The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-30
GRAFT WAS GOOD
FOR M'CLELLAND
United States Official Caught in the
Insurance Dragnet.
LEGISLATOR AND LOBBYIST
LIVED IN THE MuTuAL'S HOUSE
OF MIRTH."

NEW YORK, Nov. 2s.-United States
~ Appraiser Charles AlcClelland Was
the first witness before the insur-
| ance investigating committee today.
/ Mr.. McCleIand served in the general
/ assembly at different times between
/ 1885 and 1908, from Westchester county.
/ He was successfully a member Of the
( Insurance committee Of both houses.
\ He said he had been doing business for
+ the Mutual Life company since 1890.
! Mr.. McClelland was first questioned
+ regarding his relations with \. c.
( Fields, who maintained house at AL
/ bany for the Mutual Life Insurance
/ company.
Lived With Fields.
McCleIland knew before 1890 that
/ Fields went to Albany to represent the
Mutual Life but did not know what he
did there. he supposed he was in Al
bany in the same capacity as represent
atives of other corporations. Fields
rarely appeared openly in connection
with any legislative matter. In the
! winter OF 1908 McCleliand said he lived
with Fields at the MutuaPs house at
Albany upon Fields invitation. The
impropriety never occurred to him. He
offered to pay, but Fields laughed at
him. Witness did not recollect that
| Fields ever asked him to support or
oppose any specific bill.
Mr.. McCleliand said the Fields house
was as quiet as any in Albany. Il was
not house of entertainment He never
saw but two members of the legislature
in there and they came to see him, not
Fields.
Graft Was Good.
Mr. Hughes showed witness ten
vouchers for money paid McClelland by
the Mutual Life Insurance company
from February. 1899 to March, 1902.
McClelland said he was not a member
of the legislature then. The first was
for $3.50 for legal expenses. On the
upper corner was the word Fields
Witness was under retainer TO the Mu-
tual Life of not less than $4,000 a year
by arrangement with Fields and one
other man. This arrangement was ter
minated I'm 1902. He did not receive a
salary from the Mutual Life while he
was in the senate in 1903. In some
years he received more than $4,000, but
he was obliged to submit an itemized
bill for the extra amount. Only once
did he appear for the Mutual at Albany
and make an argument. His appear
ance for the Mutual at Albany was in
15uus OONCIllOI OuclI was llten li9tltS
TO pass his Indirect tax bills, he said.
The Mutual was opposed TO the fran
chise tax bill and the savings bank tax
bill. He appeared before the senate
committee in opposition TO the savings
bank Bill. He also drafted SOM bills
for the Mutual.
Hughes Knew Better.
McCIelland said he was never en-
plOyed by the Equitable Life Assurance
society. Mr.. Hughes read voucher of
So 500 paid to Townsend x McCleIland
by the Equitable society, but witness
said he did not remember it. II was
marked water account" and IF. /
Witness said the whole voucher is in
his handwriting. but he has no recol-
lection of il whatever. In reply 10
questions by Mr.. Hughes Mr.. McClel-
land said he went over with Fields the
bills in the legislature and discussed
what attitude should be taken toward
them, but was not an artist in lobby
ing.
Going After Hamilton.
John e. Mccall. secretary of the New
York Life Insurance company and son
Of President Mccall, was asked if the
payment Of SOS, $40 to Andrew Hamilton
To settle uD advances made by J. p
Morgan & Company was on the books
Va LiiN NGN lUIh lxllC DIS tilGlkEu III
legal expenses. He said it was not. nor
is the payment of $4,000 by the New
York Security & Trust company to
Andrew Hamilton on the books of the
New York Life Mr.. Mccall offered the
committee cablgram which he said
was received yesterday by the New
York Life company from Mr. Ingersoll
the Paris agent Of the company, saying
President McCalls letter TO Andrew
ooh IA fs.a -
York had been delivered to Hamilton in
Paris. Mccall also presented a cable
gram to Mr.. lngersoll in which Presi-
dent Mccall informs the Paris agent
that he is sending John c. Mccall to
Europe next Saturday to attempt to
induce Hamilton 10 return TO the
United States, or, if he is unsuccessful
i'm this, 10 attempt to procure from
Hamilton an accounting for money re-
ceived by him from the New York Life.
Mr.. Hughes asked Mccall to get an
order from Hamilton to his agents here
10 surrender his papers to Mr.. Mccall.
This the witness promised TO do.
Mutual Reserve Affairs.
c. D. Eldredge first vice president and
actuary of the Mutual Reserve Life In
suTance company. who followed Mr.. Me
call on the stand, said his company had
divided its policies into fifteen, ten and
fiYe-year classes. The fifteen-yeaF class
OF policies issued prior 10 1890 showed a
large deficit. The ten-year class showed
a surplus and the fiVe-year class a def
icir Of about 100000 Prior to 1895. ne
said, the rates OF premiums paid on the
policies Of his company We're too small,
and the company Increased its rates.
When the rate finally was made what il
should have been it was not sufficient 10
recoup the losses which had resulted un-
der an insufficient rate Mr.. Eldredge
said Louis +. Payn, the state superin-
reUdent of insurance. after an eNamina-
lion of the increase of rates of assess
ment reported that some increase had
which the company had made.
More Money for Hamilton.
Willard V. King. vice president of the
New York Security q Trust company,
presented a statement of the account of
that company with the Union Savings
Bank & Trust company of Tacoma. Wash. /
The New York company was trustee of
some debenture bonds issued by the Ia I
coma company a large part Of which
were owned by the New York Life In
surance company. The statement showed
a payment Of $3.50 10 Andrew Hamilton /
as 10 per cent of the warrants collected /
after the city Of Tacoma had repudiated :
them. Mr.. King produced the check for !
he had seen letters indicating that Ham |
NtOn paid 5000 10 a receiver and also l
legal fees. NJ King produced a state
ment OF payments made by the New York /
Securities 6 Trust company 20 Andrew /
Hamilton from 1895 To 1892 IL showed an /
Hamilton's notes but Mr.. King said he /
thought some OF these notes were re- !
nowals of others.
~