The sun., 1905-12-12
IRIS Own M0vEr pAID FOR STOck
queer Dealings Ia Hadic,'S Purchase oi
the prONIucni IIfP

Ohlter- Oi the HON" Ilie Insurance ON
pany and the provident life Aocicty wcr"
: witnesses yesterday before the Armstrong
| committee.
! The iact was brought out thai the ProH-
| dent Savings Society paid Judge Andy
| Hamilton between 5000 aud 5000 Tor
/ representing IL rs counsel in an action
! brought against tho State of New YORK TO
recover moneys paid for taxes. The Provi-
! dent = action was q test case, and Hamilton
| won IT,
| John \ Mccall, president OF tie New York
! Life, has testified that that institution pald
, Judge HAMILTON Si4B ,UOO Hs a contiu9en, Toe
| in this very same action.
! President Edward ", Scott Of the PToyi-
dent declared yesterday that he had no
| understanding with any other institution in
| bringing the action that he had made the
ordinary terms with Hamilton for Il re-
tainer and att torney fees and that he did not
| know until short time ago that Hamilton
| had received share of the New York Iifc's
! recovery under the test case decision.
! There was curiosity iu the Aldermanic
/ chamber to know whet her the New York
! Life paid Hamilton the si48, 8,OOO-a one
| third interest in the recovery when il
| could have collected from the State under
| the decision in the test case without any
considerabl expenditure for counsel fees,
| At any rate the New York Life pnid about
! thirty times as much as the Provident
Savings Society, and the latter had the test
| case.
Mr. Scott said that he has been president
! OF the Provideut Savings Society since
1896 the year in which Frank r. Hadley
New Bedford. Mass, manufacturer, OBJ
tanned control Of majority stock of the
institution.
Hadey acquired ,o2j of the 25O shares
of the society's capital stock, paying 1884
900 for them. OF this amount he borrowed
$500 600 from the Continental Trust Com
pany, putting up the 1925 shares as col
lateral. The sale was consuminated on
December %, 1895, and on that day Hadiey
elected hia new board Of director twelve
ont of fifteen and put Mr.. Scott in as the
executive head Mr.. Scott had an under
standing with Hadley before livestock wa
acquired by the Inter that he was to b"
president,
On the day when the new board was
seated the society loaned Hadley $37 800.
The witness didn't know at first whether
this amount had been borrowed hy Hadley
to take mp check which he had given IN
part payment for the stock. Mr.. Hughes
ntimated that this check was no good and
that Hadley was in n hurry to get the
money having a messenger ready to recei We
il.
On January \, 1897, the society loaned
Hadlcv $50, 900 more, and again on Eel iry
another $50 600 On February ID l.cre
was a fourth loan of $4,000. Against all
! of the loans. aggregating Sl82 500. Hadley
put up a. collateral i23 shares of the New
| Bedford Coal Company stock; 400 shares
stock; G32 shares OF the Lambert Rope
Company stock. and $50 shares of the Ben
nett Manufacturing Company stock,
The witness expressed the opinion that
the Sips 600, in addition to the $4,000, was
. loaned to Hadey to enable him to take
up loans which he had made for the pur-
chase Of the Provident Savings Society
stock.
OF the sl62 800 which the society loaned
to it, majority stockhoIder 1t recovered
only $50 OUO on the collateral. The COM
pany thus contributed Sl3o,OO0 toward the
Hadley control.
In April. 1897. several OF the mills in which
Mr.. HadIey was interested failed, and he
! committed suicide. Mr.. Hughes intimated
! that Hadley was in financial straits when
! he acquired the stock of the life assurance
society and that he did this for the pur-
pose of getting some sort of backing, but
President Scott declared that he believed
Hadley was perfectly sound up to the
date Of the last loan. Then Scott objected
strenuously to allowing him any further
favors. but was overrtiled by the finance
committee.
The uoj shares of Provident Savings
Society stock held as collateral bv the Con
tinental Trust Company We're sold at auc-
tion. President Scott being the purchaser
He paid Sos. 500 Tor the block. OF the
nurchose nrice he borrowed slsn.O0a from
the New York Security and Trust Com
many. John 4. Mccall, prrsidcn, of the
Eew yorl, life. backed him with the tru4t
romnanv, About $50 900 of lh- loan is
.tiIl nItstandnq.
Shortl. after scott purchased tho AtnJ;
Mr. Hornu, John A. McCails brothar-u-
lave yas made rnnlutroller with a salary
,r se n0n a ynar Nr Horan r.mnined
with the proyident savings society until
laOO when he went 10 Paris as a representa-
i've of the New York Life.
R,rorn ,ha mw, ha.r of the stock hy
Mr. scott the romuanv's off, - had been
,,t % Rroadwav hi in the .urlop or lsoS
tho Snne,v took nm its Quarters IN the New
York I,fs R,ulding This wa. ,Lunr. MIR.
Snrtt trstifird hnr a,I.e OF the better ia NJ
t,es tberr
presii.nt Scott has four SONS Finer A
Edward " Walter r. and W0lIaDr drax-
'nr ,,n, rrn,,, thn pro, i,iant saving. ,,on;e,y
tIn,ar, ~ vanrs Old !. - ,redinaI dire,tnr,
Ne uate 81 Son a yanr Edward " Al wear.