The sun., 1906-02-25

Curdys and Raymond ( Co. is contained IN
q letter written by the committee to Presi-
dent Peabody on January o. The letter
Yves reply TO one from President Peabody
esking for full information In regard to the
facts upon. which the committee had based
It's conclusions. The committee sent Presi-
dent Peabody copies Of it's correspondence,
minutes and all other records, saying:
You will no doubt be impressed. as this
committee was, with the incompleteness OF
this record. IL was all. however. that we
have been able to obtain. notwithstandin n x
our efforts. repeated fro IN time to time. be
cause OF our relucta to assume that such
record on subjects of such Importance was
all that could be furnished,
This, it Is said. refers to IA time before
Mr.. Peabody became president.
The letter says that 1t must be manifest
that the records contain nothing that could
be deemed to constitute an authorization
for the increase OF the former president s
salary and for the payments, under the
to Robert II. McCurdy and to the firm Of
Charles Fl. Raymond 4 Co.
The letter contains this reference to
Julien 4. Davies, the lawyer, and a trustee
Of the Mutual:
AT each meeting held so long as he con.
tinued to advise with our comm ittee that Is.
down to and including our meeting Novepl-
Der IS. lsO5-Alr. Davies. who, at or about
that time. was appointed by MIR. McCurdy as
general solicitor OF the company. urged on
US the advisabilty of at once compronisin g
with each OF the three parties named.
In regard to President McCurdy's salary
OF $50, ,0O0 the letter says 1t appears that
only two members OF the board, aside from
Mr.. McCurdy. knew what it was. and they
constituted the committee which fixed it..
The COMMITTEES, according to the letter,
rNado fhia avrln n IA ttpv, fOr tho aaIarv
That il was fixed at the above figure no
on the theory that the dutiss and RESPONSE
bilkiss OF the position warranted the pay
ment OF snoh q sum annually to the COM
panys executive but that as he expected to
retire from tho active work of the company
In two or three years and under the rules of
the company no pension could be paid to him
IL was urged on his part and deemed by the
members OF the said committee reasonable
and iust that he should be paid said salary
from the time it was 30 fixed until the time
when he should retire from active service.
The committee expresses the opinion
that the salary was unreasonably high.
and declares that the expenses OF the COM
pany. which. are proportionaliy higher
than those OF any other company, were due
to these causes
/. To the unus ial and improvident alleged
contracts made 5csween the company and
Robert H. McCurdy ana L. II. Raymond d
Co. and to the large allowances made under
them not provided for by their terms.
2. To the unauthorized and excessive pay
ments made through Andrew c. Fields and
others for the direction and control OF legls-
lation contributions to political campaign
funds and other similar purposes.
3. To the large amount OF printing and
stationery bought and excessive prices paid
therefor 10 Lysander W. Lawrence and the
Globe Printing Company, controlled by said
Lawrence.
4. To the generally loose and unbus-
nesslike methods in which the company Q
purchases Of supplies of all kinds were made,
audited and paid through the company's
supply department.
Other things mentioned are excessive
and unwarranted payments for advertising,
largo salaries to officers, the expensive
and dishonest manner in which the build
ing has been run, the retention in the en-
ploy oS the company OF certain employees
who render no service Of substantial value.
and to the large allowances made TO agents
Besides finding that the commission
contracts Of Robert II. McCurdy we're
unauthorized the letter says that Mr.
Robert H. McC,irdy being the son OF the
president of the company. this fact must
have and undoubtedly did exercise an
unusual and undue influence in the minds
Of those who. acting in the company's
behalf, knew OF and took part III the trans
actions which have taken place between
the company and Mr.. Robert II. McCurdy
under said alleged contract,