New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-20
]. H. M'CURDY'S TRIPS.
PAID FOR BIZ THE MUTUAL
Hs Did Turn Back SS97-Fmher
Got 8 Per Cent, Company g.

N
sion Of the Legislative Insurance Investigating
g~o,,,,,;.+as was furnished by Robert Il. Nc
C.urdv son of the President Of the Mutual Lie
assurance Company who testified to his return
:, the oomnanv of ss27, the balance Of a sum
,,ai6 10 him for travelling expenses. In the
RAINY sessions IN which the payments OF the
Mutual TO the MoCurdys. amounting TO over
$4,000. 600 was shown. this instance is the first
of its kind.
The trips OF the SON Robert, were about the
most interesting single phase Of yesterday SEES
sion Appointed general manager in july ASU''
he promptly began series Of expeditions 10 IN
vestigate the agency field. The expense of these
trips was, of course charged to the Mutual In
1904 three such expeditions cost the Mutual
81, 500. less the 1927 returned
On one of these expeditions Mr.. McCurdy
travelled with his father in the latter's private
soar His mother his wife and his wtfes maid
l-e z-i,b him He inspected several agencies
an +ba trim but his father had severe attack
of rout and the son was obliged to give up in
snection and come home with him. This trip
cost the Mutual polcyholders $1,000 but MI
tMcc,ur5v declared this covered merely his own
f.vDansas and that he paid those of his wife
{n,n,self He went on the same sort of trip
tb,s year and his father was again attacked
Inv govt but this apparently cost the policy
lost in attending his father. The $500 trip
consumed thirty days. making a cost Of $50
daily TO the policyholders. Asked why the cost
was so great Mr.. ATcCurdy replied
ooh well you see. travelling rapidly"
Mr.. McCurdy could recall none of the details
that made his trips so expensive.
Another expedition of three weeks through the
Middle West cost the policyholders 81 600.
These two trips occupied the larger part of the
first quarter of 1904 There was another trip in
1908 that Mr. McCurdy thought cost approx
rnately 81 600. Except on that with his father,
there was no private car. but Mrs. McCurdy &C
conpanied her husband in every case. and her
maid went along. There was also a trip to Chi
fcago to an agents convention. that was first
entered on the books of the Mutual costing
$500, and subsequently modified by the return
Of 1921 DR.. W. R Gillette went on this eXpe-
dition. Then Mr.. McCurdy testified TO $299
expense net by the Mutual. which covered sew
era1 dinners and receptions which he gave to the
agents of the Mutual abroad. This little social
festivity took place in Paris An entertainment
was included in the reception. Asked about the
reason for his frequent trips, Mr.. McCurdy ex-
planned he wanted to Took over the agencies
TRUST COMPANY DEPOSITS.
A somewhat pulling situation disclosed
regarding the deposits of the Mutual Life in
the Morristown Trust Company. President
Richard A. McCurdy testified this point that
the Mutual Kept a balance Of 100000 with this
company, and that a . per cent rate Of interest
was paid on this. Then he admitted his own
money deposited in the same institution netted
him 3 per cent It was also disclosed that since
the investigation had begun the rate paid
Mutual money had also risen to a per cent
level. Mr. McCurdy in his explanation pointed
out that the Mutual, through its holdings Of
stock IN the Morristown Trust Company, was
deriving a large share of the dividends paid by
the company. but his explanation was hardly
complete When he was asked about the hold
ings of his family in the stock of the company.
ne replied that he had definite information.
Does your son-in-lew. Louis A Thebaud,
hold stock thereg' asked Mr.. Hughes.
u hope So but don't know" was the benign
answer.
On the old question of campaign contributions
Mr. Hughes asked AIr. McCurdy yesterday:
Has the Mutual ever contributed to cam
paign fund other than a national contest?"
mo. can't conceive that possible" Mr.. Nc
Curdy said
Have you-e been solicited. for a. campaign
fund.-"
1T is very likely may have been"
WHO solicited your
ST can't remember. AS Mr.. Granniss said
once his mind was a blank. I say my mind
IS a blank also. I have a very vague idea
there was some talk about a campaign contrt-
button in the air.
The larger portion of the morning session was
consumed in the examination Of the operations
of President McCurdy in gyndicates in which
the Mutual took part. or from which It bought
bonds There were a number Of these transac-
tions which differed in no way from similar
transactions which have been shown in the case
OF number Of other directors and officials of
insurance companies. Mr.. McCurdy's total profits
from these sources aggregated approximately
$4,000.
THE SYNDICATE TRANSACTIONS
'Twin you explain how it happened you took
an allotment In these syndicates?" Mr.. Hughes
asked
why. simply because had an opportunity 10
PUT my money into what conceived from the
best information I had to be a good thing. I
had a perfect right to do it," was the calm
response. The share OF the Mutual Life in the
Notation Of the Brooklyn Wharf and Warehouse
securities and In the Washington Traction and
Electric companies was also probed but little
new light was thrown on these transactions
The same was true Of the examination Of Presi-
Dent McCurdy's holdings in subsidiary compa-
mics OF the Mutual
In the afternoon Mr.. Hughes started on a new
trail that may prove fruitful OF surprises next
week He read letter from a policyholder
charging that the Mutual required policyholders
who lost their policies TO furnish a bond to Sc
cure the insurance company when a new policy
was issued. and that It was further REQUIRED
that the bond be taken out in a particular COM
pany IN which officers of the Mutual were IN
ferested Mr.. McCurdy admitted that a bond