New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-12

.r~rernsrt 10 give away one-third of the reSoT-
ery. Then NJ Mccall made the following strik-
ing description OF the arrangement:
think that the arrangement was a, very ex
ceIIeut one, Mr. Hughes If YOU VIII permit Lh'
70 say IL we ran no risk ne agreed d 10 ci nsS
IN another State. several. and the arranSs
rrsnt was made that If he didn't win ne was 70
get nothing and If he did win ne should receive
one-third.,
On the strength of this judgment recovered
Judge Hamilton secured 100000 with great
promptness by rushing assignment through
the State Controller. and the balance was left
hanging.
The different view the story took when Mr.
Scott testified regarding 1t yesterday is shown
in mis- examination. Looking over the Provident
Savings table Of legal expenses. Mr.. Hughes
eve struck the familiar name Of Andrew Hami-
ton Following this down through number OF
minor cases in other States. dating from 1885,
mr.. Hughes suddenly recollected the Mccall in
cide1t.
Did you employ Andrew Hamilton in any
other matters?" he dueried.
we did IN the tax case" answered Mr. Scott
He then explained the general character of this
sctlcr. identifying it by his description as the
test case" Of President Mccall He also ex-
planned that Judge z. L. Mccall had been em-
pioyed first and had abandoned the case when he
went on the bench. but insisted that there had
been no contingent arrangement in either case
Did you know that Mr. Hamilton was re-
tanned by the New-York LIFE asked MI
Hughes at 8 venture.
Not until Just before it came out in the news
Iapers this year." was the unexpected and
enazing reply.
and that your company was being used to fight
at?'' pursued Mr.. Hughes
Il did not" was the decided reulv.
why, didn't any ether company share the ex-
penss with your
1T did not
what was the expense to your company"
s.About $4,000" was the reply. zone thousand
10 Judge Mccall and $4,000 to Judge HaInil-
ton" At this point Mr., Hughes had brief
consultation with the committee. and it was
clear that the revelation had made profound
impression. Finally he came back and summed
the whole subject up in the comprehensive in
CURRY: =
-You are sure you did not have conference
Nvith Mr.. Mccall or with any one connected
with the New-York Life about this matter?'
II am" was the mistaken reply.
You merely conducted It like any other legal
sffair Of your own. hired counsel and paid
him his retainer and fees. and that was alp" he
continued.
THAT was exactly it." answered the wit
ness.
Apart from the Hamilton Mccall disclosures
the most interesting fact brought to light re-
Earding the Provident Savings Life was the
nepotism existing in this company. President
Scott admitted that four sons and a relative of
his wife were the payroll. His own salary,
President Scott declared, was $4,000. an in
crease from s25,0O6 at recent date. One son
IS me-
1endent Of agencies at $500. Two sons are
agents in charge of the metropolitan district,
the plum that President McCurdy had in turn
given to his son. Robert H, and his son-in-law
Louis A. Thebdud, IN the Mutual His wife'S
nephew had only $500 as a cashier, but the
relationship is obviously distant. Ex-Lieutenant
Governor Timothy L. Woodruff was shown to
be = member OF the finance committee Of this
company, receiving $500 a year.
In narrating the history of his company Presi-
dent Scott told of some peculiar deals affecting
his predecessor. Hadley. who committed suicide
aadley purchased the controlling interest IN the
stock for $685., 600 in 1906 and as soon the
company was organized borrowed $4,000 to
make up portion Of the purchase price giving
the stock of the company as security aIr.
Hughes's questions irtimated that the amount
went to make up a worthless check but the wit
ness did not know about this. The loaning and
borrowing apparently went on for some time
until the loans aggregated S162500i and then an
additional 100000. Meanwhile with the money
Mr.. Hadley was able 70 take up loans for money
he had borrowed to buy the compAny'S stock
The SlOZ,JUD, save Tor one StSDUUD tO3ns proved q
dead loss 10 the company. for Hadey commit
ted suicide and his death brought general
crash
Your company was looted for $4,000. was
it not?' queried Mr.. Hughes summing Up the
transaction Then the stock was put up At
auction and you bought it?" Mr.. Scott admitted
this and the further fact that to buy Il he Dor
rowed S1S5,000 paying $4,000 for the stock
The money was borrowed from the New York
Security & Trust Company, subsidiary com
pany Of the New-YoTk Life, through which
George W. Perkins has been shown TO have con-
Quoted many of his operations
Who backed you Queried Mr. Hughes.
John A. Mccall the prompt reply BY
way Of return Mr.. MCCaIFs brother-in-laW was
shortly after made controller Of the ProVldent
Savings al a salary Of $4,000 The brother-in-
law. Koran, subsequently went TO Paris for the
New-York LIFE A little while after the loan
was made the Provident Savings moved 10 the
New-York Life building At 346 Broadway.
The loan has been gradually reduced uiltn II
amounts TO $4,000
Probing the affairs of the company MI
Hughes showed that the company would nave
suffered material loss in 1894 had il not been
for successful investments MI Scott oectareA
that term Insurance was impossible Inc SNOW
ing Of the company on new business as an m
Testment was not impressive, and MI hughes
asked for more detailed statements
Earlier in the day the examination OF the
Home Life supplied one Of the marVels OF the
present investigation, insurance company
without any obvious scandal. The most careful
probing of this company failed to disclose any
Thing of serious character rejecting upon Inc
company. It's expenses were apparently rathei
high. hut syndicate participauons, yellow doS
funds and all the usual signs Of misTnanageTlert
were lacking. Even the advances TO agents. d
fruitful source OF trouble, were shown to be