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New-York tribune. (New York [N.Y.]) 1866-1924, February 23, 1906, Image 1

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V #U LXV....X*" 21.649.
Soft Coal Fields May Be Tied Up
April I— Anthracite in Danger.
According *° *^ c officers of the United Mine
a f.r'.ke of the soft coal miners on
krr'.\ 1 is as r^-I as settled, and a strike of the
tsthracite rr.ir.era will take place then If the
operators do not make concessions. Judging
t he BtalexnenUi of the operators they will
'ffutt 1 tii*' demands which the miners' commltte9
c* seven ha? been ■ week preparing.
Prepider.t Mitchell returned from Plttsburp
yesterday. Afked if he was reported correctly
In the difTE'<~h"s fr^m PittPburg as saying that
«o far ac h» could see then there would he a
cntl ftrike on April 1. he said:
The reporter* did not quote me correctly. I
told thea that pq far as I knew there would be
c coal etrflce on April 1. -I did not Pay there
■BBU b<? a strike In some of the districts or
FTfcify any places where I thought there would
ti a ''Strike I said in Pittsburg what I unl
fomly psiii here, that I was not In a condition
to say anjthing for publication bearing on the
eel negotiation" here. The committee was still
working on the demands.
Mitchell would not specify whether he meant
£ general FTik? in the anthracite and soft boa]
Bitricu or only in the soft coal district. He
ras rletted by Joseph vena ugh. a general
freight efer.t of th« Chicago. Milwaukee and
ft Paul Railroad, and went with him. remain
ing for some hour?. He also went to the Wal
dorf tad had a conference with Harry Taylor,
the larp<:. c t Independent soft coal operator in
lUinr>:?. with whom he Is friendly. Thomas L.
Robbies, who, with sixty other soft coal oper-
Etors. ha? refused the remands of th© miners,
yes in town, and it was said Mitchell had a
u:k with him.
Mitchell, it wa? paid, has an Idea that he can
urn the district controlled by Mr. Taylor and
ether Illinois operators to bring about a settle-
BKOt ■with Mr. FlohTiir.s and his sixty allies.
vtapt miners are expected to strike. When they
etrikf-. it is fa id. the Illinois 50ft coal miners
vi!l remain at work and competition in trad«
wi'.l evenTunlly drive Mr. Hot-bins and his allies
ir.to Tr.3kirp a settlement.
"It was announced last risht that the miners'
committee had finished the wape scales. This
ocrr; piet^s the list of demands, as Instead of
inakir.g c dernar.d on i li*» operators for a modi-
ScanTi in th* mpihofiF of the conciliation board j
they «H1 bring documents to show That the j
nethods employed by :h<* board worked In- I
Juftiee to xhf- miners.
In The wage a demand is not ma for |
& srecific gf-nfral percemagf of Increase, but a
reaijaitraent of the wage scales is demanded.
The rates are different in the various diFtrictß,
b*ir^ d»:^rrr-.in^d by the conditions undT which
th« coa! is mined. In m of the districts
tther* the rnr^p appsr^ntly are high, the I^high
Valley fiiftrlrt b«in? an - '", th« warning's
tr» !n«-cr than in other diPtri^t?, owing to the
c;ffi<-u:!y <^f riining-.
The wgg» rifnianflf are crinsid^red of much
p.-Mter Importance than th<» general eight hour
i»tr.arid. [I v.as raid last night that the com
r".itt«^ v . uld be vviHirg t<> make the eight hour
trmenA lesi Ironclad if xhv wag«^ demands are
; T;v T'-j^raph to T!:« Tribune 1
VStea-B&rre. Peon-. Feb. 22.— A mine •'■•■• of
tt» Ddsware nr.d Hudson CO3I Company began a
Osrua r.f all or the employes of all the collieries
txc*p? the boy*, to asoertuin if possible how they
H*l r<rC£:d:r.? il ; *- rjjtPtion of going on strike, pro
vided Urn scale '-ommittee and the anthracite oper
tlorf t*U to effect an ■
It !» Baderctood that the orders for Mm canvass
can* froni President Wileox of the company, and
that be Oee&e* th« information to use the sentiment
cT riif mine irork«ra, if It is against a Btrike. In
Br. rf'.'-.r! m preserve i>caoe in the region. Some of
ih« Ik)}.s. s declare that the majority of the HMD are
opposed to i Finkr-, others pay the men were rau
tiou* in annreria^, and pay that they do not know
KkieCher I b< y wou).l v,t«» for :< strike or not, as they
do en! I • ...» n > i< ■. ,- , :, i .r, ,**. »re
Bojnb Buried at Justice Goddard's
(*<<;■ Dissected.
