Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-11-10
Bears Blunt Of THURSDAYS
Insurance Investigation.
Pres. hegenan Receives $780,
OO0---Salaries Of Others.


Mutual Life, was again given some at
tention by Charles E. Hughes. counsel
for the committee, today.
The greater part of the day William
Barnes. Sr.. formerly of Albany. but
now living at Nantucket. Mass. sat in
the committee room waiting to be
called but late in the afternoon he was
excused for the day. Mr.. Barnes figured
in this Investigation several weeks ago
when vouchers for legal services, bear
ing his signature. were produced. to-
gether with letter signed by William
Barnes. Jr.. of Albany. reminding the
Mutual Life that his fathers Honor
ariIm had not been received" and fur
,her asking that a check be forwarded.
The Metropolitan Life figured in the
greater part of the days proceedings.
John +. Hegeman, president of the
company. who was on the stand when
adjournment was taken, yesterday, was
the inst witness. today, and the ex-
penseS of the company were further
gone into. 1t was brought out that Mr..
Hegeman' salary is the same as that
of John A. Mccall, president of the
New York Life, 100000. Previous to
1905. however, MIR. Hegeman received
$4,000. The salary of Vice President
Haley t'iske was $4,000, George Fl. Cas-
to, the second vice president. receives
s3T 500, and Frank o. Ayers, third vice
president, receives $16,250.
The work of agents in the field and
their compensation We're taken up with
Mr.. Hegeman and later James NJ.
Craig, the actuary, was called and the
subject of the cOmpany's securities was
taken up, but the Interrogation had
hardly begun when adjournment for
the day was ordered.
New York. Nov. S.-John Il. Hege-
man. president of the Metropolitan Lie
Insurance Co, was the first witness De-
fore the insurance investigating COM
mittee Of the Legislature. today. Mr..
Hughes. counsel for the committee.
first. however. called the name of l..
T.. Mullaney who upon responding to
his name was required to remain in the
room. Mr.. Mulaney is the caretaker
of the house in Albany which, as has
been brought out in previous testi-
mony was maintained by A. G. Fields,
an empIoye Of the Mutual Life Insur-
ance Co.. and occupied by him during
sessions of the Legislature.
The expenditures of the Metropolitan
Life Insurance Co. were again taken
up with Mr.. Hegeman and it was
shown that in 1904, s1,940.044 was paid
fdrISa iattHs b. 1t itch Is reeeivedA
5000, 100. Previous. to 1892, the president
of the company received d salary and
commission. but in 1892 Mi. Hcgeman's
salary was fixed at $4,000 without COM
missions and in 1905 this was raised to
100000. Vice President Haley Fiske'S
salary is $4,000. The salary of George
H. CASTOR. second vice president. is
1880, and of Frank o. Ayers, third
vice president. $16.250. Mr.. Hegeman
said that 80 years ago less than $250,00O
would have bought out the company,
while. today. $3.50. 100000 would not do it.
1t was brought out that the average
salary of an agent in the field is S11.62
a week. An assistant superintendent
salary averages S13 Il week, which with
commissions may run to S25 weekly
The average salary of superintendent
is from SIS to $50 a week. These OIL
GERS IRE in the direct charge of the
agents in the field.
Mr.. Hegeman said that although the
finance committee in 1904 increased his
salary from $40. 900 to 100000. he had
not drawn and did not intend to do So
You were complaining, yestt rday. of
the great expense of the industrial in
surancc. Was this matter OF expense
taken into consideration when the
salaries were increased" asked Mr.
Hughes.
Everything was taken into consid-
Grafton"
Are you making any serious effort
to reduce expenses"
We are always doing So
In reply to questions by Mr.. Hughes.
Mr.. Hegeman said that the section OF
the state insurance law dealing with
surrender values is waived by policy
holders of the Metropolitan Co. and
that he was not aware that in certain
states this waiver was held to be in
valid. Vice President Fiske. interrupt
ing. said the waiver was held to be in
valid in Missouri. Asked what he did
about that, Mr. Hegeman said he conf
piled with the law and that, after pre-
miums had been paid for five years.
the company paid surrender values.
Five per cent Of the policies issued by
the company. he said, provided that
after paying premiums for five years
the policyholders shall receive paid-un
insurance. but only for the period of
his expectation of life as tabulated on
the policy Mr.. Hegeman did not Know
why this limitation was fixed.
Mr. Hegcman was unable to answer
many questions of detail. and James
NJ. Craig. actuary of the Metropolitan
Life Insurance Co, was called. He de-
scribed the various forms of policies
issued by the. Metropolitan
Mr.. Hughes questioned the Witness
relating to infantile insurance.
DO you have a reserve OH infahtile
insurance. - he asked
Yes. we are carrying S6O0o.ooo re-
serve in excess of what it would nave
teen had it been written as life poll
ces Infantil. insurance since 1898 mas
been written on the endowment plan.
The endowments for the two years
were placed at AZ years and OF nine
years at As years.
Mr.. Craig declined to say what pro-
NORTON of those insured at the ages al