Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-29
PROBING INSURANCE
YESTERDAY AFTERNOONS Pro
cEEDINas IN NEW YORK.

lore the Armstrong insurance committee
| III New York after The Stars report closed
yesterday. He said he was employed by
Mr.. Hustled of Peekskill. who was attorney
FOR certain Prussian Insurance companies
to go before Mr.. Payn when he was in
surance commissioner In 1897 and try to
secure permission for them to do business
in this state. The application was denied
Two years later, he said, Mr. Pawn called
him to Albany and told him that he had
decided to admit certain Prussian comma
MES to New York state and requested him
to go to New York city and SO inform
President Richard A. McCurdy of the Mu-
tual life Insurance Company.
Views Were Ignored
Mr. Cady said he saw Mr.. McCurdy and
that McCurdy was indignant because the
state insurance department had ignored
his views on the question of admitting the
Prussian companies; that Mr.. McCurdy said
this was wrong to his company and that
ms position was such that his views ought
not TO be overridden by Mr.. Payn.
DID he say whether or not the Mutual
would be willing to pay money to have a
contrary decision?" asked Mr.. Hughes.
NO, he did not said Mr.. Cady. He
hnaiiy asked me whether / was an officer
or the insurance department, and being
told that I was not, asked If there was
any reason why 1 should not accept re-
talner in behalf of the Mutual Life" MT
Cady said he declined the retainer
MIR. Hughes asked him If he knew of any
understanding by which the Prussian COM
panies were to be admitted to New York
state II the New York Life Insurance
company was admitted to Prussia. Mr..
Cady said he did not know of 1t, but that
he knew the matter was being considered
by the State Department at Washington
Received Some Shares.
George G. Haven, a trustee and memf er
of the finance committee of the Nut AL
Life Insurance Company, testified he re-
ceived some of the shares of the Lawyers
Mortgage Insurance Company which We're
SUPPOSED to have been sold to the Mutual
Life Insurance Company. He did not know
that he was member of the subcommittee
of the finance committee to fix salaries I'M
til it was brought out in this investigation.
a. d. Juilliard and George F. Baker were
the other members. Mr.. Haven said he
thought President McCurdy appointed the
committee to fix salaries and that he had
that power under the bylaws. The COM
mittee fixed the salaries of the president
and of ell the officers and report was
made to any committee or to the board it
self
The acquisition of the shares of the
Lawyers Mortgage Company in 1901 by
individuals connected with the Mutual Life
was inquired into. Mr.. Haven said he had
never heard of the shares until they were
brought to his attention by Mr. Juillard.
He understood then that Mr.. Juilliard had
bought them. The witness said that he
and Mr.. Juilliard distributed the shares
among the members of the finance commit
tee of the Mutual Life Insurance Company,
but he did not know this stock had been
offered to President McCurdy for the Mu-
tual. This offer. he said, was never
brought to the attention Of the finance
committee.
McCurdy Offended Over Distribution.
Henry Morgenthau director Of the Law
yers' Mortgage Company, said that A. D.
Juilliard had told him that President Nc
Curdy was offended because the Mutual
Life was not allotted any of the stock Of
the Lawyers Title Insurance and Trust
Company. So when the stock Of the Law
yers' Mortgage Company was increased
1000 shares, but Mr.. Juiiiiard told the
witness that Mr.. McCurdy would not take
1t for the Mutual Life Insurance Company,
since 1t did not get any Of the Lawyers
Title stock. Mr.. Juilliard therefore took it
himself.
Frederic H. Cromwell. acting president
OF the Mutual Life Insurance Company,
who said he got 200 Of the 1000 shares
that Mr.; JuilHard distributed. was called
He said he knew nothing of the stock being
offered to Mr.. McCurdy, but that Mr.
Haven brought 1t to his attention. Mr..
Cromwell said: Il am very sorry to have
to testify against Mr. McCurdy, but he
never did bring 1t TO the attention of the
finance committee"
Cromwell Testified
Mr.. Cromwell was asked if he had given
any consideration to methods of economy
in the Mutual Life Insurance Company,
and he replied that he had made up some
figures. but he did not want to submit
auid han
pected to be questioned upon that subject.
Many economies he said, will be made be-
ginning January L. He said the cost of the
supply department, advertising and liter
airy departments will probably be reduced
by 100000; the salaries will be reduced
about $3.50, 0O0 and he thought about 81 ,5OO,-
COO could be saved next year in the ex-
penses of the company. Mr.. Cromwell said
q great many men have been discharged
from the company and that about the
most unpleasant thing I have ever had to
do was to be the headsman the last few
weeks"
The affairs of the United States Life In
surance Company were gone into when
John p. Mum, president of the company,
was called TO the stand. Mr.. Mum said
the capital of his company was $4,000.
paid annually. Mr.. Mum said his COM
pany has received $500 in rebates on taxes
in 1901, through the court of appeals de-
cision in the suit of the Provident Saw
United States Life bad been approached
by Andrew Hamilton, who said he wanted
to represent the United States Life In that
matter so as to prevent any conflict of
claims of companies fer rebates. Mr. Mum
said his company paid no retainer to Ham
ilton.
Cost Of New Business.
A statement of the cost to the company
of new business showed that in many cases
it ran over 200 per cent, and In some cases
as high as 260 per cent. Mr.. Mum said
1t was due to the sharp competition of the
large companies
Thomas P. Fowler. chairman OF the spe-
cial committee of the board OF trustees OF
the New York Life Insurance Company,
gave out the appended statement for the
committee last night:
THE committee is engaged in thorough
examination of the Hamilton matter and
WILL at its conclusion, make a special re-
port on the subject to the board of trus-
tees. Until that time 1t Will have no an
nounceanent to make.
Raft Of Timber Adrift.
The crew OF the United States army tug
Lieut. Alonzo Gushing report having seen
adrift in the river yesterday, short dis
lance below the Beleview naval powder