prizes, rewards or additional or increased compensations based on the volume of new or renewed business or the aggregate of policies written are prohibited.

No company shall pay for renewal commissions on policies issued after 1906 in excess of 5 per cent of the premium annually for nine years after the first year in the

case of endowment policies providing for less than twenty annual payRenewals. ments, nor in excess of 7 per cent of the premium annually for nine years with other forms of policy, but this aggregate may be commuted, if approved by the Superintendent, distributed through three or more years, payable not more than two-fifths in any one year; but in any agency district subject to the supervision of a local salaried representative the renewal commission shall not exceed twothirds of the foregoing rates; a fee not exceeding 2 per cent may be paid for the collection of premiums received any year after the tenth.

No corporation, or any person, firm or corporation in its behalf, shall make loans to any person or firm soliciting insurance, without adequate collateral, nor may any such loan be made on the security of renewal commissions or any compensation to be earned by the borrower, except advances against compensation for the first year of insurance. Foreign companies not complying with these requirements shall not do business in the This section shall not apply to industrial companies, or, save the limitation of expenses and the compensation of agents and loans to them, to stock companies exelusively.

state.

No domestic life insurance corporation shall pay any salary cr compensation to any officer or director, or any salary or compensation more than $5,000 a year to any person, firm or corporation unless authorized by a vote of the directors, nor may it agree with any officer, trustee or salaried employe for salary for a term longer than twelve months, nor shall it grant any pension to any officer or director or member of his family after death. No company may make an expenditure of $100 or more without receiving a voucher correctly describing the consideration for the payment; if the payment be for services and expenditures setting forth the services and expenditures itemized; and if in connection with any legislative or public body or department or government, describing the nature of the affair and the interest of the corporation therein. If such a voucher cannot be obtained, an affidavit giving the reasons therefor and setting forth the foregoing particulars must be filed.

No domestic life insurance company may invest after June 1, 1906, or make loans on stock of any corporation other than a municipal corporation, nor, except government, state or municipal securities, bonds not secured by adequate collateral Investments. security or where more than one-third of the total value of the collateral security shall be shares of stock. Every company owning such stock other than that of municipal corporations, or bonds of the kind described, if acquired after March 1, 1906, shall dispose of the stock and bonds in five years from December 31, 1906, making in each year such reductions in its holdings as shall be satisfactory to the Superintendent. No loan shall be made by any company unless first approved by the directors or a committee of them supervising investments or loans.

No company may subscribe to or participate in any underwriting of securities or property, or enter into any transaction for the purchase or sale of securities jointly with any person, firm or corporation, nor shall any company agree to withhold from sale any of its property, which shall at all times be within the control of its directors. The company may invest in any duly authorized bonds of a city, county, town, village, school district, municipality or other civil division of the state, and may loan money on improved, unincumbered real estate worth 50 per cent more than the loan thereon. Standard forms of policies for ordinary life, limited payment life, endowment and term policies are specified. Any other form may be submitted to the Superintendent, and if approved by him, become a standard form. After January 1, 1907, no domestic mutual life insurance corporation or stock company issuing any participating policies shall issue any policies, except annuities, not participating in the accumulations of the corporation; but this does not apply to paid-up or temporary and pure endowment insurance issued or granted in exchange for lapsed or surrendered policies.

