Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-25
ACTU AIRY ON THE STAND
MUTUAL FMPLOYE RECALLED TO
TESTIFY FURTHER.

NEW YORK, October 25-Emory Nc
Clintock actuary of the Mutual Life In
surance Company was the first witness
before the insurance investigating COM
mittee when the investigation was resumed
today. Mr.. McClintock was recalled to
give further details of the technical phases
of life insurance in addition to those he
gave yesterday.
The subject of dividends was again taken
up. The argument against deferred divi-
dend policies contained in the Frick re-
port on the Equitable Life Assurance So
ciety, was read to the witness.
The Frick report, in substance, declared
that there was a potentiality of evil in the
system which defers the distribution of
dividends for period of years; that the
policyholders who survive benefits, but
those whose policies elapse suffer a disad-
vantage. Mr. McC--ntock said the of
the word surplus had been great detri-
ment to the Equitable, because 1t was gen.
orally misunderstood. He said it implied
that the amount of surplus was available
for immediate division. Other companies,
he continued, had reserve and determined
what amount should be divided among the
policyholders and what amount should be
reserved.
No Objection From Moral Standpoint.
Mr. McClintock said that as each man
understands the conditions of the deferred
dividend policy before he takes it our there
did not seem any real objection to the
plan from the moral point of view. es
pecially as each policy carries its own
surrender value. 1t appeared to him that
the companies might properly state the
total amount of premiums on each class
of policy that have not yet received their
dividends He estimated the amount of
such in the Mutual at 1922. 100000. This
would not enable the policyholder to COM
h fS 1iI-i6n and with hos of how
of other companies.
Five years ago. Mr.. McClintock said the
Connecticut insurance department began to
consider all not needed to meet immediate
losses and debts must be surplus. But
this he said, leads to misapprehension.
Mr.. McClintock said the words deferred
dividends were ambiguous and lead the
policyholder to believe that there were
dividends accruing that would be paid to
him at the end of each year. The New
York Life Insurance Company, he said
had stated its accumulation of deferred
dividends for several years. This was
sometimes regarded as a legal liability and
sometimes not. When he became connect
ed with the Mutual Life Insurance Com
pany there was no calculation of this
accumulation until the end of the dis
tributlon period, so there is no recognition
of legal liability except for purposes of
bookkeeping
Equitable Directors Elected.
directors of the Equitable Life Assurance
Society Sir William c. Van Horne of Mod
treal, j. d. Herman of Utica and William
e. Redfield of Brooklyn were nominated 10
fill vacancies. They will be elected to the
board at the November meeting.
Sir William Van Horne was director
Of the society under the Alexander admin
istration. but resigned during the process
OF reorganization.
At the meeting today President Morton
ana Controller Day submitted statements
dealing with the company's business the
first nine months of the current year. There
was also statement covering the society's
real estate loans from January l, 1895. to
October l Of this year. Cash loans for this
period aggregate s117 ,S20500. OF this
amount, five cases were foreclosed, leaving
q net profit of not quite $4,000.
OF the many mortgages on property sold
by the society from January 1, 1896 the
controllers statement showed one fore
closure, with a loss of 81, 1877.
Receipts of the Equitable Society for the
third quarter Of this year for premiums, in
terest, rent, ETC., amount to $16. .973, ,O37, as
compared with ST, ,306,3 314 in the same quar-
ter of last year. Disbursements for the
third quarter of this year amount to Sill
800, ,4S3, against $11, ,9O4, ,535 last year.
Receipts for the first nine months of this
year amount to $55,T72, 176, compared with
$50, us 642 for the first nine months of 1904.
Disbursements thus far this year are
somewhat in excess of those for 1904,
amounting to $39,o4s.979. as against $37. .551,-
504