The citizen. [volume] (Berea, Ky.) 1899-1958, 1905-10-26
Mutual Life Pays For Sending
Out Favorable Reports
to the Press.
CHAS. J. SMITHRECElvEO STA, 900
He Wrote Reports and Submitted
Them TO Allan Forman, owner
Of Telegraphic News Bureau.
Clippings From Papers Throughout the
Country Were Shown To Witness
In the Legislative Investlea-
ton and Identified.

New York, oct. 25.-At the session
Tuesday OF the legislative committee
investigating Insurance companies, the
affairs Of the Mutual Life Insurance
Co. were under consideration and Il
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.
newspaper man. was the witness. He
is employed by the Mutual Life In
suranoe Co 10 do a large number OF
things. but a month ago was placed In
charge OF sending out these reports.
Mr. Smith had vised a number OF
vouchers for the payment OF this work.
and these aggregated $1,000 with
more bills TO come In. He thought the
amount 90 date would reach $4,000.
Mr. Smith wrote these reports and
submitted them TO Allan Forman. who
owns the Telegraphic News Bureau,
and 81 line was paid by the Mutual
life for the service. Clippings from
various papers about the country we're
shown 10 the witness and Identified as
the dispatches he wrote and sent 70
Mr.. FOrman These were sent TO
about 100 papers. but Mr. Smith did
not know whether the papers we're
paid for inserting them.
In one dispatch Mr. Smith wrote
that SIR McCurdy's attitude on the
stand made a distinctly favorable i'm
preston. and for this he had TO pay
81 a line. This he said was worth H.
Magazine Advertisements.
Following Mr. Smith. Walter sulI.
van. who has charge OF the magazine
advertising department. was called He
said the Mutual advertised In ~ mag
azlnes last year az a cost Of s42 600.
Advertising in insurance papers cost
about $4,000 more but he could not
tell where the remainder OF the ac-
count OF S229.797. the amount charged
up 90 advertising last year. was spent
Earlier In the day Emory McClln-
took, the acutary OF the Mutual Life
was on the stand The entire early
session OF the day before recess was
given over 10 his explanations Of tech
meal Insurance. Mr.. McChntock prac-
tically advocated no laws for the in
surance companies except a certain
supervision TO give the reports public
ity. lie thought the public could take
care OF themselves and that publicity
was the best law. Asked how far this
view was shared in Official circles. he
thought he was somewhat OF mis-
slonary along that line
John r. Hegcman. president OF the
Metropolitan Life Insurance Co. was
examined and when the adjournment
was taken In the afternoon his testi-
mony was unfinished While lacking
the startling features Of the testimony
OF some Of the other life insurance
presidents who have testified. Mr..
Hegeman's remarks and explanations
were none the less interesting. espe-
cially his statement that 1916 900 was
given to the industrial policy holders
Of his company last year without any
Obligation whatever Mr.. Hegeman
further said that In eight years his
company had voluntarily given to the
policy holders S600O.O00. This was IN
extended insurance, mortuary dlvi.
dends and liberallzed policies during
epidemics. floods and fires.
Il was brought out that, while the
company carried collateral loans
throughout the year. none appeared
In the annual report on December 81.
This was explained by the witness,
who said that all collateral loans were
transferred on the last day OF the year
TO Nermilye & Co.. the bankers. under
an agreement and were bought back
again in January. This was done &C.
cording TO witness to avoid the horde
Of applications for call loans from
the wall street district
Nrt 49,, r-,,-- $500.