Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-28
PROBING INSURANCE
Former State Comm ssioner
Payn Oh the Stand
AT NEW YORK INQUIRY
DECLARED THE WELLS CHARGES
ABSOLUTELY FALSE.
Investigation of the Mutual Reserve
by the Department in 1899
Taken up Today.

NEW YORK, December 2s-Iouis r,
Payn, the former state insurance commis-
sioner, testified before the insurance inves-
tigation committee today that the charge
made by James d. Wells, former vice presf-
dent of the Mutual Reserve Life Insurance
Company. that $4,000 had been paid to Mr..
Payn by the Mutual Reserve for allowing
the company to write its own report of an
investigation by the insurance department,
was absolutely false in every particular.
He said 1t grew out OF the fight between
Mr.. Wells and President Burnham.
Mr. Payn, who was on the stand when
the committee adjourned yesterday. was
the first witness today.
The investigation of the Mutual Reserve
by the state insurance department in 1909
was again taken up. Mr.. Payn said of the
charges made by officers and employees that
he made up his mind that nothing that
President F. A. Burnham James D.
Wells, formerly vice president of the Mu-
tual Reserve Company, said was worthy
of consideration.
The Stipulated Premium Law.
Mr.. Payn was asked about the stimulated
premium law which was enacted during his
administration He said that Mr. Appleton
and the actuary of the department drew II
employed personal counsel from time to
time. and when asked if he availed himself
of the attorney generals Office said:
dun like TO speak disrespectfully of a
state officer. My experience with the at
torney generals office was that | did not
feel quite satisfied to go there for advice
except In some cases where the law COM
PEELED me to do There were decisions
one way and next year there would be-
decisions another way. Then there would
be an attorney general who would give an
other decision''
At this point Mr.. Hughes asked Mr.. Payn
what he had to say concerning the charges
made by former Vice President Wells OF
the Mutual Reserve Life Insurance Com
pany that $4,000 had been paid to Mr..
Payn by that company for the privilege OF
writing its own report of an exaIniua ton
by the state department when Mr.. Payn
was insurance commissioner.
Report Grew Out Of a Fight =:
Mr.. Payn replied: when was asked by
the newspapers about that SAID had no
comment to make, bat I say to you. Mr.
Hughes that 1t is absolutely false in every
particular, and Mr.. Burnham and Mr..
Wells both testified under oath that it was
false. That report grew out of fight be-
tween Burnham and Wells
HAS there been any payment to you
personally, or to any one in your behalf,
of any money or fees in connection with
this matter?' Mr.. Hughes asked
Absolutely none, fepIleQ MI. GayH, anu
any man who suggested such thing to
me would have been very fortunate TO get
out of my presence with head on his
shoulders"
Prussian Insurance Companies.
Mr. Payn said that after he refused to
admit certain Prussian insurance compa-
MES to do business in this state and before
all foreign insurance companies were barred
from Prussia, the Prussan government
had admitted the New York Life Insurance
Company and any other company which
would comply with its laws. Mr.. Payn
said his impression is that the Mutual Re-
serve Life Insurance Company did not ap-
ply for admission to Prussia.
President McCurdy of the Mutual Life
Insurance Company. Mr.. Payn said, told
him that he had been trying to adjust the
insurance question between Prussia and
the United States government and asked
Mr. Payn not to interfere. II told him it
was no use to talk to me, as my mind was
made up said Mr.. Payn Mr.. Payn said
that his report, by which he finally ad-
mitted the Prussian companies TO New
York, was filed before ]. Rider Cady re-
ported to him the result of a conversation
with Mr.. McCurdy.