725),
3989; excess of, over loadings for 1902, 1903, 1904 (R. K. H.), 3961-
3962; efforts to bring, under loadings (H. M.), 3924-3925; of first year's
business (H. M.), 3924; of Home Office (H. M.), 3924; incorrectness of
Item of, in Blue Book (E. W. S.), 3981; increase of, as compared with
Insurance outstanding (E. W. S.), 4022-4023; increase of, in medical
department (E. W. S.), 4023; item of $29,405.55 for traveling in report
of 1900 (B. W. S.), 4022; traveling charges of B. W. Scott (E. W. S.).
630 Index — Witnesses and Exhibits.
Provident Savings Life Insurance Co. — Continued:
4022; Items in report of 1904, for claims, supplementary contracts,
taxes, and repairs and expenses upon real estate (E. W. S.), 4023-4024;
see also legislative expenses
fees of directors (E. W. S.), 3617; of committees (E. W. S.), 3617-3618
financial statement of, 1894-1904 (ex. 852) (M. M. D.), 4416
gain and loss exhibit, 1895-1904 (ex. 709) 3892-3894
insurance in force; falling off, of since 1899 (E. W. S.), 363S-3687;
amount of, at present time (H. M.), 3928
investments; purchases of securities for 10 years preceding Nov. 21,
1905 (ex. 731), 4032; record of sales of securities for ten years pre-
ceding Nov. 21, 1905, (ex. 732), 4032
lapses: number of, in 1904 (B. W. S.), 3887
legal and legislative expenses, payments to A. Hamilton for preliminary
term matters (E. W. S.), 1898, 3638-3639; payments for campaigns and
legislation (ex. 700), 3868; legal retainers (ex. 673), 3638; counsel re-
tained (B. W. S.), 3857-3859
liabilities, gain in, on Dee. 31, 1904, due to difference in valuation of
policies between N. Y. and Mass. Departments, 3947
liens on policies; discussion of (H. M.), 3929-3930; amount of, issued in
1885 or 1886 and exchanged in 19flO (H. M.), 3030; contest between
N. Y. and Mass. Departments, regarding recognition of, as assets,
3948; rate of interest on Shapira policy (H. M.)j 3992
litigation; concerning tax law (1902-1904), (J. A. McC), 1144-1146; deci-
sion on construction of tax law (E. W. S.), 3855-3856; payments to
Hamilton in connection with (E. W. S.), 3856
suit on policy of same form as Evans policy (H. M.), 3975
loadings; on first year's premiums received in 1903 and 1904 (H. M.),
3915; ratio of, to expenses, for 1903 and 1904 (H. M.), 3915
loans; on collateral record of (ex. 734), 4032; to Stewart Brown (E. W.
S.), 3867-4021, 4026-4028
to Hadley, of Dec. 22, 1896 (E. W. S.), 3620-3621; of Jan. 4, 1897 (E.
W. S.), 3621-3622; and security on (B. W. S.), 3622; of Feb. 13, 1897
(E. W. S.), 3622; of Feb, 15, 1897 (B. W. S.), 3622; on stock of Prov.
Sav. in Continental Trust Co. (E. W. S.), 3623; payments on Hadley
loans (E. W. S.), 3623-3624
from N. Y. Sec. & Trust Co.; amount of, reduced to $50,000 (B. W. S.),
3866; interest on, and first payment (B. W. S.), 3867
to E. W. Scott; on property owned by him (B. W. S.), 3883-3886; on
policies, nature of calculation in exchange cases (ex. 721), 3951
mortality; in 1904 (E. W. S.), 3888, and excess of, over 1903 (E W S )
3892; record for 1904 (ex. 711), 3923; discrepancies in reported fluctua-
tions In gains on (E. W. S.), 3894-3895; (H. M.), 3895-3898; growing
rate of, a cause for increased premiums (H. M.), 3926; ratio of actual
to expected for 1902, 1903, 1904 (H. M.), 3928; excess of actual, over
expected, on which premium charges were originally based (H. M.),
3935; records of and valuation boolc records prior to 1889 (H M )'
3936; high rate of, developed after 1889 (H. SI.), 3944; table showin-^
rate of from 1890 to 1904 (H. M.), 3988-3989; rates of, favorably com"-
Index — Witnesses and Exhibits. 631
Provident Savings Life Insurance Co. — Continued:
pared witb other companies (H. M.), 3940; method of determining cost
of (H. M.), 3954
nepotism (E. W. S.), 3615-3616, 3626
new business: sums assured, issued, or terminated, 1895-1904 (ex. 702)
(B. W. S.), 3886-3888; amount of virritten in 1902, 1903 and 1904 (R.
K. H.), 3962, 3887; expense of (H. M.), 3923-3924
officers: names and salaries of (E. W. S.), 3614-3615; auditor (E. W. S.),
3616
organization and government: original Incorporation (B. W. S.), 3612;
charter (E. W. S.), 3612-3614; (ex. 997), 4759; reorganization under
F. R. Hadley (B. W. S.), 3619-3620; change in administration at time
of Hadley trouble (E. W. S.), 3869-3870
policies: different forms of (H. M.), 3957-3958; original forms (H. M.),
3925-3926; annual increase of premiums on old series of (H. M.), 3944;
increase of premiums on, issued in 1886 fH. M.), 3938; segregation of
class of, issued before 1889 (H. M.)', 3936, 3939-3940, 3941-3942, 3943-
3944; reason for segregation of (H. M.), 3944; forms issued since 1889
(H. M.), 3939-3940, 3947; form of issued in 1893, with clause providing
for increase of rates (ex. 718), 3937-3938; practice of dealing with,
since 1902 (H. M.), 3939; numbers and kinds of, in existence at end
of 1904 (H. M.), 3929; ratio of business of 1904 written under dif-
ferent forms (H. M.), 3958; increase of rates on, after age of 40 (H.
M.), 3937; and reasons for (H. M.), 3938-3939; discussion of industrial
(H. M.), 3925; non-participating policies, percentage of (H. M.), 3949-
3950
C. Chestnut policy (No. 63,856), letter to Hesse and Shingler, regard-
ing (H. M.), 3977; amount of and premium on (H. M.), 3978-397'J;
clause in regarding dividends and extended insurance (H. M.), 3977;
Insufficiency of payments on to carry insurance (H. M.), 3979
H. O. Evans' policy (37,768): increase of premiums on (H. M.), 3937;
(H. M.), 3974, 3975-3976; and reasons for (H. M.), 3941, 3945; form
of (H. M.), 3973
Owen policy (No. 25,180), character of (H. M.), 3931-3933, 3988
preliminary term policies, amount of business written on basis of
(H. M.), 3947; difference in valuation of, between New York and
Mass. department, 3947-3948; introduction of, in 1898 (H. M.), 3949
Shapira policy (No. 29,771): unusual character of (H. M.), 2473;
reserve value of, at time of exchange (H. M.), 3992; lien on (H.
M.), 3992; increase of premium rate on (H. M.), 3989-3990, 3991
ten year endowment policies: number of, outstanding (H. M.), 3960;
cost of insurance on, of Feb. 15, 1904 (ex. 722), 3955-3956; cause
for increased rate on (H. M.), 3957; difference in present rates on,
and ordinary 10 year endowment (H. M.), 3958-3960
Wing policy: for $81,000 carried as income in 1903, and disbursement
in 1904 (R. K. H.), 3961-3962
yearly renewable term policies: amount of, In force at end of 1904
(H. M.), 3928; form of policy issued in exchange for (H. M.), 3929-
3930; form of 1891, for (H. M.), 3931; right of company to raise
032 Index — WUnesses mtd Ealtihils.
Provident Savings Life Insurance Co. — Continued:
rates on (H. M.), 3931; practical discontinuance of, in 1897 (H. M.),
3947
policyholders ; complaints of, see under policies ; disadvantages to, by
segregation of policies (H. M.), 3942-3944; obligations of company to,
for deferred dividends (H. M.), 3951; methods of determining
amount to be distributed to (H. M.), 3953-3954; total receipts and
amount paid to (ex. 724), 3987-3988
premiums: statement of, for ten years (ex. 704), 3889; unsuccess of
company on natural premium basis (H. M.), 3925-3926; rates of, on
policies issued prior to 1889 (of which Owen policy is a type) (H. M.),
3935-3937, 8941-3S44; policies issued after 1889 (H. M.), 3939-3941,
3944r3947; since 1902 (H. M.), 3939; on policy issued 1893 (ex. 718),
3937; change in bookkeeping, with regard to, resulting in difference
in loadings in 1903 and 1904 (H. M.), 397r3-3977; application of, for
remission of retroactive tax on (J. J. M.), 1537; discussion of letter
from Mr. Chestnut regarding increased rate of, on his policy, 3977-
3979; discussion of letter from H. Clay Evans, regarding increased
rates of on his policy (II. M.), 3937, 3973-3977; letter from policy:
holder in Illinois regarding increased rates of on his policy, issued
1886 (H. M.), 3938-3939
profit and loss: items from 1897 to 1901 (W. T. G.), 4016-4017 (ex.
729), 4029-4033; gain and loss exhibits for 1901, 1902, 1903, 1904 (H.
M.), 3922-3923; (R. K. H.), 3961 (ex. 709), 3892-3894; of 1904 (B.
W. S.), 3628-3629; ratio of actual to expected losses (1884 to 1904)
(H. M.), 3926-3928; income profit of sales of matured or ledger assets
for 1902 and 1903 (W. T. C), 4017
reports: sources of information for report of 1902 (W. T. G.), 4004;
error in, as to purchase of 62 shares of N. American Trust Company's
stock from Stewart Brown (R. K. H.), 4027; verification of report
for 1900. by Walter C. Wright (R. K. II.), 4027
real estate: discussion of (E. W. S.), 3871-3886; appraisal of (E W S )
3878-3883; (W. T. G.), 3964-3966; appraisal of, by Jefferson Johnson,'
Commissioner of Insurance of Texas (W. G. T.), 3908; estimate of
book value of (E. W. S.), 3874-3875, 3876-3877; (W T G ) 4002-
(W. N. fi.), 4002; market value of (W. N. B.), 4002; enhancement
in value of, in reports (E. W. S.), 3893-3968; (W. T. G ) 4000-4007
4008, 4010-4012, 4013-4014, 4015; difference in market value of in 1900
and 1902 (W. G. T.), 4003; difference between appraisal and market
value, in 1903 and 1904 (W. T. G.), 4004; amount of profit on sales
' 'ZnTfJ^"^- ''■^' ^''^' ^^- ^- ^'■^' ^^^^' properties sold dur-
ing 1904 (R. K. H.), 3961; profits realized on (E W S) 3969-
'J'"^^?'^l^ ^'"' ^^^ ^^- ^^- ^■^' ^^^^' P'-operties owned In 1897 (w'
A. E.), 39^7-3998; report of, in 1897 (W. T. G.), 4005; percentage of
net rents on various properties (E. W. S.), 4024-4025 ; ^property taken
for annuities, method of transaction (E. W. S.), 3876-3877- prop-
erty taken for annuity, 719-721; Amsterdam Avenue (E W S ) 3874-
T!f:i^: "-"■ ^"■^^t ^^- ^^- S.). 3874; W. 18th street (E. W. 7 )
o.s,L,:,5,,-5: (j:.,lj,',nge transactions with Metr. Life (E. W. S.), 3876
Index — Witnesses and Exhibits. 633
Provident Savings Life Insurance Co. — Continued:
acquisition of Earlington property (W. T. G.), 4006, 4013-4021; ac-
quisition of Englevvood and Waco properties (W. N. B.), 3963-3964;
profits on sale of Euglewood property (W. N. E.), 3963; value of
Englevirood property in exchange for the Earlington (W. T. G.), 4006
Mamaroneck property; value of (W. T. G.), 4006; acquisition of,
under foreclosure (W. T. G.), 4010-4012; disposal of (W. T. G.),
4012 ; reacquisition of, 4013 ; mortgages on, 4013
New York City property ; Increase of book value of properties on West
27th and 28th Streets (W. N. E.), 3964-3966; appraisal of property
on West 27th Street,, by Ins. Dept. of N. Y. (W. N. E.), 3965; amount
of mortgage on property 50 W. 28th Street, at end of 1903 (W. N.
E.), 396G ; valuation of property 50 W. 28th Street in 1903, after mort-
gage was paid ofC (W. N. E.), 3966; price paid for properties on
W. 27th and 28th Streets (W. N. E.), 3907; properties on West 27th
and 28th Streets exchanged for building at 35 Nassau street
(W. N. E.), 3967; value of property 534-536 Broadway, and mortgage
on, nov/ under foreclosure (W. T. G.), 4009; value of Broadway
property according to the properties given in exchange (W. T. G.),
4010; appraisal of plottage (W. T. G.), 4010; properties taken in
exchange; 530-53S Broadway (E. W. S.), 3873; 80-82 Wooster Street
(E. W. S.), 3873-3874; E. 17th St., 35 Nassau St., 54-58 Liberty St.
(E. W. S.), 3875-3876; property given in exchange for 35 Nassau
St. and value of same (E. W. S.), 3877-3878; acquisition of properties
on 106th, 112th and 113th Streets in 1903 (W. T. G.), 4016; Robin-
son and Tully properties; acquisition and value of (W. T. G.), 4015
Savannah. Georgia, property; profits on sale of in 1904 (W. N. E.),
3903; book value of (W. N. B.), 3963; (W. T. G.), 4005;. cost of (W.
T. G.), 4006; date of acquisition of (W. T. G.), 4006; disposal of,
in Oct., 1901, and market value of (W. T. G.), 4006; amount of
mortgage on (W. T. G.), 4007; again acquired, by cancellation of
mortgage, 1902 (W. T. G.), 4007-4008; book and market values of
in 1903 (W. T. G.), 4008; transfer of, in May, 1904, to Walter S.
Jones, in exchange for property 536 and 538 Broadway (W. T. G.),
4008-4009; total amount of mortgages on Sayannah, Euglewood,
Mamaroneck properties (W. T. G.), 4013
Waco, Texas, property.; book value and cost of (E. W. S.), 3871-3872;
profits on sale of, in 1904 (W. N. E.), 3936; re-sale of, 3964; cost of
(W. N. E.), 3997; book value of, in 1898 (W. N. E.), 3998; in 1889
and 1901 (W. N. E.), 3999; exchange of, for 532-4 Broadway, and 80
and 82 Wooster Street, N. Y., in 1902 (W. N. E.), 3999; reacquisi-
tion of, after exchange in 1902 (W. N. E.), 3999; loan mad«, on,
in 1902, to Henry H. Peters (W. T. G.), 4000-4001; conveyance of,
to Co. by K. n. Peters (W. T. G.), 4001-4002; amount for which
property was deeded to company (W. T. G.), 4002; book value of,
in 1902 (W. T. G.), 4002; amount of mortgage on (W. T. G.), 4002;
market value of, in 1903 and 1904 (W. T. G.),'4004
634 Index — Witnesses and, Exhibtts.
t
Provident Savings Life Insurance Co. — Contlmied:
rebates on taxes (J. J. M.), 4004
reserves: ratio of assets to (E. W. S.), 3630-3634; provision in contract
for 25 per cent, reserve (H. M.), 3948; amount of legal reserve (H. M.>,
3987-3988
salaries: of officers (E. W. S.), 3fll4-3616; statement of (ex. 698), 3806-
3867; increase of, in clerical department (E. W. S.), 3865
stock dealings: amount contributed tovs-ard acquisition of Hadley stock
(E. W. S.), 3625; advance to Boswell and Buckley for purchase of
stock (E. W. S.), 3859-3861; stock transfers (E. W. S.), 3859-3865; pay-
ments to E. A. Dunham on order of Mr. Hadley (E. W. S.), 3862-3864 ;
purchase from, and sale to Stewart Brown of 62 shares of North
American Trust Company's stock (E. W. S.), 4021; interest on loan
for stock purchases, paid by E. W. Scott (E. W. S.), 4021; purchase
(Sept. 28) of 67 shares of North American Trust Oo.'s stock from W.
H. Taylor (R. K. H.), 4026-4027
surplus: of 1895, 18S6, 1880, 1894, 1893, 1904 (E. W. S.), 3628-3634; of
1901, 1902, 1903, 1904 (E. W. S.), 3892; (H. M.), 3988; of 1894 (H. M.),
3926; decrease in, from 1894 to 1896 (H. M.), 3926; application of, to
maintain original level premium (H. M.), 3950; right of distribution
of (H. M.), 3952; relation of, to enhanced book value of real estate
(E. W. S.), 3968; amount of interest on, as distinguished from profits
(E. W. S.), 3969; exclusion of first year premiums in every case in the
computation of (H. M.), 3988
travelling expenses of, for 1904 (ex. 998), 40i65
Provincial Provident Life of St. Thomas, Canada, business of, acquired
by Mut. Res. (G. D. E.), 3084-3087
Proxies, in Conn. Mut: proportion of, in elections (D. H. W.), 166; prac-
tices regarding (D. H. W.), 166-167; number of, (D. H. W.), 167; forms
of, 169
in Life Association: (H. P. T.), 4081
(in Metr. Life); practices regarding (H. F.), 92, 94, 98; proportion of, In
elections (F. H. E.), 94, 95, 96; number of (P. H. E.), 96-97; forms of
(H. P.), 98-99
(in Mut. Ben.); practices regarding (E. B. R.), 83; forms of (ex. 10),
84; number of (E. E. R.), 87
(in Mut. Life); proportion of, in elections (R. A. G.), 21; number of (R.
A. G.), 21; practices regarding (R. A. G.), 21, (R. A. McC), 1395-1399;
forms of (ex. 9), 24
in Mut. Res.; proportion of, in elections (C. W. 0.), 108; practices regard-
ing (C. W. C), 109
in N. Y. Life; practices regarding (J. C. McC), 59; forms of (ex. 8) (J. C.
McC), 61; proportion of, in elections (J. 0. McC), 63; number of (J.
C McC), 71
in Penn. Mut. Life; practices regarding (W. H. K.), 175; see also under
individual cos.
Pi-udential Ips. Co. of London:
business of, industrial and participating (H. M.), 3994; annual distribu-
tion of surplus by "(H. M.), 3994; persistency of business, and rates ot
(J. F. D.), 3773-3774
Index — Witnesses and Exhibits. 635
Prudential Life Insurance Co.:
advertising department; treatment of answers to advertisements (J. F.
