Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-01
immortal and 0mnipotent
Financial Trust Planned.
BROWNE EXPLAINS SCHEME
Tells Insurance Investigators OF
Special Charter Obtained.
NO SUPERVISION WAS WANTED
Right to Run a Grocery, Open q
Pawnshop or Do Anything
Sought by Promoters.


liam II. Buckley got through as a witness
two days ago. he still persists as a promi-
nent figure in the insurance investigation.
Before the inquiry was resumed today
Superintendent OF Insurance Hotchkiss
indicated his intention of finding out
whether 1t would be correct to assume,
from yesterdays late testimony, that
Buckley in 1903 was still active in con-
nection with insurance legislation at AL
bany. when, as had been testified. he was
not registered as a legislative agent, as
the law then and now requires.
No record Of any payment to Buckley in
this connection. after 1905. when, he says,
he retired from the field. has been found.
1t was thought that Mr.. Hotchkiss
might try to bring out further today the
evident connection between surety and
life insurance activities in Albany during
a series of years prior to 1905.
The story of the plan of Stewart
Browne. banker Of this city. and Edward
E. Mccall, now supreme court justice,
to establish a gigantic financial institu-
ton, with powers to do anything and
with perpetual life, was told today by
Mr. Browne when Supt. Hotchkiss re-
sumed the insurance investigation.
The witness said he was connected with
the New York Life Insurance Company
large part Of the time as confidential
representative Of the late John n. Mccall.
the president. He said he was the organ
izer and president of the international
Banking and Trust Company, and also
was at one time vice president of the
National Surety Company.
Did YOU promote the International
Banking and Trust Company as a rep
resentative of Mr.. Mccall or the New
York Life Insurance Company" asked
Mr.. Hotchkiss.
The witness replied that he did not. He
said that the only time he ever had any,
thing to do with legislation at Albany was
in 1899 when he went to Albany with
other insurance men In connection with
the introduction of the retaliatory bill
against the Prussian life insurance COM
panies
Mr.. Hotchkiss asked him why, at the
time Of the Incorporation Of the 1nterna
tional Banking and Trust Company,
special charter was sought.
cable to Do Anything"
we wanted to have corporation with
all the powers of an Individual he re-
piled. We wanted to be able to do any
thing
The company was Incorporated as the
American Bond and Mortgage Guarantee
Company. Soon after the charter was
obtained the company was changed into
the International Mr.. Browne said the
reason for this was because it would have
been harder to get the charter il 1t had
been known that ii was for trust COM
pany.
so you thought YOU would hide the
real purpose from the people of the
state?" Mr.. Hotchkiss commented.
The charter passed into the present
Trust Company of America as the re-
suit of a merger
Mr.. Browne said he searched for
months for charter broad enough to
meet his purposes. with the thought Of
buying it, He found none however, and
He said he had drawn up the bill and
had submitted it to Edward Mccall for
his approval. Mr.. Mccall was then real
estate counsel for the New York Life
Insurance Company
The charter gave the company power
to run q pawn shop and grocery store.
or to do anything else it wanted to do
1t could issue stock without limit, and,
with the main office in New York. es-
tablish branches throughout the United
States ..or elsewhere"
Supervision Was Not Wanted.
1t was even provided at first that the
company should be exempt from the
supervision of the state banking depart
ment. They had to amend the bill so as
to permit the superintendent to exercise
some authority
Mr.. Hotchkiss asked the witness il he
would allow him to investigate the stock
transfer books OF the International Com
pany now in the Mercantile National
Bank. 1t was shown that Mr.. Browne
had notified the Mercantile bank by let
ter this morning that the law did not al
low a bank to disclose its transactions.
The Mercantile is the successor of tine
Seventh National Bank, which made GER
tain loans with stock of the International
company as collateral.
MIR. Browne said that the reason for
his act was that he thought that Mr..
Hotchkiss was acting illegally in giving
publicity to confidential affairs. He email
Iensd Mr. Hotcnkiss power to make pub
lie any of the results of his examination
anu accused him Of violating the law III
giving information to the newspapers.
Roosevelt Signed Bill.
Mr. Browne said that after the bill was
drawn he asked Andy" Hamilton who
was the best man to introduce the bill.
Hamilton said an upstate man would
be the best for the job, and introduced
him to Senator Louis F. Goodsell, who in
troduced the bill.
The bill. after 1T was changed by Supt.
kilburn, was held up in committee for
q long time. Finally 1t was passed III
the closing days of the session, and was
signed by Gov. Roosevelt after the legis-
lature adjourned.
"My own belief is said Mr.. Browne,
"tl1at the republican organization held up
the bill AS soon as they learned that
the bill originated in the New York Life
building the opposition was withdrawn
WIFI REMAIN IN SESSION.