The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-02
PHILLIPS PRAISES
THE DU POINT PLAN
state Insurance Head Willing
to Aid naturalization Of
the Equitable.
APPLETON FIRST DEPUTY

ALBANY, July 1.-THE first act Of the
new State Superintendent of Insurance
| Jesse s. Phillips, who assume onice to-
| day, was to reappoint Henry ID. Apple.
ton, who has been In the department
over thirty years, as his first deputy. at
a salary OF $500. and he then Issued q
statement regarding the du Pont control
Of the Equitable rAfe Assurance So
ciety.
II am in hearty sympathy with the
naturalization movement, and. so far as
tho statutes will allow me. will gladly
| cooperate to have effected any plan
which IL of real and not merely theoreti-
cal benefit to the poiicyholders," he
said.
There can he no doubt hat the elm
nation of the stock would rernove any
cause for uneasiness arising because Of
It's present existence and the possibility
OF its sale or resale. and II II can be
retired In a manner satisfactory to all
| pa rites In interest I would regard II as
an achievement.
"It must be borne In mind. however.
that the stock in any life insurance cor
poration IL properly In the hands OF the
stockholders In the same sense that
stock in any corporation Is. and that the
same can't be retired except by paying
therefor. The question of the price TO
be paid for the same. Is. so far 40 the
| r~olicyholders are concerned. tho vital
! question to be considered In any pro-
posed naturalization plan.
Section p5 OF tho Insurance law.
which provides the method for the mu-
tuahEation OF n stock company, pro-
vides that In no event can such a price
be paid for stock as will reduce the
assets OF the company below its total
liabilities. If naturalization is effected
the assets OF the company. and hence the
security to p~olicyholders. will be re-
duced by the price paid to retire the
stock. so that in any plan Of mutual
ization the value placed upon the stock
Ia M important factor.
"If the value placed IL low and rea-
sonable. the elimination OF the stock
would be desirable IL. on the othei
hand. the price asked will actually re-
duce the surplus of the company 70 AZ
TO affect the security Of the policy.
holders. then the question OF what the
company has to gain by naturalization
is very pertinent.
ME, from the circumstances sur
rounding the Equitable. ! feel that mu'
tualixation could be accomplished. Il
would be desirable the public inc tn,
p~olicyhoiders should not lose sigh
Of the fact that whether the soc.et,
is stock or mutual its conduct as q
life insurance corporation will be tn,
same. 1t will be bound by the sam,
laws regarding investments and genera
limitations, as the same may apply
which are now thrown about the III,
insurance business.
THE New York insurance laws ar,
very stringent, and the Department Il
amply equipped to see that they ar,
observed. II il my intention to see {,
II that they are observed In lettel
and in spirit. This applies to tn,
Equitable and to all companies unde,
the supervision of the Department.
The rights and interests Of policy
holders will have my just considcra
ton, and TO that end all transaction
will be subjected to the closest scrutiny
and II any action Is necessary 10 protec
the policyholders' interests In any com
pany the public may rest assured tina
such action As the law and the fact
warrant Will be TAKEN