Omaha daily bee., 1905-10-07

sessions TO be held Tuesday. Wednesday
and Thursday. instead Of Wednesday.
Thursday and Friday as heretofore. This
change was made because Friday is regis
tration day in this state and members Of
the committee desired TO be present in
their various districts
When the investigation opened today II
was expected the president Of the Mutual
Life would be called to the stand before
the day was over. BY misunderstanding,
however President McCurdy had left the
once of the Mutual Life before he was
called for and it is expected that he will
be the first witness on Tuesday.
Salaries Are High.
In todays testimony the sensational de-
velopment was when Mr.. Hughes demanded
! the payroll of the executive officers OF the
company. This was produced and showed
the salaries of these officers since 1877. For
the year 1904 President McCurdy received
$4,000; two vice presidents were paid $4,000
each; second vice president 1880. the
third vice president $4,000 and the general
manager $4,000, who this year will receive
$4,000. and the treasurer $4,000
Robert McCurdy said he never knew
the salary of his father until today. when
he heard it read in the committee room.
He thought, however, that there should
be no limit to the salary OF such posi-
tions because they should be in accordance
with the accumulations OF the company.
When asked II ii was any benefit to the
| policyholder to increase the presidents sal
| airy, Mr.. McCurdy said he thought the
| trustees had considered that when they
! increased the presidents salary. No in
crease, however had been considered when
he was present at the trustees meetings.
Earlier in the day when Mr. McCurdy
| was on the stand Mr.. Hughes tried to
bring out why c. II. Raymond & Co. and
1 the partners In that firm received larger
emoluments from the business than any
other agency.
Mr.. McCurdy said he did not know what
Mr.. Thebaud received from the business,
and had never talked with him about his
personal affairs. He said It was a large
reward for large achievements" and that
/ all businesses of large magnitude were
built up on that principle
McCurdy Cares for Relatives.
During Mr.. McCurdy's testimony it was
brought out that George NJ. Raymond, a
| brother OF Charles Raymond, was the gem
eral agent for New Jersey: that Howard
Lewis, the general agent for northern New
| York. with an Office in Albany, was a
cousin of either the vice president. Mr.
Granniss. or Mrs. Granniss; that Or. f. j.
| Moss, the medical, director of the Mutual
Life, married a sister of the president of
| the company and that p S. Pilot, an in
spector of risks, is a cousin of Louis The
baud, son-in-law of President McCurdy and
partner OF the Raymond firm. c. w. White,
a secretary of the company, whom Mr. Nc
| Curdy was asked about, said he was no
relative of any officer Of the company, but
| that Mrs. White was niece Of Mrs Gran
Miss. wife of Vice President Granniss''
| At one point in the days testimony much
! interest was manifested when the expendi-
lures Of the company were taken up. An
auditor of the Mutual Life, C. A. Preller.
was on the stand, and he was asked as 10
| the method of recording the expenditures.
1t was gathered that these were passed
! upon by an expenditure committee. Of
| which Robert Olyphaut was chairman.
Three entries upon the books of payments
to Mr.. olyphant Of $4,000 each were looked
into, but no Information could be cleaned.
Mr.. Preller was asked about the campaign
contribution to the republican congressional
committee which was disclosed. but he
said none had come under his observation.
The 1850 to the congressional commit
tee was looked for when the ledRers were
produced, but up to adjournment this after
noon this had not been found.
Contracts with General Agents.
Robert II. McCurdy, general manager Of
the Mutual Insurance Company was again
a witness today in the insurance inyesttga-
tion. He went on the stand immedia tely
after Cornelius c. White, an auditor Of the
New York Life Insurance Company. had
left it after making a correction in his
testimony relative to the $4,000 payment
to Andrew Hamilton in 1904 He said tina,
the money received by Hamilton in 100.
included the $4,000 which was charged 10
state taxes.
Witness then detailed the changing n,
the agency System from that OF general
agencies with Commissions, like the Raw.
mond firm, to that Of saiaried agents. The
reason for these changes he said was thai
the new system was more economical n
the company. productive Of more bushes,
and easier to handle.
When general agency is changed to a
salaried agency, the renewal commission,
called for by the contracts under a genera
agency are still paid TO the salaried agent
The Raymond firm was not changed TO 4
salaried agency because the contract with
G. II. Raymond Co., which expired IN
1904. was continued by the witness through
1915 80 far as he knew there was no reA,
son why this agency should not have bear
} changed 10 a salaried agency in 1890. II,
was not general manager then. and wa,
not familiar with the anaIrs Of the com
pany at that time. Witness reason 70,
extending the contract through 1905, wa
because OF the fve previous years IN.
firm had been writing 81. .OOO. 900 insursnc.
year. The firm had six branch orices
and he wanted in competition with IN,
New York Life and Equitable to continu,
, to establish branch offices He figured IN,
cost would be $4,000 and he could no
very well ask the, Raymond firm to pu
up that money, when they had but a yea r,
contract. He therefore entered an agree
ment TO have the Mutual Life pay thi
expense and guarantee the Raymond firu
sl7.OOOO00 business.
Enormous Commission Paid.
The firm was then receiving s7Ik per cen
of it's first year premiums. Subsequent,
this was raised to IS per cent Of hrst yea
premiums. In consideration OF the firm
, allowing certain concession TO the develop
: ing OF the agency business and with IN,
expectation OF converting this agency 10 ,
! salaried one at the end Of 1905, he extende,
; the contract.
Witness said there Is a constant effort I,
reduced expenses but TO reduce expense
Is usually 70 reduce the business
! lCOntInued on second PaEe1