TKy T'l'Krap'.'. to The Trll.an'".]
Denver. r< )>. 22.— Th* bomb which was found
fcur'i.' ; i ..,'. O f Supreme Court Ju?ticpOod-
Cads ]....-, h;i? t»»?n It contained one
fcundroii giant <ap«. two pounds of dynamite,
cation satorated with r>otaf>pium chlorate, fine
'URar .-»•«". H bottle of sulphuric arid. Chemists
■V M K-aii Mifflr!^r.t to kill cine hundred ir^n.
It wji«: Inclosed Sn a wooden box 8 lnchfs long.
< l.i'. ).' -s v !d' -avA a inch'-s d«fp. A rubber cork
!:i t! r. ■■.. ; j bottle wii fastened to a string v.hich
'••£-• . • . h*d to the gate latch, but the acid at«
*!"■• c ;k aa4 strtns s-» that ft could not be dis
BclUrie* to Make SOO-mile Trip with
Full Equipment.
in..- Tpli craoh t« Th* Tribune]
Ch»-y«-r.r.«-. Wyo.. J>b. 22. — A forced ir.a:ch of
tv<- hundred milf-s acn.-KS tb« rocky mountains
*>s «vjn to be made >. : two bat'.ertes of th«»
t*cn»«i States Army from SaJt I-ake City to the
Jon h'x^-. Th» Ftatt will t-»c made early in
••fc-rrh. and It will b«- a race apainst tinio across
U« tiKjur.tclns. T:u- batteries v.ill brine th»-lr
<a:jjjj «-<'uij»rr.«-:it fii»d accoutrements,
i'-n<l uj!| bt expected to nmk<- at least tw«-jjty-
Dn ndlet ev«ry day. Th<- (jreater part <>r tht
tr;j) «!•] be through, mountuln rai.ges and passes,
hl; l I-r-it^Llv ore l.undrcd miles will be through
I* T l i<\: : Serial." 2:10 I. «.. 'Fla. ft '■•.•.••'.
l i -H-r. Uo," Vs. A. M. Uriext^il^ *rvice. via
fijfc 6; Atlaollc Ccax-t Uw. I.IQ N. *.—
To-Amr. fair.
To-morrow, fair and- warmer.
Former President of St. Louis Rail
tcay Diet Here.
Charles H. Turner, ex-president o f the St.
Louis and Suhurl>an Railroad, who was a prom
inent figure In the Bt. L»«»uis "hoodie"' ecandals
four years ago, died In hie apartments at th«
Waldorf at 5:40 p. m. j-esterday after a brief
Mr. Turner was the man who first yielded to
the pressure exerted by City Attorney Folk, now
Governor cf Missouri, when that official began
to probe the rorrunt methods employed by pub
lic service corporations to control the municipal
legislature of St. Louis. The disclosures that
ensued not only enmeshed small fry politicians,
but brought into disgrace many men who stood
high In the community, including bankers, finan
ciers and business men. It was to the last
named class that Mr. Turner belonged.
Mr. Turner was wanted at a witness in pome
of the "boodle" cases, but rather than testify he
came to New-York a year and a half ago. and
never returned to Missouri. He took up his
residence at the Waldorf, while his family has
remained In St. Louie.
Until Monday last Mr. Turner was in his usual
health. While In the office of Rowland. Knapp
& Co., brokers, at No. 1 Nassau-st., of which he
had become a member the first of the year, Mr.
