Los Angeles herald., 1905-10-06
BIC COMMISSIONS
GIVEN RELATIVES
MUTUAL LIFE PAID $2,6o0,000
TO TWO MEN
Testimony Shows Presidents connee-
tIons Had a Good Thlng-Jerone
VIII Bring Insurance Scandal
Before Grand Jury

Robert A. Granniss of the Mutual Life
Insurance company. Witness said that
the contribution had been suggested by
the danger of a Democratic house thaC
would result in tariff and other leg1s-
lation of a character to upset business
and affect policy holders. He saiu
other companies had been asked 10
contribute. but he did not know now
many did. Mr.. Thummel denied pay
ing any money to any legislator TOT
the purpose of influencing leglslatloh'
Or to any other person for that pur rpose;
He described the legislative pool, ana
said the expenses were met by the
connany looking after the territory IN
which expenses were incurred, ana
later an adjustment of these expenses
was made between the three co1npa-
nies. He had received money from the
New York Life in these adJustments'
hut kept no account of his dlsourse-
ments. =,
Mr.. Thunmel said Mr.. Mccall was in
error in his testimony yesterday that
he had paid money to the witness 10
further federal supervision of 1nsur-
ance Witness talked with Mr. Nc
call on this subject and Mr.. McCall
had promised to contribute TO 1t, put
no money was paid to Mr.. Thummel'
$4,000 Tor Legislative "o'N
He further described the division OF
territory in the country under Wnlcn
+he three companies looked after reg
islation affecting insurance interests
and said the Mutual had paid out IN
1oo4 about $4,000 for Legislative work.
II was at this point that Robert NC
yurdv was called. He mad a NUMBER
of documents in his hand as he mount
ed the platform. and when he had been
sworn he testified that he was the
general manager of the Mutual LIE
Insurance company. His power ne
said. was delegated to him by the
nresident and vice presidents of the
company. His duties We're prlnclpaiy
confined to the supervision of the
agency system of the company in this
country and abroad. Like Mr. Perkins
of the New York Life Insurance COM
pany, he appeared to be the one factor
that built up the foreign business OF
this company. His salary was $5O'OOU
yearly.
Mr.. McCurdy had typeWrlIteI
statement of his career, which he asked
permission to read. This detailed his
various compensations, contracts ana
commissions There was number OF
reductions in the commissions. which
he said were made at his own request,
owing to the unforeseen success of the
foreign business. lllS OltlSl buSlllOoS
was inaugurated because of the sue
cess attained by the New York Life
Insurance company and the Equitable
Life Assurance society.
Mr.. McCurdy started this foreign
business in 1885 and assumed the office
of general manager in 1903 at salary
of 1000. The most startling part of
Mr.. McCurdy's testimony was made
lust before recess, when he submitted
a statement of his profits or the rev.
enue from his contracts on foreign
business. From 1885 to 1902. while he
was member of the firm of Raymond
e. Co., the metropolitan agents of the
Mutual Life Insurance company, his
profits were $209123. Under his con-
tract with the firm he paid one-half
or S104 sci to Mr.. Raymond. and from
1893. when he left the firm, down to
August 81 1905, his commissions were
81 ,059,267, making total personal rev.
enue from the foreign business from
1886 to 1905 of S1.163.S2g.
During the period of his connection
with the firm of Raymond &s Co. Mr..
McCurdy, according to his own testi-
mony. was receiving his share of the
profits on the business of the Mutual
Life Insurance company written by
his firm as metropolitan agents. This
sum Mr.. McCurdy was unable to give
any estiamte upon, and later in the
day, when Mr.. Raymond was called,
it was brought out that these profits
to Mr.. McCurdy amounted to $541, ,S52
net, or after his share of the expenses
of the firms profits had been deducted.
This makes a total of 1,7O5, 6S1 that
Mr. McCurdy received IN commissions.
In 1893, when MI McCurdy retired
from the firm of Raymond & Co., he
was succeeded by Louis A. Thebaud, a
son-in-law of President Richard A.
McCurdy of the Mutual Life Insurance
company. He was practically under
the same contract as Robert McCurdy,
and from 1893 down to 1904 he received
in commissions on first premiums and
renewals the sum of $92017 All these
amounts were in addition to salaries
paid Mr. McCurdY and Mr.. Thebaud.