The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-22
Many Questions He Could
Not Answer.
THE HEARING WAS DRY
No New Sensational Developments Be-
fore The Special Legislative Com
miitee Yesterday. Investigation
of New York Life Will be
Resumed Today.
Resumed Today.
(Bv the Associated Press }

New York, Sept 21.-George w.
York Life Insurance Company and
member of the firm of j. p. Morgan d
Company was on the witness stand
before the special legislative commit
tee probing insurance companies
methods during the greater part or
today's session. When an adjournment
was taken he was still on the stand
with a number of questions pending,
to reply to which he asked permission
to look UP the records and submit
transcriptions. There was nothing OF
a sensational: character in the testi-
mony today, the only development OF
moment being the witnesses disclosure
in the New orleans Traction Synd-
cafe in which the company sustained
a loss of over 100000.
Edmund V. Randolph, treasurer OF
the company, had been questioned
Rthar sharply regarding this trans
action when he was on the stand last
week. Today the matter was bropght
up when Counsel Hughes attempted
To probe the collateral loan account.
The bonds Of the New Orleans Trac-
ton Company had been bought from
the New York Security Company at
S5 and were subsequently, sold ct 70.
Mr. Perkins testified they were sold
on December 81. 1903. to FanshaW q
Company for $937. 500. Mr.. Hughes
found under date of January ), 1905.
a loan of that amount to Fanshaw K
Company, and asked him if the loan
was made against these bonds This
Mr.. Perkins said he would have to
look up, and the question was dropped
for the present.
Tnl,,,
Hegeman, president of the Metropoli-
tan Life Insurance Company, was car
rying running loan with the New
York Life of $4,000 at 1 1-2 per cent
interest Mr.. Perkins did not know
whether this matter came before the
Finance committee and would also
look that up. Witness could not eX-
plain why. after the New York Life
had bought 81 100000 worth of bonds
from j. +. Morgan q Company, S2.-
600, 900 worth should be sold back to
that firm at the same price WITHIN
two months and no minutes of the
Finance committee could be found to
explain it.
The transaction in navigation syn
dicate bonds of December 81, 1903,
when Mr.. Perkins for the New York
Life. sold Mr.. Perkins for j. p. Nor
gan & Company 100000, in these
bonds. came up again when the war
rant for the check of $500, ,266 was
produced These bonds were bought
back bv the New York Life two days
later and the $266, Mr.. Perkins tes-
tilted. was for the adjustment of in
terest Mr.. Perkins would not ac-
knowledge the transaction was a loan.
rhc total dealings of the company
with the Morgan firm amounted to
2S6O75 with z profit of S7S4,16S,-
10. The manner OF the companys in
come was for the present dropped, and
the way of spending the money was
probed. The agency system CT the
company was described, and at this
point President Thomas A. Buck
ner. who has charge of the agents, was
called. He stated that the total sal
aries of agency inspectors were $126,-
600 annually. Agency directors get
an average annual salary Of $4,000.
The latter receive about S100, 600 ar
nually IL bonuses.
Mr.. Buckner was unable to answer
many questions without referring to
records and viii be called again.
Earlier in the day Mr.. Perkins had
been questioned on the "joint account
transactions OF the New York Life In
surance Company which he was un-
able To explaia last Friday. He oc-
crpicd almost The entire morning /Ses-
sion and presented statements OF each
account. Mr.. Perkins took occa-
sion TO, correct his testimony of last
Friday relative to the navigation bonds
when he was asked If the object OF
the transaction between ]. 2. Morgan
X Company and the New York Life
Insurance Company was to remove
the sSO0.0O0 bonds from the insurance
comDany's books and reduce their
holdings temporarily from $4,000, 900
TO S3.20O,OOO. Mr. Perkins answered.
yes. but today said:
i did not mean that: / meant to
say No."
Before MIR. Perkins took the stand
John f. McCullagh. of Albany, a clerk
for Andrew Hamilton was called in
an attempt to probe further into the
100000 check matter. but Mr.. Nc
Culiagh could give no information and
was excused.
The investigation will be resumed
tomorrow.