The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-03-31
HOtchkiss Shows Up More
Legislative Frickery
sUBPOENAs ARE READY
Mr., Hotcbkiss VIII Demand the Pres
ence of About Forty Presidents
of Insurance Companies mt
the Hearing

New York, March sO.-A new name
came into the fire insurance investi-
cation today and another striking eX-
ample was developed of the speed with
which efficiently accelerated legislation
went through the mills at Albany when
the wheels were well creased.
Superintendent Hotchkiss gave out
tonight the parentage and birth of
the American Bond and Mortgage Guar
antee company which later became the
international Banking and Trust COM
pany on 100 shares of which par value
$4,000, william Fl. Buckley formerly
legislative agent for fire Insurance COM
panies at Albany, was able to borrow
$4,000 from the Phenix Fire Insur-
ance company of Brooklyn.
The parent company, the American
Bond and Mortgage Guarantee COM
pany, was promoted by Stewart Brown,
private banker of New York city,
and was incorporated in 1899 by five
nconspicuous persons of whom little
is known save that one of them was
a clerk in the office of Edward Nc
Call, brother of the late president of
the New York Life Insurance COM
pany, and now justice of the su-
preme court.
The bill of incorporation was intro
duced into the legislature by Sena-
of the company show, received 100
shares from Stewart Brown and these
are recorded as paid for in full.
Senator Goodell said over the tele-
phone tonight 'Yes, I remember that
had 100 shares. 1 got rid of them
quickly"
Mr.. Goodell said he could not re-
call why he introduced the bill nor
did he remember the charter which was
an extraordinary document. 1t con-
ferred on the company power to do al
most anything from conducting a pawn
shop to establishing storage ware
house.
The bill introduced by Senator Good
ell went into the scommittee and was
reported out favorably and was ad-
vanced at rapid pace from the first
minute In its first and second reading.
It's progress in the assembly was
smooth and the closing days of the
session lne Dill DcCdInc d. law Will
out opposition. The charter was so
valuable that when the company was
later reorganized by Brown into the
International Banking and Trust COM
pany the powerful North American
Trust company acquired 1t and when
that company in turn was absorbed
by the present Trust Company of Amer
lea of which Oakleigh Thorne is now
president 1t became in turn priced
asset.
"I remember the charter WELL, said
Brown tonight. ut was remarkably
good charter"
Senator Goodell was not the only
one to whom shares were given. Will
liam II. Buckley was allotted 100 shares
as was Justice Mccall, then practicing
lawyer. The company's books also
show that May Is, 1890, Mccall re-
ceived $4,000 and June 10 1899, $4,000
was received for legal fees. making
total of $4,000, equal to the par value
of his 100 shares which according to
the records he paid for as did Buck
ley. Brown was positive tonight that
these sums had been paid Justice Nc
Call after the company was incorpor-
ated for legal services.
The bill was introduced in the SEN
ate March IS, 1899. He said Buckley
had nothing whatsoever to be within
In the corporation" but did not re-
member for what reason he was
granted 100 Shares.
Any thought that the further course
of the investigation is to be merely
the threshing out of old straw paper
was dispelled by the announcement
from the office of Superintendent
Hotchkiss tonight that he had sent out
a request to the presidents of 40 Amer
lean fire insurance companies and the
American managers of foreign COM
panies to produce all their records that
would show in any wise what sums they
paid to legislative agents and to what
agents these sums went
1t is thought that the companies will
comply voluntarily rather than wait for
formal subpoenas.