The sun., 1905-11-25
$4,000 MORE HAMILTON GOT.
SHARED ~ UNDISCLOSED ~ Y.
LIFE SYNDICATE DEAL.

|
These facts we're brought out at yester'
days hearing before the Armstrong IN
surance committees:
First-The New York Life Insurance
| Company omitted at least one syndicate
participation from the complete" list
which it furnished the State investigating
| committee several weeks ago.
Second-Of the New York Life's profits
in this undisclosed syndicate Judge
Andrew Hamilton. the company's legs-
lative supervisor, got 1000, the payment
to Hamilton being made direct by j. r.
Morgan d Co., the syndicate managers.
Third-Forty thousand dollars of the
New York Life's money, representing a
profit on loan transaction, was turned
over to George W. Perkins, the company's
vice. president, and no entry Of the trans
action made in the New York Life's books.
1t was stated that the money was used by
Mr.. Perkins for the benefit OF Nylic, the
New York Life's agency organization.
Milton Monroe Mattison, the New York
Life clerk who has figured in the inquiry
before as one of the principals in the in
surance company's dummy loan transac-
tions with the New York Security and
Trust Company, is the witness from whom
the above facts were obtained Mr.. Hughes,
the committees counsel, wanted to know
from Mattison first who had prepared the
list Of syndicate participations which had
been furnished to the committee.
Mr.. Shipman, the assistant treasurer,
had charge of that" said Mattison, but
he admitted that he himself probably had
something to do with it's preparation.
"Is it complete list?" asked Mr.. Hughes.
Il think it is a complete list of all syndi-
cate participations, was the witnesses
reply.
Mr., Hughes wanted to know why Matti-
son spoke so g,iardedly; whether he didn't
know as matter of fact that there were
participations which were not on the list
Not that we have subscribed for our
selves" replied the witness fdgeting
in the chair. He knew that there had been
participations for which the New York
Life money had been used but they were
not in the name of the New York Life.
They had been obtained through the New
York Security and Trust Company.
O. Why didn't you include such participa-
tions on the list furnished the committee?
A. Because they were not syndicate participa-
tions.
O. Because they were in the name of the
New York Security and Trust Company? A.
That Is right.
The witness denied that he had had any
instructions whatever in regard to the
preparation of the list or that he had talked
with any of the New York Lifes officers
about it.
HOW HUGHES GOT WIND OF 1T.
1t was from an entry in one of the blotters
in the Hanover Bank Building Office that
Mr. Hughes got his clue to the undsclosed
syndicates. Here is the entry:
April IS. 1903. Commissions and profits
earned by syndicate participations in 1903
United States Steel Syndicate, 3.OO6 per cent.
on 81, ,325, 600 less = share to the New York
Security and Trust Company (see their
letter. AZ, ,407I, sj2il7l3. The above amount
was received from the New York Security
and Trust Company account compensation
for funds contributed under their guara ntee
TO the United States Steel syndicate.
The letter referred to was written by
Alexander S. Webb, Jr., secretary of the
trust company, to Z. D. Randolph treas
urer Of the New York Life, and was dated
April 27. 1903 Here is the letter:
Dear Sir; We beg to hand you herewith
our check for $50 2.4l7.l3 being the amount
due the New York ife Insurance Com
pany out OF a dividend of per cent. upon
an interest of s2,325 900 in United States
Steel Corporation syndicate. which We are
carrying for you.
The amount is arrived at as follows: per
cent. on 81 1925 900 $50 s96.j2, less one quarter
share to the New York Security and Trust
Company, l7,E2.37. Balance. sj2,4l7la.
Kindly acknowledge receipt and obige
trlIv -
Secretary.
To the letter was pinned memorandum
written with a pencil by the New Y ork
Lifes assistant treasurer to the effect that
the $50, ,417.l3 received from the trust COM
pany was on account of compensation
for funds contributed (under their guar
antee) to their subscription to the United
States Steel syndicate. Across this m mo-
randum was another sentence written with
a blue pencil, as follows
MIR. Webb will send another letter"
Mr. Hughes wanted to know when the
assistant treasurers memorandum was
pinned to the letter, The witness thought
probably on the day it was received.
O. Do you know it was? A. / do not.
Q. When did you first see it? A.. j can
not say
y. DO you know anything about the time
of this annexation? A. No, but the natural
inference is that 1t was put on there the
same day.
O. We don't want the natural inference.
| had a natural inference that all partcpa-
tions were included in this list. l want to
know when this was pinned on. A, ! can
not tell you.
The witness said that Mr.. Webb. as stated
in the blue pencil memorandum, was going
to write another letter because there vas
an inaccuracy in the old one.
Q. In what respect was it Incorrect? A.
The phrase which We are carrying for you"
is inaccurate.
q. Yes? When was that naccuracy dis
covered A. Probably the day the letter
was received.
The witness didn't know whether Mr..
Webb had ever sent another letter.
PERKINS MADE THE ARRANGEMENTS.
Mattison testified that Vice President
George W. Perkins had made all the ar
for this syndicate transaction
Mr.. Perkins at the time was member of
j. p. Morgan & Co., the syndicate mana
gers.
Mattison denied that the New York Life
had paid anything directly on account of
the participation in the United States Steel