New-York tribune., 1906-07-07
PAUL NORTON TESTIFIES,
Mr. WcChntock also Explains In
surance Methods to Lords.

London. July G.-Paul Morton. president of
the Equitable Life Assurance Society. and EN-
ory McClntock, vice president OF the Mutual
Lie insurance Company. of New York appeared
to-day before the select committee Of the House
OF Lords on life insurance companies. Mr. Nor
ton explained the methods by which the Equita-
ole was conducted, and called attention TO the
special provision made for the security of Brit
lsh policyholders by the S.0OO0O deposited in the
Bank OF England He considered that the in
Vestigation had clearly shown the sound fnan-
clai position OF the society. but he admitted that
commence IN 1t had been restored more in Amer
lea than abroad
Mr. McClintock handed the committee reports
OF the Mutuals affairs. saying that the docu-
ments showed a satisfactory condition OF its
investments In his opinion it was not desirable
10 make special provision for the British poliev-
hoioers II was mutual company. and the
BRUSH and American policyholders shared all
the advantages. He objected to the creation OF
any special reserve in this country
Earl BeauchamD asked how it was that the
slate officials, charged with the supervision Of
the companies, had not discovered the abuses
disclosed by the legislative investigating COM
mittee' to which Mr.. McClintock replied that the
work OF the state officials was confined to the
Ver1fcatiOn of the assets and liabilities Of the
companies. They did look into the nature
OF the business transactions, because thev had
hol the time to do so. and it would practically
oe doing the work of the directors of the COM
pany. When the officers of the company did not
know what was going on, he said, it was not
surprising that people outside did not know
MT. McClintock declined to say whether he
would be in favor of the cOmpanys officials in
England summOninS occasional meetings Of the
British policyhOlders.
Answering other questions. Mr. McClintock
said he could not say that all the polfcyhoIders
were entirely satisfied. but he had reason To be-
lieVe that, on the whole. they were satisfied with
the position of the company.
a. HoWett, president of the Faculty of Actua-
rles OF Scotland, in testifying TO the differences
IN the methods Of the British and American COM
was possible to find out at once the provisions
for future profits and expenditures but not SO
with the latter. For instance an English COM
pany spent Ia per cent of its premium receipts
IN conducting its business. but provided for u
per cent An American company said 1t reserved
the whole margin between the gross expenditure
provided for and the net sum expended but
gin was. Some were spending than pro-
Vided for
Replying to a question Mr. Howett said that
i'm this country policyholder had a claim which
was enforceable. against all the property of the
company. but he was not sure that he would be
in the same position in America.
Mr. Higham. chairman of the Life Office AS
ISOLATION, urged that foreign companies doing
business in England be compelled 10 make re-
turns under the life insurance act relating to
their business In this country
The hearing was then adjourned.