Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1905-12-02
AT 50 MUCH PER line BIG GUNS ON HILLS
INSURANCE lSYiS' IGAT,ON
SHOWS NEWS PURCHASE
ALLAN FoRMAN WAS PADDING.
CLINTock'S OPINIONS ON IN.
VEMENT-LOANS NOT
IN THE REPORTS,


New York, oct. 2i--At today's SEES
sion of the legislative commission in
yestigating the insurance companies
the affairs of the Mutual were under
consideration and It was brought ont
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 to do large number of
things. but a month ago was placed in
charge Of sending out these reports &.
smith had viscd number of vouchers
,or the payment OF this work and these
aggregated $1,000, with more bills to
come in.
Smith wrote these reports and sub.
mitted them to Allen Foreman. who
owns the Photographic News Bureau
and 81 n line was paid by the Mutual
Life for the service.
These dispatches were sent to about
100 papers, but Smith did not know
whether the papers were paid for in
sorting them. In one dispatch Smith
wrote that McCurdys attitude on the
stand made a distinctly favorable i'm
preston, and for this he had to pay
80 a line. This. he said, was worth 1t
Following Smith, Walter Sullivan
who has charge of the magazine ad
vertising department was called. lie
said the Mutual advertised in twelve
magazines last year at cost of about
s42 900. Advertising in insurance pa
pers cost about $4,000 more, but he
could not tell where the remainder OF
the account of s32S,OOO, the amount
charged to advertising last year, was
spent
McClintoek Favors Publicity.
Earlier in the day Emory McClin
took, the actuary Of the Mutual Life
was on the stand. McClintock prac
tically advocated no laws for the in
surance companies except a certain
supervision to give the reports pub
LEFTY. He thought the public coult
take care of itself and that publicit!
was.the best law. Asked how far thi
view was shared in Official circles, h
said he was somewhat OF a mission
airy along that line. McClintOck wa
to have been on the stand again at tn
afternoon session. but during the r
cess he was seized by slight attac
of vertigo. to which he Is subject. ii
will be called again tomorrow.
John r. Hcgeman. president of tn
Metropolitan Life Insurance Con
pany, was examined. when the al
journment was taken this afternoo
his testimony was unfinished.
While lacking the startling feature
of the testimony of some of the othe
life insurance presidents Hegeman
remarks and explanations were non
the less interesting, especially hi
statements that $4,000 was given t,
the industrial policy holders of hi
company last year without any obliga
ton whatever.
Loans Not Shown In Report.
1t was brought out that while tn,
company carried collateral loan'
throughout the year, none appeared IL
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 veal
Vermilye & Co., the bankers under al
agreement. and were bought back IL
January. This was done to avoid tn,
horde of applications for call loani
from the Wall street district. Hege
man did not encourage the call LOAF
business because II entailed keeping {
ticker In his office and he would not
have one there. He further did no
care to have his company known as 1
loaning company.
| The large loans at such n low inter
est at IL per cent, especially thu
one to President Mccall Of the New
York Life, was taken up and Hegemar
spoke strongly of his friendship fO
Mccall, who, he said, was closer thar
any other man to him In the insurance
business, outside Of his immediate as
sociates. Mccall had rendered hin
valuable service that was of benefit t
the company, and personally h
thought the company could afford t,
pay, and would have been justified II
paying Mccall a few hundreds of dol
lars which the loans amounted to. Th'
same was true, he said, OF Silas b
butcher, a director of the company
who also carried large loans with thu
company at low interest.
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