D.), 3687-3688
agency department; agreement with Metr., regarding employment of
agents, and rates (H. F.), 2186; statement prohibiting employment of
employees of, by Equit (ex. 421), 2656; commissions to agents on
their own insurance (J. F. D.), 3687; compensation and number of
agents (J. F. D.), 3759-3760; responsibility of agents for lapses (J.
F. D.), 3760-3761, 3763.3766; supervision of agents (J. F. D.), 3761;
lapses of predecessors charged to agents (J. F. D.), 3768-3770; com-
plaints of agents, on being charged with lapses of predecersors (J.
F. D.), 3768-3770; income of superintendents (J. F. D.), 3770; incomes
of agents in ordinary department (J. F. D.), 3771; necessity of low
compensations to agents (J. F. D.), 3772; temptation to agents, to
pay premiums (J. F. D.), 3775; responsibility of agents in reporting
lapses (J. F. D.), 3776
annuities (J. K. G.), 3731
bank balances of:
with Equit. Trust Co. (J. F. B.), 3740; with Fidelity Trust Co., 1903-
1905 (J. F. D.), 3738-3780; with Union Nat. Bank (J. F. D.), 3668;
agreement regarding amount of. in one company. (J. F. D.), 3666;
bank dealings of, with Robert Winthrop & Co. (J. F. D.), 3670
campaign contributions; statement of (J. F. D.), 3671; charged to legal
expense (J. F. D.), 3681
capital stock of (J. F. D.), 3654-3656. 3697-3698
commissions on insurance; to oflleers and employees (J. F. D.), 3685-
3687; to J. F. Dryden (J. F. D.), 3889
committees; members of finance and executive (J. F. D.), 3694-3695:
finance: members of and their partial identity with finance com-
mittee of Fidelity Trust (J. F. D.), 3787; dividends to policyholders;
relation of to surplus (J. F. D.), 37C0-3702; dividends and additional
benefits on industrial policies (ex. 688 and J. F. D.), 3717-3724; aggre-
gate of on industrial policies from 190O to 1905 (J. F. D.), 3728
exhibits; 674, 675, 676, 677, 678. 679. 680. 681, 682, 683, 684, 685,
686, 687, 688, 689. 690, '691, 692, 693, 694, 1006
gain and loss exhibit; method of making up (J. K. G.), 3744-3746
income; comparison of, with expenses (J. K. G.), 3731-3732
insurance In force, Dec. 31, 1904 (ex. 693), 3777-3778
industrial business; oinginal predominance of (J. F. D.), 3653-3655; ex-
tent of (J. F. D.), 3674; correction of J.. F. D.'s testimony on extent
of (K. V. L.), 3767; comparison of rates on with ordinary business
(J. F. D.), 3701-3702; examination and inspection of risks (J. F. D.),
3705-37(yr-' additional benefits and dividends on Industrial policies (J.
F D ) 3717-3724; additional benefits to holders of industrial policies
in case of death after 5 years (ex. 689), 3728; premiums received and
amounts paid to industrial policyholders (ex. 691 and J. K:. G.), 3729-
3731; comparison of amount of. Issued in 1900-1905 with amount of
ordinary business (J. K. G.), 3735-3736; increase «*' ^7/° ^^^^^
1905 (J. K. G.), 3735; approximate amount paid on m 1904 (J. k.. ^.),
036 Index — Witrxsses and Exhibits.
Prudential Life Insurance Co. — Continued:
3742-3743; proportion of, on adult and infantile tables (J. K. 6.).
3746; expense of new business (J. F. D.), 3771-3772; cost of first year
business and preroiums (ex. 692 and J. F. D.), 3776-8777; rates of
Industrial policies (ex. 693), 3797; arrangements with undertakers (J.
F. D.), 3757-3758; see also policies and premiums, and sub-standard
risks
investments; list of securities (ex. 678), 3695-3696; securities connected
with Public Service Corporation (ex. 676), 3693-3694
lapse; ratio of, and percentage or revivals (J. F. D.), 3702-3713;
amount received by policybolder in case of (J. F. D.), 3713-3717; table
of, 3721; loss to company and policyholders from (J. If. G.), 3740;
method of revival in case of (J. F. D.), 3724-3725; ratio of, in adult
and infantile Insurance (J. K. G.), 3746; probable decrease of, in the
future (J. F. D.), 3772-3773
legal and legislative measures:
discussion and history of insurance legislation (J. F. D.), 3671-3684;
concerning industrial insurance (J. F. D.), 3680'-3681; co-operation
and payments with Metr. Life (J. F. D.), 3673, 3675, 3677, 3680; nature
of legislation opposed by insurance Cos. (J. F. D.), 3676-3677; co-
operation with John Hancock Life and Metr. Life to defeat obnoxious
legislation (J. F. D.), 3680.
legal expenses, statement of since 1895 (ex. 674), 3671; payment to
Metr. Life (J. F. D.), 3672; payment to J. H. Blood for repeal of
law in Colorado (J. F. D.), 3672; payments to A. Hamilton (J.^ F.
D.), 3672-3673; reason for increase of, in 1904, 1905 (J. F. D.), 3681-
3683; counsel fees (J. F. D.), 3691; schedule of (ex. 694), 3797;
shared with Metr. Life and John Hancock (H. V.), 3797-3798, see
also campaign contributions and litigation
litigation:
Blair suit (J. F. D.), 3G82-3683; regarding Prudential-Fidelity arrange-
ment (J. F. D.), 3681-3683; Rocbotham suit (J. P. D.), 3856-3857; in
Wisconsin (J. F. D.), 3682-3684
loans of; to Isle and King (J. F. D.), 3670; to Public Service Corpora-
tion (ex. 677), 3694; method of making (J. P. !>.), 3694
mortality rate: relation of actual to expected (J. F. D.), 3707-3708
nepotism (J. P. D.), 3656-3657, 3787
officers and directors:
interrelationship of. (J. P. D.), 3657; names of, 3656-3779; fees of
(J. P. D.), 3695; stock bonuses of (J. F. D.), 3782-3786; interest of, in
Equit. Trust (J. P. D.), 3665; in syndicate of Fidelity Trust (J. F. D.),
3787-3788; on board of directors of Fidelity Trust Co. ((J. P. T).),
3660-3661; connected with Public Service Corporation (J. P. D.),
3667-3668; connected with Union Nat. Bank (J. P. D.), 3669
payments on executive order (J. p. D.), 3674
policies: comparison of rates on Industrial and ordinary (J F D)
3703-3700 ■ '
industrial: form of (ex. 086), 3714-3715; dividends and additional
benefits on (J. P. D.), 3717-3724; percentage of, reaching 15th an-
Index — Witnesses and Exhibits. 637
Prudential Life Insurance Co. — Continued:
niversary (J. P. D.), 3719-3720, 3721; cash surrender values on
(J. F. D.), 3722-3724; partial benefits on, in first year (J. F. D.),
3724-3726; proportion of, on adult and infantile tables, 3746; variety
of forms of (J. F. D.), 3715
intermediate: causes leading to issuance of (J. K. G.), 3751; see
also sub-standard risks
ordinary: rates on non-participating (J. F. D.), 3709; proportion of
participating business (J. K. G.), 3698
paid up policies: laws governing (J. F. D.), 3716-3717; right of policy-
holder to, for lapse in 3d year (J. F. D.), 3713-3714, 3715-3716
policyholders:
voting rights of, abolished (March 30, 1880 (J. F. D.), 3671
comparison between amounts paid and received by (J. K. G.), 3786-
3743; question of increasing benefits (.1. K. G.), 3743
in industrial department: number of (J. K. 6.), 3740-3741
uncontracted dividends to (J. P. D.), 3701; benefits to, from in-
creased surplus and provision for paid up policy at age of SO (J. K.
G.), 3747-3750; educational advantages to, from insurance (J. F. D.),
3755-3757, 3772-377f ; high rate paid by (J. F. D.), 3772
premiums: table showing premiums received and amount paid policy-
holders In industrial department (ex. 690 and J. K. G.), 3729-3731;
comparison of total amount received in industrial department, with
total amount paid policyholders ( J. K. G. ) , 3731-3732 ; gross amount
of, compared with total disbursements to policyholders (J. K. G.),
3734-3735
•real estate; in Newark and New York (J. F. D.), 3778; value of, and
income from N. T. Office Building (J. F. D.), 3778
reserve; special reserve, made necessary by differing requirements in
valuation of state departments (J. K. G.), .3732; amount added to
liabilities in form of (J. K. G.), 3734-3735; reserves and surrenders
of Prud. compared with John Hancock (J. K. G.), 3743-3744
salaries; of superintendents and assistant superintendents (J. F. D.),
3762-3763; of executive officers (ex. 675), 3689-3690
subsidiary companies; Equit. Trust Co. (J. F. D.), 3665
Fidelity Trust Co : transfer of control of stock to ( J. F. D,), 3657'30G0 ;
attempt to gain control of (J. F. D.), 3661-3663; bank balances
with, 1903-1905 (J. F. D.), 3664; rate of interest received from
(J. F. D.), 3665; officers and stockholders in control of (J. F. D. ),
3666; shares of Prud. Ins. Co., held by Fidelity Trust, and shares
of Fidelity Trust held by Prud. Ins. Co. (J. F. D.), 3095-3700) ;
stock and bond dealings with (J. F. D.), 3782; participations in
syndicate or underwriting operations of (J. F. D.), 3784-3787
Public Service Corporation (J. F. D.), 3667-3668
Union Nat. Bank (J. F. D.), 3068
sub-standard risks; in industrial department (J. K. G.), 3750; In
ordinary department (J. K. G.). 3750; to whom given (J. K. G.),
3751-3754
638 Index — Witnesses and Exhibits.
Prudential Life Insurance Co. — Continued:
surplus; amounts of (J. F. D.), (1877) 3697, (1902) 3698, (1904) 3697;
discussion of, in relation to deferred dividends (J. F. D.), 3700-3701;
present amount of, lield to meet dividends (.T. K. G.)> 3732; increase
of, between 1897-1905 (J. K. G.), 3733-8734
surrender values of; compared with John HancocL: (J. K. G.), 3746;
discussion of (J. K. G.), 3746-3747; cash surrender values (J. F. D.),
3722-3724
syndicate participations; statement of (J. F. D.), 3684-3685
vouchers, system of (J. F. D.), 3674-3675
Prussian Department:
relations of, with N. Y. Life (E. D. R.), 265; surplus in reports on
tontine policies to, by N. T. Life (J. A. McC), 1094-1098; (R. W.), 4746
Prussian insurance companies :
attitude of N. Y. ins. department to admission of (L. F. P.), 4515;
admission of, to business in New York State (F. H.), 4263-4266 ,
Public Service Corporation :
nature and connection of, with Prudential Insurance Co. (J. F. D.),
3667; list of directors of (J. F. D.), 3781; securities of, connected
with Prudential Ins. Co. (ex. 676), 3693-3654
Putnam, N, D., Jr. (loan clerk in Guaranty Trust Co.) :
transference to, of 1000 shares of Lawyers' Mortgage Co. stock (B.
W. C), 4372, (N. D. P.), 4376, (J. W. P.), 4378; stock of Law-
yers' Mortgage Ins. Co., in name of (C. G.), 4489
testimony of, on allotments of Lawyers' Mortgage Ins. Co. stock, 4376
Queens County 4's: joint account in, of N. Y. Life (ex. 114 and G. W. ?.),
683 "■
E.
B. R. Securities Co. 3% gold bonds
participation of Equit. Life in (H. R. W.), 801-803, 844, 846, 848, (J.
H. H.), 2238
Railroad syndicates, relations of, to banks and ins. cos. (F. C), 488
Rambaut, Thomas B.i appearance of, for English policyholders of the
Equit. Life, 657
Randolph, E. D. (treasurer of N. Y. Life):
connection of, with transaction in U. S. Steel (G. W. P.), 2833; letter
from Mr. Webb, secretary of N. Y. Security & Trust Co., Sept. 16,
1903 (G. W. P.), 2888-2889, 2891; letter to, from Mr. ICeeler, assistant
secretary of N. Y. Sec. & Trust Co., Oct. 1, 1902 (G. W. P.), 2896,
2905; letter to, from secretary of N. Y. Sec. & Trust Co., Feb. 19.
1902, on agreement with N. Y. Life (G. W. P.), 2885-2886; statement
of, on sale of bonds of U. S. Steel Corporation, 2892
connection of, .with N. Y. Life's transaction with Kidder, Peabody &
Co. in Mex. Central Railway bonds purchase (G. W. P.), 2917; letter
Index — Witnesses and Exhibits. 639
Randolph, E. D. (treasurer of N. T. Life).- Continued-
to, from Kidder, Peabody & Co., June 27, 1904 (ex. 492), 2914- en-
dorsement by, of check for $40,193.60 paid to Perkins (G. W. P.),
connection of, with taking securities from vault of Central Bank (T
M. B.), 2965-2967; dealings of W. S. Fanshawe with (W. S. F ) 2993
salaries of (1898-1905), 216
testimony of, 213, 252-289, 314, 317, 335-381, 392, 534-546, 2973-2985- on
collateral loans policy, 353; on collateral loans, of N. Y. Life and
N. Y. Sec. & Trust Co., 353: on Continental Coal transaction, 255; on
dummy loans, 282, and justification of same, 292; on duties of treas-
urer, 253; on accounts of N. Y. Life with First Nat. Bank, 365; on
Golding checks, 542; on Hamilton checks, 540; on Hanover Bank
office account, 534; on holding agreements of N. Y. Life, 546; on Home
Office annex account, 541; on Inve'stment of funds and by-law regard-
ing, 265; on joint account transactions and profits to banks, 393; on
joint accounts of N. Y. Life, 534; on loan of N. Y. Oity stock for
purposes of taxation, 2977-2985; on Kidder, Peabody & Co. loan trans-
action with N. Y. Life, 2973-2977; on check for $40,193.60 (ex. 499)
from Kidder, Peabody & Co., 2973-2977; on his connection with loan
of securities for taxation, 2978-2982, 2985; on loan of bonds at request
of U. S. government, 2982-2983
on relation of N. Y. Life to N. Y. Sec. & Trust Co.— on nonowner-
ship of stock by N. Y. Life in trust companies, 264; on disposal
of stocks in compliance with Prussian requirements, 206; on dis-
posal of stock in N. Y. Sec. & Trust Co. and formation of trust
for (exs. 41, 42, 43),. 268; on meetings of finance com. regarding
disposal of stock, 292; on increase of stock and merger with Con-
tinental Trust Co., 273; on deposits of N. Y. Life with N. Y. Sec.
& Trust Co., 276, 283, 353, 359; on rates of interest on deposits with
and loans from N. Y. Sec. '& Trust Co., 358, on discontinual of
account 4 with N. Y. Sec, & Trust Co., 363; on pro forma sale of
Northwest pref. and St. Paul pref., 280; on shares held by Fair-
child, McCall and Perkins in N. Y. Sec. & Trust Co., 361; on taking
over New Orleans bonds and syndicates from N. Y. Sec. & Trust
Co., 369; on selling remaining 155 shares of N. Y. Sec. & Trust Co.
syndicate stock, 537
on non-ledger assets, 254, 310, 325 ; on nature of Nylic, 351 ; on Prus-
sian Ins. Bureau and N. Y. Life, 265 ; on records of securities, 307 ;
on selling securities at end of year for the sake of report, 380;
on proof of stocks, 305; on stocks and bonds, 323; on syndicate
agreements, 259; on his non-participation In syndicates, 396
on specific transactions — on Atlantic Coast Line bonds, 396; on sale
of Chicago, Milwaukee & St. Paul (1901), 294; on transference of
Chicago & Northwestern stocks, 300; on Erie securities, 257-310,
317; on Evansville and Terre Haute, 255; on Kanawha and Hock-
ing, 259; on Mackay and Nesbit, 255; on Memphis & Charleston
Kailroad, 253; on Navigation syndicate, 368; on New Orleans syn-
dicate and bonds, 370; refusal of, to name persons interested in
640 Index — Witnesses and Exhibits.
Kandolph, E. D. (treasurer of N. Y. Life).— Continued:
New Orleans transaction, 374; on sale of Northwestern & St. Paul,
280; on Southern Railway, 254; on Toronto, Hamilton & Buffalo,
327-335; on Union Pacific, 255, 318, 535; on United Collieries, 288;
on Wisconsin Central, 258
Randolph Macon Coal Co.: investments of Meti*. Life in (J. R. H.), 200il
Ransom, Eastus S. (counsel of G. H. Squire):
testimony of, 2403, 3016-3018; on ability of G. H. Squire to testify, 2403;
on Squir'e's statement of reason for acquiring stock of Lawyers' Title
Ins. Co., 2405; on Squire's statements regardipg G. H. Squire trustee
account, 2407; on payment to G. H. S. by American Deposit & Loan
Co. of profits from Lawyers' Title and Lawyers' Mortgage Ins. Co.
(exs> 515-526), 3016-3018
Rates of interest: Conn. Gen. (F. C), 468; Conn. Mut. (F. C), 468; Mut.
Life (F. C), 464; Northwestern Mut. (F. C), 468; outlook fop (E. McC),
1792; general reduction in (E. McC), 1861
Raymond, C. H.:
business association of, with R. H. McCurdy (R. H. McC), 1204, 1211-
1213, 1214, 1215-1217; relations of, with Mut. Life in dom. agency
dept. (R. H. McC), 1256-1260, 1261; commissions paid to, by Mut.
Life (ex. 255), 1888 to 1903 (R. H. McC), 1211-1212; (C H. R.), 1220-
1224; policy of, regarding commissions (T. 0. B.), 1316-1318; connec-
tion of, with Widows and Orphans Beuefit Life Ins. Co. (R. A. McC),
1373-1374
testimony of, 121§-1249; on his business association with John A. Little,
1219-1220; on agreements of Raymond & Co., with Mut. Life, 1218-
1219, 1223-1224, 1227-1228; on commissions to him from Mut. Life,
1220-1225; on commissions and rates to Raymond & Co., from Mut.
Life, 1230-1239, 1243-1248; on commissions paid to sub^agents; 1223-
1225, 1233-1234, 1239; on contracts of Mut. Life with Raymond & Co.,
1236-1239; on change in form of contract, 1242-1246; on payments of
office expenses, 1240-1243, 1244, 1245 on partnership agreements with
L. A. Thebaud, 1227-1228; on his reasons for increasing Mr. Thebaud's
share in partnership, 1248-1249
Raymond, C H., & Co.:
agreements of, with Mut. Life (R. H. McC), 1212; (C H. R.), 1218-1219,
1223-1224. 1227-1228, 1230-1249; commissions to from Mut. Life (C. H.
