Show HAMILTONS DOES NOT EXPLAIN his work was secret and he kept no record of money spent for insurance companies tells of necessity for hobbyists lobbyists new york dec 27 john 0 secretary of the new york life insurance company who a few days ago returned from europe where he went to get an accounting 0 money advanced to andrew hamilton was the first witness in the insurance investigation vesti gation today when tho last week of the committees wag taken up mr mccall said he saw hamilton in franco and that mr hamilton wag seriously though able to walk about mr mccall also presented a physicians certificate describing mr hamiltons illness and stating that the patient could not undertake a voyage or leavo france within two months mr mccall said he asked hamilton for his check books but hamilton refused to give them up saying that the stubs related to his own personal business mr mccall did however get a statement from hamilton regarding tho expenditures 0 funds entrusted to him by insurance companies the statement then was produced and put in evidence mr hamilton in bis statement tells why he cannot produce vouchers or cancelled checks to show to whom and in what amounts he had paid out money the statement is to the effect that in consequence ot tha accepted understanding of the companies interested with the new york life in watching legislation no demand was made by me tor vouchers from other people nor were there any books or accounts kept by roe covering same it continues nor are there any of my checks to produce payment by my check would necessarily have disclosed the tact that tho person receiving the check was under retainer by me and would abua have necessarily hampered that portion of my work that was most efficacious namely absolute secrecy cash drafts and certificates were generally preferred I 1 cannot produce my check book or cancelled checks which relate to affairs other than those ot the new york lite insurance company I 1 cannot produce any books of these particular accounts because none ever was kept by me even it I 1 did possess them it does not appear to me that the demand for them would bo a fair and honest one the understanding anat I 1 bad undertaken this work was distinct and thorough if it bad not been so L would have declined the task mr hamilton in opening his statement expresses regret that he cannot return to the united states at present because of his health at the time of his employment in charge of the bureau of taxation and legislation of the new york life tho life insurance companies feared that unless concerted action was taken they might be practically legislated and taxed out of existence the usual practice tica of depending alone upon counsel to attend and present arguments was determined to be insufficient says mr hamilton the very fact that the great life insurance companies of new york favored or opposed pending legislative appropriations would itself often concentrate cen the opposition against their views so likewise did the knowledge that we were represented at the cap atals of various stales lead to demands that political favorites should be employed in the role of counsel which it acceded to placed our affairs at the mercy of theao who did not possess our confidence these and other considerations side rations led the three companies to but one conclusion we felt that if a secret service was a permissible governmental agency a confidential service would be the only effective and at the same time proper plan to guard the welfare of the most extensive commercial interests in the world the life insurance business of the state of new york this confidential secret service was decided upon aa the only feasible plan of protection I 1 explained to the president of the new york lite as did the other gentlemen who were associated with me in this work to the officers of their respective companies that itemized accounts by names or amounts by separate vouchers details or particulars tic ulars should not be demanded if we were to be held responsible the protection of the companies such a plan was ample mr hamilton gives a long summary of the various styles of bills hostile to the insurance companies many of them taxation measures bills to compel the companies reports to be repeatedly and unnecessary lly published in newa papera are advocated voca ted says mr to gala favor with tho press for increasing their revenues outrageous propositions such as the ten per cent tax proposed la arkansas 01 absurd propositions like abo michigan bill where a doctors certificate of ill health would excuse the payment of the insurance premium and keep a policy in force or the virginia bill making it actionable or a life insurance agent to en tor the office of a man where the sign no agents allowed la displayed find legislative favor however ridiculous these bills may seem they demand attention in indiana attempts were made to pass a law causing alte surrender value of a life insurance policy to be placed upon the list of personal property which was taxable to the owner companies which of no such advantage to policy holders supported it aa an attack upon their rivals who offered this ad vantage the measure however was defeated immediately the bbate assessors proceeded to tax policy holders proclaiming that the existing law was broad enough in its terms to cover this if ihla was truo ot a dlana it was probably true ot many other states in the union the bew york lifo insurance company through my department retained eminent and effectual counsel and succeeded in defeating the project following out this idea developed in indiana several a tates notably arkansas introduced similar measures all 0 which were defeated at the capital of every state we have either retained representatives of the companies or in operation cooperation co with someone who has retained representatives duly influential it has boon found advisable as the result of experience to avoid as tar as possible any exact public conclusion as to who represent us the presence of a corporation po ration representative at legislative balls is the signal for renewed vigor in the attacks of blackmailers and cranks and unfortunately members of the legislative body are frequently deaf to reasoning where a non botine or corporate interest is at stake prevention Is again proved herein to bo better than cure where it becomes necessary we have often bad occasion to employ the columns of the public press for a discreet advocacy ot our views this method has been found to be very efficacious but it has also been found to bs very expensive 1 I have found in my work that in every legislative body in the united states there was as large a proportion of honest men as there is in any body of men in any walk of life permit me also to state that in my borki have not found it so difficult to defeat blackmailers A man who ie out to black null corporations la generally well known and alg character thoroughly understood these mea never retain influence for any length of time have found that requests to tho honest members of the legislature tor help in defeating the blackmailers as always readily and cheerfully granted A statement of money received by mr hamilton shows the total of for the years from 1899 to 1905 he calls attention to an expense of for retainers and newspaper articles in 1901 and says a large portion of this expense was occasioned by an effort to create public sentiment throughout tho united states for government supervision of insurance under the same heading Is charged tor 1903 and the increase was due he says primarily 1 to the troubles in the equitable life assurance society concerning the charged against him by tho new york lite mr hamilton says 1 I note the amount of charged against me tor those accounts and which has been fully brought out in president mccalls Mc Calls explanations pla nations to the investigating committee and which as appears by hla i testimony I 1 was entitled to apply on other accounts the discharge of obligations ligat ions incurred or accruing in my department in 1904 and 1905 not reported in the stated payments for these years my unsettled accounts for retainers for tor percentages cen and the balance under my special taz arrangement all of which accounts are detill open are to bo deducted from this gros amount I 1 have however ao objection as an evl dence of good faith during my absence pending such a settlement of these accounts to place in the custody of the company which it may hold and which la to be repaid in whole or in part aa may appear upon such future audit mr hamilton pets forth tant the tax measures alone defeated by him havo saved tha new york lite insurance company over in concluding his statement mr hamilton says that tho injunctions 0 the president of the new york life me were always unmistakably explicit that my expenditures and my work were to be strictly confined within tho limitations of the law of the land these instructions hav been followed to the letter there has never been a disbursement made by me of the companas comp anys funds which trespassed upon the instructions given mo by the president of this company and I 1 want it thoroughly understood that not one dollar of any money ever paid to me by the new york lite company has been used improperly or tor improper purposes or in a way that transgressed either the statutory law or the moral law |