Omaha daily bee., 1905-11-25
'oUEER FINANCIAL DEALS
BOokkeeper of New York Life Says
PROFITS on Syndicate Deals Were
Diverted TO Treasury.

NEW YORK, Nov A.-Startlng '----'
opments were brought out at today
sion OF the Armstrong committee on
ance investigation in the case Of a minute
inquiry by Mr.. Hughes. counsel to the COM
mittee, into the syndicate transactions par
ticipated in by the New York Life Insur-
ance company. The most important witness
Of the day was Milton r. Madison. book
keeper OF the New York life company.
during whose examination it was brought
out that in the case of the United States
Steel company syndicate. the managers Of
which were j. F. Morgan & Co.. there ap-
peared in ono instance a proht due to the
New York Life OF ss7.177 from which was
deducted, no reason being given. the sum
of $3.50 paid TO Andrew Hamilton who
has been described in the course of the
investigation as the Insurance legislative
generalissimo."
1t appeared from records produced by Mr..
| Hughes that an account of j. 2. Morgan e.
| Co. with Hamilton showed that in Decem-
ber, 1891, that firm had advanced to Hamil-
ton the sum Of S5s.Ta0: that on October /,
1 1902. this amount amounted. with interest
| to S59310. and that Il was then cancelled by
the entry of that amount 10 Hamilton's
credit. Tho entry Of this amount in the
| account Of the New York Life read: AS
! per cancelled statement and arrangement
! with Mr.. G. W. Perkins"
II was also developed that the partici-
patton in the syndicate by the New York
Life was effected through the New York
Security and Trust company, by which one
fourth of the profits Of the former company
were returned.
Pressed by Mr.. Hughes to tell whether
he knew of any other instance or money
due to the New York Life being paid to a
third party as in tho Hamilton case Mr..
! Madison recalled the payment In 1901 of
! $4,000 to George w. Perkins. representing
| the profit on loan of $4,000 to the Bos-
| ton firm OF Kidder. Peabody & co. The
profit, witness said. camo in tho form Of a
check on the FIRST National bank which he
oashed, giving the money to Mr.. Perkins.
What tho latter did with It the witness
did not know. No entry of the transac-
tion was made on the books of the New
York Llie.
Other witnesses examined during the day
were George T. Wilson fourth vice presi-
dent of the Equitable; Francis W. Jackson
auditor, and Gerald Brown, in charge OF
the bond department of the Equitable.
George w. Perkins of the firm OF j. p
Morgan & Co. tonight gave out the fol-
lowing statement in relation to the testi-
mony brought out In the insurance inves-
tigation today:
The transa ctions referred to before the
insurance investigating committee today
were perfectly proper ones II the natura
course Of the inquiry does not make this
clear, ] am sure the committee will give
me an opportunity TO offer further testi.
moEy in the matter. .
BOSTON, Nov. 24.--A member Of the firm
Of Kidder. Peabody 3 Co Of this city, or
being shown n copy Of the testimony OF
Bookkeeper Madison ot the New York Lii,
| Insurance company at the insurance In
vestigation today with reference to an al
legged loan of ssSo.OO0 10 the Boston firm
said:
The statement is either a mistake or
misstatement."