Daily Kennebec journal., 1905-12-29
That Money Was Offered
for Adverse Decision.
Mr.. Payn and Counsel Cady
Strong in Testimony
That Their Clients Did Nothing Wrong..-
Other Insurance Witnesses.

New York, Dec. 2S.-Louis F. Ryan
and ]. Rider Cady, who was employed
at times as counsel by Mr.. Payn while
the latter was state superintendent OF
insurance, We're the principal witnesses
today before the insurance Investigate
ing committee.
Mr.. Payn in reply to one of the first
questions asked him, empha tically de-
MED the report that he had received
$4,000 from the Mutual Reserve Life
Insurance Co. and had allowed that
company to write it's own report of an
investigation which Mr.. Payn had
caused to be made in 1899. He charac-
terized the report as absolutely false
in every particular and it grew out of
4 fight between James d. Wells, for
mer vice president of the Mutual Re-
serve, and President Burnham of the
same company.
Judge Cady was brought into the in
vestigation by reason of his having ap-
peared before Mr.. Payn in the interests
Of PruSsian insurance companies apply
ing for admission to the state. This
application was denied by Mr.. Payn at
the time but some two years later the
Prussian companies We're admitted
President McCurdy of the Mutual Life
asked that the permission be held up
until he could see Mr.. Payn. This re-
quest was refused, but Mr.. Payn had
Judge Cady call upon Mr.. McCurdy.
Mr.. Hughes asked if Mr.. McCurdy
said the Mutual Life would pay any
money for contrary decision. Judge
Cady said he did not, but that Mr.. Nc
Curdy offered him retainer in behalf
of the Mutual Life, which he refused
The New York Office of the insurance
department was inquired into when
Robert Hunter. deputy superintendent
of insurance, was called. Mr.. Hunter
could add nothing as to the conduct of
the insurance department TO what al
ready had been supplied. 1t was brought
out that through his influence he had
had medical examiner of the Equita-
BILE Life Assurance Society in Pough-
keepsie discharged.
Accumulative evidence on the allot-
ment of the 1000 shares of stock of the
Lawyers Mortgage Insurance Co..
which, while held for the Mutual Life,
We're accredited 10 members of the fl
nance committee, was taken up in the
examination Of Adrian Isein and G.. G.
Haven of the finance committee and of
Frederick II. Cromwell, the present
acting president Of the Mutual Life.
Henry Morganthau of the Lawyers
Mortgage Insurance Co told how Mr..
McCurdy had become indignant because
he had not been allotted shares in the
Lawyers Title & Trust Co.. and to ap-
praise him block of Lawyers Mort
gage Insurance Co. stock was offered
him but he would not take it. and fur
ther gave Mr.. Morganthau to under
stand that no application 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 exact
figures for the record. but that there
would be saving of perhaps $1,000, 900
next year. He added that the most un-
pleasant duty he had had to perform
was that of headsman in discharging
employees during the last few weeks.
Late in the day the United States
Life'S affairs were taken up by Mr.
Hughes. The president Of the compa-
ny, John L. Mum. was called to the
stand. He submitted a number of
statements Of syndicate participations.
which We're read for the record. also
statements Of the cost of insurance to
his company. He will resume tomor-
row.