New-York tribune., 1910-04-12

Trust Company. The latter company was
the successor in interest Of the American
Bond and Mortgage Guarantee Company
10 which a special charter. giving eNtraor-
dinarN pOwers-Some OF them OF an insur-
ance nature-had been voted by the Legis-
lature Of 1900 Inquiry into this trans
action suggested the importance OF care
ful investigation OF the books OF certain
financial institutions now out Of business. 10
the end that the circumstances .urround-
Ing The acquisition Of portions OF .1Sn S,a
stock by this witness and others might De
spread upon the record. Again a notice
was served which In erect preNenlen
an examination OF such books, ana further
progress along this line was thus Tor the
time blocked. The testimony OF 4 Noiun-
tary witness. however. threw strong hsh1
upon the methods followed by those VINO
sought special charters. with wide cor
porate powers. from the legislatures ol
several years ago. ,.
Likewise further inquiry into certain
/ facts-developed as She result Of n sugges-
ton made by the counsel for former sen
ator COnger-Seems 10 be not only eIettNt-
/ ly blocked, but also probably iinpiol'eetl,,
Ellingwood & Cunningham were foin w
TO about March, 1905, stock orokeia6e
house operating in New YORK \ pe'',iO9i pc, 'a,'9
IN bankruptcy was fled against them anu
a settlement made with their creditors
Their books. papers and records. ho"eNv,.r' w.
remained in the possession OF JAM ~
Cunningham one Of the members OF tne
firm. For about five years prior 10 the lal ,
ure Of this firm one q. Tracy Rogers v ilV
] = that time seems To nave Dtti Wv iNsA-
| lative representative at Albany OF the uat ul
tion interests-was a special partner IN 'he
firm. ,.-,,,,,
resulted I'm his nlacing I'm the possession OF
the Superintendent Of Insurance three Isi -
lOose-leaf ledgers. covering the transa Cli1,9 ,
OF his firm from 1890 10 March. lYv2' lhttu-
sive lie also gave Information as 70 the
existence and character OF the other hoohS'
papers and records or such frm ailu pIoln
ised TO make the same available. An eNat.-
inatfon Of such ledgers developed the eNtSt-
ence therein OF accounts with seFeGal 10.
r,7er members Of the Legislature, some OF
whom had been active on the insurance Snd
rrles committees. Mr. Cunningham Va
therefore asked TO take the stand ana give
evidence tending to develop Whei,lGl Whee,,,'rs IA
of the transactions with such memoeIS o az
10 do with moneys disbursed by inSutahSe
companies His examination al once Ildde i
IL yerv doubtful whether furtneI iHquii-SS -
could properly he made unoer SeC'iOh %
OF the insurance law. . 60,
The accounts referred 10. hoNeNg,., - -
setbe- with the testimony or the witness,
T,1Innirgharn- both read in connection VIII
the accounts on such books OF -. -
Rogers and others associai{ea ,{s, s,,cb hooks
"a an extent al least. had been ciedt. .l5
house for financial transactions Sohi~eCoru ~
with legislation during the periou i"'N
toned.
Significant Facts.
Thus far thirteen accounts have been eK-
ar1ined, nine Of which appear 10 nave pSSu I5I
with those who Were members OF me leg
islature al that time. ana fouL WIZ PS- Pt,o
sons prominently associated Win Ie6iStseassls
eegas-s or in the same COterle OF poltlcai
influence Several other accounts pa " "
lsrly those of c. Tracy Rogers shp "a o. ,..s - ..
member have also been foond I'D sue"
books s.-,.-.s j.,
the thirteen accounts just mentioned ale
FirstWSeveral Of the accounts either have
their origin or become active near ne eoe Glose
.oF he legislative sessions OF lett OF AoJl.
Second-Sorne Of such accounts STOW
credits Of cash in considerable aflou'it, - ao
about the time the legislatures VI '''0'O
TbirSIfn some instances these credits
show that they resulted from d ,es'I ~ va %
check payment by q. tracy hoee'9' %
through a transfer from his account.
Fourth-In two or three OF the accounts,
credits Of cash. sometimes from or thioug.
the account Of Q. Tracy Rogers. were onset
almost Immediately by cash Wlthura"als.
Fgfth-Some OF the accounts show puI-
chaSeS and short sales, eVtdenClng the pos
session bv the person interested OF INSIDE
information as 10 prospective oper a'ioll9
through mRnipulatiOns in Wall street
Sixth-In one account, numerous uneN-
plained entries were made. showing with
drawals by one Of the persons mentioned.
AT time when he was heavy DEBTOR OF
Seve1th-In a considerable number OF
accounts appear transactions IN stock moi
Gated bv the word Trans. which seems 10
means the stock OF either the New York
Transportation Company or the Rev 1oIk
T-1p-f~rr Vehicle Tran NTDrfHIion AeIffnti-.-
two corporations al that time closeiN aIileI
and ultimately H.ereed under the name oI
the former. BY Chapter 65l OF the laws OF
1900 IL became possible Tor the tISl Lltl-
tiored company greatly 20 extend its iran
rhiee i'm the CITY Of New York. tOln"ideni
with the passage Of this blll. several OF tlle
( persons whose names appear in these books
+ seem to have acquired blocks OF this stock
The books do not furnish complete lhIoI-
nation to such acquisition. but the sig
nificance % some OF the dates-theN beihS
almost ccincident with the final action
taken bv the Legislature on the bill which
ultimately became Chapter 65l-is notable.
Eguallt notable is the fact that. when Sev-
erai OF these blocks were sold by this
brokerage house. in 1901, the price realized
seems 10 have been moro than double the
market price OF such stocks az that time.
There are also minor pecullariues about
these accounts which suggest inyeSiGation'
a.. for instance: tat In several accounts
the absence Of cash or margin credits at
times OF purchases: thb in one Of the ac-
counts the rebsting Of a considerable sum
Of interest and tc) the apparent fact thaI
some of the accounts show large debit bal
anceS Al the time of the failure OF the
brokerage house. but seem not 10 have
since been pressed FOR payment.
Certain Of the accounts in these ledgeTs
show close connection between g Tracy
Rogers and the metropolitan tractlon m
7 ferests in New York City. The character
Of the securities dealt in frequently re
calls legislation urged or retarded al about
In short. these books-;ogether with the
4 memoranda. check stub books. checks ana
d correspC nGenCe Of this frm-soem TO call
4 for further investigation and inquiry.
When an effort was made so 20 Do, obJec-
] ton thereto was raised by an attorney.
who had not previously been the counsel OF
the witness and who declined TO be sworn
when an attempt was made 10 ascertain
. his connection. If any. with interests rep
+ resented hv 6. Tracy Rogers.
! II is not apparent that the Superintendent
: Of Insurance a such. has power. under
Section 80 TO proceed further with this
! phase Of the pending Investigation. For
that reason the facts thus far developed
and the books and paperes now in my pos
4 session are thus laid before YOU.