The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-18
4 SPAF OVER MUTUAL LIFE
SUPr. HOrCHKLSSA ExAMINERS
D0NV LIKE SOME ITEMS.

wv Asss7@ - EHEsNN @@344 Atl@
tharaay Adverse - she E=s=.sae=.
s,Ipt. Hotchkias % the State Insurance
Department. Issues a statement for pub
lication this morning summarizing the
The report OF the departments exam
iners on their last examination OF the
Mutual Life Insurance Company. Mr..
Hotchkias's summary. which In entitled
Publicity Statement.s says that the re-
port Is generally complimentary 20 the
company. but mentions also certain
'ssvers criticisrn.' OF some Of It's actions
eince the passage OF the Armstrong law.
President Peabody Of tho Mutual IN
a brief reply TO Mr.. Hotchkius's state
pnent Gays that two Of the crttic,nms
are too silly to discuss and that In spirit
they misrepressnt tho facts. Az 90 the
third. which has 90 do with the settle
ment 81 the McCurdy claims, hs leave.
= 10 the pclIcyholdsrs. ito whom ne
says. I'VE are accounta bic 20 fudge
a. between the department's examinsr
views and the advice OF the COMMITTEE,
headed by Benjamin r. Tracy on which
the company acted.
Mr. Hotchkiss's 'publicity Statement.
70 As follows:
ArepNr' ~ m examination OF the Mutual
life Insurance Company for the Years
IHns-T-s has been placed on fle bv the
Superintendent OF Insurance The examI-
nation was on the financial statement Of
December N. nos 10 was quite exhaustive
and Mas In progress several months. This
the first examination Of this company
since the laws recommended by the Arm
-trong COMMITTEES were enacted
NJ accounts Of the company were checked
and al as-.ts and liabilities verified. The
report shows that tho pre- MUM income
rom policyholdsrs aggregates over
So.po.Sa. that the interest rent income
= approximately t2S.oso. On and disbursa-
nents for the benefit OF policyholders
amount to nearly 81. O0o on annually The
company had ledger asSetS December ~
isSS ~ siia. Esq III. ~: total admitted assets
'st' ~. 2oS 10 In addition the report con-
tsin- fall explanation Of the company
method 81 dividen q accounting and dis
'rlhuiinn. both annual and deferred The
Examiners state thar proper restraints have
teen placed nv the company upon the
supply department where expenditures for
legislative and other improper purposes
we're concealed nv tho previous mana R.-
is"nt. AMI thar the system in operation a,
present viii prevent recurrence OF such
prsotire-.
compilation of the gains and losses
" N0N COMPANY Tor tho years under eNamA- /
nation shows that under the AmPstrons
'ommhtss amendments ~ the law the
company has added 20 surplus over
tsaco6o 80. OF which approximately s1l.- |
~ 90 has gone to the al yidend account
and the balance. Of about siS 5Oo 900 has |
i~~n used 20 bring N. surplus M 20 the |
limit permitted wv law and - allow IN.
charging oh 0f the vslu" of portion 81 |
the real estate. The company has in
cTeased IT, dividend factors several times |
since the new laws went into eject The |
report also shows In detail what efforts !
ihe company has made 70 dispose 81 it, |
s'oeka. honds and real estate. required bv |
the legislation ~ ipos Tn" report gives |
detailed Information regarding ledger a.
let's, premiums. dividends. profits and |
losses IN a@se,s. collateral loans schedules |
~ dividends under various forms Of policies. !
schedules Of surrender policies. offcers |
salaries and shows tho Increase in the per
censage ~ expenses
The company undrrs'a'.d ne liabilities |
On account 81 death ella In- December u
ieos. bv $50 Proper action has been /
tsken to avoid this IN the future n. /
legal department also did not report all I
-" contested claims. ~ required bv tho /
law. hut has greed 70 correct This Practice |
The report on the who'll l. oompl men
'arv ~ ths company. The examiners fud |
i-s' the company has complied IN the main |
WITH The Insurance law a. amended hv the |
ARMSTRONG committee The severe c-iti-
''sm ~ made. however. that the company i
b. In "ns particular evad~d the re.trlc- /
'0rs ~ section ~ ~ 'he Insurance ,aW.
Wrich limits the amount n company can l
'Npend IN securing new business
The examiners IND. for Instance. that
curing the wear inns the comuarv paid \
tor supervision ~ old business tho sum /
go SiIiuOo There - 10 record ~ the /
fNfHI F.f a
isr'orIy explains what was done in return |
20 me expenditure ~ this money The I
company claims y was paid In rood faith /
O. various agents for looking after business
already ~ 'h" books - prevent IN" lap--
.rs NJ p"li"ia-
IN" "Namin"rs state. however. that an
irN"sii sat On ~ = few Of th. hranch ganci.--
which -''".-'d = conzidrrabi" part ~ this !
amount l"ad- - m" inevitable conclusion
''n' ~" money was paid not for super
''-'ug Old business hut substantially iu 4
f's form ~ borI-ss - tho" agents who
v.r" most -u'r"~-ful be acquiring nov bu~l-
Ices ~" -uVV--fion H. mad. bv the
'fH'n,r'r- thar II companies can paw agent
amounts ~ money beyond ih.. limits n.
i-o,tdrd hv Law under the pr.touc,. OF pro-
'..' ~ M" Old business but really 90
- T4l7'" ~" agents - SECURE new bust
f.e- -" -siutrrv purposes ~ section OF
an b" utterly defeated
DO Examiners nlao note that in 1914 !
r.rg a ,trnrrign for the elect on OF ii
f@0'of- ur Ter ~" amended law. IN" COM
) arF ln"r"ar"d ~ agents advances bv
D ~" than double IN" amount paid during
-. other quarter 81 the year. and that
"'ng N" sarn" peri"s tho Managers .x-
f"'drh fit' ~ ~ NOR" than they had
been authorized =" exp.nd by the COM
ne" oi The board Of directors
IN" settlement Of the M,Curdv suits
~ N" company h. also criticised by the
evan nsTs m The report ~ seems that n
ron ni''~e ~ ~" hoard 81 directors. acting
'fi@r the advice Of Joseph ~ Choste and
lanes Mckeen, counsel for the company.
commended a settlement Of the matters
~ dispute IN the MCCurdy suits by which
''H company receiyed s5j0.OOO and paid
- f'' IN. Tho examiners show that the
'"''l"ment took place upon this basis
b''"f rhi- committee had made a detailed
report 20 the company and say that such
'"rort was Inaccurate IN it, statement OF
'act- IN many particulars and thus the Z
sN's were settled by the company upon {
Hl-i"adinR Information.
sup' Hotehklss. upon being questioned
p ref"r"hes e. the report. stated that he had
ia1 no comment N Fnaka 49,. |