Turner complained of feeling: ill. He left the.
office for the Waldorf, and grew worse on the
way uptown. Upon reaching the hotel he was
prostrated by a violent hemorrhage from the
nose, and before it could be stopped he had lost
a great quantity of blood. He was attended by
his physician. Dr. Homer Gibney. and Dr. Rich
ard H. Gibbons, one of the Waldorf house phy
sicians. So serious was Mr. Turner's condition
then considered that Dr. Janeway. the specialist,
was called.
Mrs. Turner. Hunt Turner, a son, and Mr.
and Mrs. Duncan Joy. daughter and *on-ln
law. were summoned and came by first train,
reaching the Waldorf Wednesday morning.
Mr. Turner was still very weak from loss of
blood when the members of his family arrived,
but the physicians did not fear a fatal termina
tion of the attack, and so thoroughly were Mrs.
Turner and her son assured of Mr. Turner's
speedy recovery that they returned to St. Louis
Wednesday evening. The daughter. Mrs. Joy,
and her husband, however, remained, with the
intention of returning home to-morrow, at the
latest. morning, however. Mr. Turner suf-
Yesterday morning, however. Mr Turner suf
fered from a series of hemorrhages, followed by
a linking spell from which he never rallied. He
was unconscious until death came.
Mr. Turner's body will be taken to St. Louis
Mr Turner was born In El Louis fifty-six
years SCO. and in his native city achieved a
large measure of material success. Mr Turner
leaves a wife, two sons and a daughter.
German Legation Doubled Its
Guards Last Sight
London. Feb. 23— correspondent of "The
Tribune" at Peking Fays:
"The couYt Is nervous over the possibility of
trouble on February 24. The president of the
Chir.cFe Foreign Board appreciates the possi
bility of an anti-dynastic rising. The German
legation to-night doubled Its sentries on account
of the posting of anti-foreign placards at Tien-
Havimersiein to Compete with Con
ried in Opera Next Year.
New- York will hav<?" rival operatic perform
ances next winter. Oscar Hammerstein, who is
to be the second Impresario, signed a contract
yesterday with Edouard do Reszke for a Beaten
of twenty weeks and with Jean de Reszke to
appear as a visiting star during th*? course of
the winter. It is also probable that Mr Ham
tnerPtcin v.ill secure Mow VelHncionl Edouard
de Reszke will, it la said, receive 000 for each
performance, and his famous brother. 13.500.
hi? former salary. Mr. Hammerstein sails for
Europe in two weeks to get scenery and cos
tumes, and to sign other singers.
His new opera house, the Manhattan, at 34th
«=t and Tth-ave.. will open in October, and he
will charge the same prices as Mr. Conrled.
"''heap prices," Mr. Hammeratela said last
night. "wou!d mean I would pet the mum, not
the classes. I don't see why I shouldn't appeaJ
to the ramp people Mr. Conried does. I'm going
to Give Just as good opera."
Asked if he thought there was room for two
opera hou«s in this city, he replied: "I don't
know. Time will tell: but mine won't be the one
to go to the wall. I have no bonrd of directors
to borher me; I have no German opera In my
repertory; I have 2.400 seats upstairs at cheap
price*, ranging? down to 78 cents, and I shall
rave as K<"'d a company as it is possible to
cet together. We shall sco wliat we ahaHaee."
Mr BammeMtein says before his curtain rises
m'will havo expended $10.»,0<)0.on scenery and
costumes. He »3» 3 not >•-•• reads " announce his
1 musical directors.
Fayne Whitney! who dwm much of the land
abo't the old villas of Mantel Long Island,
wants the Board of Health of North Hempstead
to rtbp his neighbors fro« throwing refuse along
the shores of Mitihell Lake. Th« lake la right
la the village of Manhasset. and it la owned by
Mr Whitney, but he has been unable to pur
rha«o 1,,, urn front a!... the business ride.
Ho triad two years aib to buy th« entire village.
... i i,.i nd havl is .--:"..! it.. lake, wants
S Jmake it iliri S the plan fur battttlfrlng his
bis country catate.
