Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1905-10-26
.THEY WANT 10 LANI
Official Of Mutual Life Says Public
es Should Care For Themselves.
HOW THEY PAY FOR REPORTS
Nave Paid About $1,000 for sendinG
Out Statements Regarding Ia
vestisatIon Favorable to
q Insurace Company.


New York. Oct. 25.--At the session
Tuesday of the legislative committee
investigating the insurance companies
the affairs Of the Mutual Life Insurance
company were under consideration and
IL was brought out that this company
was paying for the dissemination
throughout the country of reports OF
this investigation that we're favorable
TO the company. Charles ]. Smith, was
the witness. He Is employed by the
Mutual Life Insurance company to do
a large number of things, but q month
ago was placed In charge Of sending
out these reports. Mr.. Smith had vized
number of vouchers for the payment
Of this work and those aggregated
S11 200, with more bills to come In. He
thought the amount to date would
reach $4,000. .s-a,.,.r,a.,s 80, ,-s.n.,,,
Mr. Smith wrote these reports and
submitted them to Allan Forrnan, 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 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 were paid
for inserting them. In one dispatch
Mr.. Smith wrote that Mr.. McCurdy's
attitude on the stand made ditinctly
favorable impression, and for this lie
had to pay 81 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 cost Of $4,000.
Advertising in insurance papers cost
about $50, 900 more, but he could not
tell where the remainder OF the ac'
count Of $32S, 797, the amount charged
up to advertising last year,was spent.
Earlier in the day Emory McClin-
took, the actuary of the Mutual Lire,
was on the stand. The entire early SEES
sion of the day before recess was given
over to his explanations Of technical
insurance. Mr. McCllntock practically
advocated no laws for the insurance
companies except a certain supervision
to give the reports publicity. He
thought the public could take care OF
themselves and that publicity was the
best law. Asked how far this view was
shared in official circles, the thought ne
was somewhat of a missionary along
that line.
John R. Hegeman, president OF the
Metropolitan Life Insurance company,
was being examined when the adjourn
ment was taken Tuesday afternoon his
testimony was unfinished.
While lacking the stratling features
OF the testimony of some Of the other
life insurance presidents who have tes-
tilted, Mr.. Hegeman's remarks and ex-
plantations were none the less interest
ing, especially his statements that
$4,000 was given to the industrial
policy holders of his company last year
without any obligation whatever. Mr..
Hegeman further said that in eight
years his company had voluntarily CIV
en- to- the policy holders 100000.
This was in extended insurance, NOR
tuary dividends and liberalized policies
during epidemics, floods and fires.
1t was brought out that while the COM
pany carried collateral loans through
out the year, none appeared in the an
nual report on December 81. This was
explained by the witness, who said that
all collateral loans were transferred
on the last day Of the year to Vermilye
9 co., the DanKers, unuer an ESrec-
ment, and were bought back again In
January. This was done, according to
the witness, to avoid the horde of APP
plications for call loans from the Wall
street district
.rA0vrmc nv TrT Rnp Apu