Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1905-12-02
NO RECORD TAKEN
Cashier of New York Life
Tells of Big Check Deal.
PERKINS on yYLlC OPERATIONS
Ex-Jussice ". n. sIcCau brought In
when HIS Note and Andy Hamil-
tons Were Paid at Presi-
dent McCaIi,s Request.

NEW YORK, Nov. IS. One of the
most interesting features of the life
insurance investigation developed at
the session of the Armstrong commit
tee when Theodore Il. Banta, cashier
of the New York Life Insurance COM
pany, testified that about the begin
ming OF 1901 Edmund u. Randolph.
treasurer Of the company, opened the
vaults of the company. removed New
York city stock valued az 100000 aud
put a check OF the Central National
bank for 100000 in its place, Mr..
Banta said he helped to open the vaults
at the order of Mr.. Randolph and that
he supposed Mr.. Randolph acted for
the finance committee. The stock was
kept out for few days and was then
returned and the check withdrawn.
The transaction was not recorded on
the books of the company SO far as
Mr.. Banta knew. The effect OF the
operation would be that any one hav-
Ing that stock would have 100000
worth of untaxable property at the end
of the year. Mr.. Banta did not know
who received the stock. Mr.. Randolph
is expected to be called to the stand
shortly.
George w Perkins, vice president of
the New York Life Insurance company
and member of the firm of j. F. Morgan
& Co. bankers, described to the com
mittee the transaction which resulted
in his receipt of S40,1 1913 from Kidder,
Peal body & Co. of Boston as half the
profits of the sale of $2.000,000 worth
of bonds of the Mexican Central Rail
road company, Milton M. Mattison,
a bookkeeper of the New York Life
Insurance company, had previously
testified that S930000 of the life insur-
ance company's money was used In the
transaction and that Mr.. Perkins got
the profit Mr.. Perkins said that he
went into the transaction for the Nylic
fund, which is owned by the agents of
the New York Life Insurance COM
pany, and that he invested the profits
for that fund. The life insurance COM
pany, he said profited to the extent of
per cent interest on the loan of 1890,
600 He stated that the company had
no right to the $40, 1913 profits.
Mr.. Perkins said also that i. T. Nor
gan & Co. had taken up notes of An
drew Hamilton and Il. II. Mccall, for
merly justice of the New York state
supreme court, amounting to $5G,310
at the request OF President John A.
Mccall of the New York Life nsur-
4hcf 40
with interest was paid to Andrew
Hamilton by the New York Life In
surance company from the proceeds Of
syndicate in United States Steel COR
poration stock.
President John A. Mccall told the
committee that he had told the Central
National bank and E. II. Mccall that
Hamilton was good for $4,000 and
that they had then taken Hamlltons
notes President Mccall said the New
York Life Insurance company owed
Hamilton the S56,310 and took the syn
dictate profits to pay him The result
was that the payment did not appear
on the books Of the company. The rea-
son was that he wanted to keep IIam-
ilton's expenses down.
| Much evidence was given both by
Mr.. Perkins and President Mccall
about the New York Security and
Trust company's participation in the
United States Steel corporation syndi-
cate to the extent of $3,250,000. having
the deposits Of the New York Life In
surance company for about that
amount The New York Life Insur-
ance company got 70 per cent of the
profits, and Mir. Perkins contended
that it was a safe and profitable ven
ture. President Mccall said the life
insurance company should have par
ticipated directly instead of indirectly.