The news & observer., 1905-12-29
A Company Investigated
Wrote Its Own Report.
AND PAID HIM $4,000
1t Was This Story That PaYn Denied.
Judge Cady Admits That McCurdy
Offered Him a Retainer to Keep
PrussIan Companies Out OF
the State.
the State.
(By the Associated Press.)

New York, Dec. 2S.-Louis f. Payn,
and J. Ryder Cady, who was employed
at times as counsel by Mr. Payn while
the latter was State superintendent OF
insurance, were the witnesses today
before the insurance investigating
committee. who furnished practically
all of the interestino testimony. not
withstanding the fact that more Wit
nesses were examined than on any day
since the investigation began
Mr. Payn was called to complete MS
testimony interrupted by adjournment
yesterday, and in reply TO one of the
first questions asked him, e1nphatically
denied the report that he had received
$4,000 from the Mutual Reserve Life
Insurance Company, and had allowed
that company to write it's own report
of an investigation which Mr.. Payn
had caused to be made in 1899. Mr..
Payn characterized the report as alb
solutely false in every particular and
said it grew out of a fight between
James d. Wells, former yice-presi-
dent of the Mutual Reserve and Presl-
dent Burnham. of the same company.
Judge Cady was brought into the
investigation by reason of his having
appeared before Mr.. Payn in the inter-
I
seeking admission to the State. This
application was denied by Mr.. Payn,
but two years later was granted. Pres
lfdent McCurdy, of the Mutual Life ln-
surance Company, asked that this per-
mission be held UP until he could see
Mr. Payn. This request was refused,
but Mr.. Payn had Judge Cady call
upon Mr.. McCurdy.
Mr.. HUGHES asked if Mr. McCurdy
| &loo 70 "
money for a contrary decision. Judge
Cady said he did not deny that Mr..
McCurdy offered him retainer in be-.
half of the Mutual Life, which he re-
fused.
The New York office of the insur-
ance department was inquired into
when Robert Hunter deputy superin-
tendent, was called. Mr.. Hunter
could say nothing as to the conduct
of the insurance department which
had not already been supplied. 1t was
brought out that through his influence
he had had a medical examiner of the
Equitable Life Assurance Society in
Poughkeepsie discharged. Accumula-
tive evidence on the allotment of the
l, 600 shares of stock of the Lawyers
Mortgage Insurance Company. which,
while held for the Mutual Life Insur-
tnce Company, were accredited to
board, was taken in the examination of
Adrian Iselin and c. G. Haven. OF
Frederick H. Cromwell, the present
acting president of the Mutual Life.
When McCurdy's Gorge Rose.
Henry Morganthau of the Lawyers
Mortgage Insurance Company told how
Mr.. McCurdy had become indignant
because he had not been allotted
shares in the Lawyers Title Insurance
and Trust Company, and to appease
him a block of Lawyers Mortgage In
Surance Company stock was offered
him, but he would not take it, and FUR
ther gave Mr.. Morganthau to UNDER
stand that no applications for loans
from either company would receive
consideration from the Mutual Life.
When Mr.. Cromwell was on the stand
he was asked what consideration he
had given TO economies in the Mutual
Life. He said he could not give ex-
act figures for the record. but that
there would be a saving of perhaps a
million and half dollars next year.
He added that the most unpleasant
duty he had to perform was that of
headsman in discharging employees
during the last few weeks.
Later in the day the United States
Life Insurance Company's affairs were
taken UP by Mr. Hughes. The presi-
dent of the company. John p. Mum,
was called to the stand. He submit
ted a number of statements of syndi-
cate participations which We're read
for the record; also statements of the
cost for insurance to his company. He
will resume tomorrow.
District Attorney Jerome today re-
ceived a copy of all the evidence thus
far submitted 70 the insurance inves-
tigation committee There are numer-
Gus volumes.
Acting District Attorney Mott said
that a special grand jury probably
will be emoannelled in February to
consider the testimony.