Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1905-10-19
MUTUAL PRESIDENT BEFORE IN,
VESTlGATIoN COMMITTEE.
FRICKE HAD RETAINER
Former Wisconsin Commissioner Had
$1,000 for "Protecting" Big Com.
pany's interests in Badger State
High Saaried Official Refuses to
Tell Why Dividends Fell.

New York, Oct. 1S.-Testimony in
the insurance investigation, which
was resumed yesterday, was most eN-
citing throughout the entire day, ana
only repeated threats of Senator Arm
strong, chairman of the committee, toI
clear the room prevented violent dem
onstratious of uisapprohation OF the
witness, who was Richard A. McCur
dy president of the Mutual Life In
surance company AS 1t was, how
ever, there were jeers at several per
iods of the days testimony. These
came when Mr.. Hughes, counsel for
the committee, asked questions that
McCurdy was reluctant to answer orI
evaded. and were made NY the crowd
that stood at the back Of the room. In
McCurdy's testimony Yesterday feat
ure entirely new was disclosed, and
this was that the Mutual Life en-
Tloyed a literary bureau to send out
10 the press of country news matter
that was of benefit to the company.
This information was elected during
The probing Of the legal expenses"
account. Two items of $500 each
were shown, the payments being
made to Joseph Howard, Jr,, who Nc
Curdy said was newspaper cores
pondent who syndicated news stories
During the earlier session of the
day an attempt was made to obtain
from McCurdy the reason for reduc-
ing the dividends on policies as the
business increased and assets piled
up. The question was prompted by a
large number of letters received from
policyhOlders by the committee and
cited facts and examples. These let.
ters came from all over the country,
Mr.. Hughes explained, but he read a
number from policyholders who lived
in the city. Examples cited were
principally on policies of the ten-pay
ment life plan. One in particular, for
$4,000, that in 1876 drew a dividend
of $55.76 had been gradually cut until
in 1904 it received only SO. The
writer inclosed tables and statements
from the company's reports and said
that this was in the face of a re
serve increasing year after year.
Refuses to Give Opinion.
To all questions on this matter the
witness said he was not fortified with
the information required; that these
were actuarial matters; and when
pressed for his opinion, replied that
he refused to discuss the question or
to enter into any discussion. He
would proffer a witness, his fctuary,
whose business it was to know these
things, but as for himself he would
not discuss the question. McCurdy's
demeanor was so insistent and at this
time defiant that the spectators bent
forward to catch every. word and
stood on tip toe expecting every mo-
ment 10 hear him directed by counsel
to answer the question.
His proffer of another. witness was
all that pevented steps being taken
toward his Indictment, After taking
up the questions of reduction of diyi
Iends Mr.. Hughes read a long list of
policy numbers with the amounts of
The face Of each policy, what had been
paid in and the dividends received by
the policyholders. Asked what he had
to say to these, McCurdy said figures
don't lie, but liars can figure He
then hastily explained that he meant
chat facetitiously ana that he would
he glad TO verify the figures. The
only explanation for a specific in
stance of reduction of dividends Nc
Curdy gave was that he supposed the
policyholder had reduced rate pol
icy.
Various items Of expense were gone
into. among them one of 100000 paid
Thomas II Bowles. formerly the com
panys general agent at Milwaukee.
who had been dismissed and who had
sued the company.
McCury said Bowles after having
lost his agency, agitated a policyhold-
ers crusade against the company,
and his suit was settled 10 end the
agitation. McCurdy was still on the
stand when the committee adjourned
fov the day.
Fricke in Bad Light.
During tho examination into expens.
e. Mr.. Hughes showed McCurdy a /
voucher for payment Of $4,000 toI
William a. Fricke formerly insur-
auce commissioner Of Wisconsin.
ana letter from Charlton 7. Lewis, |
an attorney Of Madison, Wis. The
letter stated that Fricke would accept /
retainer TO see that the interests
Of the Mutual Life should come to mol
harm" in that state McCurdy ap
proved the voucher, but could not re
member the details Mr. McCurdy |
said.
Lewis told me he had spent one
u.L3er III educating the minds Of thel
legislators of Michigan. Wisconsin
ard Ohio with regard to certain leEfs-
Il icn affecting insurance companies. |