The Birmingham age-herald., 1905-12-21
President of Germania Life Says German Business Su-
 periOr to American
AMERICAN WAYS ARE
 CALLED WILD METHODS
John TatIock Says Sound Man In Touch With Wall Street Should Run Insurance Com
 panies.

New York, December 2o.-The Washing ton Life Insurance company, the Ger mania Life Insurance company and the Bankers Life Insurance company, dvid- ed the attention of the legislative insur- ance Investigating committee today. John Tatlock, president of the Washington Life finished his testimony which was begun yesterday. MT. Tatlock declared that personally he favored distribution of earnings every five years. The wit ness took occasion to say that Thomas F. Ryan never sold the Washington Life any securities, and that he never inter- fered with Or suggested to the finance department. what securities to be bought. MT. Tatlock said he thought the insur- ance companies should be run by men in touch with Wall street. because of their knowledge of the security market. He also favored the idea of insurance com panies speculating in securities.
 Cornelius Doremus, president of the Germania Life, said that one-third of his company's business was done in Europe, principally in Germany, and that this business is better in many respects, than that done in America. He declared 1t to be more stable, there being fewer lapses, while the cost is a great deal less than in America The acceptance of risks is also better in Germany, he said He characterized the American ways of do- ing business wild methods" The only contribute iopsss ssgefe esaf legislative character paid by this company were $500 to a fund having for its object the defeat of the mortgage tax law, and $250 to further the passage of lien bills at Albany in 1904. No campaign contribution had ever been made
 E.. B. Bayless who collected the fund to defeat the mortgage tax law, said on the stand today that he secured a fund of s22,0o0 for this purpose. The examina- ton of the Bankers Life will be resumed tomorrow
 Ryan's Attorney Present.
 When John Tatlock, president of the Washington Insurance company appeared in the committee room of the investigat- ing committee of insurance he was &C., companied by Paul D. Cravath Thomas F. Ryans personal counsel. MT. Tatlock upon taking the stand identified list of collateral loans of the Washington Life which had been since January 1, 1905. None of these loans had been made to or for the benefit of any officer of the company.
 statement of legal fees for ten years paid by the company presented. MT. Tatlock said he could find no record of payments to Andrew Hamilton or to Andrew C. Fields nor any payment for legislative purposes.
 A statement was presented by MT. Tat npk Gh inc tha tcfa 1it1tr ftaGt of the Washington Life of November 1 to have been $12, 900 in annual divi- dend insurance and s45, 0,0O0 in deferred dividends insurance.
 The earnings for nine months of this year, witness said, as far could be cal culated were s226,000 of which s770O0 was paid as dividends to policy holders and $149000 surplus
 On the subject of apportioning divi- dends Mir. Tatlock said his company kept the individual account with policyhold- CTS to show what was coming to them annually. as President Ide of the Home Life testified that company did. Asked as to what he thought of that system witness replied that he could ob- lection to it. Personally he should fa- vor period of surplus earning dis tribution every five years, certain ly not less than three years. This was because he thought a greater degree of
 
 reason of the con1iction of the calendar year with the policy year. MT. Tatlock said the annual dividend was engrafted on premium life insurance by reason Of annual valuations preferred by state and by competition. The original period of distribution, he said was five years
 Would Help Situation.
 Replying to MT. Hughes the witness said that if all companies should he compelled to distribute their gains after setting aside a reasonable amount for expenses, 1t would help the situation ma terially. His objection to annual divi- dends system is deeper than that. how ever he said. The experience of the witness in handling foreign business was gone into He of the opinion that life insurance should be made in the countries where the companies are domi- mated His main is because of the requirements of foreign countries that liabilities of company must be cov- cred by assets deposited in that country He further said that Thomas F. Ryan never influenced any action on the part of the board and never suggested the purchase of any securities. The purchase of American tobacco that up in vesterday's testimony MT. Tatlock said. was suggested by Levi P Morton and was concurred in by the board.
 Witness thought the investments in securities Dy lnSurdnce coiiIpaihes was q matter that could be safely trusted to men of good judgment. It was his opin- ion that insurance companies investments should be handled hv men in close touch with Wall street. He said the Washing ton Life had never bought any securities from MT Ryan. MT. Morton or any other officer but had bought some from the Morton Trust company.
 Mir Tatlock just before leaving the stand said that the views on investments
 
 fconffnued On Seventh Paoo.l