Annual reports of life insurance corporations must specify all the real estate held, the date of acquisition, names of vendors, actual cost, value on the company's books, market value, amount expended for repairs and improvements, gross and net Reports. income from each parcel, rental value of any part occupied by the company, statement of any certificate issued by the Superintendent extending the time for disposal thereof, and purchases and sales made since the last annual statement, with dates, names of vendors, and consideration; existing loans secured by real property, with amounts loaned on property in each state and foreign country; loans ether than on property and policies, the actual borrowers, maturity and rates of interest, the security held and particulars as to changes of securities and any loans made or discharged since the last statement; all other property held, including securities, whether recognized as proper investment or not, dates of acquisition, from whom acquired, actual cost, book value, market value, interest or dividends, also all sales or purchases of property other than real estate, with full particulars; commissions paid in connection with loans or purchases or sales of property, and detailed statements of all legal expenses; all moneys expended in connection with any matter pending before any legislative body or any officer or department of government, giving dates, amounts, names and addresses of payees, the measure, and the interest of the company therein; names of officers and directors, with proceedings of last annual election; salary, compensation and emoluments received by officers and directors, with particulars as to salaries over $5,000, and all salaries paid for agency supervision; the largest balance carried in each bank or trust company each month; all death claims resisted or com-. promised in the year, with particulars; a complete statement of profits and losses on

business in the year, with details; a separate statement showing amount of gains attributable to polleies written after December 31, 1906, and the precise method of cal culation; rates of annual dividends and methods of calculation; rates of dividend on deferred dividend policies completing maturity; amounts set aside for policies with de ferred dividend periods longer than one year, with method of determination; amount of surplus funds.

No assessment company other than a fraternal corporation may be formed, or receive a license or certificate after June 1, 1906. and no new one formed in another state may do business here. Every assessment company shall maintain at all times a reserve equal to the cost of insurance for all policies until the next assessment is due, over all Habilities, including existing death claims.

Chapter 123 directs that the election of every domestic mutual life insurance corporation to be held after and prior to November 15, 1906, be held on that date; that

Date of
Elections.

directors whose terms would expire hold office until their successors be elected; that on that date the terms of all directors expire. On that date elections shall be held under supervision of the Superintendent of Insurance, who shall appoint at least three policyholders of each company to act as inspectors of election. No votes shall be cast at this election on a proxy executed prior to September 15, 1906, all proxies executed prior thereto become void. The new boards of directors are to elect new officers, the terms of all the old officers expiring forthwith: The new boards of directors are to divide themselves into two classes, one class to hold office until the annual meeting of the company in 1908; the other until the election in 1909. No election is to be held in 1907. At the annual meeting in 1908 and each annual meeting thereafter, directors shall be elected for two years.

Chapter 354 amended Chapter 123 to fix the date of elections at December 18, and the date for expiration of proxies at October 18.

Chapter 228 declares that when any corporation except a life insurance corporation shall have sold or conveyed any real property, the Supreme Court may, nothwithstanding any restriction of a general or special law, authorize it to purchase and hold from time to time other real property, upon satisfactory proof that the value of the property so purchased does not exceed the value of the property so sold and conveyed within the three years next preceding the application.

Chapter 231 amends the penal code by declaring that atter September 1, 1906, "any person knowingly receiving any rebate or allowance or deduction from any premium or any valuable thing, special favor or advantage whatever, as an inducement to take any policy of life insurance, not specified in the policy, is guilty of a misdemeanor." Chapter 238 provides that policyholders of an insurance corporation shall be eligible to election as directors, whether or not they be stockholders in the corporation.

Chapter 239 forbids any corporation or joint stock association doing business in this state, except one organized or maintained for purely political purposes, to pay directly

Corporation

Contributions

in Politles,

or indirectly, or use or offer any money or property for or in aid of any political party, committee or organization; or for any candidate, or for any political purposes whatever. Any officer, director, stockholder, attorney or agent of any such corporation or association who gives such money or aid, and any person who knowingly receives or solicits it are guilty of a misdemeanor, punishable by $1,000 fine and imprisonment in a county jail or penitentiary for not more than one year. No person may be excused from testifying in any proceeding in such case, or furnishing books or documents, on plea that his testimony might incriminate him; but he may not be prosecuted for any transaction concerning, which he testifies.

Chapter 286 forbids any officer or employe of a corporation to make any false entry or omit any material entry in its books; or knowingly concur in making or publishing any written report or exhibit or statement of its affairs containing a material statement which is false or omitting any material statement required by law.

