The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1905-10-25
CHEAP INSURANCE LOANS
President Mccall, of New York Life,
Makes Startling Statements.
MONEY SPENT FOR LOBBYING
Investigator and Attorney Hughes Of tho
State Insurance Inquiry Committee
Makes Some Remarkable Discoveries
Regarding Modern "High Finance"-
How tho McCalls Benefited.

Regarding Modern "High Finance"-
How tho McCalls Benefited.
New York City.-Something ap-
preaching definite explana ton of the
mysterious legislative activities of
Judge" Andrew Hamilton, legislative
agent of the Mutual, Equitable and
New York Life companies, and of the
hitherto inexplicable yellow dog
funds came, when John A. Mccall,
President of the New York Life, tes-
tilted that three-quarters of the meas
ures proposed in Legislatures of the
United States were "strike" or black
mailing bills, designed to ''bleed" insur-
ance companies.
Following tits frank arraignment Of
Legislatures Mr. McCalr outlined ir de-
tail the vast sums that have been
handled by Judge. Hamilton in fight
ing hostile legislation at various State
capitals in the last five years. From the
New York Life alone Judge" Hamil-
ton received $711,OOO in this period, in
addition to a single fee of $134, 900 for
counsel services. 1t will be recalled
that testimony Of Equitable officials
revealed the facr that Judge" Hamil-
toms expenses were divided between
the three great companies, and If he
received equal sums from the other
two his expenditures for Legislative
work" against insurance legislation in
the last five years would aggregate
over $2OO0,0O0.
Mr.. Hughes pressed home the probe
into this form of insurance activity in
a merciless fashion. He not only
turned a food of light upon the pro-
ceedings which permitted an official
of the New York Life to swear that
the company had made no campaign
contributions in a year when it had &C.
tually contributed $50, 900, but he gave
Mr.. Mccall a bad half hour explain
ing the circumlocutions by which Gov
ernor Culberson and the Texas State
officials were hoodwinked about this
performance.
Most striking, however, was the ad-
mission, he wrung from 1.-The witness
regarding the uses to which the vast
legislative funds were put. In form,
Mr.. Mccall continued his former dec
laration that so far as he knew not q
cent had been used corruptly to sin
f1uence legislation" In fact, he ad-
mitted that the money was turned
over to Judge Hamilton to use in
legislative halls in such way as "to
produce results" producing results"
4ho
meant nothing more or less than the
sitting of inimical legislation, whether
the ordinary strike" form Of black
mail. or the recommendations of State
insurance departments. Following
this line Mr.. Hughes led the witness
to the admission that while the New
York Life officially dealt only with at
torneys Judge" Hamilton was free
to employ any one who could do the
work, whether an attorney or not.
Entire freedom" were the words with
which he described Judge" Hamil-
toms power.
Then Mr.. Hughes took a forward
step in the tracing, of the methods of
the great insurance lobby that has
been so frequently described as ex-
listing at Albany and at other State
capitals BY close cross questioning
he obtained from Mr.. Mccall the ad-
mission that there were in many States
men in q position to deal with legisla-
tive measures in such fashion as to
exercise pressure to the extent Of pre-
venting the reelection Of men acting
counter to their wishes. Mr.. McCall
was not sure. that those men could
drive recalcitrant legislators out Of
politics, but he admitted their position
would be seriously strained That
the system reached to the national
Congress Mr.. Mccall admitted in tes-
tifying to the employment of an agent
to fight a Federal bill solely because
M was a man of very large acquaint-
ance in Washington"
apart from the legislative phases Of
his testimony, the most amazing sim
gle feature Of Mr.. McCalps examina-
ton was his admission regarding the
hitherto unexplained loan of $4,000
to John r. Hegeman, president of the
Metropolitan Life Insurance Company,
at nominal rate of interest. MIR. Nc
Call, apparently nettled by Mr..
Hughes questions regarding the rea-
son for the loan of this sum at NOM
inal rate Of interest, declared that he
regarded the interest rate as all right,
and said with some feeling that he
had obtained a similar loan from Mr..
Hegeman at a similar rate. This ap-
parent "break" was seized on by Mr..
Hughes at once, and the fact shown
that Mr.. Mccall. a director in the
Metropolitan, had obtained a personal
loan from this company Of $4,000.
$4,000 of it nearly three years ago.
and that the rate had not been raised
until after the insurance agitation had
become pronounced. When Mr.. Hughes
attempted to emphasize an impropri.
ETY. in this proceeding Mr.. Mccall de.
clared with evident sincerity that he
would have taken the money at a
lower rate of interest if he could have
obtained it.
The yearly salary roll of the Mccall
family drawn from the New York Life
was shown to be S137, 500.