The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-27
Handed Over to Him by the Big
Life Companies.
HE PAID IN CASH.
Secrecy Was Main Stock in
Trade in His Operations.
It Prevented His Employers
From Being Held Up.

insurance company, who few days
ago returned from Europe, where he
went to get an accounting of money
advanced to Andrew. Hamilton. was
the first witness before the insurance
investigation committee today when
the last week of the committees work
was taken up. - ec9e fa1fsaH
Mr.. Mccall said he saw Hamilton in
France and that Mr.. Hamilton was
seriously i'll thodgh able to walk
about. Mr.. Mccall also presented
physicians certificate describing Mr..
Hamilton's Illness and stating that the
patient could not undertake a voyage
or leave France within two months.
Mr.. Mccall said he asked Hamilton
for his check books but Hamilton re-
fused to give them up, saying that the
stubs related to his own personal
business. Mr.. Mccall did, however,
I get statement from Hamilton re-
garding the expenditures of funds en-
trusted to him by insurance COM
panies. The statement then was pro-
duced and put In evidence.
Mr.. Hamilton in his statement tells
I he cannot produce vouchers or can
eeled checks to show to whom and IN
what amounts he had paid out money
The statement is. to the effect that in
consequence of the understanding or
| the companies interested with the New
York Life in watching. legislation, no
demand was made by me for vouchers
I
books OF accounts. kept by me cover
/ ing the same" It continues:
There Are 40 Checks.
''Nor are there any of my checks
to produce. Payment by my check
would necessarily have disclosed the
fact that the person receiving the
check was under retainer by me and
would thus have necessarily hamp-
/ cred that portion OF my work that
was most efiieacious namely, absolute
secrecy. Cash, drafts and certificates
were generally preferred. / can not
/ produce my chec4i BOOK or cancelled
checks which fek86eS to affairs other
than those OF the New York Life IN
surance company. I can not produce
any books Of these particular accounts
| because none were ever kept by me-
Even if I did possess them, it does.
not appear to me that the demand for
them would be a fair and honest one.
The understanding that 7 had under
taken this work was distinct and
thorough. If it had not been so I
would have declined the task
Mr.. Hamilton in opening his state
ment expresses regret that he can not
return to the United States at present
because Of his health At the time of
| his employment in charge of the bu-
reau of taxation and legislation of the
New York Life, the life insurance
! companies feared that unless concert
ed action was taken they might be
| of existence.
"The usual practice OF depending
alone upon counsel to attend and pre-
sent arguments was deemed to be in
| sufficient" says Mr.. Hamilton 1.-THE
very fact that the great life insurance
1 interests of New York favored or OBJ
posed pending legislative appropria-
tions would itself often concentrate
the opposition against their views so
likewise did the Knowledge that we
were represented at the capitals Of
various states lead to demands that
/ political favOrites should be employed
IN the role of counsel. which If acceded
to placed our affairs at the mercy of
those who did not possess our con
+ fidence.
These and other. considerations led
the three companies to but one conc1u-
SION We felt that if a secret service
was a permissible governmental agency
a confidential service would be the only
/ eHect1Ve and at the same time proper
plan 70 guard the welfare of the most
I extensive commercial interests in the
world-the life insurance business of
1 the state of New York. This confden-
/ tlaI secret service was decided upon as
/ the only feasible plan of protection
/ 4 explained to the president of the
! New York Life Insurance company as
/ did the other gentlemen who were as
/ ISOLATED with me in this work to Off
/ ciate their respective companies that
! ftemized accounts by names or amounts
j by separate vouchers, details or Dartic-
I ulars should not be demanded if we
were to be held responsible. The pro-
1 lection of the companies under such a
/ plan was ample.
Hold Up Schemes.
Mr.. Hamilton gives a long summary
of the various styles of bills hostile to
/ insurance companies, many of them
taxation measures.
Bills to compel the companies re-
7 ports to be repeatedly and unneces-
/ sarily published in newspapers are adj
! vocated, says Mr.. Hamilton, ito gain
/ favor with the press for increasing
/ their revenues. Outrageous PROPOSE
/ tons, such as the 10 per cent tax pro-
/ posed in Arkansas or absurd PROPOSE
lions like the Michigan bill where a
/ doctors certificate of i'll health would
excuse the payment of the insurance
+ premium and keep a policy in force,
/ or the Virginia bill making it action
able for a life insurance agent to enter
! the office Of man where the sign no
| agents allowed is displayed, find leg
I islative favor. However ridiculous
these bills may seem they demand at
tention In Indiana the attempts made
to pass a law placing the surrender
value of q life insurance policy upon
the list of personal property which was
[ taxable to the owner Companies
/ which offered no such advantages to
/ policy holders supported it as an at
| tack upon their rivals who onered this
advantage. The measure. however.
was defeated. hmm ediately the state
I assessors proceeded to tax policy hold
] ers, proclaiming that the existing law
was broad enough in its terms to cover
| this If this was true OF 4ndlana, II
was probably true OF many oener states
I in the Union The New YORK Life COM