R.), 1230-1239, 1242-1248; commissions paid to sub-agents by fC H. R.),
]'223-1225, V2i"i 1235, 1239; payment of office expenses of (C H. R.),
1240-1243, 1244-1245; contracts of, with Mut. Life (ex. 260), 1893, 1230-
1233; 1894 (C. H. R.), 1234-1236; 1895, 1236-1237; 1896, 1237-1239; 1903
(ex. 261), 1239; (R. A. McC), 1375-1376, 1380-1383, 1385, 1386-1389;
change in form of contract with (C H. R.), 1242-1246; statement of
business of, with Mut. Life (1896- 1904) (ex. 258), 1228-1230; statement
of business of, furnished by Mut. Life (exs. 979 and 980), 4755; net
profits of, in 1902 (R. H. McC), 1261; connection of, with advertising
coupon business of Mut. Life (W. S. S.), 1762; references of clients
of Mut. Life to (R. A. McC), 1525; references to, of applicants for
loans to Mut. Life (R. A. McC), 1761; form referring clients to (ex.
272), 1525; connection of Mut. Life, executive special dept. with (R,
Index — Witnesses and Exhibits. . 641
Raymond, C. H. & Co.— Coutiuiied:
A. McC), 1531; amoimts paid by, to R. H. McOurdy (ex. 25T), 1224-
1227; business association of, with Mr. Thebaud (R. H. McC), 1217-
1218; (O. H. R.), 1227-1228; statement of money received by L. The-
baud from (ex. 259), 1230-1231
Read, George, brolier in Metr. real estate transactions (F. H. E.), 2143;
relationship of, to W. A. Read (F. H. E.), 2147.
Read, W. A.:
general relations of, with Metr. Life (S. B. D.), 524; connection of, with
Minn., St. Paul & S. S. Marie Syn. (S. B. D.), 522; connection of, with
Wabash R. R. Co. syndicates (S. B. D.), 517; connection of, with West-
ern Pacific (S. B. D.), 519; loans of Metr. Life to (J. R. H.), 2072;
negotiations of, with J. R. Hegeman (G. T. H.), 2122; connection of,
with sale of L. S. & M. S. R. R. stocli to Metr. Life, by Butler & P.ro.
(H. F.), 3799-3801
testimony of, on connection of J. R.- Hegeman with Vermilye & Ct)..
2159; on special rates on loans to him, from Metr. Life, 2161
Read, W. A. & Co.:
relations of, with Metr. Life (S. B. D.), 511 (J. R. H.), 2075; bankers of
Metr. Life (J..R. H.), 2017; deposits with, of Metr. Life (J. U. H.),
2100; payments to J. R. Hegeman by (J. R. H.), 2105; sale of se-
curities of Metr. Life through (J. K. H.), 2130
Real estate:
disadvantages of investment in bond and mortgages of, by insurance
companies (J. T.), 4174-4175, 4177; question of leaseholds and invest-
ment of reserve, Mut. Res. (G. D. E.), 3173-3175, 3177-3178
law of five year holdings, N. Y. State superintendent's practice regard-
ing (G. R. B.), 2742; Equit. Life's practice regarding (G. R. B.), 2741;
contributions of ins. cos. to Allied Real' Estate Interests (E. L. B.),
4225-4228, 4249-4250; law affecting Equit.'s holdings in France (G. T.
W.), 2853
Rebating:
effect on, of prohibition of discrimination (J. A. McC), 1086-1087; rarity
of, in foreign business (G. T. W.), 2850; in Equit.'s branch office in
Buffalo (G. H. S.), 4732; law concerning, in New Jersey (J. F. D. and
R. V. L.), 3686-3687; in N. X. Life (G. W. P.), 2873-2877;. measures
talcen against by N. Y. Life (J. A. McC), 1086-1087, 1090; (G. W. P.),
2877; see also individual companies
Reduction of expenses: attitude of insurance department toward sugges-
tion of (H. D. A.), 4482
Reliance Life Insurance qo. of Pittsburg (unexamined):
statement regarding, 4794; history and administration of, 4794; agents'
commissions of, 4795; banli balances of, 4795; documents furnished by,
4794 ; Investments of, 4795 ; legal retainers of, 4795 ; salaries of, 4794 ;
syndicate participations of 4795
Reuney, or Reunie, A. S. :
contract of, with Sec. Mutual (C. M. T.), 3440-3442; contract of, and
commissions to, from Sec. Mutual (C Mi T.), 4754; corrected state-
Qfi:2 _ Index — Witnesses and Exhibits.
Uenney, or Rennie, A. S. — Continued:
ment of (C. M. T.), 3442; indebtedness of, to Sec. Mut (O. M. T.),
3442 ; statement of account of, with Sec. Mut. Life Ins. Co., from 1896 •
to J 905, 4759
Republic Iron and Steel Co., 1st mortgage: participation of Wash, life in
(ex. 789), 4156-4157
Reserve :
origin of requirement of, in N. X. (J. A. McC), 1079-1080; and tl.e
policyholder (J. A. McC), 1081-1082; policy of Wright regarding (J.
A. McC), 1081; considerations dictating amount of (E. BIcC), 1791;
distinction between hypothetical accumulation and legal liabilities (E.
McC), 1794; practices of Mut. and N. Y. Iiife- regarding accumulated
dividends (E. McC), 1793; requirements of< by N. Y. Ins. Dept. on
adult life policies in industrial and ordinary depts. (J. M. C), 1983;
requirements of, on infantile policies (J. M. C), 1985; ratio of paiui-up
insurance to, in Metr. Life (li. F.), 2190; legal reserve, made basis of
Mut. Res. business in Canada (G. D. B.), 3148-3150; discontinual of
assessments for, in Mut. Res. cause of difficulties (G. D. E.), 3102-3163;
importance of accumulation in excess of (J. G. Van C), 4693
Rhodes, Edward E. (mathematician of Mut. Ben. Ins. Co.) : testimony of,
83; on elections, 83; correction of testimony of, 289
Richards, Wm. W. : testimony of, 1681 ; on properties held by Mut. Life,
taken on foreclosure, 1682
Riggs, E. : payments made to, by N. Y. Life, for special work in connection
with newspaper advertising (ex. 1,009), 4763
Rio Grande & Western 1st consolidated 4's syndicate: participation of
Equit. Life in (H. R. W.), 803-845; (J. H. H.), 2238
Ripley, S. D. : account of, with Williamson and Squire (ex. 369), 2330;
(ex. 944), 4736
Robinson, Hon. Lucius: connection of, with Widows' and Orphans' Benefit
Life Ins. Co. (R. A. McC), 1373
Robinson and Tully properties: acquisition of, by Prov. Savings Life, and
value (W. T. G.), 4015
Rogers, Edgar W. :
connection of, with Globe Printing Co. (R. A. McC), 1085; voucher of
Dec. 7, 1902, for payment to, by Mut. Life (R. A. McC), 1523; voucher
of Mut. Life signed by (ex. 276), 1568; connection of, with L. W. Law-
rence & Co. (L. B.), 1552
testimony of, 1565; on whereabouts of A. C. Fields, 1507; on voucher
signed by him of Nov. 7, 1902, 1568
Root:
Presence of, at conversations between Ryan and Harriman (T. F. R.),
3645-3651; (B. H. H.), 3905; connection of, with Equitable alfairs in
Albany (E. H. H.), 3918
Rope and Twine Securities: in G. H. Squire, trustee account (H. G.), 893-
S94; connection oi G. H. Squire with (H. G.), 898
Index — Witnesses and Exhibits. 643
Roseufeia, Henry L. (supervisor of agencies In Equit.) : duties of, in
Equit Life (G. E. T.), 2642
Russel (agent for Life Association) :
agent for Life Association in transaction of changing policy No. 2834
from assessment to endowment policy (li. P. T.), 4088
Ryan, Tliomas F.;
bill of sale to, of Equit. stogk, 124; transfer to, of Equit. stock, 125;
power of attorney to, from trustees of Equit. stock, 126; agreement
of, with trustees for mutualization of Equit. Life, 129; interviews of
E. H. Harriman with, regarding Equit. stock ownership (E. H. H.),
3899-3901, (T. F. R.), 3469-3475, 3644-3652; relationship of Ryan and
Kelly to (J. T.), 4161
testimony of, 3459-3486, 3644-3653; on purchase price of Hyde's stock
in Equit. Life, 3459; on causes leading to purchase of Equit. stock,
3460-3461, 3462-3463, 3466; on control of Equit. stock, 3461-3462; on
execution of trust deed for Equit. stock, 3463-3464; ou his authority
in selection of directors of Equit. Life, 3464-3465; on rights of policy-
holders in elections, 3466-3467, 3477^3478, 3483-3484, 3486; on retire-
ment of his Equit. stock, 3406-3468; on propositions to share owner-
ship of Equit. stock, 3468-3475; on Harriman proposal for sharing
Equit. stock, 3469-3475; testimony enforced by district attorney, 3fi44-
3625; on purchase of additional shares in Equit., 3^75-3470; on his
relation to claims against Equit. by Mercantile Trust, 3476-3477; ou
his relations to management of Equit., 3480-3483; on his share in
Morton's election to Equit. Life, 3480-3481; on conditions of beneficial
stock ownership, 3484-3486; on his interests in insurance companies
other than Equit., 3477-3480; on his interest in Wash. Life, 3477,
4236-4237
Ryan & Kelly: , ^
sale by, for Wash. Life, of $125,000 N. Y. Stock Exchange face bonds
(J. T.), 4155; relationship of, to T. F. Ryan (J. T.), 4161
S
Saekett, Albert B., resolutions on death of, 29j.
St Louis -and Iron Mountain Railway 2nd mortgage 5's syndicate: partici-
pation of Equit. Life in (H. R. W.), 795-796, &?3-834
St. Louis, Iron Mountain & Southern Syndicate: participation and profit
in by G. H. Squire (G. H. S.), 2539
St. Louis, Rocky Mountain, and Pacific R. R. Syndicate, loan of Metr.
Life to (J. R. H.), 2077
St Louis & San Francisco underwriting syndicate: participation of Equit.
Life in (H. R. W.), 831-832, 921-922
St. Louis Terminal 4 per cent, bonds, purchase of, by G. W. Perkins for
N Y Life (G. W. P.), 932-944
Saint Paul Preferred, pro forma sale of, by N. Y. Life (1902) (E. D. It.),
' 280
St Paul & San Francisco underwriting syndicate, managers of, anci
participation of Equit. Life in (H. R. W.), 794
6'1'1: Index — Witnesses and Exhibits.
Salaries:
of chief governor of Bank of England (R. A. McC), 1428; of president
of Imperial Bank of Germany (K. A. McC), 1428; in Bankers' Life
(H. K. S.), 4252; in Empire Life employees (S. W.), 4038; officers
(S. W.), 4038; in Bquit. Life (W. A.), 139 (0. M. D.), 2427; in Life
Association (H. P. T.), 4077
In Metr. Life — yearly expenditure for (S. B. D.), 533; (ex. 314 and
J. R. H.), 194B; superintendents (H. f!), 2182
In Mut. Ben. (B. B. B.), 86
In Mut. Life — officers (R. H. McC), 1251; pay-roll of Dec, 1904 (ex.
264), 1299-1300
In Mut. Res.— statement of, according to office (ex. 527), 1881-1905,
3020-3023; statement of, according to individual (ex. 528), 3023; presi-
dent (G. D. E.), 2806
in N. Y. Life — officers (J. C McC), 78; agency directors and inspectors,
exs. 215, 216), 992-993
in Prov. SaWngs- oiflcers (E. W. S.), 3614 3615; in clerical dopiirt-
nieut (E. W. S.}, 'JO'SS
In Prud. Life— officers (J. F. D.), 3689; superintendents and assistant
superintendents (J. F. D.), 3762
Sanders, B. :
policy of, in Empire Life, No. 13,019 (ex. 740), 4047; call for extra
assessment on policy of (S. W.), 4047; letters to, from Supt. of In-
surance, May 9, 1905 (ex. 741), 4048; May 12, 1905 (ex. 742), 4048;
June 9, 1905 (ex. 743), 4048
Sands, representative of Mut. Life's legislative interests in Vlr (W. F. T.),
1191
Sanitary District of Chicago Municipal 4%'s :
joint account in, of N. Y. Life (ex. 128 and G. W. P.), 701
Savannah property of Prov. Savings Life;
book value of (W. N. E.), 3903, (W. T. G.), 4005; appraisal of (ex.
727), 4005; market value of (W. T. G.), 4006; exchanges of (W. T.
G.), 4006; mortgage on held by Prov. Savings Life (W. T. G.), 4007;
book and market value of. In 1903 (W. T. G.), 4008
Schiff, Jacob:
participation of, in L. I. Refunding 4's (G. W. P.), 689; connection of,
with Union Pac. Pref. stock (H. R. W.), 812
testimony of, 999-1050; on his joint connection, vs'lth Kuhn, Loeb & Oo.
and Equit. Life, 999-1013; on powers of directors, 1000; on powers of
executive officers of Equit. Life, 1001, 1009, 1011; on irresponsible pow-
ers of officers, 1012; on his refusal to join executive committee of
Bquit. 1001-1002; on sole power of majci-ity owner of stock, 1004, 1014;
on his qualification as director of Equit., 1002-1003; on Finance Com-
mittee of Equit. Life, 1004-1014, 1015 ; on general negotiations between
Equit. Life and Kuhn, Loeb & Co., 1015-1021 ; on share of Kuhn, Loeb
& Co. in financial transactions of Equit. Life, 1050-1051 ; on syndicate
transactions of Kuhn, Loeb & Co., 1018; on Union Pac. Preferred
stock syn., 1037-1049; on his ignorance of Bquit. Life's participation
in Union Pac. pref. stock syndicate, 1040-1047; on insurance report
Index — Witnesses and Exhibits. 645
Schlff, Jacob. — Continued:
of Mr. Hendricks, 1049-1050; on his testimony before Mr. Hendricks
on U. P. preferred stock syndicate, 1045 ; quotation from testimony of,
on allotments to G. H. Squire, 2541
SchlfC, Mortimer,
director of Mercantile Trust Co. (J. H. S.) 1034; denial of, of knowl-
edge of Equit. Life's connection with U. Pacific preferred stock syndi-
cate (J. H. S.), 1047.
Schlosser and Wood: voucher of Equit. Life to (ex. 396), 2491
Schwab, C. U.:
interview of, with Gov. Odell, regarding settlement of Od'ell's claim
(B. B. O., Jr.), 2402
Scott, E. W. (president of Prov. Sav. Life) :
connection of, with purchase of property by Equit. in Australia (F. W.
J.), 2843; (G. T. W.), 3010
testimony of, 3612-3041, 3855-3895, 3975-3972, 3979-3980, 4017-4026; on
original incorporation of Prov. Sav. and amended charter of 1886,
3612-3614; on officers and salaries, 3614,3615; on his relatives In
Prov. Sav. 3615-3616; on committees and fees, 3617-3618; on con-
nection of Shepard Homans with Prov. Sav., 3618; on origin of
his own connection with Prov. Sav., 3619-3620; o* acquisition of
Prov. Sav. stock by F. R. Hadley and loans to him, 3618-3625; on
collateral on Hadley loans, 3623-3624; on conditions leading to Had-
ley's presidency, 3627-3628 ; on sale of Prov. Sav. stock by Continental
Trust Co., 3625-3626; on his own purchase of stock and borrowing
from N. Y. Sec. & Trust Co., 3626, 3627-3628; on his payment of in-
terest on loan for stock purchase, 3864 ; on cash paid by him on stock
purchase of Provident Savings Life, 3864 •, on reduction of loan from N.
Y. Security & Trust Co., 3866 ; on transaction with Boswell and Buck-
ley in purchase of stock, 3859 ; on agreement between Boswell and
Buckley, regarding transfer of shares of Prov. Savings Life, 3867;
on connection of E. A. Dunham with purchase of stock,' 3618; on
payments to E. A. Dunham by himself and Prov. Savings Life, 3862;
on transfer to him, by E. A. Dunham of interest in Prov. Savings Life,
3864; on suit brought against him by Wm. Miller, 3864; on claims
against him by Hadley estate, 3866; on loan to Stewart Brown, 3867-
4021
on legal expenses and persons retained by Prov. Savings (ex. 673).
3638-3641; on tax litigation and connection of Hamilton therewith,
3638-3641, 3855; on retention of W. H. Buckley by Prov. Savings
Life, 3B64; on political contributions of Prov. Savings (ex. 700), 3868;
on state examination of Prov. Savings, 3869
on his account with Equit., at time of leaving, 3865; denial of claims
on him of Equit. Life, 3867; on his relations to Equit. subsequent
to reslgnatiifci, 3889; on his correspondence with vice-president of
Equit (ex. 705, 705A, and 706), 3889; (ex. 707, 708), 3890
on fluctuations of surplus under different managements, 3628; on
profits and losses in 1904, 3629-3630; on insurance and investment
gains 3630; on ratio of assets to reserve, 3630-3634; on term busmess,
G46 Index — "Witnesses and Exhibits.
