The sun., 1905-09-13
UNLOADED ON NEW YORK LIFE
Continued from First Page.

Continued from Ftra Pdos.
back in 1901 and there was absolutely no
connection between the two transactions.
In reply to further questions Mr.. Randolph
said that when the New York Life relieved
tho trust company Of It's New Orleans &C.
curities and the loan on the syndicate agree
ment IL expected that others interested IN
the trust company would Join with the New
York Life In relieving the company. At
flrst. Mr.. Randolph testified. tho New York
Life contested" the point that they were
the proper ones to take the loan but the
trust company prevailed In the end ana
we did It.
O. So you put into the New York Security
and Trust Company at that time ss.77S.ooo'
A. We got ouid pro quo.
Q. You put in that amount? A. Yes.
Mr.. Randolph went on to say that the
New York Life was not participant IN
tho syndicate; that thew merely loaned
on the participation. Mr.. Hughes wanted
TO know what the COMPANY paid $2, ,tO0.0 900
for. and Mr.. Randolph replied for the partici-
patton In the amount OF SS.ssS,oo0. He
contended that the purchase OF the syndi-
cate participation from the New York
Security and Trust Company did not
carry with it membership In the syndicate.
The intimations which the New York Life
had when IL invested In the New Orleans
holdings that other persons Interested
In the trust company would Join the New
York Life never materialized Mr.. Ran
dolph would not say who these persons we're
He gave 1t a. his opinion that the New \ ork
Security and Trust Company we're mana.
gers OF the New Orleans syndicate. but
he could not say for certain. -,
The witness aid that when the two hold
ines were taken in by the New York Life
both were entered at first IN the bond ac-
count. ..o a,,,o.
committees meetings, Mr.. Randolph found
a resolution passed May IL, 1907, autnorz-
ing the chairman Of the committee to ac-
oept In his discretion, q 900 900 or y 600 go
Of the New Orleans Railway bonds. Inc
Testified. did not at that early date accep:
any of the bonds. He could not tell the
reason why. AS to the other persons who
were to have joined with the New YORK
Life In the investment Mr. Randoiph, IN
response to further questions. said that ne
must decline to answer. He considered
the information confidential, he said, be-
cause their participation never materialized'
THE SAD UNLOADING.
Inc w1tne0S testlnoo tha. .no IVY
Life started In to dispose Of its holdings In
the New Orleans company In November.
1904. or the bonds 81 $50 900 were sold at
rs: 800 900 at 1910 and $4,000 at 8O.27:
On the 81 $50 900 sale the company agreed
with the purchaser to protect him against
loss IN consideration n OF at.s Giy,s'oh 'i '"e
Mr.. Randolph said the company was to
get four-flfths OF the beyond profits
asccruing in the future. The company.
he testified, received check for &4, $50 9S
on this account; At the END OF isVa .ne
ton. After it was removed from the bond
account it was carried on the company 8
books In the temporary loan account. lhe
net loss on the whole tranaAction, the wit,
mess said. was $4,000, which was charged
to the psn prG an and tSs Sss .vndeate partcpa
ton the purchaser Of the obligation was
protected against any loss by the New
Mr.. Randolph said he wasn't sure q re-
esiysr had been h ner f01 there
was a reor ganization. Mr.. Hughes wanted
to know whether this reorganization was
under contemplation when the New York
Life relieved the trust company OF It's hold
ings; go, =. al. rsn,isd tho v,tne.s we
had the most glowing assurances. We had
the president Of the road brought on here
to assist VA and gentlemen OF standing
and importance in that community, and
they gave us every assurance OF the great
value Of the road"
COMMITTEES WANTED NAMES.
When the witness finished testifying in
regard to the New York Lies transactions
in New Orleans Railway holdings. it was
long past the hour for adiourning, but
Assemblyman James T. Rogers, who had
taken the chair in place OF Senator Arm
strong, said that several members Of the
committee we're not satisfied with the reason
which the witness had assigned for not
mittee in regard to the persons who m
the New York Life expected to participate
with II in taking the trust company's hold
inss,; p.,do,nb replied again that he fel,
this was oondsntiai matter bsars ana .bo od no.
mittee. Tho New York Life, he said. was
not desirous Of taking hold OF the New
Orleans securities and the syndicate partict-
patton, but they did so.' There was nc
intln,Ation Of bad faith against those who
failed to como in.
sThey simply preferred said Mr.. Ran.
dolph, that We should have 1t all
Acting Chairman Rogers wanted to know
II there wasn't some legal or moral founda
ton for the understanding that others were
to come In Mr. Aandolph said 3.ta there ner~ns wa
ONLY Lu0 0xp0Ct6tAOn N'ot
people who are talking together about
doing something. Morally there was pe
| obli9ation-only an expectation on the
part of the New York Life. The witness
admitted that because the expectation wat
not we'll founded In fact the funds OF TIC
| company were taken up to larger exeen,
| than would have been the case In the hrs'
| instance.
The parties, Mr. Randolph thought, con
| sidered that the New York Life had MADE
q large sum Of money out Of its interest II
the trust company stock and that the ire
insurance company ought to take up tht
sFor nv part" said Acting Chairman
Rogers, II want to say that am not salts
| fied with your answer, especially IN view
| Of the decltred purpose Of the New fort
Life Insurance Company, expressed IN
various documents and letters which have
| been sent out, that 1t was prepared to make
| and would make before this committee tnt
| fullest disclosures OF its Affairs.
Mr.. Randolph said that wouldbe glae
| to tell in confidence any member OF the com
nittee who the persons were who were tt
have Joined in the deal.
AS no POOLING THE STATE EXAMINERS.
Assemblynan Rogers then turned to the
matter OF The sale Of International Naviga
tion syndicate bonds by the New Yori
Life on the day before its annual report wal
due and said:
Il want to ask whether 1t Is . common
praotiae for your company to sell securities