New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-07

- .r,a -7zv-o1lS Of the Mutual or derived an IN
came for commissions on its business
The 1orrentous secret of President McCuroys $
saia-v. vas revealed only after the most siren
nous effort on the part Of the counsel Tor lhe
ro--,-7i-+ee. and not until after the presidents
en- T7orer+ H NIct,urdy. had solemnly declared
that although he was member Of the finance
..o7--7i+tee which fixed the salary he had no
47lr1irz oF its size one after another the other
ofHciaIs OF the company confessed that the mat
ter was to them entirely unknown. but at lasr
pressed 10 corner by the counsel Of the COM
r1ittee and faced with an absolute demand they
produoed the imposing salary roll
The ignorance Of the various officials Of the
Mutual regarding their company was aHec1ils'
The presidents son. who was worth SL-iVVo
70 the Mutual in 1904 was S1ooOoppp out OF
the way in his estimate Of the company busl-
ness A solemn auditor, VINO was the most ner-
,,oug witness get examined. testified in one
breath 10 the fact that he received an annual
salary Of $4,000, and in the next that his sole
mission was 10 enter figures he received without
asking questions. When Mr.. Hughes turned Up
items amounting 70 $4,000. apparently another
yellow dog" fund, paid to Robert Olyphaut for
legal expenses" Mr.. PreIler, the auditor. gazed
In dumb astonishment at them and confessed
absolute ignorance.
SECRECY MAINTAINED BY OFFICIALS.
It was soIeuniy declared by Mutual witnesses
that the enormous profits received by c. H
Raymond & Co the firm in which Mr.. Nc
Curdy's son-in-law has q three-quarter interest
were due TO an unusually large rate of COM
mission and this was due to the fact that
insurance work was extra hard in large cities
particularly in New York City. In the next
moment an equally large rate to the Texas
agency. where the relative Of another official
Of the Mutual was concerned was eluCidated
g. due 10 the peculiarly sparse population in
that state In Albany Neyv-Jersey and various
other agencies the trail of nepotism was dis
covered. But about every one of the disclosures
was thrown web Of secrecy that made the
rrobing harder than at any stage Of the pro
ceedings. The officials Of other insurance COM
Eanies have without exception fostered the
i~1uressfon that they were seeking publicity by
manner if not by actual performance but the
Mutual officials supplied nothing that they were
not asked for. volunteered no explanation, pro-
Iessed ignorance at every turn and aroused the
Indignation of Mr.. Hughes by their constant
avoidance of direct replies
For The second time since the proceedings
began there was an interruption from the
audience in the shape Of applause This greeted
The sharp questioning Of Robert H. McCurdy
IS ra the reasons for his fathers large salary,
& questioning with which Assemblyman Rogers
Interrupted an explanation which baffled the
hearers. Mr McCurdy, prompted by his at
yoruey, was explaining the reasons for the IN
crease n his fathers salary. the amount Of
which he had lust learned for the first time
from testimony. as due to the enormous ex--
uansion OF the business Of the Mutual and the
growth Of its assets from S4o00000o to $3.50
100000 a tenfold increase. when Mr.. Rogers
broke in.
I would ike to ask in that connection if
the resulting baraf+ 10 the Individual policy
holder has grown in Ike manner There was
d ripple of laughter and applause and then
sharp rebuke from the chairman, but there vas
10 Eliminating reply.
one witness alone Of all the Mutual officials
spoke Uith perfect frankness. and this was
Geors@ T. DexJe-. superintendent Of domestic
agencies. He declared that the vast profits OF
C. H Raymond Is Co. the local agency firm
from which President McCurdy's son-in-law re-
celFed Sl4-ono last year. were not known to
aiH. ana their size was merely q matter Of
curious gossip among suborJinates Although
ir Fas in his own department he had no hand in
making the contract with this firm: IL was merely
handed 30 him ard ne carried it out II H
Rogers. DumoHt Clarke, Ar. Trursdale and the
president settled this matter ON this point Mr.
iiughes's question was inexorabIe.
I wan- 70 know he insisted, whether from
your experience there was any justification for
1lte 0f commission cut Of which they could
make S20e000e"
Turning and facing the McCurdy representa-
uses Mr. Dexter replied with deliberate earnest
Hess.
= should say no"
Al the close Of the hearing matter Of consid-
cratic Importance was turned up regarding the
9eaill4gs Of the company with former agent
lained BoEles who was removed for cause The
agent declared that his business had been in
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