I ■■ i ■
Formation of mutual insurance corporations without capital stock.
Prohibition of incorporation of life insurance companies on co-operative
or assessment plan.
Policyholders to cast votes directly for trustees.
Proxies to be revocable at pleasure, to be given within two months of
election, and be valid only for that election.
All existing proxies void. ,
Full opportunity for direct and independent nominations by policyholders.
Placing by company in hands of every policyholder ballot containing
names of all nominees.
Voting to be limited to policyholders having $1,000 insurance, who have
been insured for year before election and whose policies are still in force.
Trustees or directors to file nominations with Superintendent of Insur
ance four months before election.
Terms of present directors of mutual companies to expire November 15,
and new directors to be elected.
All existing proxies void. First election to be held under supervision of
Superintendent of Insurance.
Directors of stock life insurance corporations to have authority to grant
to policyholders right to vote for directors and opportunity for stock com
panies to become mutual companies on payment of stock.
Every company owning stock of the prohibited class to be required to
dispose of the same within five years from December 31, 1906, and each year
prior thereto shall make a reduction in the stock investment to an extent ap
proved by the Superintendent of Insurance.
No investment in the stock of any corporation except a municipal one.
No investments in bonds secured to the extent of more than one-third the
value of the entire security therefor by the hypothecation of corporate stocks.
Forbidding by law of all syndicate participations, purchases and sales
on joint account, and making of any agreement that a company shall withhold
from sale any securities which it may own or acquire.
Forbidding by law that any officer or director shall be pecuniarily inter
ested in any deal made by a company, except in case of loan on his policy.
Limit the new business which any company make take to $150,000,000 a
Absolute prohibition of political contributions.
Including in annual statement to Superintendent of Insurance names of
and payments to all legislative agents and r atnre of their services.
Action by legislature to stop lobbying.
Annual distribution of dividends in cash or to be applied in reinsurance
or reduction of premiums.
Compelling of an annual accounting.
Issue of deferred dividend policies in the future forbidden.
Repeal of law requiring that action by the Attorney General must precede
order for an accounting by officials of companies.
Standardization of present and future types of policies.
Clear and specific provisions for the disclosure of all transactions of the
companies. . .
Revising of insurance law to provide suitable penalties for infractions of it,
making them a misdemeanor.
Increase of power of Superintendent of Insurance.
The substance of the insurance report will be found beginning on page 9.
Charity Boat Captain Up for Pro- 1
test Against Order.
An order issued three weeks aero by Charities
Commissioner Robert W. Hebberd, that in the
future all mall addressed to heads of depart
ments, unless marked "Personal." would be
opened by his private secretary. Mr. Baker, has
resulted in Captain John MoCarthy of the Char
ities boat Thomas P. Brennan receiving a com
mand to appear before the Commissioner to-day
on a charge of insubordination.
It appears that several days ago Captain Mc-
Carthy had a letter sent to him at the Charities
Department from the secretary of a lodge of
which he is a member. The contents were of a
strictly private nature, and when it was handed
to him opened h« became indignant. The cap
tain at once went to the postmaster of Station
F and'asked him If his letter had been received
opened. The superintendent replied in the neg
ative which caused Captain McCarthy to go at
once to Mr. Baiter. Mr. Baker replied that he
had opened the communication, and when the
captain pointed out that he had given Mr. Baker
no authority to open his letters the latter replied
that he had authority so to do from Commis
sioner Hebberd.
Captain McCarthy then informed his lodge.
the president of which is join* to take the sub
ject before United States Commissioner Shields.
Wednesday Captain McCarthy had an inter
view with Commissioner Hebberd and told him
thai he had no right to open his mail, and that
the Commissioner had no respect for the law.
rise he would not have done so. Yesterday Cap
tain McCarthy received notice to appear before
the Commissioner to answer a charge of Insub
It is understood that after the trial Captain
McCarthy Intends to take the case before the
courts and make a tent.
