The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-09-22
DOWN TO
BOTTOM FACTS
Life Insurance Inquiry Is Only Fairly
Started.
HALF HAS NOT BEEN TOLD
COUNSEL HUGHES INSERTING
THE PROBE.

Anew YORK, Sept. 21.-GeOrge w.
Perkins, vice president Of the New
York Life Insurance company and
member of the firm of j. p. Morgan a.
Co, was on the witness stand before
the special legislative committee prob
ing insurance company methods dur
Ing the greater part OF today session.
When an adjournment was taken he
was still on the stand with number
of questions pending to reply 10, on
which he asked permission 10 loop up
the records and submit transactions
There was nothing Of a sensational
character i'm the testimony today, the
only development of moment being
the witness disclosure in the New Or
leans Traction syndicate. in which the
company sustained loss OF over $SOV
000
Uncovered by Hughes.
Edmund V Randolph. treasurer of
the company had been questioned
rather sharply regarding this transac-
ton when he was on the stand last
week. Today the matter was brought
up, when Counsel Hughes attempted
10 probe the collateral loan account.
The bonds of the New ORLEANS Traction
company had been bought from the
New York Security and Trust company
'NSt So, and were subsequently SOLD at
-. Mr.. Perkins testified they were
sold on December 81. 1908, to Fanshawe
and company for $685., 500. Mr. Hughes
found under date of January ;, 1905,
a loan of that amount 10 Fanshawe and
company, and asked if the loan was
made against these bonds. This Mr..
Perkins said he would have to look il
up, and the question was dropped for
the present.
Perkins Could Not Explain.
II was brought out that John r.
Hegeman, president of the MetropOli-
tan Life Insurance company. was
carrying a running loan with the New
York Life of $4,000 at 1 - 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 explain
why, after the New York Life had
bought 81 00O.O 900 worth of bonds from
j. p. Morgan & Co, S2,00O,0O0 worth
should be sold back 10 that firm at the
same price within two months and no
minutes of the finance committee could
be found TO explain it.
The transaction ia Navigation syndi-
cate bonds of December 81, 1908, when
Mr.. Perkins, for the New York Life,
sold "a Mr.. Perkins, FOR j. Z. Morgan
again when the warrant for the cheek
of $500, 266 was produced. These bonds
were bought back by the New York
Life two days later and the $3.50. Mr.
Perkins testified. was FOR the adjust
ment of interest Mr. Perkins would
not acknowledge the transaction was a
loan.
Dealings With Morgan Company.
The total dealings of the company
with the Morgan firm amounted TO
S5g,2S6,015, with profit of 1854, 1878,
The manner of the cOmDanys income
was for the present dropped and the
way of spending the money was
prObed. The agency system OF the
company was described and at this
time Vice President Thomas y Buck
ner, who has charge of the agents, was
called. He stated that the total saiar-
les of the agency inspectors were $t25,-
CO0 annually Agency directors get an
average annual salary of $1,000 The
latter receive about $1,000 coo annually in
bonuses
Mr.. Buckner was unable TO answer
many questions without referring 10
records and viii be called again
Corrected His testimony.
Earlier in the day MIR. Perkins had
been questioned on the Joint account"
transactions OF the New York Life
which he was unable 10 explain last
Friday. He occupied almost the en-
tire morning session and presented
statements of each account. Mr.. Per
kins took occasion TO correct his testi-
mOny of last Friday relative to the naVi-
cation bonds until he was asked if the
object of the transaction between j. p
Morgan & Co. and the New York Life
Insurance company was 10 remove the
$500 600 bonds from the insurance COM
pany's books and reduce their holdings
Temporarily from $1,000 600 To So. 100000
Mr.. Perkins answered yes, but today
said:
Il did not mean that; / meant to
say No
Before Mr.. Perkins took the stand
John r. McCulagh of Albany. a
clerk for Andrew a. Hamilton was
called in an attempt 10 probe further
into the 100000 check matter. but Mr..
McCullagh could give no Information
and was excused.
The investigation viii be resumed to-
morrow.