The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-28
NEVER BRlBED
A LEGISLATOR
Judge" Hamilton Made Lawful Us,
Of Insurance Funds.
Mccall TOLD HIM TO DO Sc
BUT HIS CHECK BOOK AND STUBS
ARE WITHHELD.

Al BW YORK. Dec. 27.-Jobn r No.
" CaII, secretary of the New Yorb
Life Insurance company. who
lew days ago returned from Europe
where he went to get an accouatins
Oh money advanced to Andrew Hanfi.
ton was the first witness in the in.
! surahce investigation today, when the
90. go week oI the committees work was
taken I'D.
Mr.. Mccall said he saw Hamilton ir
france and that Mr.. Hamilton MAS So.
Iiously III, though able to walk about
HI. mccall also presented a physi-
CIah certificate describing Mr.. Ham.
uIOii Illness and stating that the pa
IleHt could not undertake a voyage OF
leaYe France within two months.
mr. mccall said he asked Hamilton
TOT MS check books, but Hamilton re-.
FUSED to give them up, saying that the
STUBS related TO his own personal bust
ness. M. Mccall did, however. get a
statement from Hamilton regardine TIE
expenditures Of funds entrusted 10 him
oy insurance companies The state
HlenI then was produced and put in
evidence.
Kept No Books.
Mr.. Hamilton, in his statement tells
why he cannot produce vouchers or
Cancelled checks to show 10 whom and
IN what amounts he had paid ouf
money. The statement is 10 the effect
that in consequence of the accepted-,,
derstanding Of the companies INTERESTED
with the New York Life in yyatcbtps
legislation, no demand was made BY
me for vouchers from other people. nor
We're there any books or accounts kept
0y me covering same"
It continues:
Nor are there any of NV checks n
produce. Payment by nv check would
necessarily have disclosed the fact that
the persons receiving the check was
under retainer by me and would ttus
nave necessarily hampered that portion
OF my work that was most effcacio,fs
ial!ielyf absolute secrecy. Cash drafts
ana cefuhcates were generally pre-
lerred. 1 can lot produce my check book
or Cancelled checks which relate ~
affairs other than those of the New
york Life Insurance company. I can
not produce any books Of these mar
IlcuIar counts because none ever was
kept by me. Even If I did uossess
them. 1t does not appear TO me that
the demand for them would he 3 faiy
and honest one. The understanding
that 1 had undertaken this work was
distinct and thorough. If il had not
been so. l would have declined the
task"
Sorry He Couldn't Return.
Mr.. Hamilton, in opening his state
ment, expresses regret that he cannot
return to the United States at present
because of his health At the time
of his employment in Chicago i'm the
bureau OF taxation and legislation Of
the New York Life. the life Insurance
companies feared that unless concerted
action was taken they might practical
~ be legisllted and taxed out Of ex
istence.
THE usual practice of dependine
alone upon counsel to attend and pre-
sent arguments was determined 10 be
insufficient" says Mr.. Hamilton. The
very fact that the great life insurance
interests of New York favored or on
posed pending legislative appropris-
lions would itself often concentrate the
opposition against their views, so like
wise did the knowledge that we were
represented at the capitals of various
states lead TO demands that political
favorites should be empToyeY n InFTsz
role of counsel, which, If acceded to.
placed our affairs at the mercy OF those
who did not possess our confidence
These and other considera tions led the
three companies to but one conclusion.
We felt that if a secret service was
a permissible governmental agency. a
confidential service would be the oniV
effective. and at the same time proper
plan TO guard the welfare OF the most
extensive commercial interests In the
wOrld-the life insurance business OF
the state of New York. This conf
Dental secret service was decided upon
as the only feasible plan Of protection.
L explained to the president OF the
New York Life, as did the other gen
tlemen who were associated with me
in this work to the officers of their re-
spective companies that itemized ac-
counts by names, or amounts by sep
crate vouchers, details or particulars
should not he demanded if we were to
be held responsible. The protection Of
the companies under such a plan was
ample"
Many Hostile Bills.
MIR. Hamilton gives a long summary
of the various styles OF bills hostile
to Insurance companies, many of them
taxation measures.
Bills to compel the companies re-
ports to be repeatedly and unnecessari-
" published IN neWsDa Peers are advG-
Gated SAYS Mr.. Hamilton, "to gain "a
vor with the press for inerea sing tarir
revenues. Outrageous propnsitio
such as the 10 per cent tax prono-
in Arkansas or absurd propositions q
the Michigan bin. where Il doctor's a.
tificate of i'll heath would excuse TIE
payment Of the Insurance p-o'' INN and
keep a policy in force. or the Virginia
bill making il actiOnablr for a life H.
surance agent IN enter the office ~ a
man where the sign no agents above L
is displayed lp1 legislatiss favor
However ridiculous these bills may
som. they demsrS attention In r.
diana the att empts made n pass a law
Tlacing the surrender value of a life
il surance policy upon th@ list of per-
rona. property which was taxable TO
the owner
Companies which offered no such
to policy holders supported
il as an attack upon their rivals who
offered this advantage. The measure.
however. was defeated. Immediately
the state assessors proceeded TO tax
policy holders. proelaiming that the ex-
esting law was broad enough In Its