Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-09
Continued From First Page

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gas investigation and the insurance in.
VeStlgat1on-and it was the second
which really made the Hughes name
1am1llar from one coast to the other
This was partly because the gas in
vesigat1on was local, while the insurance
investigation, dealing with companies
which had policyholders all over the
country, was in sense national but
the chief cause for the difference in
erect between the two lay in the highly
sensational character of some of the
testimony in the insurance investiga-
ton.
How Scandal Started.
The insurance scandal started in a
quarrel between James w. Alexander,
president of the Equitable Life Assur-
ance Society, and James Hazen HYDE.
son of its founder and inheritor-to-be
OF its control. Mr.. Alexander believed
that the time had come to mutualize
the organization. Mr.. Hyde saw no such
necessity. The clash produced fire.
works, by the light of which some ugly
thlngs were seen and legislative in
Vestlgatlon OF insurance companies was
demanded.
This investigation, conducted in 1905.
oStenslbly by the Armstrong commit
zee, out actually by its counsel, Mr..
Hughes, supplied the country for sew
eral weeks with revelations beside which
the alarums and excursions in the
Rlthste1n case were q feeble flicker.
onoer the penetrating questions of
Mr.. Hughes insurance company after
insurance company admitted, through
lts hlghest officials, that it regularly
made huge contributions. Some of the
companies were shown to have sent
IN haV g. 1.
fessional lobbyists-and to be unac-
counted for in any embarrassing state
ment Of particulars.
One item, $2S5,00 charged to "home
once annex account" was so traced
BOSS" Platt was forced to confess that.
Tor Is years he had received ten 81 OOO
bundles OF greenbacks from one of the
companies in consideration for services
rendered. JAWS
Yet Mr.. Hughes was not attempting
10 stage a sensation. On the contrary,
he refused to call certain prominent
party officials, on the ground that the
legitimate scope of the investigation
was confined to the misuse of the pol
icyholders' money by those to whom II
nao been intrusted and that what the
campaign committee did with it was an
outside matter.
AT the height Of the investigation the
leaders OF the Republican ORGANIZATION
IN New York City offered Mr. Hughes
showed the stuff he was made of nv
promptly and somewhat Indignantly re-
Iusing 10 DO anything which would give
political aspect to the Investigation
and accordingly cast discredit upon II
he held to this object, which had now
become double-that of DISCLOSING the
practice OF the insurance companies or
ratner OF their autocratic officers. and
OF oevlslng legislation to prevent a re-
| currence of such doings.
By a clear, emphatic statement =.
also put quietus upon the r1InoI
that the insurance companies were in
financial danger. Their officers haG
Deen guilty OF unfortunate actions hut
these had not jeopardized the finan.
cal position of the companies. Indeed
those gentlemen argued that thev were
virtually compelled to act as they had
acteo and that in so doing they were
oHIy taxing out political insurance fol
their policyholders.
It. became Mr.. Hughes purpose &c
render any such plea groundless. This
ne DID by means of the legislation
which followed the investigation, BJ
his policy Of steering clear of politics
ne obtained a unanimous report from
the Armstrong committee and the
passage Of all the bills which he drafted
70 carry out its recommendations.
Nominated for Governor,
The next year Mr.. Hughes was nomi.
mated by the Republicans for goyerno,
and he accepted the nomination. The
| Democrats named William Randolph
Hearst, whose idea of meeting tn,
Hughes arguments was to term theil
exponent IAN animated feather buster
TpfnFnnRn IN Mr
beard. The outcome of the contest an.
peared doubtful and President Roose.
welt sent Elihu Root, then a member
OF his cabinet, to make a speech bitter.
~ attacking Hearst in the President!
name. Thousands of Democrats voteC
for Hughes. who was the only mar
on his ticket to pull through.
Two policies of Hughes as governor
are worth noting: Regulation of pub
lie service corporations through public
service commissions and the introduc
ton OF the direct primary. Under tn,
Hughes leadership New York not onl,
instituted public service commission
but also set an example which othe
States have been glad to follow.
In reference to the direct primary
Hughes was not so successful, although
a direct primary law was added Il
the statute book. there to underg
various notifications at the hands o
successive Legislatures.
It is in connection with the direct
primary idea that the Hughes tenn
permanent and the Hughes mentality ar
seen with particular clearness. Politi
! cal reformers are continually attempt
ing to thwart the politicians. The
seem to believe that. by some tinkerin
with the political machinery they cal
render the professional politician help
less.
Now nobody despised the genu
: politician more heartily than Gov
, Hughes. He desp' ssd them as bitterl
as they hated him, and no humal
: being can do more than that. Blu
Hughes had an honest-minded man
reverence for facts as such-and poll
ticians are facts.
His r,Ia,, Tar a dirnnt r,rir,n q ~, ,rrn,iI