Scott, E. W. (president of Prov. Sav. Life). — Continued:
3634-3635; on falling off in insurance since 1899, 3635-3637; on ex-
penses, 3636-363T; on Increase of expenses as compared wifh Insur-
ance outstanding, 4022: on expense of medical department, 4023; on
sums assured, issued, and terminated in Prov. Savings Life, 1895-
1904 (ex. 702), 3186; on payments to policyholders and Increa.se of
assets, 1895-1904 (ex. 704), SS88; on gain and loss exhibits, 1895-1904
(ex; 709), 3892; on error In computing gains on mortality in 1897,
1898, 1899, 3894; on heavy mortality in 1904, 3888-3969; on gain! on
surplus interest in 1904, 3894; on excess of premium notes over
reserve, 4020
on real estate of Prov. Savings Life, cost and acquisition of, 3871-3883,
4021-4177; on enhancement of real estate, 3881-3969; on mortgages
on property of Prov. Sav., 3883; on appraisals of real estate, 3878; on
loans by Prov. Sav. on property owned by him, 3883
on specimen agency contract (ex. 723), 3969; on contingent bonuses to
agents, 3972; on supplementary agreement raising commissions on
non-participating business, 3225; on agents' balances and bonds,
3979, 4017; on local board plan of insurance, 4020; on traveling
expenses, 4021;- on his own Insurance in Prov. Sav. Life and other
companies and commissions thereon, 4025
Scottish Life Ins. Co. of Edinburgh, connection of H. Moir with as actu-
ary (H. M.), 3992
Searles, John E.: loan to, from Equit. Life (H. G.), 897-898
Securities: advisability of insurance department supervising movements
of (H. D. A.), 4472
Sec. Life and Trust Co.: refusal of insurance department to transfer
securities of Am. Union Life to (H. D. A.), 4471
Security Mutual Life Insurance Co.:
actuarial department: actuarial calculations, prior to 1899 (C. M. T.),
3437-3438; death rates, compared with American Table of Mortality
(C. M. T.), 3375-3377; method of calculation of lien and interest, on
OnderdoDk policy (typical of exchange of old for new policies) (D.
iS. D.) 3505-3511; distribution of surplus and assessments of premiums
on old policies (D. S. D.), 3511-3513; provisions to meet deficiencies
on policies where rates remain h.'ied at serenty live, 3513-3514;
computation of mortality (D. S. D.), 3514-3515; age-liea plan, as
applied to Cross policy (D. S. D.), 3515-3518; metbods of provision
for surplus (D. S. D.), 3519-3520), provisions for loading and ratio
©f commissions (D. S. D.), 3520-3.526; saving (in mortality for 1904
<D. S. D.), 3-520: decrease of accumulations, ]904 (D. S. D.), 3520;
comparison of reserves under stipulated premium law (D. S. D.),
S52.3-3529; surrender vaiues (D. S. D.), 3525-3529; provision regard-
ing accumulations to mortuary fund, ou Oostello policy, and sur-
render values on same (D. S. D.), 3520 3527; basis of calculation of
surrender values (ex. 654, and D. S. D.), 3.527 3529. 3531-3533; pro-
vision for change of rates of mortuary payments (D. S. D.), 3529;
actuaries (C. M, T.), 3392 3394
Index — Witnesses and Exhibits. 647
i'ecurity Mutual Life Insurance Co. — Continued:
agency department: contract with M. D. Moss (0. M. T.), 3333-3336;
advertisement of Pure Life Insurance (C. M. T.), 3426-3428; brolser-
age commissions (.0. M. T.), 3434-8448; form of general agents con-
tract (ex. 645, and C. M. T.), 3435-3436; Cofield's contract (C. M. T.),
3500-3501;' Renney's contract (C. M. T.), 3440-3442, (M. D.), ;
indebtedness of Kenney to company (C. M. T.), 3442; statement of.
account of A. S. Renuie with company, from 189C to 1905 (ex. 902),
4759; advances to Chicago agency (C. M. T.), 4759; agents' balances,
transfen'ed to Agency and Investment Co., 333t)-33bvi; maximum
commissions (C. M. T.), 3440; commissions of Alabama agency (C,
M. T.J, 3534
relations of, with Agency and luvejtment Co.: contracts with Agency
and Investment Co., February, 1894 (exs. 614, 615, 616, and 0. M. T:),
3329-3332; resolution authoriziijg further contract with Agency and
Investment Co., Feb., 1903 (ex. 621), 3344-3345; amount of advances
to company, prior to incorporation of Agency and Investment Co.
(C. M. T.), 3349; saving by contract with Agency & Investment Co..
Feb., 1903 (C. M. T.), 3360-3365; advances from Agency & Invest-
ment Co. (C. M. T.), 3431-8432, 3443; amount of recovery in case
of default on co'jitract with Agency & Investment Co. (C. M. T.),
3535-3537
assets and disbursements, 1887-1893 (C. M. T.), 3327
banli relations: to First National Banli of iiinghamton (C. M. T.),
3454-8456, 3457-3458, 8497; income on stock in First National Bank
of Binghamton (C. M. T.), 3491-3492; statement of monthly balances
of First National Bank of Binghamton (ex. 647), 3455-3456; to Mer-
cantile Nat. Bank of N. Y. (C. M. T.), 3457-3458; account with Mer-
cantile Nat. Bank (ex. 648), 3457.
relations of, to Bankers' Guarantee Fund Life of Atlanta, Georgia
(C. M. T.), 3500
relations of, to Binghamton Beet Sugar Co. (C. M. T.), 3492; interests
of in Binghamton business concerns (C. M. a'.), 3536.
card records (C. M. T.), 3413, 8498
commissions: on brokerage, 3435; on premiums (C. M. T.), 3534; to
Alabama Agency, 3534; to Cofield, 3500; to Renney, 3442, 4759
contingent fund (C. M. T.), 3451
contracts of Sec. Mut. with C. M. Turner, exs. 612, 615, 616, 618).
3323 ' ;
elections, methods of (C. M. T.), 3352
examinations: by state department, 1899 (F. H.), 4296; 1903, 1904,
1905 (F. H.), 4279
exhibits: 612. 613, 615, 616, 617, 618, 619, f.20, 621, P22, 623, 624, 627,
628, 629, 6.30, 641. 642, 643, 644, 045, 046, 047, 648, 652, 653, 654,
655. 994 . ,. .
expenses: ratio of loading to TC. M. T.). S42S; in transfer of policies,
1904 fC. M. T.), 3420; of home office, 3490; total of, for 1st year, 1903,
1.904. 34C9
648 Index — Witnesses and Exhibits.
Security Mutual Life Insurance Co. — Continued:
insurance in force, statement of (ex. 622), 3345
investments: committee on (C. M. T.), 3454; methods of (C. M. T.),
3404; relation of Agency and Investment Co. to (C. M. T.), 3487;
character of (0. M. T.), and statement of securities, 3497; in Illinois
Central Kailroad bonds (C. M. T.), 3497; in Oregon Short Line refund-
ing 4's (C. M. T.), 3497
lapses: experience regarding (D. S. D.), 3529
legal and legislative expenses and interests: legal expenses, prior to
1897 (C. M. T.), 3448; from Dec, 1897, to Nov., 1905 (C. M. T.), 3449;
increase of in 1905, 3450
legislation regarding stipulated premium lavs^ of 1898 (C. M. T.), 3395,
3448 (F. W. J.), 3501
statement as to employment of attorneys (C. M. T.), 3449
statement regarding political and legislative contributions (C. M. T.)
3450
liabilities: gain under the N. Y. department as compared with Massa-
chusetts in computation of (D. S. D.), 3523
litigation: " strike suits," of 1905, 8450; with state of Kentucky (0.
M. T.), 3451, 3458; action against Company by Crane & Gail (C. M.
T.), 3451; suit against company in Denver (C. M. T.), 345
loadings: of 1903, 1904 (a M. T.), 3439; method of (D. S. D.), 3519; ratio
of, to commissions (D. S. D.), 3519
loans, on collateral, supervision of (C. M. T.), 3491; to Bingham ton Beet
Sugar Co. (F. W. J.), 3491, 3504; to D. H. Kiefer (C. M. T.), 3494;
record of, for 10 years (ex. 652), 3495
on real estate mortgage; responsibility of investment committee con-
cerning (C. M. T.), 3496
nepotism (C. M. T.), 3356
new business: expenses for 1903, 1904 (0. M. T.), 3439; brokerage com-
missions, 3434
officers and directors: first directors (C. M. T.), 3322; officers elected at
time of organization (O. M. T.), and their gratuitous services, 3323;
letter to Board of Directors from C. M. Turner,, on presidential office,
3341; commissions of (C. M. T.), 3497; rebates ot (C. M. T.), 3535;
non-participation of, in syndicate underwritings (C. M. T.), 3498
organization and government: organization as assessment company (C.
M. T.), 3322; declaration of incorporation (C. M. T.), 3323; status at
time of organization of Agency and Investment Co. (C. M. T.), 3388;
history as assessment company (C. M. T.), 3390; re-incorporation as
old-line company (C. M. T.), 3400; source of money paid for incorpora-
tion as stipulated premium company (C. M. T.), 3102; re-incorporation
to avoid stipulated premium law (H. D. A.), 4456; present manage-
ment (C. M. T.), 3351
policies, original form of (C. M. T.), 3363; and provisions of percen-
tages on death claims of (C. M. T.), 3375; issuance of bonds on (0.
M. T.), 3376; new scale rites adopted 1889 (C. M. T.), 3380; registra-
tion of (C. M. T.), 3403. 3407; rights after reincorporation to levy
assessments upon and to transfer earlier (C. M. T.), 3412; actual uud
Index — Witnesses and Exhibits, 640
Security Mutual Life Insurance Co. — Continued.
expected losses on those less tban one year old (0. M. T., 1903,
34J^; 1904, 3441; increase of rates on first policies (0. M. T.), 3449;
exchange of old for new (D. S. D.), 3505, 3512; segr»gation of (D. S.
D.), 3514; savings to company of, on lapses, 1904 (D. S. D.), 3520
Gostello policy [No. 23239), discussion of (D. S. D.), 3388; Cross policy
(No. 1104), discussion of (D. S. B.), 3515; letter from Rev. John
McVey, regarding policy 144, 3498; memorandum on policy of H.
W. Onderdonk, No. 48628 (C. M. T.), 3422
level or stipulated premium policies: provisions regarding (C. M. T.),
3375, 3394
policies: old assessment; amounts of premium assessments (D. S. D.),
3511; and basis of calculation for surrender value on (ex. 654, and
D. S. D.), 3527
probable life policies: nature of, and circularising methods regarding
(D. S. D.), 3424, 3518
twenty-payment life , guaranteed additions; form of, and discussion
concerning (ex. 642 and C. M. T.), 3416
policyholders: notices to, for annual meeting (O. M. T.), 3351; election
rig-hts of (C. M. T.), 3537; impotence of, regarding president's salary
(C. K. T.), 3390; provision in declaration of incorporation for pay-
ments of (C. M. T.), 349S; payments to owners of old policies (D. S.
D.), 3529
premiums: division of, into three funds (C. M. T.), 3389; income from
1886-1904 (ex. 623), 3345
proxies (C. M. T.), 3537
real estate: list of mortgages on (ex. 653 and 0. M. T.), 3496; system
of appraisal of (C. M. T.), 3496; cost of home office building (C. M:
T.), 3487; rental of offices by First National Bank (C. M. T.), 3488;
ratio of taxes to gross rental (0. M. T.), 3490
reports: basis of, prior to Agency & Investment Co. (C. M. T.), 3387;
subsequent to Agency & Investment Co. (C. M. T.), 3388
salaries, between 1S94 and 1902 (CM. T.), 3331, 3336, 3340; list of, for
1905 (exs. 627, 629, and C. M. T.), 3354, 8359; increase of (0. M. T.),
3359
surrender values: computation of, on assessment policies (ex. 654), 3529
surplus: provisions for (D. S. D.), 3519; amount of, at time of change
into Old Line Legal Reserve Co. (D. S. D.), 3529; for 1899 (D. S. D.),
3.132; for 1904 (D, S. D.), 3532; real increase and apparent decrease of
(C. M. T.), 3.133; discrepancy of reports on, to Massachusetts and
N. Y. Depts., 1904 fD. S. D.), 3538
trustee accounts (C. M. T.), 3453
Select and ultimate method, see Dawson
Seligraan, .T. & W. & Co.:
participation of, in Sanitary District of Chicago Municipal 4%'s (G. W.
P.), 702; managers of St. Paul & San Francisco underwriting syndi-
cate (H. R. W.), 794
Sewdl and Pierce (attorneys for itut. Life)' relations of Mut. Life with
(R. A. McC), 1524
650 • Index — Witnesses and Exhibits.
Seymour Hotel: transactions of Metr. Life concerning (F. H. B.), 2139
Shanalian: connection of, with state insurance department (F. H.), 4262
S'hapira policy (29,771) in Prov. Savings Life: Increase of premium rate
and lien on (H. M.), 3889
Sherer, Wm.: (president of Union Nat. Banli and director of Fidelity
Trust Co ) (J. S. D.), 3G09
Shield's resolution, for maintaining rates of Mut. Res. at original age
(G. D. E.),3162
Shipley (president of Prov. Life & Trust Co. of Philadelphia) : appoint-
ment of, as member of re-organization committee of Reading Railroad
(J. M. K.), 4716
Shipman, F. H. (assistant treasurer of N. Tf. Life) :
connection of, with drawing up list of syndicate participations of N. Y.
Life (M. M. M.), 2845; letter from, to Mr. Keeler of the N. Y. Sec.
& Trust Co., Aug. 14, 1902 (ex. 490), 2910; letter from to N. Y. Sec. &
Trust Co. (ex. 401), 2910
testimony of (Sept. 13), 382; on Toronto, Hamilton & Buffalo transaction,
382 ; on his personal participation in (syndicates, 387 ; on joint account
transactions and profits to bankers, 385 ; on relation of Goldman, Sachs
& Co. to N. Y. Life (Chicago & Alton), 385; (Chicago & Northwest),
387; on joint account transaction with W. S. Fanshawe & Co. (C. B. &
Q.), 390
Short, E. L. (solicitor of Mut. Life) :
payments to, by Equit. Life, for services as counsel (A. W. M.), 1061,
1066; methods of payment to and accounting of (R. O.), 1329, (R. A.
G.), 1341, (W. R. G.), 1351; legislative work of (R. A. G.), 1343;
work of. In Bowles' movement (R. H. McC), 1323, (G. T. D.), 1324;
consultation of A. Hamilton with (A. H.), 4427
Sickles, George H. (real estate agent of Equit. in Buffalo) :
testimony of, 4729; on his connection with Equit. Life, 4729; on inter-
views with G. E. Tarbell regarding commissions and rebating, 4729 ; on
rebating in Buffalo, 4732; on his reasons for retiring from insurance
business, 4732
Sioux City & Pacific 1st 3% bonds, connection of, with Chicago & North-
west syndicate (H. R. W.), 863
Sloane, John, trustee of Equit. stock, 116
Slocum disaster, claims paid and premiums on claims (Mr. Hoffman), 3774
Smith, A. B. (policyholder of Empire Life) : letter from son of, to In-
vestigating Com. regarding policy of, 4048; amount paid to widow of
(S. W.), 4051
Smith, Charles J. :
testimony of, 1238; on his salary, 1738; on his connection with Tele-
graphic News Bureau, 1738 ; on his connection with Mut. 1738
Smith, F ank E. (real estate broker) :
employment of, by Metr. (J. R. H.), 2137; commissions paid to, by Metr,
(F. H. E.), 2141; broker in exchange transaction of Prov. Sav. Life
(E. W. S.), 3876
Index — "Witnesses and Exhibits. 651
Smith, Lester B.: letter from, to Investigating Com., regarding policy in
Empire Life on the life of A. B. Smith, 4048
Smith, Stephen M. (2nd assistant treas. of Mut.) : testimony of, on net
profits on sales in Mut. 4332
Solladay, policy orf, transferred from Northwestern Life to Mut. Res., and
lien and additional charges on same (G. D. E.), 3299; letter to, from
Mut. Res. regarding his policy (ex. G04), 330
Southern Pac. R. R. 1st Refunding 4's:
participation of Bquit. in (H. R. W.), S86; participation of Mut. Life
in (F. C), 430, (A. D. J.), 557, (R. A. McC), 1655; joint account in,
of N. Y. Life (ex. 122 and M. M. M.), 695
Southern Pacific 25 year 4% gold bonds :
participation of Equit. in (H. R. W.), 797, (exs. 163, 164, 165), 839, (J.
H. H.), 2238, (G. H. S.), 2552; connection of G. H. Squire land asso-
ciates with (H. R. W.), 797, (G. H. S.), 2o52; profit in, by Speyer (G.
H. S.), 2552
Southern Railroad Collateral Trust bonds Mut. Life's deal in (F. C), 158
Southern Railway Preferred, participation is, ty N Y. Life (E. D. R.),
254
Southern Railway Notes, Series C, syndicate: participation of Equit.
Life in (H. R. W.), 819, 878
Speyer, James, trustee of Mut. Life and participator in Cuban bond
syndicate (F. C), 402; profit of, in Southern Pac. Syndicate (G. H. S.),
2252
Speyer & Co. :
connection of, with Central Pacific refunding syndicate (H. R. W.),
797, 836; managers of Chicago, Rock Island & Pacific 4's syndicate
(H. R. W.), 796; syndicate managers of Cuban bonds and connection
with Mut. in (F. C), 401-411, (J. T.), 411; managers of Mexican
National Readjustment syndicate (H. R. W.), 806, 865; connection of,
with Southern Pac. bonds transaction (F. C), 431, (H. R. AV.), 797,
837; connection of, with U. S. of Mexico bonds transaction (F. C),
435
Spriigue, r^r., system of, regarding reserve (E. McC), 1912
Squire, G. H. :
accounts of, from books of Williamson and Squire (exs. 937, 938),
4734; letter from, to W. T. Cornell, regarding G. H. Squire trustee
account (ex. 200), 920; connection of, with account of L. M. Bailey,
trustee (L. M. B.), 2468; negotiations of, with Kuhn, Loeb & Co.
(J. H. S.), 1015; participation list of, in syndicates managed by
Kuhn, Loeb & Co. (J. H. S.), 1024; syndicate allotments to, by Kuhn,
Loeb & Co. (J. H. S.), 1028; connection of, with C. B. & Q. purchase
transaction (H. R. W.), 859; checks of, to Equit. Life in C. B. & Q.
purchase trpnsaction (H. R. W.), 859; allotments of. In C. B. & Q.
purchasing syndicate (J. H. II.), 2242; transactions of, In stock of
'Lawyers' Title and Lawyers' Mort. Ins. Co. with Williamson and
Squire (ex. 869 and G. H. S., Jr.), 2330; transactions in stock of
Lawyers' Title and Lawyers' Mort. Ins. Co. through American Deposit
652 Index — Witnesses and Exhibits.
Squire, G. H. — Continued.
