Evening star., 1905-09-21

NEW YORK. September 21.-The probing
of methods Of life insurance companies
was resumed today by the legislative lnves-
tigating committee. Before the days pro-
ceedings were begun Charles E. Hughes.
counsel for the committee. said he believed
that facts OF more Importance and greater
interest than any developments thus far
still remained to be brought out we
have not yet reached the meat OF this in
auiry." said Mr.. Hughes. I'm fact, we have
only started It,.
The first witness today was John G.. Nc
Cullagh Of Albany. who Is employed BY
Andrew A. Hamilton. The checks for $1Oo.-
600 given by the New York Life Insurance
Company to Mr.. Hamilton bore McCul-
laghs name as indorser. but the witness
said he knew nothing about the checks
except what he had read in the newspapers.
He did not know whether Mr.. Hamilton
appeared before legislative committees nor
did he know anything about his employers
account in the New York State Nationai
Bank of Albany. He did not know OF any
account of, Mr. Hamilton's in, Albany. but
he knew that he was elected a director or
the Albany Trust Company about year
ago. The witness said he did not know
where Mr. 5Hamilton's books were nor
would he know where to find any OF his
employers cancelled checks. Mr.. MeCui-
lagh said further that he knew nothing
whatever about the 500 paid to Ham
Hton and concerning which Mr.. Mccall.
president Of the New York Life Insurance
Company was examined yesterday.
| George W. Perkins. vice president OF the
New York Life Insurance Company and
partner in the banking firm of ]. P. Morgan
& Co. was the next witness. He was asked
to produce the check for 100000 given to
J. p Morgan & Co. by the New York Life
Insurance Company for $s00.oO0 OF bonds
of the Navigation syndicate. These bonds
were sold by the New York Life Insurance
Company to J. Pierpont Morgan & Co. at
the close of the calendar year. December
81, 1903, and bought back on the next Dusi-
ness day. January 2. 1904 The check was
offered as evidence. An accompanying check
for $266, Mr.. Perkins said, he did not know
about. but would look it up. The check of
J. p Morgan & Co. for 5000 in payment
for the bonds also was asked for.
Mr.. Perkins then presented statement
CT the New York Life Insurance Company's
Joint accounts from 1897 to 1902.
Mr.. Perkins also presented number Of
other financial statements that had been
requested. Then he said:
"Mr. Hughes. think have everything
you asked for. I wish to make a correc-
ton on the records. I think you assumed
the object of the Navigation syndicate
transaction between the New York Life
and ]. p. Morgan & Co. was to enable the
former to reduce their holdings temporarily
Asked Some Questions.
Mr.. Hughes would not let the witness
proceed but he said he would come to that
later. He asked Mr.. Perkins to produce all
certificates the New York Life held on De-
cember 81, 1903 showing its participation In
the Navigation syndicate, and he particular
ly wished to know what instrument or GER
tihcate the New York Life Insurance Com
pany delivered ]. p Morgan & Co. on that
date.
II will be glad to furnish the informa-
tion.' said the witness
Among the joint accounts Mr.. Hughes
found participation of the New York Life
Insurance Company with c. T. Wing & Co..
In which. on the purchase Of railroad bonds
to the sum Of 81. 10000. the New York Life
ss2 % 7ss. 'HpAn' received proht OF
The witness did not know what profits
the firm Of c. T. Wing & Co. got In the
transaction. ,.. .-
From this account 1t looks as il the New
York Life put up all the money" said Mr.
Hughes DO you know whether that is
true or not?"
Il do not. am not the bookkeeper but
l presume the accounts are correct"
Mr.. Perkins was temporarily excused.
and Milton Monroe Madison, bookkeeper
of the New York Life. was called. He
Identified extracts from the books of the
New York Life showing that in the Wing
& Co.'s account the New York Life In
surance Company paid out ST. 100, 900. Some
bonds were withdrawn by the insurance
company. leaving $i.2s0.0GO bonds in the
joint account.
Mr.. Perkins was recalled and said:
we went into this transaction to get
these bonds as cheaply as possible. I fear
sir. that you are under the impression that
We went into this business so as to let
others make money out of the action, but
that Is not So"
"Shp the Motive.n
I'VE will skip the motive" interrupted
Mr.. Hughes; ''let us get at the facts I
do not wish to discuss the matter at all
with you. Let us have the facts"
"All right. SIR
did the New York Security and Trust
Company buy any bonds from your COM
panyT" asked Mr.. Hughes
IT cannot say. for that was four years
before took charge Of the finance depart
Mr. Perkins said that In 1898 the New
York Life Insurance Company took &, 10O.-
600 of Chicago and Northwestern 81 per
cent bonds In joint account with Goldman,
of 313740.
Bookkeeper Madison was recalled and
testified that the profits were shared by
the life insurance company and Goldman
Sachs & Co. and that II there had been
loss 1t would have been equally shared
Mr.. Perkins again took the stand and
said that In another joint account with
Goldman. Sachs & Co. the latter company
bought the bonds amounting to 81. 400. 600.
and that the New York Life Insurance
Company carried them until they were
sold The profits were divided. each re-
ceiving $12. 184.
1t was shown that the profits of the New
York Life Insurance Company from 1899 to
1901. Inclusive in joint accounts. were $685.
3S2
Testifying regarding another bond trans
action, Mr.. Perkins said that Goldman.
Sachs & Co. bought the bonds in the mar
ket and that the policy of the life insur-
ance company has never been to buy bonds
merely for the purpose of selling them
Joint account In Missouri Pacific fives
showed profits OF $96.1T2 each to the in
surance company and So 442 to George w.
Bartholomew. a broker, In a joint account
with Farson. Leach & Co. In 1901. In which
bonds amounting to =. 100 900 were handled.