New-York tribune., 1906-06-17
NAY ABANDON FRANCE
INSURANCE MEN ANXIOUS.
Recent Decree of Council of State
CfppIes american Companies.


--,lsss il is possible 10 obtain some nodinca-
-, n the decree recently promulgated by the
Ionncil OF state Of the French government.
.rh,cb makes 81 necessary for American life in
rca companies TO replace the securities held
ora,nst its French policies by French securi-
-. fand IL is conceded here that such rnodia
..,ion can scarcely be hoped for now, many
:, The American companies may withdraw from
rance II may be stated with some positive
-.ss that the officers of the Mutual Life had
se.errn!ned that II would be necessary 10 with
s-sw If the law was not modified and was
made retroactive.
marvin P. Kingsley, vice-president of the New
york Life said yesterday that to withdraw
srom France meant a practical withdrawal from
-, Europe so far his company was con-
,e-,ed What course they viii pursue is vet
- he determined. Only recently the Mutual Re
ss-ve withdrew from England because its busi-
ness there was not considered profitable. and
:, will probably adopt the course in
nance as the new law makes the business there
much less profitable The companies cannot
oh+siu the same income from the French securi-
,ss as from similar investments in this country
TIE Equitable already has invested consid-
snsble money in French real estate. and would
m. have TO make many more investments in
fhs- country TO comply with the French law.
7, view Of that fact. the Equitable may remain
n France.
The companies are viewing with consider
shle alarm this tendency TO make il more diff
cult for the American life insurance corpora
,sons 70 Go business In Europe. and If other
countries should make laws similar TO the
French law the European business might be
given UP altogether. They are finding it hard
enough 70 get new foreign business it is, on
account Of the insurance scandals
The New York Life has been doing all its
European business from its Office in Paris
where William Z. Ingersoll. one Of the second
vioe-presidents. IS IN charge He has been ex-
sring his best endeavors TO obtain modifca-
+ion of the French law, but the news that has
been published IN the "Offlcial Journal" would
seem 10 indicate that further protest would be
Be useless.
vioe-President Emory McClintock, Of the
Mutual who sailed for Europe IN May, would
have gone direct TO Paris for the purpose Of ex-
.rting his influence toward { modification OF
the Law had he not been obliged 10 stop in Lon
don on account Of the attack against the COM
psny engineered by D. c. Haldeman. Accord
ing to his last known plan. he was TO be In
paris on Wednesday There seems little that
be can DO now. however. But the officials hsye
will not take up q consideration OF their final
~AANN~---@NN~-@
Paris
The rates Of the Mutual IN France are all
based on the income they have been able TO
obtain by investing the premiums in this coun-
try To write insurance there on the basis OF
he income TO be obtained from French securi-
lies would make II necessary to raise the
rrenlilrns. II this is done. the company could
not hope 10 compete successfully with French
companies, and might as well drop the business
entirely.
The latest figures obtainable show that on
hnuary !, 1905. the four American companies
doing the largest foreign business had 432949
foreign policies. representing S10s7. .3oo.168 in
surance Their premiums paid on foreign busi-
ness in the preceding twelve months was
S47.049.940
vIoe-President Kingsley, Of the New York
Life. said yesterday:
What the New York Life viii do under the
new law is as yet undetermined. The question
e. issue IS q very important one. our co.L- on
psry has been In France and In the greaLeI
uart OF Europe for upward Of thirty years 1ts
business is long and soundly established in SUD
stantially every country OF Europe with geheIaI
headquarters in Paris us income IIIG1sn ! tto nc
Paris Office is now S1S,Oo0oOO year. rms py
itself represents great life insurance CO npalg-
Moreover. our business there Is prontabie' me
mortality is good and our organization is serving
To withdraw from France means practically
ready said, is a very grave question. Unoer
cur bylaws no portion Of the companys securl-
ties can be deposited with any government WITH
Our the approval OF the board Of trustees. In que
course the finance committee Of the company
will recommend 10 the board what IN thelr
Judgment IS the proper course 10 pursue i 1
cannot attempt 10 forecast what II VIII
b L IS fair TO say, however that as We
have five years IN which TO make the oeposlI
required by the French law, and as our income
through the Paris Office at the present llIne j.
SlSO0JGgJ a year II might never be Necessary
S0r US 10 send either money or securities over
there e. order 10 comply with the law
ANY notion that, TO comply with the law. we
should have 70 send over money which repre-
Eents the premiums Of American policyholders
Is Z mistake Il should not be forgotten that
We have large sums Of money invested mere
which represent premiums paid by Frencn pol
icyhOdeTs and II the reserves on French Dusl-
Asss have 10 be lodged with the French govern
nent these reserves viii only represent an IN
Vestneut q premiums paid by the FrenchHlen
ard NOT al al the premiums paid by the citizens
q Other countries
force OF men in the Mutual Life. under the
direction of William P. Sands. cashier, is now
Engaged in cutting interest coupons valued
q $4,000 from bonds. the face value OF
which IS over S5OO000o0 These are the cou-
pons which come due on July j. and. 10 have
HEN ready 10 be cashed that day, half a
oozen have 70 work for two hours day
1or over JWo weeks. The coupons are detached
ny tearing them with a steel square. and the
ioFce Of men in the cage Of the vault room with
hllions q dollars IN bonds about them is an in
terestiag sight