The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-02
STOCK FOR ODRLL'S SENATOR
9OODGRLL HAD GNrRODUCED
INTERNATIONALLY CHARTER.

4
RaCh win Note which the s%Neu;a
Nasisnal DasosuAGed. Taking HtscaS
a. Collateral At Subscription Price.
From sesw&rt Bro~ns. who described
himsslf ~ an 'inoeptOr' and who rro.
m0esd the International banking and
1 Trust Company. facts we're brought ga
! &C the insurance hearing yesterday show
ing that after a bill wen, through the
Legislature In IssO giving that company
an exceptionally broad charter senator
Goodssll and william n. Buckley. the IN
mirance lobbyist. each got I5O shares 10
the oompany's stock. Senator Goodssll.
who representod Odsll's district had in
troduOsd the bill giving the charter to the
company
Mr.. Browne. who appeared voluntarily
a. . witness 10 explain certain TRANSACT
tons involving the company in winch
the names Of Buckley and Justice q. h
Mccall have figured. said in references to
the appearance Of the names OF senator
0oodsslI and Buckley in the stock csrtia-
cate book that both had paid for their
stock at the subscription PRECISELY a
shars-through loans negotiated with
the defunct Seventh National Bank with
the stock a. collateral
In Senator OOodselI's case it appeared
that the bank had loaned up to the sub
scriptiOn value OF the stock. that the
amount OF the loan had simply been
rru.asead n. a.-,,.n. .v,A
that senator GOodsell had ri mply paid
interest on the loan. waiting for the stock
to rise. IL dropped within three months
20 las. but Browne succeeded in getting
the Seventh National TO carry the Sena-
tors loan without exacting more margin.
Whether the senator Kept his stock until
it went up year or 80 .ater on the merger
OF the company with the Trust Company
Of North America didn't come out yesssr-
day.
After Brownies testimony yesterday
Justice Mccall sent a letter to Supt.
Hotchkiss enclosing checks and corre-
spondence in the natter OF certain ioans
to Buckley by which Buckley had been
able TO take M those loans Of his with
the Phenix Fire Insurance Company.
Judge Mccall said that the company
was in error in crediting him with q
check for a loan Of Decsnnber 81. 1900.
at the time the company had n make
its statement 70 the Insurance Depart
ment. Supt Hotchkiss had said that Il
seemed a. IL Judge Mccall had in some
way helped the company TO deceive
the department. by covering up a $4,000
loan 81 BRekley's nc that time. Judgs
Mccall in his letter also said that he lent
Buckley tho $1,000 on January L. 1901.
as the date OF his check showed and
not on December 81: that il was simply
a personal loan TO Buckley. and that
il never entered his head that the COM
pany's annual statement to the depart
msnt was involved in the matter. a. hs
was never in any way connected or CON-
cerned i'm its affairs.
In a statement issued last evening
Mr.. Hotchkiss said that the books in mis-
possession when read IN connection
with Judge McCall's checks confirmed
the facts set forth by Judge Mccall and
eN planned previously incxpIicable entries
"a the books and correspondence flies
~ the Phsnix lie SAID that It was 20
be regretted that the facts hat not be-R
made clear at the time Of Buckleys
examination.
WI btoNhN NAAo sANi'FNANNHN - Wv " y "
of Judge McCall. had previously ttksl
Mr.. HOtchkiss to task for suggesting
that Judg. Mccall bal been engaged
in any attempt Ia deceive the Insurance.
Department
Mr.. Browne. who was or The stand
all day yesterday. while .,iing 10 answer
questions was unwilling "a allow Mr..
Hotchkiss to examine IN" records ~ cor
tain loans in the Mere ntile Natiopa!
Bank and the Equitable Trust Company
II was shown that he had written letters
to those institutions declaring that SUCH
Information was confidential and VS.
not to he divulgei without a court order.
II turned out. however. that Mr. Hotch-
kiss had got most Of the books Of the
institutions and some Of the informatiOa
he was after from the hank
The hall which was passed IN isaS ant
81 gned by Gov Roosevelt gave tbs con-
pany such powers that e could do almost
any kind Of business except manuGacIur-
ing. Although banking institution. tbs
stockholders were exempted from tins
double liability clause. Although hlvinT
the powers Of an insurance company. Il
want under the Insurance Department
This charter now belongs 90 tbs Trust
Company Of America
Mr.. Browne said that he and Juags
Mccall had drawn the charter
The Intention no said was 20 ac-
auire stock Of other corporations and
merge them and TO make Il the great
banking corporation Of the United States
with the power Of any one OF the biz IN
surAnos companies or all OF thsm.' In
rsiAsinx now tho idea oi TINS corporation
originated with him Mr. Browne. who
u an Englishman. said Il am an in
cSpeoV. I have = creating power which
0tssisTs take ~ =ss4 ds-=!SS.-
Mr.. HOtchkiss brought out that he had
organised a good many othsr companies
In different parts Of tho world and was
~ he called IL 'woodshed lawyer
The International. q appeared. was
a New York Iife Insurance Company
which Browne engineered
Browne got from 5000 to 81 800 for sx.
fIsnaaa 81 organization. which WAS LAID