The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-11-14
MUTUAL L|FE'S
MYSTERYHOUSE
AT THE CAPITAL
Subject of Inquiry, But
no Attempt was Made
by Committee to Probe
Any of the Scandals.
President oftne Company
is rot Compelled to
Give Secret Details OF
a Deal in Securities.

NV SSS' ~ SsSS ~
a Deal in Securities.
New York, Nov. 9.--The mysterious
house maintained at Albany by the
Mutual Life Insurance Co., about
which SO much has been said since
the insurance investigation began, was
the subject Of inquiry on the part of
the chief inquisitor, Charles e.
Hughes, shortly before the close of
the committees session today. N. e.
Melaney, caretaker of the house was
called to the stand. His testimony
was not sensational and Mr.. Hughes
made no attempt to probe into any Of
the reported scandals in connection
with the house, allowing Melaney to
retire for the time being after very
brief examination. The rest of the
day was devoted to an investigation
Of the affairs Of the Metropolitan Life
Insurance Co. John II. Hegeman,
president of the company and James
M. Craig, its actuary were on the
stand the greater part or the day.
One Of the unusual features Of the
days proceedings was the request
made by Mr.. Hegeman not to be COM
PEELED to give the names of parties
who had guaranteed to his company
to make a certain price at which se-
curities were quoted by the company
in its annual report to the state in
surance department; not to tell the
consideration which led the guaran-
tors to make their agreement, but
promising to tell these facts to the
committee privately. His request for
secrecy was approved by the commit
tee.
This deal related to securities OF
the Pope Manufacturing Co., of which
the Metropolitan held $250,000, face
T value securities. These securities
were quoted In the annual report at
90. Mr.. Hughes brought out that
the market value on the day the re-
port was sworn TO was about 15. Mr..
Hegeman replied that the securities
were quoted at the figures given, be-
cause they really represented that
sum to the company, inasmuch as it
had been protected by guarantee
TO take securities off the company's
hands at the figure quoted. When
asked to give the names of the guar
antors and tell the consideration of
the guarantee he begged that the mat
ter should not be made public. He de-
clared that the guarantee has since
been fulfilled and the company has
secured the money for the securities
at the price quoted in the report.
Great interest was shown by the
spectators when M. Z. Melany, the
caretaker of the Albany house OF the
Mutual was called to the stand He
stated that he had been employed by
A. G. Fields, who has been referred
to as one Of the representatives OF
the Mutual kept at Albany. to watch
legislative matters. He had not seen
Fields for two months, though. His
salary since he saw Fields has been
paid by Mr.. Carpenter.
Mr.. Hughes questioned Melany
about money paid to him and the ma
ture of his duties. Melany said he
often Travelled between New York and
Albany for Fields but could not re-
member any other travelling he had
done for the Mutual. Mr.. Hughes then
produced O voucher made out to Me-
lany by the Mutual for $3.50, and
charged to travelling expenses. The
, witness could not remember just what
he had done in return for this sum
paid him.
Mr.. Beck, attorney for the Mutual
asked the witness IL he had not often
bought railroad tickets for Mr.. Fields,
to explain this entry in the books,
and Melany answered yes"
Mr.. Hughes followed up the open
ing, however and made Melany state
that Fields had not been in Albany
but a very small portion of the time
before the voucher for the $3.50 was
paid him.
y After drawing from the witness that
he was not a lawyer and had never
done any legal work for the Mutual,
Mr.. Hughes produced several vouch'
0rs paid to Melany which were charg-
cd ON the books to-"legal services.
Mr. Hughes produced vouchers dated
from March z. 1900 to March 4. 1905,
which aggregated over $500 drown
in favor OF Melany, which were charg'
ed either to legal expenses" OF
"sundries" The witness could not
explain why the items we're charged
as they were.
Mr.. Hughes asked the witness who
had been residents at the Albany
house during the time he has been
caretaker, It has been charged that
some members of the legislature had
lived in the house. Melany did not
confirm these reports however. He