Omaha daily bee., 1905-10-26
MUTUAL WILL INVESTIGATE
Director of the Company will Look Into
Methods Of the officsrI
DIVIDENDS ESTIMATED, NOT COMPUTED
DistributiOu of Proats 60 Policy
holders Depends Upon Judg-
ment of Actuary, says
Mr.. McCIintock.

NEW YORK. oct 25.-More startling than
the testimony before the legislative COM
mite investigating the methods Of the in
surance companies to-day was the an
nouncement by President Richard A. Nc
Curdy Of the Mutual Life Insurance. COM
pany that a meeting of the board Of trustees
of his company had been appointed to in
vestigate the company and it's methods.
The members of the committee are:
William H. Truesdale, Effingham B. Morris
John w. Auchincloss. all prominent in the
financial and business world. This &C
ton was taken at a meeting Of the board
to-day and was a result OF the insurance
investigation. The matter was brought be-
fore the board by Mr. McCurdy and the
committee will begin work at once.
Equitable Net Receipts Increase.
A still more important development was
the statement issued to-day by President
Morton of the Equitable Life showing that
the receipts OF that company for the nine
months of this year exceeded the expendi-
lures by $i8.723,17. an increase OF over
$4,000 compared with the same period last
year. Receipts from premiums on policies
for the third quarter this year were over
s., 100000 less than 1904. The expenses OF
the third quarter of this year were Ss3s, g1S
less than last year, but for the first six
months there was an increase over last
year Of s424943.
After an entire day given over to exami-
nation of Emory McClintock, actuary OF
the Mutual Life company, and TO the read
ing OF column after column of figures, the
legislative committee adjourned until No
vember s. the day after the municipal cleo
lions.
This extended adjournment was taken to
enable the committee who are candidates
for reelection to- the assembly to meet
their constituencies and conduct their
campaigns.
McCIintOck on Dividends.
The testimony of Mr.. McClintock was OF
a technical nature. A number of his ex-
plantations brought out the fact that his
ideas were in many respects at variance
with the established methods of insurance
companies. and that of his own company
in particular. This was especially apparent
when the subject of deferred dividend poll
cies were being inquired into. He said
the word deferred" was ambiguous and
misleading. as 1t implied that dividends
were accommodating or were paid at the end
of each year. The company, he said, re-
served the right when II wrote a policy
to say what amount should be apportioned
at the end of each dividend period.
Mr.. McClintock also said he was strongly
in favor of limiting the amount of business
n company should write. He said an at
tempt had been made to come to an agree
ment with the New York Life and the
Equitable to limit the amount of business
done by each company to 1900, COO This
was finally increased to Sl,5OOOOO,0O0 but
James H. Hyde of the Equitable first de-
clined to enter the agreement and then
George w. Perkins of the New York Life
objected Mr.. Hyde's reason was his am.
bltion to make the Equitable the largest
insurance company in the world. Mr. Nc
Clintock thought law limiting the amount
of business would be a good thing and felt
sure the Mutual Life would tender its sup
port to such legislation
These views are contrary to those ex-
pressed by President McCurdy of the
Mutual when he was on the stand. Mr..
McCurdy did not think that any company s
business should be limited even at the point
when that business failed to be profitable to
the company.
Mr.. McCHntock also thought that law
compelling the declaration of dividends at
stated periods would be unwise.
Dividends Are Estimated.
| AS to the method of computing the divi-
dends that should be paid on policy he
| said the apportionment was made upon his
Judgment. 1t was not matter of accurate
calculation, but was based on the expert
snce OF previous years. The interest earned
| by the company or the increase in the mar
ket valuation of the securities held by the
/ company, Mr.. McClintock said, were not
taken into consideration In apportioninu
| these dividends. He said that in 1903, when
the dividends were reduced, the market
value of the company's securities had de.
! creased. In 1904 however. the securities
rose in value so that $sOOO,OOO. lost by this
decrease the year before, were regained
and 100000 in addition. The dividends were
not increased for 1904, yet they were moi
cut He was still on the stand at adjourn.
ment.