The Detroit times., 1910-03-21
10 EXPOSE LOAG
TRAIL 0tGRAfH
Superintendent -Hotchkiss Expects
70 Prove That Legislators Have
Bled Fire Insurance Companies.

r.
NEW YORK, March l9.-Bribery
and corruption revelations. which will
! make previous disclosures Flea
K bite" are certain TO result from an In
vestigation into the fire insurance COM
Danies now being held by State super
+ lntendent Of Insurance Hotchkiss, ac-
cording TO those responsible for the
Inquiry. He expects 10 prove that the
\ IRE insurance companies have been
bled for years by corrupt legislators:
that bills against them have been In
\ PRODUCED not only. ins'New York, but
IN other state legislatures and that
\ men still prominent in national AMI
& state polite have had knowledge CT,
\ this fact and, IL they did not assist, al
least refrained from interfering.
II was shown at today's hearing that
Y certain firms OF lawyers were paid
large sums. one firm receiving 30, 0uu
A two years, for work IN connection
with legislation and were not com
\ pelled TO return itemized vouchers
, showing how the money went. II was
y also shown that legislators were III
constant communication with the nre
insurance lobby and that member CT
/. the insurance committee or the state
3 senate furnished the lobbyists with
an argument TO make before the com
mittee showing why bills should pass
II was intimated that when the
hearings are resumed next week
Hotchkiss will bring out evidence
& showing that, instead OF Individual
LEGISLATORS receiving money for their
votes and influence, the money was
expended through political commit
tees, state, city and so on. down to an
assembly district committee. When
these names are developed, II is
\ Hctchkiss' intention, 1t is reported, 10
cali the persons mentioned and trace
: the money to its final resting place.
II is believed by the insurance de-
partment that the revelations VIII
equal, IL not exceed the revelations OF
the life insurance investigation and II
fs considered likely the outcome viii
\ be the development OF Hotchkiss as
candidate for the Republican guber-
, material nomination next fall. Hotch-
KISS Is q Hughes appointee and is said
TO be the governors choice as his
successor.
When the hearing was resumed to-
day. c. L. Case. former chairman d
the laws committee of the New York
board of underwriters. gave some SEN
aational testimony as to expenditures.
He declared certain firms OF lawyers
employed by the underwriters 10 DO
legislative work were permitted 30
charge lump sums. although other
Arms had to put in itemized bills. Case
said he had destroyed most OF his rec
ords so he could not throw light On
many expenditures.
He was examined at length -bY y
Alfred Harrell. representing.-S upJ-
Hotchkiss. 1t was shown that Davies,
Stone & Auerbach, a New York law
Arm, received about $4,000 in 1901 for
+ the same work that z. r. Kennedy adj
mitted collecting sl3,3l1 for yester-
day. They received an annual re-
tainer to look after Insurance. fegisla-
fion and in 1903 received $500 for
"examining and reporting pending in
surance legislation
WASHINGTON, March Icon
Rressman Malby admitted today that
he had joined Eliial r. Kennedy In
urging Gov. Odell IN 1901 to sign a
bill relieving the reserve funds OF IN
eurance companies from taxation. The
law at that time, he said, compeflef7
maintenance OF -tfrese reserves and ire
companies insisted that for this reason
they should not be taxed. --'
when we went to see the COVER
nor" continued the congressman,
E"Kennedy told him the insurance com
panies would simply dispose of the Sc
curities they held and invest the pro
.-ao<,o In Naxy Work city or other bonds
not taxable, so they would escape tax
csion whether the bill became law OF
Lot"
Congressman Malby vigorously de-
MED charges OF corruption and bri-
berry OF New York state legislators
While admitting that In those years
Corporations contributed money %
campaign funds of both parties, he de-
2clared they dealt with organizations
and not with individuals.