The Barre daily times. (Barre, Vt.) 1897-1959, 1905-09-22
PROFITS WERE DIVIDED.
Insurance Probing @0nly Started" Says
Attorney Hughes-Proft Of $685.
$50 Made in Joint Accounts
in Two Years.


terday. The first subject brought N
by Attorney Hughes for the Legislative
committee was the overnight sale OF
100000 Of navigation bonds to j. p
Morgan = Go. by the New York Life
on Dec. 81, 1908.
In that transaction Mr.. Perkins acted
as chairman of the finance committee
of the insurance company in selling the
bonds to his own banking firm. and
again he acted in the same capacity in
rebuying them. The apparent object Of
the deal, as indicated in the previous
testimony, was to prevent the bonds
from appearing in the New York Life's
report TO the insurance department at
the end Of 1908.
I'VE have not yet reached the meat
Of this inquiry" said Mr.. Hughes. In
fact, We have only started in it,
The first witness was John f. Nc.
Cullagh of Albany, who IS employed By
Judge" Andrew A. Hamilton. The
checks for 100000 given by the New
York Life Insurance company to Mr.
Hamilton bore McCullagh's name as in.
dorser, but the witness said he knew
nothing about the checks except what
he had read in the newspapers. He did
not know whether Mr.. Hamilton APP
peared before legislative committees. nor
dla he know anything about his en-
ployer's account in the New York State
National Bank of Albany. He did not
know of any other account Of Mr.. Ham
ilton in Albany, but knew he was elect
ed director of the Albany Trust COM
pany about a year ago.
The witness said he did not know
where Mr.. Hamilton's books were, nor
would he know where to find any of his
employers cancelled checks. Mr.. Me-
Cullagh said further that he knew noth-
ing whatever about the 100000 paid
to Hamilton, and concerning which Mr..
Mccall, president of the New York Life
Insurance company, was examined We'd
nesday.
George w. Perkins, vice president OF
the New York Life Insurance company,
and partner in the banking firm OF
j. Pierpont Morgan 4 Co., was the next
witness. He was asked to produce the
check for 100000 given to J. p. Nor
gan & Co. by the New York Life com
pany for 100000 Of bonds Of the nayi-
cation syndicate. These bonds were
sold by the New York Life company
to j. z. Morgan Il Co. at the close Of
tine calendar year, Dec. 81, 1908, and
bought back on the next business day,
Jan. 2, 1904.
The check was offered as evidence.
An accompanying check for S228, 900, Mr..
Perkins said, he did not know about. but
would look it mp. The check of j. p.
Morgan & Co. for 100000 in payment
for the bonds was also asked for.
Mr.. Perkins then presented state
ment of the New York Life Insurance
company's joint accounts from 1897 10
1905.
Mr., Perkins also presented a number
of other financial statements that had
been requested. Then he said:
Mr.. Hughes, | think / have every
thing you asked for. | wish to make
a correction on the records. / think
you assumed the object of the naviga-
ton syndicate transaction between the
New York Life and j. p. Morgan &
Co. was to enable the former to reduce
their holding temporarily from $4,000
600 to S3,200,000. You asked me wheth-
er our purpose was to report S3,200,000
furnished me records me as answering
Yes, sir ! wish to correct that.
didn't mean that; don't mean it"
You mean to say MOI" asked Mr..
Hughes.
II mean to say no. replied Mr.. Per-
kins.
Mr.. Hughes would not let the witness
proceed, but said he would come to
that later He asked Mr.. Perkins 10
produce all certificates the New York
Life held on December 81, 1908, showing
its participation IN the navigation syn
dictate; and he particularly wished to
know what instrument or certificate the
New York Life Insurance company de-
livered j. j. Morgan & co. on that
date.
II win be glad to furnish the iuforma-
tion,o said witness.
Among the joint accounts Mr.. Hughes
found a participation Of the New YorN
Life Insurance company with G. T..
Wing & Co., in which, on the purchase
Of railroad bonds to the sum Of S1,7s0,-
600, the New York Life Insurance COM
pany received profit of S32,753
The witness did not know what profits
the firm Of G. i. Wing & Co. got in
the transaction.
From this account it looks as if the
New York Life put up all the money"
said Mr.. Hughes. DO you know wheth-
er it is true OF notln
Il do not. I am not the book keeper,
but ! presume the accounts are cor
rect"
MIR. Perkins again took the stand and
said that in another Joint account with
Sachs & Co, the latter com
pany bought the bonds amounting to
81 100000, and that the New York Life
Insurance company carried them until
they were sold. The profits were divid-
ed, each receiving S12,1s4.
1t was shown that the profits Of the
New York Life Insurance Company from
1909 to 1901, inclusive, in Joint ac- |
were S3Ss,3s2.
Mr.. Perkins continued: st was an
EXCELLENT point that you made the other
lay as to why we did not try and
10 a larger business and get securities
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