The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-10-27

New York, October 25.-More start
ling than the testimony before the
legislative committee investigating the
methods Of insurance companies today
was the announcement by President
Richard A. McCurdy, of the Mutual
Life Insurance Company that a COM
mittee Of the board of trustees of his
company had been appointed to inves-
ugate the company and it's methods.
The members of the committee are:
William II. Truesdale, Eiiingham B.
Morris and John w Auchincloss, all
prominent in the financial and busi-
ness world. This action was taken ut
a meeting Of the board today. and was
the result of the insurance Investigate
ing committee. The matter was
brought before the board by President
McCurdy, and the committee will be-
gin it's work at once,
Still another interesting development
in insurance matters was the state
iuent ISSUED today by President Nor.
ton of the Equitable Life, showing
that the receipts of that company for
nine months fthis year exceeded the
expenditures by $40, .197. an In
crease Of over $5OO,OOO compared with
the same period last year. Receipts
from premiums of policies for the
third quarter this year were over ST.
100000 less than in 1904.
After an entire day given over to the
examination of Emory McClintock. ac-
tuary of the Mutual Life Insurance
Company, and to reading column after
column Of figures, the legislative COM
mittee adjourned until November 8,
the day after the municipal election
ibis extended adjournment was taken
to enable the members Of the commit.
tee who are candidates for re-electiOD
to the assembly to meet their cOnstit-
uencies and conduct their campaigns.
The testimony of Mr.. McClintock
was of technical nature. A number of
his explanations brought out the fact
that his ideas were in many respects
at variance with the established meth
odS of insurance companies. and that
of his company in particular. This
was especially apparent when the sub
iect of deferred dividends policies was
being inquired into. He said the word
deferred" was ambiguous, and mis-
leading, as it implied that dividends
were accommodating or We're paid at the
end of each year. The company, he
said, reserved the right when it wrote
q policy to say what amount should be
appo1 toned at the end Of each dlv!-
dend period.
Mir. McClintOck also said he was
strongly in favor Of limiting the
amount of business company should
write. He said an attempt had been
made to come to an agreement with the
New York Life and the Equitable Life
to limit the amount of business done
by each company to one billion dollars.
This was finally increased to 81 1,5OO.-
o0O.0O0, but James II. Hyde, of the
Equitable declined to enter the agree
ment and then George W. Perkins OF
the New York Life objected. Mr..
Hydes reason was his ambition to
make the Equitable the largest insur
ance company in the world. Mr.. Me
Chntock thought that law limiting
the amount of business would be a
good thing and felt sure the Mutual
Life would lend its support to such
legislation.
These views are contrary to those
expressed 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.. McClintock also thought that a
law compelling the declaration of divi-
dends at stated periods would be uD-
wise, AS TO the method of computing
the dividends that should be paid on a
policy, he said the apportionment was
made upon his judgment. 1t was not
q matter of accurate calculation. but
was based on the experience of prey1-
ous years. The interest earned by the
company or the increase in the market
valuation of. the securities held by the
company. Mr. McClintock said, were
not taken into consideration in appor-
lx cniA a