The Minneapolis journal., 1905-10-11
INSURANCE IS not
FOR POLICYnOLDERS.
Nc ccurdy Says Companies Are z
Rather Great Philanthropic
Enterprises.

{ New York, Oct. 11.-Life insurance,
says President McCurdy of the Mutual
Life Insurance company, should be ex-s
tended at the expense sof the policy;
holders Mr.. McCurdy made this state-
ment before the New York legislative
Investigating committee, after he had
explained the. increase IN his salary to
Mutual Mutual Lies T business under his man:
agement and the vast responsibility
which the greatness of the company
| had placed upon him. Then Mr.. Nc.
| Curdy made the, startling statement
| that an insurance company was not an
institution founded to make money for
the policyholders,. but was, or should:
| founded to increase and spread>its ben
efts over the entire earth.
| There has been great mistake
made he said, "about the real prov
ince Of life insurance companies in
these latter years. People have been
led to believe that the main purpose was
| to make money for it's policyholders.,
In my view that is not the purpose of
such companies. They are 5eleemosyn-
ary. When man insures in a conf
pany he should take into consideration:
the fact that he has entered great
philanthropic concern that lis in duty
bound to spread itself, even tho this
| growth prevents him from realizing
as much as he expected. q
Movement for Humanity. II i
tLife insurance is an obligation
every man ought to understand, be-
cause he is participating in movement
for the benefit of humanity. I have al
ways had that opinion. The purpose
of the Mutual Life is not money max
ing or declaring dividends to those who
pay premiums. It was organized as a
great benefent and missionary institu-
ton. Its purpose was to, extend the
benefits of life insurance and its OBJ
ject was not that Of declaring dividends
which could be spent on cigars or play
ing billiards. Its purpose was not to
pay cent during the lifetime Of the
assured, but at the death. 1T was
| based on the conviction that every man
/ ought to carry life insurance for the
benefit Of his family and the com:
munity!: 1t was started in the spirit of
pure philanthropy and as missionary
enterprise. That was it's object.
81 have heard a. great deal of crit
icism on the ground that life-insur.
ance company should not be an elee.
mosynary concern. Now, it is my be.
lief that a life-insurance company
should be an eleemosynary concern to
great Degree
How McCurdy Started.
President McCurdy was on the stand
all Of the afternoon session. He de
tailed the manner of his entrance into
the insurance business. He practicec
law for nine years and was counsel fo1
the Widows & Orphans Benefit Lif,
Insurance company, of which G. III. Ray
mond was, the president. When tn
company went out Of business Mr.. Nc
1 Curdy went with the Mutual Life.
Mr. McCurdy testified that he neve
! knew what. Mr.. Thebaud, his son;in IL
law, was getting out Of the business
1 did not think it was any Of his bust
q ness to ask about Mr.. Thebaud s per
4 sonal affairs. He said the company di
{ the business to get the commissions
and that was all he knew. All cor
tracts were made without his know]
edge. ~.., -
a from last YEARS business were $147, 90
q was surprise to him, he said. H
n never knew when new arrangements Q
u contracts were made with G. H. Ray
y mond e. Co., nor whether one contrac
4 was more favorable than another.
q No More Responsibility. -.
y He felt no more responsibility to th
policyholders, he said, because his sol
in-law was paid so large amounts tina
= if somebody else's son-in-law had r.
ceived them.
Witness said, on the matter Of sal:
ries, that he never requested that h
salary be raised, and all such increase
. he. took as complimentary to his NAL
agement Of the business. They, wei
always made by the committee on sail
ries of their, own volition. q ss;s ss.yy.g> ss.yy.
The sessions Of the insurance invest
. eating committee were terminated 5ft
The week at the adjournment yesterda.
because of: the death Of s. Fred Nixo
speaker Of the. assembly Of the leglsl'