Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1905-10-13

were brought back to the United
States.
GREAT IS INSURANCE GRAFT.
Responsibility to Policy Holders Not
Even Recognized. astcg'
The sessions Of the New York In
surance investigating committee were
terminated for the week at the adj
journment last Tuesday because Of the
death Of Fred Nixon. speaker Of the
assembly of the legislature OF New
York. at his home In Westfield.
The testimony of Tuesday did not
elicit any information Of a sensational
nature beyond what had been discount
ed In the testimony of previous wit
nesses. The feature was the presence,
as witnesses, Of the executive officers
of the Mutual Life Insurance company.
These were President Richard A Nc
Curdy and Vice Presidents Grannis and
Gillette.
While It had been limited last week
that some expenditures charged to ie-
gal expenses might have been contri-
buttons to campaign committees, 1t
was announced definitely by DR.. Gill
lette that the Mutual Life contributed
$40, 900 to the Republican national COM
mittee last fall. that In 1900. $S6,OOO
was contributed, and In 1896 $4,000
was given for campaign purposes.
Dr. Gillette testified that he paid
these amounts personally in cash. ana
later in the day Mr.. McCurdy said that
while he knew campaign contributions
had been made, he did not know the
amounts. He said that no contribu-
tions had been made to campaign COM
mittees before 1896. and that no con-
tribution to state or municipal cam
paigns had ever been made In this or
any other state. The contribution OF
$1,000 to the congressional campaign
committee Mr.. McCurdy said, he knew
nothing about until it came out In the
testimony last week.
$4,000 at q Time Unaceounted For.
An interesting statement was made
by Robert Olyphant when he was on
the stand early in the day. Mr.. Oily
phant is chairman of expenditures and
he could not tell what the $25,00O items
drawn to his order were for, beyond
that they were for legal expenses. He
said the company maintained a confi-
dental fund for expenditures, for
which no voucher was taken and no re-
ceipt was received. These payments
were made up on the assurance OF an
executive officer that they were all
right.
Vice President Grannis knew little
about the contributions to campaign
funds, but justified them on the same
grounds as President John A. Mccall
of the New York life, that the free
silver plank in the Democratic plat
form was a menace to the interests OF
the policy holders.
When Mr.. Crimmins was called he
assumed the entire responsibility ior
the terms Of the contracts with c. n.
Raymond & Co.. by which that firm
made such large profits. When the
method of the expenditure OF the $2b,-
900 items was inquired into Mr.. Gran
mis- admitted that the general solicitor
could get $4,000 any time he wanted
It without disclosing for what purpose
he wanted 1t and without rendering any
account of 1t. He further said he new
er knew where a cent Of the money
spent by the general solicitor went
In taking up a detailed list OF the
company's expenses DR.. Gillette said
that the company last year paid $72'ooo
for luncheons for the employees. 1t
Is a custom for the company to FUR
nish their clerks with luncheon. This
Is at the rate Of about $3.50 a day.
Son in. laws Business, Not His.
President McCurdy was on the stand
all of the afternoon session. Mr.. NC
Curdy testified that he never knew
what Mr.. Thebaud, his son-in-law, was
getting out Of the business OF Z. II.
RAYMOND & Co., and said he did not
think II was any Of his business to ask
about Mr.. Thebaud's personal AFFAIRS.
He said the company did the business
TO get the commissions and that was
all he knew. All contracts were maze
without his knowledge. Witness salo
on the matter of salaries that he never
requested that his salary be raised,
and all such increases he took as
compliment to his management OF the
business They were always made by
the committee on salaries Of their own
volition.
Are the Officers on "The Earth2"
Toward the close of the session Mr..
McCurdy made the startling statement
that an insurance company was not an
institution founded to make money for
the policy holders, but was, or should
be, a great philanthropic enterprise.
founded to increase and spread its ben
efits over the entire earth.
There has been a great mistake
made" he said, about the real pro-
vince Of life insurance companies In
these latter years. People have been
led to believe that the main purpose
was to make money for the policy hold
ers. In my view that Is not the pur-
pose Of such companies. They are
eleemosynary. When man insured In
a company he should take into con-
sideration the fact that he has entered
a great philanthropic concern that is
in, duty bound to spread itself, even
though growing prevents him from
realizing as much as he expected"
It was brought out that the witness
and DR.. Gillette held enough proxies OF
policy holders to control the board OF
trustees by electing its members.
Mr.. McCurdy said he understood that
the policy holders have sufficient conf
dence in the Mutual to take out policies
and leave the management to the on-