The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-09
NO VOUCHERS FOR
MONEY EXPENDED
Management of New York Life Con-
demned by the Special Investi-
eating Committee.
HAMILTON GOT A VAST SUM
WHAT BECAME OF 1T OPEN TO
QUESTION.

New York, Feb. S.-The report of the
special investigating committee Of the
New York Life Insurance company which
was appointed by the trustees to inves-
tigate the company's affairs was made
today and was adopted unanimously by
the trustees. It condemned the former
management of the company and recon-
mended various reforms. The committed
states in beginning it's report that it has
made with the loyal and efficient aid of
the company's officers a thorough and
exhaustive examination of the relations
Iof Andrew Hamilton. the legislative
agent for the company, and Of all pay
ments of money to him.
No Vouchers.
For none Of these payments is there any
other receipt or voucher than that given
by Hamilton, and there is no evidence
from which the committee Of the officers
or the company can state to whom or on
what occasion or for what specific pur-
pose the sums received by Hamilton were
paid out by him. The average annual
sum or $6lOOO was paid to Hamilton from
the years 1896 to 1905, inclusive. Whether
this was an unreaSonably excessive sum
the committee has no means Of deter
mining. The generalities of Hamilton's
Paris statement furnished no aid in
forming conclusion upon the subject.
Used for Legislation.
1t is a fact, the report continues, that
measures OF legislation are proposed
every year in various states which, If
enacted, would be injurious and oppress-
i've to life insurance companies and their
policy-hOlderS The expense of obtaining
information about these measures and of
employing counsel or insurance experts to
oppose them or secure proper amend
ments is obviously necessary and le-
gitimate expenditure. 1t may be that
the great bulk of the sum annually dis
bursed by Hamilton was used for these
legitimate purposes. The committee has
no information that any of it was put to
illegitimate uses. But the fact that there
is no information in the records of the
company showing to whom the money
was paid, nor for what purposes, the re-
port declares, condemns the methods and
the past ten years. For every dollar
paid out there should be a voucher show
ing to whom it was paid and for what
purpose.
Mccall Is Blamed.
John A. Mccall, late president of the
New York Life Insurance company, also
comes in for share of the committees
criticism. He is blamed for his methods
in connection with the bureau Of taxa
ton and legislation during the last ten
years and for allowing Hamilton to pay
out vast sums Of money without a pro-
per accounting. Special attention is
Call in London and $134,50O to Hamilton IN
Paris in 1900. The purposes of these re
mittances the committee says it has been
unable to ascertain and recommends that
proceedings be instituted against Ham
iltOn and Mccall for an accounting or
repayment.
The committee adds on this point that
application has been made to Mr.. Nc
Call for Information regarding the trans
actions, but that it is informed by Mr.
AIcCalls family that his physical and
ject cannot be taken up at present As
to Mr.. HamiltOn's health. which has been
reported as being bad. the committee says
it has been informed that he was phv-
sically able to travel and has exerted
every effort to induce him to return to
make a full disclosure of his PAYMENTS
disbursements and transactions, but with
out success.
Used by Hamilton.
The committee also holds Mccall and
Hamilton responsible for $3.50 advanced
to Hamilton to pay the state tax and
which the committee declares was used
by Hamilton for his own purposes. The
committee is advised that both are La
BILE for this sum The committee main
tains also that it is a matter of legal ad-
Indication as to whether George w. Per-
kins of the firm of ]. P. Morgan & Co,
is not liable for the payment Of Hamil-
this account, the committee holds out
of the New York Life Insurance com
pany's share of profits in its paTticipa ton
In a United States steel corporation syn
dictate. The committee holds also that
the payment of these notes by the COM
pany was unwarranted. It is only Just
to Mr.. Perkins to say, the report adds
that ne acted in the matter in entire good
faith, that he derived no benefit from the
transaction, and that his liability, if any
is a technical one
The committee recommends that the law
department Of the company institute ap-
Propriate legal proceedings to carry into
effect the findings and conclusions Of this
report
The report is signed by T. P. Fowler,
Norman Ream, Hiram Steele. Augustus
G. Payne and Clarence II. Mackay and
was unanimously adopted
Scheme Worked for Hamilton.
On Oct. Is. 1904. the court of appeals
handed down a decision under which the