The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-28


ported to the finance committee of the
New York Life Insurance company.
Mr.. Hughes brought out from Milton
Nj Harrison. the bookkeeper. that he
had put the bonds Of the New York
Life Insurance company's books as a
purchase. Mr.. Perkins said he did not
think Kidder, Peabody & Co. gave any
document TO the New York Life To
show that the transfer Of the bonds
TO the New York Life Insurance COM
pany was made as security for a loan
and not a sale Mr.. Hughes asked if
there wac any other consideration than
the loan of 1896, 600 for which Kidder,
Peabody & Co. paid $4ol9G.
On Perkins Word.
He replied that was all with the eX-
eeption of the taking Of the joint ac-
count. In reply to questions, Ar.
Perkins said the "Nylic" fund was held
by him as responsible for any loss
that might have resulted from the
dea.. ION my word"
To whom did you give your wordY'
asked Mr.. Hughes.
II did not give it to anybody" said
Mr.. Perkins. 'I didn't need to-
He said the New York Life was not
liable for any loss.
Mr.. Hughes then asked several ques-
tons to locate the S40.lSS i'm state
ment of the assets of the "Nylic." The
money, he said, was never checked over
10 the "Nylie" trustees but was in
vested. Mr.. Perkins said the funds of
the 'NyliG" were handled as part
of his own individual account. Asked
how he Disseminated. Mr.. Perkins said
he never had any trouble in discrimi-
mating. Mr.. Perkins said he did not
want to say how he invested the Sac
19s before such an audience, but 1t was
put into United States Steel common
stock at 1919.
Did you keep or sell it,"
'Tm chairman of the finance com
mittee Of the United States Steel cor
poration. and if I say what l did WIN
il 1t may be misconstrued.
No Book Account.
Mr.. Hughes did not press the ques-
ton, but wanted to know what became
of the investment. Mr.. Perkins said II
was impossible to follow ii. Mr.. Per-
kins said he kept no book account OF
the uroperty of the "Nylic," but re-
ported the holdings of the fund TO the
other trustees. He kept no record u
his transactions for the "Nylic, out
invested its funds along with his own,
and from time to time gave the pest OF
the profits to the "Nylic" fund.
Il have been sole executive manager
of this fund, and l am responsible for
any loss, and appreciate any thanks
for success" He said he could not trace
this check or any other he received
from the "Nylic" fund. Before he went
TO Europe recently Mr.. Perkins mace
a memorandum showing what the NY
lie" fund owed. so that it could be
found in case OF his death, and the
memorandum was still in existence.
At one time the "Nylic" fund would be
in cash, and again IL would be in secu-
rites. Mr.. Hughes read an article or
the bylaws eXempting the trustees
from the necessity of accounting Tor
! the profits and losses OF the Nyllc
fund. and MIR. Perkins said if he made
! anv substantial losses he would make
them good. though not legally respon-
sible for them. In a concluding state
ment he said he had absolute control
! of the investments about which he had
been questioned. and that they had
yielded a profit of nearly $'oO,oOV.
Mccall drilled.
President John A. Mccall OF the New
York Life Insurance company, was next
called and asked about the notes given
by Andrew Hamilton and why the New
/ York Life paid them. He said Hamll-
ton had, $40 600 or $4,000 from the New
/ York Life in 1901. In six years he had
1 about $4,000 a year. In talk with
| Hamilton as to the cost of the legal
bureau of the New York Life Mccall
J estimated the average yearly cost at
/ SlO5 900. Mccall said he wanted 10 keep
| the expenses down TO $1,000 state and
| Canada. AT the end of the year Ham
! ilton said about $50 900 was due him on
what he had paid out for the company.
| The New York Life paid the claim.
| President Mccall did not recognize
/ any of the notes shown today. He said
| he required no statement of Mr.. Ham
! ilton of what advances he made. In
| 1886 Mccall made an arrangement that
Hamilton should have . per cent of his
! disbursements. Hamilton was limited
! 10 500 900 in disbursements. His re-
] tainer was 600. Hamilton never rem
dered an account Of his disbursements.
Roundabout Way to Settle.
why did you not settle this claim
| directly instead of through J. z. Nor
/ gan & co. ," asked Mr. Hughes.
He was gettine $lS,O00,' Mccall re-
piled.
IN 1902 we could not have paid him
! directly and kept the expenses of the
! legal department under 100000 year.
/ [ preferred to keep Mr.. Hamilton in
control of his expenses. He got only
! $50 900 the next year"
Mr.. Mccall said he is trustee OF the
! Central National bank, and had told
! the bank Hamilton was good for
/ $50, 900. Mr.. Mccall said he had no
! specific knowledge of Hamilton's note.
/ Asked about two notes amounting to
SIS, 600 endorsed by John A. Mccall. Mr..
| Mccall said Andrew Hamilton got this
money. He told e. L. Mccall he would
guarantee Hamilton would pay any
| amount to Z. f. Mccall up to $4,000.
| He did not know anything about the
purpose for which Hamilton wanted
the money.
Could Not Explain.
Mr.. Hughes asked why f. L. Mccall
signed three of the notes taken up by
| j. =. Morgan & Co? Mccall said he
could not explain it, Mr.. Hughes said
the aggregate OF the notes was $40 000
in excess of the sum paid Mr.. Hamil-
ton, and Mr.. Mccall said that was an
other matter which he could not ex-
plain.
Mr.. Mccall said he did not want TO
| be bothered by Mr. Hamilton's notes.
and so agreed with Mr. Perkins to
allow the Steel syndicate profits to be
used TO pay Hamilton. BY this plan
also the deal was kept out of the ledger
of the New York Life Insurance COM
pany 1t was the fault Of the book
keeper that the s59.S10 paid to Hamilton
did not appear in the eompany's ledger