Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-09-21
JoHN A. M'cALL DREW CHECKS
DAILY WITHOUT APPROVAL
OF FINANCE COMMITTEE.
WESTERN LIFE FRAUD

MisapplIeatIon Of Funds Charged
Paul Morton, President Of Equitable,
VIII Sue for a MiIhon-orders Ac-,
zion Begun.
New York, Sept 20-John A. Nc
Call, president of the New York Life
Insurance company, was a witness to-
day before the legislative insurance in
vestigation committee. After being
sworn in and after he had given pre-
liminary information as to his business
and residence, he said that 1t was true
that he had drawn checks on the COM
pany's account without the approval of
the finance committee. He said this
was an almost daily occurrence He
Is the sole Judge of what checks should
be drawn without authorization.
During McCall's testimony it was
brought out that $235,00O had been
paid by the New York Life Insurance
company to Andrew A. Hamilton and
that no accounting for this money had
USSu 1AduC CACSpI W nSSoll NCA pollJ
and that Hamilton attends the ses-
sions Of the legislature at Albany in
the interest Of the New York Life In
Burance company Mccall said vari-
GUS sums making up the $235,00o paid
TO Hamilton had been given him In
connection with different real estate
deals but after considerable question
ing the fact was developed that none
of the money had been actually ap-
piled to such deals. Mccall also said
Hamilton was allowed money for ex-
penses at Albany and that Hamilton's
accounts were not subject to auditing.
Mccall denied that he gave Hamilton
money to influence any member Of the
legislature or that he advised any
such course. The S235 ,000 Mccall said
che was sure would be paid by Ham
ilton on demand Of the company. If it
Isn't said Mccall, 'I am responsible
and I will pay it."
Hamilton received from his legal
services he said, about 100000 year.
On the subject of the company's cam
paign contributions in recent presiden-
tial years Mccall said they were given
for the purpose of defeating the silver
platform and for the support of the
gold standard rather than that Of the
republican party
Western Life Frauds.
Chicago, Sept. 20 Charges of fraud,
mtsapplication of trust funds and at
tempts to transfer assets to another
concern we're made in suit for re-
ceiver and an accounting, filed yester-
day afternoon against the present and
former officials Of the Western Life
Indemnity company, an assessment in
surance association. E. l. Rosenfeld
and w. H. Gray, the latter being the
associations organizer, are promi-
nently mentioned in the bill in con-
nection with the alleged fraudulent
voting Of funds to themselves After
considerable argument by counsel on
both sides, it was agreed the case be
continued until Tuesday. The de-
PENDANTS agreed the meeting of the
company, which was to have been held
Thursday should be convened and i'm
mediately adjourned.
Gained Control by Proxies.
Gray is alleged to have secured
proxies from thousands Of members.
and thus controlled the directors. BY
securing this control, 1t is alleged,
Gray had passed a resolution voting
him the right by contract to draw 81
for each $1,000 insurance issued This
WAS done in secret, 1t &c alleged, and
although the complaining policy hold.
ers recently learned of 1t they were
refused information by Rosenfeld,
Gray and others. Besides these many
thousands of dollars alleged to have
been improperly taken, 1t is declared
Gray and his associates by other fraud.
ulent means, took many other thou.
sands of dollars from the concern
without the knowledge of the policy
holders.
Suit Against Mercantile Trust.
New York, Sept. 20.-Paul Morton,
president of the Equitable Life Assur.
ance society, yesterday made public
the fact that he has directed Wallace
MacFarlane, as counsel for the Eqult-
able, to begin suit against tho Mercan-
tile Trust company to compel restitu.
ton by 1t OF sums agregating, princi.
pal and interest, more than $1,000 900
MT. Morton asserts that these sums
we're applied under the former Equit
able management to improper or un.
authorized loans, and his report which
Ia addressed to the board of directors
throws light on some extraordinary
financial transactions of the former re-
gime. both before and after the death
Of Henry B. Hyde.
Big Loan la Yet Mystery.
In this connection Mr., Morton also
refers to the notorious s665,0oO loan
carried by the Mercantile Trust which
has been the object of much speoula
ton as to the uses to which it was
put by James w, Alexander and
Thomas D. Jordan, and which Mr.
Morton now designates as the -, w
A, No, 3 account"
Unfortunately his statement does
- Illuminate ths uses 10 which this