& Loan Co. (G. W. J.), 2338-2378; written statement of, regarding
Lawyers' Title Ins. Co. stock transaction (ex. 378), 2403; payments
to, by Am. Dep. & Loan Co. of profits from Lawyers' Title and Law-
yers' Mort. Ins. Cos. (exs. 515-520) (R. S. R.), 3016; partleipatipn
of, in P. B. W. & L. I. Refunding 4's (H. R. W.), 881; voucher of,
in connection with St. Louis & San Francisco underwriting syndicate
(H. K. W.), 837; connection of, with Union Pac. convertible bond
syndicate (H. R. W.), 842; connection of, with Union Pac. Reorgani-
zation syndicate (H. R. W.), 830; allotment to, in West Virginia,
Central & Maryland Syndicate (J. H. H.), 2212; see also Squire,
G. H., Trustee inability of, to testify (G. H. S., Jr.), 2328, (E. S. R.),
2403
deposition of, 2515; deposition of, read on record, 3001; on transac-
tion with Equit. in purchases and sales of Lawyers' Title Ins. Co.
stock, 2515; on allotments of L. T. Ins. Co. stock to officers of
Equit., 2516 ; on sale on account of, by Williamson & Squire of
100 shares of L. T. Ins. Co. stock, June 17, 1901, 2617; on sale on
account of, by Williamson & Squire of 100 shares of L. T. Ins. Co.
stock, Nov. 22, 1901, 2518 ; on his profits on transactions of Equit.
with L. T. Ins. Co., 2519 ; on transactions of Equit. in purchases
and sales of Lawyers' Mortgage Co. stock, 2526 ; on his profits on
transactions of Equit. with Lawyers' Mort. Co., 2526 ; on origin of
his trustee account, 2529 ; on deposits to his account, 2530 ; on
checks on his account, 2532 ; on check on his account to order of
T. B. Jordan for $2,000, 2532 ; on check on his account for $100,000
to order of J. W. Alexander, 2532 ; on check on bis account for
$75,000 to Equit. Trust Co., 2.i34 ; oh syndicate allotments to
G. H. Squire and associates, 2536; on syndicate participations
under name of Louis Fitzgerald, 2537; on his methods of entering
deposits, 2537; on his participation in Manhattan Railway Stock
Underwriting Syndicate, 25S9 ; on his participation in Chicago- &
Alton Syndicate, 25-S9 ; on his participation in, and profits from
St. Louis, Iron Mountain & Southern Syndicate, 2539 ; on his
methods of obtaining and dividing allotments, 2540; on his methods
of dealing with syndicate profits, 2540; on allotments out of Kuhn,
Loeb & Co.'s shares, 2542 ; on his responsibility in division of
allotments in C. B. & O. Srndicate, 2544; on his participa-
tion in Penn. Coal Purchase Syndicate, 2548; on purchase by him
of bonds in Tobacco Syndicate, 2538; on purchase by him of bonds
in 3rd Avenue Syndicate, 2549 ; on his profits and losses in James
H. Hyde and Associates syndicates, 2550; on his losses in Naviga-
tion Syndicate, 2551; on his losses in U. S. Realty & Construction
Co., 2551; on his lossess in U. S. Steel Co. Syndicate, 2551
Squire, G. H., trustee:
account of (H. R. W.), 893, 904; (J. H. H.), 2206; (R. S. R.), 2406; con-
nection of, with L. M. Bailey, trustee account (H. G.), 912; (exs. 201,
202), 920; (ex. 207), 929; (H. R. W.), 998; (L. M. B.), 2469; connection
of, with M. Hartley account (H. G.), 905; }etter from G.' H. Squire to
Index — Witnesses and ISxJiihits. 653
Sqtiire, G. H., trustee. — Continued.
W. T. Cornell regarding (ex. 200), 920; connection of Jordan witli
(H. G.), 905; with American Deposit & Loan Co. (H. R. W.), 842, 893;
(H. G.), 894; (H. R. W.), 918; (H. G.), 919; opening of, with American
Deposit & Loan Co. (H. G.), 898; closing of, with Am. Deposit & Loan
Co. (H. G.), 911; banli boolj of, with Am. Dep. & Loan Co. (ex. 193),
895; endorsement of checlss of (H. G.), 902; drafts drawn on (H. G.),
913, 919; deposits in bank, not appearing on accoimt ($40,000, July
12, 1901) (H. 6.), 907; $65,000 paid to, by Mercantile Trust Co. (Oct.
4, 1902) (H. G.), 913; item of credit from Western Nat. Banli (Oct. 5,
1903) (H. 6.), 912
item of profits in, from Chicago & Alton syndicate (H. G.), 904; from
Chicago & Northwest syndicate (H. R. W.), 873; (H. G.), 903; from
iN. T. City 3% bonds syndicate (H. G.), 900; from Penn. 31/2 per
cent, syndicate (H. G.), 904; items concerning Pittsburg Coal loan
(H. G.), 905
letter from, to A. W. Krech (ex. 202), 920; possession of banli book of,
of Thos. D. Jordan (H. G.), 911
participation of, in B. & O. convertible debentures (H. G.), 904, 911; in
Chicago & Northwest syndicate (H. G.), 904-911; in Mercantile
Marine syndicate (J. H. H.), 2206; in Penn. Co.'s 3% per cent, syndi-
cate (H. G.), 904; in Union Pacific convertible syndicate (H. G.), 904;
In West Virginia Central and West. Maryland purchase syndi-
cate (exs. 195, 196, 197), 907
relations of, to J. H. Hyde, in Navigation syndicate (H. G.), 914;
(H. R. W.), 917; relations of, to Equit. Trust Co. in Navigation syn-
dicate (H. G.), 914; (H. R. W.), 917; letter to, acknowledging $62,500
in Navigation syndicate, 914; participation of, in Navigation syndi-
cate (H. G.), 914; (H. R. W.), 917
Squire, G. H., Jr.:
testimony of, 2328, 2375; on ability of his father, G. H. Squire, to tes-
tify, 2329; on transactions of Williamson and Squire with J. H. Hydo,
2331; on transactions of Williamson and Squire with T. B. Jorcliii\
2330; on transactions of G. H. Squire in Lawyers' Title and Lawyers'
Mort. Ins. Co. stock with Williamson and Squire and Equit., 2334;
denial by, of purchase of Lawyers' Title Ins. Co. stock fof acyoiie
but T. D. Jordan and J. H. Hyde, prior to Oct. 11, 1904, 2341: on
payments for stock of L. T. and L. Mort. Ins. Co. on account of J. H.
Hyde and T. D. Jordan by Am. Dep. & Loan Co., 2375; on ;iis snowi-
edge of Hyde, Squire* & Mclntyre account, 2376; on checks from pro-
ceeds from securities on accounts with Williamson and Squire of G.
H. S., T. D. J., W. H. McI., Hyde, Squire and Mclntyre, and Equit.
Trust Co. (exs. 370-376 A7, 2376
Squire, G. H., and associates:
participation of, In syndicates managed by Kuhn, Loeb & Co. (J. M. S.),
1027; participation of, in C, B. & Q. purchase (H. R. W.), 849; con-
nection of with Southern Pacific 4% gold bonds (H. R. W.), 798, 837
Standard form of life ins. policy, opinion of J. A. McC. regarding, J 101 —
65
654 Index — Witnesses and Exhibits.
Standen (actuary of U. S. Life), statement of, before Actuaries' Soc'ety
of America, regarding graded commissions to agents, 4605
State Life Ins. Co. of Indiana:
failure of, to reply to request for information for gain and loss exhibit
(M. M. D.), 4756
" The Statement: " connection of Mut. Life with (O. J. S.), 1746
State Mutual Life Ins. Co. of Worcester (unexamined):
statement of, 4807; history and administration of, 4808; bank balauces
of, 4809; commissions of, 4809; documents furnished by, 4807; fees of
directors, 4808; insurance of, in force, 1904, 4810; investments of, 4808;
legal retainers of, 4808; legislative payments of, 4808; loans of, on
collateral, 4809; salaries of, 4808; mode' of dividing surplus, 4830;
syndicate participations of, 4808
State Supervision of Insurance:
origin of, in U. S. (J. A. MeC), 1079; in England (J. A. MeC), ^083;
(J. F. D.), 3794; disadvantages of (J. P. D.), 3793
Steigman, S.: transactions of, with Equit., 1902 (J. G.), 2445
Steinam, B. S.: transactions of, with Equit., 1902 (J. G.), 2445
Stevens, WlUlam E. (secretary of the Prov. Sav. Life): testimony of, on
his duties. 3996
Stevenson: letter to, from Mr. Burnham on Moss commissions on transfer
business (ex. 580), 3245
Stewart, Prof.: estimates in Mut. Life prepared by (E. McC), 1798
Stewart, W. B.: connection of, with Equit. (S. S. McC), 2488
Stipulated Premium Law (provision for reserve fund): discussion of (H->
D. A.), 4066; connection of L. F. Payn with (L. F. P.), 4514
Stocli ownership of insurance companies and stock transaclions through
trust companies, advisability of (J. A. McC), 2956
Stokes, Henry B. (president of Manhattan Life) :
testimony of (Dee. 29), 4622-4651, 4659-4665; on character and organi-
zation of Manhattan Life, 4622; on legal expenses of Manhattan Life,
4627; on loans of Manhattan Life, 4629; on relations of Walter C
Stokes & Co. to Manhattan Life, 4630; on real estate of Manhattan
Life, 4632-4634; on voting and proxies, 4634-4636; ot» agents and their
compensations, 4637-4638; on comparative expense of business of Man-
hattan Life, 4559-4600; on collateral loans of Manhattan Life, 4660-
4661; on bank balances and rates of Manhattan Life, 4670-4671; on
distribution of surplus and failure of company to issue scrip, 4649-4651
Stokes, Howard K. (third vice-pres. and treag. of Bankers' Life): '
connection of, with Knickerbocker Investment Co. (H. P. T.), 4097; suit
brought by, on behalf of minority interest of Knickerbocker Invest-
ment Co. against Townsley and Flske (H. P. T.), 4105
testimony of, 4248, 4252; on securities (ex. 821-822), collateral loans
(ex. 823), syndicates and political contributions of Bankers' Life,
4248; on salaries, 4252; on commissions and new business, 4253; on
reduction in expenses, 4256; on investment Pere Marquette E. B.
consolidated mortgage, 4256
Stokes, Walter C: director of Manhattan Life (H. B. S.), 4630
Index — Witnesses and Exhibits. 655
Stokes, Waller C. & Co.: relations of, to Manhattan Life (H. B. S.), 4630
tenants of Manhattan Life Building (H. B. S.), 4632
Stone, Judson (Vice-pres. of Empire Life since 1893) (S. W.), 4034
Storm, George:
payment to, for commuted renewal commissions by Mut. Res. (G. D.
B.), 3179, 3286; assignment to, by G. Merriam (ex. 590), 3212; vouchers
of payments to, by Mut. Ees. (exs. 591, 592, 503, 594, 595, 596, 597,
598), 3288; cancellation of contract of, with Mut. Reserve (ex. 600),
3290; assignment of, to W. Porter (ex. 599), 3290
Strong, Sturgis & Co.:
relations of, to Cuban Bond Syndicate (F. Co.), 184; 405; purchase
through, by C. Gilbert of stock of Lawyers' Mort. Ins. Co. (G. C. G.),
4489; relations of, to Mut. Life (G. G. H.), 4558; connection of, with
members of Finance Committee of Mut. Life in Lawyers' Mort. Ins.
Co. (G. G. H.), 4554
Sub-standard insurance:
practices concerning, in N. Y. Life (J. A. McC), 1090; loans on risks
(N. Y. Life) (J. A. McC), 1106, (Globe Mutual), 1107; premiums in
(X. Y. Life) (J. A. McC), 1108; advancing the age in (Equit. Life) (R.
W. AV.), 1111; lien against policy (N. Y. Life) (R. W. W.), 1111;
treatment of, in Prudential Ins. (J. K. G.), 8750
Stillman: connection of, with Union Pac. Pref. stock (H. R. W.), 812
Sullivan, Walter S.:
connection of, with advertising of Mut. Life (W. R. G.) 1359; state-
ment of, regarding advertising expenses for 1904 (ex. 292), 1755
testimony of, on advertising of Mut., 1753
Sullivan & Co.: relations of, with Western Pac. Syn. (S. B. D.), 520
Sun Life of Conn.: industrial business of, acquired by Metr. Life (H. F.),
2191
Syndicate participations and practice, see individual companies
T.
Tables (actuarial):
used in general (J. A. McC), 1079; American experience (J. A. McC),
1079; Craig's Impaired Life (J. M. C), 1978; Farr's, showing mor-
tality rate in England (J. R. H.), 1930; (H. F,), 3844; healthy male
table in Canada (G. D. E.), 3150; increasing life and endowment (H.
F.), 3847; infantile endowment (J. M. C), 2000; infantile whole life
(J. M. C), 1997; mortality table in industrial dept. of Metr. Life (J.
M. C), 1979; of mortality rate in Prov. Sav. Life (H. M.), 3988;
Northampton and Carlisle (J. A. MeC). 1079; whole life compared
with increasing life and endowment (H. F.), 8849; of ratio of actual
to expected losses in Prov. Sav. Life (H. M.), 3926-3989
Taggart, W. G.: connection of, with state insurance department (F. H.),
4261
Tarbell, Gage:
commutation of renewal commissions for (A. W. M.), 3004; policies of,
issued under general agency contracts (G. W. P.), 2878; commissions
received by on his own insurance (G, W. P.), 2873; justiticatiou of
650 Index — Witnesses and Exhibits.
Tarbell,. Gage. — Oontinued.
payment to, of 7 per cent, commission (G. W. P.), 2877; conversation
of, with G. H. Sickles on rebating, 4729; and commissions to agents,
4729; statement by, of metbod of calculation of renewal commissions
to (ex. 928), 4728
testimony of, 2507; on his participation In International Mercantile
Marine syndicate; on Ms participation in U. S. Kealty Oo. syndicate,
2o<yT; on account of G. H. Squire, trustee, with Equit., 2507; on
special accounts held by Equit. in names of employees; 2507
on connection of Equit. with legislation, 2511; on legislative inter-
ference, 2587; on connection of T. Coman with Equit., 2586
on advisability of complete publicity in Insurance matters, 2723; on
prubllshed lists of policyholders, 2725-2726; on repeal of Section 56
of Insurance Law, 2727; on limltatiooa of insurance business; 2728;
on limitation of expenses, 2730; on estimation of profits, 2731 ' •
on expenditures for acquisition of new business, 2588; on methods of
procuring new business, 2621
on agency methods, rates of commissions to agents, 2589^2646; on
history of agency commissions, 2597; on rebating, 2611, 2697; on
bonus system, 2610; on twisting, 2618; on agency advances, 2624;
advances to Bohm & Bro., 2706; to Haynes, 2706; on Mix's indebted-
ness to Equit, 2632-2707; on advances to Powells, 2707; on com-
parison of agents' advances with other companies, 2710; on losses
on agents' advances, 2702; on marginal commissions to agents,
2707; on agents' balances, 2707; on agency contracts prior to 1905,
2645; on Wood's contract (ex. 427 A and 427B), 2705; on compara-
tive merits of gei^eral agency and salaried management of systeiw,
2680; on conventions of agents and expenses for same, 2690; on' mis-
leading circulars (history of Kobinson circular), 2693
on commissions on insurance policies, 2676; justiflcat'lon by of his own
commissions on policies, 2697; on commutation of his renewal com-
missions, 2704
on benefits of insurance, 2621; on convertible policies, 2647; on com-
parison of participating and non-participating policies, 2648; on com-
parison of annual and deferred dividend policies, 2661; on ad-
vantages of deferred dividend policies, 2712; on objections to
deferred dividend system, 2720; on desirable contingent fund in
addition to legal reserve, 2714; on surplus, 2649; on increased taxes
on premiums, 2662; on relations of taxes to assets, 2664; on alleged
non-payment of stipulated premium, 2701; on receipts in premiums,
2703
on his traveling expenses, 1904, 2685; on his practice regarding ex-
pense vouchers, 2685; on private car of Equit., 2687-2707; on his
total traveling expenses from January, 1901, to January, 1905, 2226;
on Anna L. Amendt, 2642-2643; on travels of Miss Amendt, 2726
on answers to advertisements, 2708; on Austi-alian Mut. Erovidence
Society, 2674
correction in testimony of (ex. 93), 4728
Index — Witnesses and Exhibits. 657
Tatlock, John (president of Washington Life Insurance Co.):
testimony of, 4109; on his election to presidency of Wash. Life, 4109:
on his connection With Mut. Life, 4109; on incorporation of Wash.
Life, 4109; on Increase of capital stock of Wash. Life, 4111; on oflBcers
and their election, 412; on connection of 0. H. Allen with Wash.
Life and with Morton Trust Co., 413; on committees of Wash. Life,
4114; on reorganization in Wash. Life iii 1904 and reasons for, 4115;
on his efforts to reform methods in agency field of Wash. Life,
4117; on his efforts to reform methods In oflBce of Wash. Life, 4117;
on reduced premium rates on participating and non-participating
policies in Wash. Life under new management, 4118; on compari-
son of average cost of new sort of insurance with old, 4123; on rate
of commissions on participating and non-participating policies, 4123;
on difference In cost to policyholders of participating and non-partici-
pating insurance, 4178; on loading of participating premiums for the
purpose of providing dividends, 4181; on exhaustion of loading on
premiums by expenses, 4181; on method of calculating annual divi-
dends In Wash. Life and Mut. Life, 4164; on increase of surplus,
4166; on actual net earnings, 4160; on dividends paid to policyholders
for first nine months of 1906, 4166; on deferred and annual dividend
policies In insurance companies, 4167; on method of computing de-
ferred dividends under former administration, 4167; on computation
of deferred dividends under present administration, 4167; on his
efforts to prevent giving of estimates, 4168; an average time in whul.
surplus accumulates upon a policy, 4170; on provisions of Mass. law in
re-accumulation of assets, 4169.
on amount of business in Wash. Life placed through agents, 4124; on
Mut. Ben., 4122-4123; on comparison of business written in Mut. Life
from 1894 to 1899 with Mut. Ben., 4125; on different forms of policies
In Wash. Life, 4126; on proportion of business in Wash. Life on
life and limited payment policies, 4126; on classes of life insuraiice,
4127; on difference In rate of premium on 20-payment and ordinary
life, '4126; on reduction of loading on premiums in new form of
pou'cy, 4127; on reduction of expenses, 5480; on improvement iu
agents' accounts, 4129; on advantages to agents, 4129; on agents-
balances for 1904 and 1905, 4129; on elimination of salaries of agents,
4138- on commissions to agents, 4130; on comparison of rates of
commissions of Wash. Life, with Mut., N. Y. and Equit. Life, 4133;
on amount to be profitably expended on^ new business. 4133; on
amount of new business for which Wash. Life could profitably pay,
4136; on ratio of first year's expenses in Wash. Life to loading on
premiums, 4137
on campaign and legislative payments of Wash. Life, 4187
on surrender value of policies in Wash. Life, 4119 ; on relation of policy-
holders to Insurance companies, 4121 ; on elimination of loan features
from policies in Wash. Life, 4122; on comparison of mortality, in in-
surance companies paying cash surrender values with companies th.it
do not 4122 4125; on distribution of profits from elimination of casli
surrender values, 4123; on comparison of Mut. Life (non-cash sur-
render business), and Mut. Ben. (cash surrender business), 4125
c;,"iS Index — Witnesses and Exhibits.
