The Montgomery advertiser., 1905-10-25
.MUTUAL'S PRESS AGENT
CHARLEs J. SMITH DESCRIBES HIS
 UNIQUE DUTIES.
If Was His Effort to Make McCurdy's Testimony Appear in Favorable Laght-The Cost Was VI
 d Line.

I It Was His Effort to Mske acCSes | Testimony Appear in Favorapie Laght-The Cost Was VI | q Line.
 New York, Oct. 24-Charles J. Smith. who said he was press agent in the
 employ of the Mutual Life Insurance Company, testified before the legisla- tive life insurance investigation com | mittee today that bis duties were to. counteract the injury done to the Mu- | tual Life Insurance Company for the publication of news stories. He said l his salary is $S,000 and that he paid | $1 a line for dispatches sent by the. | Telegraphic News Bureau. He showed a clipping from The Wilmington (DeL) | News of a dispatch which he had sent | out which he says cost the Mutaul Life Insurance Company $5,00o to dissemi- | nate. It dealt with the testimony of Mutual Life before the Investigating committee. Smith was shown clip pings form The St. Paul Pioneer Press. Houston Herald, Toledo Blade. Buffalo Courier. Florida Times Union and The Atlanta Constitution and he said he believed they were all paid for at the rate of $1 a line. This payment was made to the Photographic News Bureau. Some of these dispatches dealt with the testimony of President Richard A. II committee. Smith said that President McCurdys evidence made a favorable impression on him and that he sent the dispatch out without taking coun- cil with anybody. He did not know that the papers printing these dis patches received $1 a line. but 1t was paid to the bureau.
 A voucher dated October 25 (tomor- row), covering dispatches up to Octo- Der A, for the payment of $3.945, Smith fnr- fnhn he hod l out but he could not describe them. An entry of s1,55S paid to the Tele- graphic News Bureau was shown him. He said he could not tell what 1t was for. Smith said it was his idea to send out the testimony that the Associated Press neglected to send out.
 Under date of October 4, charge of $6,252 paid to this bureau was shown witness. Smith said that upwards Of s11,08e had been paid by the Mutual Life Insurance L,mpany since the in- vestigation began for dispatches re- porting the proceedings and that 1t IS expected to pay more.
 The witness said that he was pro- prietor of The Insurance Record and had been connected with the Mutual press department for about month. Prior to that time his duties were va ried and included the publishing Of The Statement, a paper by the com pany.
 MT. Smith was asked if he was inter- ested with Allan Forman in the Tele- graphic News Bureau. He replied that l he was not except that he sent news | to him. He said the Photographic News | Bureau was owned solely by Mir. For man.
 | MT Smith said that some of the pa pers had refused to print these ais
 patches he had sent out without mark ing them as advertisements.
 In reply to Assemblynan Rogers, MT. | McClintock stated he did not believe Tn
 legislation against assessment compa- l nies as that might create prejudice against the regular life insurance companies. The Mutual Life's charter | called for a division of profits among the policy holders every five years, pre- vious to 1s3s, he continued. In 1S42 a
 dividend was added to the policy. The
 next dividend of profits was in 1853 | and this dividend was payable at death. All the policy holders Knew
 was that a certain amount was aodeo
 to their policy. which he was to re-
 ceive at death. In 1858 and lSo3 other dividends were made.
 Witness was not clear as to whether
 they were paid in cash upon surrender | of the policy.
 In the sharp competition between the
 New York Life Insurance Company and
 the Equitable Life Assurance Society, with the Mutual Life Insurance Com
 pany in 1870, the Mutual offered new
 policy holders a 30 per cent rebate on
 the first years premium. This, MT :.
 Clintock said, was an open, public ana
 avowed rebate. There was SO much
 objection to this that in 1897 the Mu-
 tual issued policies at a 15 per cent
 reduction in rates. Outstanding policy
 holders were privileged to avail them
 selves of the reduced rate, but with a
 reduced dividend.
 Mir. McClntock said that it was one
 of these reduced rate policies which
 was under observation last week, when
 the letter of the holder to the commis-
 tee was read to MT. McCurdy reciting
 gradual reduction from $55.56 to $3
 in dividends.
 MT. McClintock said there were more
 complaints from these policy holders
 than any others the company had.
 Senator Armstrong then asked why
 the policies progressively drew less dividends as they grew older and MT.
 McCllntock said that the rate of inter-
 est thirty years ago was 1-2 per cent
 and 1t has been progressively dimin-
 ishing. every year until 1t was 4 3-lC
 per cent at the end of 1903. Today the
 company Is giving credit for S-10 pel
 cent, which exceeds the credit given by any savings bank. The policy hold
 CT, however, only gets what Is above
 per cent.
 Charles J. Smith, the next witness ! SalQ that ne WdS d newspaper whose chief business was to counteract the injury that was being done to life
 insurance and policy holders. He haC been employed by the Mutual Life In. surance Company for eighteen years al
 $S,000 a year. MT. Smith said tha Allen Forman, editor of The Journalist
 owned the telegraphic news bureat and that witness sent out through thi:
 concern some statements to be pub.
 lished in various newspapers.
 Witness had no share in the profit.
 in the telegraphic news bureau. but had ! loaned MT. Forman some money. Fol the publication of the dispatches in tht newspaper, the witness paid Allen For i man $1 a line. He cited incorrec testimony published in this city ant
 showed clipping from The Whining ton (Del.) News, which was one dis patch he had sent out through thu telegraphic news bureau. This dis patch recited some of the testimony O. ] Frederick Cromwell, treasurer of thu . Mutual Life Insurance Company befor' the Investigating committee and wa ! sent to about 100 newspapers. It cos