The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-10-05
Unfolding Of Life Insur-
anCe Panorama.
PLUM FOR HAMILTON
Mccall OF the New York Life Declares
That Three QuartarS of the Bills
Affecting Life Insurance Com
panies are in The Nature of
Blackmail.
Blackmail.
(By the Associated Press. }


New York, Oct. 4.-That John r.
Hegeman, president of the MetroDol-
itan Life Insurance Company borrow
ed $4,000 from the New York Life
Insurance Company at / 1-2 per cent.
interest, rate below the market rate.
was brought out in the insurance in
vestigation last week: but today Pres
ident John A. Mccall of the New
York Life Insurance company, testl-
fled that ne in turn borrowed 5000
from the Metropolitan at the same
rate. This was in January, 1908; the
loan was renewed in January 1904,
and ran until March. 1905 when the
rate of interest was advanced to two
per cent at which rate it is still rum
ming. Mr. Mccall testified that he
was a director of the Metropolitan
Life Insurance Company but not a
Stockholder. The fact of his being
director. Mr.. Mccall continued, did
not deter him from procuring a loan
at as low rate of interest as possible
when it was to his interest to do so.
Somewhat of sensation was caus-
ed in the late hours of today's session
of the Legislative Committee which
is investigating the methods of life
insurance companies when Nellie +.
Towner. of Albany, was called to the
stand and disclaimed any knowledge
of o. the whereabouts Of cancelled
checks of Judge Andrew Hamilton. OF
Albany. Mr. Tower testified that the
checks had disappeared from draw
er in Hamilton's desk.
HamiIton's Pretty Peach.
Mr.. Mccall. resuming. was asked
about a deposit to the credit of Judge
Hamilton, of $162,041 on September
N,Il e,aid f7a a
York Life Insurance Company had
paid Mr. Hamilton no money, but
suggested that part of 1t might have
come from the State Comptroler's Of
flee because of an assignment of tax
moneys which would come to the
Judge by reason of his securing the
repeal of the tax law which relieved
the New York Life from payment or
taxes Judge Hamilton was to nave
one third of the amount that would
rebate to the company sum or SZIz,-
600. netting Mr. Hamilton about w.
900.
Another interesting point was
brought out by Mr.. Hughes just be-
fore the committee adjourned for
the day. Edward T.. Devlin. the real
estate manager for the New YORK
Life Insurance Company. testified
that the New York Life had acqulr-
ed by foreclosure an apartment mousse
in one of the most desirable resldeh-
tial sections of this city, and the cost
with the Improvements deemed ne
cessary, was $203,056. The net m
come from this pronerty was FOUND 10
he .O23 per cent. on the investment
Among the improvements was the
throwing of two apartments into one
of nine rooms with two baths. These
were rented for $500 and $1,S0O
wear. 1t then DEVELOPED that four or
the tenants were the immediate ram
ilv of President Mccall, three sons
and a son-in-law. Mr.. VeVih was was
asked who fixed the rental or these
properties. and he said he discussed
the matter with Mr.. Mccall. Mr.. NC
cau enliyened the days proceedings
further when he said that there was
no record on the books or the New
York Life Insurance Company or the
$15O,000 paid the Republican Nation-
al Committee for contTlpulioIls
presidential campaigns While ne had
no personal knowledge that the
money was paid he assumed 1t was
because he had told the treasurer TO
make these payments. oo,, !.
Earlier i'm the day Mr.. Mccall, In
detailing the general legislation work
of Judge Hamilton and the counsel
he employed, denied any knowledge
of the legislative pool which was dis
closed In the
w. Maine. auditor OF the Equltaple
life Assurance Society last week.
SIN the Nature of BIaclxmail."
Mr.. Mccall on this question made
the startling assertion that three
ouarters of the bills affecting life in
surance companies We're in the nature
of blackmail. The officers of the
companies were worried at the be-
ginning of each year he said by the
proposal of laws that would hamper
their companies, and these officers
"really trembled at what they would
have to endure the first six months OF
each year.
President Mccall said he did not re-
member the making of affidaVits by
the officers of the New York Life In
surance Company to the Governor OF
Texas in which the officers were al
legged to have declared that no cam
paign contributions were made by the
New York Life Insurance Company In
1896. He said that a representative
of Governor Culberson called to see
the books OF the company but that he
did not show him any books contain
ing the entry about the contributions
but turned him over to a legal repre-
sentative of the company who kenW
nothing about the contributions.
President Mccall testified that the
New York Life expenses for legal SER
vices from June l, 1900, to August 81.
1905. were 81, $40. OF this amount
CONTINUED on Page Six