The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-10-11
NOT TO benefit } I. | ]
POLICY HOLDERS. /: !. |.
The Mutual'S President
Makes a Startling
Statement.
WHY INSURANCE
COMPANIES EXIST
Mr.. cCurdy Says That They.
Are Eleetnosynary Institu-
tions-M Money Paid Out
Without Receipt or
Voucher By
Thousands.
Especial to The Times -Dlspatch.)

4 q L. 4 =
Especial to The Times-Dlspatch)
,eia NEW YORK, October 1o.-The sessions
OF tho Insurance Investigation ComIni.-
tee werc terminated for tho week at tho
adjournment to-day, because OF the
q dclth of s. Fred Nixon. speaker Of he.
Legislature OF New York, at his home
Il iii Westfleld
The testimony did not elicit any In
formation of IL sensational nature be-
yond what had been discounted by the
testimony Of previous witnesses me
feature was the presence us witness
OF executive officers OF the Mutual Lie
Insurance Company. These were Prcsl-
dent Richard A. McCurdy and Vice
z Presidents Granns and Gillette.
While 1t had been hinted last week
that some expenditures charged to legal
expenses might have been contributions
( to campaign committees. II was an
q nounced definitely by Dr. Gillette that
the Mutual Life contributed 10000 to tho
II Republican national campaign last fall.
4 that In 1900 $500 was contributed, and
{ In 1906 3l5.0D0 was given Tor campaign
Z purposes.
DR.. Gillette testified that he paid these
amounts personally In cash. and later
in the day Mr.. McCurdy said that while
he lenew campaign contributions had
8,been made. he did not know the amounts.
Z He saId that no contributions had been
made to campaign committees before
1896, and that no contribution TO state
or municipal campaigns had ever necn
made in this on any other state. y, ne
cont trihmt,on OF $500 10 the Congress-
Ional campaign committee, sfr. McCurdy
said he knew nothing about until 1t came
I'm in the testimony last week.
Neither Voucher Nor Receipt.
An interesting statement wns made lt
M Robert OIyphant when he was on the
ata "a early ii, the day Mr.. Olyphant is
~ Al rn1, Il OF expenditures. and ne 2couin '
II NOT tell what the sa5 ooo TENS g rnFn$s q g
y l,,s order we're for beyond 2.
for legal n expenses e 4 sai so.l!-
u pary maintained a con t'dent tinla fund n or
esnendItnres for wrlch no voucher
taken and no receipt WAS - ecetvedt !.
.Tbcs, payments were made d pom the
assurance OF an executive officer thai
< thew were all right
Vice President Grannis knew lttie
about the contributions to campaign
funds. but Justified them on 'he SANE sam,
grounds as President John A. Mccall,
~ tho New York Life, that the free sll-
yer nlnnk in the Democratic platform
vas y menace to the interests OF the
policyholders
When Mr.. G:rannls was called he as
sun,ed the entire responsibility Tor the
@terns Of the contracts with G. II Ray
n1nnd
made such large profits. When thc
mcthod OF the expenditure OF the $4,000
itcms was inquired into Mr.. GSannls ad-
n nnitted that tho general solicitor conld
Eet $3.50 any time he wanted It with
out disclosing for what purpose ne want.
ed 1t, and without rendering any ac-3
count of IT, He further said he never
,tnew where a. cent OF the money spent
by the general solicitor went
CO ooo for 1l1ncheOnS
In taking up detailed list OF the COM
nanvs expenses, Dr. Gillette said that the
company last year paid $4,000 for lunch-
cons for the employees. 1t Is custom for
The company to furnish their clerks with
luncheon. This Is at the rate Of about
$3.50 a day. =. Z
President McCurdy was on the stand all
Of the afternoon, session Mr.. McCurdy
testified that he never know what Mr..
,rhebaud his son -in-law, was getting out
Of the business OF c. IL Raymond ana
Company. and said he did not think It
was any OF his business to ask about
Mr. Thebaud's personal affairs, ne salo
the company did the business to got the
commissions, and that was all he knew,
All contracts were made without his
knowlcdre. Witness said on the matter
~ salaries that he never requested that
his salary be raised, and all such In
orcascs he took as complimen tary to his
MANAGEMENT OF the business. Ihey were
always made by the Committee on SAL
aries OF their own volltion'
Philanthropic Enterprise.
Toward the close OF the session Mr.,
McCurdy made the startling statement
that an insurance company was not an
institution founded to make money for
the polcyholers, but was, or should pc,
great phllanthroplc enterprise, founded
to Increase and spread Its benefits over
the earth.
"Thcre has been great mistake made.
he said "about the real province OF llfe
Insurance companies In these latter
years. People have been led to believe
that the main purpose was TO make
money for pollcyholders. In my view'
that Is not the purpose OF such conpa-
nics. They are eleemosynaly. When
man insures In n company he should take
into consideration the fact that he has
entered great phianthropic concern
that is In duty bound to spread itself,
even though this growth prevents him
from realizing as much as he expected
1t was brought out that the witness
and DR.. Gillette held enough proxies OF
pollcyhoders to control the board of trus-
tees BY electng It's members.
Mr., McCurdy1 said he understood that
the policyholders haze sufficient coni-
dence in the Mutual to take out policies
and leave the management to the officers,
81 Vi q