Omaha daily bee., 1905-10-05
.ANctLED CHECK STUBS DIS 9
Record Of Transactions with lie
Agent Vanish.
CHARGES BLAcKMAlL BY LEGISLATORS
President Mccall says Every Year
Companies Expend Large sums
20 Head on HoIdup
Bills.

NEW YORK, oct. 4-That John K. Hege-
man. president of the Metropolitan Lie In
surance company borrowed $4,000 from the
New York Life Insurance company at Ia
per cent interest. a rate below the mar
ket rate. was brought out in the Insurance
Investigation last week, but today Presi-
dent John A. Mccall Of the New York
Life Insurance company testified that he In
turn borrowed $4,000 from the Metropolitan
at the same rate. This was in January
1903: the loan was renewed in January
1904 and ran until March, 1905, when the
rate of interest was advanced to 2 per
cent. at which rate II Is still running.
Mr. Mccall testified that he was di-
rector of the Metropolitan Life Insurance
company. but not stockholder The fact
of his being a director, Mr.. Mccall contin-
ued. did not deter him from procuring
loan at as low a rate of interest as possi-
bic when It was to his interest to do so.
Cancelled Checks Disapper.
Somewhat of a sensation was caused In
the late hours of tOday's session of the leg
islative committee which is investigating
the methods of life insurance companies.
when Neil f. Towner of Albany was called
TO the stand and disclaimed any knowledge
of the whereabouts of cancelled checks OF
Judge andrew Hamilton of Albany. Mr..
IOWneT NtSNl-4td NildA A0 Ntho sh''SNANNNNN
with Judge Hamilton in the practice of
law in Albany The Hamilton account was
again under investigation and Mr.. Mccall
had been excused for few minutes while
Mr.. Towner took the stand
Mr. Towner testified that he made de-
posits for Judge Hamilton, but not while
the latter was I'm Europe He had taken
some cancelled checks from the Albany
Trust company early in September and
had thrown them into a drawer in Judge
EIamilton's desk He had no occasion to
look at them again until last week, when
he received the subpoena to appear be-
fore the committee. He was asked to bring
these checks with him, but when he looked
for them they were gone. He had no
knowledge, ne declared. of where they
could have gone or who could have taken
them Pressed by Mr.. Hughes. he said al
most anybody had access to the drawer
In which the checks were placed.
Mr.. Mccall resuming. was asked about
deposit to the credit of Judge Hamilton OF
y62,0 ,0n on September l. 1905.
Mr.. Mccall said the New York Life In
surance company had paid Mr.. Hamilton
no money, but suggested that part of It
might have come from the state control
ler's office by reason OF an assignment OF
tax moneys which would come TO the
Judge DN reason OF MS securing lne repeal
Of the tax law which relieved the New
York Life from the payment of taxes.
Judge Hamilton was TO have one-third of
the amount that would rebate to the COM
pany. a sum of s272.OOO. netting Mr.. Hamil-
ton about 10000.
McCau's Relatives Favored.
Another interesting point was brought
out by Mr. Hughes just before the close.
Edwin It. Devln. real estate manager for
the New York Life Insurance company,
was called TO continue his testimony of
last week relating to the real estate values
OF the companys properties in this country
and abroad. Mr.. Devlin had had to con-
suit the records and he presented a num-
Der OF transcripts OF the records. II de-
Veloped that the New York Life had ac-
quired by foreclosure an apartment house
In one of the most desirable residential
sections OF this city, and the cost, with
improvements deemed necessary, was s9O3,-
O56. The income from this property was
found to be .O23 per cent on the investment.
Among the improvements was the throw
ing two apartments into one of nine rooms
with baths. These were rented for $l5OO
and 1880 year. II then developed that
four of the tenants were the immediate
family Of President Mccall three sons and
son-in-law. MIR. Devlin was asked who
fixed the rental of these properties and he
said he discussed IL with Mr.. Mccall
Mr.. Mccall enlivened the days proceed
ings further when he said there was no
record on the books OF the New York Life
Insurance company OF the $4,000 paid the
republican national committee for contri-
buttons to presidential campaigns While
he had no personal knowledge that the
nloHey was paid, he assumed Il was be-
cause he had told the treasurer to make
these payments
Earlier In the day Mr. Mccall. in retail
ing the legislation work OF Judge Hamilton
and the counsel he employed. denied any
knowledge Of the legislative pool which
was disclosed in the examination Of Al
fred w. Maine, auditor Of the Equitable
Life Assurance society last week.
Mccall ChRrRes BIackmaiI
Mr.. Mccall IN this question made the
startling information that three quarters OF
the bills affecting life insurance companies
were in the nature Of blackmail. The Off
GERS OF the company were worried al the
beginning OF each year. he said, by the
proposal OF laws that would hamper their
companies, and these officers really
trembled az what they would have to en-
dure the first six months Of each year"
While MIR Hughes was engaged in look
ing up some document, Chairman Arm
strong took the opportunity to ask Mr.
Mccall n he had ever given any thought
as 20 the feasibility of a standard policy
that could be written By all companies.
MT Mccall said he had, and he thought
some such policy would be a good thing
Rufus r. Weeks, actuary and second vice
president Of the New York Life Insurance
company. was another witness today. He
went into the technical description of the
various forms OF policies, the tables upon
which the cost Of life insurance is com
puted and various other computations OF
his department.
The committee adjourned until tomorrow
morning, with Mr.. Devlin stiu explaining
the real estate holdings OF the company.
Fifteea Horses harm.