The Washington times., 1905-10-19
One Advantage to Place
Funds Through Sub
sidiary Companies.
COURSE NOT DANGEROUS
Investment in Washington
Traction and Electric Sc
curities Brought Out.

NEW YORK, Oct Is-Richard Nc
Curdy, president of the Mutual Life,
gave further testimony today before the
legislative insurance investigating COM
mittee. regarding the assets as well as
the financial operations of the company.
Mr.. McCurdy said that the Mutual
found it was OF greater advantage TO
the company TO have its funds placed
by subsidiary company rather than by
the Mutual direct. Asked Why 1t was
that the Mutual did not have complete
ownership of its subsidiary companies
instead OF sharing the profits with 9TH
ers, Mr. McCurdy said that it was for
the best interest OF the Mutual to have
others identified with the subsidiary
companies. The United States Mort
gage and Trust Company Is one OF the
principal subsidiary companies OF the
Mutual.
No Danger of Speculation.
rs not there a danger that the larr,
interests in these subsidiary companies
may lead TO speculation and bad enter
9rises?.'
Mr. Mccurdy replied that he did not
think so
oeHes asked about the formation
ol the Brooklyn Wharf and Warehouse
company. which was formed and
nnanced by the United States MORTGAGE
ana trust Company. 1t was developed
that bonds We're issued against the
Mortgage. and the Mutual took a sun-
stantial participation in the bonds.
Would the Mutual have invested =,
these bonds if the United States Mort
gage and Trust Company had not been
interested?"
Mr' MeCurdy replied that the Mutual
made an Investigation of the bonds OF
-the warehouse company. ana believed
them an excellent investment.
In what other securities has the Nm
tual Lie become Interested through me
United States Mortgage and Tr7,st
Company"
Interested in Washington.
The Washington Traction and Elec-
When did they become interested2''
About 1901.
Mr.. McCurdy was able TO give lIttI.
information regarding the purchase ~
the securities OF the Washington Trac-
ton Company.
Mr.. Hughes asked about the formation,
OF the MorTistown Trust Company. Mr..
McCurdy said the Trust Company was
formed in 1891 with $4,000 capital stock.
which was later increased to $500 OOo
lie SAID he owned some shares In the
later acquired big interest in Ise+
Previous TO 1898 Mr.. McCurdy said he
in no way controlled the trust company
The capital stock Is at present $500
Oo0. and the Mutual owns $4,000 mar
value?" 49,
Yes.
McCurdy Family's Holdings.
Mr.. McCurdy was asked the amount
of the holdings of the McCurdy family
in the Morristown Trust Company. but
he replied that he did not have The fig
ures at hand and did not know. He
thought his son-in-law, Mr.. Theabold
had stock. but he did not know Asked
what rate Of interest the trust COMPANY
paid to the Mutual for funds deposited.
Mr.. McCurdy replied per cent for two
or three years previous to last Septem-
Der. Since then, the witness said, the
Mutual received 3 per cent
Mr.. Hughes brought out the fact thar
on average balances of individual de-
pOsitors the trust company paid per
cent at the time Il was paying the Mu-
rUal per cent. Mr. McCurdy said that
on such large accounts as the Mutual
only per cent was paid
Produces Bank Balance.
Mr.. Hughes. produced the bank bal
ance of the MJS'ual which showed that
the smallest balas=ca in the Morristown
Trust Company by the Mutual at any
time since 1900 was $500. 900.
Now you say that the reason why
onlv per cent is paid is because OF the
fear that the MutuaIs balance might
suddenly be withdrawn. Out OF 5000
shares OF the Morristown Trust Com
rany. the Mutual owns 1.S70 shares.
ard you own So shares. and since 1900
Jne Aiutuals balance in the Trust Com
pany has never been below S26O. 900
Now could there have been much fear
that the balance would be suddenly
withdrawn
Il really could not say"
What efforts were made TO drive a
bargain with the Morristown Trust
Company for a higher rate than per
cent?
Mr. MeCurdy could not recall that
any such efforts had been made.