New-York tribune., 1905-11-11
REBATES FOR HEGEMAN.
Continued from f1rst page

Q--Ihree per cent Ii stated, and IL appears
= lsGS s aO q loan was made to William A Read Of
that loan at per cent was according to the market
rate or not for call loans? A.-At the time ii was
- o.And has the market rate for money remained
Q,-You have from time TO time ts'H made sales of
certain securities to William A Read, have you
,oa,,I find ind in your record of sales that between
Read $4,000 par value Minnesota Street Railway
and no ST Paui M City Is at 100. A.-Yes.
Gnr0nies Of April 1905, that first IS OF the Min
ket value at that time Do You know a whether or
e1 5er bn you sold these TO Mr. Read somewhat un-
Mr.. Lindabury-It is erroneous to assume those
were were TO Vermiye & Co It means it through
DOUBTS PAPERS ACCURACY
tbes 5 Ian a ea4g your attention to s1oO @ 900 & o.
II at 107. and it appears from The Commercial
and Financial Chronicle OF May - that the quo
know what explanation You have of this apparent
< Co at Somewhat 70 0e 0F Jfbasm Fb market Yalue?
en should not rely upon the quotation IN lhe
81 find sale under date Of April J. 1905 to or
fhI0ngh & William Bead q CO Of a0d Gaa @ On n
and | find in The Commercial and Financial
as g BID and sS s' asvs
abd f9n Of sRee th al nave no sye tic on IN Mr Mr.
other and that would apply to all these cases.
record Of sales s5o0oo sold to or through william
a Read & Co. of the Minnesota st. Paul and sault
am informed that the bid in the market at that
time was 1919 Do you know whether that is so
Q.-I notice your statement yesterday that when
ties and atfix the market value you send il down
lermiiye Co. or did. this being prior to the dis
No, to have the market values filled in.
ever occur to You with a view 10 ascertaining
whether those bond values filed in at amounts
profit on purchases of securities from Vermilye &
Co? find for example that in your statement of
In Ia
way consolidated bonds. s500.000 par value 96l3
9 January M ha aae of 6e
United Railway consolidated for the end of the
may have been possible. Mr.. Hughes; they may
nTc 9d ia ober an oe sJ We al re9 a no very the e od al %
and accuracy of their statements and we never had
pear to be- because they entered s652 and some
paper should quote "a, that that fatal to their
Q,-The quotation was "a bid and s5 asked? A
say at the very moment they may have had an
,o.aoBut you of course don't know anything about
Q--But it appears that these securities A
We have always had absolute rath in their in
o.-But it appears that these securtes-that is;
December p. nine days before at "a? A.NYes but
nine days two points and half
OTHER INSTANCES SHOWN
Q,-But the trouble is that whatever indication
we have here of value is that it had not gone up
that this is not an isolated case. There are num-
eG bsr Of For & example here is Decem1fr Hrne "a
sofa Street Railway and ST Paul City Consolidated
between 102 and 10S, and those put in your re-
ports of December 81, 1904 worth 1O5. although
cial Chronicle" advised. is stated at the end
of the year 1O3. Have you anything further to
say in regard to that? A--What We're the quota
at between 102 and 103 and scheduled at 105? A
There would be no object, Mr.. Hughes, in giving
hat afi0Di pprp NOT he
Q-of course in your market values goes in ,t9 to
SHp no so soft o it yGg that ggTf T
dt"e that. are NOT 50 Sii0'' u 9'' D''' ''''' ''
After a long discussion of the various specu
lative syndicates in which the Metropolitan
had shared almost invariably through William
A Read & Co as syndicate managers, Mr.
Hughes returned to the personal relations be-
tween Mr.. Hegeman and the broker 1t was ap-
parent from the manner in which he examined
the witness about these syndicate ventures that
Mr. Hughes questioned the wisdom of investing
money of insurance companies in ventures so
purely speculative. In the course of this ques-
tioning Mr. Hegeman was asked to supply
statement of his personal syndicate participa-
ton where the Metropolitan was interested. The
examination regarding the personal relations
follows:
Q.-Have you or any officer Of your company
in way. directly or indirectly received any
& Co? A.-Yes l have the monetary affairs. and
have had for great many yea6s perhaps twenty
orphans and widows and people in Europe, out of
business and not in active business Their affairs
with my have necessitated the keeping OF
account. 1 have had account with the old firm
account they have charged me interest from per
When they have charged the extreme rate they
have times re ebasd & TO fog, e m part MeKa 81 ~ which m NJ
df tb rn o excen Mr. Read That is ali the money
7 baVe ever of
interest running account.
in reduction of that interest for payment on the
general account? A-No; deduction OF the interest
me in the account for purposes of their own or
by themselves never importuned them for ire
ducng the price 10 or 212 per cent and giving me
the difference.
REBATES on PRIVATE ACCOUNT.
o-Giving you individually the check for the
difference? A.-On my personal account
Q-Was this simply for t4e af excess m interest on
Q.-Was this personal account the combined ac
Q.@That you were handling individually? A
Did you have margin account with Yer
y Ia Sd % az az NV own Securities deposited with them
Q.-I mean you have had a speculative account?
o%They are buying or selling securities for you
A.-And for the other people. 49,.
Q.-And they charge you per cent for that? A
o.-And when they would charge you per cent
they would give you a check for reduction? A
Yes.
Q.-And 1t is on this account, well on these
other matters you have mentioned they gave you
a rebate? A--Not in any other matters. only the
interest.
Q.-You mentioned handling money for fifteen or
twenty people? Alt was merged in one account
Q.-It was merged in one account? A.-Yes and In
the reduction of this interest Mr.. Mckay and the
others would send check for the reduction
Q.-You had but one account that embraced nc
transaction. the moneys of these other people with
your own? A-Yes, sir
Q.-And that also embraced different speculative
transactions you had in the purchase or sale OF
securities? A-Yes.
Q.-And that account would have various rates
of interest? Alt would