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Show ' IJRDY DOES A SMI THING in jfjSints a Committee of Mutual 'StjOTTrnstees to, Investigate ipawl Mutual. JARY M'CLINTOCK M HAS PECULIAR IDEAS JSsrc . .pies Day Trying to Explain wjDowuward Course of 'ml Dividends. YORK. Oct. 25. More .-rlarlllng itho testimony before the Loglsla-ndSrr0mmIttC0 Loglsla-ndSrr0mmIttC0 lnvestIGatlng the methods . JrXftiranco companies today was the an-.'oSpcmeht an-.'oSpcmeht by President Richard A. Mc- i of th0 rutuaI Llf0 Insurancc com lefeg Opt a. committee of the board of J&eos of his company had boon ap-..Jfed ap-..Jfed to Investigate the company and '"'Anelhods. Is'igf Trustees to Investigate. - ?e members of the committee are: i ujlam H. Trnesdale, Effingham B, Mor- - jjind John W. Auchlncloss, nil proml-biiiln, proml-biiiln, the financial and business woT-ld. o tt2KacUon W!l3 taken at a meeting of . ?iQ'ard today and was the result of ".wnsurance investigation. Tho matter lr. lifbrought before tho board by Presl-,t,T4IcCurdv Presl-,t,T4IcCurdv and the committee- will be- "vjis work at once, 3 -ftQi President llorton's Report "ifS"1 another Interesting thing in lnsur-"rinatters lnsur-"rinatters was the statement Issued 'fittyiresldent Morton of the Equitable ! !'-IlIBhowlng that the receipts of that taJieny for the nine months of this year oSfded the expenditures by 510,723,197. Jtjjfcrease of over $500,000 compared with XpJ&ine. period last year. 'tWjjfe-' aes onS Recess, inrifffr an entire day given over to the r'fflnatlon of Emory McClintock, nc-ilKinMof nc-ilKinMof the Mutual Life Insurance com-rriSffjnnd com-rriSffjnnd to the reading of column after .t!'7"jih of figures, the Legislative eom-.l3jss eom-.l3jss adjourned until November S, the ?::?fter tho municipal elections. This Ba?Wed adjournment was taken to cn-s cn-s to rfne members of the committee who SSandldates for re-election to the As-'Hitify As-'Hitify to meet their constituencies and btttyict their campaigns. McClintock Is Original. T-it testimony of Mr. McClintock was jjijitechnlcal nature. A number of his Tfrmatlona brought out tho fact that -ffifeas were in many respecta at varl-'njjuith varl-'njjuith the established methods of In-ISiCe In-ISiCe companies and that of his own i'Chli'ny 111 particular. Mr. McClintock , 'Wjjtlll on the stand at adjournment. .'fTm Decreasing Dividends. 'B.ls!McClintock said tho Mutual Life In-Sijc0 In-Sijc0 company In writing a pollcv rc-',mStl rc-',mStl to Itself the right to auy what ;.aJnt shall be apportioned at Hip end OBaiffo dividend period. One reason for un-jWasIng dividends was that policies I Oa'jhad been in force three years did Elapse on the failure of the pollcv--t.fsBpSto pay premiums, as formerlv. Tho sum JIshment of the surrender value sys-TjJkept sys-TjJkept from tho surplus the promlums 'ipsed policies previously going Into , .Ttolurplus fund Tho company, he said, .ajatHno profit out of tho policy lapsing nyjlfci.the three-year limit. thaaS AgntB Miffht Mislead. , Jfsald tho reduction in the rato of ln-nfS1 ln-nfS1 obtainable inado tho dividends paid hl,lrcvIous policies misleading, and that 'rt'As who predicted that a new policy ' unl earn as muoh as an old one misled "ijollcy-holder. Ho thought the rato ""JEterest would go lower than It Is now. . j'reauo of savings and Increase of cn-"ilse cn-"ilse was probable, he said, owing to fftDW ral oC interest. In explaining . wltne probablo dividends were estl- LS' iIr McClintock said the various Tjgenclcs were susceptible of accurate P-J1-Stations, Asked how he would cal-1 cal-1 iL"r'tno rIsk oi !apses through a legls-ftaW.ftinvcstlgatlon, legls-ftaW.ftinvcstlgatlon, he said he would call alj'licxtraordlnary risk