Chaper 321 compels every person hired to promote or oppose, directly or indirectly, the passage of bills or resolutions by the legislature, or executive approval of such measures, each year to file with the Secretary of State a statement giving Lobbying. the names of the persons, firms, corporations or associations employing him, and a description of the legislation in connection with which he is retained. No such notice shall be valid for more than thirty days after the legislative session of the year in which it is filed. The Secretary of State shall provide a "docket of legislative appearances," with the names of all such counsel or agents and their employers entered therein, with a description of the legislation. On completion of such employment, the fact of termination may be entered. No person may be employed to promote or oppose legislation for a fee contingent in whole or part on the passage or defeat of the legislation. Within two months after final adjournment of the legislature, each person, firm, corporation or association, must file with the Secretary of State a sworn itemized statement showing all expenses paid, incurred or promised, directly or indirectly, in connection with legislation in the preceding session, with the names of payees and amounts given to each, and a description of the legislation.

This law does not prevent "professional services in drafting bills or in advising clients and in rendering opinions as to the construction and effect of proposed or pending legislation where such professional service is not otherwise connected with legislative action." A violation of any provision subjects an individual to imprisonment in a county jail for one year or a fine of $1,000, or both; a corporation to the fine. Any corporation falling to file the required statement in the required time forfeits $100 a day for each day after the two months.

Chapter 324 specifies that in any prosecution for perjury the falsity of the "testimony or statement set forth in the indictment shall be presumptively established by proof that the defendant has testified, declared, deposed or certified under oath to the contrary thereof in any other written testimony, declaration, deposition, certificate, affidavit or other writing by him subscribed."'

Rapid
Transit
Revision,

Chapter 472 defines the Rapid Transit Commission, and provides that after January 1, 1906, the Mayor shall fill any vacancies therein, the appointee to be a bona fide resident of New York State and the city in which he is appointed. With the consents of the local authorities or the authorization of the Appellate Division of the Supreme Court, the Commission shall prepare plans and speciacations for the construction of rapid transit railways, which may include provisions for galleries, ways or tunnels for sewers, gas or water pipes, electric wires and other subsurface structures and conductors for any purpose in furtherance of the public convenience. If any person or corporation was entitled to use the streets for pipes, subways or conduits which would be disturbed by the fulfilment of the plans, it shall be entitled to use the galleries or ways to be constructed, but its privileges should not be enlarged in any way, and nothing in this act shall be taken as granting any enlarged privilege or validating any claimed right or franchise to use such pipes or conduits.

The Commission, with the approval of the Board of Estimate, may grant a franchise to a company incorporated to operate a tunnel from an adjoining state under the Hudson or Harlem River to a terminus in the city, or under the Hudson and thence across Manhattan and under the East River, to connect with some steam trunk line; or to a railroad to connect trunk lines. This provision is covered fully in Chapter 603.

On application of the owner, lessee, operator or constructor of a railroad, wholly or partly within the city limits, the Commission, with the approval of the Board of Estimate, may fix a route by which the railroad may connect with other, roads, stations, or ferries, or may extend its lines, and may authorize the laying of additional tracks and the acquiring of terminal facilities, except in Battery Park, with the operating of the road, fixing the plan of construction, the time, and compensation to the city. This authorization shall be for not more than twenty-five years, fixing the annual rental for that period, with a renewal privilege aggregating twenty years, in which time the rental shall be readjusted at intervals of ten years. A certificate shall be prepared by the Commission, specifying in detail all terms and conditions, which shall become a contract between the city and the railroad, enforceable by the Commission; its terms may be modified by the Commission, with the consent of the railroad. Consents of property owners along the rights of way must be obtained, or the authorization of the Appellate Division. When the term of franchise specified in the certificate expires, the rights of the company to use the streets die; all rolling stock and other movable equipment fall to the city, which must pay a fair valuation therefor.

