The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-10

now so much written and protects hundreds
OF thousands Of families.
OTHER sPEAKERs.
A. o, WEIGH. vice-president and actuary
OF the Php7ix comrany Of Hartford, spoke
on the question Of the sUITtnoer value
OF non-forfeiture policies and detailed
the work Of the actuaries' committee on a
Proposed standard policy.
While sympathiZing with the committee
In its desire to see the expenses Of life
insurance companies decrease, " said Mr.:
WEIGH, u believe the proposed method OF
securing such result to he faulty, and that
1t can be attained in other ways, such as
annua accounting and limitation Of amounts
TO be written in a more equitable manner"
e. Z. Rhodes of the Mutual Benefit Of
Newark talked on "Loadings.' He said II
the committees recommendations were
adopted 1t would have the effect of In
GSreasing The size Of premiums on most
his company would feel impelled to with
draw from this State.
j. X. Gore of the Prudential company
also spoke on loadings az applied to in
the bill be amended 80 that the loading pro-
vision shall not apply TO the business OF
the industrial companies.
James J.. Englis, vice-president of the
Etna Of Hartford, talked briefly for the
companies of other States
Joseph Ashbrook, vice-president OF the
Provident Life and Trust Company OF
Philadelphia, declared that he could not
see how he could conduct his company
success fully under the committees recon-
mendations as to limitations on loading,
renewals and surplus.
George H.. Noyes of the North western
Mutual Life Of Milwaukee urged extreme
conservatism on the committee. Insurance
business had resulted in creating vested
rights which we're not to be ignored of
hand, and If the committees recommen-
datlons went too far his company, like
others mentioned previously, would with
draw from the State.
~HoRNBLowER SPEAKS FOR NEW YORK LIFE.
William B. Hornblower at 1890 P. M. got
the floor. He had been waiting for a chance
to speak during the entire day and said
his remarks would be made as a director
Of the New York Life. His company had
unanimously decided to take q stand on
the recommendations Of the committee.
The company had welcomed the work Of
the committee and were in he arty accord
with the slggestions, such as accounting
for expenditures and for publicity. In the
matter Of investment his company had
voluntarily adopted several years ago the
plan recommended by the committee.
1t owned not a single share OF stock in
any corporation and its assets were prin-
cipally in gilt edged railroad bonds and in
bonds and mortgages. If this regulation
against holdings of stock were imposed on
all the companies. he considered that it
would be imposing a burden upon them that
they would be unable to bear. The provi.
sion was too drastic to be applied at full
swoop. He thought Paul Morton's sugges.
tons as { investing in stocks having good
dividend records vera wise.
RESERVE DIVIDEND PLAN.
Mr.. Hornblower thought there was some
thing to be said on both sides of the reserve
dividend plan Of business. All would
agree that there should be an annual ac-
nNttn Ntn~ ~ h. rAEarNya nnnaYv Axrnn ~ |
the actual disbursement be withheld for a
time. Such a plan would obviate nine
tenths of the objections to the system.
On the subject of the contingency re-
serve Mr.. Hornblower said the provision
preventing a company maintaining a re-
serve above 2 per cent. over the minimum
required by law was hardly proper in view
Of the fact that first class gilt edged mort
gage bonds sometimes fiuctuated more
than 2 per cent. in very short periods.
LIMITATION OF BUSINESS.
Discussing the question Of limitation
of business and the expenses of new bust
ness, he said he was sure that the COM
panies were willing to have some limitations
placed upon the expansion of business.
The questions We're as to methods to be
followed and the time when the changes
should be accomplished.
The change should not be suddenly
brought about, as 1t would otherwise
create a state OF confusion and loss to all
concerned. There must be a period Of at
least a year to permit a proper regulation
of the change and to permit the agents
to conform themselves to new conditions.
We have had testimony from many Of the
sma Ter companies that they cannot do
business under the conditions to be i'm
posed. The net result of enacting this
legislation, said Mr.. Hornblower, will be
that hundreds Of millions of life insurance
will go unwritten.
The hearing concluded at 1920 o'clock
with the comment from Senator Armstrong
the committee had considered the OBJ
jections made by Mr.. Hornblower in reach
ing a basis for limiting the amount of in
surance which may be written by the big
companies.