Los Angeles herald., 1905-12-29
PAYN STRONGLY
DENIES CHARGES
HE TESTIFIES AT INSURANCE
INQUIRY
Declares He Did Not Receive $4,000
From Mutual Reserve to Allow
Company to Write Its
Own Report
BY Associated press.

by ASSOClate0 !s'reSB.
NEW YORK, Dec. 2S.--Louis r. Pawn
and j. Ryder Cady. who was employed
at times as counsel by Mr.. Payn while
the latter was state superintendent of
insurance, were the witnesses today be-
Iore the insurance investigating COM
mlttee and furnished practically all of
the interesting testimony, notwith-
standing the fact that more witnesses
were examined than on any other day
since the investigation began
Mr Payn was called to complete his
testimony interrupted by adjournment
yesterday, and in reply to one of the
ilrst questions asked him emphatically
denied the report that he had received
$4,000 from the Mutual Reserve Life
Insurance company and had allowed
that company to write its own report
OF an investigation which Mr. Payn had
caused to be made in 1899 Mr.. Pawn
characterized the report as absolutely
lalse IN every particular, and said it
grew out of {. fight between James ID.
wells, former vice president of the
Mutual Reserve, and President Burn
ham of the same company. Judge Cady
was brought into the investigation by
reason of his having appeared before
Mr. Payn in the interests of Prussiar
insurance companies seeking admission
I" the united States. This application
was denied by Mr.. Payn, but two wears
later 1t was granted. President Mo
Curdy OF the Mutual Life Insurance
company had asked that this nern1is-
sion be held up until he could see Mr.
Fayn. This request was refused. but
Mr.. Payn had Judge Cady call upon
Mr.. McCurdy.
Mr. Hughes asked If Mr.. McCurdy
salu the Mutual Life would pay any
money for a contrary decision Judge
Cady said he did not but that Mr. Nc
Curdy offered him a retainer in behalf
Oh the Mutual Life, which he refused.
The New York office of the insurance
department. was inquired into, when
Ropert Hunter. deputy superintendent
was called. Mr.. Hunter could add moth
ing as to the conduct of the insurance
department but what already had been
supplied. 1t was brought out that
through his influence he had had a med
lcal examiner of the Equitable Life AS
surance society in Poughkeepsie dis
charged.
Accumulative evidence on the allot-
lnent or the 1000 shares of stock of the
Lawyers Mortgage Insurance COM
pany, which while held for the Mutual
Life Insurance company were accred-
ited to members of the finance board,
was taken in the examinations of G.
G. Haven of the finance committee, and
frederick II. Cromwell, the present act
ing president of the Mutual.
Henry Morgenthau of the Lawyers
Mortgage Insurance company told how
Mr.. McCurdy had become indignant
because he had not been allotted shares
in the Lawyers Title Insurance and
Trust company, and to appease him
block OF Lawyers Mortgage Insurance
company stock was offered him, but he
would not take it, and further gave Mr..
Morgenthau to understand that no ap-
plications for loans from either COM
pany would receive consideration from
the Mutual.
When Mr.. Cromwell was on the stand
he was asked what consideration he
had given to economies in the Mutual
Life Insurance company. He said he
could not give exact figures for the rec
ord but that there would be a saving
of perhaps a million and a half dollars
next year. He added that the most
unpleasant duty he had had to per-
form was that of being headsman in
discharging employees during the last
few years.
Late in the day the United States
Life Insurance company's affairs were
taken up by Mr.. Hughes. The presi-
dent Of the company, John P. Num-
was called to the stand. He submitted
number of statements of syndicate
participations, which were read for rec
ord, also statements of the cost of in
surance to his company He will re-
sumo tomorrow.
District Attorney Jerome today re-
ceived a copy of all the evidence thus
far submitted to the insurance investi-
eating committee. There are numerous
volumes. Acting District Attorney Mott
said today that a special grand jury
would probably be impaneled in Feb
ruary to consider the testimony.