If the people decide that the city shall construct a rapid transit road, the Commission shall, after considering the routes and plans, set about getting property con sents, and may enter into a contract with any person, firm or corporation best qualified, for building the road, including pipe galleries. The contract shall state separately the cost of building the road and the pipe galleries; a single contract may be executed, or separate contracts with one or various persons or firms, as the advantageous performance of the work requires. It may provide, in the judgment of the Commission, that the construction of any section of the railroad may, with the Commission's consent, be suspended during the term of operation of the railroad or any part of the term, provided there shall be available for use instead of that section a railroad, which with the part constructed under the contract, shall form a continuous and convenient route. It may be made for the construction of the road in sections, or for any section or sections thereof, fixing, unless otherwise provided, the date for commencement and completion of work in each case. The Commission may provide also for the equipment of the road at public expense, and may include in any contract for construction provision for equipment, or any part thereof, of the road; but may mako a separate contract for the whole or any part of the equipment with the constructing contractor or any other responsible firm or individual.

The Commission, with the permission of the Board of Estimate, may make a contract with any person, firm or corporation for the equipment and operation of the rapid transit road, at his or its own expense, for a term not to exceed twenty Terms of years. The contract shall contain all details as to rates of fare and Operation. character of service as the Commission deems best suited to the public interest. It shall provide that the operator pay an annual rental for the road not less than the interest on the bonds issued by the city for construction and equipment and a further sum equal to not less than 1 per cent on the total of the bonds issued, but there shall be deducted from the total value of bonds issued the amount used to pay for rights or easements or property other than lands acquired in fee, and for the construction of pipe galleries, and in the discretion of the Commission, payment of the further sum not less than 1 per cent of the total of bonds issued may begin not more than five years after the date when payment of rental begins, and the annual rate, instead of 1 per cent, may be not less than 1 per cent for a further period not exceeding five years, but if the contractor shall in any year when the pay-ment of 1 per cent is suspended make a greater profit on his net capital than 5 per cent, the surplus of the earnings up to 1 per cent at least shall be paid.

The annual rental shall begin as to the road or any section, when the Commisalon declares it ready for operation. The annual rental shall be used first to pay interest on such bonds as falls due; the remainder be paid into the sinking fund, or be

invested and constitute a sinking fund for redemption of the bonds at maturity. The contract may provide for a renewal or renewals not to aggregate more than twenty years, on terms to be approved by the Board of Estimate, and provide for the valuation of the whole or part of the equipment and its purchase by the city, if the lease be not renewed.

The city shall have a first lien on equipment, as security for the faithful performance of the contract's terms, but the Commission may relieve the contractor from this lien, or its application to any part of the equipment, on the receipt of additional security the equivalent; if the contractor default in paying the rental or fail to keep the requirements of the contract, the city, through the Commission, may take possession of the road and equipment and operate it, or make another contract with other persons for the operation, retaining out of the proceeds the annual rental, paying the balance to the original contractor; and if the proceeds shall not pay the annual rent, the contractor and his bondsmen shall be liable for the deficiency.

Any existing railway corporation owning or actually operating a railway, wholly or in part, in the limits of the city approved by the Commission, is authorized to contract for the equipment and operation of a road under the provisions of this chapter, and to contract with the original contractor for the maintenance and operation of any railway constructed or being built pursuant to this chapter. A corporation may be formed under the railroad law to maintain and operate, including the equipping of, a railway built or being built under the provisions of this chapter, and shall have, in addition to the powers conferred by the general act, the powers conferred by this chapter, with the approval of the Commission. If in the opinion of the Board of Estimate a con tract for equipment, maintenance and operation as provided in the foregoing shall be inexpedient, the Commission may equip the road wholly or partly, at the public expense, by contract, and shall contract with any person or firm best qualified, in the Commission's opinion, to operate the road for a term not to exceed ten years, with a renewal of ten years. The annual rental shall be based on the total value of bonds issued for construction and equipment; the contract, in its other provisions, shall be according to the foregoing provisions.

