Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-27
MCCALL ON THE STAND
First Witness Before the In
suranCe Committee
In NEW YORK TODAY
TELLS OF HIS CONFERENCE WITH
HAMILTON IN PARIS.
Statement Regarding Expenditure OF
Insurance Funds Entrusted to Him
Put in Evidence.

Call, secretary of the New York Life In
surance Company, who a few days ago re-
turned from Europe where he went to get
an accounting of money advances to An
drew Hamilton. was the first witness in
the insurance investigation today, when the
last week of The committees work was
taken up.
Mr.. Mccall said he Hamilton in
France. and that Mr.. Hamilton was seri-
ously ILL., though. able to walk about Mr..
Mccall also presented physicians certih-
cate describing Mr.. Hamiton's illness, and
stating that the patient could not undertake
a voyage or leave France within two
months.
Mr.. Mccall said he asked Hamilton for
his check books but Hamilton refused to
give them up. saying that the stubs related
to his own personal business Mr.. Mccall
did however, get statement from Hamil-
ton regarding the expenditures of funds in
trusted to him by insurance companies.
The statement then was produced and put
in evidence.
HamiItons Statement.
Mr. Hamilton in his statement tells why
he can not produce vouchers or Cancelled
checks to show to whom and in what
amounts he had paid out money. The state
ment is to the effect that In consequence
of the accepted understanding of the COM
panies interested with the New York Life
in watching legislation, no demand was
made by me for vouchers from other people.
nor were there any books or accounts kept
by me covering same.
1t continues: Nor are there any of my
checks to produce. Payment by my check
would necessarily have disclosed the fact
that the person receiving the check was
under retainer by me, and would thus have
necessarily hampered that portion Of my
work that was most efffcacouS. namely, alb
Cash
Gates were generally preferred. l can not
produce my check kbookS or Cancelled checks
which relate to affairs other than those OF
the New York Life Insurance Company
can not produce any books of these partic-
ular accounts because none were ever kept
by me- Even If did possess them, It does
not appear to me that the demand for them
would be a fair and honest one. The un-
derstanding that had in undertaking this
work distinct and thorough. If it had
not been so I should have declined the
task"
Mr. Hamilton in opening his statement
expresses regret that he can not return to
the United States at present because of his
health.
Services Needed at Albany.
At the time of his employment in charge OF
the bureau of taxation and legislation of the
New York Life the life insurance companies
feared that unless concerted action was
taken they might be practically legislated
practice of depending alone upon counsel to
attend and present arguments was deter
mined to be insufficient says Mr.. Hamil-
tor
''The very fact that the great life insur-
ance interests of New York favored or op-
posed pending legislative propositions would
itself often concentrate the opposition
against their views; so likewise did the
knowledge that we We're represented at the
capitols of various states led to demands
that political favortes should be employed
in the role of counsel, which, If acceded TO.
placed affairs at the mercy of those
who did not possess our confidence.
"Thcse and other considerations led the
three companies to but one conclusion. We
felt that if a secret service was a permis-
sible governmental agency confidential
service would be the only effective and at
the same time proper plan TO guard the well
fare of the most extensive commercial in
terests in the world-the life insurance busi-
ness of the state of New York.
A Confidential Service.
This confidential secret service was de-
cided upon as the only feasible plan of pro-
lection. 1 explained to the president of the
New York Life Insurance Company. as did
the other gentlemen who were associated
with me in this work to the officers of their
respective companies, that itemized ac-
counts by names. or amounts by separate
vouchers details particulars, should not
be demanded if we were 10 be held respon-
sible. The protection of the companies un-
der such plan was ample"
Mr. Hamilton gives a long summary of
the various styles of bills hostile to insur-
ance companies, many of them taxation
measures. Bills to compel the company's
reports to be repeatedly and unnecessarily
published in newspapers are advocated
says Mr.. Hamilton, ito gain favor with the
press for increasing their revenues. Out
rageous propositions, such the ten per
cent tax proposed in Arkansas, or absurd
propositions ike the Michigan bill where
a doctors certificate of ill-health would
cuse the payment of the insurance premium
and keep a policy in force; or the Virginia
bill, making It actionable for a life insur-
ance agent to enter the office of man
where the sign no agents allowed is dis
played, find legislative favor. However
ridiculous these pii!S may seem, they de-
mand attention.
''In Indiana the attempt was made to pass
a law placing the surrender value of a life
insurance policy upon the list of personal
property which was taxable to the owner
Companies which offered no such advan-
tages TO policy holders supported it as en-
attack upon their rivals who offered this
advantage. The measure, however, was de-
feated.
.'Immediately the state assessors concluded
to tax policy holders, proclaiming that the
eyisfipe law was broad enough In its terms
to cover this. If this was true OF Indiana,
IL was probably true of many other states
in the union. The New York Life insurance
eminent and influential counsel, and sue
ceesied by divided court in defeating the
nroiect Following out this Idea developed
in Indiana several states-notably Arkan-
sas-introduced similar measures. all of
which were defeated.
Representatives at Every Capital.
.At the capital of every state We have
either retained representatives for the COM
panies or are in corporation with some
one who has retained representatives duly
influential 1t has been found advisable
as the result of experience to avoid as far
as possible any exact public information
as to who represents US. The known pres
enee of corporation represented at legis-
Iatiye halls is the signal for renewed vigor
in the attacks of blackmailers and eranks,
and unfortunately members of the legisla-
tive body are frequently deaf to reasoning
where non-voting or corporate interest
IS at stake
Many movements that would otherwise