The Birmingham age-herald., 1905-12-14

New York December ls.-Two incidents
 affecting the life insurance situation in
 New York today overshadowed the legis-
 lative committee investigation. While the
 committee was inquiring into the con
 duct of the Prudential Life Insurance company and the Metropolitan Life lnsur-
 ance company, George w. Perkins re- signed as first vice president and chair
 man of the finance committee of the New York Life Insurance company He was
 succeeded as vice president by Alexander
 F. Orr president of the New York City
 Rapid Transit company. and as chairman
 of the finance committee by John Clafiin,
 head of the II. B. Clalin company. l Another tutrortant move in ihe situa- ton was he election by the trustees of
 the Mutual Life Insurance company today
 of Charles A. Peabody to succeed Rich-
 ard A. McCurdy as president of that com. pany at $5O,000 a year. MT MeCurdys sal. ary was Sl50,00O. Mir. Peabody Is a law, | yer, the American representative of VII. | liam Waldorf Astor. and q director Tn several banks and other corporations,
 one of which is the Illinois Central Rail-
 road company. MT. Peabody also was |
 Insurance company to succeed Justice
 Rufus W. Peekham and Emery McCin-
 tock was nominated to succeed Elihu
 Root. They cannot be elected as trustees until the next meeting of the board. Uni-
 ted States Senator John r. Dryden of New Jersey. president of the Prudential Life Insurance company, again testified
 before the Investigating committee today
 and made a statement to the committee for his reasons for favoring federal super- vision of life insurance companies through
 6 national insurance department, which
 he said should have high authority over them. This, he said would benefit both the companies and the insured The tendency of the holders of industrial policies in the Prudential and Metropol- itan Life Insurance company to lapse
 were examined In great detail by Charles F.. Hughes. counsel for the committee. who quoted a statement of the Prudential company that 72 per cent of it's indus- trial policies lapsed within five years from 1 the date of issue.
 Senator Dryden declared that this Is
 much to be regretted, that the standpoint
 of the company. as well as from that of
 
 is toward e greater persisteney on the
 part of the industrial holders than for
 merly The senator asserted that indus l trial insurance, even with high rates and
 tendency to lapse, is the greatest
 economic force now in operation in ttIs
 country.
 Just before adjournment today, Haley Fislze, vice president of the Metropolitan company, told of an incident i'll which that company commanded William A. Reid to buy 3333 shares of railroad stock
 fer the eompany. Mir. F'iske said that Mir.
 Reid the same day sold the stock to
 company of brokers at si0 a share less
 than the brokers sold 1t to the Metropoli-
 tan. MT. Fiske said he had tried to get
 the money back, but MT. Reid refused to surrender it.
 Gore First Witness. John K. Gore, actuary of the Prudential
 Insurance Company of America, was first
 called to- the witness stand in the life investigation today. He submitted statement of dividends paid of industrial
 insurance by his company 1t showed the payment in 1904 of $93.0O0 of additional
 benefits" payable in case of death of tho insured five years after the issue of the policy.
 The total industrial death claims paid
 in 1904 were $s,637000 and the cash divi- dends credited to policyhoders in tfs industrial department In 1904 amount | to s551 900. A statement MT. Hughes re showed that in the last five years | record of the eompanys industrial depai ment was
 | Received in premiums. sl10.449.37s; pa I | out to policyholders s39.2409iS; s34,5as. | of this was for death claims. S2, ,046, 739 l cash surrender values and s2.595.5u 1 dividends. Of the amount of cash St render values paid Mir Gore said s1.9s0.' was in paid-up insurance.
 | The amount paid into the Prudential company in premiums since it's organiza- | ton, witness said is about s2s7. 100000. In | the same time its earnings apart from l premiums. he said, are s19.500.0C0. It paid | to poieyholders. in that time about s92.- O00.00O and its expenses apart from the amounts paid to policyholdcrs have been | $l3o 100000.
 The assets of the company at the end | of 1904 were ssS. .5l1 .955 and its liabilities. | including reserve, s75, 1OS. Of the pres- ent surplus of sl3,324s47. witness said s2.- | OO0.0O0 is capital stock. He held that over (continued on Second Paoel