Th« order has caused great dissatisfaction
among the heads of departments, several of
whom have had their letters opened
Springfield. 111 . Feb. 22.— The Supreme court
to-day handed flown an opinion affirming- a de
cision- of the Cook County Court In fining mem
bers of Franklin Press Feeders' Union No. 4 for
unlawful assaults on non-union men, and fining
the union for being guilty of Illegal conspiracy.
The Supreme Court holds that the strikers had
n ,> right to picket plants, and that the union can
be held liable as ■ corporation. Justices Boggs
and Scott dissent, holding that there was not
evidence to Justify a verdict against the union.
Twenty trains a day by the New York Central
LJnea.— Afivt.
Former Equitable President Under
goes Second Operation.
James W. Alexander, former president of the.
Equitable Life Assurance Society, was again
operated upon yesterday morning In his home,
at No. 4 East 64th-st., for the relief of the
organic trouble for which ho has been under
treatment for the last six months. His Bon said
last night:
James W. Alexander was operated on again
by Drs. E. L. Keyes and O. H. Ohetwood at 9
o'clock this forenoon In his home. This second
operation was contemplated from the beginning
and was necessary to complete the surgical
treatment. Mr. Alexander was in such a weak
condition as to render It Inadvisable to complete
the operation all at once. It was hoped that by
separating the operation in two parts he would
be better able to etand the shock. The opera
tion is for relief of the bladder. His doctors ray
that his condition after the operation to-day
was as satisfactory as they could expect.
Mr. Alexander was under the anesthetic about
an hour. The surgeon could not say last night
whether Mr. Alexander would recover from the
second part of the operation as readily as he
did from the first, as it wan too soon to say. but
that there had been no alarming developments
since the operation. Dr. Pierce Bailey was called
into consultation with Drs. diet wood and Keyes,
and one of the doctors is at his bedside or with
in immediate call day and night.
Mr. Alexander was first operated on ten
days ago, being brought to New-York for the
purpose from a sanatorium in Deerfleld, Mass.
Illinois Court Decides Inheritance
Tares Are Due at Once.
fßy TVlepraph to Th« Tribune.]
Chicago. Feb. It.— a ruling of the Illinois
Supreme Court to-day a radical change in the
usual practice in collecting- Inheritance taxes
wan made, which will at once put into th«» treas
ury of Cook County about $750,000 from Mar-
Fhall Field's estate and ■ largo amount from the
Yerkes estate. The ruling provides that residu
ary legacies must bear their share of the in
heritance tax Immediately after the death of the
testator, and not at the «nd of the period of
trust. as heretofore.
It means that the tax on the bequests to the
grandchildren of Marshall Field must be paid
now Instead of at the end of forty years. The
decision was In the Martin Klngman estate, ap
pealed from Peorla. 111. <
Seaboard Air Lta shortest route via I'tnehurst
«.ml Candea Uouklete. etc.. l.lSi Udwy.— AJvt.
Senate Hears Committee's Recommendations for Purging
Foul Spots — Call for Sweeping Reforms.
McCarren and Grady Ask for Hearings — Measures to Go to Joint Body— Mora
Trouble with State Printer.
[By Telegraph to Tt» Tribune }
Albany. Feb. — After working all night on
the final draft of tlie insurance report and it«
accompanying bills, Senator Armstrong, chair
man of the investigating committee, made a
flying trip from New-York City, and reached
this city before the legislature adjourned. He
presented the report and eight bills embodying
Its recommendations in statutory form, bill*
sweeping, aggressive, almost revolutionary in
their treatment of present day insurance prac
tices and the evil customs surrounding them.
The same bills were introduced in the Assem
bly by Mr. Rogers, who presented the report to
that body.
Worn from work and lack of sleep. Senator
Armstrong got to the Senate chamber just as
the House was about to adjourn. Senator
Raines moved that he be permitted to submit
bis report. An immediate meeting of the com
mittee was called, after which the formal turn
ing In of the report and the introduction of the
bills were accomplished. A supplemental re
port and additional bills will be submitted next
week. Expecting opposition which the Insur
ance companies will make, after a long argu
ment Senator Armstrong fixed a date for a
hearing, which will be attended by the entire
legislature. It will be held on March 9 at
1 1 -.30 a. m. In the Assembly chamber. Mean
time the bills and report in the Senate are be
fore the committee of the whole, and in the
Assembly before the Insurance Committee,
Immediately after Senator Armstrong had
presented the bills and paid that he would re
turn to New-York to-night to complete work
on the supplemental report and the standard
forms of policies which will accompany It. Sen
ator Grady brought up the old subject of the
printed evidence.
