Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1905-12-23
PEABODY NAMED
MUTUAL'S HEAD
Law ser and Banker Succeeds McCurdy
at $4,000 a Year.
HARRIMAN'S THREAT TO RYAN

New York, Dec. 1.-two incidents
Affecting the life insurance situation In
New York overshadowed the Legislative
committee investigation. While the
committee was inquiring into the con-
duct OF the Prudential Life Insurance
company and the Metropolitan Life In
surance company. George w. Perkins
resigned as first vice president and
chairman OF the finance committee Of
the New York Life Insurance company.
lie was succeeded as vice president by
Alexander l.. Orr president OF the New
York city rapid transit commission.
and as chairman of the finance COM
mittee by John Clafiin, head Of the H.
u. Claflin company.
Another important move In the sit
uation was the election by the trustees
OF the Mutual Life Insurance company
Of Charles A. Peabody to succeed Rich
ard A. McCurdy as president OF that
company. at $4,000 a year. Mr.. Nc
Curdy's salary was $l50.000. Mr.. Pea
body Is q lawyer. the American repre-
sentative OF William Waldorf Aston.
and director In several banks and
other corporations. of which one is the
Illinois Central Railroad company.
United States Senator John +. Dry
den. OF New Jersey, president OF the
Prudential Life Insurance company.
again testified before the investigating
committee and made a statement to the
committee Of his reasons for favoring
federal supervision of life insurance
companies through a national insur-
ance department. which he said should
have high authority over them. This.
he said, would benefit both the COM
panies and the insured.
The tendency of the holders of indus
trial policies In the Prudential and the
Metropolitan Life Insurance companies
To lapse was examined In great detail
by Charles f. Hughes, counsel Of the
committee. who quoted a statement OF
the Prudential company that ~ per
cent Of It's industrial policies lapse
within five years from the date OF is
sue. Senator Dryden declared that this
point OF the company as well as from
that OF the insured. and that the tend
ency now is toward a greater persist
ency on the part Of the Industrial hold
ers than formerly. The senator assert
ed that industrial insurance even with
| high rates and tendency TO lapse. Is
the greatest economic force now in OPP
Grafton in this country.
Assemblyman Cox again brought up
the percentage OF lapses In Industrial
insurance. and Senator Dryden point
ed out the economical value Of the sys-
tenn in teaching thrift and giving in
surance.
But they get so little OF IT," replied
Mr. Cox.
A representative OF the company
Prudential paid death claims growing
out Of Il amounting to STAG. on which
premiums amounting to $S330 had been
paid
Just before adjournment Haley Fiske.
vice president of the Metropolitan COM
pany. told OF an incident in which that
company commissioned William A..
Read to buy 1893 shares of railroad
stock for the company. Mr.. Fiske said
that Mr.. Read the same day sold the
stock to a company OF brokers at $40
a share less than the broker sold II to
the Metropolitan. Mr.. Fiske said he had
tried to get the money back. but Mr.
Read refused to surrender II.
Thomas +. Ryan appeared before the
Investigating committee and told what
+. II. Hartman did and threatened to
do when he demanded that Mr.. Ryan
concede TO him share in the control
OF the Equitable Life Assurance So
ciety last June.
Mr.. Ryan's version OF what Mr.. Har-
riman demanded and what he threat
ened to do upon the refusal of his de-
mands. was in substance as follows:
That Hartman demanded one-half
Of the 5O2 shares OF the stock of tfie
Equitable Life Assurance Society
which Mr.. Ryan had purchased from
James II. Hyde. and which gave Mr.
Atyuh 'eheipi VI NhN
That Hartman threatened. unless
he was conceded this share in the
control OF the society. to exert his po-
litical and all other influences against
Mr.. Ryan and his project.
That Hartman declared there prob.
ably would he legislative action. and
that In that event his influence would
be important. That Hartman demand
ed the right to name two OF Ave trus.
tees to vote the controlling stock in
the election OF directors Of the so
ciety.
In reply to repeated questions by
Charles f. Hughes. counsel for the
committee. Mr.. Ryan stated that Mr..
Hartman did not threaten that there
should be legislative action unless he
was given q share in the Equitable
control but said there probably would
be such action. Neither did Mr.. Har.