The evening world., 1905-10-19
MCURDY MADE BIG
SYNDICATE PROFITS
President Of the Mutual Life Gives instr
ance Probers a List of His Partic.
ipations and the Profits He
Realized on Them.
Continued from First Page.)

Slou'VVU president, Richerd A, McCurdy
was the first witness again to-day al
the Legislative insurance inquiry.
Showing in every movement his gres,
age and plainly the effects Of the mer.
ciless probing OF Chief Counsel Hughes,
MI. McCurdy took up the thread Of the
continued story Of the Mutual Life 8
interest In trust companies and similar
subsidiary corporations. He repeated
that the formation Of trust companies
became e necessity a few years ago In
order to afford an outlet for the rapidly
acoumulating funds OF pollcy.holders.
I'VE had so much money that we
did not know what to do with H." he
testified. But while other interests
may be in these subsidiary corporations,
the Mutual Life directs them and It's in.
terests are protected"
Danger Of Speculation.
Q. Is It not a danger that the interest
In such subsidiary companies will lead
Insurance companies into specula tive
v%entunes7 A, No; ] think not,
Q. These trust companies. the United
States Mortgage and Trust Company,
foat securities. What interest In the-e
transactions have officials Of the Mutual
Life had? Begin with the United States
Mortgage and Trust Company. A. We'll.
there was the hotation Of the Brooklyn
Wharf and Warehouse Company.
g. That was speculative, was II? A. /
cant answer II.
Q, Wasn't that your opinion In 1895
A My attitude then was purely formal
II was n transaction OF the mortgage
company, and not Of the Mutual Life.
O. But the Mutual Life controlled the
mortgage company A. Yes.
O. TO what extent did the Mutual Life
invest in this Brooklyn Wharf and
Warehouse Company A. I shall have
to refer you to the assistant treasurer.
The Morrlstown Company.
The Morristown Trust Company, "a
little country corporation as Mr.. Nc.
Curdy called the concern, was mex
taken up. The company originated ON
December 81. 1902. Its capital was 500,
OOo. McCurdy held ffty shares. In 1896
the c1piml was Increased 10 SOC, 900
Deposits amounted to more than $1,000,
600. There was a surplus Of 1906, as, and
Il was then that the Mutual Life wa.
introduced 10 MOrristown. In 1899 the
capital was increased to 1900, 900, and
I has been going up by leaps and
bounds until nov Il has a capital stocE
OF $4,000, The Mutuals stock-holdlrs
amounts TO, 1880
=. How many shares do you hold,
Mr.. McCurdy7 A. so shares.
.. Is your son-in- law a director OF the
Morristown Trust? A. ] don't know,
but | hone he Is,
Boom Brought by Mutual.
Q. Are yNu a director? A. Yes.
Q. How long has the MorrIstown
Trust Company been paying IS per
cent. A. Well, | think since about 1899.
Q. Since the Mutual became inter-
Gated? 4, | should say that II began
a3)ut that time.
Q. when was It paying dividends Of
only 9 per cent? A. Before that.
., '''at has been tire largest deposit
that me Mutual has ever had In the
Morris own Trust Company A. Not
more than $4,000.
q, what rate Of Interest does the
Mutual get on its d~epositst A. Two
and Two and a half.
q, And wlint does The iru't COM
pnny pay other depoSitorst A.
Three per cent.
II was shown then that this Mutual
account In the Morrist0wn Trust Com
pany was inactive; that a check was
seldom II ever drawn against II. Since
1900 the account has V fallen below
100000
Q. II would seem. would II not. In
view Of this fact that the Trust Com
pany, having this money permanently
should pay more than 2 per cent? A.
] wouldn't say that,
Committeeman Cox-You have a per-
$ nal deposit, Mr.. McCurdy, In the
Morristown Trust Company A, Yes
Q VIVA, rate Of interest have you re.
cciyed? What do you get? A, Presum-
ably three per cent. as do other miscel-
lanc)us deposltors.
Slump In Warehouse Bonds.
Assistant Treasurer Timpson was put
on tne witness stand to explain the
Brooklyn Wharf and Warehouse C,m-
parry, He couldn'; tell who the d.
r%ectors, officials or employees OF the
Mutual IAfe were who had taken bonds
Of the concern. For a while these
bonds paid . per cent, but there came
a crash. There was a reorganization.
and o II is the New York Dock Com
pany. The securItie' were scaled down
from S0,0O,Oc0 10 12s,O0O.000. Interest on
bonds and similar fixed charges on the
BROOKLYN Wharf and Warehouse Com
pany was wnat laid II out. Last year
the net earnings OF the New York Dock
Company was N,0O0,00O. Out Of that
$4,000 was paid In interest and dlvl-
dends. The common stock has never
paid a dividend, The preferred stock Is
getting 3 per cent, II should be getting
5 per cent,
Mocurdy's stock Holdings.
The elder McCurdy was recalled, He
said tha the Mutual LIES deposit In
the Filth avenue Trust Company Is
100000 II owes 2.sS2 shares OF stock.
The wltrcss owns 200 SHARES. IIo sur
nished This list Of all his personal stock
holdings;
70 shares dnherlted from father) Bond
Mortgage and Guaranty Company, 90;
National Bank Of Commerce. 1852; Com.
mercial Trust Company, ~ Fifth Ave
nue. Trust Company. 300; First Nation.
al Rank. l0): Guaranty Trust Com
pany, 200, Morton Trust Company, lL0i
Norristnwn Tr1td Company, b12: United
State, Mortgage and Trust Company,
200; girard Trust Nomrsny, g.. ,,n.