The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-10-06

New York. October 4-That John
r. Hegeman. president of the Metro
politan Life Insurance Company bor-
rowed $4,000 from the New York Life
Insurance Company at 11s per cent.
interest. rate below the market rate.
was brought out in the insurance in
vestigation last week, but today Pres
ident John A. Mccall of the New York
Life Insurance Company testified that
he in turn borrowed $4,000 for the
Metropolitan at the same rate This
was in January 1908. the loan was
renewed in January 1904. and ran un-
til March 1905. when the rate of in
which rate it is still running. Mr..
Mccall testified that he was a direc-
tor OF the Metropolitan Life Insurance
Company. but not a stockholder. The
fact of his being director. Mr. Nc
Call continued. did not deter him from
procuring a loan at as low a rate of
interest as possible when it was to his
interest to do SO.
Somewhat of sensation was caused
in the late hours of today's session Of
the legislative committee. which is in
vestigating the methods of life insur-
ance companies when Neill F. Towner.
of Albany. was called to the stand and
disclaimed any knowledge Of the
whereabouts of cancelled checks Of
Judge Andrew Hamilton of Albany.
Mr.. Towner testified that the checks
had disappeared from drawer in
HamiltOn's desk.
Mr.. Mccall resuming. was asked
about deposit to the credit of Judge
Hamilton of s162,041 on September 1.
1905. Mr.. Mccall said the New York
Life Insurance Company had paid Mr..
Hamilton no money but suggested that
part Of it might have come from the
state controllers office by reason OF
an assignment of tax moneys which
would come to the Judge by reason of
securing the repeal of the tax law
which relieved the New York Life
from payment of taxes. Judge Ham
ilton was to have One-third of the
amount that would rebate to ths COM
panv a sum of $4,000. netting Mr..
Hamilton about 100000.
Another interesting~ point was
brought out by Mr.. Hughes Just before
the committee adjourned for the day
Edward F. Devlin. the real estate
manager for the New York Life In
surance Company testified that the
New York Life had acquired by fore
closure an apartment house in one OF
the most desirable residential sections
of this city. and the cost. with the
improvements deemed necessary was
$203.056. The net income from this
property was found to be 0.32 per cent
on the investment Among the inn
provements was. the throwing of two
apartments into one of nine rooms
with two baths. These were rented
for $500 and $500 a year. 1t then
developed that four of the tenants
were the immediate family Of Presi-
| dent Mccall. three sons and a son-in.
| lay. Mr.. Devlin was asked who fixed
the rental of these properties and he
said he discussed the matter with Mr.
Mccall. Mr.. Mccall enlivened the
DAYS proceedings further wher
he said that there was no rec
ord on the books of the New
York Life Insurance Company Of the
s15o.00O paid the Republican Nationa
committee for contributions to presi-
Dental campaign. While he had nc
personal knowledge that the none,
| was paid he assumed it was. because
he had told the treasurer to make
| these payments.
Earlier in the day Mr.. Mccall. in de
| failing the general legislation work G
Judge Hamilton and the counsel HI
| employed. denied any knowledge o
| the legislative pool which was dis
closed in the examination of ALFRED
". Maine. auditor Of the Equitable
| Life Assurance Society. last week.
Mr.. Mccall on this question made
| the startling assertion that three
| quarters of the bills affecting life in
surance companies were in the natur'
| OF blackmail
| The officers Of the companies wer'
worried at the beginning of each yea
| he said. by the PROPOSAL of laws tina
| would hamper their companies ant
these officers really trembled at wha
| they would have to endure the frs
| six months of each year"
President Mccall said he did no
remember the making of affidavits b,
/ the officers of the New York Life In
surance Company to the goyerno
Il 81 the oRFnnxu -crs