The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-25

u AUlEIlLd IIDAl 1880 10 1885, ana mas
been a fellow of the Institute of Actu-
aries of Great Britain since 1874.
Mr.. McChntOck supported the state
ment made on the stand by John A.
Mccall, president OF the New York
4 Life Insurance company, as to the
/ causes leading TO the many failures
) during the early days of insurance in
this state The companies failed, said
Mr. McClintock, because they had
nothing 10 support them but the cur
rent premiums. The Metropolitan In
surance company, the witness cOntin-
ued, was on the eve Of failure at one
D time, but managed to prosper by
/ adopting the industrial plan of insur-
/ ance.
Charter of the Mutual.
! Mr.. McClintock said the Mutual
Lies charter called for q division Of
profits among the policy holders every
/ I'VE years, previous TO 1896. In 1912 a
dividend was added to the policy. The
next division of profits was in 1883 and
this dividend was payable at death. All
j. the policy holders knew was that a
certain amount was added to his pol
4 icy, which he was to receive at his
death. In 1889 and 1868 other dividends
/ We're paid Witness was not clear as
/ 10 whether they We're paid in cash upon
/ surrender of the policy. In the sharp
] tuAl pclltlQl between the New lOfk
/ Life and the Equitable Life Assurance
/ SOCIETY with the Mutual Life Insurance
/ company in $780, the Mutual offered
/ new pOltcy-holders a 80 per cent rebate
I on the first years premium. This was
] an open, public and aVOwed rebate.
/ There was so much objection to this
/ that In 1878 the Mutual issued policies
/ at a Is per cent reduction in rates. out
standing pollcy-holders were privileged
rate. but with a reduced dividend. Mr..
McClintock said it was one of these re-
duced-rate policies that was under OBJ
serVatiOn last week. when the letter of
the holder TO the committee was read
TO Mr.. McCurdy reciting a gradual re-
/ duction from $5576 TO s. in dividends.
Complaints Are Many.
Mr.. McClintock said that there were
more complaints from these policy
holders than from any others the COM
pany had Senator Armstrong then
asked why the policies drew less divi-
dends as they grew older, and Mr.. Me-
Clntock said that the rate Of interest
thirty years ago was 6ik per cent,
which was distributed TO policy -hOld-
ers. Twenty years ago il was 6 per
cent, and it has been progressively di
minished every year until il WAS 4.3
per cent at the end of 1903 Today the
company is giving credit for Al per
cent. which he said exceeds the credit
given by any savings bank. The pol
icy-holder, however, only gets what is
above per cent.
The policy holder has been getting
dividends for a number of years, and
sees them getting so small that he
naturally worries" said Mr.. MCClin-
/ took, but that interest decrease has
got TO happen ia every company. New
ertheless he does not like it ana can
not be expected to-
Mr. Rogers, OF the committee, asked:
If it dropped below I per cent, would
he owe you something's"
And Mr.. McClintOck replied: THE
law won't permit that
After recess Mr.. McKeen announced
that Mr.. McClintock had been excused
because of indis2osition.
Publicity Department.
Charles J. Smith, the next witness,
said that he was a newspaper man
whose CHIEF business was. to counter
act the injury that was beh 2 lone
to life Insurance and policy holders.
He had been employed by the Mutual
Life Insurance company for eighteen
years at $4,000. Air Smith said that
Allan Foreman, editor OF the Journal
ist owned the TelegraDhiC News Blu
reau, and that witness sent out trough
him some statements 10 be published
in various newspapers.
Witness had no share in the profits
of the Telegraphic News Bureau, but
had loaned Mr.. Foreman some money.
For the publication 10 the newspapers
the witness paid Foreman 81 a line.
He cited Incorrect testimony published
in this city, and showed a clipping
from the Wilmington tDel) News
which was one dispatch he had sent
out through the Telegraphic News
Bureau This dispatch recited some OF
the testimony of Frederick Cromwell,
treasurer OF the Mutual Life, before
the Investigating committee. and was
sent 10 about 100 newspapers. II cost
the Mutual Life Insurance company
$1,000 or $4,000
1T was my intention to send out
those portions that the Associated
Press neglected to send out" said Mr..
smith
One Dollar a Line.
Witness said that he had sent out
five or six different dispatches during
the investigation, each dispatch going
10 trom 3 10 100 different newspa-
pers.
Dispatches dated Oct. IS, giving a
part OF the testimony Of President Z
a. McCurdy, were recognized by MI
Smith. He said he believed they y ere
al! HHid for at the rate of 81 a line
Witness said the money had been
paid to the. Telegraphic News Bureau.
The last line of this dispatch read that
President McCurdy's testimony ere
ated a favorable impression Mr.
Hughes inquired whether it cost him a
higher price to get a dispatch inserted
IN The newspapers than if il had been
acquired in an impartial way by those
who furnish news TO the papers.
Mr. Smith replied that the matter he
had furnished was the truth, and such
matter as the Dolicy-holders would be
pleased TO read. It was important To
lie them know what the company had
done for them
Mr.. Hughes Sarcastic.
And it is important also for them
10 know that Mr., McCurdys testimony
made distinctly favorab bic impress
sionF asked Mr.. Hughes.
1t made a favorable impression ON
me. said the witness.
You paid s. a line for the part which
read Mr.. McCurdy made a distinctly
favorable impression? %
Yes, and ii was worth it,
Mr.. Hughes then showed the witness !
three vouchers for the payment Of So /
945, Sl,55S and $633. respectively. which |
the witness said We're for telegraDhic |
news dispatches, but he could not de- !
scribe the dispatches.
Continued on PAGE 2.