The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-10-26
A DOLLAR A LINE.
Mutual Pays for Dissem
mating Good Reports.
Sometimes it Pays So a Line for
Such Reports OF the Legisla-
tive Insurance Investiga-
(By the Associated Press. }


New York, Oct. 24.-At the session
today of the Legislative committee in
vestigating the insurance companies
the affairs of the Mutual Life Insur-
ance Company were under considera-
ton, and it was brought out that this
company was paying for the dissent
nation throughout the country of re-
ports of this investigation that were
favorable to the company. Charles j.
Smith, newspaper man, was the wit
ness. He is employed by the Mutual
Life Insurance Company to do a large
number of things, but month ago
was placed in charge of sending out
these reports. Mr.. Smith had vised
number of vouchers for the payment
for this work and these aggregated
$1,000 with other bills to come in.
He thought the amount to date would
reach $4,000.
Mr.. Smith wrote these reports and
submitted them to Allan FOrman. who
owns the Telegraphic News Bureau
and 81 a line was paid by the Mutual
Life for the service. Clippings from
various papers about the country in
Guiding the Boston Herald, Florida
Times-Union. and Atlanta Constitution
were shown to the witness and identi-
fed as the dispatches he wrote and
sent to Mr.. Forman. These were sent
to about one hundred papers, but Mr.
Smith did not know whether the pa
pers were paid for inserting them. In
one dispatch Mr.. Smith wrote that Mr..
McCurdy's attitude on the stand made
distinctly favorable impression and
for this he had to pay So per line.
This he said was worth it.
The Mutuals Advertising.
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 cost of $42.-
900. Advertising i'm insurance papers
cost about 100000 more. but he could
not tell where the remainder OF the
account of $329,797 the amount
charged up to advertising last year.
was spent.
Earlier in the day Emory McClin-
took the actuary of the Mutual Life.
was on the stand. The entire early
session of the day before recess was
given over to his explanation of tech
meal insurance. Mr. McCllntock
practically advocated no laws for the
insurance companies except certain
supervision to give the reports public
ity He thought the public could
take care of themselves and that pub
licitv was the best law. Asked how
far this view was shared in official
circles. he thought he was somewhat
Of a missionary along that lineA
Mr.. McClintock was to have been
on the stand in the afternoon session,
but during recess he was seized with
a slight attack of vertigo to which
he is subject He will be called again
tomorrow. John r.. Hegeman, presi-
dent of the Metropolitan Life Insur-
ance Compan- was examined and
when adjournment was taken this az
ternoon his testimony was unfinished.
Testimony of Hegcman.
While lacking the startling features
Of the testimony of the other life in
surance presidents who have testified,
Mr. Hegeman's remarks and eXplana-
tions were none the less interesting.
especially his statement that $S16,0O0
was given to the industrial policy
holders of his company last year with
out any obligation whatever. Mr..
Hegeman further said that in eight
years his company had voluntarily
given to the policy-holders $S,000,OOO
This was in extended insurance. NOR
tuary dividends and liberaliZed policies
during epidemics floods and fires.
1t was brought out that while the
company carried collateral loans
throughout the year none appeared in
the annual report on December 81.
This was explained by the witness,
who said that all collateral loans We're
transferred on the last day of the year
to Vermilye & Company, the bankers,
under an agreement and were bought
back again in January. This was done
according to the witness to avoid the
horde of applications for call loans
from the Wall Street district.
Mr. Hegeman did not encourage the
call loan business for this section be-
cause it entailed keeping ticker IN
his office and he would not have one
there He further did not care to have
his company known as loaning COM
pany.
The large loans at such low inter-
est as one and a half per cent. es-
pecialIy the zone to President John A.
Mccall. of the New York Life Insur-
ance Company, were taken up. and
Mr.. Hegeman spoke strongly of his
friendship for Mccall who he said was
closer than any other man to him in
insurance. outside of his immediate as
sociates. Mr. Mccall 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 pay
ing Mr.. Mccall the few hundred dol
lars the loans amounted to. The same
was true. he said, of Silas b. Dutch
err a director of the company who
also carried large loans with the COM
pany at low interest.