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Show MUTUAL LIFE'S 'tnm Pays One Dollar a Line fur H Special Accounts of In--.5 vestigation. , TRIES TO COUNTERACT t THE INJURIOUS EFFECTS Statement McCurdy Made Good 1 Impression Cost Double Prices. L NEW YORK. Oct. 21. At the session of thejl.eglslntlve committee Investigating H ihaTflnsurance companies, the affairs of tlreMutual Life were under consideration B and.R wns brought out tlin,t this company H wna' paying- for t ho dlssonilnnilon throuKh- H out. Iho counlrv of reports of this Invcstl- H cation thnt wore favorable to the com- B i Newspaper Man Testifies. H Charles J. Smith, a newspaper man. was tho witness. He Is employed by tho Mn- 1 tuali to do a law number of things, but H a month ago was placed In charge of --.ending out these reports. Mr. Smith had vlsc'ed a number of vouchcrR for the pay- merit of this work and these aggregated & ill.000. with more bills to como In. Mr. Smith wrote these reports and stib- . ! mlttcd them to Allen Foreman, who owns the Telegraphic News Bureau, and $1 a H i line was paid by the Mutual Life for the . , Sent to One Hundred Papers. Theeo dispatches were sent to about one hundred papers, but Mr. Smith did not know whether the papers wen paid ? for 'Inserting them. In one dispatch Mr. Smith wrote that Mr. McCurdy's attitude on tho stand made a distinctly favorable impression, and for this he had to pay J2 V a line. This, he said, was worth it. Hf Can't Account for All. Hj Following Mr. Smith. Walter Sullivan, B who has charge of the magazine adver- ' Using department, was called. He ealrt tho Mutual advertised In twelve maga- H zincs last year at a cost of about fliOOO. H Advertising In Insurances papers cost H about J30.0O) more, but ho could not tell M where the remainder of the account of H 2S,0C,?( the amount charged up to ndver- H Using last year, was spent. B Actuary on the Stand. H Earlier In the day Emory McCllntock. H the actuary of the Mutual Life, was on j the stand. Mr. McCllntock practically H advocated no laws for th Insurance com- H panics except a certain supervision to H gly?' the reports publicity. Ho thought H the public could take, care of themselves H and that publicity was the best law. B1 Asked how far this view was shared in Hf, official circles, ho thought he was some- Hi what of a missionary along that line. B Mr. McCllntock was to have been on tho H 3tand again In tho nfternoon session, but H during the recess ho was seized with a B slight attack of vertigo, to which ho is M subject. He will be called again tomor- . Hegeman Is Interesting. Hf Jobn'R. Hcgeman, president of the j Metropolitan Llfo Insurance company, H was'examlnsd, and when tho adjournment H was : taken this afternoon his testlnionil Bl as unfinished. While lacking the startling features of H' the testimony of somo of tho other llfo e , Insurance presidents, Mr. liegeman's re-marks re-marks and explanations were not the less H. interesting, especially his statement that k WTS.OM -was given to the Industrial pollcy- Hp holders of lus company last year without H am obligation whatever. No Xroans in Report. B It. was brought out that while tho com- V pany carried collateral .loans throughout tho year none appeared In tho annual re- A port on December 31 This was explained H by the witness, who said that all collateral Hr lotus were transferred on the last day of tho year to Vcrmilyo & Co., the bankers, HL under an agreement, and wore bought H back In January. This -was dono to avoid the horde of applications for call loans 1 1 , from the Wall street district, Mr. Hege- H , man did not encourage tho call loan busl- i ness from this section because it entailed j kcoplng a ticker in his office, and ho would H 1 not havo ono there. Ho further did not H care to have his company known as a B , loaning company. ! ! Low Interest to Friends. B I. j The largo loans at such a low interest HL h ( as per cent, especially the one to Prcsl- H ; ' 'lent McCall of the New York Life, wcro H ' I taken up and Mr. Hcgeman spoke strong- H i ly of his friendship for McCall, who, ho 1 said, was closer than any other man to H him In the insuranco business, outside of his immediate associates. Mr McCall had B rendered him valuable service that was of ' . benefit to the company, and personally he H ' thought the company could afford, and would have been justified, in paying Mr. I McCall a few hundreds of dollars which j : tho loans amounted to. The same was H' true, he Eald, of Silas B. Dutchcr, a dl- J i ' rector of the company, who also carried R large loans with the company at low In- Hjf' i teresL Telegraphic Ngws Bureau. K1 Charles J. Smith, the star witness l) today, said that ho was a nows- L 1 paper man, whose chief business was to Ii counteract the Injury that was being dono E' ' ' to llfo lnauranco and policy-holders. He 1 1 , 1 had been employed by the Mutual Llfo I , Insurance company for eighteen years at ' . ' fSCCO. Mr. Smith said that Allan Fore- 1 i ij man, editor of the Journalist, owned tho 1 ,11 Telegraphic News Bureau and that wlt- 1 ness sent out through that medium state- B j . monts to be published In various news- M papers. Witness had no share In tho Jr ' profits of tho Telegraphic Ncwh Bureau, B i hut had lent Mr Foreman some money. BBBK ' For tho publication Jn the newspapers the BBJ , j witness paid Foreman $1 a line. i I j ! Cited Incorrect Testimony. ' , He cited incorrect testimony published BBpjl i in this city and showed a clipping from BBW ; tno ilmington, Del., News, which wag BBH : I bne dispatch ho had sent out through the BBW fclegrapblc Nows Eureau. This dispatch BBVf 1 I recited somo of the testimony of Fred- BBJI ) 1 rrlck Cromwell, treasurer of lh Mutual BBJ ) M . Life, before the Investigating committee. BBflf I 1 anfl was sent to about one hundred news- BBBI .' papers. It cost tho Mutual Llfo Inaur- BBJI , ancc company $5000 or $C(00. , I Sends Neglected Portions. 