Los Angeles herald., 1909-03-06
BIG LAWSUITS
ARE ADJUSTED
MUTUAL LIFE TAKES ADVICE
OF J. H. CH0ATE
CLAIMS AeeREcATlNe 100000
ARE SETTLED
Present Head of Insurance Company
Announces Final Agreement Is
Reached = Corporation
Gets $s75,ooo
lBy Associated Press.l


NEW YORK, March 5.-President
Charles A. Peabody of the Mutual Life
Insurance company which has settled
suits aggregating nearly S6,00O,O 600
brought against its former president,
Richard A. McCurdy, and others, makes
the following statement with reference
sto the settlement:
proposals looking to the adjustment
of litigations pending against the Mu-
tual Life Insurance company and GER
tain of its former officers have been
under negotiation for several months
"They were referred by the board of
trustees to a committee which carefully
examined the situation and decided
that in the situation and condition 1t
would be wise to settle the controversy
on the terms decided.
"This decision of the committee was
approved by Joseph H. Choate, the
company's special counsel in the litiga-
ton and by James McKeen, general
counsel of the company, and was duly
reported to the board and approved.
"The result of the settlement is that
all of the claims in dispute by and
against the company have been settled
and released, and the company has re-
ceiyed the equivalent in value of the
sum of $4,000"
II is understood that $S15,00O, which
the Mutual has accepted, was paid in
cash to the extent of $7500O0. The
balance was represented by a claim
against the company for supplies deliv-
cred to 1t amounting to trife over
$65, 900.
The company acknowledged this as a
valid claim and only held up it's pay
ment on account of counter claims
against those TO whom 1t was due.
Some Of the Suits
The suits included actions against
former President McCurdy. his son.
Robert II. McCurdy, son-in-law, Louis
who, with Thebaud, formed the firm of
Charles II. Raymond e. Co, metro
politan agents for the Mutual.
Actions also were begun against vice
presidents under the old regime, Robert
A. Grannis and DR.. Walter r. Gillette
and l.. w. Lawrence, the stationer who
for long years supplied the company
with stationery and supplies.
The members Of the committee on
former presidents were also sued,
action being taken against Robert Oily
phant, James c. Holden, Charles f..
Miller and the executrlx of Jacob Ho-
bart Herrick.
The suits were brought for the re-
covery of moneys alleged to have been
obtained improperly by the defendants
or improperly expended by them. The
largest of the claims against any one
individual were those against Mr.. Nc
eCurdy from whom the Mutual sought
to collect $3,371,341.
This included claims for additional
salary of $4,000 a year paid to the
president for 1901 to 1905 with the
knowledge. 1t is alleged. of only two of
the trustees of the company.
Joseph III. Choate, who has approved
the settlement, was retained in 1906 as
the special counsel for the Truesda.e
committee, upon whose report these
suits were begun. This committee was
named by trustees of the Mutual in
October, 1905, following the investiga-
ton by the Armstrong committee. 1t
consisted of w. II. Truesdale, president
of the Delaware, Lackawanna & West
ern; Effingham B. Morris. president of
the Girard Trust company of Philadel-
phia, and Joseph W. Auchinclos.
Stuyvesant Fish, then president of
the Illinois Central, was added to the
committee later, but he resigned in
February, 1906. before the filing of the
committees final report, as did Mr..
Morris.