Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-04-02
Justice Mccall Explains
Questionable Aspect
Of Certain Incidents Connected
With Insurance Investigation.
Fire Insurance Probe Continues
With Increasing Interest.

New York, April 1.--Justice Edward
B. Mccall of the State supreme court,
explained today his financial TRANSACT
tons with William H. Buckley, legisla-
tive agent for the fire insurance COM
parties. After the days hearing was
over, Justice Mccall met Supt. Hotch-
kiss of the State insurance depart
ment at the City Lunch Club and gave
him a statement which satisfied Mr..
Hotchkiss that personal friendship &C
counted sufficiently for the questionable
aspect certain incidents first seemed to
wear.
Earlier in the investigation. evidence
was found in the books of the Phenix
Fire Insurance Co of Brooklyn which
induced Mr.. Hotchkiss to say it looked
as is Justice Mccall had been party to
an attempt to deceive the insurance
department After reading the Justices
explanation tonight. Mr.. Hotchkiss said
he was satisfied that the juggled books
of the Phenix had placed Justice Nc
Call in false light.
The statement first takes up the $685.
00n check issued to Buckley, which the
Justice endorsed with Buokley's name
and deposited in his own bank account.
buckley owed $4,000 to the North
American Trust Co., which he had Dor
rowed from the International Banking
and Trust Co. When the International
was taken over by the North American.
the loan vas called. Mr.. Buckley, ac-
cording to Justice Mccall, induced the
Phenix to lend $4,000 to him on the
collateral held by the North American
CO. There was a balance due which,
with interest, amounted to $273l.
This amount Justice Mccall, who was
then practicing lawyer, agreed 10
advance. As Buckley had to leave
town, he arranged that Mr.. Mccall
should receive the $4,000 from the
Phenix and take up the loan. Mr.. Nc
Call accordingly deposited the $35.0OO
check to Buckley's order in his bank,
drew his own check for $37,731 to the
North American CO., paid the loan ana
obtained the securities, which he turn
ed over to the Phenix as security for
the new loan of $4,000.
my connection with the transact
ton" he says in his statement, "was
nothing more nor less than loaning Mr.
Buckley the sum of $2731, under the
circumstances stated, and which, may
add, he paid
Justice Mccall then takes up the
matter of the $4,000 check. Buckley
had borrowed $4,000 from the Phenix
on Feb. 16, 1900 and $4,000 on Jan. 20,
1901. Justice Mccall had no knowledge
of either of these loans Buckley went
to him in December, 1900 and asked
him for $346 to pay interest due on a
loan. He got the money. On Jan. IA,
1901, Buckley again went to Mr.. Nc
Call, this time for $12,96S, and again
got the money.
Justice Mccall says 1t never entered
his mind that the annual statement Of
the Phenix was involved, and he could
not have known that such was the case
because the statement bore date Of
Dec. 81, 1900, whereas his advances
were not made until Jan. IA. following.
1t was disclosed, however, that Buck
leys payment was entered on the
books of the Phenix as having been
received on Dec. 81 and this constitut-
ed what Mr.. Hotchkiss referred to as
the juggling of books to deceive the
| insurance department.
MY only interest In the entire sub
| ject.'' says the Justice. was that q
| friends was in need of money; I had 1t.
and on his request loaned 1t to him. On
Jan. 49, 1901, Mr. Buckley paid me back
$4,000 on these advances and did it by
giving me the check of the Phenix Insur-
ance Co. / beg to advise you that / never
in my life had any connection or relation
with the Phenix Fire Insurance Co.
never was in their offices and never
knew the names of any persons connect
ed with it except Mr. Sheldon. with whom
had slight acquaintance, and never
considered or gave any thought to said
company for moment in any Of the
transactions involved ! knew Mr.. Buck
ley only. and my friendship with him
dates from boyhood"
Aside from the statement Of Justice
Mccall. the interest Of the day centered
upon Stewart Browne, private banker
promoter and self-styled devil of the
International Banking & Trust Co., who
who proved fluent and adroit witness
Mr. Browne. who called himself wood.
shed lawyer"-that Is. lawyer In knowl
edge but with no right to practice-mads
/ Continued on Page Twelve.)