New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-29
TILE PROCEEDINGS.

II.
session OF Saturday closed. recalled He testified:
The investigation OF the Mutual Life before George W.
Miller in 1870 was instigated by Mr.. Mccullough VINO
presented his complaint through Attorney Genera'
Champlain; the mere filing OF such bill was hape 10
nure the Company, and 1t was desired 10 nave the un
OF the charges inquired into immediately anu the Az
General decided to refer the matter to snperin
tepdent Miller for investigation; McCulogh ATTENDED
the investigation and acted as prosecuting counsel
though he was not empowered to act as an examiner
after the investigation concluded McCullogh under
took TO examine the books OF the Company but was
prevented by the officers he had legal right ana
nerered with the business OF the Company bcCui'ogh
then visited Baltimore and Boston. aud used MS innu
ence with policy against the interests oil tho
Company; as result the Boston policy'holders ca'eu
for an investigation which made, and the result
laid before the Committee in the form OF report NC
Cuoyh then brought charges against the Company De-
fore the policy holders Of the Stock Exchange ana tney
approved the action OF the Company and declared MIG
Cuogh unfit to hold higher position; the loans COM
planned OF we're made in the interest OF the SOLDIERS IN
the field and the motives OF Mccullough were well known
To Mr. Darington-The Boston Committee examined all
the books and papers Of the Company, as well as the
officers the Seymour and North loans we're made with
the knowledge and approval OF the Company and OF MI
Winston; think the Board OF Directors aiterward ap
proved the loan.
Lewis c. Lawton testiaed am the Assistant Actuary
OF the Mutual Life Insurance Company. aud held that
position while Mr. Romans was Actuary the Companys
charter requires that the death OF polcyhoder the
surplus and dividend shall be applied TO the policy; IN
the case OF Hoptins dividend had been declared but
not earned and the Company thought 1t unjust that
% per cent dividend should be declared for month;
this led TO the adoption OF new formula by which
dividends should declared more in accord with equity
Richard Patrick testified: ono OF the trustees OF
the Mutual Life Insurance Company add have been Tor
% years. was a member OF the committee when lh'es-
ticated the charges against Mr. Romans; there was
disposition with the majority to dismiss him from the
position Of Actuary though he had friends on the Board
these thought II too summary 10 dismiss him after so
many years OF service and wished TO retain him as Con-
sutng Actuory at salary OF $1,000; Mr. Romans con-
scented 10 this, as it gave him an opportunity to attend
TO other business do not remember that be applied Tor
permission TO make personal statement and was
refused: had heard OF charges against the President
before the removal Of Homans perhaps he exceeded his
authority in Oanug money without the authority OF tho
Board of Directors do not approve Of entries beng
made conceal transactions and do not believe that
was done remember that Homans objected to auditing
a payment OF $500 for Boston Office, which liability
he said had not been incurred; dc not remember that
he approved of the payment of $500 to Geo. W. Miller
to aid In the passage of the Miller Life BILL was one OF
the committee of three who put Dir. Winston the Of
flee OF President
A PERSONAL EXrLASAIIoS BY nE. HoMASs.
Mr. Homans was called ut bis own request TO make
personal explanation lie said that he had neither heard
OF nor seen pamphlet produced before the committee,
bringing charges against him, and published two years
ago. he said that anonymou communications were always
cowardy and in this 1t malicious and false;
these statements OF Mr. Winston were false; ho
had done his duty TO the Company, and had been dis
missed for refusing to audit accounts which no honest
actuary would consent TO audit after he bad been die
missed. the Company had committed plumbers when ma
cost them a large amount OF money and had violated ITS
charter he had not compromised for the ONCE OF Con-
sulting ActuaTy until he had been assured that all
charges against hun bad been Withdrawn; the errors
aud wrongs committed by the Company had been
covered up; he WAS anxious for iull investga.
ton his official conduct aud OF the affairs OF the CQm
paDy lie should take occasion to reply to the pamphlet
has cost the COMPANY 81 correct the OF
their former calculaions they had been compelled 10
pay this amount to pocyholders IRON the surplus III
order TO make restitution for errors made Two years ago
Mr. LawOn SAID that IN 1870 there were errors of cat
aud others too little III 1871 this was ordered to- be
recufed but u was not done until lS2 IL involved only
an equitable distribution of dividends, and IN no way
cost the Company anything; IN cases where policy
holders had died IN the mean time, the wrong done 10
them reched by postmortem dividends; he thought
Mr. Holmes was responsible Tor the erroneous dividend
OF 1870.
be had protested against IL at tue time the tfs was
this protest in the handwriting OF MT McCurdy. vice
President which was 10 have been put ON the minutes
OF the Insurance COmmittee:
Aeias deems Il bis dlr Committee
directing an addition Of 90 per cert to be nsi' to tie Contributes as
RAGING the equities OF policy hollen.
The following tsor IRON one Of the directors, who
was also a member OF the Insurance Committee, was
received by Mr. Romans on tue date 1t bears, and was
ysE s,H: Please give ne ro statement Of tie miuner Of making
the surplus account a9i also What The proposed pan a5i WV whit
ImsJ use your paper at Board Make very short very PLATA
Mr. Romans also put in the original draft OF letter
placed IN the hands Of MI Winston ON MS promise that
Che Actuay views in regard TO the 81 per cent addition
should be allowed to 20 On record. -
,etr, 4, me a, S,ta,.
peoa oHgsa determined AVID reported to you 40 a,
completed in obedience Instructions II the Insurance Committee
Theeonbaton f ooPl and reported vas based upon the
sav1s IRON mortality ~ per cent Of that called for BY the Com
4 Gain interest and per per
SAVING IRON expense there having been no un,obe eoningO.
sum total Of toe contributions thu, formed 10 1884,
S sC ~ Win be 1o5ss' a order Of The Insurance COMMITTEE '' 'H
loa have kindly consented that reasons for Offering from the
the contributions trsi determined shall e placed record in the min
81 o so ~ were eesr@sei IL et aecoriAsce With t1e pnes
noos result, actual and are quite a. yos Is have
beea pact years hoped The
adopted Of year my opinion
balance surplus reported i9 ~ represents uaeaned
margins DEPOSITED by pohe.soaers to guard against adtrse con
by each with interest the easot Of the addition 10 Gbs eont6ucns
found divide the depos Of uBearned margins Nhh hou be
Il, @ 1 p 1907 S 20 %, si Hd p,d
equitable an unjust these so items in'se proportional 10
viii Be aser while the uaeansd margin Will smaller While
policy dated The later these proportions vii be
reversed Ia table here Inserted demonstrating the
abee pro- odtOnsl reCet .Ieeuglr differ ron Jour
and from the members OF the upon this
jcct, bat duty eOmpels 70 that. my opinion
this addition Of 90 cent Ia the contributions originally determined
ony nequab sud ineIeGtn but in violation the principles
lad down BY the referees and The resolutions Of dug
aon 10 be eei into immediate operation. At
ue, TIE oMceIs Insurance
have decided THIS question and have iaien all tie responsibility cannot
oppose judgment their wishes urher
the beat ability nefeT
t4 prove have beea Of
YerJ respectfully, sHEfPARD MoEANs Aetuay.
risIInOsY OF ExcoSTEoLLER ROBINSON AND OTHERS.
Al tbs point the Committee took recess OF about 20
minutes. After Lncius Robinson formerly Con-