Omaha daily bee., 1905-09-16
CASH FOR CAMPAIGN
New York Life Pays Large Sums to Repub-
lican National Committee,
STATEMENT MADE BY G. W, PERKINS
Says officials Feared Democratic Success
Would BndGnger Assets
MIN WHO SERVES TWO MASTERS
Vice President New York Life Represents
]. P, Morgan & 90, in Same Deal.
PROFlTS MOE FROM JOINT ACCOUNTS
Treasurer Randolph submits state
ment showing Earnings of $780,
451 from This source In
Ten Years.
MIN WHO SERVES TWO MASTERS
Vice President New York Life Represents
j, P, Morgan & %. in sHms Deal.
FROFITS MOE FROM JOINT ACCOUNTS

CW YORK, Sept. 15.-George w. Per-
lns, member of the firm of j. p. Morgan
& Co., and first vice president of the
New York Life Insurance company, was
the star witness at this afternoons 5 session
Of the special legislative commtte probing
life insurance companies methods, and his
testimony was repete with revelations IN
the development Of finance as applied by
insurance companies. The climax Of the
day came when Mr. Perkins was asked
concerning an entry of S4S,7O2 in a ledger
marked ordered paid by the president"
The check was made out payable to J.
p Morgan Co, and Mr.. Perkins
frankly stated it was a contribution to the
national republican campaign committee
and paid to Cornelius n. Bliss Mr.. Per
kins said This payment was made after
very careful deliberation. 1t must not be
considered an ordinary contribution to the
campaign fund. 1t was paid because we
/. felt the assets Of the New York Life com
pany would be jeopardized by democratic
success"
He said they contributed in 1900 and 1904.
This bomb was thrown when the room
was packed with spectators every one bent
forward to catch the testimony.
Finance Committee Not Informed.
Pursuing the check inquiry further, Mr..
Hughes brought it out that this expenditure
was never brought to the attention of the
finance committee, the witness terming II
A purely executive action" It was charged
against cash in the books of the Hanover
bank office or financial department.
Mr. Perkins here interposed:
Il would like to make one statement.
The fact the check is drawn to j. p. Nor
gan & Co, has no significance. l paid
out the money and it was merely because
of a convenience of repayment that the
check made payable to j. P. Morgan
Company"
What other contributions to political
campaign funds have been made by the
New York Iife?"
None to my knowledge"
sale and Repurchase of Bonds.
Mr. Hughes asked Mr.. Perkins to ex-
plain how on the books the syndicate ac-
ton by which ssO9oOO on bonds was sold
on December 81, 1901 and bought back
January ?. 1902, there was shown on the
debit side OF the account 100000 and on
The credit side $4,000 and Mr.. Perkins re-
Piled: I'm that transaction we asked for
t5,OO0Oo0 Of bonds and only got $4,000 900.
We made Vp our minds to sell the $500, 900
OF this sum ana our books therefore only
showed s., 900 600. When It came to the end
of the year we sold the $4,000 and in
stead of taking a loss Of $4,000 we only
took loss Of $50, 900. l arranged with ]. p.
Morgan & Co. to sell It at a price and then
! bought It back at the same price. After
rebuying I held on to It and finally sold
It at 80. Our first idea was to sell at 81
but we finally got 90 The money was
paid by check TO j. P. Morgan & Co."
Were not the sale and purchase for the
purpose of deceiving the commissioner OF
Z insurance."
a. mo. II was not, securities were de.
Z pressed at the time and It was considered
good deal"
But the real purpose was to have youi
books read s3,2OO,OO0 instead Of A,OO0O0O
"Yes"
Senator Armstrong here queried abou
the $4s. 400 check 10 the campaign fund. II,
asked:
IF the president out Of his own execu
tive authority, without reference TO tn,
finance committee, pays out such larg,
sums as these how do they ever conn
before the officers of the company"
II have said the finance committee ha
no authority over the agency account
and general expenses. think there shoult
be a broadening of this authority"
Mr.. Perkins was then asked about tn
checks for $4,000 and $4,000 made payabl
to Andrew Hamilton, March g. 1904
lie could not tell whether they had L
DO with Home Annex account on the requi
sition OF the Worth street property, neithe
could he say Why payment for propert
in New York should be made to a ma
living in Albany.
Serves Two Masters.
Assemblyman Rogers then expressed hi
desire 10 ask a few questions about tn
sale OF bonds on December 81 TO ]. /
Morgan & CO. and the repurchase o
January ?.
Now. Mr.. Perkins, you acted in IN
transaction for the life insurance compan
and also for ]. P. Morgan?"
Il completed the transaction for J.
Morgan & Co. because that house was N
only place where I could realize fair SUI
for the bonds at that time. We lost notl
Ing in that transaction. but we made notl
Ing; but in financial transactions it is SOM
times just as important not TO make a loi
as to show a profit"
Assemblyman Rogers: Has there bee
any other case in which you have acted Z,
both the New York Life and ]. P. Morga
& Co. at the same timer
Il recall no other transaction"
Senator Armstrong; Now, in the tran
action when did Mr.. Perkins. an oficer
the New York Life, give way to Mr.. Pc
kins. an oficer OF ]. p. Morgan & Co.. p
Il don't understand your point"
Well. you. as an officer Of the New Yo
Life. issue one order, and Perkins. as
oflcer OF y. p Morgan 8 CO., receives
When we're you acting for the New Yo
IEse?"
- "All the time"
When were you acting for ]. P Morg'
- & Coz
That depends on the occasion"
well, II you are acting for the Ne
York Life there is not much time left 4
j. p. Morgan & Co." remarked senat
Armstrong.
MF. Perkins Protests.
Mr.. Perkins then burst into a protest
tion.
M Chairman, 1 act as I think right.
think whether 4 am acting for the Ne
York Life or ] p. Morgan & co. l follC
. .~o,ttn,,.d nj, sacond pagaA