The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-05

e T.
Hegeman. president of the Metro
politan Life Insurance company,
borrowed $4,000 from the New York
Life Insurance company al p per cent
interest. a rate below the market rate
vas brought out in the insurance in
NestigatiOn last week. but today Pres
ldent John r. Mccall of the New York
Life Insurance company testified that
heNin turn borrowed $4,000 from the
metropolitan at the same rate. This
was IN January, 1908; the loan was re-
newed i'm January. 1904, and ran until
March. 1905, when the rate of interest
was advanced TO , per cent at which
rate it is still running.
Mr.. Mccall testified that he was a di-
rector OF the Metropolitan Life Insur-
ance company, but not a stakeholder.
The fact OF his being a director, Mr.
Mccall continued, did not deter him
from procuring a loan at as low a rate
or interest as possible, when it was TO
his Interest 10 do so.
Checks Are MISSING.
Somewhat of d sensation was caused
IN the late hours OF today's session of
the legislative committee, which is in
Nestlgatlng the method of life insurance
companies, when Nellie f. ToWner of
Albany was called TO the stand and
dlselaimed any knowledge of the
whereabouts Of cancelled cheeks of
Judge Andrew Hamilton of Albany.
Mr. ToWner testified that he was asso-
ciated with Judge Hamilton i'm the
practice of law in Albany. The Ham
llton account was again under inVesti-
cation, and Mir. Mccall had been eX-
cused for a few minutes while Mr..
IoWner took the stand
Threw Them Into a Drawer.
Mr. Towner testified that he made
deposits tor Judge Hamilton. but not
while the latter was i'm Europe. He had
taken cancelled checks from the Al
bany Trust company early ina Septem-
Der and had thrown them into drawer
~ Judge Hamiltnn's desk. He had had
no occasion 10 look at them again UNI
I'll last week, when he received the sub
poena to appear before the committee
He was asked 10 bring these checks
with him, bat when he looked for them
they We're gone. He had no knowI-
edge, he declared, OF where they could
have gone or who could have taken
them. Pressed by Mr.. McKeen, he said
almost anybody had access to the
drawer in which the checks were
placed.
Hamilton's Rake-Off.
Nlr. Mccall. resmng. was. asked
about a deposit To the credit OF Judge
Hamilton of Sl62.0 Gal on Sept. I 1905
Mr. Mccall said the New York Life In
surance company had paid Mr. Hamil-
ton no money, but suggested that part
of IL might have come from the state
controllers office b. reason of an as
SignmenJ of tax moneys which would
come to the judge by reason of his Sc
curing the repeal of the tax law which
relieved the New York Life from pay
ment Of taxes. Judge Hamilton was TO
have one-third of the amount that
would rebate to the company. a sum OF
ses2.OO0, netting Mr. Hamilton about
S9O. coo.
New York Life's Real Estate.
Another interesting point was
brought out by Mr.. McKeen just before
the committee adjourned for the dav.
Edward Devlin, the real estate man
ager for the New York Life Insurance
company. was again called TO continue
his testimony OF the last week relative
10 the real estate values Of the COM
pany's properties in this country and
abroad. Mr.. Devlin had had to consult
records and he presented a number Of
transcripts of the records.
Graft of the MeCaIls.
II developed that the New York Life
had acquired by foreclosure an apart /
ment house in one of the most desira bile |
residential sections OF this city. and the |
cost. with improvements deemed neCes- /
sary, was S20.S65, the net income from |
this property was found 10 be OPS per /
cent on the investment. Among the inn |
was the throwing of two 1
apartments into one of nine rooms with I
two baths. These We're rented for 81. 500 Z
and 81 500 year. 1t then developed !
that four of the tenants were the im- |
mediate family of President Mccall /
three sons and a son-in-laW. Mr. Dew |
lin was asked who fixed the rental of /
these properties, and he said he dis /
cussed il with Mr.. Mccall
No Record Kept.
Mr.. Mccall enlivened the days pros
reedingS further when Ire said that
was no record on the books of the
New York Life Insurance company OF
he $3.50, 600 paid the Republican nation
Al committee for contributions to pres
dental campaigns. While he had no
knowledge that the money was
,aid, he assumed il was, because he had
old the treasurer 10 make these pay
nents.
Earlier in the day Mr.. Mccall, i'm de-
.ailing the general legislation work of
Judge Hamilton and the counsel he EN-.
oloyed, denied any knowledge of the
legislative pool which was disclosed in
he examination of Alfred w Maine. !
auditor Of the Equitable Life Assur-
,nce Society last week.
Blackmailing Bills.
Mr.. Mccall on this question made The
,tartling assertion that three-quarters
r the bills Affecting life insurance com
,anies were in the nature OF blackmafl |
'he officers Of the companies were WOr-
led al the beginning of each year-he
aid. by the proposal of laws that would
.amper their companies, and these Of
icers really trembled at what they
would have 10 endure the first six
months of each year.
While Mr. Mckeen was engaged in
oeking up some documents, Chairman
Armstrong took the opportunity TO ask
dr. Mccall if he had ever given any
hought q 5 TO the feasibility OF a stand
nd policy that should be written by
N companies.
Mr.. Mccall said that he had. and that