Despite the promise of the State Printer,
there has been much delay in tlje delivery of
the bound volumes, and Assemblyman Cox was
scurrying all day trying to make arrangements
by whi'^h each member of the legislature could
have a copy of the testimony by the time the
report in its printed form reached them.
"Assemblyman Cox, who has had charge of
the printing of the testimony." Senator Arm
strong replied to Senator Grady. "tells me that
only two volumes have been delivered in suffi
cient numbers for distribution, in spite of his
efforts. The printer has Insisted on red tape
in every way, even to a written order from
th* Secretary of State for the delivery of the
volumes. I want to remind the Senate of the
"Wipe out prohibited stock holdings In' the
next five years, forbid all syndicate participa
tions and joint account purchases and sales and
prohibit Investment in the. stock of any corpora
tion except a municipal one"— this Is the most
drastic and upturning recommendation of the
committee. These recommendations. if they be
come a law. the committee believes, win do more
than any other remedy could to destroy the can
cer that has been eating: Into life insurance for
so many years. The committee believes the ex
isting law as to investments of life Insurance
companies In eecuritles should be amended so as
to provide.
That no investment in the stock of «ny cor
por.t'on shall be permitted, except n public ,
stocks of municipal corporations. to th. ex-
That investments in bonds secured to tne ex
tent of more than one-third the value of the on
{fre secuVuy therefor by the hypothecat.on of
coroorate stocks shall be prohibited.
That no loans shall be made upon stocks and
bonds which are not the subject of purchase
under the above provisions. ;.">•-;
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. 1905. and each year prior thereto .
3,.M make a reduction of the amount of such
vestments to an extent approved by the Su-
Pe T^st d aTu\e of ,hou"d a afs coe o forbid ... syndicate |
participations, transactions for purchase and
sale on joint account, and the making of any
agreement providing that the company shall
Ith*Tld from sale for any time, or subject to
The discretion of others, any securit.es which it
"l/ rou.d'aUo^brprovided that -officer or
director should be pecuniarily Interested either
as Drinci P co-principal. agent or beneficiary
fn any purchase, sale or loan made by the cor
poral except in case of a loan upon hi.
The committee, after quoting the restrictions
placed by law on the real estate investments of
insurance companies, says:
i- ... the auise of procuring suitable accom
, n i mi. in! for th* transaction of business -xc.siuv*
LmounU^havo been expended In th» acquisition of
i^!^ nnrt butldlncs not necessary In uuy vropor
J.S.C f"? the v!."' of the corporation, which yield
it '.. „r return upon the amount expended Only
by^ccEJu™ reduction*, of the book value hay«
th* romi.anles b«*n able to show «ari>l!>3« mual
to those demanded by the Urn rojsuialiuK tlutr r..-
The committee recommend* that tit* annual atato
menu of Insurance i-orpcratlons should be re
quired to show not only the valuo II * hli the
proper are carried upon th« books ami the
claimed market value, but the acUul < oei m rnch
case, together with the sress and net lacoma it-
W. W. wemplr
promises ha mad* fc«for» tft« Senate Finance i
Committee, and compare their fulfilment with;
the original promises. Unless th!» Is settled
satisfactorily In some manner Immediately w«'.
shall have to take advantage of the special act j
passed In reference to this situation."
"It seems to me this Senate Is too largo to b»/
trifled with In this way," said Senator Grady.
"I'm ready to Bit here all day If necessary to :
wake up the board which has this In chart*
and serve notice that it the books are not her*
In a reasonable time wo will abrogate the con- 1
Then Senator iloCarren pat to. his plea fof •'
a hearing on the bills. Senator Brackett wantv
ed to know what besides hearings had beeaj
held all summer, but Senator McCarren main
tained that the sessions of the committee w*r«
merely to collect Information.
