New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-19
METROPOLITAN LIFE
MAY MUTUALIzE
PoIicyholders to Vote on
Plan for Their Con-
troll of Assets.

A plan for the naturalization OF the
Metropolitan Life Insurance Company
which has been approved by the board
of directors and the holders of practi
cally all the capital stock. was sub
mitted yesterday TO the policyholders.
/ Pursuant 10 the insurance law. only
/ pclicyhoders who are insured for at
/ least 81 geo, and whose insurance shall
/ have been in force for at least one
yea have the privilege of voting on
the matter The great bulk OF IN
surance written by the Metropolitan is
Industrial, and for policies considerably
less than $1,000.
The amended insurance laws, follow
ing the Armstrong investigation, sim
plifed the method of multiplication of
stock insurance companies by allowing
such companies TO acquire their own
capital stock, subject to the approval
of, first, a majority Of the directors;
second, a majority Of the capital stock
al a meeting of the stockholders called
for the purpose; third, a majority vote
al a meeting called for the purpose Ct
policyhOlders who are insured Tor
81 900 or more and whose insurance
his been IN force for a year, and,
fourth, the Superintendent Of lnsur-
ahce.
The plan is outlined to the policy
holders in g. letter mailed TO them yes
terday by John X. Hegeman, president
of the company The stockholders VIII
meet on December TO pass upon the
plan and the policyholders' meeting IS
Sc. for December %. As majority Oh
the capital stock is held by the direct
ors, 4 was said, the meeting OF the
stockholders will merely be formal
.tv
In his letter TO the pollcyholders
President Hegeman said:
1.-THE capital Of the company IS
81 600 600, divided into 10000 shares OF
sos each, and the dividends to the
shareholders are limited to per cent
per annum. The plan provides for the
ACQUISITION of the capital stock at the
price Of SIS a share.
ats adoption will call for the return
10 the stockholders of S2000,000, the
share capital, from the assets Of the
company. and S4000,000 from It's sur
plus. The total surplus at the end OF
September. 1914, was estimated at more
nan S4O,000,0O0.
"The advantage to be derived by the
policyholders from the adoption of the
plan include:
81. The absolute control of the man
agement by the policyholders. AT pres
ent. under the charter, two-thirds Of
the membership Of the board Of direc-
tors must be stockholders owning to-
gether a majority of the capital stock.
"'2. The safeguarding OF the COM
pany for all time against schemes for
obtaining stock control and for using
such control to exploit the assets and
income of the company. It is a grave
peril TO the interests Of policyholders
that the control of the stock may,
through the death of those who are
now stockholders and deeply interest
ed in the welfare OF the company and
otherwise. be acquired by men who
would seek TO manage the company in
their own interests and against the in
terests Of the policyhOlders and the
public The retirement of the stock
avoids that peril.
"'3. The conversion Of all the nom
participating policies, except those eX-
Guided in accordance with provisions OF
law, into participating policies. The
avings and surplus will belong to the
pOlicyholders, and their distribution,
kept the part held FOR the security
2 the policyholders, will under NUT
-alization be equitably made for the
eneft Of The policyholders.'
"The company has in force more than
100000 policies. OF these 14,250,O0o
are non participating. If the plan pro-
posed be adopted, all these policies will
participate in the savings and surplus
under equitable rules prescribed by the
directors, who will be elected by the
1olicyholders."
The plan calls FOR he deposit of
100000 in the New York Trust Com
Dany, from the surplus Of the Metro
nolitan Company, for the retirement of
he capital stock. Stock deposited with
he trust company viii be paid for on
January 5. 1915. provided the plan has
been approved at that time.
Upon the approval of the plan steps
Ill be taken 10 conform the charter
the status Of the company as a NUT
itl life insurance corporation, as pro-
ided under Section % of the insurance
law.