Xatlock, John (president of Washington Life Insurance Co.): — Continued,
on bank balances of Wash. Life at end of 1904, 4150; on bank ac-
counts of Wash. Life. 4151; on rates of interest on bank accounts,
4152; on fluctuation of bank account with Morton Trust Co., 4153; on
investment in securities by Wash. Life, 4141 ; on amount invested in
securities since Jan. I, 1905, 4143 ; correction of his own testimony re-
garding investments, 4174 ; on investments in American Tobacco, 4178 ;
on his reasons for closing out stock of America Tobacco securities,
4147 ; on industrial securities, 4160 ; on buying securities for re-sale
at a profit, 4174; justification by, of purchase and sale of securities
by Wash. Life, 4175; on authorization of Finance Committee for pur-
chases and sales made by company, 4176 ; on securities, purchased
by Wash. Life from Morton Trust Co., 4178 ; correction of his own
testimony as to stock purchases from Morton Trust Co., 4182
on investment by Wash. Life in real estate, 4141 ; on amount of bond
and mortgage loans in 1905, 4142; on real estate holdings and in-
vestments in bond and mortgages, 4143; on disadvantages of in-
vestments in real estate bonds and mortgages, 4174, 4177; on real
estate investments by insurance companies, 4177 ; on disadvantages of
collateral loans by insurance companies, 4176
on Australian Mut. Provident Society, 4122 ; on his connection with
foreign business of American companies, 4173 ; on American Insur-
ance companies doing business in foreign countries, 4173 ; on allow-
ance of $12. per month to employees, presumably for lunches, 4115;
correction of his own testimony on net premium rates used in comput-
ing participating rates on preferred class policies, 4174
Taxation of Insurance companies:
amount paid for from 1895-1904 (A. H.), 4428; amount saved by
Hamilton bureau (A. H.), 4432; avoidance of, by borrowing non-
taxable securities (Central Bank from N. Y. Life) (T. M. B.), 2965;
(E. D. R.), 2077; construction of tax law as regards Prov. Sav. (E.
S.), 3855 '
litigation concerning (1902-1904) (J. A. McC), 1143, (J. J. M.), 4536;
names of companies appearing in, and names of domestic companies
represented by Hamilton (J. J. M.), 4538; rebates to domestic com-
panies in (J. J. M.), 4539; rebates to foreign companies in (exs. 863
and 864), 4540; connection of W. F. Thummel with (W. F. T.), 1184.
Taylor, Jerome, shares of PruS. Life held in trust by J. F. D.), 3697
Taylor, Lester (clerk in law dept. of Equit.), connection of, with Eqult,
2471
Taylor, W. H. (vice-president of North American Trust Company) : pur-
chase from, by Prov. Sav. Life, of N. American Trust Co. stock, 4026
Terrlck, J. Hooper, former chairman of executive committee, of Mut Life
(R. O.), 1324
Texas, inquiry of state of, into campaign contributions of, N. Y. Life (J.
A, McC), 1132
Thebaud, Louis A. (in charge of agency dept. of Mut. Life):
relationship of, to R. H. McCtirdy (R. H. McC), 1218; association of,
with 0. H. Raymond & Co. (R. H. McC), 1218, (C. H. E.), 1227;
Index — Witnesses ami Exhibits. 659'
Tatlock, John (president of Washington Life Insurance Co.): — Continuecl.
money rec-eived by, from C. H. Ttaymond & Co. (ex. 250), 1230'; rela-
tions of, with Mut. (T. G. B.), 1316; connection of, with executive
special dept of Mut (K. A. McC.), 1530; connection of, with Widows
and Orplians Benefit Life Ins. Co. (R. A. McC), 1374
Third Avenue Syndicate: purchase of bonds in, by G. H. Squire (G. H.
S.), 2549
Thompson, H. H.: affidavit of, verified" Dec. 28, 1896 (ex. 974), 4753
Thummel, W. T.:
payments to, by Equit Life (A. W. M.), 1062; territory covered by
(A. W. M.), 1068; appearance of, before legislative committees (A. W.
M.), 1071; employment of, by N. Y. Life (J. A. McC), 1139; responsi-
bility of, in special legislation (Mut. Life) (R. A. 6.), 1343
testimony of, 1183; on his connection with influencing legislation, 1183;
on his connection with Mut. Life, 1183; on his connection with N. Y.
Life and A. Hamilton, 1186; on his accounting for disbursements,
1185; on his connection with legislation in Iowa, 1188; on his activity
in different states, 1191, 1215; on his association with different officers
of companiee, 119j, 1198; on nature of legisaltion regarding insurancR
and impossibility of policyholders looking out for their interests, 1201
Tick, Henry (vice-president of N. Y. Life) (1885-1904): salaries of (B. D.
R.), 214 .
Timpson, James (assistant treasurer .of Mut.) (R. A. G.), 31
testimony of, 411, 427, 1626, 1765; on Cuban bond transaction, 411; on
Penn. R. R. bonds transaction, 428; on his stock in Broolvlyn Wharf
and Warehouse Co., 1627; on his share in Wash. Traction & Electric
Co., 16.%; on his connection with Wash, Electric Co. transnction. 176.5
Title Guarantee & Trust Co.: relation of Mut. to (F. C), 466, 497
Tobacco Syndicate: purchase of bonds in, by G. H. Squire (G. H. S.1, 2'AS
Todd, J. Kennedy & Co. : syndicate managers of St. Paul & San Francisco
underwriting syndicate (H. R, "W.), 794
Todd, W. J.: connection of, with Equit. (L. M. B,), 2471
Ton.i. Lorenzo, originator of Tontine system: (J. A. McC), 1093
Tontine System:
origin of, in France (J.' A. McC), 1093; in insurance, originated by Equit
(J. A. McC), lOJM; results of (J. A. McC), 1096
Tontine, La Farge (J. A. McC), 1094
Toronto, Hamilton and Buffalo Syndicate:
participation in by N. Y. Life (B. D. R.), 327, (F. H. S.), 382; syndi-
cate account, and account of, vdth N. Y. Life (ex. 48), 382
Torrey, Morris W. (actuary of Manhattan Life):
testimony of, 4652; on calculation of profits and distribution of surplus,
4^2; on rate of lapses in Manhattan Life, 4652
Tousey, Donald B.: connection of, with A. Hamilton in rebate tax mat-
ter for U. S. Life (J. P. M.), 4598
Towner. Neil P. daw associate of Hamilton): testimony of, on Hamilton
checks. 1166
Towusend and McClelland:
connection of, with foreolosiirp business of Mut.. 1SOS-1902 fC, P, JIcC.)..
3046; voucher for payments to. by Mut ^ex, .5:58), H055; legal repre-
060 Index — ^Yitnesses and Exhibits
Townsend and McClelland— -Continued:
sentatives of Empire Lif-e in controversy with N. Y. State Ins. Do
partment (S. W.), 4045; fees to, from Empire Lifo (S. W.), 4043
Townsley, C. B. (or W.) (secretary of Life Association):
relationship of, to H. P. Townsley (H. P. 1\), 4073; duUes of (H.-P. TJ,
4078; insurance advertisements turned over to (H. P. TO, 4078
Townsley, H. P. (pres. of Life Association):
connection of, with Bankers' Life (B. M.), 4232; suit of, against Bank-
ers' Life (R. M.), 4246
testimony of, 4052; on his connection with companies other than the
Life Association of America, 4052; on ■ incorporation of Life As-
sociation of America, 4052; on organization of Life, assoeiatiou
as assessment company in 1901, 4053; on offer of Life Association to
policyholders of privilege of buying stock in company, 4053; on loan
made to him, by Gansevoort Bank on stock of Life Association, anrl
reasons for, 4054; on bank accounts of Life Association with Ganse-
voort Bank, 4054; on value of shares of Life Association, .4057; on
his stock in. Life Association, 4083; on amount of stock owned by
officers of the company, 4084; on purchase of $103,000 N. Y. City
bonds and deposit of, with Ins. Dept. of N. Y., 4057.; on application to
Board of Directors for $50,(X)0 for services, 4058; on bank accounts
of Life Association in March, 1904, 4062; on bank account of Life
Association with Citizens' Trust Co. of Paterson, 4063; on his letters
to H. F. Bell, President of the Citizens' Trust Co. i(exs..747 and 748),
4065; on checks of Life Association : to H. P. Townsley andE. Van
Schaick, 4065; on resignation of officers of Life Association, named in
preliminary resolution of 1901, 4063; on loan by him, and security for.
to W. B. Briee, of $10,000, 4068; on his relationship to W. H. Wiemer,
4068; on his loan to C. A. Allen, 4068; on loans to him by Liffe Asso-
ciation, 4068; on American Collectors Co., 4070; on his relationship to
C. B. Townsley, 4073, 4078
on commissions paid to agents, 4073; on brokerage business .of Life
Association, 4074; on general agents in Life Association, 4078
on value of assessment policies at time of organization as-stock com-
pany, 4073; on valuation of assessment policies at end of ■ second
year of organization as stock company, 4077; on contract between
Life Association assessment company, 'and stock company pro-
viding for changed policies, 4076; on difference in rates on life poli-
cies and term policies in Life Association, 4076; on first year pre-
miums in Life Association for 1904, 4079; on comparison of total
receipts and premiums with expenses for 1904, 4080
on surplus and reserve, end' of 1903, 4075; on amount of' surplus ta;ken
over by Life Association stock company from assessment comipany,
4075; on surplus and reserve at end of 1903, 4073; on diminution of
surplus at end of 1904,. 4077; on reserve for 1903 and 1904, 4080
on salaries of officers of Life AssociatJon, 4077; on relationship of
George D. Van Schaick to Eugene Van Schaick, 4079; on his presi-
dency in Life Association, 4078
on dividends paid in 1904 and 1905, 4081; on method of computation
Of dividends, 4084; on percentage of annual dividend business, 4082
Index — \YUnesses and Exhibits. 661
Townsend, H. P. — Continued.
on proxies, 4081; on misleading statement in circular, 4082, 4086; G. O.
Gapron's policy, 4088
on amount paid in death losses, 4089; on litigated and compromised
claims, 4090; on practice of paying claims, 4090
on discrepancy between published reports and reports to Ins. Depart-
ment and statement to stockholders, 1904, 4001 ; on bookkeeping in
Life Association, 4093
on average premium and loss on $1,000 policy, 4094; on average re-
serve on life policy, 4094; on average cost of medical examination
per $1,000, 4094; on heavy rate of lapses in 1904, 4094; on antici-
pation of renewals of business, 4094; on reasons of debarment from
doing business in N. J., 4095; on extent of business, 4095
on organization of Bank Clerks' Mutual Benefit Association and
change of name to Bankers' Life Ins. Co. in 1904, 4096; on his con-
nection with Bankers' Life, 4052, 4095; on his kno-^^ledge of Knick-
erbocker Investment Co., 4095; on purchase of 626 shares in Bank-
ers' Life by Knickerbocker Investment Co., 4097; on his connectfbn
with Knickerbocker Investment Co., 4097; on voting trust for stoclc
of Bankers' Life acquired by Knickerbocker Investment Co., 4097;
on suit brought by Knickerbocker Investment Co. against voting
trust of stock of Bankers' Life Ins, Co., 4008; on formation of Man-
hattan Bond and Underwriting Co. by directors of Knickerbocker
Investment Co., 4104; on suit brought by H. Stokes of Knicker-
bocker Investment Co. against Manhattan Bond and Underwriting
Co., 4105
on prospectus of Life Association (ex. 762), 4107; on method of se-
curing subscriptions to stock of Life Association, 4107; on cash
commission contract witl, policyholders and knowledge of Ins. Dept.
of same, 4108; on number of policyholders, sharing in one per cent,
cash commission, 4108
Townsley. H. P., and Van Schaick, E.:
amount deposited by, with N. American Trust Co. for purchase of stock
■" in Life Association fH: P. T.l, 4054; price per share paid by, for stock
of Life Association (H P. T.), 4063; loan secured by, from Citizens'
Trust Bank of Paterson (H. P. T.), 4057; agreement of, with Citizens'
Trust Co. of Paterson (H. P. T.), 4064; amount of loan made to, by
Citizens' Trust Co. of Paterson (H. P. T.), 4003; agreement of, with
Gansevoort Bank to keep a certain amount of money on deposit (H.
P. T.), 4058; paymeat by, to Gansevoort Bank March 4, 1904, of
$51,836 (H. P. T.), 4058; payment by, of loan to Gansevoort Bank
(H. P. T.), 4061; loan to, by Gansevoort Bank of $25,000 (H. P. T.I,
4066; payment by, to Gansevoort Bank of !i;25.000 (H. P. T.), 4067;
joint account of (H. P. T.), 4062; payment to Life Association of loan,
with $50,000 voted them by Board of Directors (H. P. T.), 4062; de-
posit by, of $25,000 to credit of Life Association (H. P. T.), 4065;
check of, for $50,000 deposited with Guaranty Trust Co. for Life
Association (H. P. T.), 4077; check of, showing repayment to Life
G62 Index -^ Witnesses and Exhibiis
Towusley, H. P., and Van Schaick, B. — Continued:
Association of $50,000 (ex. 759), 4077; account of, with Life Associa-
tion (H. P. T.), 4091; ownership by, of ten shares in the stocli of
Baniiers' Life Ins. Co. (H. P. T.), 4096; loans of Knickerboclier In-
vestment Co. taken over by (H. P. T.), 4098; ownership by, of stock
of Manhattan Bond and Underwriting Syndicate (H. P. T.), 4104-410fi
Tracy, General:
counsel retained by policyholders against Mut. Kes. (G. D. E.), 3225;
opinion from, obtained by J. D. Wells (G. D. E.), 3254; retention of,
by Hoffecker and Wells, in Mut. Res. suit (G. D. E.), 3257
Tracy, Boardman & Piatt:
voucher of Equit. Life to (S. S.McC), 2490; counsel for Mut. Res. (G.
D. E. ) , 3257 ; voucher of warrant and payment to, from Mut. Res., ot
$15,000 (ex. 602), 3298
Travellers' Ins. Co. of Hartford (unexamined) :
statement of, 4849 ; commissions of, 4851 ; mode of, of apportioning di-
vidends, 4851 ; documents furnished by, 4849 ; insurance of, in force
Dec. 31, 1904, 4850; investments of, 4850; loans of, on collateral, 4850;
rebates on taxes (J. J. M.), 4542; syndicate participations of,
Treller (auditor of Mut. Life), jurisdiction of (F. C), 506
Tripp, Edgar & Co., Trinidad, bank account of Empire Life with (S. W.),
4035
'Trust Connjanies :
relations of life insurance companies with (G. G. H.), 4547; profits from,
to ins. cos. (F. C), 443; relation of Mut. Life to (F. C), 465, 490, (A.
D. J.), 564; Equit. Trust Co. and Equit. Life (H. R. W.), 866 (J. G.),
2444, Fidelity Trust Co. and Equit. (J. F. D.), 3663; Guarantee Trust
Co. and Mut. Life (W. G. O.), 46, (F. C), 153, 189; Mercantile Trust
Co. and Equit. (J. J. H.), 2315; Morristown Trust Co. and Mut Life
(F. C), 153; Morton Trust Co. and Mut. Life (F. C), 184, 205 ; Mutual
Alliance Trust Co. and Mut. Life (F. C), 160; N. Y. Sec. & Trust Co.
and N. Y. Life (E. D. R.), 260; U. S. Mortgage & Trust Co. aud Mut.
Life (P. C), 206, 502; see also "individual companies
Tuck, D., trustee of Nylic fund (G. W. P.), 965
Turner, C. M. : moneys to, from Agency & Investment Co. and Sec. Mut.
(ex. 626), 3346
testimony of, 3321, 3375, 3487, 3532; on organization of See. Mut. 3322;
on officers at time of organization, 3323 ; on his contract with Sec. Mut.
at time of organization (ex. 612), 3322; on his gratuitous services in
Sec. Mut. 3324; on change in his contract (1893), 3327; on his salary
provided for by contract of February, 1894, 3332 ; on salary paid him
by Agency Co. (ex. 626), 3346; on limitation of his salary, by con-
tract, 3363; on assets of Sec. Mut. 3327
on organization of Agency Investment Co. and contracts concerning,
8328; on relations of Agency and Investment Oo. to Sec. Mut., 3330;
on increase of stock of Agency Co., 3332 ; on disposition of proceeds
from increase of stock, 3336; on amount advanced for stock of
Index — ^Yitnesses and Exhibits. 60-15
Turner, C. M. — Continued.
Agency Co., 3349; on contract with M. D. Moss, 3333; on money
from agents' balances, 3336; on Ms stocli in Agency & Investment
Co., 3339, 3358; on his Ifetter to Board of Directors, on presidential
office. 3341 ; on disbursements and dividends of Agency Co., 3347 ; on
stockholders in Agency Co., 3358 ; on permanency of contract between
Sec. Mut. and Agency & Investment Co., 3360 ; on economy of con-
tract, 3360
On elections, 3351; on salaries in 1905 (exs. 627, 629), 3353
on original policy of Sjc. Mut. 3363, 3375 ; on Issuance of bonds on
first class of policy, 3376; on level and stipulated premium policies,
3376 ; on Cross policy, 3331 ; on theory of level premiums, 3391 ; on
theory of stipulated premiuius, 3393; on valuation of stipulated
premiums. 3411; on rates on level premium business, 3379 on
registration of policies, 3403; on Investments of Sec. Mut., 3404;
on earn system of Sec. Mut., 3413; on 20-payment life guaranteed
additions policies, 3418; on pure life and probable life policies,
3424, 3444
on ratio of loadings to expenses, 3428; on commissions to general
agents, 3435; on Kenny's contract, 3440, 4759; on actuarial cal-
culations prior to 1899, 3437, 3438; on expenses of nevir business,
3434; on deferred dividends, 3442; on legitimate life insurance,
3442; on contingent fund of Sec. 3V±ut., 3451; on banli balances,
13455, and accounts
on political contributions- of Sec. Mut., .3453; on trustee accounts
of Sec. Mut., 3454; on exchange of Sec. Mut. to old policyholders,
3498; on gj^parent decrease of surplus in Sec. Mut., 3532; oa his
Insurance, 3535; on proxies in Sec. Mut., 3537
Tyng: statement of, concerning Moss account, 3233
B.
