Staunton spectator and vindicator. [volume] (Staunton, Va.) 1896-1916, 1906-01-01
STARTLING RESULTS.
What The Life Insurance Inquiry Has
Shown,

Shown.
New York Jan. 3.-With the old year
ended the investigation of the gigant-
ic life insurance frauds by the New
Y ork Legislatures committee.
The regulations of score of men
who have stood as models are tarnish-
ed black as the result of the disclosures
This financial earthquake was start
ed by personal squabble between
James w. Alexander, president of the
Equitable, and James Hazen Hyde,
nOminally ce-president, but the real
power by Inheritance from his father.
the founder of the Equitable
Inqulsitor Charles Z. Hughes has
examined Hyde, Thomas F. Ryan, E.
H. Hartman. of the Equitable; John
A. Mccall and subordinates In the
New York Life: McCurdys in the Mu-
tual; Frederick A. Burnham, of the
Mutual Reserve; John A. Hegeman,
the brennan power of the MetropOli-
tan, and many others, including Sena-
tors Platt and Depew, all forming cogs
of the great wheel of insurance graft.
The pOlicyhOlders' money, it was
shown, was commo lily diverted to the
use of the companies in which Equi-
table directors held stock, and which,
in turn, unloaded their mortgages on
the Equitable.
The mutual feature was found to be
a farce, the pollcyholders having real
ly no voice in the government OF the
big mutual companies.
Millions of dollars belonging to
Equitable policyholders were deposit
cd in banks controlled by Equ table
directors, only a nominal rate of in
terest being charged in place of much
higher rates gladly offered by indie
pendent banks.
or q profit of more than $12, 200, 900
m AIDE by the Equitable in syndicate
transactions, not one dollar reached
the Golfers of the society. No record
was kept on the books of syndicate
operations amounting to $685. 900 by
G. H. Squire. the financial manager of
the Equitable.
From President Mccall and Vice
Presid dent G Gorge w. Perkins (partner
Of }. Pierpon5 Morgan) Hughes learn
cd that the New York Life had con.
tributed $3.50, 900 to Republican cam.
paign funds.
Upwards of 1925. 900 was paid at
QUE time or another to the yellow
Dog" fund, which the insurance CON-
pBnies maintained to influence the leg
islatures of the country,
To one man. Judge" Andrew Ham
ilton. who looked after the interest of
the New York Life partic ularly in the
Albany Legislature. $780, 900 in one
sum had been paid for a purpose not
disclosed. Hamilton declined to re.
turn from Europe for the purpose of
examination, and sent over an evasivs
accounting Of a $720 900 balance
known as the yellow Dog fund.
The New York Life entered into a
secret agreement with Morgan's First
National Bank to advance millions on
loans and charge II per cent. inter.
est. Perkins admitted that be, rep
| resenting the New York Life. sold to
his partner, Morgan, 100000 worth
OF International Marine stocks, and
the following day, as the representa-.
tive OF j. P. Morgan u Co., sold this
stock back to the New York Life at
par
After this the public heard the story
OF an appalling nepOtism in the Mu-
tual Life. McCurdy's salary of $780,
700, fixed by himself, has been reduced
to $50 900 year, now that McCurdy
is out and Peabody is in. McCurdy s
son, Robert H., general manager, had
an income of $3.50, 900 d year from va
rious sources in the company. A to-
tai profit of $685., S25 was made by Nc.
Curdy's son in law, Thebaud, on sales
and commissions. The Mutual paid
1892, 800 to the Republican campaign
fund. McCurdy was member of the
firm of Charles H. Raymond Il Co.,
who, as chief agents of the Mutual.
drew enormous profits on commission.
United States Senator L. q. Platt
admitted that the Equitable had paid
him $4,000 a year regularly for the
State campaign funds He also ad
mitted getting campaign funds from
the Mutual and New York Life in stag
70 cling amounts. He frankly said tina