Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1905-10-28
MUTUAL LIFE
TO INVESTIGATE
Trustees Appoint Committee to Probe
Company's Methods.
HOW THEY AWARD DIVIDENDS

New York. Oct. 26-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 Lite lnsur.
ance company. that committee oil the
board u trustees OF company hau
been appointed To investigate the COM
pany and It's methods
The members OF the committee are:
William II Truesdale. Eiingham B.
Morris and John w Auchincloss. all
prominent IN the financial and bust.
ness world
Still another interesting develop.
mcni In insurance matters was the
statement Issued Dy President Morton.
OF the Equitable Life. showing that tho
receipts OF that company ioI the nine
months OF this year exceeded the ex.
penditures by $l6.723l97. an increase
OF over $500. ObO compared with the
same period last year. Receipts from
premiums on policies for the third
quarter this year were over 100000
less than IL 1904. The expenses OF
the third quarter OF this year were
$s39.9i3 less than last year, but for
the first six months there was an In.
crease over last year OF $i2i.9i3.
After an entire day given over to
the examination OF Emory McClintock.
actuary OF the Mutual Life Insurance
company. and To the reading or col
umn after column OF figures. the legis-
lative committee adjourned until No
vembcr s. the day after the municipal
elections
The testimony of Mr.. McClintock
was III a technical nature. A number
OF his explanations brought out the
fact that his ideas were In many re-
spects 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 was being inquired into He said
the word deferred" was ambiguous
and misleading. as II implied that divi.
Mt the end Of each year. The com
pany. he said, reserved the right when
II wrote a policy to say what amount
should be apportioned at the end OF
each dividend period.
MIR McClintock also said that he
was strongly In favor of limiting the
amount OF business n company should
write He said an attempt had been
made tn come TO an agreement with
the New York Life and the Equitable
Life 10 limit the amount Of business
done by each company to 100000.
nO0 This was finally increased to
81 $40 000.000. but James II. Hyde. OF
the Equitable. first declined To enter
the agreement and then George w
Perkins. of the New York Life. OBJ
jected Mr. Hyde's reason was his
ambition To make the Equitable the
largest insurance company in the
world Mr.. McCllntOck thought that
a law limiting tho amount OF business
would he good thing. and felt sure
the Mutual Life would lend its sup
port 10 such legislation
I
Mr. McClintock also thought that q
law compelling the declaration OF divi
dcnds at stated periods would bs un
wise
As 10 the method OF computing the
dividends that should be paid on q
policy. he said the apportionment was
made upon his Judgment II was not
n matter of accurate calculation. but
was based on the experience OF pre-
vious 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 tho market value OF the com
panys securities had decreased In
1904. however. the securities rose In
value so that sS.OOO.OO0 lost by the
decrease the year before were re-
gained and n million in addition. The
dividends were not increased for 1904
however. yet they were not cut.