The Washington times., 1905-10-17
CANNOT EXPLAIN
GREAT DECREASES
IN PROFITS PAID
McCurdy Dodges Policy
holders Protesting
Letter.
MAY PREPARE" ANSWER
Statement Is Made That Div.
idends Fell Off Re-
markably.
MAY PREPARE" ANSWER

-Nc " AO<Nhs OCL- 4.-W QeQ 80
legislative insurance investigating COM
mittee resumed this morning. James
McKeen. associate counsel of the com
mittee. said that at the last hearing
James NJ. Beck. counsel for the Mutual
Life, had stated through President
McCurdy. then on the stand, that the
Mutual Life had assets that exceeded
those or the Bank Of England. the
Bank Of France. and the Imperial Bank
OF Germany
I'VE haYe received by cable the as
sets Of these banks as well as salaries
paid 10 two OF the officers OF these
banks" said Mr. McKeen
The assets Of the Bank OF France
are S1,222, ,oo0.0 .015; the assets Of the Bank
or England are s6l1. .554. rs: and the I'm
perial Bank Of Germany, s472.sz5. 900,
with total Of g, ,574.73
Assets Compared.
THE assets OF the Mutual were s440.-
sss.s71. in December. 1904 The assets
Of the three banks exceed those CO the
Mutual by H.7s5. $50. 334.
The salary paid to the leading off,
cial Of the Imperial Bank or Germany
Is $4,000. and that paid to the chief
governor Of the Bank of England II
$4,000. The salary OF the leading ofi-
cial or the Bank OF France We have not
at hand
Mr.. Beck arose ana said that no one
knew from whom the cablegrams came,
Beck Explains.
He said the committee labored under
a misapprehension; that he had said the
combined capital of the banks. and not
the assets, did not exceed that of the
Mutual.
The Mutual has no capital: so any
company exceeds IL in that respect %
said Mr.. Hughes. rising to his feet
Richard A McCurdy. president OF the
Mutual Life, was again called to the
stand
Mr. Hughes went at once into that
part OF life insurance which interests
the policyholders most. He quoted from
an advertisement in a magazine which
stated that the Mutual earned more and
paid more TO Its policyholders than any
company in the world
Important Letter.
The inquisitor said that the COMMITTEES
had received many letters from policy
holders and he desired to call the at
tention to one in particular. The letter
stated that a observation-disclosures pol
icy has been taken cut IN 1865 and that
during the years when the premiums
were paid the dividends were $50, the
dividend In 1S!5. the last year, the
premium paid was $3.50 and that since
that time the dividends have constantly
decreased SO that last year the dividend
was only So
facts stated in the letter. and fought the
questions of at every point, constantly
saving: Call the actuary-'
Mr. Hughes replied that since the
.1rw.~
company with an annual salary OF
Sl50.ooo. he thought il eminentIy fitting
TO inquire what he knew about il since
the company had in recent years boast
ed or Its great progress with its new
business and increasing profits and
growing surplus
Puts OF Answer
Pressed finally on these questions. Mr..
McCurdy said he would take the letter
for examination. and would see that a
reply was made. but at the present he
would decline to enter into u discussion
on that point.
Mr. Hughes read another letter from
policyholder. which stated that aivf-
dends on one policy fell from SO in 1868
TO 81 in 1904
1T is probable that the policy was
soon to mature replied McCurdy This
gave an opening. ana Senator Arm
strong quickly asked what the fact of
a maturing policy had TO do with
diminishing dividends
Mr.. McCurdy again lodged the ques-
tlOnS by replying:
THE actuary can give answer TO that
Perhaps, il was an error of Judgment
TO have made that reply. l do not want
TO be led into ~ wilderness of Qces-
tions and crosS-Questions.
Chairman Armstrong here interpOsed.
saying;
MIR, MeCurdy, this committee is nos
here 10 lead you into TiIderae IS, ana
do not think you quite Gpprehend the
sci. whose duty il is to recommend
proper legislation. You gentlemen have
practically all your lives been engaged
in obtaining knowledge OF these cues
formation 70 Us to the best OF your
knowledge"
- am going to give it to you by tho
best and most competent witnesses YOU
the actuary of the company"
The chairman here said:
IF the committee prefers your irnOwi-
edge and your Judgment. based on your
not To give that2'
If il is a matter OF preference with
the committee. ii is with me- replied
McCurdy.
Hughes Presses Point.
Mr. Hughes again took up the qEes-
tioninS.
Il viii put once more the question Of
whether the Mutual Life Insurance Conn
pany has not explained the decrease IN
dividends credited upon paid-up policies
upon the ground that the excess OF IN
terest earned by the Mutual Life In
surance Company OF New York. out OF
which such credits would came, has
been less in recent years than forrerly2.'
Iual Life Insurance Company IaaS have