The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-10-06
Says Large Rewards Are Paid
for Large Achievements.
Expenses We're Over Sixteen
Millions Last Year.


Guided the 81 5000 which was charged
to state taxes.
Mr.. McCurdy said that the proper
ton of his commission on the foreign
business paid to c. H. Raymond after
he left the firm of c. H. Raymond &
Co, would be presented in a statement
now being typewriter.
The salaries of the Mutual Life In
sHranee company's office, witness said,
were fixed by the finance committee.
II e did not know the salary of the
president nor did lie know 5ha- any
body did besides the president. He
did not know that the finance commits
SIGN ever fixed The presidents salary.
Witness said he, as general manager
made all contracts with general agents.
The general agents on the same plan
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 seventy-five salaries agents
aside from those who, besides salary,
receive commissions on first years
premiums, but no renewals. The
highest salary paid to these is $4,000
paid to the general agent at Chicago
Witness then detailed the changing
OF the agency system from that of gem
eral 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. pro
ductive of more business and easier 20
handle.
Raymond Firm Excepted.
When a general agency is changed
to a salaried agency the renewal COM
missions called for in the contracts
under a general agency are still paid
to the salaried agent. The Raymond
firm was not changed to a salaried
agency because the contract with c.
H. Raymond & Co., which expired in
1904, was continued by the witness
through 1905. So far as he knew
there was no reason why this agency
should not have been changed to a
sa1aried agency in 1900. He was not
general manager then and was not
familiar with the affairs of the COM
pany at that time. The witness rea-
son for extending the contract through
1905 was because of the fact that in
the previous years the firm had been
writing S7.000,000 insurance a year
The firm had six branch offices and
he wanted in competition with the
New York Life and Equitable to con-
tinue to establish branch Offices. He
figured the cost would be S15O,OOO,
and he could not very we'll ask the
Raymond firm to put up that money
when they had but a years contract.
He therefore entered into an agree
ment to have the Mutual Life pay this
expense and guarantee the Raymond
firm S17,00O,00O business. The firm
was then receiving S71s per cent of
its first years premiums.
Subsequently this was raised to 96
per cent. of the first year premium.
In consideration of the firm allowing
certain concessions to the company in
developing the agency business with
the expectation of converting this
agency to salaried one at the end
of 1905, he extended the contract.
Witness said there is a constant effort
to reduce expenses. but to reduce ex-
penses is usually to reduce the bust
ness.
In making the contract with Ray
mOnd & Co. witness said che had not
the faintest idea what Mr.. Thebaud
was getting from the busine ss." The
general agency system, he said has
built up the life insurance business.
Pays Large Rewards.
TT has paid large rewards for large
/ achievements he said.
Continuing. witness said that until
| he saw q statement two months ago he
did not know what the division between
| Mr.. Thebaud and Mr.. Raymond was.
This large reward for large achieve
4 ments" said Mr. McCurdy "has built
up railways and all other business and
it iustifes us in adopting such a sys-
tenn
Witness did not know what general
agencies oe the New York Life Insur-
ance or OF the Equitable society re-
ceived as much as c. H. Raymond &
! Co, but said that the agents that write
| the business get just as large premiums
/ in other companies as in the Mutual
1 Life Insurance company.
Witness said that last year the Mu-
tual Life Insurance company wrote S26,-
600 worth of business more than in
the previous year and the expenses were
4 reduced at a ratio OF per cent. The
| total receipts for 1904 were ISL. OO2 g94
and the total expenses SIG, sos, ass The
usual ratio of expense was estimated at
about 25 per cent Tt was the impress
sion Of the witness that the general
agency in Texas received as high COM
pensation as c. H. Raymond & Co.
Higher commissions were allowed in
New York and Texas than anywhere
else because it cost more to get the bus
mess
Don't you think you could get Mr..
Thebaud's services for s1O0,0O02'' Mr..
Hughes asked.
4 suppose so if he didn't have a
contract"
Don't you think you could get them
for $4,000 instead of s147 600 that he
secured from Raymond & Co.. last
. year., Mr.. Hughes continued.
7 am not sure of that witness re-
piled. it was brought out that George
} A. Raymond, brother of Charles H
Raymond. was the general agent for
New Jersey.
Howard Lewis, Of Albany. the gen
eral agent for northern New York,
, witness said. he believed was a cousin
dent Robert A. GranHis or Mrs. Gran
MS.
DR.. Elias J. Moss. the medical direc-
tor. married a sister of President Nc
Curdy. Witness said he did not know
the salary he received
, d. Stuyvesant Pilot who is an in
spector of risks, is cousin of Louis
A. Thebaud G. W. White secretary
Of the company is no direct relation ia
any Of the other officers. but there was
laughter in the committee room when