Rensselaer Semi-Weekly Republican, Volume 38, Number 18, Rensselaer, Jasper County, 13 October 1905 — M’CALL MAKES ADMISSION. [ARTICLE+ILLUSTRATION]

M’CALL MAKES ADMISSION.

Bays More than Half Million Waa Used in Legislatures. John A. McCall, president of the New Y'ork Life Insurance Company, was on the witness stand the greater part of

Wednesday before the Armstrong investigating committee in New York, and in sharp contrast with his first appearance two weeks ago he made no secret of the immense payments by his company to “Judge” Andrew Hamilton to influence insurance legislation in various

States of the Union. Much of the proposed insurance legislation in various States he characterized as blackmailing attempts. It was brought out: 1. That since 1900 the New York Life has paid to “Judge’* Hamilton $476,927.02 for legislative purposes, and has also paid to others largo sums for similar work, bringing the total of such expenditures up to $509,127.02. 2. That in addition to these payments to Hamilton, President McCall expects him to render bills for his services during the present year which will aggregate about $165,000. 3. That, besides these payments to “Judge” Hamilton and in addition to the $235,000 paid him in 1903, ostensibly on account of real estate deals and for which he has rendered no account to the New York Life, he was also paid $75,000 in June, 1904, for which he has rendered no account. The total of the sums given him, so far as is known, for which he has rendered no account now stands at $310,000. 4. That John A. MvCall, who is a director of the Metropolitan Life Insurance Company, borrowed $75,000 from that institution at 1% per cent interest. On July 1 last, snortly before the appointment by the Legislature of the insurance investigating committee, the interest rate on tills loan was increased to 2% per cent, at which it still stands, the loan being unpaid. 5. That John R. Hegeman, president of the Metropolitan Life, in addition to borrowing $50,000 from the New Y'ork Life at 1% per cent, also, it was intimated, borrowed money from his own company, the Metropolitan Life. 6. That the New York Life encourages its agents to get new business on the deferred dividend plan by paying them 60 per cent commission of the first year’s premiums and only 40 per cent commission on annual dividend policies. This, in face of the fact admitted by the chief actuary of the New York Life that it is easier for an agent to get new business on tlie deferred dividend system than on the plans for which the smaller commission is paid. 7. That the cost to the company of getting new business on the deferred dividend plan is so excessive that in 1903 the New York Life had to borrow from its surplus accumulations over $7,000,000 to pay the expenses of business which in premiums yielded only in that year about $3,400,000. 8. That, although diligent search has been made during the past two weeks, no record whatever has been found on the New York Life of anyone of the three $50,000 payments to the Republican national campaign committee. 9. That four relatives of President McCall, all of them employed by the New York Life at large salaries, live in an apartment house at 49 West Seventysecond street, owned by the company, at rentals which yield the policy holders only 2 3-10 per cent on an investment of $203,000, the cost of the property. 10. That President McCall admits there should be a limitation to the business which a life insurance company may roll up and that the legislative committee should give that subject serious attention.

JOHN A. M. CALL.