The news & observer., 1905-12-15
THE INSURANCE
TURNST|LE GOES
1t Turns Geo. Perkins Out
and A. {. Orr In.
BUT THAT is NOT ALL
A Belated Revolution Lands Charles
Peabody into the Seat Of Richard
A. McCurdy at One Third the
Salary That McCurdy
Received.
CIV the Associated PressD

New York, Dec. 1.-TWO incidents
affecting the life insurance situation
in New York today overshadowed the
legislative committee investigation.
While the committee was nquiring
into the conduct of the Prudential
Life Insurance Company and the Met
ropolitan Life Insurance Company,
George w. Perkins resigned as first
vice-president and chairman of the
finance committee of the New York
Life Insurance Company. He was sue
ceeded as vice-president by Alexander
f.. Orr, president of the New York
City Rapid Transit Commission, ana
as chairman of the finance committee
by John Claflin, head of the Fl. II.
Claflin Company.
Another important move in the Sit
uation was the election by the trus-
tees of the Mutual Life Insurance
Company today of Charles a. Peabody
to succeed Richard A. McCurdy as
president Of that company at $4,000
a year. Mr. McCurdy's salary was
$150,000. Mr.. Peabody is Il lawyer,
the American representative of VIM.
Waldorf Astor and q director in sew
eral banks and other corporations, of
which one is the Illinois Central Rail-
road Company. Mr.. Peabody also was
nominated as trustee of the Mutual
Life Insurance Company to succeed
Justice Rufus w. Peckham, and Emory
McClintock. was nominated to succeed
Elihu Root. They cannot be elected
as trustees until the next meeting of
the hoard.
Dryden Again Tcstifics.
United States Senator John +. Dry
den, of New Jersey, president of the
Prudential Life Insurance Company,
again testified before the investigating
committee today and made a state
ment to the committee of his reasons
for favoring federal supervision of life
insurance companies through q ma
tionaf insurance department which he
said should have high authority over
them. This, he said, would bench,
both the companies and the insured.
The tendency of the holders of the
Industrial policies in the Prudential
and Metropolitan Life Insurance Com
panieS to lapse was examined in great
detail by Charles Z. Hughes. coun-
sci of the committee who quoted
statement of the Prudential Company
that ~ per cent of its industrial pol
icies lapse within five years from the
date of issue. Senator Dryden de-
clared that this is much 10 ue regretted
from the standpoint of the company
as we'll as from that of the insured
and, that the tendency now is toward
a greater persistency on the part of
the industrial holders than formerly.
The Senator asserted that Industrial
insurance, even with high rates and
tendency to lapse is the greatest
economic force now in operation in
this country.
Just before adjournment today
HALEY FiSke vice president of the Met
ropolitan Company told of an incident
in which that company commissioned
VIM. A. Read to buy 1888 shares of
railroad stock for the company. Mr..
Fiske said that Mr.. Read the same
day sold the stock to a company of
brokers at so share less than the
broker sold it to the Metropolitan. Mr..
Fiske said he had tried to get the
money back but Mr.. Read refused to
surrender it.
Tennessee Policy Holders to Meet.
r. F.. Folk, Insurance Com
missioner of Tennessee, was
a visitor at the legislative insur-.
ance investigation this afternoon. He
had a conference with Mr.. Hughes.
counsel to the committee. Mr.Folk
said he had called a meeting of Ten
nessee police holders of all mutual
life insurance companies doing busi-
ness in that State. The meeting will
be held in Nashville next Wednesday.
He said he had recommended that the
policy holders in each company ap-
point a committee and give these
committees their proxies to attend the
annual meetings. of the respective
companies. Mr. Folk would not say
whether this meeting is preliminary
to a national meeting of policy hold