New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-21
lHORE LEGAL EXPENSES"
AIDED SMALL COMPANIES.
Right Lasryer Changed Insurance
Department "4tmosphere.


,sw trails of Albany legal expenses. There were
Two separate Instances Of this familiar procedure
The employment OF ex-Deputy Attorney Gehersh
aogan OF the law arm Of Hancock. Hogan d be-
rIne OF Syracuse. TO appear before the Insurance
Department while Lou" Payne still ruled there
.hanged q chilly atmosphere to pleasant one
or the Bankers Life. Richard Morgan. OF TINS
company who testified concerning this, recoroeu
he fact that with Julien 7. Dawes as counsel
his company had failed TO persuade the depaF-
reat but on the suggestion of a poiicyhoioeT ~.
HOGAN was employed. Then there was q coillbie'e
.hanes and Hogan received s2eoo fee and lne
company effected a compromise with the Depart
nent-
A payment of $780, Of which the Germanla AiIe
implied $50 TO William Il. Buckley was also as
.osed This was 10 obtain the passage OF zen
xlL Mr. Buckley, who has figured On tie payFollS
# the New-York Life the extent Of $500 ana IN
,ther companies for smaller sums henoieo 1iis
money and the bill, which had been ihtrouu0eN
Nv ex-senator Marshall. OF Brooklyn 1or t"o
resrs and failed in 1904 after the payment OF me
rorev Was successfully passed Senator Arm
1rone suggested that the bill went through on It's
merits and that the persons putting Up the money
rere sshuncoed." But the witness maintained Iia'
NE hill had twice failed and was worth the price
&c even suggested that $4,000 would have been
aid If asked Buckley has been successful so lar
n e,,,dinp process servers who have sought him
tr, Albany He is said TO be in Canada he mas
eeen identified as associated with other OF the
missing legislative agents in the same proH'0O4o
,ccupation OF handling yellow dog funos' ana
vas an emplcye In the State Insurance OeParF
nent under Payne.
GAVE $500 TO DEFEAT BILL
sno+ber navnent of the Germania Life which
ttractei attention contribution OF SV'V 10
,,nd IN defeat the Mortgage Tax bill, which was
assed despite general opposition. last year. Mem
ers OF the legislative committee who approved "a
his bill pressed the Introduction OF TINS eNiue0o
N this subject for the obvious purpose OF sllills
n,bIfc sentiment to defeat any effort at repeal nex'
essior After the subject had been discussed Tor
rnr,e time E l. Baylies, treasurer of the ReaI
Estate Interests Association. took the stand ana
estifed that S225So had been raised by ms asso-
aation TO fight this measure. He produced an &C
cunt showing that the money had been expended
srgely in circulars against the measure upward
4 $4,000 going for advertising and postage alone
de showed 5000 went for legal expenses Of at
urneys throughout the State, while the remaining
s0oo was expended by the late E. H Van 1ngen'
Ebo represented the association at Albany. OF
his latter sum Mr.. Baylies testified Mr. Van
pgeu received between $4,000 and 5000 in reTnunera-
Ion for his legal services. The advertising ex-
.enses included considerable regular newspaper ad-
,ertfsne. B. Ayuar Sands was also called, but
nnfined himself to confirming Mr.. Baylies's testi-
nony.
The money was raised largely from real estate
interests from banks and bankers. from individual
snders and borrowers, from builders and trust
pInpanies. Only two insurance companies, the
iermania Life and the Metropolitan Life con-
ributed- Each of these gave 500.
Apart from these incidents. the main interest Of
he days proceedings lay in the plea for Thomas
r RYAN made by President Tatlocl1 Of the Wash
ngtou Life. Mr.. Tatlock reopened his testimony
egarding the purchases Of the insurance company
rom the Morton Trust Company through MI
syan's sons as brokers. He did not change the
acts of the case beyond adding another to the
ivan stocks that the insurance company had pur-
nlased a $4,000 deal in Louisville, Memphis and
northeastern and declaring that the purchase OF
american Tobacco, testified yesterday, was sug-
sstel by Ex-Governor Levi P. Morton, Mr.. Ryan's
ssociate In the insurance company. Paul D. Cra-
rath Nj Ryan's counsel, listened to this tesu-
nony as did William n. Amory. who figured in the
lhel suit against H. II. Freeland. after an attack
N Ryan interests several years ago. Mr.. Tatlock
insisted that Mr.. Ryan had had nothing TO do with
he investments, and justified the stock purchases
~ characterizing real estate as speculative"
ehis Characterization was contradIcted by another
insurance official later.
BANKERS LIES TROUBLES.
The episode in which the State Insurance Depart
neut was concerned supplied in the testi-
nony OF Richard Morgan, Of the Bankers Life.
n 1898 the company got into difficulties with the
department. over its cash surrender values. There
ras long wrangle. The insurance company
E. Davies, as counsel. went with Mr. Morgan TO
I'VE were treated very coldIy," commented the
Eitness. Several other efforts to meet the wishes
the deparmsat and Re reinco GF faed
which had employed official of the State Insur-
ss ed 5 eae kept ran o Unfit the eein nspfred
uggesuon from 2ollcyholder, TO go TO Syracuse
Ind employ q member OF the law firm Of ex-At-
orney General Hancock, E W. Hogan, as an at
orney who would be listened 10" at Albany.
Was the atmosphere better at Albany. then?'
Hr Hughes asked.
1T seemed to have changed decidedly" was the
With Mr. Hogan and Examiner vanderpoel. of
TrzEFa Tlk~A ~-rT9HV and cd
fitness met At AIbanI and The difichif1;' VS.
atmospheric and other services, which covered a
ersne facf hat Henry B. TownseH pre 81
II the Life Association of America, had been
seption to policyholders in sending out circular
% p9cyholders PuTp99Ir,ng to come from the board
board OF directors knew nothing about the matter"
LIKES GERMAN BUSINESS.
The testimony Of Cornelius Dorenus. president
II the Germania Life, mainly interesting as it
supplied the fact of the payment of 500 to the fight
against the Mortgage Tax bill and $50 for the
passage Of the Lien bill This latter payment was
made TO E. c. Potter real estate man, who subse-
suently testified that the money ultimately reached
William H. Buckley. Aside from these payments
nothing OF interest or Of questionable character
was disclosed regarding the GerTnania Life. Mr..
Doremus. one stage of his examination explained
thst his company did larger part Of business in
what is the character Of the business IN Ger
nany2' Air. Hughes asked the witness.
1T is better IN every respect" was the frank
answer 1t costs less TO secure and remains
longer" Mr.. Hughes continued.
Q.-why, is, that? A---!They haven't been edu-
sated up to the wild methods prevailing over here.
Q.-What do you mean by wild methods? A
Paying too much for the business.
Q,-Does rebating exist there? A.-No; I
bor't think IL is known at all
OFT has been carried over there from
here2 Al think not
Oft is indigenous to this country? A-Yes,
snc II was never prevalent IN this country II
Is to-day 1t is the desire of every one 10 get to
the top of the heap.
Q.-Is there any way of stopping it2 A-Nof