Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-10-26
Mutual Union Decides to
Probe Its Own Affairs.
New York Legislative Inyesti-
eating Committee Adjourns
To Nov. 8, Having Aroused Somewhat
Intense Interest in Insurance.

New York, Oct. 25.-MOre interesting
than the testimony before the legisla-
tive committee Investigating the meth
DDS Of insurance companies, today, was
tine announcement by President Rich
ard a. McCurdy, Of the Mutual Life In
Surance Co, that = committee of the
board Of trustees of his company had
been appointed to investigate the COM
pany and its methods. The members OF
the committee are: William H. Trues-
dale. Eftinsham z. Morris and John w.
AucEIncloss, all prominent in the finan-
ciaI and business world. This action
WIS taken at meeting of the board,
tnJly and was the result of the in
sluance investigation. The matter was
hroI1isht before the board by President
AIcCurdy and the committee will begin
lis work at once.
Still another interesting development
in insurance matters was the statement
issued, today, by President Morton of
The Equitable Life, showing that the
+, reipts of that company for the nine
months of this year exceeded the ex-
penditures by SIG, 723, 1877, an increase OF
over $500. 600 compared with the same
period, last year. Receipts from pre-
luiurnS on policies for the third quarter,
this wear. We're over 81 100000 less than
III 1904. The expenses of the third
unarter of this year were SS39,9l3 less
than last year, but for the first six
months there WAS an increase over last
year Of Si2i.5 i3.
After an entire day given over to tn"
examination Of Emory McClintOck.
actuary Of the Mutual Life. and to tn"
reading Of column after column of fig
ur,S the legislative committee al
Iourncd until Nov. s, the day after th''
elections This extended adjournment
was taken 10 enable the members of
ih,. committee who are candidates Tor
recollection to the Assembly to meet
their constituencies and conduct thelr
campaigns.
The testimony Of Mr. McClintock was
of a most technical nature.
A number of Mr.. MCClintock's eXpla-
nations brought out the fact that ms
i,iel3 were in many respects at variance
with the established methods of lnSur-
aurn companics ana Of his own com
1nuv in particular. This was especially
,nuarcut when the subject of deferred
dividends were ambiguous ana We're
misleading MS it implied that DIVIDENDS
we've nccunulating or We're PAID al the
cud of each year. The company, ne
said. reserved the right when IL wrote
4 policy. to say what amount should ne
aunortiuned at the end of each Dividend
p,riod. .' .. N
ar McClintock also said he was
strongly in favor of limiting the
amount Of business company shouid
write. He said an attempt had bceh
ln1dc to come to an agreement with inc
New York Life and the Equitable Lle
10 LIMIT the amount of business done by
each company to one billion dollars.
This Nas finally Increased to $l,5OO,ooo,-
600 but james II. Hyde. Of the EQul-
table. first declined to enter the agree
mcnt and then George A. Perkins, OF
the New York Life objected. MT.
Hyde's reason was his ambition TO
make the Equitable the largest insur-
ance company in the world. MY NC
Clintyck thought that law limiting
she amount of business would be a Soou
thing and felt sure the Mutual LIE
would lend its support to Such leglsia-
ton.
These views are contrary to those
EXPRESSED by President McCurdy OF the
Mutual when he was on the stand. MI
ofcCurdv did not think that any COM
nanv's business should be limited even
ut the point when that business failed
70 bt, profitable To the company
Mr. McClintCCk also thought that Il
l,v compelling the declaration of divl-
bends at stated periods would be I'M
wise.
As tc the method Of computing the
dividends which should be paid on
,olity. he said the aprortionment was
made upon his Judgment 1t was not
, matter of accurate calculation, but
was based on the experience of prev
ious years.
Mr.. McClntociz, was still on the stahd
whom adjournment was taken.
neJpoopt Whjps Jensen.