Under-average lives, see sub-standard insurance
tTuion Central Life Ins. Co. of Cincinnati (unexamined)*
statement of, 4800; history and administration of, 4800; assets of,
4800; campaign contributions of, 4800; commissions of, 4802; divi-
dend* of, 4800; documents furnished by, 4799; investments of, 4800;
legislative payments of, 4799; surplus of, 4799; syndicate participa-
tion of, 4799
Union Nat. Bank: connection of Prud. Ins. Co. with (.1. F. D.), 3668
Union Pacific Sj^idlcates: connection of Equit. Life with (H. R. W.),
923, (ex. 204 A & B), 925
Union Pacific convertible bonds, syndicate; participation of Equit.
Life in (H. B. W.), 801, 841, (J. H. H.), 2238; participation of G. H.
Squire, trustee, in (H. G.), 904
Union Pacific Holding Syndicate, distributions of profits In (J. H. H.),
2327
664 Index — Witnesses and Exhibits
Union Pacific 1% year 5 per cent. Note Syndicate; participation of
Bquit Life in (H. R. W.). 82 i, 880, (J. H. H;), 2278
Union' Pacific first 4's, participatiou of Eqult. Life in (J. H. S.), 1021
Union Pacific pref. stock syndicate; participation of Equit. Life in
(H: E. W.), 810; (exs. 177-185), 874; (J. H. S.), 1037; (J. H. H.), 2264;
participation of L. Fitzgerald in (J. H. S.), 1021; connection of
Kuiin. Loeb & Co. witli (J. H. S.). 1037; participation of J. H. Hyde-
in, 1038 (J. H. S.), (J. H. H.), 2264; Q-bject of (J. H. S.), 1039; par-
ticipation in, by N. Y. Life (B. D. R.), 255; (B; D. R.), 267, 535;
syndicate agreement of, with Kuhn, Loeb & Co. (jx. 220), 1040;
testimony concerning, before Mr. Hendriclcs (J. H. S.), 1045
Union Pacific Railway bonds: managers of (H. R. W.), 794; partici-
pation of Equit. in (H. R. W.), 794
Union Pacific Reorganization purcliase money syndicate, participa-
tion of Equit Life in (H. R. W.), 803, 827, 923, (exs. 204 A and B),
922; participation of Fitzgerald in (J. H. S.), 1021, (G. H. S.), 2537
Union Savings Bank & Trust Co., of Tacoma, Wash.;
transactions concerning debentures of, between N. Y. Life and N. Y.
Sec. & Trust Co. (J. C. K.), 2995; account of N. Y. !Lec. & Trust Co.
with (ex. 553), 3078
United Collieries, sale of, by N. Y. Life (E. D. R.), 288
U. S. & Canada deposit, connection of, with N. Y. Life (E. D. R.), 368
U. S. Fidelity & Guarantee Co., rent paid by, to N. Y. Life in Paris (E.
I. D.), 1076
D. S. Life:
agency department; commissions and salaries (J. P. M.), 4600; com-
parison of former and present rates (ex. 882), 4603; question of
graded commissions (J. P. M.), 4605; schedule of commissions (ex.
883), 4607
banking and brokerage dealings; bank deposits and balances (ex. 875),
4595; rate of interest pn bank deposits (J. P. M.), 4595; bonds kept
with Importers and Traders Bank as collateral for possible loan (A.
W.), 4620; brokerage dealings with N. W. Halsey & Co. (J. P. M.),
4588; with C. L. Jacobus (J. P. M.), 4591, 4615
campaign contributions (ex. 878). 4597
capital; increase and interest (art. VI of charter), 4581; amoun-t of, and
interest on (J. P. M.), 4585 . .
charter of, with amendments (ex. 868), 4580-4585
committees of, and their functions (J. P. M.), 4586
directors; list of (J. P. M.), 4592;. Interested in Va. Passenger & Power
Co. (J. P. M.), 4588
dividends; method of calculation of deferred (J. P. M.), 4617; estimated
and actual (ex. 887, preferred by M. M. D.), 4618
estjmttes on policies; discoutinual of (J. P. M.), 4619; book formerly
in use (ex. 889), 5620; replaced by statement of results (ex. 888), 4639
examination of, by insurance department in 1904-1905 (exs. 871, 872),
45Sr; examination of, in 1905 (ex. 890), 4620
Index — Witnesses and Exhibits. 665
*J. S. Life. — Continued,
exhibits; 868, 869, 870. 871, 872, 873, 874, 876, 877, 878, 879, 880,
S82, 883, 884, 886, 887, 886, 889, 890
finance committee; identical witli executive (J. P. M.), 4585; members
of (J. P. M.), 4588
investments; list of securities (ex. 876), 4596; in Va. Passenger &
Power Co. bonds (J. P. M.), 4587; purcliase and sale of V. S. Stock
(.T. r. M.), 4615; purchases and sales of (ex. 877), 4596
legal expenses (ex. 879), 459S
loading on first year preiniums (ex. 880), 4599; ratio of, to expense (J.
P. M.), 4615
loans; on collateral (ex. 874), 4592; on Merchants' Trust Co. stock (J.
P. M.), 4598; to officers and directors (J. P. M.), 4593; to W. A. Clark
(J. P. M.), 4594; rate of interest on (J. P. M.), 4595; on bond and
mortgage, system of application for (J. P. M.), 4614
new business: cost of ex. 880), 4599; statement from files of' insurance
department (J. P. M.), 4599
oflioei's: interest of, in. syndicates of company (J. P. M.), 4592; interest
of, in Importers' and Ti'aders' Bank (J. P. M.), 4596; no commissions
to, on insurance (J. P. M.), 4014
organization and governmeut; charter (ex. 868), 4580; mutual character
(art. Ill of charter), 4.381 : by-laws (ex. 869), 4586
payments of. subject to npiiroval .of Finance Committee (J. P. M.),
4.j87
Ijolicies: deferred dlvicluid: iiud preliminary term (J. P. M.), 4607;
ratio of participatiug to uou-participating (J. P. M.), 4608
real estate: total net income from (3. P. M.), 4609; schedule of, from
files of insurance department (ex. 884), 4609; comi>any's schedule of
(ex. 886), 4612; difference in company's and department's appraisals
(J. B. M.), 4609; sales of (J. P. M.), 4610; rental of offices (J. P. M.),
4611
rebates on taxes (J. J. M.), 4540; (Mr. Patterson), 4597; employment
of A. Hamilton in connection with rebate tax matter (J. P. M. and
Jlr. Patterson), 4590
salaries of officers (ex. 870), 4587; of agentd (J. P. M.), 4600
supplus: division of (art. VI, and amendments of charter), 4582
syndicate participatiouis of (ex. 878), 4591
voting rights of shareholders (art. IV of charter), 4581
trust Co. connections, Merchants' Trust Co. (J. P. M.), 4589
United States Life, of - Newark : acquired by Metr. Life (H. F.), 2191
United States Mortgage and Trust Co. :
capital of (F. C), 205; price of stock in, of Mutual Life (F. C), 211 ;
loans upon and assignments of policies (F. C), 507; shares iu, held
by individual officers of Mut. Life (F. C), 471; relations of, to Mut
1Mb. (F. C), 206, 470; in. debenture bonds (F. C), 502; iu Japanese
"bonds (F. C), 441; in Missoiwi Pacific 4's transactions (F. C), 490;
share of, in organization of Wash. Traction Electric Co. (J. Timp-
sop), 1634
U. P, Security and Trust Co,: deposits of Mut Uie witb (G. Q. H.), 4^66
C66 Index — Witnesses and Exhibits
U. S. Steel Corporation syndicate :
participation in, by N. T. Life (J. C), 248; Marshall and Newkirk
notes (B. D. R.), 286; relation to, of Ca];negle bonds (E. D. R.), 339;
participation of N. Y. Security & Trust Co. in, with money of N. Y.
Life (M. M. M.), 2846; file of N. Y. Life, showing connection with
(exs. 460-471), (M. M. M.), 2854; participation of N. Y. Life in,
through N. Y. Security & Trust Co. (G. W. P.), 2879; $3,000,000
participation in, by N. Y. Security & Trust Co. (G. W. P.),. 2879;
call of 12% per cent, in, (.G, W. P.), 2896; syndicate agreement of,
with N. Y. Sec. & Trust Co. (G. W. P.), 2908
Untermyer, S.. request of, for cross-examination refused by Committee,
2367
Usher: work of, for policyholders in Bowles movement (G. T. D.), 1324
V.
Van Cise, Joel G. (actuary of Equitable Life):
testimony of, 4690, 4723 ; on his connection with Equit., 4690; on ad-
vantages of deferred dividend policies, 4692 ; on method of calculating
deferred dividends (ex. 913), 4696; on hypothetical data used in cal-
culation (ex. 914), 4704; on hypotheses based on Shepard Homans'-
estimate, 4707; on surplus (ex. 918, 919), 4714; on difference between
Homans' estimates and actual results, 4723 ; on limitation of cost of
new business, 4726 ; on possible reduction of cost of insurance, 2727
Vanderpoel, Isaac (chief examiner of N. Y. Ins. Depart.) :
examination by, of Mut. Res. as basis for state reports (G. D. E.),
3107 ; report of, an examination of Mut. Res., 3258 ; matter eliminated
from report of, on Mut. Res. (ex. 583), 3261; deposition of, regard-
ing examination of charges against Mut. Res., 3296; deposition of,
in case of Mut. Res. against J. T. Patterson, 4757; (ex. 989), 4357;
report of, on examination of agents of Wash. Life, Nov. 30, 1904, (ex.
765), 4115
testimony of, 4310, 4342, 4347, 4815; on his methods of examination,
4311 ; on limitation of examination to one of solvency, 4846 ; on
examinations of Mut. and superficiality of same, 4311-4322 ; on his
ignorance of Fields' house in Albany, 4318; on possible reforms in
reports to Insurance department, 4323; on his knowledge of collateral
loans at end of year. In Equit. and Mut, 4323; on examination of
Equit. in 1902, 4326 ; on examination of N. Y. Life in 1904 ; 4328 ; on
examiuation of Paris office of N. Y. Life, 4348; on concealment of
profits from securities in prtflt and loss account of Mut., 4342; of
K. Y. Life, 4345 ; on examinations of Mut. Res., 4349 ; on non-exam-
ination of charges against Mut. Res., 4355 ; on examination of Metr.,
4365; on examination of Prov. Sav., 4366; on attitude of State de-
partment toward book values, 4367 ; on his failure to report lapses
and restorations of Wash. Life, and to Investigate management or
Mut. 4415
Vandewater, J. B. W. : connection of, with Wash. Life (J. T.), 4112
Van Hoffman & Co. : participation of, in Wladikakes Railway Co. (G.
W. F.), 683
Index — -Witnesses and Exhibits. 667
Van Schaick, Eugenp. (general counsel for Life Association of America) :
association of, with H. P. Townsley on subscription to stock of Life
Association, 4054; connection of, with W. B. Brice, 4068; explanation
by, of $50,000 paid to tbe Life Association, 4062 ; explanation by, of
$10,000 check drawn by Life Association to Townsley and Van
Schaick, 4091 ; connection of, with Knickerbocker Investment Co.
(H. P. T.), 4097; salary of, (H. P. T.), 4079
Van Schaick, George D. (medical director of Life Association): relation-
ship of, to Eugene Van Schaick (H. P. T.), 4079
Van Schaick, Henry: relationship of, to Eugene Van Schaick, (H. P. T.),
4070
Van Tuyl, George C, Jr. (secretary and treasurer of Albany Trust Co.) :
testimony of, on Hamilton's account with Albany Trust Co. (ex. 160), 820
Van Vranken: report of, on N. Y. Life's office buildings (E. I. D.), 1178
Vermilye & Co. :
general relations of, to Metr. (S. B. D.), 510, (J. R. H.), 2075; former
bankers of Metr. Life (J. K. H.), 2017; deposits of Metr. with (J.
R. H.), 2100 ; arrangement of Metr. with, regarding taking over loans
at end of year (J. R. H.), 1779; payments to J. R. Hegeman by (J.
R. H.), 2105; rebates of interest from, to J. R. Hegeman (ex. 341),
2116; account of J. R. Hegeman with (exs. 342, 343), 2119; (W. A.
R.), 2159; rebates and rates from, to J. R. Hegeman (G. T. H.), 2121;
member 'Of, to whom checks were drawn for payments to J. R. Hege-
man (J. R. H.), 2123; connection of, with Atlantic Coast Line Syn-
dicate (S. B. D.), 527; with sales of L. S. & M. S. R. R. stock to
Metr. (H. F., 3799; with Minn., St. Paul & S. S. Marie syn. (S. B.
D.), 520; with St. Louis & Iron Mountain railway syndicate (H.
R. W.), 795; with Wabash-Pittsburg Terminal Syndicate (S. B. D.,
522; (H. R. W.), 847; with Western Maryland R. R. Syndicate
(S. B. D.), 526 (H. R. W.), 809, 870
Vermont Life, of Vermont, acquired by Metr. Life (H. F.), 2191
Vienna, statement of cost of N. Y. Life's building in (ex. 240), 1167
Vincent, John, connection of, with Life Association (H. P. T.), 4070
Virginia Passenger & Powers Co., purchase and sale of bonds of, by
U. S. Life (J. P. M.), 4587; nature of (J. P. M.), 4591
Voorhees, Foster M.: presidency of, in Bankers' Life (R. M.), 4247; con-
nection of, with Knickerbocker Investment Co. (JH. P. T.)r, 4097
W
Wabash-Pittsburg Terminal Bonds: sftourities In Pittsburg & Toledo
Syndicate (H. R. W.), 847
Wabash-Pittsburg Terminal Syndicate:
participation in, of N. Y. Life (J. C), 222; relations of, with Metr. Life
(S. B. D.), 521: relations of, with Vermilye & Co. (S. B. D.), 520
Wabash R. R. Co.. relations of, with Wheeling & I^ke Brie (S. B. D.), 515
Wabash R. R. Co. Syndicate:
participation in, by Metr. Life (S.B. D.), 517; relations of, with W. A,
ilead & Co. (S. B. D.), 517
668 Index — Witnesses amd Exhibits
Waco property of Prov. Sav.:
profits on sale of (W. N. E.), 3963; exchange transactions -wifh', 3994;
cost and book value of (W. N. E.), 3998
Walker, identity of (J. T.), 4137
Wallon, E. A., interest of, in real estate loans of Manhat. Life (H. B; S.),
4629
Warburg, Paul M., director of Franklin Nat. Bank (J. H. 8.), 1084
^^'ard, Edgar and Leslie D.:
amount of stock held by, in- Prud. Life (J. F. D.),- 3660; directors of
Public Service Corporation (J. F. D.), 3667; directors of Union Nat.
Bank (J. F. D.), 3868; salaries of, 360O
Washburn, Hempstead (receiTer of Northwestern Life): amount of com-
mission received by, from Mut. Res. (G. D. E.), 3080
Washington Life:
agency department; accounts of agents (J. T.), 4129; advances to agents
(J. T.), 4129; balances of agents (J. T.), 4129; business placed through
agents (J. T.), ,4124; commissions (J. T.), 4130; contract with agents,
for- 1906 (ex. 767), 4133; discontinuance of salaries (J. T.), 4130; book
used by former agents (ex. 803), 4183
i)ank and brokerage dealings; bank accounts (J. T.), 4151; fluctuation
of deposits with Morton Trust Co. (J." T.), 4153; rates of interest re-
ceived from different banks (J. T.), 4152; bank balances, at end of
1904 (J. T.), 4142; brokers from whom company purchasecl- seem-ities
(J. T.), 4151: transaction with Ryan and Kelly in N. Y. Stock Ex-
change face bonds (J. T.), 4154
campaign contributions; see legal and legislative expenses
commissions; rate of, on participating and non^participa'ting policies
(J. T.), 4123; rates of; as compared- with Mat., N. Y. Life and Equit.
(J. T.), 4133
committees; auditing, members of (J; T.), 4114; executive, members of
(J. T.), 4114; finance, see finance committee; insurance, members of
(J. T.), 4114; report of insurance committee on reduced premium rates
(J. T.), 4118
directors ot (J. T.), 4113; minutes of board of, July 18; 1905, showing
disapproval of certain investments, 4148; minute of, regarding in-
crease of stock and change of management, 4137
dividends; to policyholders for first nine months of 1905 (J: T.), 4166;
efforts to prevent giving estimates with regard to (J. T.), 4168; cal-
culation of annual dividends (ex.- 801 and J. T.), 4164; method of com-
puting deferred dividends under former administration (J. T.), 4167;
computation of deferred dividends under present administi-ation (J.
T.), 4167; results of apportionment of deferred dividends for period
maturing in 1905 (ex. 804-807), 4183
employees; stipend of $12 per month to, for lunches f.T. T.), 4114
examinations of, causes leading to (H. D. A.), 4389; questi<>n of advant-
age in, of gain and loss exhibit (H. D. A.), 4390; report of examiner
•on examination of 1904 (ex. 765), 4115
exhibits 764, 765. 766, 767. 768. 769, 770, 771, 772, 773. 774. 77*5, 776, TIB,
779, 780, 781, 782, 783-785, 786, 787, 788, 789* T90, 791, 792, 793, 79*-798,
793, 800, 801, 802, 803, 804-807
Index — Witnesses and Exhibits. 6G9
Washington Life. — Continued:
expenses; reduction of, under new manngenient (J. T.), 4118; ratio of,
for first 9 montlis of 1905, as against 1904 (J. T.), 4118-4129; saving
on rental space of ofiice building, in 1905 <J. T.). 4118; method of
reduction of (J. T.), 4129
finance committee; member of (J. T.), 4114; minutes of meeting, regard-
ing purchase of securities, 4147; resolution adopted by Jan. 6, 1905 (ex.
