Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1905-10-25

s. PER Line
FOR REPORT
News Bureau Employed to
Publish Favorable Accounts
COMES OUT IN INVESTIGATION
OF ADVERTISING ACCOUNT
Famous Actuary Saws There Should
Be No Restrictive Laws But Ad.
mitS His Ideas Are
Not Popular,

New York, oct 24.-At the session
today Of the legislative committee in
vestigating the Insurance companies,
the affairs of the Mutual Life Insur
ance company were under considera-
ton and it was brought out that this
company was paying for the dissent
nation throughout the country Of rep
reservations of this investigation that
were favorable to the company
Charles ]. Smith, a newspaper man
was the witness. He is employed by
the Mutual Life Insurance company to
do a large number of things, but a
month ago was placed i'm charge Of
sending out these reports. Mr.. Smith
had vised a number of vouchers for
the payment of this work and those
aggregated $4,000 with more bills to
come i'm.
He though the amount TO date
would reach $4,000. Mr.. Smith wrote
these reports and submitted them to
Allan Formgn, who owns telegraph
ic news bureau. and 81 a line was paid
by the Mutual Life for the service. Cir
pings from various papers about the
country were shown to the witness
md identified as the dispatches he
wrote and sent to Mr.. Formau. These
were sent to about one hundred pa
per5 but Mr.. Smith aid not know
whether the papers were paid for in
serting them. In one dispatch Mr..
Smith wrote that Mr.. MCCurdYS atti-
tudc on the stand made distinctly
favorable impression ard for this hc
had to pay 81 Il line. This Inc said was
worth il.
Following Mr. smith. Walter Suli-
van who has charge of the magazine
advertising department was called.
He said the Mutual advertised in
twelve magazines last year at a cost
of $4,000 Advertising In Insurance
papers cost about $4,000 more, but
he could not tell whore the remainder
Of the account of $328,797, the amount
charged up to Advertising last year
was spent
No Laws Needed.
Earlier In the day Emory McClin-
took, actuary of the Mutual Life, was
on the stand The entire early session
of the day before recess was given
over to his explanations If technical
insurance. Mr.. McClintock PRACTICAL
ly advocated no laws for the insurance
companies except certain supervision
to give the reports publicity He
thought the pubic could take care
Of themselves, and that publicity WAS
the best law Asked how far this view
was shared i'm official circles. he s1id
he thought he was somewhat of
missionary along that line
Mr. McClntock was to have been
on the stand again in the afternoon
session but during recess he was sei2-
ed with a slight attack Of vegtigo TO
which he is subject. He will be call
ed again tomorrow.
John r. Hegeman. president OF the
Metropolitan Life Insurance company
was examined and when the adjourn
ment was taken this afternoon his tes-
timouy was unfinished.
Metropolitan ON the Table.
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 inter-
esting, especially his statements that
SS760 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 volun-
tnrily given to policy holders $4,000
600 This was in extended insurance
mortuary dividends and liberalized
policies during epidemics, floods and
fires
It 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 first day Of the year
to Vermilye & Co.. bankers, under an
agreement. and were brought back
again in January. This was done, ac-
cordlng 20 the witness, TO avoid the
horde of applications for call loans
from the Wall street district.
Mr.. Hegeman did not encourage the
call loan business from this section
because it entailcd keeping a ticker in
his office and he would not have one
lthere lie further did not care to
have his company known as a loaning
Icampany.
The large loans at sucn n low inter-
osttas "a per cent. especially the one
10 President John A. Mccall. Of tho
Newt York Life Insurance company,
lyerd taken up and Mr. Hegeman
Smoke strongly of his friendship for
| lMcCan. who he said was closer than
Iany other man 10 him In the insur-
lanct business. outside Of his immedi-
late associates. Mr.. Mccall had ren-
ldered him valuable senvice that was
| Iof benefit TO his company and to him
personally and he thought the eom-
many could afford. and would have
been justified. in paying Mr. Mccall
the few hundreds of dollars the loans
amounted to. The same was true,
he said. of Sias 3. butcher, a direc-
tor of the company, who carried large
hnans with the company at low Inter-
est.
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