New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-06
RAPID RISE OF YOUNG MCURDY AND TnEBAUD,
MEMBERSHIP IN FIRM OF RAYMOND s co. EXCEED
INGLY PROFITABLE TO BOTH

ABLE TO BOTH.
ness written in the Metropolitan agency was 10 per
cent, TO So per cent of the first years premiums
with range Of five renewal commissions OF ~ per
missions Of 10 per cent Of the renewal premiums
Q--And that the same rate obtained for the years
1889 and 1880? A.-Yes. sir - g.
the running of the Office? Ayes sir; we paid for
Did you employ the sub-agents solicitors
who reported directly to c. H. Raymond & Co.?
Q-And you paid them upon the premiums which
came in certain compensatlons? A.-AS stated
(Which in 1883 was 80 per cent; with five re-
newsis OF per cent on me rene%a premiums luz t 10
renewal commissions Of 5 per cent upon the re-
Q@And that was modfied in 1sS9 so that the com
pensaton ranged from IS per cent of the first years
premiums with six renewal commissions on the re-
premium and ten renewal eommTsion5 OF per Gent
Q.-There was a further modification in is which
r reaSy Been me made 5e Ayes sir '''
Q.ENow, Raymond & Co, got the amounts we
ance Company. paid these amounts as compensa-
uea 70 The me T Tnn1 e 5 i
what was left for their profit? A,-Yes, sir.
HOW PROFITS WERE DIVIDED.
Q.-And during these years, to which have just
with which the statements beginEthe net profits
OF c. H. Raymond & Co Were divided between
Q-And in what proportion?, A.-One-haIf.
Q-DuTlng those years. one-haH 10 each! A
,Q-When you said moment ago that you paid
mean that you paid out of the moneys you got at
she to x b they Sfat5 eP f6a c 69ad
(Which, of course. as fully appears by the
figures. was considerably less than C H Raymond
.o;SceTtanlys 50 ySp could pay your expenses and
would Ike to know during these years Just what
n Rsm0nd Co g9f 1 from { a tn e
what they paid for expenses, and what they had
5 d9 d a6s 2 2ad t hST Rfy a axfsa " wi"
Q-I have paper now WHICH starts I,H With the
Al have not here, Mr. Hughes a.,
0.@aaVe YOU a statement of the operations of the
Me- fF9 re S Sn M om % sno% OF q Il Raymond
& Co.? A.-This is it, Mr.. Hughes
Mr.. Raymond then presented q statement
showing the figures indicated in the table al
ready given.
Der of c. H. Raymond & Co. 1883 to 1892, he re-
ceived the amounts which have been stated from
and retained one-half Of the amounts shown upon
his statement of commissions upon foreign bust
Q,-And after 1898 he received the amounts stated
in the statement of his receipts from c. H Ray
mond & Co. and in addition he received and re
tanned the whole amount stated in his statement
of receipts upon foreign business? A.-As far as
Q-Now, in 1898 or whereabouts Louis Thebaud
became member of your firm. did he not, Mr.
M6SCuTdy's retirement? A-Yes.
receive
Q.-How long did he continue to have quarter
interest? Ali you will pardon me, Sir will read
,Q.-Certainiy read from anything which will en-
able you TO state. A-January l, 1898, 1 made q
partnership agreement with Louis A Thebaud to
last until 1896. whereby he to receive one
quarter interest in the business and 1 was to re-
ceiFe a three-qqarter interest On January / 1896,
we MADE continuation of the partnership whereby
eSch, partner was to receive one-lalf interest in
was connae6 ana YEARS. ln l 6 6he SANE
!sVo' But on March l. 1892 the company terminated
its managing agent for the mefro I IP1iH dis
t IdGl me appointment to terminate December 81
~. SO that by mutual agreement the co-partner-
snip with Nh. Thebaud terminated and a new 90
& Il Raymond co n10 gnder 5aS am of
sane period and 10 terminate December 81. 1904
this eopartnershlp our respective interests were to
Until February Is, 1903 ~ NV lii 10
MR. THEBAUD's SHARE GROWS.
o.-When did that division begin-v-hen did -
cease 70 be one-quarter 20 Mr.. Thebaud and fhree
Usry / 1882 made continuation Of the 1' part
ileI Is Ehereoy each partner was receive one
II h9ud's interest one-haIf lint MI
I'll 1852 APardon me uf Il V rsfsr continued 60 TIM IN
whereby each partner was to receive one-haIf Of
arrangenent-that is one-haIf interest EACH
~ Gon4noga 70 dsst flve years more, until 1906
appointment as general agent as 1 have already
Q.-Yes; and then the division OF one-third tn
you and two-thirds to Mr.. Thebaud began? -
sec1e ysef oneb4P5 Win vim The re
Thebaud two-thirds-until February 1908: and from
that date, for myself one-fourth and Mr.. ThehatG
three fourths until December 81, 1904 On Decenl-
Der 81. 1903. however, he company cancelled NV
appointment as managing agent, which was TO ter
inmate on December 81, 1901, and made IT TO RIM
Until December 81, 1895, and in consequence of this
extension OF my appointment by the COMPANY the
then continued under its then existing terms for
one year Ionger-that Is, one-Quarter myself and
uree-quarters TO Mr.. Thebaud
Q--undl December g. 1862 A-Yes
o.-Now, WHO made these Contracts With q II
Raymond & Co. giving them the commission to
which testimony has been given? A--The con-
Tr2ctg were made from year to year by the Mutual
Acting through whom7 Although Mr.
GraIniss, the vice president, and afterward by DR.
Gillette. the general manager.
DO you know whether or not the matters
came before any committee OF the board? A-Of
the rates OF commission? -
Yes Al never inquired whether thev did
or not, received my contract from the COMPANY
pfecSely az al other agents did there.
Mr.. Hughes then presented in evidence the
toio"lng statement Of Mr. Thebauds profits
rom the business OF c. H Raymond g. Co.
ises5 -.--..-.... Sass Is 1859. ... sa4 IN ia
49, .-''.--'... 2.0S5 CT 1900. .,.... az Az a.
is5S s. SO SO e e 1 1872 ,s7s3a i
So ''..-----.. 90. ST. 1903 40 80 ~
e52I2 "a 1904 I47 6s7 "a
Il :-Ain right in understanding that AZ that ,i,o
$50 81. Iheoand became a member oF TIC Am
PAID the frm7 Al think that u &c Uon.itnlssIons
- Sle oL increase made by the comnanv t itg
o;-;And G II. Raymond & Co shareo ~ ~. -,
eral increase IN the rate Of cor~nu N the gen
I@d the same rate - eOiiiiissionF Ave
RAYMoND's HIGH COMMISSIONS