The Montgomery advertiser., 1905-11-11

pla1ut was that ne was not pau chouS ' | for his work. This. too, was the com plaint on the witness stand of Charles | F. Smith, who also does writing for the Mutual Life and receives ss.ooo year for it.
 | MT. Howard said he had been employ | ed thirty or forty years by the Mutual | Life but the vouchers went back only | to 1899. There were ten of these vouch- CTS. aggregating $16.625. Mir. Howard | denied that he had ever sent any dis- | patches by wire and was very strenu- ous in his assertion that he had never written d line about insurance for any paper on which he was employed, char acterizing 1t as dirty trick" William Barnes. ST.. formerly of AL bany. who now resides at Nantucket. appeared before the committee at his own request and was the first witness of the day. MT. Barnes appeared in the investigation several weeks ago. when vouchers were presented Tor ie. gal services. MT. Barnes expiaiheo his connection with the insurance com panfes. answered the questions put to him. and when his examination had been concluded, asked to be allowed to make a statement He was given the privilege and had proceeded but A little way when he was stopped by senator Armstrong, because MT. Barnes's statement was an argument Tn defense of insurance companies along the lines brought out in the investiga- tfon. . After Mir. Creig completed his de- scription of the various classes of pol icies issued by his company he gave way to President John R Hegeman or the same company.
 Testimony of Hegeman
 Letters of complaints that poicies were paid to undertakers by lndustFiai companies were read to MT. Heseman and he said he could not say that ms company had ever made such payment. Other letters complaining of bad treat ment and alleging false statements on the part of agents were read ana iet- ters to the company with replies iron the company's counsel were also reao. MT. Hegeman could not give the m formation desired and asked to take the letters that he might LOOK up the action taken at the home office. MT, Hegeman said his company had made but two campaign contributions and they were both In 1896. One thou sand dollars was given to the Palmer and Buckner Gold Democratic man agers and $7,5o0 to the National Re- publican Committee. These contripu- tions, MT. Hegeman said. were made with the approval of the Finance Board and were more a moral than a political move to assist in defeating the "16 to 1 heresy."
 His company, Mir. Hegeman said, had paid money to Andrew Hamilton. A statement was produced showing that Andrew Hamilton had been under an annual retainer of $1.000 from May IS, 1892 and from that date to May 5, 1904, had received for special services and retainers, the aggregate sum of S35295. MT. Hamilton worked In number of States and his duties were similar to those he pursued for the oth- CT insurance companies. No other per sons were paid for any work in con- nection with matters of litigation be- yond Mir Hamilton end those he re- tained. said MT. Hegeman.
 Agents Are Bonded.
 MT. Hegeman said the Metropolitan Life Insurance Company obtained bonds for it's agents from either the Ameri- can Surety Company or the National Surety Company. Mir. Hegeman holds ten shares of the National. The bond required of agents is s5.o0o and the premium is recovered from the agent of the company. Witness did not know the premium.
 The subject of loans was taken up. It was shown that the Metropolitan Life made loans of sloO,ooo to SZ0o:Ooo at 1-2 per cent. interest to William Reade of the firm of Vermilye & Co. on various dates from 1901 to 1903. The market rate for call loans was at the time from 1-2 per cent. to per cent. Vermilye & Go. were the bankers of the Metropolitan at that time and when Mr. Reade resigned from Yer milye & Go. and went into business for himself he became the company's banker.
 MT. Hegeman's explanation for mak- ing these loans below the market rate was the same he had given for making the loans to John A. Mccall, President of the New York Life at the same low rate--that is, that valuable services had been rendered the company and 1t sought to repay favors where it could.
 Has Millions to Good.
 Mir. Hegeman said that through the watchfulness of Vermilye & Co. the Metropolitan Life Insurance Company has now three or four millions which "could be burned up without impair ing the solvency of the company"
 On bonds and stocks the Metropoli- tan has cleared, according to Mir Hege- man, about S1.200, 900 and on syndicates Into which vermilye & Co. invited the company to participate, the company has made about $65,000.
 In describing the investments of the company. Mir. Hegeman said that the Metropolitan Life Insurance Company owned 6,267 out of ten thousand shares of the National Shoe and Leather Bank of this city. No dividends were paid as the bank is accommodating It's sur plus
 Witness detailed the organization of the Metropolitan Bank and said the ohicers and clerks of the company were stockholders. It was organized five or six months ago, so has not yet paid a dividend. It twas organized with the expectation that it would handle the checks of the Metropolitan Life, of which there are several thousand a day at times; further, In order that the company might have a profitable tenant in its new building and be- cause 1t was thought an admirable To- cation for a bank. The Metropolitan Life owns about 40 per cent. of the