The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-17
M'CURDY BALKS
At INQUIsITION
Insurance Magnate Declines ~
Answer Questions as to Re-
duced Dividends. !.
Draws $4,000 Salary but Dis
claims knowledge Of His
Company's Affairs.

Company's Affairs.
New York, Oct. lit developed at
today's session of the insurance investi-
cation that the Mutual Life Insurance
company paid house rent at Albany for
A. G. Fields, an employee of the COM
pany, during the legislative session.
Richard a. MfeGutdy pTs;s,fddent OF the
Albany on legislative matters.
McCurdy said he did not know An
drew Hamilton Of Albany and was sur
prised to learn that the Mutual Life
had paid money to Hamilton.
Mr.. McCurdy was questioned at great
length concerning steady reduction in
the dividends paid to policyholders by
cuss the questions, saving the COM
pany's actuary was the proper person to
give information on that subject.
Beck Statement Disproven.
Before Mr.. McCurdy was called,
James McKeen, associate counsel to the
| committee, put In evidence for the rec
ords statement Of the assets of the
Mutual Life and Of the banks of Eng
| land, France and Germany. James III.
Beck Of counsel for the Mutual Life,
cuss the. questinos, saying the COM
mittee that the assets Of the Mutual
Life exceeded the combined assets Of
the banks of France, Germany and Eng
land. By cable, Nc. McKeen said, he
had ascertained the combined assets Of
those institutions were 1926, 574, 725,
while those of the Mutual Life were
$440,97s, 371. Further, said Mr.. Nc
Keen, he had found the salary Of the
president of the Bank of Germany to
be 100000 per annum and that of the
chief governor Of the Bank of England
to be $4,000. He had not been able to.
ascertain the salary Of the president Of
| the Bank Of France.
What McCurdy Knows.
1 Mr.. McCurdy was questioned first as
to advertising. A clipping from a mag
azine for October, 1905 was shown him.
1 He said It was an advertisement in
serted by his company setting forth the
advantages Of his company. He never
saw the advertisement before in his
life. He had no more knowledge Of
what advertising his company puts out
than the casual reader. This was the
he said.
Mr.. McCurdy did not know whether
some one inssthe Mutual Life's Offices
received the. coupon attached to. adver-
!, tisement which the reader is instructed
: to forward to the company for further
: went to c. Fl. Raymond & Co., the met
, ropolitan agents of the Mutual.
Reduction Of Dividends.
/ Mr.. Hughes announced that the COM
: mittee had received large number Of
4 letters regarding the dividends on the
1 policies Of the Mutual Life. Some Of
/ them Mr.. Hughes read to the witness,
e saying those he read were from policy
Q holders in New York city, One writer,
who had taken out policy in 1865 for
n $4,000 on the temperament life plan,
s said his dividend in 1876 was $55.76.
0 In 1881 it was cut to $50, in 1891 it was
< reduced to 500, and in 1904 to So. This,
! the writer said, was in the face of the
r reserve increasing year after year.
!. Mr.. McCurdy said Mr. Hughes had
O the wrong witness. It was the actuary
who looked after the calculation of divi-
Q dends. Had he been notified day
l. ahead he would have been fortified with
il this information. Mr.. McCurdy COM
O planned that this investigation was go-
: ing outside of what was contemplated
8 when the committee was appointed by
r the legislature. He said he understood
h this was to be an examination of in
d surance methods, not an inquisition.
L Inquisition, Says Hughes.
It Mr.. Hughes replied that it was, In
3 deed, an inquisition.
We will have occasion to call your
is actuary, but you have been in the in
g surance business for forty years, and ]
v wa Tha saS Nh kn0T Hn a5ou
% HYou are it's president and receive
d $l50,O00 in salary. want to learn
10 for what you are responsible. -
e You are trying to prove me fool,
If the witness retorted
= Without commenting on that which
y is obvious, let me ask you to tell vi
to the best of your ability some of the
# lines on which your company is con.
a ducted9o said Mr.. Hughes.
d Mr.. McCurdy insisted that his actu
K airy must answer the questions on divi
g. dends paid and how they are calculated
le He declined to enter any explanation
st further than that the poicyholder above
it referred to to had reduced-rate policy
a. Mr.. McCurdy said If copy of the
policyholder s letter was furnished hin
he would have the matter looked up.
Declined to Answer.
Mr., Hughes said the reason he tool
Y up this subject with Mr.. McCurdy in
Y stead of the actuary was that Mr.. Nc
u Curdy had submitted great many fig
ures to show the increase In the salary
of the witness was due to the grea,
q prosperity of the company.
- Mr.. McCurdy many times declined
to answer questions by Mr.. Hughes.
II don It want your discussion, said
Mr.. Hughes. If you say you don I
know we III accept that answer.
81 decline to discuss the question, >
!, witness said
y do you know9o
81 ri decline to discuss the question.
:, edo you refuse to answer the ques
y, "a tion9'
ls 'sI decline to discuss the question
~. ~ when I have proffered you witness
~ ~ whose business it is to know all of thes
70 facts you are looking for. ,,
10 Other letters from policyholders wer
At read to Mr.. McCurdy, showing a grad
h. ual reduction of dividends, and he re
he piled that probably the decrease wa
I'd due to the approach of the maturity o
the policy. Questioned further to ex
plain what he meant, he again refused
to tsdiscuss the question. -
n na Refused to Discuss It.
oil Chairman Armstrong then asked tn