The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-28
PAYN A
LIVELY
WITNESS

day OF session held by the Insurance in
vestigating committee. and Chairman
Armstrong announced that the first vol
ume of the printed testimony appeared
today.
Former Superintendent OF Insurance
Louis f. Payn was the first witness called
today and the Investigation of the Mu-
tual Reserve by IN estate insurance dc
partment in 1899 was again taken up. Mr.
Payn Of the charges made by officers
and employees that he made up his mind
that nothing that President +. A. Burn
ham or James -. Wells, formerly vice
president OF the Mutual Reserve company.
said, was worthy of consideration.
Mr. Payn said that charges OF misman-
agement were turned over to the New
York office OF the company.
Mr. Payn was asked about the stpu
lated premium law which was enacted
during his administration.
lie said that Mr.. Appleton and the at
torney OF the department drew IL up at
his (Payns) suggestion.
Mr. Payn employed personal counsel
| from time 10 time. and when asked IL he
availed himself of the attorney generals S
| office, said:
holi llht 10 SPEAK ulSItSptCLluliy pl
a state officer My experience with the
attorney generals office was that l did
not feel quite satisfied TO go there for
advice. except in some cases where the
/ law compelled me TO do so. There were
decisions one way and next year there
would be decisions another way Then
| there would be an attorney general who
would give another decision / went out
| side for counsel where / personally knew
the lawy ers were honest and capable"
Mr.. Hughes asked about the charges
| formerly made by Vince President James
! D. Wells, OF the Mutual Life Insurance
| company that $40, 600 had been paid 10 Mr..
| Payn by that company for the privilege
| OF writing its own report OF an examlna-
| ton by the state department when Mr..
! Payn was insurance commissioner.
Mr. Payn replied:
when l was asked by the newspapers
about that. | said l had no comment TO
make, but | say to you. Mr.. Hughes. that
! II is absolutely false I'm every particular
and Mr.. Burnham and Mr.. Wells both tes-
! tilted under oath that It was false. That
report grew out Of fight betweeny Burn
ham and Wells"
Mr. Payn said that after he refused To
admit certain Prussian insurance COM
panies TO do business in this state and be-
fore all foreign insurance companies were
barred from Prussia, the Prus sian gov.
ernment had admitted the New York Life
Insurance company and any o'ner com
pany which would comply Win it, laws.
Mr. Payn said his impression was that the
Mutual Life Insurance company did not
apply for admission TO Prussia. Presl-
dent McCurdy of the Mutual Life, Mr..
Payn said, told him that he had been
trying TO adjust the insurance question be-
tween Prussia and the United States gov
ernment and asked Mr.. Payn not to in
! terfere by his state acts.
Il told him IL was no use TO talk to me-
as my mind was made up, said Mr.. Payn.
Mr.. Payn said that his report by which
he finally admitted the Prussian com
panies 10 New York was filed by j. Rider
| Cady, reporting TO him a conversation
with Mr.. McCurdy.
j. Rider Cady, the next witness said
he was employed by Mr.. Hustled OF Peeks-
kill who was attorney for certain Prus-
sian insurance companies. TO go before
Mr.. Payn when he was insurance commits
sioner I'm 1899 and try to secure permis-
sion for them TO do business in this state.
The application was denied. Two years
later, he said Mr.. Payn called him to
Albany and told him that he had decided
| to admit certain Prussian companies TO
New York state and requested him to og
To New York city and so inform Presi
dent McCurdy OF the Mutual Life Insur-
ance company. Mr.. Cady said he saw Mr.
McCurdy and he was indignant because
the state Insurance department had ig-
nored his views on the question Of ad-
mitting the Prussian companies
Did he say whether or not the Mutual
would be willing TO pay money 70 have
contrary declsion2" asked Mr.. Hughes.
mo. he did not" said Mr.. Cady.
He finally asked me whether l was an
officer OF the insurance department, and
being told that | was not asked IL there
was any reason why should not accept
a retainer I'm behalf OF the Mutual Life"
Mr. Cady said he declined the retainer.
Mr. Hughes asked him II he knew of
any understanding by which the Russian
York state II the New York Life In
surance company was admitted TO Prus-
sla. Mr.. Cady said he did not know of
It. but he knew this matter was being
considered by the state department at
Washington.
Robert r Hunter, the deputy super
intendent in charge OF the New York Of
flee OF teh insurance department. who
next testified. said that he knew nothing
about the year and loans by the Equit-
able Life Assurance society, to clerks OF
Kuhn. Loeb and company. Mr.. Hunter
said ne made an INJURY into the charges
against the officers OF the Mutual Re-
serve company In 1899 Asked why they
were not reported upon, he said he was
unable TO say He did nothing without
orders.
Mr.. Hughes read n letter fro the
Equitable Life Assurance society 10 DIR.
II. II. Powell of Poughkeepsie. N. Y, dis
missing him from It's service as n medical
examiner. because he was at war with
the insurance department"
Mr.. Hughes brought out that when DR..
Powell was dismissed the relations be-
tween Hunter and him were strained be-
cause OF n factional flght In. Poughkeep-
sic in l903 when DR. Powell was desirous
OF being lected as mayor
Poughkeepsie Is also Mr. Hunters home.
Mr. Hunter said:
- went To the Equitable Life in my per-
sonal capacity and asked them II they
wanted a man like Powell working for
them and he was dismissed
asked how the Equitable Life differen-
tiated his personal from his official capac-
ity, Mr. Hunter said he did not know
George G. Haven trustee and member
OF the finance committee Of the Mutual
Life Insurance company next testified. lie
said ne received some Of the shares OF
the Lawyers Mortgage Insurance com
pany. who were supposed TO have been