The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-10-25
Mutual Life President
Paid Press Agents For
tune for "WhiteWash.
SOUTHERN PAPERS
AMONG THE VICTIMS
Rosy Matter Exploiting a Sound
Status Of the Company Cost
$1.oo Line, But He
Thought His Con-
duct Worth
5000.
(Ry Associated Press.l

(By Associated Press.)
NEW YORK, October 24.--At the scs-
sion to-day OF the legislative committee,
Investigating the insurance companies,
the affairs of the Mutual Life Insurance
Company were under consideration. and
IT was brought out that this company
was paying for the dissemination
throughout the country of reports OF
this investigation that were favorable
TO the company. Charles J. Smith, a
newspaper man, was the witness. lie is
employed by the Mutual Life Insurance
Company to do large number OF things,
but month ago was placed In charge
OF sending out these reports. Mr.. Smith
had vised a number of vouchers for
the payment for this work and these ag-
gregated $1,000 with other bills to come
In. He thought that the amount to date
would reach $4,000.
Served 100 Papers.
Mr.. Smith wrote these reports and sub
n1Itted them TO Allan Forman, who owns
the Telegraphic News Bureau. and 81 a
line was paid by the Mutual Life for the
service. Clippings from various papers
about the country, including the Boston
Herald, Forida Times-Union and Al
:anta Constitution, were shown TO the
witness and Identified as the dispatches
he wrote and sent to Mr.. Forlnan. These
were sent to about 100 papers, but Nr.
Smith did not know whether the papers
were paid for inserting them. In one dis
patch MIR. Smith wrote that Mr.. Nc
oS An n 10
tinctly favorable Impression, and for this
nc had to pay Sc per line. This he
said, was worth It.
$32o,7e7 for Publicity.
Following Mr.. Smith. Walter Sullivan,
who has charge Of the magazine ad-
vertisinS department, was called. He
snid the Mutual advertised in twelve
magazines last year at II cost OF $1,000
Advertising in insurance papers cost
about 10000 more, but he could not tell
where the remainder of the account of
G29,70l. the amount charged up to ad-
vertislng last year. was spent.
Earlier in the day Emory McClintock
the actuary of the Mutual Life was on
the stand The entire carly session OF
the day before recess was given over to
ills exclamation Of technical insurance
: Mr.. ArClintock practically advocated no
laws for the insurance companies. ex-
cept a certain supervision to give the
reports publicity. He thought the public
could take care Of themselves and that
publicity was the best law. Asked how
far this View was shared III official cir
cles. he thought he was somewhat of
missionary along TINT line
Witness Taken III.
Mr.. AIcCllntock was. to have been on
the stand in the afternoon session but
during recess he3was seized with slight
attack Of vertigo, to which he Is sub
feet. He will be called again. to-mor-
row. John r. Hegeman, President Of the
Metropolitan Thfc Insurance Company.
was examined and when adjournment
+ was taken this afternoon. his testimony
we ,,nn-rhed
While lacking the startling features OF
the testimony OF the other life insur-
ance presidents which has testified, Mr.
Hegeman's remarks as explanations were
none the less interesting. especially his
statement that sS76..CO0 was given to the
Industrial policyholders OF his company
last year without any obligation what
ever. Mr. IIegeman further said that In
eight years his company had voluntarily
given to the policyholders sscoo'op. This
was in extended insurance. mortuury
dividends and libernlizcd policies during
epidemics, floods and fires
Call Loan Business.
" was brought out that while the com
many carried collateral loans through
out the year. none appeared in the am
nual report OF December 3lst. This was
explained by the witness, who said that
all collateral loans were transferred on
The last day of the year to Vermilye and
Company. the bankers, under an agree
ment, and were bought back again In
January. This was DONE according to
the witness, to avoid the horde OF an-
plications for call loans from the Wall
Street district. Mr.. Hcgcman did not
encourage the call loan business for this
section because 1t cntnilcd keeping
ticker in his Office. and he would not
have one there. He further did not
care TO have his company known ms.
loaning company.
The large loans at such a low Interest
ms one and onc-half per cent, especially
he ounttn President Iohn A. N"iafhn nf
the New York Life Insurance Company,
We're taken UP, and Mr., liegeman spoke
strongly Of his friendship for Mccall,
VINO he said, was closer than any other
man 70 him In insurance. outside Of his
Immediate associates Mr.. Mccall had
rendered him valuable service that was
or benefit 70 the company, and personally
nc thought tie company could afford, ana
would nave been justified In paying Mr.
Mccall the few hundred dollars the loans
amounted to. The same was true, he
said or Sllas B. butcher a dIrcctor of