The Montgomery advertiser., 1905-10-18
Mutual'S President Shows
 His Temper.
CROWD JEERs WITNESS
Interesting Testimony is Most
 Unwillingly Given.
literary Bureau Maintained for the Pur- pose of DisseminatInE Matter
 Favorable to the Life In-
 surance Companies.

New York. Oct. 17.-Testimony in the insurance investigation which was re- sunied today after weeks adjourn nnent of the Legislative Committee taken because of the death last week of 6. Frederick Nixon. Speaker of the Assembly of the State of New York, was most exciting throughout the en- tire day, and only the repeated threats of Senator Armstrong, chairman of the committee. to clear the room prevented violent demonstration of disapproba- tion of the witness. who was Richard A. McCurdy, President of the Mutual Life Insurance Company
 As it was, however, there were jeers at several periods of the days testi- mony that temporarily interrupted the testimony. These came when MT. Hughes. the counsel for the committee, asked questions that MT. McCurdyi was reluctant to answer, or evaded and were made by the crowd that stood at the back of the room which long ago proved inadequate to accommodate the counsel and witnesses summoned and the crowd of spectators that increases with every hearing.
 going to lead or where it will cnd has caused no small amount of conjecture and doubtless, in some quarters, anx- iety. With the many threats that have been taken up and dropped before they have been Followed to their ends in or der that some new lead may be taken up and with the additional features that are. disclosed with almost every days hearing, the interest grows more intense.
 Tn Mr. McCurdy's testimony today, a feature entirely n w was disclosed and this was that the Mutual Life Insnr4 ance Compa ly employed a literary bu- reau to send out to the press of the country news matter that was of ben eft to the company.
 "LegaI Expense" Account.
 This information was elicited during the probing of the leg il expense" ac- count. It came out when voucher for the payment of $2,5o0 to Joseph How ard, Jr.. in 1901, was paid. Another voucher for the same amount paid in May, 1905. was marked "repayable on demand" and Tor professional ser vices.
 MT. Mccurdy had vissd the vouch- CTS and explained that MT. Howard was newsp lper correspondent and that his profasional services consisted in sym dfcating news stories. Pressed further, Mir. McCurdy said MT. Howard was a correspondent for The Boston Globe and several other papers,"
 Mir McCurdy further said that he paid MT. Howard about $2,500 a year .or these services.
 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 busi- ness increased and the assets piled up. This question was prompted by the let ters received from policy holders by the committee and cited facts and ex ampies. These letters came from all over the country, MT. Hughes explained. but he read a number from policyhold- CTS who live in this city. The exam pies cited were principally on the pol - icies of ten payment life plan. One in particular for $3,000 that in 1898 drew a dividend of $55.76 had been gradually cut until in 1904 1t received only S3. The writer enclosed tables and state ments from the company's reports and said this was in the face of the reserve increasing year after year.
 To all the questions on this matter. the witness said he was not fortified with the information required: that these were actuaTy matters. and. when pressed for his opinion, replied that he refused to discuss the question or to enter any discussion. He would proffer a witness, his actuary, whose business it was to know these things. but as for himself he would not discuss the uues- tion." Mir. McCurdy's demeanor was so insistent and at times defiant that the spectators bent forward to catch every word and stood on tiptoe expecting ev- cry moment to hear him directed by
 
 When Mir. McCurdy would not offer the information himself. Mir. Hughes started on another line of inquiry
 McCurdy Allowed to BaIk.
 Later in the day Chairman Armstrong explained that since the information desired by the committee could be ob- tained by another source. it was agree able to the committee to let McCuriy place himself in the position he did Had he, however. been directed to an swer. and knowing the information desired, and the refused, Mir Arm strong said steps would have been taken to Indict him for a misdemeanor
 Mir. McCurdy, also. during the effort to induce him to answer questions as to the regulations of the dividends, launched forth into protest as to the manner in which the investigation was being conducted. He said the commit tee was going beyond the scope in- tended when it was appointed by the Legislature. and that the investigation had assumed the proportions of an in- duisition Mir. McCurdy thought that putting a witness under oath made him feel he was on the rack. He said his answers were published in distorted form, that appeared like an attempt to ruin him,
 Before Mir. McCurdy was called, James McReen, associate counsel to the committed. put in evidence for the rec ords statement of the assets of the Mutual Life Insurance Company and of the Banks of England, France and Ger many James NJ Beck of counsel for the Mutual Life Insurance Company claimed last Tuesday before the com mittee that the assets of the Mutual Life exceeded the combined assets of the Banks of France Germany and England By cable MT. McKeen said he had ascertained the combined as- sets of these institutions were &2,226,- 574.725, while those of the Mutual Life were S44O.97s.371. Further. said Mir McKeen, he found the salary of the President of the Bank of Germany to be $50, 900 per annum, and that of the Chief Governor of the Bank of Eng land to be $10,000 He had been un- able to ascertain the salary of the Pres Ident of the Bank of France
 The examination of Mir. McCurdy was then begun, he being questioned first as to advertising. A clipping from s magazine for October. 1905, was shown him. He said it was an adver- tfsement inserted by his company, set ting forth the advantages of his com