The

The city shall assure to the contractor, as long as he complies with the contract the right to construct or operate the road free from interference by injunction or damage suit, or otherwise, on the part of the owner, abutting owner or other person. contractor shall deposit cash or securities and give a bond in such sum as the Con mission shall determine, as a continuing security for the payment of the annual rental and the faithful performance of the terms of the contract. No contract may be assigned without the consent in writing of six members of the Commission; with such consent, the contractor may assign the whole contract or the right to operate the road for the term of the contract, whose requirements, must be acceped by the assignee, and he must assure the Commission of his pecuniary responsibility, and the security re ceived by the city shall continue in force for the performance of the contract by the assignee. If the Commission shall cease to exist, the legislature may designate the city officers who shall exercise its powers and duties under the contract. If the contractor fail to construct, equip or operate the road according to the terms of the contract, and, after due notice of default, omit for more than a reasonable time to comply with its provisions, the Commission may bring action in the name of the city to vacate his rights and collect damages, or may make a contract with other persons for the operating privilege and lease,

If in the opinion of the Board of Estimate, a contract for equipment, maintenance and operation or for maintenance and operation, as provided in the foregoing, would be inexpedient or prejudicial to the public interest, the Commission shall The City as prepare a plan for maintenance and operation of the road, which having Operator. been approved by the Board of Estimate, the Commission shall maintain and operate the road for the city. The rates of fare shall be adjusted with a view to getting sufficient revenues, when added to those from the pipe galleries, and all other sources appurtenant to the operation of the road, to provide for operating expenses, maintenance, interest on the cost, all other proper charges and a sinking fund to discharge the bonds on maturity, without recourse to taxation. When it shall seem practicable to reduce fares, the reduction first shall be in favor of school children, next of all the public between 6 and 9 a. m. and 4 and 7 p. m., next the public between 5 a. m. and 7 p. m., lastly, all the public all the time.

No part of the road or its appurtenances, built under the authority of this act, shall be used for advertising, save that the operating contractor may post necessary information relative to the running of trains, nor shall any traffic other than that required for the operation of the road be permitted in the stations, except the right for the sale of newspapers and periodicals, revocable by the Commission.

Nothing in this act shall be construed as limiting in any manner the discretion of the Commission, if in the opinion of the Board of Estimate it is expedient to do so, to contract for construction, equipment and operation with the same person, firm or corporation, or for any one or more of the purposes with the same person, firm or corporation, or with different persons, firms or corporations, in one contract or separate ones. The equipment to be supplied by the contractor for equipment shall include rolling stock, motors, boilers, engines, wires, ways, conduits and mechanisms, machinery, tools, implements and devices of whatever nature used in the transmission of motive power, and all powerhouses and apparatus for signalling and ventilation, as may be specified in the contract for equipment. To provide the means for construction or equipment, including pipe galleries, the Board of Estimate, on the requisition ef the Commission, shall direct the Controller to issue bonds of the city at interest not exceeding 4 per cent. The Commission may acquire, for building or operating the

road, by conveyance or grant, or condemnation or other legal proceedings, real estate or rights therein, or rights, privileges, franchises or easements, whether of owners or abutters, or others, to interfere with the construction or operation or recover damages therefor.

Chapter 502 defines a political committee as a combination of three or more persons co-operating to aid or promote the success or defeat of a political principle, party or any proposition submitted to vote at a public election or candidate for Corrupt public office. Every political committee shall have a treasurer, who shall Practices. keep detailed accounts of all money or its equivalent received or promised

to the committee, and of all expenditures or promises of payment made by the committee, its officers or members or anybody acting in its behalf. Whoever acting for the committee receives any money or makes any payment must render within fourteen days a full accounting, with vouchers, to the treasurer. No voucher shall be required when the disbursement is less than $10. The treasurer of any committee which receives more than $200 or makes payment or promises to pay more than that amount for any one election, must, within fifteen days after that election, make an itemized statement of all receipts and disbursements or promises to pay, which, duly sworn to, shall be filed with the Secretary of State. If the aggregate receipts were less than $200, the treasurer shall certify that fact, under oath, to the Secretary of State. These provisions as to accounting and statements apply with equal force to any individual working to promote the success or defeat of any political party, principle or candidate for election, who himself, or through any other person, spends money to accomplish his object.

