The Montgomery advertiser., 1906-02-09
WEATHER FORECAST. Washington, Feb. S.--For Alabama Fair Friday and Saturday, light to fresh north winds.


 - - with him and your committee is advis- ed that Mir. Mccall became legally lia- ble for the. whole account, This sum he has recently paid in full and the company is thereby saved from any loss on account thereof"
 The committee holds that it is a mat ter for legal adjudication as to whether George W. Perkins or the firm of ]. P. Morgan and O.. is not liable for the payment of Hamilton's notes for $59.- BIO. Mir. Perkins paid this account. the committee holds, as the New York Life Insurance companys share of profits of it's participation in United States Steel Corporation Syndicate The committees holds that theso notes were not given on the company's bus mess and that the company can only conclude that Hamilton discounted the notes for his own purposes,
 The committee holds also that the payments of these notes by the com pany was unwarranted The report then adds Tt Is only just to MT. Per- kins to say that he acted in the matter in entire good faith That he knew nothing about the notes or their ori- gin; that from what Mir. Mccall told him he had reason to believe that they were in some way or other connected
 
 that he derived no benefit from the transaction and that his liabilities f any is technical one.
 Purpose of Payments Unknown.
 Tt was found by the committee that the books of the Paris office show pay ments in 1900 of s10,00o to John A. Mccall in London and of $i34,50o to Andrew Hamilton. The purpose for which these payments were made to Mir. Mccall and Mir. Hamilton, the com mittee has been unable to ascertain. It holds that Mccall and Hamilton are ae- oountable to the company for these sums and that proceedings should be instituted against them to compel them to make repayment or an accounting. The report states that Hamilton receiy- ed on June 6, 1904, a check for over $111,0 which was due to the State of New York as franchise tax from the New York Life Insurance Company.
 President Mccall delivered the check to Hamilton. The latter. the report states, did not then pay the tax, but deposited this money to hIs individual credit with bank at Albany. Late another check for s75.000 was delivered by Mccall to Hamilton which with the sill, ,000 was said by Mccall to be for the purposes of settling the taxes due from the New York Life in full. It was not until Sept. 29. l904. the report states, that Mr. Hamilton paid the sill. .000 tax. The explanation for this delay given to the committee was that a case involving the validity Of a portion of the tax was then pending. Hamilton, with President McCalPs con sent before the payment of the tax, used S75,O00 of this money for the purpose of the so-called bureau of tax ation and legislption.
 If the tax was not to be paid when the check was delivered. the report states "because Of the pendercy of this case in the court of appeals, there was no occasion for its delivery at that time There was no reason for nak- ing the check 10 Hamilton's order.
 aNo other conclusion would seem to be pernissibie nan that Hamilton used For his own purpose $75.000 Of the money advanced him to pay the Stats tax and the committee is advised that both MT. Mccall and Hamilton aEe lia- ble for this sum-
 On october IS, 1904. the Court of Ap- peals handed down a decision under which the New York Life Insurance Company was allowed tax credit of s272 7os. This could not be drawn in cash but portions of 1t were assigned to nine other companies for $90,3S6. That sum was collected by Hamil- ton, reports the committee, and has been retained by him without any ent- ry thereof in the books of the com pany The committee sets forth that this was explained by the fact that Mir. Mccall had made an arrangement that Mir. Hamilton was to have one- third of the tax savings under the legal proceedings. This the committee char acterizes as improvident and suggested that Hamilton should be called on to establish his legal right to retain the S90.36s. In his Paris statement Ham, ilton referred to his unsettled account for retainers, for commissions, for per centages, etc. These unsettled ac- counts the committee declares would seem to be without any substantial foundation. The records of the com pany show that he has presented bills during the past ten years for his com pensation for every kind of service that he rendered and that they were paid.
 Your committee having been in- formed that Hamilton was physically able to travel has exerted every effort to induce him to return to make q full disclosure of his payments. dlsburse- ments and transactions, but without success.
 Your committee recommends that the Law Department be instructed to institute the appropriate legal steps to carry into effect the conclusions of this report"
 The report Is signed by T.. P. Fowler, Norman B. Ream, Hiram B. Steele, Au- gustus Payne. Clarence H Mackay.