The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-11-29
Strange Latitude Given
Executive Committee.
A MUTUAL LIFE CURIO
The Deposition of George H. Squire is
Read. 1t Describes Syndicate 0per-
ations in Which Officers of the
Equitable Life Were Involved.
Hamilton Bobs Up.
(By the Associated Press. }

l.
insurance investigating committee ad-
journed today Charles E. Hughes,
counsel for the committee, produced
policy written by the Mutual Re-
serve Life Company, upon the life of
an unknown man, which policy stipu-
lated upon the first page that the in
sured should pay a fixed and stated
premium Subject to other benefits
and requirements elsewhere stated"
On page two of the policy, Mr..
Hughes read a clause that the eXecu-
tive committee of the company could
require the holder of the policy to pay
any multiple of the amount of the
.remum stated on the first page,
which the committee saw fit. Mr..
Eldridge, vice president and actuary
of the company. to whom Mr.. Hughes
read the policy, said that the sum of
such policies issued was small.
Previously Edmund d. Randolph,
treasurer of the New York Life In
surance Company said that it was
true that he removed S700.000 worth
vaults of the company and put a check
of the Central National Bank for that
amount in the place of it. on January
5. 1901. Mr.. Randolph understood
that the bank wanted the stock for
clients, one Of which was the Mer-
chants Trust Company. He promised
to give the committee later the names
of any officers of the New York Life
Insurance Company then in the Mer-
chants Trust Company. Mr.. Ran
dolph agreed with Mr. Hughes i'm the
conjecture .hat the stocks were to
enable some one to put them in an
non taxable securities.
Mr.. Randolph testified also that
during period of financial stress
some Massachusetts bonds and New
York city bonds. belonging to the
New York Life Insurance Company,
were deposited with the United States
government for the First National
Bank of this city This was done.
because the Secretary of the Treas
ury was demanding a high class of
securities against government deposits.
The New York Life received for the
transactions 100000, besides interest,
said the witness.
Deposition of Squires.
The deposition of George II. Squire,
formerly financial manager of the
Equitable Life Assurance Society. In
which he described some of the OPP
erations of the syndicates which in
volved officers of that society. was
read to the committee. Mr.. Squire
said in it that in 1901 the Equitable
Society bought 1000 shares of the
stock of the Lawyers Title Insurance
Company, and resold 1,500 shares to
several of it's officers and directors at
the purchase price-$174 Some of
the Equitable men sold their stock
later, said M. Squire, and subse-
quently large blocks of the stock were
sold back to the Equitable Society at
S310 to $3.50 by the firm of William
son & Squire. The firm might have
bought it from the officers of the
Equitable Society, Mr. Squire said, this
he did not know.
Mr.. Hughes also brought out that
profit of $22, 900 had been paid to
Mr. Squire from the sales of stock
from the Lawyers Mortgage Company
to the Equitable Society, and that |
Mr. Squire had divided profits from
an unknown operation, aggregatng |
$1S,960. among four officers of the |
Equitable Society-James w. Alex |
ander. James H. Hyde, Thomas D. |
Jordan and w. H. Mcintyre.
The fact that the New York Sc |
curity and Trust Company paid $1S,-
900 to Andrew Hamilton. the legisla |
tive agent, out of moneys belonging |
to the New York Life Insurance Com
pany was also brought out today by |
Mr. Hughes.
W. S. Fanshave. q dealer in invest !
ment securities, told the committee !
that in 1904 he bought New Orleans |
Traction bonds of a face value of |
$1,250,000 from the New York Life |
Insurance Company and George w. |
Perkins trustee of the "Nylic" funds, |
giving them his checks, amounting to |
$937500 in payment, and then bor- |
roWed the Sg37500 from the New |
York Life Insurance Company. using |
the bonds as collateral. He then |
sold the bonds, giving the New York
Life Insurance Company 95 per cent |
of the profits and keeping five per
cent.