The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-10-27
HIS STATEMENTS CAUSED
THE COMMITTEE TO SMILE
Aetuary MccIintoek Admits That Law
Relating to Reserves Has Been
Habitually Violated.
PRESIDENT OF METROPOLITAN
is the Last Man to Be Placed on the
etidiron by Attorney
klugnes.

New York, Oct. 24.-Charles ]. Smith
acting press agent of the Mutual Lie
Insurance Co., admitted to the insur-
anco investigating committee this af|
ternoon tnat since the Mutual has been
on the rack he has sent out for the
company through news bureau stories
of the proceedings calculated to "coun-
teract the untavorable impression and
: injury to life insurance business by the
stories of the proceedings generally
published" These special notices. he
said, had been paid for by the company
at the rate of 81 a line. One notice
that was placed upon the record by Mr..
Hughes stated that Mr.. McCurdy had
taken the committee to task for con-
ducting an investigation in the nature.
of an inquisition, and concluded by say
Ing 'Mr McCurdy's testimony made a
distinctly favorable impression"
This line caused the spectators In
the council chamber to laugh, and the
daughter was not censured by Chair
man Armstrong.
,G This story was sent. he said, to IS
different papers and was run as reading
iismatter and not so. it w8uld look like
an advertisement. %
What salary do you receive for
!acounteracting the injury done to the
Insurance business, as you express it,
because of the publicity following the
Insurance investigation?" asked Mr..
.McKeen.
Eight thousand dollars year, and
/ am convinced that 1t ought to be
! more" replied Mr.. Smith
He says he had no further income
from the Mutual Life.
A dispatch sent to a Wilmington
G(Del) paper in behalf of the Mutual
& Life Insurance Co. was read by counsel
spnd q record of 1t obtained. 1t pur-
ported to be extracts of the testimony
+ Df Mr.. Cromwell, the Mutual treasurer,
In an effort to correct the popular i'm
preston created by metropolitan news
papers following Mr.. Cromwells testi-
mony on the witness stand. He said he
paid 81 line, and that it was only the
company's purpose to send out such
portions of the testimony as the press
association had neglected to send out.
He said II cost the Mutual $4,000 to
disseminate this news.
@ While recommending to the iegisla-
tive Investigation committee that the
present law of this state regulating the
amount of reserve required to be set
aside in the first year of life lnsur-
gRnce policy should Re changed, Emory
tMcCllntock, actuary for the Mutual
Life, today admitted that many of the
companies doing regular life insur-
ance business in this state habitually
syade the law and either don't put up
q reserve for the first years premiums
Or smaller one than the law requires.
Mr.. McClintock said that the present
law of this state requires a company to
put up reserve on the first years pre-
imium considerably larger than expert
ence warranted. Under Sprague's sys-
tenn of computing the proper reserve,
which has been adopted by many COM
panies, the amount set aside for the
FIRST year, he said. is much less than is
required by the law.
Gov. Higgins today emphatically as
serted that, in his opinion, no charges
had been filed against Superintendent
.Of Insurance Hendricks or Superintend-
ent of Banks Kilburn sufficient to war
rant their removal. Upon his return
TO Albany from Olean today, he told
the newspaper men that false i'm
preston might haze been gained from
,the manner In which certain things he
said In this connection while In New
York last Friday were reported,
:. John r. Hegsman, president of the
metropolitan Life Insurance Co., was
called to the witness stand late this
afternoon, and Counsel Hughes began
his inquiry into Metropolitan affairs.
Mr.. Hegeman was questioned about the
loan made by the Metropolitan to him
self and Silas B. butcher, a member of
.the finance committee of the Metropol-
ltan, as well as about loan from
The Metropolitan to John A. Mccall,
president of the New York Life, the
Existence of which was made known
IN the testimony brought out before
lhe committee some weeks ago.
Mr.. Hegeman said that all of the
collateral bonds were sold out to Ver-
nilye & Co. on the last day In Decem-
Der and were bought back on the I'd
pf January following, This transac-
hon. he said, was made for the sole
purpose of keeping record of these
loans out of the company's annual re-
port. in order that Wall street brok-
)rs should not get the impression that
lhe Metropolitan Life was In the busi-
hess of making call loans.
Mr.. Hughes read entries showing
hat the total amount loaned at any
inc time to Mr.. Hegeman was $4,000.
Dn this he paid III psr cent interest.