Omaha daily bee., 1905-09-22
PERKINS Is CROSS-EXAMlNED
LOsu to Esw York Life Of 100000 in One
Syndicate Brought Out
LARGE DEALINGS WITH MORGAN & co,
Man who Represents Both COmpa nies
Unable to Answer Many oues-
lions without COnsult-
ing Books.

hllhs VICE UINSlQeul OF lLle NtN Ablh A<AAN
Insurance Company and member Of the
lrm OF J. P. Morgan & Co., was on the
witness stand before the special legislative
committee probing insurance companies
methods during the greater part of today's
session. When an adjournment was taken
he was still on the stand with a number
Of questions pending 10 reply 70 70 which
he asked permission to look UP the rec
ords and submit transcriptions. There was
nothing OF a sensational character in the
testimony today, the only development Of
moment being the witness disclosure in
the New Orleans traction syndicate, in
which the company sustained a loss Of
over 10000. Edmond " Randolph, treas
urer Of the company, had been Questioned
rather sharply regarding this transaction
when he was on the stand last week. To-
day the matter was brought up when
Counsel Hughes attempted TO probe the
collateral loan account. The bonds OF the
New Orleans Traction Company had been
bought from the New Security and Trust
| Company at IS and were subsequently sold
at 70. Mr. Perkins testified they were sold
on December 81. 1903 to Fanshawe Co.
for 1897 800.
Mr Hughes found under date Of January
s. 1906, loan Of that amount to Fanshawe
& Co.. and asked II the loan was made
against these bonds This Mr.. Perkins said
he would have to look up. and the question
was dropped for the present.
transactions with Morgan d Co.
II was brought out that John r. Gege-
man, president OF the Metropolitan Life
Insurance Company. was carrying a run
ming loan with the New York Life Of $4,000
at II per cent interest. Mr.. Perkins did
not know whether this matter came before
| the finance committee and would look IT
/ up. Witness could not explain why, after
the New York Life had bought AOOO,OOO
| worth Of Navigation syndicate bonds from
/ J. p. Morgan & Co.. s.. 100000 should be
sold back to that firm at the same price
within two months, and no minutes OF the
| finance committee could be found TO ex-
| plain IL. The transaction In Navigation
{ syndicate bonds Of December 81 1895 when
Mr. Perkins OF the New York Life sold
Mr.. Perkins for J. P. Morgan & Co SsOO,OO
! in these bonds. came up again when the
warrant for the check of $500 266 was pro-
duced These bonds were bought back by
the New York Life two days later and the
$e66, Mr.. Perkins testified. was for the ad-
justment Of interest. Mr.. Perkins would
not acknowledge the transaction was a
loan.
The dealings Of the company with the
Morgan firm amounted to SSs. .2S6O75 with a
profit Of S7S4, 1860. The question of the
company's income was for the present
dropped and the way OF spending of the
money was probed. The agency sysyen OF
the company was described and at this time
Vice President Thomas A. Buckner, who
has charge Of the agents. was called He
stated that the total salaries OF the agency
inspectors were $125OOO annually. Agency
! directors get average annual salary Of
5000 The latter receive about 800 900 an
nually in bonuses.
Mr.. Buckner was unable TO answer many
questions without referring to records, and
will be called again.
Perkins ReverGes Previous Statement
Earlier in the day Mr.. Perkins had been
questioned on the Joint account" transac-
tions Of the New York Life. which he was
unable TO explain last Friday. He occu-
pied almost the entire morning session and
presented statements of each account Mr..
Perkins took occasion to correct his testi-
mony OF last Friday relative 10 the Naviga-
tion bonds. when he was asked If the OBJ
ject OF the transaction between J. P Nor
gan & Co. and the New York Life was to
remove the $4,000 bonds from the insur-
ance company's books and reduce their
holdings temporarily from s4, OOO 900 TO $500
00o. Mr.. Perkins answered Yes" but todav
said: Il did not mean that; meant TO say
/ No"
Before Mr.. Perkins took the stand John
?. McCullagh Of Albany a clerk for An
drew Hamilton, was called in an attempt
10 probe further into the $4,000 check mat
ter. but Mr.. McCullagh could give no in
formation and was excused. The investi-
cation will be resumed tomorrow
Investigation Only started.
The probing Of the methods Of life insur-
snce companies was resumed today by the
legislative investigating COMMITTEES. Before
the days proceedings were begun Charles
, z. Hughes. counsel 10 the committee
said ne believed the facts Of more
Importance and greater interest than any
developed thus far still remained TO be
brought out. We have not yet reached
: the meat Of this inquiry" said Mr.. Hughes
] in fact we have only started IT,
The first witness today was John r Nc.
Cullaugh Of Albany. who is employed by
Andrew A. Hamilton. The checks for $1,000
given by the New York Life Insuranc,
{ company 10 Mr.. Hamilton bore McCuI
laughs name as endorser, but the witnes,
said he knew nothing about the checks
except what he read in the newspapers
: He did not know whether Mr. Hamilton
: appeared before legislative committees, no.
! did he know anything about mis- employer
account In the New York State bank o
. Albany. He did not know Of any othel
account Of Mr.. Hamilton's in Albany, bu
he knew he was elected director Of IN,
, Albany Trust company about a year ago
- The witness said he did not know wher,
Mr.. HRmiltons books were kept. nor woult
. he know where 10 fnd any OF his employer
: cancelled checks. Mr., McCullaugh saiC
I further that he knew nothing whatever
$ about the s1O0OOO paid 70 Hamilton an,
= concerning which Mr.. Mccall. president q
s the New York Life Insurance company, wa
= examined yesterday.
= Milton Monroe Madison. a bookeeper o
i the New York Life. was called. He identi
b fed extracts from the books of the New
o York Life. showing that in the wfnE I
= Co account ths New York Life fnsur
Gnce company paid out u.70oOO0 som
bonds were withdrawn by the insuranc
company. leaving 8. $4,000 bonds in tn
J. joint account
n President Considers Subject.
!, OYSTER BAY. n. Y, Sept H-secretar,
: OF State Elihu Root. Senator Henry Cabo
), Lodge Of Massachusetts, and Joseph N
q Choate. former American ambassador Z
Great Britain, who spent last night a.
~ TDrarHdanf Raoza.zaIf l.ft g A.