If any person or committee neglects to file the required statement, or files an incomplete or misleading or false statement, the Supreme Court may compel, by order in proceedings for contempt, the filing of a complete or true statement. The Attorney General, the District Attorney, any candidate at the election in question, or any five qualified voters may ask for such order, setting forth in a duly verified petition their reasons for believing failure to comply with this law. The petitioner must file with the petition an undertaking to pay whatever costs might be assessed against him. Thereupon the court shall hold a summary inquiry, summoning witnesses, who may be compelled to produce books and documents. No witness may refuse to attend, testify or produce books or documents on the ground that the testimony might tend to incriminate him, but he shall not be prosecuted or subjected to any penalty in connection with a transaction of which he testifies. Filing wilfully a false statement shall subject the person or committee to a fine of $1,000 or imprisonment for one year, or both.

Chapter 503 pronounces any person who, directly or indirectly, in connection with any election gives, or provides, causes to be provided or pays for any meat, drink, tobacco, refreshments or provision for any persons other than as part of the travelling expenses of candidates, political agents, committees and public speakers, or pays, lends, contributes or promises any money for other than specified services, guilty of a misdemeanor. These permitted expenditures include rent of halls and compensation of speakers, music and fireworks for public meetings and advertising for the meetings, Iwith minor expenses; preparation and printing of posters, lithographs, banners, notices and literary material; compensation for men to prepare newspaper articles and advertisements and examine questions of public interest in the election; pay of newspapers for advertising, pictures, reading matter and additional circulation, preparation and circulation of campaign literature; rent of offices and clubrooms and compensation of clerks and fees of lawyers for services actually rendered in connection with the election; pay for preparation of lists of voters; personal expenses of a candidate, and travelling expenses of committeemen, clerks, agents and speakers; postage, expressage, telegraph and telephone; expense of preparing and circulating petition for nomination; compensation of poll watchers and food, and for election officers, hiring carriages to get sick and infirm voters to the polls. No candidate for a judicial office shall, directly or indirectly, give money or be solicited for a contribution, but he may make such expenditures other than contributions as are legal under this statute. Chapter 125 fixes the price of illuminating gas in New York City at the following rates a thousand cubic feet. In Manhattan and The Bronx, except what was the town of West Chester before annexation, and Brooklyn, except the Price of Gas Thirty-first Ward, and the First Ward of Queens, 80 cents; in the Reduced. Second and Fourth wards of Queens, $1; in that part of The Bronx Iformerly the town of West Chester, the Third Ward of Queens, the Thirty-first Ward of Brooklyn and in Richmond, $1 25 for 1906, $1 20 for 1907, $1 15 for 1908, $1 10 for 1909: $1 05 for 1910 and $1 thereafter. Such gas must have an illuminating power of not less than twenty-two candles, and the pressure must be between one inch and two and one-half inches. These rates do not apply to gas furnished to New York City.

Eleventh Avenue

Tracks Removed.

Chapter 109 directs the Board of Rapid Transit Commissioners to prepare speedily a plan for the removal of all tracks of steam railroads operated at grade in the borough of Manhattan and to terminate their use. The board may agree with the railroad company for the construction of a subway under its present tracks or other streets, at the company's own expense, to which its tracks shall be removed. A franchise may be given, on terms accepted by the board, for extra tracks or a freight business, or on proper compensation other companies may make connection with the tracks in this proposed subway. Pipe galleries, at the expense of the city, to be the city's property, shall be built in this subway; but rights to conduits under streets where this subway is built shall be continued in rights to use the pipe galleries. The contract for all