Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1905-10-31
PRESS AGENT FOR
MUTUAL ON STAND
J. ]. SMITH PAID TO COUNTER
ACT INJURY DONE BY
STORIES.
COMPANY PAYS WELL
FOR GOOD NOTICES
Actuary Supports Statement of Nc
Call Concerning Causes of Failures
of Insurance Concerns in New York
State in Former Days.

New York, Oct. 25.-Charles ],
Smith, who said he was press agent
in the employ of the Mutual Life In
surance company, testified before the
legislative life insurance investigating
committee Tuesday that his duties
were to counterfeit the injury done to
the Mutual Life Insurance company by
the publication of news stories. He
said his salary is $4,000, and that he
paid one dollar a line for dispatches
sent by the Geographic news bureau.
He showed clipping from the Will
mington Del.) News of dispatch
which he had sent out which he said
cost the Mutual Life Insurance COM
pany $4,000 to disseminate. 1t dealt
with the testimony of Frederick Crom-
Well, treasurer of the Mutual Life, be-
fore the investigating COMMITTEES.
Actuary on the Stand.
Emory McClintock, actuary of the
Mutual Life, was the first witness be-
fore the investigating committee when
that body reconvened Mr.. McKeen,
of counsel to the committee, who has
made study of the technical points
OF life insurance, conducted the exam
nation of Mr.. McClintock.
The witness said he had been an
actuary of various companies since
1868. He became actuary of the Mu-
tual Life in 1889. He was president
of the Actuarial Society of America
from 1895 to 1887, and has been a
fellow of the Institute of Actuaries OF
Great Britain since 1874.
Backs Up McCall's Testimony.
Mr.. McClintock reported the state
ment made on the stand by John A..
Mccall, president of the New York
Life Insurance company, IS to the
causes leading to the many failures
during the early days of insurance in
this state. The companies failed, said
Mr. McClintock, because they had
nothing to support them but the cur
rent premiums.
The Metropolitan Life Insurance
company, the witness continued, was
on the verge of failure at one time
but managed to prosper by adopting
the Industrial plan OF insurance.
The three big companies, the Mu-
tual, Equitable and New York Life,
the witness said, were alive to COM
ply with the rules of the state insur-
ance department by reason of hav-
ing sufficient reserves. He thought
the reserve requirements of the New
York law IS it stood prevented the
formation Of many new companies.
Holds Publicity Best Law.
The law, he thought, was defective
In giving no leeway for the expense of
procuring new business
Mr.. McClintock said he favored hav-
Ing no law governing the reserve, but
such supervision as would verify the
statements made public. Publicity. he
said, was the best law, and he thought
the public would look after itself in
the way of its protection in these mat.
tiers. Asked how far his views in this
respect were shared by other officers
of insurance companies, Mr.. McClin-
took said he was somewhat Of mis-
sionary in this matter"
May Call Murphy.
There was a report Monday that
Charles F. Murphy and Senator Nc
Carren would be subpoenaed to tell
what they know of an effort on the
Fart Of the Mutual Life to unload the
water front properties composing the.
Brooklyn Wharf and Warehouse com
pany, upon the city at big price.
James McKeen, of counsel for the com
mittee, who was counsel for q trust
company which took block of the
warehouse bonds, and in position to
know inside facts of that venture, said
the only time he ever heard of
sale of the property to the
city was when Comptroller Coler was
urging his municipal ownership ideas.
MIR. Coler's argument was that as Man
haitian had been acquiring docks along
Goth the North and East rivers, and
operating them at profit, it should
Guy waterfront property in Brooklyn.
and take advantage of the troubles of
he warehouse company by getting a
great number of docks in one lump.
Mr. McKeen said be never heard Of