The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-07
NEW YORK MUTUAL LIFE
HAS MUCH FAMILY GRAFT
hcCurdy and His Numerous Relatives Fatten at
the Crib
More Sensational Developments in the Testimony Produced
Before the Legislative Committee investigating the
Insurance ROtenness.

ROttenneSs.
He was not general manager then and
was not familiar with the affairs OF the
company al that time.N Witness fed-
son for extending the contract through
1903 was because for the five previous
years the firm had be IN writing 81 OO0,vUJ
insurance a year. The firm had six
branch offices and he wanted, IN COM
petition with the New York Lie ana
Equitable, 20 continue 10 estaDllsh oIdhCh
offices. He figured the cost would be
$4,000. and he could not very well ask
the Raymond firm 10 put up that money ,
when they had but years contract
He therefore entered an agreement 10
have the Mutual Life pay this expense
and guarantee the Raymond firm xlI-
200, 600 business. The firm was then re-
ceiving S1l4 per cent Of its first year
premiums.
Gave 95 Per Cent.
Subsequently this was raised to 50 per
cent of first year premiums. In con-
sideratiOn of the firms allowing certain
concessions TO the company in develop
ing the agency business, and with the eX-
pectatiOn of converting this agency into
a salaried one at the end of 1905, he eN-
tended the contract Witness said there
is considerable effort 10 reduce eX-
penses but TO reduce expenses is usually
To reduce the business.
In making the contract with Raymond
& Co witness said he had not the
taintest idea what Mr.. Thebaud was
getting from the business"
The general agency system, he said,
has built up the life insurance bust
ness. 1T has paid large rewards for
large achievements, he said.
Continuing. witness said that until he
saw a statement two months ago he
did not know what the division be-
tween Mr., Thebaud and Mr. Raymond
was,
Reward is Large.
This large reward for large achieve
ments,' he said has built up railroads
and all other large business. and il JUS
titles US i'm adopting such a system"
Witness did not know that general
agencies of the New York Life Insur-
auce company or of the Equitable so
clety received as much as G. Fl, Ray
mOnd G Co but said the agents that
write the business get just as large pre-
mlums IN other compaiu = as in tn M
tual Life.
Witness said that last year the Mutual
Lille Insurance company wrote $4,000
80 worth OF business more than III the
previous year, and the expenses were
reduced et a ratio Of per cent. The
total receipts Tor 1904 were SS1 SOP 9S4 and
ratio Of expenses was estimated at about !
- Der cert.
Texas Comes High.
II was The impression Of the witness
that the general agency in Texas re
ceived as high compensation as c. II.
Raymond & CO. Higher commissions
We're allowed i'm New York and Texas
than anywhere else because IL cost more
TO geI the business.
Ihebaud's service for Sl0000O?' Mr..
Hughes asked.
Il suppose SO. if he did not have a
contract
for 500 o0 instead of the $l4L600 that he
secured from Raymond * co. last year?
Mr.. Hughes continued.
81 am not so sure of that" witness
replied.
II was brought out that George \.
Raymond q brother of Charles II. Ray
mOnd was The general agent for New
Jersey.
Cousin or Second Cousin.
Howard Lewis of Albany. the general
agent for northern Kew DIRK, witness
said he believed was d cousin or sec
Ond cousin Of either Vice President Rob
crt A Granniss OF of Mrs. Granniss.
DR.. Elias j. Moss, the medical diTec-
tor. married "a sister of President Nc
Curdy. Witness said ne did not know
the salary he received.
D. StuyVesant Pilot, who is an in
\. Thebaud. G. ". White. a secretary
Of the company is no direct relation
10 any of the other Officers. but there
was laughter iu the committee room
when Mr.. McCuTdy stated that Mrs.
White was a niece of Mrs. Granniss,
wife OF Vice President GTanniss
Charles A. Preller auditor of the Nh
Jual Life insurance company, was wit
moss H. the afternoon session. He was
asked 10 produce the book showing the
expenditure of I.l3i,S53 last year for adj
refreshments. printing stationery and
postage. The item In the cOmpany's an
nual report OF S56l254 for legal expenses /
Witness said was for the payment of legal
expenses and was paid to the general So
EcitOT
PreIIer Gould Not Guess.
An entry of $4,000 under law expenses
paygNie 10 Robert ELEPHANT. chairman of
tho d Hmittce on expenditures. the wit
ness anew nothing about Authorizing this
expenditure witness received a voucher
signed by Oiyphant as chairman of the
committee He had nn idea what that
payment WAS for nor what two other en-
tries OF $500 each paid TO Robert Oily
plant the last one on Nov. 9. 1894, were
expended for.
The minutes Of The expenditure commit
tee, which were then produced, showed
that The S-5C1j items were paid TO Robert
ELEPHANT for law. Witness knew nothing
7 NItArl ltsaEhluS IL. MT. fItlitE SAID mis-
own salary is SlO.UJ year. Witness was
asked where the $500 paid to the Repub-
lican ear ~ressiOual COmwittee -aS en-
tered. fIe said he did not know. Mr..
Hughes then demanded the presence Of (
the man i'm the company who knows how
the $3.50 campaign contribution was
booked.
Provoked Laughter.
Mr.. McCurdy had testified to the i'll
crease in the assets of the company. when
Assemblyman Rogers asked:
Did tie iEsTcare IT, the assets result :
m q benefit 10 the nolicyhOlders in the
same proportion as ii did to the officers /
Of the company
This incuirv provoked laughter among
Before Mr.. McCurdy was able TO reply
Mr. Hughes asked him IF there was any
limit in his miad AT what the increase
OF the salaries OF the officers should
sion
ii lid not llno-- v hat salaries were
paid until L came here said the witness.
DO YOU think the presidents salary
should be increased 10 &50OO0?' asked
Nj. Hughes.
Il think the salary of the president
should be paid in accordance with the i'm
portance of the corporation.
WAS il any benefit 10 the pOlicyhOlders
10 increase the presidents salary2"
Il think the responsibility increased as
the corpora tons business increased and /
the trustees considered that when they /
raised the salaries,
George T. Dexter. superintendent of do /
nestle agencies, was called to verify the /
provisions o. TIE contracts With Cham
berain & Gillet. the Texas agents. Ii was
brought out that this firm had an Ordi-
nary agents contract. with an overriding /
for expenses.