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

TO do II, 10 pay II out OF the prohts.
Kept Out of the Books.
In that way it would not get on the
New York Life's books" said Mr..
Hughes.
Yes"
Nh Perkins said voluntarily that the
plan of syndicate participation dis
/ closed was made by him. He added
, that the New York Lies profits by il
were more than $435, 600, or eighteen
times his salary as vice president. he
/ declared il was not a devious" way as
( described by MI Hughes, and said he
was Perfectly willing 10 stand on his
record. Mr. Perkins said President
! Mccall had sent letter 10 HamiltOn's
/ address in Europe and TO his Albany
ofnce 10 be forwarded, and asked him
10 come and testify. Mr.. Perkins did
| not know whether Mr., Mccall asked
Hamilton TO send an accounting if he
could not return TO New York.
Story Of the Cashier.
Theodore F. Banta, cashier of the
New York Life Insurance company,
next testified. Mr.. Banta said he knew
nothing about the check for $40 1873
which was paid TO George W. Perkins.
Ihe cashiers department had no VOuch-
ers OF money paid out on order from
the comptroller or an executive officer.
He knew nothing about campaign con
| tIlDutlOns. Mr.. Banta said that for fif-
teen years he had not been in position
10 discover irregularities in the affairs
Of the New York Life Insurance COM
pany. He recalled an affidavit he had
sent 10 Texas that the New York Life
insurance company had not paid cam
pdIgn expenses. Asked what he had
/ based that on, he said he did not know
OF such contributions. The affidavit
was brought 10 him by Stuart Brown,
confidential man of President Mccall.
Mr.. Banta said that the. statement that
some years ago he had paid $4,000 TO
| IhOmas G. Platt was absolutely false.
lie had not seen Mr.. Plat. Once an
attempt was made TO collect $50. GOO for
the Republican party. but ne had re-
FUSED 10 pay it in the absence of the
officers Of the company.
Tax.Dodging Scheme.
Ia reply to other questions by Mr.
Hughes, Mr.. Banta said that about
January, 1901. $500, 900 worth OF New
York city stock was taken from the
vaults of The New York Life Insurance
company and check on the Central
National bank was substituted.
The stock came back In a few DAYS.
the books Of the company 10 his knoWl-
edge No receipt was given for the
stock. The ownership of New York civ
stock would have been important for
purposes of taxation.
The New York Life Insurance COM
pahy Is not taxable, and this transac-
ton would have given someone 500. 600
OF untaXable property. Mr.. Banta said
ne thought there had been a similar
transaction before, but none since. The
stock was delivered on the order of
Edmund d. Randolph, treasurer of the
New York Life Insurance company.
and Mr.. Banta supposed he acted on
the order of the finance committee. Mr..
randolph had since intimated that he
did not approve of such transactions.
Profits Were Diverted.
Mr. Hughes then read the notes Civ
en- by Edward Z. Mccall and Andrew
Hamilton to the Bank & Trust com
papv. Mr.. Perkins did not know
whether the amount was for legal
expenses. He said the debts To ]. +.
Morgan x co. were liquidated from
the profits The New York Life received
Irom steel syndicate participation,
Mr.. Hughes read from a blotter of
the New York Life Insurance company
showing the payment of $50. $40 TO An
drew Hamilton. Asked if the payment
appeared tn the report 10 the state
insurance department, Mr.. Perkins said
ne did not know, but understood Pres
ldenI Mccall settled the matter. Asked
why l.. r.. Mccall and Andrew Ham
uton got money on their notes from
the Central National bank and the
New YORK Security & Trust company,
Mr.. Perkins said he did not know but
could nd out.
Mr.. Hughes then asked Mr. Perkins
10 explain why he (Perkins) received
a profit OF $40 1873 which was paid by
kiddef, Peabody & Co. of Boston TO
the New York Life Insurance company
FOR loan of $3.50 900 in 1904 Mr. Perk-
ms said that Robert Winsor of Kid
der, Peabody a Co., of Boston, called
at the Office of J. r Morgan & Co
in June 1904 and asked them to
take up a joint account with his firm
in connection with the Mexican Rail-
road company.
Did Business for "Nylic."
Mr.. Perkins told him that j. p. Nor
gan & Co. could not do it, but he
Perkins) would take care of il. Mr.
Perkins said further that he took up
the business for the "Nylio" fund,
which is owned by the agents of the
New York Life Insurance company, of
which Mr.. Perkins is trustee. Part
Of the proposition was that the Next
can Central Railroad company should
be supplied with $1,000 0O0 at once. The
"NyliC" fund did not have so much
cash. and Mr. Perkins did not wish
TO disturb its investments, so he ar
ranged with Edmund L Randolph,
treasurer OF the New York Life Insur-
anee company. TO take 81 00c 600 worth
OF Mexican Central bonds at 3 per
cent interest. The New York Life In
surance company, said Mr.. Perkins.
paid Kidder, Peabody a Co. $3.50, 00G,
and held the bonds until Aug. Il, 1904,
when the Boston firm repaid the loan,
interest on 81 00G. 900, and S40193 profit
on the transaction, to the life insur-
ance company. The profit of $40, 1913
was paid 20 Mr. Perkins as trustee of
the ''Nylio" fund. Mr.. Perkins said
no paid the money into the "NyliG"
func. The profits were sent to the
New York Lie Insurance company, he
said. because the company waa the
only party known to Kidder. Peabody
4. Co in the transaction. and the
check was cashcd and the cash paid
to Mr.. Perkins because II it had been
cashed and entered on the books OF
the New York Life Insurance COM
pany it might have been said that the
company received the profit and then
gave it away.
Continued 90 Page 2.