The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-27
KING OF LOBBIES
DEFENDS HIS ACTS
Hamilton Declares Insurance Com.
panies Had to Create "Se-
H cret Service.
FOUGHT LEGISLATION
IN EVERY CAPITAL
The Insurance Sleuths Blocked
Schemes with Cash-Kspt
No Records.


New York, Dec. 27.-John G. Mccall,
secretary of the New York Life Insur-
ance company, who few days ago re-
turned from Europe, where he went to
get an accounting Of money advanced to
Andrew Hamilton, was the first witness
q, in the insurance investigation today
when the last week of the committee s
work was taken up.
Mr.. Mccall said he saw Hamilton N
France and that Mr.. Hamilton was serl-
ously i'll, tho able to walk about Mr..
Mccall also presented physician s GER
tifcate describing Mr.. Hamilton's i'll.
ness and stating that the patient could
not undertake a voyage or leave France
within two months.
Held Back Check Books.
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 bust
ness. Mr.. Mccall did, however, get a
statement from Hamilton regarding the
expenditures of funds entrusted to him
by insurance companies. The statement
then was produced and put in evidence.
Mr.. Hamilton in his statement tells
why hn cannot produce vouchers or can
celled checks to show to whom and in
what amounts he had paid out money.
Asked No Vouchers.
The statement is to the effect that in
consequence of the accepted understand
ing of the companies interested with the
New York Life in watching legislation.
Hno demand was made by me for vouch-
ers from other people, nor were there
any books OF accounts kept by me COW
ering same.'
The Statement Continues.
FNor 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 un-
der retainer by me and would thus
have necessarily hampered that portion
of my work that was most effcacious,
namely, absolutely secrecy. Cash, drafts
and certificates were generally pre-
ferred.
He Kept No Books.
"I cannot produce my check books
or cancelled checks which relate to af-
fairs other than those of the New York
Life insurance company. L cannot pro-
duce any books of these particular &C
counts because none Was.ever kept by
me. Even if did possess them #
does not appear to me that the demand
for them would be a fair and honest
one. The understanding that had un-
dertaken this work was distinct and
thoro. If it had not been so, [ would
have declined the task. 80
Mr.. Hamilton, in opening his state.
ment, expresses regret that he cannot
return to the United States at present
because of his health.
; Big Three Scared.
At the time of his employment in
+ charge of the bureau Of taxation and
c1ot of+ Lo
: life insurance companies feared that I'm,
less concerted action was taken they
might be practically legislated and
taxed out of existence.
"The usual practice of depending
alone upon counsel to attend and pre-
sent arguments was determined to be
Insufficient says Mr.. Hamilton "The
very fact that the great life insurance
institutions of New York favored OF
opposed pending legislative propositions
: would itself often concentrate the op
position against their views; SO like
represented at the ca pitfalls of various
states lead to demands that political
faYorites should be employed in thu
role of counsel, which, if acceded to
placed our affairs at the mercy of thos,
who cid not possess our confidence.
Secret Service Lobby.
"These and other considerations lei
the three companies to but one conclu
sion. We felt that if a secret service
was permissible governmental agency
a confidential service would be the on
effective and at the same time prope
plan to guard the welfare of the mos
extensive commercial interests in tn
world-the life insurance business O.
= the state of New York. This confiden
tial secret service was decided upon a
the only feasible plan Of protection. '
explained to the president of tn
New York Life Insurance company. 8
did the other gentlemen who were as
soclated with me in this work, to tn
officers Of their respective companie,
that itemized accounts by names. O
amounts by separate vouchers, detail
= or particulars, should not be demande
if we were to be held responsible. Th
protection Of the companies under sue
plan was ample.''
The Holdup Bills. .'.....
Mr.. Hamilton gives long summar
of the various styles Of bills hostil
to insurance companies, many Of the
taxation measures.
K bills to compel the companies r
ports to be repeatedly and unnecessa
lily published in newspapers are a.
favor with the press for increasin
their revenues. Outrageous proposition
Sucn DIS the lO per cent tax proposed
Arkansas, or absurd propositions liz
the Michigan bill, where doctor
certificate of i'll health would excuse tt
= payment Of the insurance premium an
keep policy in force; or the Virgini
bill, making it actionable for Ii.
= insurance agent to enter the office
a man where the sign mo agents a
lowed is displayed, find legislati,
favor. However ridiculous those bill
may seem, they demand attention.
ii. Attack in Indiana.
- Gin Indiana the attempt was mao
to pass. law placing the surrend'
value of a life Insurance policy upc
: the list of personal property which ";
taxable to the owner. Companies whie
I offered no such advantages to polio
r holders supported it as an attack upc
! their rivals who offered this advantag
The measure, however, was defeate
+ Immediately the state assessors pr
= coeded to tax policyholders, proclaim
ing that the existing law was bro:
enough in it's terms to cover this.
II this was true of Indiana, it was pro