Los Angeles herald., 1905-11-11
INQUIRY
FRUITFUL
Interesting Light on
Metropolitan
Campaign Donations and
Loans to Friends
Examination Of President Hegeman
Brings Out Interesting Matter.
investigating Committee Has
Had a Good Week
BY Associated Press.

BY Associated Press.
NEW YORK, Nov. 10.--Closng the
sessions of the week today the Arm
strong committee of insurance investi-
cation has behind It a mass Of details
and figures which, while of apparently
little interest to the laity, Is Of inesti-
mabe value to the committee. The
greater part of the week has been de-
voted to the Metropolitan Life Insur-
ance company, the examinations of
President Hegeman and james M.
Craig, the actuary of the company,
being of most technical nature. When
adjournment was taken today the COM
mittee had not finished the examina-
tion of President Hegeman and he Will
be called again next week.
Just before the hour of adjournment
today Mr.. Hegeman was excused and
Joseph Howard, jr a writer who had
been employed by the Mutual Life,
was called to the stand He identified
vouchers that he had signed for money
received by writing advertisements
and reading notices for the Mutual
Life.
President John r. Hegeman of the
Metropolitan company was recalled.
Letters Of complaint that policies were
panies were read to Mr.. Hegeman, and
he said that he could not say that his
company had ever made such a pay
ment.
Mr.. 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.
ayers and $500 to the national Repub-
lipln Thncn
Mr.. 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."
A statement was produced showing
that Andrew Hamilton had been un-
der an annual retainer of $1,000 from
May 49, 1892, and from that date to
May 5, 1904, had received for special
services and retainers the aggregate
sum of $35,295.
Mr.. Hegeman said the Metropolitan
Life Insurance company obtained
bonds for it's agents from either the
American Surety company or the Ma
tional Surety company. Mr.. Hegeman
holds ten shares of the National. The
bond required of agents is $3.50 and
the premium is recovered from the
agent by the company
Loans at Small Rate
1t was shown that the Metropolitan
made loans of 100000 to 100000 at
Y per cent interest to William Reade
of the firm of Vermilye & Co. on vari-
Gus dates in 1901 to 1903. The market
rate for call loans was at the time
from Az to per cent. Vermilye &
Co. were the hackers of the Metro
politan at that time, and when Mr..
Reade resigned from Vermilye & Co.
and went into business for himself he
became the company's bankers. Mr..
Hegeman's explanations for making
these loans below the market rate was
that valuable services had been rem
dered the company and it sought to
repay favors where it could. Mr.. Hege-
man said that through the watchful-
ness of Vermilye e. Co. the Metropoli-
tan Life Insurance company has now
three or four millions which could be
burned up without impairing the SOL
Vency of the company"
On bonds and stocks the Metropoli-
tan has cleared, according to Mr.. Hege-
man, about S1,200000 and on syndi-
Gates In which Vermilye & Co. invited
the company to participate the COM
pany has made about $650,000.
In describing the investments of the
company Mr.. Hegeman said that the
Metropolitan Life Insurance company
owned 1927 out of 10000 shares of the
National Shoe and Leather bank of this
city. No dividends are paid as the
bank is accumulating it's surplus.