778), 4153; resolution of, on participation in Bethlehem Steel Co. syn-
dicate, 4159; concurrence of, in Mr. Morton's suggestion relative to
investment's in American Tobacco (.T. T.), 4174; authorization by, of
purchases and sales made by Wash. Life (J. T.), 4176
insurance: amount of outstanding, on annual and deferred dividend
plans (J. T.), 4164; aggregate cost of n«w sort of as compared with
old (J. T.), 4123
investments; in securities owned previous to reorganization (J. T.),
4141; outstanding securities owned at end of 1904 (.J. T.), 4141; amount
invested in securities since Jan. 1, 1905 (J. T.), 4141; securities owned
on Oct. 30, 1905: — ^purchiased previous to Jan. 1, 1905 (J. T,), 4145;
purchased since Jan. 1, 1905 (ex. 773), 4143, 4151; securities purchased
and. resold since Jan. 1, 1905 (ex. 774, 775. 776), 4146;.policy of new
management to invest in securities (J. T.), 4142; in Republic Iron and
Steel, 1st mortgage (exs. 789, 790, 791), 4156; purchase and sale of
American Tobacco securities (J. T.), 4147; industrial securities (J. T,),
4160: correction of testimfrny of J. T. regarding investmeats, 4174;
justification of purchase and sale of securities (J. T.), 4175; securities
purchased from Morton Trust Co. (J. T.), 4178
lapses: and restorations (M. M. D.), 4389; failure of examiner to record
large number of (I. v.), 4415
legal and legislative payments; amounts paid for campaign and legisla'-
five purposes (ex. 771 and J. T.), 4137; discontinuance of payments
for campaign and legislative purposes (J. T.), 4137; list of legal fees
for ten years ending 1904 (ex. 799), 4146
loadings: reduction of, in new form of policy (J. T.), 4127, 4128; ratio of
first year's expenses to (J. T.), 4137; on first year's premiums as com-
pared with expenses (exs. 769, 770), 4137; on issues of 1903 and 1904
(ex. 802), 4183; exhaustion of, by expenses (J. T.), 4181
loans: on bond and mortgage (J. T.), 4142; list of , for ten years prior to
Dec; 31, 1904 (ex. 800), 4164; on collateral (exs. 794-798), 4163
new business, amount of, for which company could profitably pay (J.
T.), 4135
officers (J. T.), 4112; elec-tion of (J. T:), 4112; salaries of (ex. 764), 4114;
vice^presidency of C. H. Allen (J. T.), 4113; election of John Tatlock
to presidency (J. T.), 4109, 4115 ^ „ .,,„
organization and government: incorporation (J. T.), 4109; charter, 4110;
toy-laws 4112; capital stock, increase of (J. T.), 4111; reorganization
of management in 1904 (J. T.), 4115; reasons for change in manage-
ment (J. T.), 4115 , ^ ^ ^
Bolicies forms of, used most frequently (J. T.), 4126; number of forms
of (J 'a-) 4126; elimination of loan features from (J. T.), 4122; pro-
portion of business in life and limited paymeuf forms of (J. T.;, 4126
670 Index — Witnesses and Exhibits.
Washington Life. — Continued:
Policyholders, dividends paid to, for first nine months of 1905 (J. T.))
4166 : I
premiums: reduced rates on participating and non-participating policies
(J. T.), 4118; difference in rate of on 20 payment policy and ordinary
life (J. T.), 4126
real estate: amount invested in bond and mortgage on (J. T.), 4142;
amount invested in, in 1904 (ex. 772, ,T. T.), 4141, 4143; amount In-
vested in bond and mortgages upon, at end of 1904 (J. T.), 4143; book
value of, on Dec. 18, 1905 (J. T.), 4143
reserve: former practice, for. escaping, liability for (J. T.), 4117
salaries: of officers (ex. 764), 4114
surplus; Increase of, for first 9 months of 1905 (J. T.), 4166 .
surrender values; practices regarding (J. T.), 4119; policy shovving pro-
vision for, at end of 20 years (ex. 766), 4126; distribution of profits
from elimination of (J. T.), 4128
syndicates: participations in since Jan. 1, 1905 (exs. 779-793), 4154;. in
Bethlehem Steel Co. syndicate, through Harvey Fisk & Sons (J. T.),
4159; (ex. 793), 4159; in Japanese bonds (J. T.), 4156; (exs. 786,. 787,
788, 792), 4156; in Penn. R. B. convertibles (ex. 783-785), '4109; in
Republic Iron and Steel Co., 1st mortgage (.1. T.), 4167; (exs. 789, 700,
791), 4156; profits in N. Y. Stock Exchange bonds (J. T.), 4155
Washington Terminal: joint account in, of N. Y. Life with Harvey
Fiske & Sons (G. W. P.), 601, 703, 727, (ex. 131), 703 : ■
Wash. Electric R. R., bonds of, separate transaction from stock fG.G.
H.), 4559
.Washington Traction & Electric or Washington Electric Co.: constituent
properties of (.J. Timp.), 1635; original organization of (J. Timp.), 1634;
reorganization of (.J. Timp.), 1636; plan and agreement of reorganiza-
tion of (ex. 296), 1771; interest of Mut. Life and of U. S. Mort«?age &
Trust Co. in (J. Timp.), 1765
Waterhouse, relations of, to Mut. Life (G. T. D.), 1314
Webb (secretary of N. Y. Sec. & Trust Co.), letter from, to Mr. Ran-
dolph, Sept. 16, 1903 (G. W. P.), 2888-2891
Weekly Underv^riter, authority of, on bills before legislatures (J. F. D.),
3677 . .
Weeks, R. R. (vice-president of N. Y. Life), salaries of (1903-1905), 216
Weeks, Rufus Wells (actuary of N. Y. Life):
testimony of 1108-1131, 4741; on increase in addition to surplus, 1108-
1110; -ow sub-standard insurance, 1111-1112, 4747; on deferred divi-
dends, 1112-1117; on reasons for higher commissions on deferred
dividend policies, 1113-1115; on objections to annual dividend busi-
ness, 1115-1117; on relation of new business to surplus, 1116-1125; on
difference in estimated and actual share of surplus on deferred divi-
dend policies ( istimates of 1872 and 1884), N. Y. Life, 4741; on
method of computing deferred dividends, 4744; on classification of
policies in N. Y. Life, 4744; on approximate discontinuance rates on
policies- in N. Y. Life since 1809, 4745; on result,? on non-forfeiting
and forfeiting class, 4745-474(5; on liooit ami illiiRtratioiis issued, sliow-
Ing actual results on policies maturing In 1905 (exs. 955 and 950),
Index— Witnesses arid ExJiibiis. 671
Weeks, Rufus Wells. — Continued:
-1742; oji amounts at close of tontine period in surplus, in reports of
N. Y. Life to Prussian Department, 4746; on limitation of interim
funds of N. Y. Life, 4746; on basis for estimating surplus, 4747
trustee of Nylic fund, 965; paper of, on equitable method of keeping
an account of deferred dividends (ex. 297), 1827
Wegner, H. F.: (deferred dividend poUcyholdery, account card of Homa
Life with (ex. 672), 3609-3610 '
Weld Estate: owners of ground for Mut. Res. Home office building
(G. D. B.), 3175
Welch, A. H. (vice-president of N. Y. Life) (1885-1897): salaries of, 214
Wells, Daniel H. (actuary of Conn. Mut): testimony of, on organization
and practices of Conn. Mut., 165
Wells, J. D. (former vice-president of Mutual Reserve): friction of, with
Buniham (G. D. B.), 3253-3254; opinion of L. F. Payn regarding 4505-
4513
Wells, Fargo & Co. (Wells, Fargo Nevada Bank), arrangement of, with
N. Y. Ufe (B. D. R.), 368
Western Life of Indianapolis: acquired by Metr. Life (H. F.), 2191
Western Maryland R. R. syndicate:
relations of, to G. P. Butler Bros. (S. B. D.), 526; participation of Equit.
in iH. R. W.), 809-810, 872; (J. H. H.), 2191; participation of J. H.
Hyde in (J. H. H.), 2190; allotment of J. H. Hyde and associates in
(J. H. H.), 2190; relations of, with Metr. Life (S. B. D.), 526; relations
of, with Vermilye & Co. (S. B. D.), 526
Western National Bank:
participation of, in R. R. Securities Co. syndicate (H. R. W.), 1099;
in Southern Pac. 25-year 4 per cent, bonds (H. R. W.), 838; item of
credit from, to G. H. Squire, trusete account (Oct. 5, 1903) (H. G.),
911; connection of, with Kuhn, Loeb & Co. (J. H. S.), 1034
Western Pacific R. R- syndicate:
participation in, by Metr. Life (S. B. D.), 515; (J. R. H.), 2086; managers
of (J. R. H.), 2087; relations of, with Blair & Co. (S. B. D.), 520;
participation in, by W. A. Read & Co. (S. B. D.), 519; relations of,
with W. A. Read (S. B. D.), 520; relations of, with Sullivan & Co.
-(S. B. D.), 520
Westinghouse, George (trustee of Equitable), 130
Westminster Hotel: transactions of Metr. Life concerning (F. H. E.),
3129
West Virginia Central & Western Maryland purchase syndicate: partici-
pation of G. H. Squire, trustee in (ex. 19S, 196, 197), 907, 913; allot-
ment to G. H. Squire (J. H. H.), 2212
Wheeling & Lake Erie:
relations of, with Blair & Co. (S. B. D.), 520; participation In, by Metr.
Lrife (S. B. D.), 514; relations of, with Wabash R. R. Co. (S. B. D.),
515
Wheelock, W. A.:
participation of. In C. B. & Q. purchase (H. R. W.), 849; allotments to,
in C. B. & Q. syndicate (G. H. S.), 2542; participation of, in Penn.
Coal Purchase syndicate (G. H. S.), 2548
672 Index — 'Witnesses and Hxhihits.
Wheelwright, Alfred (secretary of U. S. Iiife) : testimony df, on bonds with
Importers' and Traders' Bank as conateral for a loan, 4621
White, Oornellus D. (dep. auditor of N. Y. Life) :
testimony of, 312,548, 1181, 1250; on records of securities, 312; on Gold-
ing checks, 312; on Hamilton cheeks, 548; on purchase price of Home
Office annex, 550; on suspense accounts' of N. Y. Life, 551; on $75,000
paid Hamilton on taxes suit, 1250; ■ correction own testimony on
$75,000 tax item, 1250
White, Granville N. (a secretary of 'Mut. Life): coimection of, with Mut.
(R. H. O.). 1274
White, Herbert H. (secretary of Conn. 'Mut. Life) : testimolny of, oh Conn.
Mut. Life, 169 '
Whiting:
connection of, with Sec. Mut. as actuary (C. M. T.), 3392; respoiisibility
of, in issuance of cash va;lue policies in Bankers' Life (R. M.), 4233
Whitney, C. C: (secretary of N. Y. Life, 1892-1903), salaries^of, 215
Whitney, John C. : affidavit of , verified Dec. '28, 1896 (ex. 975), 467b
Widows and Orphans B'riendly Society:
first name of Prud. Life (J.'F. D.), 3653; connection of Mut. Life with
(R. A. McC), 1373-1448
Wlemer, W H. (director of Life Association):
connection of, with Life Association (H. P. T.), 4067; loan to; >y Ganse-
voort Bank (H. P. T.), 4067,; relationship of,, to H. P. Townsley (H.
P. T.), 4068
Wrightman, Richard (pres. of Life Ins. Club of.N. Y.):
testimony of, 4669; on^iucorporatiou ofXife Insurance Club, 4669; on
his previous connection with N. Y. Life, and Reliance Life, and rea-
sons for leaving them, 4670; on his scheme for substituting advertis-
ing for agents and opposition of other companies, 4671; on formation
of auxiliary Co. to Life Ins. Club, 4749; on business of. Life Ins., Club,
4679; on officers, 4680; on stock and prdce paid for shares, 4681; on
expenses, 46713; on kinds of policies and premium rates, 4684; on load-
ings, 4687; on causes of lapses, 4685; on optional premium privilege
poUcy (ex. 910), 4687; on contract with auxiliary Co. (ex. 9ll>,< 4688
Wilkins, John T.: connection of, with state Insurance department (B\.H.),
4262 *
Williamson, T. F. (private secretary of J. iH. Hyde), testimony of, 2379;
on his services to J. H. Hyde, 2379; on his non-recollection of loans in
his name from Am. Dep. and Loan Co.. 2381
Williamson >& Squire:
relationship of, to G. H. Squire (H. G.), 896; members of firm of (G.
H. S., Jr.), 2328; transactions of, with E^uit., and parties connected
with Equit. (ex. 369), 2339; memorandTim of accounts of Bquit. and
parties connected with Equit. (exs. 934 to 945), 4700
ti-ansactions in stock of Lawyers' Title and Lawyers' Mortgage Ins.' Co.
with G. H. Squire (G. H. S., Jr.), 2330; sale by, of Lawyers' Mort.
Co. stock direct to Equit. Life (G. H. S., Jr.), 2335; transactions in
stock of Lawyers' Title and Lawyers' Mort. Ins. Co. through Am.
Index — Witnesses and Exhibits. 673
Williamson •& Squire. — Continued:
Deposit & Loan Co. (G. W. J.), 2338; sale by. for account of Squire,
of 100 shares of L. T. Ins. Co. stock, June 17, 1901 (G. H. S.), 2517;
sale by, to Eqult. of 50 shares of L. T. lus. on Squire account, June
17, 1901 (G. H. S.), 2518; sale by to Equit. of L. T. Ins. stock, on Squire
account, Nov. 22, 1901 (G. H. S.), 2519; payment to, from American
Deposit & Loan Co., on transfer of L. T. Ins. Co. stock to Eqult,
(summer, 1901) (G. H. S.), 2521; purchase by, of L. T. Ins. Co. stock,
on account of James H. Hyde (summer, 1901) (G. H. S.), 2520; pur-
chase, by, -of stock in L. T. Ins. Co., on account of T. B. Jordan <G.
H. S.). 2520; sale to, of L. U. Ins. Co. stock, by Equit. Trust Co. fl904)
(G. H. S.), 2529; sale to, of stock of L. M. Ins. Co. by C. Gilbert (C. G.),
4575; check for proceeds of sales on T. D. Jordan's account with (ex.
373), 2377; checks for proceeds of sales on W. H. Mclntyre's account
with (exs- 374 and 374 A), 2377; checks and proceeds of sales on Hyde,
Squire and Mclntyre's account with (ex. 375 and 375A), 2378; checks
(or proceeds of sales on account of Equit. Trust Co. With (exs. 376
and 376 A), 2378
Willis, Frank Clifford, Jr., connection of, with state insurance depart-
ment (F. H.), 4262
Wilson, George T. (vice-president of Equit. Life):
testimony of, 2849, 3008; on Equit.'s business in Australia 2850; on
French insurance laws influencing Equit.'s acquisition of Paris builfl-
ing, 2^3; on foreign business Of BqUit., 3008-3016; correction in tes-
timony of (ex. 927), 4586
Wilson Stacy ^secretary of Empire Life):
testimony of, 4033; on officers and employees of Empire Life, 4035; on
salaries of officers and employees. 4038; on bank accounts and bal-
ances, 4035; on assets, 4035; on death claims, 4036; on proportion of
death claims contested in 1905, 4051; on time required for payment
of death claims, 4051; on liabilities, 4036; on business of Empire Life
in N. Y., Penn. and West Va., 4037; on receipts and disbursements in
1904, 4038; on rent of offices, 4038; on meaning of "sufficient fund"
referred to in circular, 4041; on misleading statements in circulars,
4042; on impossibility of carrying out provisions in circular, 4047;
on amount of accumulation in 1901, and use of, 4043; on exclusion of
Empire Life from doing business in Ky., N. J., Ohio and other states,
4044; on controversies of Empire Life with N. Y. State Ins. Dept.,
4045; on supervision exercised by Ins. Dept. over Empire Life, 4046;
on Sanders' Policy, No. 13,019, 4047; denial by, of truth of Smith
letter regarding policy, 4050
Windsor Trust Co.: relations of, Mut. Life (R. H. McC), 1286-1287
Wing, C. T. & Co. : participation of, in Savannah, Florida & Western 5's
(G. W. P.), 665
Wing policy in Prov. Sav. Life, carried as Income In 1903 and disburse-
ment In 1904 (K. K. H.), 3962
Winsor, Robert (of Kidder, Peibody & Co.) :
connection of, with G. W. Perkins in N. Y. Life's transaction In Mexican
Central Railway bonds (G. W. P.), 2911-2921
C74 Index — Wiinesses and Exhibits.
Wiuthrop, Henry Rogers:
negotiations of, as financial secretary of Equit. with Kuhn, Loeb & Co.
(J. H. S.), 1015; director of Fidelity Trust Co. (J. F. D.), 3666; state-
ment of, as to syndicates in wliich Equit. participated (ex. 933), 4734
testimony of, 793-824, 827-894, 921-925, 925-927, 994; on syndicate trans-
actions of Equit, 793-824, 827-894, 921-925 ; on G. H. Squire trustee
account, 827; on stocli transfer of Equit., 925-927; on number of his
shares in Equit., 926 ; on Squire and Bailey accounts, 994 ; on loans of
Equit. Life, 2448
Wisconsin Central: participation in, by N. Y. Life (E. D. R.), 258
Wolf, Myron: successor of Clunie as superintendent of insurance in Cal.
(G. D. E.), 3202
Wolf, S. Herbert: actuary making report of Prov. Sav. Life, for 1900 (H.
M.), 3898
Woods (general agent of Equit.) : advances to (G. E. T.),'2628
Worcester R. R. & Investment Co.: participation of Metr. Life in (J. R.
H.), 2095
Wright, E. : non-forfeiture law under (J. A. McC), 1080; policy of, con-
cerning reserve (J. A. McC), 1081; statement of, concerning profits
from lapsed policies (B. McC), 1818
Wright, Walter C:
examination by, of Prov. Sav. Life and retention of, by same society (B.
W. S.), 3871; verification by, of statement of Prov. Sav. Life for 1909
(R. K. H.), 4028
Wladiliakes Railway Co.: joint account In, of N. Y. Life (G. W. P.), 683
Y.
Young, G. W. : purchase and sale by, of Wash. Electric Co. stock (J. Timp-
son), 1768
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