The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-10-18
He Squirms Under the
Questions of Hughes.
AND THE CROWD JEERS
Threats 10 Clear the Room Prevent
More Violent Demonstrations OF Dis
approval. An Exciting Session OF
the Legislative Insurance In
vestigatiOn..
vestigatiOn.
(By the Associated Press,) }

New York, Oct 17.-Testimony in
the insurance investigation. which
was resumed today after weeks
adjournment of the legislative COM
mittee, taken because of the death
last week Of S. Fred Nixon, Speaker
of the Assembly of the State of New
York was most exciting throughout
the entire day, and only the repeated
threats OF Senator Armstrong, chair
man of the committee, to clear the
room, prevented violent demonstra-
tionS of disapprobation Of the witness,
who was Richard A. McCurdy, preSi-
dent of the Mutual Life Insurance
Company.
AS it was. however. there were
jeers at several periods that tempo
rarily interrupted the testimony. These
came when Mr.. Hughes. the counsel
for the committee, asked questions
that Mr.. McCurdy was reluctant 10
answer, or evaded. and We're made by
The crowd that stood at the back Of
the room.
Employed a Literary Bureau
In Mr.. McCurdy's testimony today
feature entirely new was disclos-
ed, and this was that the Mutual
Life Insurance Company employed a
literary bureau to send out TO the
press OF the country news matter
that was Of benefit to the comapny
This Information was ELECTED dur
| ing the probing of the legal expen-
| ses" account. II came out when a
| voucher for the payment of $1,000 to
| Joseph Howard Jr,, in 1904 was pro-
| duced. Another voucher for the same
amount paid in May, 1908, was mark
| ed "repayable on demand" and FOR
professional services" Mr.. McCurdy
had vised the. vouchers and stated
that Mr.. Howard was newspaper
correspondent and that his profess
sionai services consisted In syndicat-
ing news atqries. Pressed further,
Mr.. McCurdy said "Mr Howard was
correspondent for the Boston Globe
and several other papers
Mr.. McCurdy further said that he
paid Mr.. Howard about $500 year
for these services, and that tho
voucher for May. 1905 was really q
loan or an advance"
During the earlier session of the
day an attempt was made to obtain
from Mr.. McCurdy the reason for
reducing the dividends on policies as
the business incr eased, and the as
sets piled up This question WAS
prompted by the committee and cited
facts and examples. These letters
came from all over the country, Mr..
Hughes explained, but he read nGn-
ber from policy -holders, who lived
in tAis city. The examples cited were
PRINCIPALLY on the policies of the 70
payment life plan. one In particular
dend Of $55.76, had been gradually
cut, until in 1904 IL received only
49, The writer inclosed tables ana
statements from the companys re-
ports. and said this was In the face
OF the reserve increasing year after
year.
McCurdy Is Defiant.
TO all the questions on this matter
the witness said he was not fortified
with the information required that
these were actuary matters, and when
pressed for his opinion, he replied that
he refused TO discuss the question or
to enter any discussion. He would
proffer a witness, his actuary whose
business il was 10 know these things,
but as for himself he would not dis
cuss the question
Mr. McCurdy's demeanor was so in
sistant. and at times defiant that the
spectators bent forward 10 catch every
word and stood on tip-toes expecting
every moment to hear him directed by
counsel TO answer the question. His
proffer Of another witness was all that
prevented steps being taken toward
his indictment.
When Mr. McCurdy would not offer
the information himself Mr. Hughes
started on another line Of inquiry.
Later IN the day Chairman Arm
strong explained that since the infOr-
nation desired by the committee, 1t
is believed was obtained by another
course. IL was agreeable to the com
.nittee to let McCEEly place himself
i'm the position he did Had he. how
ever. been directed loans and had re-
fused knowing the Information de-
sired Mr.. Armstrong said steDs would
have bee1 taken 10 indict him for
misdcmeanor.
Mr. McCurdy also during the effort
to induce him 10 answer the questions
as to the reduction Of dividends.
launched forth into a protest as 70 the
manner@in which the investigation
was being conducted. RE aaid the
committee was going beyond - scope
intended when It was appointed by
the Legislature and that the .~~yesti-
cation had assumed the proportions
OF an lnquisition.
lie was asked by Senator Armstrony
how he would conduct the investiga
tion ana told If he had any better
method III committee would be glaa
10 know Of 1t.
Felt lie was on the Rack.
Mr. mcCUrdy thought that pnttlne
a witness under oath made him feel
he was on the rack. He said is
answers were published in a distorfsd