1 j "It was my Intention to send out those BBpj portions that tho Associated Press neg- BBJ I I lected to send out," said Mr Smith. BBJ , Witness said that ho had twnt out Ave BBBt ; or b!x different dispatches during the in- BBpJ j vestigation. each dispatch going to fifteen BBB) i to ono hundred different newspapers. BBBI ' - Dispatches dated October IS giving a BBBI tl part- of tho-.tostlmony of President R. A. BBW 1 1 Jpl McCurdy were recognized by Mr. Smith. BBB Ui TIoEalcl. he. believed they were all paid BBJI , Wi tor at the rate of $1 a line, j ! S Phid Dollar a Line. I I WltnciiB said the money had been paJ,d BBW i,' n to the Tclegtaph Nows Bureau, The last BBV i , j line of this dispatch read that President BBV M McCurdy's testimony created a favorable BBpJ 1 J Improwtlbn. Mr, Hughes inquired whether BBpJ i' fl It coBhlm a higher price to get a dls-BBpi dls-BBpi , It patch insarted in the newspapers than if BBpJf i i ! it had been acquired in an Impartial way BBpJI ' Ij! )y thoao who furnish news to the papers. BBpJ j Mr, Smith roplicd that the matter ho BBpJI ') had .'furnished was the truth and such BBpJI J . 1 matter as the policy-holders would ho BBpJ ' ' If pleased to read. It was Important to let BBVJ I1 l hem know what tho company had done BBfli Ij for them. Bn, J To Let Policy-Holders Know. H.iij l "And It Is Important also for them to BBjjl t know that Mr. McCurdy's testimony mado a distinctly favorable imprepslon?" asked Mr. HuKhcs. "It made a favorable impression on mc," said tho witness. "You paid $3 a line for the part which read Mr. McCurdy made a 'distinctly favorable fa-vorable Impression?' " "Yes; and It was worth It." Mr; Hughs then showed tho witness, three vouchers for tho payment of J3S45, and $632, respectively, which the witness wit-ness said wero for telegraphic news dispatches, dis-patches, but he could not describe tho dispatches. dis-patches. Largo Amount for "Nows." Mr. Smith stated that upward of Jll.fVW had been expended by tho Mutual Llfo Insurance company since the insuranco Investigation bgan for dispatches reporting report-ing the proceedings, and that when tho bills wero all in they would probably amount to SU.00O. Witness had been connected with this department of the Mutual Life Insuranco company about one month. Previous to that his duties wcro varied. "It seems to bo your general duly to attend to all alarms and ascertain the cause thereof," said Senator Armstrong. Duty to Find Blackmailers. "Yes, and find all tho blackmailers: It Is an awful Job, too," replied Mr. Smith. Mr. Smith said there were slxtv-thrpo Insurance newspapers, and that the Mutual Mu-tual L.ifo Insurance company was represented repre-sented In all of them. , "la this matter of paying for tho Insertion Inser-tion of news Items a new departuro of tho Mutual Life within the last six weeks?" nsked Mr. Hughes. "Well, yes: It may havo been done some times, but I havo been at It only about a month." Some Papers Particular. Witness said that some of the newspapers news-papers had refused to publish the dispatches dis-patches without marking them as advertisements adver-tisements Walter S. Sullivan followed Mr. Smith He said he had charge of the magazine for tho Mutual Life. He know nothing of the vouchers for advertising signed by John E. Ashe. James E. Craig and Edgar W. Rogors. He said $81,173 was paid by the Mutual Life for magazine and newspaper news-paper advertising last year, of which $30,000 was expended in Insurance papers. Sent by Request. Mr Sullivan said tho dispatches sent out by Mr Smith were sent out largoly at the request 'of tho papers themselves. Tho -sum of $31H was expended In 1SOI for thefio telegraphic notlcca. Mr. Sullivan said that the coupons clipped from magazines by applicant for information about Insuranco, a question that President McCurdy could not answer, an-swer, were sent to tho manager in whoso territory they originated. Ho proscnted ajBtatemont showing tho business done in this mall order department, which showed that of 3171 coupons received in 190-1. 223 wore turned over to C. H. Raymond & Co.. tho Metropolitan district agents. Says Advertising1 Pays. Witness said that tho Mutual Llfo used about twenty-flvo magazines for advertising advertis-ing purpooes and the cost for advertising In these last years was $42,000. In this thcro were applications by the coupons for about $1,300.00). Witness" said this advertising ad-vertising was the small end of the matter, mat-ter, that the general publicity gave encouragement en-couragement to the agent, and that tho genoral effect of advertising was of far greater value than the coupons. |
