Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-10-25
Mutual Union Pays HeaV-
igfor Favorable Reports.
Thousands for Advertising In
Papers and Magazines.
Interesting Testimony From Other Compan.
les at the Investigation.

New York, Oct. 24.-At the session,
today, of the legislative committee in
vestigating the life insurance compan-
les, the affairs of the Mutual Life In
surance Co. were under consideration
and it was brought out that this COM
pany 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 a witness. He Is
large number Of things, but month
ago was given the task Of sending out
these reports. Mr.. Smith had vised a
number of vouchers for payments on
account of this work. These aggre-
gated 81 900 with more bills to come In.
He thought the amount to date would
reach $4,000.
Mr.. Smith wrote the reports and
submitted them to Allan Forman, who
owns the Telegraphic News Bureau.
and to which concern 81 a line was paid
by the Mutual Life for the service.
Clippings from various papers
throughout the country were shown to
the witness and identified as the des-
patches he wrote and sent to Mr.. For
papers, but Mr.. Smith did not know
whether the papers were paid for in
serting them. In one despatch, Mr..
Smith wrote that Mr.. McCurdy's atti-
tude on the stand made a distinctly
favorable impression and for this he
had to pay 81 a line. This he said was
worth it.
Walter Sullivan, who has charge OF
the magazine advertising department.
next was called. He said the Mutual
advertised in IL magazines. last year,
at q cost Of $4,000. Advertising in in
surance papers cost about $50, 900 moro.
but he could not tell where the rest Of
the s329797 charged up to advertising,
last year, was spent.
Earlier in the day, Emory McClin-
took. the actuary of the Mutual Life,
was Oh the stand. The entire morning
session was given over to his explana-
tons of the technical points OF insur-
ance. Mr. McCIintock advocated no
laws practically for the insurance com
panies beyond a certain supervision to
give the reports publicity. He thought
the public could take care Of them
selves and that publicity was the best
law. Asked how far this view was
shared in official circles, he thought he
was somewhat Of q missionary along
that line.
Mr.. McClintock was to have been on
the stand again, in the afternoon. but
during the recess he was seized with
slight attack Of vertigo. He will be
called again. tomorrow.
John r. Hegeman, president Of the
Metropolitan Life Insurance Co, was
examined and when the adjournment
was taken, this afternoon. he was still
on the stand with his testimony unffn-
ished. 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 in
teresting, especially his statement that
$4,000 was given to the industrial
of his company, last
year, without any obligation whatever.
Mr.. Hegeman further said that. In
eight years, his company had volun-
tarily given to the policyholders $S000,-
900. This was in extended insurance,
dividends and liberalized pol
icies during epidemics, floods and fires.
1t was brought out that. while the
carried collateral loans
the year. none appeared iE
the annual report. Dec. 81. This was
explained by the witness, who said
that all collateral loans were transfer
red on the last day Of the year to Yer
milye & Co., the bankers, under an
agreement and were bought back again
in January. This was done, according
to the witness. to avoid the horde OF
for call loans which would
have come from the Wall Street dis
trict had the Metropolitan appeared as
4 lending company. Mr.. Hegeman did
not encourage the call loan business
from this section because 1t entailed
keeping a ticker in his Office and he
would not have one there.
Large loans at such low rate Of in
terest as 1ts per cent, especially one to
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