The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-19
NATURALIZATION FOR
METROPOLITAN LIFE
Directors Propose to Turn Con
troll Over to 14.5OO.OOO
Policy Holders.
STOCKS CONSENT GAINED

| The Metropolitan Lire insurance Con-
pany. with its $500. 100000 OF assets. its
! $40 000, 900 OF cash surplus and its ~
900 900 policy holders. is to be mutualized
! II all parties in interest agree. according
| TO n letter addressed to the policy hold
ers of a certain class by President John
! r. Hcgeman yesterday.
Two of the four steps necessary have
ALREADY been taken. Tho majority OF the
| holders OF The $4,000. 900 capital stock
have signified their consent. although a
! meeting must be held to take formal
| action. and the board OF directoTs have
| approved. Under the .aw 1t remains only
| for the policy holders holding 81 900 or
| more OF insurance for a year or longer
and the state Superintendent OF Insurance
| TO approve. The change then may he
made from an old line stock company to
| a mutual association.
In his letter President Iiegcman indi-
| Gates exactly the procedure to be taken
! in giving the policy holders the definite
! control of the great business organizd-
/ ton. After stating that the letter Is sent
| at the instance OF the officers and dircc-
/ tors of the stock company he continues !:
THE capital stock of tho company is
! g., 1000. 900, divided into 10000 shares OF
| a par value of sa5 each. and the divi-
! bends to the shareholders are limited to
! : per cent. per annum. The charter pro-
vidcs that tho net surplus derived from
/ the business or tn' lnuuStrlal department.
shall be added to the capital stock as
! additional security 10 the policy holders.
Plan Of Procedure.
! Tic laws o. New York make pro-
vision for tac naturalization OF stock in
/ surauce companies under a plan for the
! acquisition by the company Of its capital
stock which shall be approved. first. by
a majority OF the directors. second by a
majority OF tho capital stock 1T meet
/ ing Of the stockholders called for the
/ purpose: third. by a majority vote at q
me, ting called FOR the purpose Of policy
holders each insured In at least $1,000
! and whose insurance shall than be in
/ force and shall have been In force for
at least one year prior TO such meeting.
! and fourth, by the superintendent OF In
! surance.
! "Th, plan presented to YOU has been
: unanimously approved by the director.
/ 7. Is to be submitted 10 the stockholders
! al a meeting 70 be held on the an day o;
/ December. 1914. The meeting Of policy
holders 10 vote upon the plan is called
/ for the 2sth OF December. 1914. The hold
ers of practically all the capital s:oci,
have expressed approval Of the plan"
In connection with this Il was said yes-
| tcrday afternoon that a majority NJ the
! capital stock under .he Law j. held by the
! twenty-five dire on tho board. So ;ha
/ the stockholders meeting will be merely
i formally
| The letter continues:
| The plan provides ~ Che ACQUISITION
| OF the capita, stock Al tie price OF So
per share. Its adoption WI. call for .hc
| return TO the stockholders oc 80. 900. oon,
! h. share capital. from the assets OF ;le
/ company and $4,000. 600 from tho surplus
/ The total surplus AZ tho aai o: september
} 1914 was estimated h; oy~- $40. 900, Goa
/ The advantages to be derived ~ e
| policy holders from he adoption - o..
| plan include:
"Frst-The absolg:a control = ..e
mana cement by The policy holders \,
| present under The charter tw0--h.rds u
must h. stockholders owning 'oge;.e- d.
! majority OF the stock.
! "Second-Thc safegIardus o, tle COM
! paNN for all times against henIsS TOY oh
| tanning stock control aId tog using such
| control In exploit the ass-ts and income
OF The company. II IL grave peril 10
the Interest OF policy holder. that the co,
! to. ot t." stock may. thro.Sh the death
"f those who are nov stockholders and
| deeply Interested ia lie welfare " IA.
company and otherwise. b. ecluTsh by
, men who would seek - manage he com
! pauy IN their own interest, and axaIns,
the interests % the policy holders and tho
! public The retirement OF he stock avoids
tina; peril
'Tbiid-Thc conversion o, all ron-par.
T Ncpt'.rs policies. except hose "Nclud. d
b. accordance with provisions oc thc law
at" pat paths POI .o~. Tho SAVING
AMI surplus VIII belong to -,te pol. .,
A",le's. a9I 'he,. q S,",N''i. 81. .Ne.p'
pa" held 20 d." se,..!y ol tho polcy
holder. MI. under mutual aa'ion. hs
"gmiahly mai" ia, the beaca, % tn,
| LDl'cN Eold.rs