CABLE NEWS.

Evening Post, Volume LXXI, Issue 47, 24 February 1906, Page 5

CABLE NEWS .

(IT ELBOTIUO TELSORAPH. — COPTBIOnT,] AMERICAN INSURANCE COMPANIES. REPORT OP THE COMMITTEE OF CONGRESS. REFORMS RECOMMENDED, [I'RESS ASSOCIATION.] NEW YORK, 23rd February. Til© Joint Committee of tho Legislature which lias been investigating the administration of life insurances societies has made its report. The report recommends that permission be given for tho formation of mutual corporations without capital ; opposes any further formation of cooperative or (Utsessmonfc companies j denounce* the Jiast administration of mutual companies j recommends the limitation of new business by the larger companies to fifteen million dollars (£3,<)00,000) yearly, and that officials be forbidden to participate in syndicates; and makes many other rcoommendationa for drastic reforms. It is Interesting to note in connection with 1 the obovo lnessago tlmt early in the, present month Mr. E. Trevor Gould, head of the Equitable Life Assurance Society in Now Zealand, in an intorview with an Evening Post reporter, directed attontion to the possibility of tho limitation of now business, "Lately," he sold, "there- has been indications that tho companies In America were inclined towards a limitation of business and towards a checking of further enormous expansions. Perhaps it was deemed advisable to take steps In this direction before being legislated into it. He did nob know that there had been any official hint concerning legislation of this character, but it was not unlikely that the enquiry now proceeding into the life insurance transactions of Now York companies might 'bear the fruit of recommendations in the direction of limiting tho Operations of companies." The limitation of new business to 16,000,000 dollars yearly will be a matter of moment to soihe of the larger offices. The 1904 figures show that no less than 70 offices in that year did «ver 16,000,000 dollars', worth of new business, three of the number doing over 200,000,000 dollars' worth and two over 70,000,000 dollars' worth. It is possible that the limitation proposed Is somethihg greater than 16,000,000 dollars, and that the amount may have been mutilated in transmission.