第46章

McCallwasitsPresident。IhadjustfinishedmyfightagainsttheSuperintendentofInsurance，whomIrefusedtocontinueinoffice。Mr。

McCallhadwrittenmeaverystrongletterurgingthatheberetained，andhaddoneeverythinghecouldtoaidSenatorPlattinsecuringhisretention。TheMutualLifeandEquitablepeoplehadopenlyfollowedthesamecourse，butinprivatehadhedged。Theywerebothbackingtheproposedbill。Mr。McCallwasopposedtoit；hewasinCalifornia，andjustbeforestartingthitherhehadbeentoldbytheMutualLifeandEquitablethattheLimitationBillwasfavoredbymeandwouldbeputthroughifsuchathingwerepossible。Mr。McCalldidnotknowme，andonleavingforCaliforniatoldMr。PerkinsthatfromallhecouldlearnhewassureIwasbentonputtingthisbillthrough，andthatnothinghecouldsaytomewouldchangemyview；infact，becausehehadfoughtsohardtoretaintheoldInsuranceSuperintendent，hefeltthatIwouldbeparticularlyopposedtoanythinghemightwishdone。

Asamatteroffact，Ihadnosuchfeeling。Ihadbeencarefullystudyingthequestion。IhadtalkedwiththeMutualLifeandEquitablepeopleaboutit，butwasnotcommittedtoanyparticularcourse，andhadgravedoubtsastowhetheritwaswelltodrawthelineonsizeinsteadofonconduct。IwasthereforeverygladtoseePerkinsandgetanewpointofview。Iwentoverthematterwithagreatdealofcareandatconsiderablelength，andafterwehadthrashedthematteroutprettyfullyandPerkinshadlaidbeforemeindetailthemethodsemployedbyAustria，Germany，Switzerland，andotherEuropeancountriestohandletheirlargeinsurancecompanies，Itookthepositionthatthereundoubtedlywereevilsintheinsurancebusiness，butthattheydidnotconsistininsuringpeople’slives，forthatcertainlywasnotanevil；andIdidnotseehowtherealevilscouldbeeradicatedbylimitingorsuppressingacompany’sabilitytoprotectanadditionalnumberofliveswithinsurance。IthereforeannouncedthatIwouldnotfavorabillthatlimitedvolumeofbusiness，andwouldnotsignitifitwerepassed；butthatIfavoredlegislationthatwouldmakeitimpossibletoplace，throughagents，policiesthatwereambiguousandmisleading，ortopayexorbitantpricestoagentsforbusiness，ortoinvestpolicy-holders’moneyinimpropersecurities，ortogivepowertoofficerstousethecompany’sfundsfortheirownpersonalprofit。InreachingthisdeterminationI

washelpedbyMr。Loeb，thenmerelyastenographerinmyoffice，butwhohadalreadyattractedmyattentionbothbyhisefficiencyandbyhisloyaltytohisformeremployers，whowereforthemostpartmypoliticalopponents。Mr。Loebgavememuchinformationaboutvariousimproperpracticesintheinsurancebusiness。Ibegantogatherdataonthesubject，withtheintentionofbringingaboutcorrectivelegislation，foratthattimeIexpectedtocontinueinofficeasGovernor。ButinafewweeksIwasnominatedasVice-President，andmysuccessordidnothingaboutthematter。

SofarasIremember，thiswasthefirsttimethequestionofcorrectingevilsinabusinessbylimitingthevolumeofbusinesstobedonewaseverpresentedtome，andmydecisioninthematterwasonallfourswiththepositionIhavealwayssincetakenwhenanysimilarprinciplewasinvolved。AtthetimewhenImademydecisionabouttheLimitationBill，IwasonfriendlytermswiththeMutualandEquitablepeoplewhowerebackofit，whereasIdidnotknowMr。McCallatall，andMr。Perkinsonlyfromhearinghimdiscussthebill。

Aninterestingfeatureofthematterdevelopedsubsequently。Fiveyearslater，aftertheinsuranceinvestigationstookplace，theMutualLifestronglyurgedthepassageofaLimitationBill，and，becauseofthepopularfeelingdevelopedbytheexposureoftheimproperpracticesofthecompanies，thisbillwasgenerallyapproved。GovernorHughesadoptedthesuggestion，suchabillwaspassedbytheLegislature，andGovernorHughessignedit。ThisbillcausedthethreegreatNewYorkcompaniestoreducemarkedlythevolumeofbusinesstheyweredoing；itthrewagreatmanyagentsoutofemployment，andmateriallycurtailedtheforeignbusinessofthecompanies——whichbusinesswasbringingannuallyaconsiderablesumofmoneytothiscountryforinvestment。Inshort，theexperimentworkedsobadlythatbeforeGovernorHugheswentoutofofficeoneoftheverylastbillshesignedwasonethatpermittedthelifeinsurancecompaniestoincreasetheirbusinesseachyearbyanamoun