Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-28
Of Graft Develops at
Insurance Hearing.
Hamilton Of New York Life Has
Not Accounted for S235,000.
Declines to Give AccOunting---He Explains
System of "COnfidentiaI Service"

New York, Dec. 27.-Andrew Hamil-
ton, the legislative agent for the New
York Life Insurance Co., who, accord
ing to testimony, was entrusted with
hundreds of thousands of dollars BY
that company and has not accounted
for $235 900 has been heard from by the
legislative insurance investigation COM
mission, but has declined to make an
accounting.
statement by Mr.. Hamilton was
read for the record today. 1t was pre-
scented by Secretary John c. Mccall of
the New York Life, who went to Paris
to secure an accounting from Hamil-
ton. In his statement Mr.. Hamilton
says that he is unable to produce any
books or accounts because he under
took the legislative matters for the
life insurance companies with the ex-
press understanding that he was to
make no accounting. Absolute secrecy
was necessary in retaining assistants
therefore no checks We're used in max
ing payments. Mr.. Hamilton went into
exhaustive explanation of the reasons
for organizing this confidential service
as he characterized it, and citing
number of Legislative bills in which he
has been interested. A list or expenses
from 1899 to 1904 was appended to the
statement. The sum of $235,000 unac-
counted for, he says would be greatly
reduced by his running account still
unsettled and open and, as a matter of
good faith pending a settlement, he
offers to deposit 100000 with the COM
pany.
Secretary Mccall was questioned by
Mr.. Hughes as to what further light
he could throw on the statement of Mr..
Hamilton, but he said he could give
no information. He did not question Mr..
HamiltOn'S figures nor the large
amounts for travelling expenses. He
asked Mr.. Hamilton for a full state
mcnt and relied on his honesty to eX-
plain everything. He did insist that Mr..
Hamilton produce checks or check
books, but Mr.. Hamilton said he had
none.
When Mr.. Mccall was excused Henry
d. Appleton of the state insurance de-
partment. was called. He completed his
testimony began last Friday and dur
ing the examination was told that Mr..
Morgan, former president OF the Bank
ers Life Insurance Co., had testified
THAT MI. AIbJlclOll Iidu Sstltl II Houib
cost the Bankers Life $4,000 to rein
corporate. Mr.. Appleton somewhat
heatedly said:
IF Mr.. Morgan said that he is 4 liar"
Louis +. Payn, former Superintend-
ent # insurance OF the state of New
York explained a large number of APP
pontments OF confidential examiners
on the ground that an unusual number
Of examinations were made during his
tenure of office. The affairs of the Mu-
tual Reserve Life Insurance Co. were
taken ND and during this line of ex-
animation Mr.. Payn stated that he had
been opposed to Mr.. Burnham as pres
iGcnt of the Mutual Reserve and said
h had tried to get him out.
Mr.. Hughes asked why and Mr.. Payn
flatlv stated "because I thought him
crook
Mr.. Payn will resume tomorrow.
\ point of interest in insurance mat
tiers developed in the courts today when
Justice Greenbaum, in the supreme
court. granted a writ of mandamus to
Clarence II. Venner and 100 other pol
icyholders directing John A. Mccall,
president of the New York Life, to fur
nigh them with a complete list OF pol
icyholderS.
The board Of trustees of the Mutual
Life Insurance Co. held a meeting to-
day and elected Emery McClintock, the
actuary of the company, as vice presl-
dent and director He will be in active
charge of the company's technical al
fairs. President-elect Charles A. Pea
body was also elected a director. These
two succeed E,lihu Root and Rufus w.
Peckham.
The trustees voted to abolish the
metropoIitan agency of c. III. Raymond
& 60. and all agencies are to be on
SALARY basis. A number of changes are
ia he made also in foreign agencies.
uIDGE GRANTS PETITION