New-York tribune., 1905-11-28
THE DEAL FOR NHLIC.
n. 2. Life and Perkins Only Parties
to Transaction Appearing.

4
The examination OF MI Perkins n the morning
proved TO be only prelude TO the Developments
OF the afternoon, when Mr Hughes TOOK up Inc
transaction in which Mr.. Perkins receives In cash
$4,000 for q deal engineered through hddef' fea.
body & Co, OF Boston The fact that there mao
heen such transaction and that Il had been care
fullv hidden from public view was brought out IN
last weeks testimony. Like the United States
Steel affair exposed in the morning session this
had been omitted in the list Of syndicate ana JOINT
account transaction supplied by the company enc
supposed be complete, and this omission hao
evidently provoked Mr.. Hughes The morning ses
sion hsd slso made it clear that MT. Hughes was
determined not 10 permit afT. Perkins to make en-
unnecessary excursion into language when a vital
question was to be answered
Starting with the details OF this transaction MI
Perkins testified that the $4,000 represented q
oront IN a 81 10000 loan to the Boston firm for
purchase of Mexican Central bonds; the firm
bought the bonds the New-York Life furnished
half the money and shared the profits. Mr. Per
kns started the trouble by the declaration that the
whole agreement was verbal one and that the
arrangement made in ten minutes on his own
responsibility and without reference to any one
afr Hughes failed 20 just where Nylic fig
ured in the affair It had been explained that the
profit was paid TO the Nylio fund Apparently
f1dder, Peabody & Co never heard Of Nylic in
the deal Mr. Perkins merely told representa-
live o. the firm that ihe" would provide the money
Bql4 bonds were sent to him.
Then came letter to Mr.. Randolph, treasurer
of the NeV-York LIFE recording the sending of the
g oco 900 bonds TO the New-York Life. At the
time the New-York Life sent $4,000 GO pay for
theul Still there no appearance of Nylc Mr..
Perkins edmittsd Nyiio paid part of the s9S9.Qeo.
that It ell came from the New-York Life, The
transaction did not come before the finance COM
srttse and the members did not know Of H. Clearly
Mr.. Perkins was acting on his own initiativs.
DEAL APPEARED AS PURCHASE
Reference TO the books Of the New-York Life
hhoued that this transaction appeared pur-
chase. not loan. despite the fact that it
loan. according to Mr.. Perkins, though It not
brought up before the finance COMMITTEES It
was not viewed in that light" Mr.. Mattison ven
tuTed to explain that the bonds come in morn
3ns and he put them down a purchase in good
faith and later thought 1t useless TO take them
off, The correspondence in the affair read
and the last letter showed the payment 70 the New
York Life Insurance Company of the profits $40
5a3 50. by check But the check and the disposi-
ton Of ft brought before the finance
committee. Mr.. Randolph cent the check TO Mr..
Perkins, after indorsng It and it never reached
the New-York Life books.
There still no reference to Nyiic. Mr
Hughes again sought TO End any evidence Of its
putting up money. but none TO be found. It
shown that the company had been putting
up" for its contribution NyIic steadily, hence
this could not he charged 10 this account. There
obligation TO pay to Nylio Mr.. Hughes
leading Up to the point where he could show
that this money had been diverted TO NyIio be-
Mr.. Perkins willed #. Mr.. Perkins declared
this was merely an investment for Nylic, with Ny
lie taking no responsibility. Had there been loss
Mr.. Perkins declared that he. not the New-York
Life would have met II. but he could show no
memorandum OF any g1eement TO do this neither
could he tell OF a single director with whom he
had discussed It. Clearly, since Kidder, Peabody
d Co. knew only the New-York Life in the trans
action, the firm would have called upon it to meet
sny loss. cir. Perkins admitted this. That the
New-Tork Life put up the money and Nylio took
the proht was the only explanation Mr.. Hughes
could piece out. Meantime. the New~York Life
holding the bonds. received interest them at 8
per cent by coupons
AIT. Hughes went over this point again and again,
but nothing could be shown save the New-Tork
Life and the banking frn-no Nylic- MI Perkins
insisted. however, that he went into the matter as
the mana ger of Nylic.
ITO whom did you give your word?' he asked
III. Perkins.
To one; didn't need to: am manager OF
that fund he replied
MR. PERKINS AS TRUSTEE
Then followed a long discussion TO whether
str. Perkins had included this item in his stata-
snent OF the Nylic fund before the committee
Sarlier. There was a long debate and the amount
II the NyIc fund was fixed at s945.146 OF. Following
this the sudden revelation of the manner in
which Nj. Perkins administered this trust fund.
The examination on this point follows:
Q--what bank did you deposit ss45,14s o2 ins A
Q--Your individual sccount2 Any Individual
account. where have deposited all the Nylic
Q-And when did you deposit 1t in the fund Of
probably as money! know It was not-as money
of the NyIic trustees It put in investment,
and the Investment finally got into the account Of
Q-Was the s401s; 80 never checked over to the
%y1ic trustee fund.- A-No. sir: individual
profits have ever been checked over TO the Nylic
trustees
Odd you make . segregated Investment for
eSyIic of the s401e3 502 Al did not.
Q-Did you mix il with your money in in
Testment? A.-Yes, sir, as have with nearly all
Q-Doa't You keep a separate fund of the Ny1ic
money and invest 1t as trlstea? A--No. sir.
Q-IVho are your other tr1lsteos7 A-Mr Kings
Mr.. Weeks; that is right
Q-Are they aware that funds OF Sylio han
died through your individual account? A-Ahso-
lutely. and so are ell the who have interest
;n the fund.
o-How do you discriminate between your indi.
-i6Ual interest and duty as trustee in setting
"? Al do il my Judgment dictates In each
instance, handling the money 10 make the most
profit. and think the best proof have been
cessful is the amount l have earned
o.-EaEe you any securities apart for Nyiic
;n the names Of the trustees OF the Nylc fund? A
No, sir, ] have not. At the present moment II So
happens that the large part of the Nylie fund Sc
curfties are set apart, but in my custody.
Care they IN name? A.-Most OF them
are not IN any name at all.
Q.-They are bearer negotiable securities A
Yes sir.
Q-How are you able when you are drawing IN
your financial transactions, upon your individual
sources, augmented by such deposit this 340-
e3 60 to discriminate so as to be able TO tell what
vestnent? Al have never had any difficulty