Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1905-10-13
PRESIDENT Fixes
HIS own SALARY
SON OF MUTUAL LIFE ExECU-
TIVE TESTIFIEs THAT NOBODY
KNOWS FATHERS INCOME.
LEGISLATORS HEAR: OF.
MONEY PAID AGENTS
Receive Regular Yearly Fee and Com
mission on Premiums-All Impor-
tant Posts in Company Held by
Relatives of Officers,

New York, Oct. Robert H. Nc
Curdy, general manager of the Mu.
tual Life insurance company, testified
Friday before the legislative insur-
ance investigating committee that the
salaries of the Mutual Life Insurance
company's officers were fixed by the
finance committee. He did not know
the salary of the president, his father,
Richard A. McCurdy, nor did he know
that anybody did besides the presi-
dent. He did not know that the finance
committee ever fixed the Presidents
salary.
Young McCurdy resumed the stand
Immediately after Cornelius G. White,
an auditor of the New York Life In
surance company, had corrected his
testimony relative to the $4,000 pay
ments to Andrew Hamilton. White
said the $141,077 received by Hamilton
in 1904 included the $4,000 which was
charged to state taxes.
Chicagoan's Salary $4,000.
Mr.. McCurdy testified he, as gen
eral manager, made all contracts with
agents. The general agents on the
same plane as G. H. Raymond & Co.
number seven in the United States,
two in Canada and one in Mexico. All
the foreign agents are general agents.
There are rs salaried agents, aside
from those who, besides salary. re-
ceive commissions on first year pre-
miums, but no renewals. The high
est salary paid to these is $4,000 paid
to the general agent at Chicago.
The witness detailed the changing
OF the agency system from that of
general agencies with commissions,
like the Raymond firm, to that of
salaried agents. The reason for these
changes, he said, was that the new
system was more economical to the
company, productive of more business
and easier to handle.
Agency Gets Big Percentage.
When general agency is changed
to salaried agency the renewal COM
missions called for by the contracts
under general agency are still paid
to the salaried agent. The Raymond
firm was not changed to salaried
agency, because the contract with G.
H. Raymond & Co., which expired in
1904, was continued by the witpess
through 1905. So far as he knew
there was no reason why this agency
should not have been changed To a
salaried agency in 1900. He was aos
general manager then.
Witness reason for extending the
contract though 1905 was because for
the five previous years the firm lad
been writing $17,000,OO0 insurance a
year. The firm had six branch Of
fees, and he wanted, in competition
with the New York Life and Equit.
able, to continue to establish branch
Offices. He figured the cost would be
$150,000. He entered an agreement
to have the Mutual Life pay this ex-
pense and guarantee the Raymond
firm $17,000,000 business. The firm
was then receiving S71s per cent Of
first-year premiums.
Subsequently this was raised to 81
per cent. of first-year premiums. II
consideration of the firm allowing Ger
tain concessions to the company il
developing the agency business, ant
with the expectation Of converting thi'
agency to salaried one at the END O
1905 he extended the contract. Wit
ness said there is constant effort tt
reduce expenses, but to reduce ex
penses is usually to reduce the husi
ness
In making the contract with Ray
| mond G. Co., witness said he had no
J the faintest idea what Mr.. Thebaud wa
getting from the business"
Pay Well for Achievements.
The general agency system, he said
has built up the life insurance bust
ness. at has paid large rewards TO
large achievements" he said. Con
tinuing witness said that until HI
saw statement two months ago h
did not know what the division be
tween Mr.. Thebaud and Mr.. Ray
mond was. "This large reward 70
large achievements. said Mr.. Nc
i Curdy, has built up railroads an
all other businesses and it justifles u
iii HioptiflK such SYSTEM" I.