Daily Kennebec journal., 1906-02-09
: PARTIAL REPORT
Of Special Meeting on
the New York Life
VIII Probably Be Enough for
MessrS. Hamilton and Mccall.
Both Blamed and Criticized for Share
in Campaay's Business.

| New York, Feb S.-The special COM
mittee appointed by the trustees of the
New York Life Insurance Co. to in
vestigate the affairs of the company
today made 4 partial report of its lab
ors to the directors. This report deals
only with the relations of Andrew
Hamilton, the legislative agent, with
the company and is a severe arraign-
ment OF his methods.
| John y. Mccall. late president of
the New York Life, also comes in for
a share of the committees criticism
He is blamed for his methods in con-
|nection with the bureau of taxation
and lcgislation' during the last 10
iyCars and for allowing Hamilton to
pay out vast sums without Il proper
accounting.
| Special attention is called to remit
|tances of $4,000 to Mr. Mccall in Lon
| don and $134, to Hamilton in Paris
in 1900. The purposes of these remit
| tanccs the committee says it has been
unable to ascertain and recommends
| that proceedings be instituted against
Hamilton and Mccall for an account
ing or repayment.
The committee adds on this point
that application has been made to MI.
| Mccall for information regarding the
| transactions but that it is Informed
by Mr.. McCall's family that his physi-
cal and nervous condition is such that
| the subject cannot be taken up ut
present. AS to Mr.. Hamlton's health,
which has been reported as poor the
cCmmittce has been informed that he
was physically able to travel and has
los Iva ct nj n ind n
return to make a full disclosure of his
| payments. disbursements and tran
sactions, but without success.
The committee also holds both Mr..
Mccall and Mr.. Hamilton responsible
for $4,000 advanced to Hamilton to
pay the state tax and which the COM
mittec declares was used by Hamilton
for his own purposes. TIE committee
is advised that both are liable for this
sum.
Tho committee maintains also that
it is matter for legal adjudication as
to whether George W. Perkins OF the
firm Of ]. z. Morgan & Co. is not
liable for the payment OF Hamilton's
notes for $5o,3f9. Ny. Perkins paid
this account. the committee holds, out
of the New York Life Insurance Cos.
lshares Of profits in it's participation
i'll a United States steel corporation
Syndicate. The committee holds also
that the payment of these notes by
the company was unWarrantcd. 1t is
only just to Mr. Perkins to say, the
ire port adds. that he acted in the mat
ter in entire good faith, that he derived
no benefit from the transaction and
tl.at his liability, If any, is technical
lone.
| Tho committee recommends that the
law department Of the company to in
stitute appropriate legal proceedings
to carry into effect the findings and
conclusions OF this report.
The report is signed by r. p Fowler,
Norman Is. Ream, Hiram steele, Au
gustus 6. Paine, Clarence II. Mackay,
land was unanimously adopted.
|
| The committee states in beginning
its report that it has made with the 10y
al and efficient aid of tho company's Of
fcers, Il thorough and exhaustive eX-
Elimination Of the relations Of Andrew
Hamilton, the legislative agent. with
the company and of all payments OF
money to him. 1t believes it has OBJ
taineG all infornGtio about this sub
| jeCt that is accessible.
| The payments OF money to Hamilton
are gone into. For none Of these pay
meGts, the committee states, is there
any other receipt 0" voucher than that
given Hamilton. and there is no evi-
dencp from which the committee or the
| officers Of the company can state to
whom the sums received by Hamilton
] l1a
sum Of S61,00O was paid to Hamilton
from the years 1896 TO 1905 inclusive
| The gcncralities OF Haniltons Paris
statement furnished no aid in forming
conclusion on the subject. 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 oppressive 70 life in
surance companies and their policy
! holders. These measures cannot be ig-
| nored and neglected and the expense Of
obtaining Information about them, of
watching them and of employing coun-
sci or insurance experts to oppose them
OF secure proper amendments, is obvi-
ously and legitimate expenditure
| The committee has no information Of
| any of the money paid to Hamilton be-
| ing put into illegimatc uses The com
| mlttec therefore, emphatical COM
mends the report made by special COM
mittee on October IS, 1868, which pro-.
VIdes for full voucher of all such
| expenditures. and this publicity of n
| monthly report thereto to the board
| ana an annual report to the Superin-
tendent of insurance is requested That
IS the system now in force in this
| company. The committee further rec
omends that payments from, branch
| offices should be confined to matters
| connected with those offices and that
/ the charge and conduct of all action of
| the company regarding legislation be
| committed to the law department as
one Of its functions.
The committee presents vouchers for
sums amounting to s3S.5GO between 1898
| lH5. and say that they We're to be ac-
counted for but no account was ever
rendered as to any Of them. The COM
mittee says it is advised that an ac
I M