The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-04-18
State Superintendent Finds
That Money Was Lost in
McCurdy Settlements.
POLICYH0LDERS OBTAIN
INCREASE IN DIVIDENDS
Vast Sums Expended in Irregu-
lar Manner, but Better Sys-
TEN Now Prevails.

NEW YORK. April 1.-THE first in
Vestigation Of the Mutual Life Insurance
company. undertaken by the state since
Governor Hughes uncovered the scan
dals OF 1905. has been completed by su-
perntendent OF Insurance HotchkIss and
develops these facts
First-The final efforts OF the new
management TO recover Sc, 600 from
the late President Richard A. AIcCurdy
and his associates OF the old manage
ment, resulted in net outso of s22I,-
3fs more than the company received from
the McCurdys
Second-Since the Armstrong law went
into effect the Mutual expense OF main
tenance and administration have dropped
from 16,720,a01 I'm 1904 the year before
the Armstrong investigation. to s7.451.-
| iS6 in 1908, while the volume OF bust
ness remained about the same.
commati nn,sd-As S. late ag 1906 agents OF the
In the interests OF directors seeking re-
election. although the report does not
charge this was done at the instigation
oi The directors themselves or with their
conniVance. For these electioneering
services. agents OF the company received
in 1905; sl6S.35i OF policyholders' moneys.
Fourth-As late as 1905 payments To
agents aggregated S35i,19t. which did
not appear on the books OF the company
as bonuses for getting new business. bat
inent TO be such. paid In violation OF the
Armstrong law were traced to the Bos-
ton office. There is no record OF them
In The home Office. In Boston they are
charged TO Supervision OF old business"
| which is 10 say, TO prevent the lansing
of old policies.
Untrue and Deceptive.
Superintendent Hotchkiss character
| ICES the report submitted by the com
penys committee. which recommended
| the acCentanCe q the pT0p,icp yytfh
the McCurdys as "untrur in at least
two particulars and deceptive in one
ttnued. either the committee did not
know the facts or purposely misled the
| board of directors"
Nevertheless. il Is said, the report on
| the whole Is complimentary TO the COM
| pany. The examiners find the "com-
pany has complied I'm the main with the
insurance g,yo9a law as amended by the Arm
| The examiners believe the expenditure
Of tho policyholders' money for cues
tionable purposes has been definitely
The examiners state" saws the re-
port, proper restraints have been placed
by the company upon the supply de-
partment where expenditures for leg
islative and other improper purposes
were concealed by tho previous manage
mcnts and the system at present will
prevent The recurrence OF such prac-
Dividends Much Larger
Returns 10 polcyholders have been In
creased correspondence. Dividends paid
IN aoo 1904 an amo,,nted to S2,SN.2O6, and in
1908 TO SS3.3ll.255. Tho report explains.
however. one reason for this significant
increase was that many deferred divi-
dend policies maturcd during the years
of the Mutual Life Insurance company.
when asked to comment upon the re-
port. said:
'.The only subject in the report Of the
examiner OF Tba peuDiriDr$
comment is that relating TO settlement
OF the compauys claims against former
officers Of the company.
The proposals OF settlement were re-
ferrcd by the board of truStetcs 10 COM
mittee OF trustees consisting OF Benja-
min f. Tracy, lawyer: Edwin S, Mars
Trust company: II. Eicman Duval. pres
ident OF tho American Beet Sugar com
panv. IT,. W Taft OF Strong & Cadvall-
adcr and +. II. Eaton. president OF The
American Car and Foundry company
None Of this committee was connected
with the company during the period in
which these claims arose.
Question of Integrity.
This committee acted under the sd-
vice and approval of Mcssrs. Joseph
Cboatc and James McKean. the com
pany's counsel having the matter in
charge They held meetings extending
over three weeks examined facts and cir
cumstanCcs. upon which the claims OF
the company were based aud made re-
port 10 tDc lrnStetsS recommending set
Elements which was afterward made.
The examiner Of the Insurance depart
ment has reached different conclusion
OF the same facts and circumstances.
Whether these seven gentlemen acted
wisely In their conclusion or. stated
I'm the report. did not understand the sub
ject, or 'purposely misled the board Of
trustetes.' 7 leave the policyholders. to
whom we are accountable. 10 judge.
The comparing OF their judgment and
Integrity with that of examiner OF the
1pDgrimCnl. presents a. question which [
do not care TO discuss.