The Montgomery advertiser., 1905-10-05
BLACKMAIL
 IS CHARGED Says the Legislators Are
 Crooked. McCALL'S ALLEGATIONS New York Life Loaned Money
 at 1 l-2 Per Cent. President of Company Declares to Committee That Two-Thirds of / Insurance Bills Are Intro-
 duced for BIackmaii.

l
 1 New York, Oct 4.-That John R. | Hegeman, President of the Metropoii- tan Life Insurance Company, borrowed I S5O, 900 from the New York Life Insu- l rance Company at 1 t-2 per cent, rate | below the market rate.' was brought out in the insurance investigation last week, but today President John A. Mc- Call of the New York Life Insurance | Company testified that he fin turn bQr- | rowed S75,000 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 or | interest was advanced to per cent at which rate 1t is still running.
 Mir. Mccall testified that he was a director of the Metropolitan Life In surance Company but not a stockhofd- CT The fact of his being director. Mir. Mccall continued. did not deter him from procuring loan at as. low rate of interest as possible when 1t was to his own interest to do so. in the late hours of today's session of the Legislative Committee which Is in- vestigating the method of life insu- rance companies when N. F. Towner of Albany. was called to the stand and disclsimed any knowledge of the whereabouts of cancelled checks of Judge Andrew Hamilton of Albany. Mir .Towner testified that he was as- sociated with Judge Hamilton in the practice of law in Albany The Ham, ilton account was again under investi- gation and Mir. Mccall had been ex- cused for a few minutes while MT. Towner took the stand.
 Mir. Towner testified that he made deposits for Judge Hamilton but not while the latter was In Europe. He had taken some cancelled checks from the Albany Trust Company early in September and had thrown them Into a drawer in Judge Hamilton's desk. He had had no occasion to look at them again until last week when he re- ceived the subpoena to appear before the Comrnittee. He was asked to bring these checks with him but when he looked for them they were gone. He had no knowledge. he declared. of where they could have gone, or who could have taken them. Pressed by MT. Hughes he said almost anybody had access to the drawer in which the checks were placed.
 Mir. Mccall, resuming, was asked about a deposit to the credit of Judge Hamilton of $162.041 on September 1. 1905. Mir. Mccall said the New York Life Insurance Company had paid MT. I1dTn1lLOn no HlOHSy. OuL Su6 eCStcu thdt part of 1t might have come from the controllers off1ce by reason of an as- signment of tax moneys which come to the Judge by reason of his securing the repeal Of the tax law which re- lieved the New York Life from pay ment of taxes. Judge Hamilton was to have one-third of the amount that would rebate to the company, $272,000, netting Mir. Hamilton about $90,0O0.
 tNfn rnfat brought out by MT. Hughes just before the Committee adjourned for the day. Edward F. Devlin the real estate man. ager for the New York Life Insurance Company was again called to continue his testimony of last week relative to the real estate value of the company's properties in this country and abroad. MT. Devlin had had to consult records and he presented a number of tram scripts of the records.
 Owned Apartment Houses.
 It developed that the New York Life had acquired by foreclosure an apart ment house In one of the most desir- able residential sections of this city and the cost with the improvements deemed necessary was $203.056. The net income from this property was found to be 0.23 per cent on the invest ment Among the Improvements was the throwing of two apartments into one of nineteen rooms with baths. These were rented for $1. 800 and $1,S00 a year. It then developed that four of the tenants were the immediate fam fly of President Mccall. three sons and a sister-in-iaw. MT. Devlin was ask ed who fixed the rental of these prop critics and he said he discussed them with MT. Mccall
 MT, Mccall enlivened the days pro- ceedings further when he said that there was no record on the books of the New York Life Insurance Company of the $150,000 paid the Republican Ma tional Committee for contributions to the campaigns. While he had no per- sonal knowledge that the money was maid. he assumed it was because he had told the treasurer to make these pay ments.
 Early in the day MT. Mccall in de- taIling the general legislation work of Judee Hamilton and the counsel he employed denied any knowledge of the Legislative pool which was disclosed in the examination of Albert W. Main, auditor of the Equitable Society, last week.
 Mr Mccall made the startling asser- tion that three- quarters of the bills affecting life insurance companies were in the nature of blackmail. The off, cers of the company were worried at inc beginning of each year. he said. by tbc nroposal of laws that would ham ner their companies and these officers rsa,,v "trembled at what they would have to endure the first six months of each year
 while MT Hughes was engaged in ,ooLing LID some documents, Chairman Arn,strong took the opportunity to ask Mr Mccall if he had ever given any thnuebt as to the feasibility of stan sard nolicy that should be written by ui, oomnonies. Mir. Mccall said that he snd sn and that he thought if some such na1;cv ,,au could be devised it would be a good thing s...
 p,,fus w Weeks Actuary and Sec
 S vice- President of the New York Tns 1nr ,,os another witness today He nant nia into the technical description Of tsI ,,arious forms of policies, the ta- SIe. sIo wnon which the cost of life insur- orns oIe is computed and the various other dnoo aS'.,,tations of his department.
 Th. committee adjourned until to- rrorrow morning with Mir Devlin still ..vI nHn,ajning the real estate holdings of the company .,s.
 John A. Mccall. President of the New S1h" fife Insurance Company, was aSain called to testify before the spe-