to be allowed for off ujgarilv. jlPolicy-Holdor's Ccanplaint. -f $'McKeon read a lettor from a pollcy-A pollcy-A Mnl- whose dividends had decreased a. SM In 1SS3 to ?10 In 1IKM. a11 ft,m lve aiil'arciit diminution of dlvl-he dlvl-he PSiu aald Mr McKeon, "It would seem v. -rtC?h0 comPanIes either arc spending h wHiuch or getting too little. The com-FriiLteOvul(i com-FriiLteOvul(i ,ke to know if that Is so. Atsn1 n be l0, lo stop It. lest ilfi111111 thc reserve be Infringed upon." Would Limit Business, reply air . McClintock recited the rf-' rf-' m"tdo t0 secure an agreement be- f?u;i?e fe6.1?" Llf0 Insurance com- Irfho.Eq.rlU,ttbl? saclt' and tho Mu-L.KC Mu-L.KC to limit the amount of business ISl:orn5any Bh0l,ia write, first to 51,000,-Mn!ft 51,000,-Mn!ft and then to a.5OO.O60.O0O, but first HT1lle,c!ln,:d ,to assent and nan C0Tt ' ,p.ekln. co-president of MrnsSy ork Llfw insurance company, Hyde's Ambition. tlyde told him It vmn his ambition e tho Equitable tho largest busl-ncerh busl-ncerh 1 the world and then to . the best company. vv"rv,hlnQ1!01,,a M Jnoduccd In nJn ?n.Iltor Brackett to limit tho Liarry.- At railed of passage." TitfSli i1 l?i a dlrect question tho ac- s-'fSWK.W' he was aure- would receive jaiPjJtutuars support VSCGUrdy Thinks Differently. Cnwi5P,cJ "Vlowa expressed bv Mr McClln- tub 0Ce3iaent MeCurdy of the Mutual Llfo T thence company, Whcll ho t" 8tmcd a fi ftlay3 ne lat he did not think tlio tr3niled even at the po nt where It -hUnnM1,tUab,e 10 thc company go0jfnllanthroplc conception of the ln- inJr? bUH',,Ic3?. President McCurly otv 03 na videly as possible. jseiAbaiidons Deferred Plan. WICU ,Hock'8 try of thc n-ason -fe Norwe8tem Mutual's decl-do cresting. Some years nKo that ft?ynf?rcd ,,,,Uclis under wHIch the s TV?x after two years could choose -Ctl Un-Ual and deferred dividend i JS??!. i 90 pcr ce- chose the nnmini 1 JiVa, and finally the deR-rred 5h naijwdoned altogether, Ul-ltrreu wnnrWdered thc n9slbllity of iWSF m.nic ac?,0ll"ls for each dc- ofcICecn! " " lhc 'y'-'" asked A&$4 Created n Liability. -oK-'ffiS orlhwcatcra company," f lu I Mr. McClintock, "but It appeared later that I had only succeeded In creating a liability." Mr. McClintock said he thought any legislation leg-islation compelling thc declaration of dividends at staled periods would be unwise. un-wise. About 30 per cent of deferred dividend-holders In tho Mutual Llfo. ho said, take tho accumulations of their policies In cash and sever their connection with the company. Gains and Dividends. The total gains of tho Mutual Life Insurance In-surance company in ICOt were Sfi.i52l.G7G, said Mr. McClintock, and it applied about $00,000 or $900,000 of that to dividends. Including In-cluding tho gain In the murket value of securities, the total gain waa $9.1Ki,!S Ho said th proposition paid on dividends was selected upon his Judgment. It was not a mutter of exact calculation, but wwa based on the figures of previous years. In reply to a question how long the Mutual Life Insurance company kept the policyholders policy-holders contented Jn spite of thc fluctuations fluctua-tions In tho earning capaeltv of their policies, Mr. McClintock said: Take Fair Average. "Suppose tho earnings of tho Mutual aro this year six millions, last year six und a quarter millions, the year befor 5fi.S0O.O0O. we take what we consider a lair average of these results. Wo tnko thc llgurcs wi think will maintain a substantial sub-stantial degree of uniformity In tho results." re-sults." "Now." said Mr. Hughes, "when you uetermlno the nmountH to be puid paid-up policies, do you consider the exact amount of Interest earned by your company?" "I did not llguro It with great exactnca3. Merely a fair allowance." |