Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-23
BLEO FOR MILLIONS
Enforced Payments by the In
surance Companies.
HELD UP BY THREATS
The Menace of Unfriendly Legisla-
ton.
DISBURSEMENTS TO HAMILTON
Statements by Officials of the Big Con-
cerns-Their Policy for the
Wuture Outlined
DISBURSEMENTS TO HAMILTON
BY WILLIAM T.. CURTIS.
B1 WILLIAM r. CURTIS.
Special Correspondence of The Star and the Chicago
Record Herald.

| BY WILLIAM t.. CURTIS.
Special Correspondence of The Star and the Chicago
Record Herald
NEW YORK February % 1906
1t is the prevailing opinion here among
newspaper men and politicians as well as
Insurance men. that the larger part of the
! 1,3L3S2 paid by the New York Life In
| surance Company TO Andrew Hamilton the
| legislative agent of that corporation stuck
to that gentleman's fingers. II is known by
those VINO are familiar with the affairs of
the man and the company that during the
last twelve or fifteen years. definitely since
! 1892. he has been enjoying an income OF
| $50Uco year or more from his relations
| with the managers of the big companies.
| He has been their chief lobbyist and has
looked after matchmaking suits as well as
! 'hoId-up legislation" and has done other
dirty work Undoubtedly a large part of
| tho sum. and no one can ever find out how
much was used in the payment of brides
and blackmail In New York and other
states. If Mr.. Hamilton would come home
and tell us where the money went and fur
nlSh list of the statesmen, legisat tors,
officials, politicians lobbyists and newspa
pers who have shared the graft, l am sure
he would be given immunity for his own
| offenses
y There is difference of opinion as to
| whether Judge Hamilton can be brought
to the bar. 1t would be easy enough to in
| dict him for the wrongful perversion of
| funds, but his eXtradition would be difficult.
| The bribery of insurance commissioners and
| members of the legislature Is not an Of
Tense included In the list of those for which
| men may be extradtted.
| The committee of directors which recently
! Investigated the accounts of the New York
Life Company, and particularly the pay
mentS made by President Mccall to 'tJudge"
| Hamilton, in Its report condemns the prac-
| ticc in the severest terms, but at the. same
time mildly apologies for 1t and makes an
| extraordinary suggestion.
| Measures of legislation proposed
| every year in various states says the
! port, which If enacted, would be injurious
! and oppressive to life insurance companies
! and their policyholders. These measures
| cannot be ignored or neglected, and the ex-
| pense of obtaining information about them,
| OF watching them and of employing counsel
| or insurance experts to oppose them, or TO
| secure proper amendments, is obviously
| necessary and legitimate expenditure 1t
may be that the great bulk of the sum an
nually disbursed by Hamilton was used for
! these legitimate purposes. But the fact
! that there is no Information In the records
| of the company showing to whom the
! money paid, nor for what purposes,
| have been In vogue during the past ten
! years. The expenditures Of the company on
! this account should not be authorized or re-
| ceipted for on different method from that
| of every other expenditure. For every dol
| lar paid out there should be a voucher
! showing to whom it was paid and for what
purpose.
Corporations Subject to Blackmail.
This innocent suggestion was signed by
men who have had large dealings and large
responsibilities in corporations that are
constantly exposed to backmail. and every
! one of them. when he wrote these words.
must have known that what they propose
! is as impossible as If they were TO ask
| highwayman or Il burglar to give vouchers
| and explanatory receipts. There is no cor
| poratiOn that is not subject to blackmail in
! some form or another, either from private
| citizens, politicians, policemen, aldermen,
| members of legislatures, officials, Shyster
| lawyers and other yultures who make Il
| living that way. One of the committee
| who signs this report is a director of the
| Pullman Palace Car Company, and 1t would
be interesting for him If he would tell US
! whether that corporation requires such re-
| ceipts he recommends for the thousands
| OF dollars that it has to pay every year In
| the way of blackmail. Mr.. Ream is
| practical man and is not accustomed TO
| humbugging people.
| 1t appears from the accounts that more
| than 100000 of the money received by
| Judge Hamilton diSbursed by the
bureau of taxes and legislation" in other
states than New York between 1896 and
| 1905 We know from testimony before the
Armstrong committee that the three big
| companies divided the field among them for
! purposes of economy and convenience The
| New York Life looked after matters In GER
| tain states the New York Mutual and the
! EIQulldDlS IN others, ana whether TINS
amount covered the whole expense was
only the share of the New York Life does
| not appear.
Were easy Marks"
While all corporations are subject to
| blackmai more or less, the insurance COM
| panies have been more exposed and more
assaiable than others because of their
| enormous assets and the sensitive nature
of the business. They have also invited at
| lacks by permitting themselves to be bled.
| Every life insurance manager that does
| interstate business, every general agent
| knows what | mean. IL they had stood Jp
boldly at the beginning and defied the cor
morants, they might have driven them
| away, but they allowed themselves to be-
| come easy marks" and were constantly
| exposed to Strike bills" by members Of
| legislatures, and flake examinations" by
| state superintendents and commissioners,
| and to solicitors for individual and party
| campaign funds. 1t was considered neces-
| sary to have friends In the different leg
| islatures. and those friends required money
| TO pay their campaign expenses. 1t is Gus
| tomary as everybody who has had political
/ experience knows to solicit and receive con-
| tributionS from insurance companies. Until
| the present investigation, nobody has ever
! questioned the proprfety of these political
| contributions
| 1t has also been necessary to keep tax
commissioners, assessors and collectors
| good natural. One of the presidents told me
| The other day that several states now tax
premiums in most extortionate manner
| He declared that the dividends paid by his
| company would have been increased 10 per
cent last year but for the taxes imposed in
| different states. Every one of the big com
panies tells the same story. In many cases
it has been the practice to bride assessors
to cut these taxes down. That was a part
of Judge Hamiltons business and. al
| though we have no vouchers, doubtless
| much of the money received by him was
| expended for that purpose
Future Policy Stated.
| When l asked an official of one of the big
| companies who looks after such matters
| whether the Matchmaking business was go
| ing on as usual, he replied:
THE agitation produced by the Armstrong
| committee seems to have caused a suspen-
sion of insurance legislation throughout the
whole country, and, FAR as l have heard.
no hold-up bills have been introduced any
where during the present winter, although
we have had notice from the commissioners
of several states that we will be prohibited
from doing business within their jurisdic-
ton unless we do so-and-so We are paying
no attention to any threats of that sort, but
are trying to get into shape and clean lIp
| matters without regard n ~