The free lance. (Fredericksburg, Va.) 1885-1926, 1905-10-28
VILL PR0BE MUTUAL
Trustees Appoint Committee to IT.
vestigate Its Methods.
rcWTHEYAPPoRTIcI clVIDc%Cs

10 Not a Matter Of Accurate CacuIa-
ton, But Is Left to Judgment Of
Act-ary Of Company 49, Profits Not
Taken Into Consideration.
New York. oct. 2G.-More startling
than the testimony before the legisla-
tive committee investigating the me-
thods OF insurance companies Was the
announcement by President Richard
A. McCurdy. Of the Mutual Life lnsur-
ance company. that committee OF the
hoard of trustees OF his company had
been appointed TO investigate the com
pany and its methods.
The members Of the committee are
WilliaN II. Truesdale, Efingham Is.
Morris and John w Auchincloss all
prominent in the financial and Dust
ness world.
SIN another interesting develop
mcnt in insurance matters was the
statement issued by President Morton,
Of the Equitable Life. showing that the
receipts OF that company for the nine
months OF this year exceeded the ex-
pcnditures by $l6,723197 an increase
OF over 100000 compared with the
same period last year. Receipts from
premiums on policies for the third
quarter this year were over Sl.OOO,OOO
less than in 1904 The expenses OF
the third quarter OF this year were
SS39.9l3 less than last gear. but for
the first six months there was an in
crease over last year Of Si24.943.
After an entire day given over to
the examination of Emory McCllntock,
actuary of the Mutual Life Insurance
company and TO the reading OF col
umn alter column Of figures, the legls-
lative committee adjourned until NO
yembcr q the day after the municipal
elections
The testimony of Mr.. McCllntock
was OF a technical nature. A number
of his explanations brought out the
tact that his ideas were in many re-
/ spects al 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 was being inquired into. He said
/ the word deferred was ambiguous
and misleading, as it implied that divl'
/ donds were accumulating or were paid
AT the end Of each year. The com
pany. he said, reserved the right when
il wrote a policy TO say what amount
should be apportioned at the end OF
each dividend period.
Mr.. McClintOck also said that ne
was strongly in favor OF limiting the
amount of business a company should
write. lie said an attempt had been
made 10 come to an agreement with
/ the New York Life and the Equitable
! Life to limit the amount OF business
done bv each company to 100000,
600. This was finally increased tc
81 500 600 000. but James II. Hyde. oi
the Equitable. first declined to enter
the agreement. and then George w
/ Perkins. of the New York Life. OBJ
| iected. Mr.. Hyde's reason was his
ambition 10 make the Equitable the
largest insurance company in the
world Mr. McClintock thought thai
/ q law limiting the amount of business
would be a good thing. and felt sure
the Mutual Life would lend its sup
port to such legislation.
Mr. McClintock also thought that
law compelling the declaration Of diyi
dends at stated periods would be un
wise.
As 10 the method Of computing the
dividends that should be paid on
policy. he said the apportionment was
made upon his judgment 1t was not
a matter Of accurate calculation. but
was based on the experience OF pre-
yious years. The interest earned by
the company or the increase in the
market value of the securities held by
the company. Mr. McClintock said
were not taken into consideration In
apportioning these dividends. He said
that in 1903. when the dividends were
reduced. the market value Of the com
pany's securities had decreased In
1904. however. the securities rose In
value. so that sS.OOO.OOO lost by the
decrease the year before were re
gained and a million in addition. The
! dividends were not increased for 1904
] however vet they were not cut