The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-06
Huge Insurance Written.

His reason for extending the contract
thru 1905 was because for the five pre-
vious years the firm had been writing
ST. 100000 insurance a year. The firm
competition with the New York Life
and Equitable, to continue to 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 year Is
contract. He, therefore, entered an
agreement to have the Mutual Life pay
this expense and guarantee the Ray
mond firm SIT 100000 business. The
firm was then receiving s712 per cent Of
the frst-year premiums. Subsequently
this was raised to 88 per cent Of first
year premiums. In consideration of the
firm Is allowing certain concessions to
the company in developing the agency
business and with the expectation Of
converting this agency to a salaried
contract. He said there is constant
effort to reduce expenses, but to reduce
expenses is usually to reduce the bust
ness.
No Light on Thebaud.
In making the contract with Ray
mond & Co., he said he chad not the
faintest idea what Mr.. Thebaud, his
brother-in.law, was getting from the
business
The general agency system, he said,
has built up the life insurance business.
It has paid large re-. regards rds+ for ti large
saw a statement two months ago he did
not know what the division between
Mr.. Thebaud and Mr.. Raymond was.
'%"This large reward for large achieve
ment, - said Mr.. McCurdy, !" has built
up railroads and all other businesses and
| justifes us in adopting such a scheme. /"
| Mr.. McCurdy did not know what gem
Of the Equitable received as much az
! G. FL. Raymond & Co., but said that
the agents that write the business get
lust as large premiums in other compa-
MES as in the Mutual Life. He said
that last year the Mutual Life wrote
$26,0O0O00 worth of business more than
in the previous year, and the expenses
were reduced at ratio of 2 per cent.
/ The total receipts for 1904 was SSH
| COZ, 1884 and the total expenses SIG $685.
456. The usual ratio Of expense was
estimated at about IS per cent.
Big Pay in Texas, Too.
If was his impression that the gem
eral agency in Texas received as high
i compensation as G. II. Raymond & Go.
Higher commissions were allowed in
i New YOrK anu leAdS Gudu Nduy Wu0fo
else because it cost more to get the
business.
"Don It you think you could get Mr..
Thebaud's services for $100,0009' Mr..
Hughes asked.
4 suppose 50, if he didn't have =
contract.
ssDon It you think you could get them
for $4,000 instead of $147 900 that he
secured from Raymond & Co. last
/ year9' Mr.. Hughes continued.
i / am not so sure of that wit.
ness replied.
j Asked to explain what conditions OF
competition permitted the firm of Ray
mond & Co. to make $247, 900 last
year, of which Mr.. Thebaud received
4 $147 900, witness said the company did
. not know what the firm was making out
j of the business and that, like every
merchant and business man, they were
in the business for what they could get
out Of it.
Mr.. Hughes asked, "Did you inquire
or learn in any way what G. II. Ray
mond & Co. had been making9'
NO
Ought not a general manager to in.
! Continued on I'd Page, 5th Column.