The Brandon news. (Brandon, Miss.) 1892-1961, 1905-11-30
MONEY SPENT
WITHOUT REASON
NEW YORK LIFE INSURANCE
PAID OUT THOUSANDS.
BOOKKEEPER ON THE STAND
$685. Deducted From Profits on
One Deal and Paid to Andrew Ham
ilton Without any Reason Being
Given.

New York.-Startling developments
were brought out at session of the
Armstrong committee on insurance in
vestigation, in the course of a minute
inquiry by Mr.. Hughes, counsel to the
committee, into the syndicate trans
actions participated in by the New
York Life Insurance Company.
The most important witness Of the
day was Milton M. Madison, a book
keeper of the New York Life Insur-
ance Co., during whose examina-
ton it was brought out that in the
case of the United States Steel Cor
poration syndicate, the managers of
which were ]. P. Morgan & Co., there
appeared in one instance profit
due to the New York Life of $S7.1S7
from which was deducted, no reason
being given, the sum Of $59,310 paid
to Andrew Hamilton, who has been
described in the course Of the mves-
tigation as the INSURANCE legislative
generallissimo.''
1t appeared from records produced
by Mr.. Hughes that an account of
J. P. Morgan & Co., with Hamilton
showed that in December, 1901, that
firm had advanced to Hamilton
sum Of $56,720, that on Oct. l, 1902,
this amounted with interest to $780,
80, and it was then cancelled by the
entry Of that amount to Hamilton s
credit. The entry of this amount in
the account Of the New York Life
read Gas per cancelled statement and
arrangement with G. w. Perkins. ("
1t was also developed that the par
ticipation in the syndicate of 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
retained.
Pressed by Mr.. Hughes to tell
whether he knew of any other in
stance Of money due to the New York
Life being paid to a third party, as
in the Hamilton case, Mr.. Madison
recalled the payment in 1904 of $4,-
900 to George w. Perkins, represent
ing the profit on loan of $4,000
to the Boston firm Of Kidder, Pea
body & Co. The profit, witness said,
came in the form Of check on the
First National Bank, which he eashed,
giving the money to Perkins. What
the latter did with it the witness did
not know. No entry Of the transac-
ton was made on the books Of the
New York Life.
Mr.. Madison said that list Of the
syndicate participations Of that COM
pany furnished to the investigating
committee was prepared by Mr.. Ship
man, the assistant treasurer, and that
he believes it is a complete list of the
direct syndicate participations Of the
New York Life.
Mr.. Madison said that in 1904 he
received a check for $4,000 as the
profit ON a loan OF $92O,OOO to the
firm of Kidder, Peabody & Co., of
Boston. He got the check cashed at
the First National Bank and gave the
money to George w. Perkins, vice
president of the New York Life and
member of J. P. Morgan & Co. He
did not know what Mr.. Perkins did
with the money, because no account OF
the transaction appeared on the books
Mr.. Madison said that in 1901 j. P.
Morgan & Co., advanced $59,31O to
Andrew Hamilton, who has been call
ed the Legislative generallissimo, .
and that on October l, 1902, Hamilton
was credited with S59.310 against this