The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1905-11-02
SERVICE COSTS 81 A LINE
STORY THAT M'cuRDY MADE
FAVORABLE IMPRESSION
COST So A LINE.
TELLS ABOUT M'CALL LOAN
PRESIDENT HEGEMAN SPEAKS
STRONGLY OF FRIENDSHIP
FOR MCCALL.

New York, Oct. 26.-At the session
yesterday OF the legislative commit
tee investigating the insurance compa-
MES, the affairs of the Mutual Life In
a company were under consid-
Grafton and it was brought out that
this company was paying for the dis
semination throughout the country of
reports of this investigation that were
favorable to the company. Charles J.
Smith, a newspaper man, was the wit
ness. He is employed by the Mutual
Life Insurance company to do a great
many things, but a month ago was
placed in charge of sending out these
reports. Mr.. Smith had issued a num-
Der of vouchers for the payment Of
this work, and these aggregated SILL
thought the amount to date would
reach $4,000.
Pays for the Service.
Mr.. Smith wrote these reports and
submitted them to Allan Forman, who
owns the Geographic news bureau, and
81 a line was paid by the Mutual Life
for for service. Clippings from vari-
GUS papers about the country were
shown to the witness and identified as
the dispatches he wrote and sent to
Mr.. Forman. These were sent to
about 100 papers, but Mr.. Smith did
not know whether the papers we're
paid for inserting them. In one dis
patch Mr.. Smith wrote that Mr.. Nc
Curdy's attitude IN the stand made a
distinctly favorable impression, and for
this he had paid 81 a line. This he said
was worth it.
Following Mr.. Smith. Walter Sulli-
van, who has charge of the magazine
advertising department, was called. He
said the Mutual advertised in twelve
magazines last year at a cost of $42,-
900. Advertising in insurance papers
cost about $4,000 more. but
He Could Not Tell
where the remainder of the account of
1929, 1877, the amount charged up to ad-
vertising last year, was spent.
Earlier in the day Emory McClin-
took, the actuary of the Mutual Life,
gave his explanation of technical in
surance. Mr.. McClintock practically
advocated no laws for the insurance
companies except a certain %supervis-
ion to give the reports publicity. He
thought the public could take care of
themselves, and hat publicity was the
best law.
John H. Hegemar, president of the
Metropolitan Life Insurance company.
was examined, and when the adjolrn-
ment was taken his testimony was IN
finished.
Hegeman Is Interesting.
While lacking the startling features
Of the testimony of some other life in
surance presidents who have testified.
Mr.. Hegeman's remarks and exrlana-
tons were none the less interesting,
especially his statement that 1915. 900
was given to the Industrial %policyhold-
ers of his company last year without
any obligation whatever. MI. Hegeman
further said that in eight years his
company had voluntarily given to the
policyholders $4,000, 900. This was in
extended insurance, mortuary divi-
dends and liberalized policies during
epidemics, floods and fires.
Tells About Mccall Loan.
The large loan at such a rate Of in
terest as 1 IL per cent. especially the
n to President John A. Mccall of the
New York Life Insurance company,
were taken up and Mr.. I:egeman spoke
strongly of his friendship for Mr.. Nc
Call, who, he said had rendered him
valuable service that was of benefit to
the company. and, personally, he
thought the company could afford, and
would have been justified in paying
Mr.. Mccall the few hundreds, of dol
lars the loans amounted to. The same
was true, he said, of Silas B. butcher.
a director of the company, who also
carried large loans with the
at low interest.