The Birmingham age-herald., 1905-10-05
Ntpotism is Another of Weak ntssts Charged to New
 York Life President
INVESTMENT OF S2O3,O56
 PAID BUT .023 PER CENT
Money Was Loaned to Metropolitan at 1H Per Cont lnterest-lnteresting Disclosures In Insurance
 Investigation.

New York, October 4-That John R. uegeman, president of the Metropolitan Life Insurance company, borrowed s50,Oo0 from tie New York Life Insurance com paay at lia per cent. rate below the market rate, was brought out in the i.s.irancn investigation last week, but today President John A. Mccall of the New York Life Insurance company, testl- fled that he in turn borrowed S5,Ooo from the Metropolitan at the same rate. This was in January, 1903, the loan was re- newed in January 1904 and ran until March 1903, when the rate of interest was ad- yanced to per cent, at which rate 1t is still running.
 MT Mccall testified that he was di- rector of the Metropolitan Life Insurance company but not a stockholder. The fact of his being a director, Mir. Mccall con- tinued, did not deter him from procur- Ing a loan at as low rate of interest as possible, when it was to his own in- terest to do so.
 Somewhat of sensation was caused In the late hours of today's session of the legislative committee, which Is investigat- ing the methods of life insurance com panies, when N. F. Towner of Albany, was called to the stand, and disclaimed any knowledge of the whereabouts of cancelled checks of Judge Andrew Ham ilton of Albany. MT Towner testified that he was associated with Judge Hamilton 1 in the practice of law in Albany. The Hamilton account was again under investigation and MT. Mccall had been excused for a few minutes while MT. Towner took the stand
 Put Checks In Drawer.
 MT. Towner testified that he made de- posits for Judge Hamilton. but not while the latter was in Europe He had taken some cancelled checks from the Albany Trust company early in September and had thrown them into a drawer in Judge Hamilton's desk. He had had no occasion to look at them again until last week. when he received the subpoena to appear before the committee. He was asked to bring these checks with him, but when he looked for them they were gone. He had no knowledge he declared, of where they could have gone, or who could have taken them Pressed by MT Hughes. he said almost anybody had access to tho drawer in which the checks were placed MT. Mccall resuming, was asked about a deposit to the credit of Judge Hamilton of sl62 041 on September 1, 1905. MT. Mc- Call said the New York Life Insurance company had paid Mir Hamilton no mo- ney, but suggested that part of 1t might have come from the controllers offica by reason of an assignment of tax mo- neys, which come to the judge by reason of his securing the repeal of the tax law. which relieved the New York Life from payment of taxes. Judge Hamilton was tn hau ird nf would be rebated to the company 272,- GOO. netting MT. Hamilton about ss0,ooo.
 Mccall Practices Nepotlsm.
 Another interesting point was brought out by MT. Hughes just before the com- mittee adjourned for the day Edward F. Devlin. the real estate manager for tho New York Life Insurance company. was again called to continue his testimony of last week, relative to the real estate value of the company's properties in this country and abroad. MT Devlin had had to consult records and he presented a number of transcripts of the records.
 1t developed that the New York Life had acquired by foreclosure an apart ment house in one of the most desirable residential sections of this city, and the cost with the Improvements deemed nec- essary, was s208,056. The net income from this property was found to be .023 per-
 
 provements was the throwing of two apartments into one of nine rooms with two baths. These were rented for $500 and $500 year. It then developed that four of the tenants were the immediate family of President Mccall. three sons and q sister-in-law. MT Devlin was ask ed who fixed the rental of these proper ties. and he said he discussed them with MT Mccall
 No Record of Contribution.
 MT. Mccall enllvened the days proceed ings further when he said tlsht there was no records on the books of the New York Life Insurance company of the $i50,@0 paid the republican national committee for contributions to the campaigns. While he had no personal knowledge that the money was paid he assumed IL was. be- cause he had told the treasurer to make these payments.
 Earlier in the day MT. Mccall. In detail- ing the general legislation of Judge Ham, iton and the counsel employed. denied any knowledge of the pool which was disclosed in the examination of Alfred W. Maine, auditor of the Equitable Life Assurance society. last week.
 MT Mccall this question made the startling assertion that three-duarters of the bills affecting life insurance compa- nies were in the nature of blackmail. The officers of the companies were worried at the beginning of each year, he said, by the proposal of laws that would ham, per their companies. and the officers really trembled at what they would have to endure the first six months of each year"
 Favors Standard Policy.
 While MT. Hughes was engaged In lock- ing up some documents Chairman Arm- strong took the opportunity to ask Mir. Mccall If he had ever given any thought f1n .f that should be written by all companies. Mr McCall said that he had and that ha