"Nobody except the committee knows what*
these bills contain." said he, "They are so Im
portant that all the interests affected should
have a hearing."
Senator Armstrong suggested that the hear
ing be held before the Senate as a committee
of the whole. This. Lieutenant Governor Bnwe
said, was not permissible under the rules. Sen
ator Grady thought a hearing should be
as the bills "might go too far or not proceed in
the right direction."
"Oh, fit the punishment to the crime when Its
committed," 9Ugg«»ste<i Senator Brackett laugh
"Now, there are extremes in this proposition
of reform." answered Senator Grady.
people go at it too strenuously and overrea^ a
themselves In what they seek to accomplish.
It's not a crime for interests 30 vast as tho**»
affected to ask for a hearing. There may I *
another little Joker in this affair. The bills
will be progressed in the committee of tLe
whole : then, when a hearing is asked, some Sen
ator may say: "Oh. this is just a dodge for
delay.' We don't want any of that"
He sauted Senator Bracken's suggestion
that the hearing be held by submitting written
"I'd rather have five minutes* oral diseusstosl.
than submit a ton of printed matter," said h*
Senatnr Raines thought a hearing set In ad
vance of all requests would be a good thing, anl
finally Senator Armstrong said that at soina
convenient time he would move to have the
bills recommitted to the joint committee, whiclj
would hold a hearing- He urged that every
legislator attend.
celved therefrom. The practice of disposing of reat
estate by exchange, which has led to ssxlous.
abuses, should be prohibited.
Then the report handles with ungloved hands
th« syndicate transactions, th* Joint account
deals and the support of financial ventures with
the money of unwitting pollcyholdera. It says:
Through the control of subsidiary corporation*,
by means of stock ownership, some have practical!"
transacted th» business of banks and trust com
panies. In addition to Investments In stocks. in
purance corporations have placed millions of dol
lars at the disposal of other companies through,
the maintenance of Inactive deposit accounts at low
rates of Interest.
In this manner purchases have been made not
for investment, but for resale, and the large com
par.l-3 have freely furnUhei their support to nu
merous financial ventures through participation la
the underwriting of syndicates. *
Very many of th* syndicates, are hazardous and
many have entailed serious losses upon the par
ticipants. In many instances, however, the securi
ties are of such a character that a considerable
profit Is practically certain. The reason for puttln
out the securities In such a -way Is merely b«cau-«"
the makara of them have not the facilities or th»
time for themselves making direct sal« to the pub
lic. In this class of cases the ••giving" of partici
pation by the original purchaser is in tha nature of
a favor bestowed.
The syndicates In which the '.!> insurance, com
panies ana their officers have participated hay»
usually been of the last named description It 1*
quite obvious that in cssss of this kind " where
participation Is offered to a life insurance company
the dominant motive is to secure the -' ■'■' wiuiind
the favor of the company as a purchaser of sec — i
tiesi. rather than to set the protection of the com
pany as an underwriter. And those who, as oftVers
ana members of finance committees have deter*
mined the course of the company t n its participa
tions and purchases have frequently been in a po-il
tlon to pr.>r!t by their action on behalf of the co-n
The dangerous tendencies of these practices
are obvious. They have brought insurance com
panies into close relations with railroads, banks,
trust companies, banking houses and the flota
tion of new enterprises, thus involving them in
the manifold transactions of the financial word,
not in their normal relation as creditors through
suitable investments, but as co-owners of the
corporations and promoters of the undertakings
to which they have thus become allied.
They have weakened the sense of official re
sponsibility, multiplying the opportunities to
gains, both direct and indirect, to officers and
directors through the us* 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 man
agement of those closely identified with im
portant financial operations furnish no answer
to the criticism of this policy.
But they wer» not Incorporated to make money
t>y speculation, by barter, by purertasa for reaai^
or by the . lament of Industry.
They were charter**! to turniaifkfe Insurance, anj
the true measure or their power and their duty t\

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