Los Angeles herald., 1905-11-25
BoOkkeeper Of N. Y.
Life TestifeS
Big Sum Paid Legislative
GeneralissimO
Witness Also Tells Of $4,000 Being
Handed to G. w. Perkins, Of
Which No Entry Was
Made on Books
BY Associated Press.

BY Associated Press.
NEW YORK, Nov. 24-Startling de-
velopments were brought out at to-
days session Of the Armstrong COM
mlttee on insurance investigation in the
course of a minute inquiry by Mr..
Hughes, counsel for the committee
into the syndicate transactions partici-
pated in by the New York Life Insur-
ance company. The most important
witness of the day was Milton M. Madi-
son, a bookkeeper of the New York
Life Insurance company, during whose
examination it was brought out in the
case of the United States Steel corpora
tion syndicate, the managers of which
were ]. p. Morgan & Co., there ap-
peared in one instance a profit due to
the New York Life of $S7,1S5, from
which was deducted, no reason being
given. the sum of $59,310 paid to An
drew Hamilton, who has been described
in the course of the investigation as the
insurance legislative generalissimo."
1t appeared from records produced by
Mr.. Hughes that an account of j. p.
Morgan & Co. with Hamilton showed
in December, 1901. that firm had ad-
vanced to Hamilton the sum of $56, 720;
that on October 1, 1902, this amount
equaled, with interest, $59,31O, and that
it was then Cancelled by the entry of
that amount to Hamilton's credit. The
entry of this amount in the account of
the New York Life read "as per can
celed statement and arrangement with
Mr.. G.. w. Perkins," 1t was also de-
veloped that the participation in the
syndicate of the New York Life was
effected through the New York Secur-
ity and Trust company, by which one
fourth of the profits of the former COM
pany were retained.
$4,000 Paid to Perkins
Pressed by Mr.. Hughes to tell
whether he knew of any other instance
of money due to the New York Life be-
ing paid to third party. as in the
Hamilton case. Mr.. Madison recalled
the payment in 1904 of $4,000 to George
w. Perkins, representing the profit on
a loan of $930,000 to the Boston firm of
Kidder, Peabody & Co. The profit,
witness said, came in the form of a
check on the First National bank,
which he cashed, giving the money to
Mr. Perkins. What the latter did with
1t the witness did not know. No entry
of the transaction was made on the
books of the New York Life. Other
witnesses examined during the day
were George T. Wilson, fourth vice
president Of the Equitable; Francis w.
Jackson, auditor, and Gerald Brown,
in charge of the bond department of
the Equitable.
The committee adjourned until Mon
day morning.
George w. Perkins Of the firm of j.
P. Morgan & Co. tonight gave out thu
following statement in regard to the
testimony brought out in the insurance
investigation today:
1.-THE transactions referred to before
"a inv loo
the proper ones. If the natural course
of the inquiry does not make this clear
l am sure the committee will give me
an opportunity to offer further testi-
mony in the matter"
Gerald r. Brown of the Equitable
Life Assurance society was the first
witness called by the committee today.
Mr.. Brown, in reply to questions, said
that the King Model houses at One
Hundred and Thirty-eighth street, New
York, were taken by the Equitable Sc
clety under a foreclosure, sold to d. H.
King. jr., and that the Equitable So
ciety supplied SO, 100000 for construction
and improvements. Meantime the so
ciety held mortgage on the houses and
when completed Mr.. King decided them
back to the society.
Mr.. Brown said he supposed Kir5
''Was there to make a profit in sub
letting the contracts.
"The Equitable put up all the money
and King took all the profts?" askel
Mr.. Hughes.
"Yes, if you want to put it that way
said Mr.. Brown.
''What officers were responsible for
this transaction?"
'The executive committee" said Mr..
Brown, who added that Henry b. Hyde
had the matter in charge.