The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-25
INSURANCE COMMITTEE
AGAIN DOING BUSINESS
Actuary MCCIintoCk Gives the Reason for Reduc-
ton of Dividends.
Publicity Bureau Of the Mutual Life and the Sums Expended
so the People May KnOW"-MerOpOltan
Company Being investigated.
LEW YORK. oct. 24.-At the

M EW YORK. oct. 24.-At the session
" of the legislative committee in
vestigating the insurance COM
panies the affairs of the Mutual were
under consideration. and it was brought
out that this company was paying for
the dissemination throughout the coun-
Try of reports of this investigation that
were favorable TO the company
Charles J, Smith, a newspaper man,
was the witness, He is employed by
the Mutual to do a large number of
things, but a month ago was placed in
charge of sending out these reports.
Mr.. Smith had q number of vouchers
for the payment OF this work and these
aggregated $4,000 with more bills to
come in.
} Boosts for the Mutual.
Mr.. Smith wrote these reports and
\ submitted them TO Allen Foreman. who
owns the TelegraphiC News Bureau
and 81 a line was paid by the Mutual
Life for the service.
These dispatches were sent 10 about
100 papers but Mr.. Smith did not know
whether the papers were paid for in
sorting them. In one dispatch Mr.
N'iiAili NIOlb Lnal Mf. MCg uIQE al
titude on the stand made a distinctly
favorable impression. and for this he
had TO pay s. Il line. This, he said
was worth il.
Following Mr. Smith, Walter Sulli-
van, who has charge Of the magazine
advertising department, was called. He
said the Mutual advertised IN twelve
magazines last year at a cost of about
$4,000. Advertising in insurance pa
81 81 Onn L.
Cculd not tell where the remainder Of
the account Of $S2S, 600, the amount
charged up to advertising last year,
was spent
mcclintock Became llI.
Earlier in the day Emory McCliu-
took, the actuary of the Mutual Life,
was on the stand. Mr.. McClintock
practically advocated no laws for the
Insurance companies, except a certain
supervision to give the reports public
tty He thought the public could take
care OF themselves and that publicity
was the best law. Asked how far this
view was shared ia official circles, he
thought he was somewhat Of a mission
AIRY along that line Mr.. McCiintOck
was 10 have been on the stand again
in the afternoon session, but during
the recess he Was seized with d slight
~AANfiNh VI NAtlEtf 10 WHICH itE u SUD
Ject He viii be called again tomor-
row.
Iegeman Of the Metropolitan.
John r. Hegeman, president of the
Metropolitan Life Insurance company,
was examined. When the Adjournment
was taken this afternoon his testimony
was unfinished
While lacking the startling features
of -. NayH s,n. -
life insurance presidents, Mr.. Hege-
mans remarks and explanations were
none the less interesting. especially his
statement that ,000 was given to
the industrial pOlicy-hOlders of his
company last year without any Obliga-
zion whatever.
Loans Transferred.
Il was brought out that while the
1eumpany carried collateral loans
throughout the year, none appeared in
the annual report on Dec. 81. This was
explained by the witness. who said that
all collateral loans were transferred on
the last day of the year TO Vermilye &
Co, the bankers, under an agreement,
and we're bought back i'm January. This
was done to avoid the horde of appli-
cations for call loans from the Wall
street district. Mr.. Hegeman did not
encourage the tttl lOdl buSlHGsS from
this section because it entailed keep
ing a ticker in his office, and he would
not have one there. He further did
not care to have his company known
as a lOaning company.
Mccall His Friend.
The large loans at such low interest
as ~ per cent, especially the one TO
President Mccall OF the New York
Life, were taken mp, and Mr.. Hegeman
spoke strongly of his friendship FOR
Mccall, who, he said, was closed than
any other man to him in the insurance
business, outside of his immediate as
sociates, Mr.. Mccall had rendered him
valuable service that was of benefit To
the company ana personally he
thought the company could afford aud
would have been justified in paying
Mr.. Mccall "a few hundred dollars
which the loans amounted TO. The same
was true, he said, of Silas 4. butcher,
a director OF the company who also
carried large loans with the company
at low interest.