The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1905-11-17
NEWEST DEAL OF
THE ENTIRE LOT
President Hegeman OF Metro
.politan Life Makes a Re-
markable Admission.
ON INTEREST
AominalIy Paid Banking Firm az Pc,
Gent. lnterest and Received Re
bates of 3 Per Cent. in Per-
sonal Checks

New York. Nov. 1a.-John A McCah
president of the New York Life lrsu--
Rnce company, was called by the COM
mittee of investigation of insurance
companies and peremptorily ordered by
h committee to demand the return
from Europe to this country OF Andrew
Hamilton, the lawyer who has charge
of the legislative matters OF the New
York Life company. Mr.. Mccall was
further ordered to ernand an account
ing from Hamilton of The moneys ex-
pended by him N Of the balance
Mr.. Mccall denied that it was the
policy of his company to have Mr.. Ham
ilton remain abroad until this investi-
cation had been concluded. and said
that on the contrary he would like to-
have Mr.. Hamilton return j
Mr.. Mccall, replying to Mr.. Hughes.
counsel for the committee. said he had
called the attention of the board OF
trustees of the company to his testi-,,
mony relative to Hamilton, n gave
Mr.. Hughes a copy of his statement.
which said thai if Hamilton did not rel
s235, 600 by December Is he would him
self pay it to the company.
Mr.. Mccall sal Mr.. Hamilton was
either in Paris or Naulfeim.
Another interesting line of exarnina-
ton was opened up just before the adj
jourrl1nent for the day, when John Nc
Guinness. an employe of b Equitable
Life, was called. He produced letters.
books and memoranda. n of Which
Mr.. Hughes read, and was in the midst
of reading another when adjournment
was taken. These were instructions of
former Comptroller Thomas D. Jor-
dan, of the Equitable Life. to A. c.
Fields, relative to the killing or assist
ing the passage of every bill introduced
into the legislature that would affect
the interests of the insurance company
or any of it's officers
This line of examination will be fol-
lowed out when the sessions are re-
SuIned today.
New York, Nov. 13.-John r.. Hege-
man, president of the Metropolitan Life
Insurance company, was on the Wit
ness stand again today before the in-i
surance investigating committee. He
presented a statement of rebates paid
to him on interest on loans en- his per-.
sonal account
The statement show that Hegeman
paid Vermilyo & Co., bankers. interest
at h rate of AZ per n and re-
ceived in personal checks of various in
d%iyiduals of the firm, at different times,
a rebate of this interest at the rate Of
3 per n
New York Life Must Disaoree.
John A. Mccall, president of the New
York Life Insurance company, was
called before the insurance Investigate
ing committee today and ordered by
the committee to demand the return
to this country of Andrew Hamilton
ton has expended and for which the
New York Life holds no vouchers be-
yond the personal receipts.
Hamilton is believed to be in Eu-
rope.
Mccall said that if Hamilton does
not repay the company before Deem
Der Is the sum of 1925, 900 which Ham
uton received from the company and
has not accounted for. he, Mccall, will
pay the amount himself to the New
York Life before December 30.
Loaned Money Too Cheap.
It was shown that the Metropolitan
Life made loans of 100000 to 5000. 600
at one-half of 1 per cent. interest to
William Reade. of the firm of Yer
milye & Co, on various dates in 1901
to 1903. The market rate for call loans
was at h time from AZ to 5 per cent.
Vermilye & Co. were the bankers
Of the Metropolitan at that time. and
when Mr.. Reade resigned from YER
milye & Co. and went into business
for himself he became the company's
banker. MI. Hegeman's explanation
for making these cans below the mar
ket rate was that as yaluable services
had been rendered the company it
sought to repay favors where it could.
Mr.. Hegeman said that through the
-watchfulness of Vermilye & Co. the
Metropolitan Life Insurance company,
had now 1900, 900 OF s4.00o.0O0 that
could be burned without impairing the
kolvency of the company.
On bonds and tocks the Metropoli-
tan had cleared, according to Mr..
Hegeman, about 1900. 900. and on
s~yndicates into which Vermilye & Co.
instructed the company to participate
the company has made about $3.50, 600.