No. 93. IN ASSEMBLY, March 28, 1877. PRELIMINARY REPORT AND TESTIMONY TAKEN BEFORE THE COMMITTEE ON INSURANCE, RELATIVE TO LIFE INSURANCE COMPANIES. To the House of Assembly: The Committee on Insurance make the following preliminary report of testimony taken before them, on the several resolutions of investigation heretofore referred to them by the Assembly. TESTIMONY. Mr. J. G. GRAHAM, from the Committee on Insurance, makes the following preliminary report of testimony taken, under resolutions of investigation referred to them: IN THE MATTER OF THE INVESTIGATION INTO LIFE INSURANCE COMPANIES. TUESDAY, March 20, 1877. The committee met at its room on Tuesday morning, at nine o'clock. - Present Hon. J. G. Graham, Chairman, and Messrs. Cowdin, Husted, Lang, Skinner, Moody, Weiant and Floyd-Jones; Hon. N. C. Moak, of counsel for the People; Hon. Matthew Hale, of counsel for the Equitable Life Insurance Company; Judge Davies, of counsel for the Mutual Life Insurance Company. The CHAIRMAN - We will proceed with our inquiries this morning, and, as Judge Davies was here first, we will proceed with the examination in reference to the Mutual Life Insurance Company. Judge DAVIES-I have a letter here which, with the permission of the committee, I will read, and then you can proceed to the examination of Mr. W. H. C. Bartlett, the actuary of the company, who has a statement, which he has reduced to writing, containing all the information, I think, the committee desires. The letter is as follows: MUTUAL LIFE INS. Co. OF NEW YORK, 140 TO 146 BROADWAY, NEW YORK, March 17, 1877. To the Hon. J. G. GRAHAM, Chairman of the Assembly Committee on Insurance, Albany, N. Y.: SIR.- Subpoenas to attend in Albany, at nine o'clock on Tuesday morning, March twentieth, have been served upon the vice-president of this company, acting as president, the second vice-president, the actuary and the secretary. The president being in California, a literal compliance with the terms of such subpoenas would strip the company of official direction, and render the transaction of ordinary business impossible. It is respectfully assumed that the insurance committee did not contemplate so grave an injury to the company's interests, but that a substantial compliance with the mandate of the subpoena will be accepted. Under any other circumstances than those about to be detailed, the vice-president, as acting chief officer of the company, would personally present himself before the committee, and furnish the information sought; and he expressly disavows intentional disrespect in failure to attend at the time stated, for the following reasons: On Wednesday, March twenty-one, occurs a meeting of the board of trustees, pursuant to its by-laws, preceded on the same day by a meeting of its finance committee, at both of which meetings the presence of the vice-president is absolutely essential to the interests. of the company. And the time and attention of the vice-president will be necessarily, and almost exclusively, consumed on Tuesday, the day before such meetings, in preparation and arrangement of important business to be brought before the meetings, and therein acted on. The absence of the president is due to a bronchial affection from which he suffers at this season, and which has necessitated his visit to a milder climate during the spring months, annually, for several years past. He left on the twenty-second of February. The second vice-president, Mr. Granniss, has been connected with this company only since January last. The vice-president, therefore, craves to be excused for non-attendance before the honorable insurance committee, for the reasons stated, and proffers the attendance of the actuary of the company, Professor William H. C. Bartlett, LL.D., and of the secretary, Mr. Isaac F. Lloyd, who will then present themselves before the committee on the day and hour named, furnished with the information the committee desire, and prepared to answer on oath as to the truth of the same. The Hon. Henry E. Davies, of the company's counsel, having occasion to be in Albany at this time, has been requested to hand you this letter. Respectfully submitted. RICHARD A. McCURDY, Mr. BARTLETT-I have a statement here which, if the committee please, I will now proceed to read. The CHAIRMAN-The statement you proceed to read is what? Mr. BARTLETT -I was going to read this letter addressed to you by our vice-president, in continuation of the same subject that Judge Davies has been addressing you upon. It sets forth in more detail why an early compliance with the requirements of Mr. Bixby's resolution introduced in the Senate was not furnished. With your permission I will read. Mr. LANG If this statement consists of essential facts with reference to which we are making inquiry, it should be made on oath. The CHAIRMAN - Does it contain information? Mr. BARTLETT - Yes, it is full of statistics. The CHAIRMAN - Are they facts of which you have knowledge? Mr. BARTLETT-I have knowledge of them. The CHAIRMAN Does it contain the information asked for? Mr. BARTLETT great deal more. It contains all the information asked for, and a The CHAIRMAN - Is it within your knowledge? Mr. BARTLETT Yes, sir; both of these papers are sworn to by the president and the vice-president; I will also swear that I have investigated the subject pretty thoroughly, and I believe them all to be true in fact. The CHAIRMAN - It is for the committee to say whether they will have the statement read, and take it for what it is worth as far as it goes. Mr. LANG- - We cannot tell whether it contains what we are inquiring after until it is read through. The CHAIRMAN - Mr. Bartlett says it does. Mr. LANG-The question for us to decide is, whether it gives what we are after. The CHAIRMAN - The committee will only receive what is inquired after, and what is within Mr. Bartlett's personal knowledge. Mr. BARTLETT - The officers of the company do not wish to be regarded as contumacious. It was absolutely impossible for us to collect the information asked for at the time. We were engaged in a very exhaustive examination at the time, not only by the Superintendent of the Insurance Department, but also by the trustees, and we were just on the eve of making our annual statement to the State department, consequently we were overwhelmed with business, One reason for this was the change made in the insurance commissioner. We had to look over our books and collect the information required, and this we could only do when we could get a little suspense from the labors of the office. Mr. COWDIN-I think we shall save time by letting Mr. Bartlett go on and make his statement in his own way; he has a statement here, and I think the company should be allowed to make any statement they wish in their own way. The CHAIRMAN - Are the statements contained in that communication such as you know you yourself to be true? Mr. BARTLETT I know them to be true as well as I can know any thing. I have examined the book and know all the transactions through the various officers, and there is nothing contained therein that I would not be willing to swear to myself, to the best of my knowledge and belief. It must be borne in mind, however, that the facts contained therein were prepared for the Superintendent of the Insurance Department. The CHAIRMAN - Proceed with your statement. Mr. BARTLETT The letter is as follows: To the Hon. J. G. GRAHAM, Chairman : - SIR. In furnishing a written answer to the questions embraced in the resolution, passed by the Assembly of this State, as follows: "Resolved, That the insurance committee of this House be required to summon the president, vice-president, secretary and actuary of the Equitable Life Assurance Company, the Globe Mutual |