Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-10-06
General Manager Robert McCurdy
Said They We're Fixed by the
Finance Committed,
DIDN'T KNOW THE PRESIDENT
Medical Director Married a Sister Of
hcCurdy Senior Secy's Wife Niece
OF v p GranniSs

New YORK, oct, b,-RObert MCCurdy,
general manager OF the Mutual Lie
Insurance company, was again a wit
ness today I'm the insurance lnSestiga-
ton, lie went on the stand Immediate
~ after Cornelius c. white. an auditor
Of the New York Life Insurance COM
pany had left It, after making a cor
rection In his testimony relative to
the $4,000 payments to Andrew Hamil-
ton in 1904. lie said that the $lil,0N
received by Hamilton In 1904 included
the $4,000 which was charged to state
taxes.
Mi McCurdy said that the proportion
of his commission ON the foreign busl-
ness, paid 10 &, III. Raymond, after he
left the firm Of G. II, Raymond a. Co.,
would be presented In q statement nov
being typewritten.
The salaries OF the Mutual Life In
surance COmpany's officers, witness
said, were fixed by the finance commit
tee. lie did not know me salary Of
the president, nor did he know that
anybody did besides the president lie
did not know that the finance commit
tee ever fixed the presidents salary
Witness said he, as general mana.
kflt lIhut an 'NllNl tN'NN W lNlA hhNAAN''
The general agents ON the same plane
as S. II. Raymond & CO., number seven
iu the United States, two I'm Canada ana
one In Mexico, Al the foreign agents
are general agents, There are rs salar-
led agents aside from those who besides
salary receive commissions on iirst-yedf
premiums but no renewals The highest
salary paid to these Is $4,000 paid to the
general agent at Chicago,
Witness then detailed the changing
of the agency system from that OF gem
eral agencies with commissions like
the Raymond firm to that of salaried
agents, The reason for these changes,
he said, WAS that the new system was
more economical to the company, pro-
ductive Of more business and easier to
handle.
When a general agency is changed to
a salarled agency, the renewal COM
missions called for In the contracts un-
der general agency are still paid to
the salaried agent The Raymond firm
was not changed to a salarled agency
because the contract with c. VI. Ray
mond & Co. which expired In 1904 was
continued by the witness through 1905.
So far as he knew there was no reason
why this agency should not have been
changed TO a Salarled agency in 1900
He was not general manager then and
was not familiar with the affairs of the
company at that time. Witness .rea-
son for extending the contract through
1905 was because for the Ave previous
years the firm had been writing St1 000.
GOO insurance "a year The firm had six
branch offices and he wanted. I'm COM
petition with the New York Life and
Equitable, to continue 10 establish
branch offices, He figured the cost
would be $4,000 and he could not
very well ask the Raymond firm to put
up that money when they had but a
years contract. lie Therefore entered
an agreement to have the Mutual Life
pay this expense and guarantee the
Raymond firm $4,000 600 business. The
firm was then receiving s7ia per cent
Of its first year premiums
Subsequently this was raised to a5
per cent Of first year premiums. In
consideration of the firms allowing
certain concessions to the company In
developing the agency business and
with the expectation OF converting this
agency to a salaried one at the end Of
1903 he extended the contract, Witness
said there Is a constant effort TO reduce
expenses, but to reduce expenses is
usually to reduce the business.
In making the contract with Ray
mond Il Co., witness said he had not
the faintest idea what Mr. Thebaud
was getting from the business
The general agency system, he said,
had 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 between
Mr.. Thcbaud and Mr. Raymond was.
This large reward for large achieve
ments," he said, has built up rail-
roads and all other business and Il
justifies us in adopting such q system"
Witness did not know what general
agencies OF the New York Life Insur-
anCe company or the Equitable society
received as much as c. II, Raymond
& Co., but said the agents that write
the business yet Just as large pre-
mlums In other companies as in tie
Mutual Life
Witness said that last year the Mu-
tual Life Insurance company wrote
y26000000 worth of business more than
In the previous year, and the expenses
were reduced at a ratio Of two per cent
The total receipts for 1904 was S8t OO2,-
0Si, and the total expenses $l6,S9S, i5G.
The usual ratio Of expense was estl-
mated at about 25 per cent
u WAS the impression OF the witness
that the general agency in Texas re-
celyed as high compensation az g. II.
Raymond & Co. Higher commissions
were allowed I'm New York and Texas
than anywhere else because It cost more
TO get the business.
Don't you think you could get Mr..
Thebaud's services for 100000 Mr..
Hnubcg "a atFaI
Il suppose 80, II he did not have a
contract"
Don't you think you could get them
for $4,000 instead OF SilLOOO that he se-
cured from Raymond e. CO., last ycar?"
MIR. Hughes continued,
~ am not sure Of that" witness re-
piled
II was brought out that George 4.
Raymond a brother Of Charles y
Raymond was the general agent for
New Jersey
Howard Lewis, Of Albany, the general
agent for northern New York, witness
said he believed he was n cousin or
second cousin Of either Vice President
Robert A. Granniss or OF Mrs Grannlss.
DR., Elias j. Moss, the medical direc-
tor, married q sister OF President Nc
Curdy Witness said he ala not know
the salary he received.
d, Stuyvcsant Pilot who is an IN.
spector Of risks, is n cousin Of Louis
A, Thebaud q. w. White, a secretary
Of the company Is no direct relation 10
any Of the other officers, but there was
laughter I'm the committee room when
Mr. Curdy stated that Mrs. White was
a niece NJ Mrs. Grannss, wife OF Vice
President Grannlss.
New Worlds Record.