New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-29

The discussion over the ]. P. Morgan book. al
ready mentioned, was not taken seriously by
The committee, who regarded the production OF
the book as certain.
The first transaction that Mr.. Hughes dwelt
upon was the old familiar $4,000 lightning
change sale and resale of International Navi-
cation bonds by Mr.. Perkins to Mr. Perkins
no new light on this point was CLEANED. but
Mr.. Perkins took the chance to explain away
seeming purchase OF the same bonds by the
Equitable at a price much lower than that paid
by his own company. The error arose out or a
confusion of two sets Of bonds.
Mr.. Hughes then took up another year end"
transaction This was the purchase by the New
York Life on December 81 1902 of 100000 OF
bonds in three blocks from j. P Morgan & Co
Mr.. Perkins was asked why these were pur-
chased then and resold early the next year TO
the vendors at the same price He explained
that the New-York Life had agreed to take
100000 st. Louis Terminal bonds from j. P
Morgan & Co, that these bonds were not ready
and that the New-York Life took these other
bonds that is made a temporary purchase in
order to get interest on the money, pending the
issue of the Terminal bonds, selling back the
other securities when the Terminal bonds were
finally issued. This did not satisfy Mr.. Hughes
who pointed out that after the Terminal bonds
had been obtained the New-York Life held onto
100000 Cleveland. Cincinnati Chicago and St
Louis bonds for some months This Mr. Per-
kins explained was due to a debate in the finance
committee Of the New-York Life as to the ad-
visibility of purchasing these bonds. that it was
finally decided not to purchase them and they
were sold back to J P. Morgan & Co He pointed
out that the bonds temporarily purchased paid
4 per cent while carried. and that he purchased
the Terminal bonds at a price $4,000 cheaper
than the company had expected. The dual re-
iation of Mr.. Perkins, representing both ]. P.
Morgan & Co. and the New-York Life, was
dweit upon by Mr. Hughes. and il was over an
item in the Terminal bonds account entered in
the accounts Of J. P. Morgan & Co. that the
sit previously narrated occurred.
LOAN TO JOHN R. HEGEMAN.
The loan of $4,000 to John R. Hegeman by
she Network Life was then discussed. Mr..
Hughes showed that John A Mccall, president
Of the New-York Life. was q director in the
Metropolitan Life, Of which Mr.. Hegeman is
president. but the occasion of the loan was not
shown Mr.. Perkins testified that after running
for some months in 1902 at Ia per cent the
loan was carried at per cent for some time,
and was at present carried at 219 per cent.
Mr. Hughes then turned his attention to
consideration of apparent discrepancies between
reports Of the New-York Life to various States.
He read an item from the report to the New
York Insurance Department in 1901 showing
profits from securities Of $o.OI0,3Il ~ ana IN
ouired if the profits were not much larger; in
fact. above S50OOO0o Mr.. Perkins assented to
this explaining that total of 81 763, I15 II had
been charged of for agents balances, real es-
tate and other items The agents balance item,
Mr. Hughes suggested. was not Sl,919'5Z4 20
but 81, 622 $50 IL, and the balance was charged
from the suspense account" Mr. Perkins dld
not know about this Nj. Hughes then con-
trasted ths report to the Massachusetts de-
yartment in the same year. He said:
ON xour. report to the State of Massachusetts
Vol put under the head OF pronts from securities
sad me actual item? Aust what Il was
- Eyo+,i \ 25s 54I AZ and On the other side Of
tbe account agents balances ard real estate, just
as they WereI A.-Then / should say that me
gentleman making that report did not mean TO 10
il that way and the New-York man dld not. When
conflicts between the different States. ..or
Q-You don't nave 70 Val lUI lt9 md and sc
curate A-Connecticut calls for one kind Of re-
ONO calls for another kind. The NewYork Lie
Insurance COMPANY makes reports N es+5y Gf
in the world. II is one Of the most complicated
ana asei1 vRT ii looks as if they were inaccurate
hut is not the fact, because me blanks OF ths
different States are PREPARED IN oerent iq[Ins ana
1arfrnent its blank is different from the other
blanks. and the officers must use discretion IN Ild-
Ing out vl.at Is the best wa 70 make the report
O.
on securities? Al don't know as to that.
Q.-When your company hlIed It out for the
ATassa chusetts report hed it out according TO
the fact-that is, you gave the profits Just as they
were and you gave these amounts Just as they
were at that time other side of the account?
o-Do .yeu mean to say that is not called for by
the Insurance Department of this State? Al
sifferent Insurance departments Evidently that re-
port meets with your Judgment as 10 the way 1t
ought TO have been.
NETWORK BLANK "BALLED up
these are matters Of judgment
n-We are interested in knowing whether the
E+ate Department of New-York is any different or
less speci<c than the State of Massachusetts. A
don't know, but between the two reports, you
car take your choice which is the better
C-But the citizens Of New-Eork take your re-
VI mort made to the State of New-York ana assume
that IL Is q full and complete statement. A-Ihat
IS what it is; it says Net profits:
O-Rut IT does not show actual profits. A-The
blank of New-York does not begin TO show all the
particulars; It is all balled up.
Mr. Hughes then discussed at great length the
loan OF $685., 500 to the New-York Life on the
New-orIeans railways syndicate. which was in
roIyed in the purchase and resale to the New
York Life ever the end Of the year Of these
bonds by w s. Fanshawe. Beyond showing
that NyIic took up part Of this security for
the New-York Life the first appearance Of
Nylic IN these transactions nothing new was
developed. Mr.. Perkins closed his testimony by
denying newspaper charge as to the amount
OF securities issued by J. P. Morgan & Co, which
had been purchased from the New-York Life IN