New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-22

You would get discharged" retOrted Mr.. Per-
kins with surprising candor, while the audience
and Senator Armstrong; colleagues laughed
heartily at the senator's discontinue. a mo-
msnt later. when Mr.. Hughes unravelled a long
line Of figures with amazing rapdty, Mr. Per-
kins said admiriagly:
MIR. Hughes. you ought to have been an
actuarye'
JOINT ACCOUNTS TAKEN UP
Al the morning session Mr. Perkins testified
corearnirsr- Joint account transactions involving
lrnanv millions one will serve as an Illustration
on December so. 1897. the New-York Life IN
suranoe Company the New-York Security ana
Trust Company which it controls. ana Z. y
Wing & Co. brokers entered into a joint &C
count for the purchase Of S1TS0,0oo or the Sd
vannaf. Florida and western Railroad bonds
:. The New-YorI. Life purchased the bonds ana
maid for them sall 1t then withdrew S0Oo,oOo Tor
investment asal carried the rest for the joint
account until they were disposed of by the
brokers takirz- the interest on the bonds for
carving The bonds were sold at an ADVANCE
and the New York LIES third share OF the
profits was So 000 both the other parties get
ting an equal 50 M The point Mr. hughes dWelt
upon in this trai 1saction was that the New ork
ife s,,nplied an the money and the other par
ties nut up moth ing Mr.. Perkins Tetorted mat
+he.- shared the responsibility and that the
.r-ol.ar earned ht : share first, by bringing the
80. ~ their attention and. second. for making
q market for the sale
A ..ioint account" for sale was shown in the
case of the bonds; OF the Chicago and North
xr.s,ern. The NeN--York Life was carrying an
Investment of So 100000 in securities which were
IN mature in q few years. Accordingly II was
5.,t5A5 10 dispose of these and they were sold
70 8 toint account. made UP of the New-York
- g. ond Goldman Sachs & Co. at price far
d .zcase of that for which they had been pur-
chased The brokers' then sold them to their
market at a price still higher and the profit
chat Is the difference between the price for
which the Joint account acquired them from the
,Eaw-York Life and that for which the brokers
sold them. was divided equally between the two
i,arfies Here again Mr.. Perkins insisted that
the transaction was good for the New York Life,
fTo r.oidnoan Sachs & Co were able to sell them
44ronsh the country, as fherinsurance company
Icould not.
PROFIT FOR THE NETWORK LIFE
zr- Perkins under questioning by Mr..
rIu94,es ran through a long list Of such transac-
lions Including all that the New-Tork Life had
lrsrtIcipafed IN in the last eight years WITHOUT
developing anything sensational MI PERKINS
irfea5ilv maintained that the joint account en-
isbled the insurance company to get the oohos
ri price far below that which 1t would other-
wise have to pay. At the close he submitted
following
transactions:
Mr. Hughes I would like to,sayh IN summing up
chs Joint accounf matter that am sure that all
@ woaf f he gao 6 Go how wbeTe we
hays made loss 5 6s iR SIS So sf the present. mar
Set value of the securities withdrawn over the cost
value runs that UP to q tolal Proh' III cash "- "
Mr.. Perkins then made thetremarS about MI
Hughes's participation in joint accounts re-
serred to previously and added
inst wanted YOU to. know that We did this bust
ness n Is 81, the oiicssolders believe that if
zach poieyhoder could run through this matter ofi e
has been and the success of this undertaking
INTEREST ON THE $4,000 DEAL
Tn the morning session Mr. Hughes had asked
Mr. Perkins TO produce the account showing
the denosit of the SS0o.o0O received by the New
York Life when ]. P. Morgan & Co purchaser
4he 100000 Navigation syndicate the DAY the
annual report was made to the superintendent
Of Insurance and resold it to them two days
Iotar and also an explanation for the addi-
tionaI S266 81. received by J. P. Morgan on the
,esale Mr. Perkins produced a handbook show
,pp the deposit and explained the other item as
interest MI. Hughes inquired:
Oven, it was for Interest," A-Tes The New.
On the Certificates all the while the interest ran
with the certificate and also Tor 'he money 'oo'
"6lc9 T II MAJ understand that the NewYork Life
cation syndicate during the entire perlod7 A
p3Rithout any break from December 81. 1902?
Af Knd T-ba5 rate Of interest rvas paid it? A
oLWhaf did the NeW-York LEfe Insurance Com
pany receive? A--Four and one-half per cent on
oVBut S266 81 is per cent int erest for two days
On ssOe0eO is it not, exactly? A Yes and we mad
interest at per cent sSOpo0 while 1t was In
bank, which adjusting interest as near as
omone moment. That interest you had 500.
oo5 deposited in the bank was your money. was it!
OF P. Morgan & Co. had nothing to do with
nay sie enter that cash in bank as part Of your
cash balance at the end OF the year in your report7
o.Iand. of course whatever cash. whatever
interest YOU get that. like interest and other
cash balances belonging to you as part OF your
o'mAnd j. P Morgan & Co. we're not entitled to
any part of it. were they? A--No. sir no.
QUESTION OF INTEREST.
o.-on January ? 1904 you paid J. P. Morgan &
Co per cent for two days $4,000, did you not?
COMPANY paid J. P Morgan & Co interest at s per
cent ghen they got only s per ege cent o on ni Il
came up this morning. suppose it was done in
the regular accounting N making up ths statement
$4,000 go cut of their hands with the idea OF
they? Al don't quite understand what you mean
b. that Mr. Hughes
o-I mean the routine you speak OF IS the routine
OF J. P. Morgan & Co-gettirg interest on the
money which they allow TO be used and which is
lion had made this arrangement with ]. P. |
Morgan & Co for the sale in this protected way, |
for this interest, when the transaction was made
January /; took It from the bookkeeper; add
oEYou did not add s per cent interest did you |
A--No. think it is 8 per cent they received and
ETljd YOU make an arrangement with yourself
as a member of the firm of J. P. Morgan & Co, to |
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