The Birmingham age-herald., 1905-10-11
Mutual Pays S25O a Day for Employees Lunches
M'cURDY SPRINGS SURPRISE
Says Insurance Company Is Purely PhlIanthroplc and Is Not Meant to Make Money for the
 Policy Holders.

New York, October 1o.-The sessions of the insurance Investigating committee were terminated for the week at the ad- iournment today because of the death of s Frederick Nixon, speaker of the as- sembly of the legislature of New York, at his home in Westfield.
 The testimony today did not elicit any information of a sensational nature be- yond what had been discounted in the testimony of previous weeks. The feature was the presence as witnesses or the executive officers of the Mutual Life h. surance company. These were Richard A. MeCurdy and Vice Presidents Grannis and Gillette.
 While It had been hinted last week that some expenditures charged to legal expenses might have been contributions to campaign committees, it was announc- ed definitely by Dr. Gillette that the Mutual Life Insurance company contri- buted $4OO00 to the republican natlonal committee last fall. That in 1900 $3o,ooo was contributed, and in 1896 Slo.ooo was given for campaign purposes. President McCurdy was on the stand all of the afternoon session. He detailed the manner of his entrance into the insurance business.
 Knew Nothing of Sons Business.
 Mr. McCurdy testified that he never knew what MT Thebaud, his son-in-law, was getting out of the business of c. h. Raymond & Co.,, and said he did not tnink it was any of his business to ask apout MT. Thebauds personal affairs. He said the company did the business to sel the commissions, and that was all he knew Witness said on the matter Of salaries that he had never requested that ms sai- ary be raised.
 Towards the close of the session MT. McCurdy made the startling statement that an insurance company was not an institution founded to make money Tor the nolicy holders but was, or should be, great philanthropic enterprise founded to increase and spread it's benefits over the entire earth.
 Is Purely EIemosynary.
 ..rbere has been a great mistake made, ba said about the real province or llIe insurance companies in these latter years. peonle have been led to believe that the main purpose was to make money ior it's policy holders. In my view that IS not the purpose Of such coihpanneI ,r,,ras nmes are elemosynary. When man lnsures in a company he should take into consid- eration the fact that he has entered great philanthropic concern that IS uuty- hound to spread itself, even though this growth prevents him from realizing as much as he expected"
 ..The purpose of the Mutual Life lnsur- ance is not money making, or declaring dividends to those who pay premiums IL was organized as a great benef1cent ana missionary institution. Its purpose was to extend the benefits of life insurance and It's objects was not that of declar- ing dividends which could be spent on x.Iox rtx,er Q
 Sir John Long, member of the British parliament, was a guest of the insurance Investigating committee at it's session today.
 OIiphant Is First Witness.
 The first witness was Robert Oliphant, chairman of the expenditure committee of the Mutual Life Insurance company. From him 1t vas expected to learn what became of S75,0O0 charged to legal expen- ditures This sum was spent in three installments of $25O00 each, the last fn- stallment being paid the day after the presidential election last year.
 Mir. Oliphant said there Is no limit to inc money the committee on expendi- lures may authorize to be paid out. The Mutual company maintains confidential fund for legal expenditures. The details of payments for this fund were not brought before the board of trustees but merely the total amounts.
 Bills came to this committee from the law department. after being duly author ized by executive officers The moneys were usually drawn in cash.
 An entry of s25,0oO on the books Jan uary 30, 1904, witness said, was paid to him in cash.
 He was assured this was needed for the polcyholders' benefit and that all was regular Dr. Gillette, one of the vice presidents, told him that 1t was for law n,rnoses Witness did not feel responsi- ble to the company, an executive onicer having told him it was perfectly legal.
 Money was similarly expended. MT. olinbant said. in the term of office of bis nredecessor, J. Hobart Henrick, and if never occurred to MT. Oliphant to ascertain to whom the money went be- yond the word of an executive officer.
 In reply to questions by MT. Hughes, the witness said he had heard contrfbu- tions were made to campaign commit tees and he supposed they came out oi this confidential fund.
 pr. Gillette Is Summoned.
 Mr Hughes then asked that Dr. Gil lette be summoned. James M. Beck 4 counsel for the Mutual LIe insul anee company, asked that MT. Grannis De ex- cused if Dr. Gillette appeared, as there were already present the president two vice presidents and the general manager of the company, and somebody was need ed to run the business. MT. Hughes in- sisted. however, that he could excuse nobody, but would put the company to as little inconvenience as possible.
 Questioning MT. Oliphant further, MT Hughes brought out that there were nve navments in 1903 of $25,000 each, all made in tbe same way as those in 1904 and out of the confidential fund.
 MT, Oliphant was asked if 1t was nractice to look no further into expendi' lures when approved by vice president and witness replied, We have to-
 Vice President Grannls Called.
 Robert A. Grannis was then called H' was asked about the $25OO contribution to the congressional committee previous 1y discovered. He presumed 1t was charg ed to law expenses. That would be th' natural course.
 Mr. Grannis knew of contributions tt the republican fun in 1896. 1900 and lso4 hut did not know the amounts. Contripu lions could be made without his know ledge. Witness considered the compan, was justified in making contributions t t.~ vastous campaign funds because o