Omaha daily bee., 1905-11-29
PREMIUM STATED ON FIRST PAGE
On Second Holder iS Required to Pay Any
Amount company Calls For.
GEORGE H. soUlRES DEPOSITION READ
Equitable officials Buy Stock from Society
ALTA andl it Back at 80
RANDOLPH TELLS OF BORROWING STOCK
says tie Thinks Bank Wanted Non.
Taxable Securities for the Use
OF some of Its Gus
toners.

NEW YORK, Nov. S-Just before the
insurance investigating committee ad-
journed today Charles f. Hughes, counsel
, for the committee, produced a policy writ
ten by the Mutual Reserve Life Insurance
company upon the life of a man whose
name was not given. which policy stipulated
on the first page that the insured should
pay a fixed ana stated premium Subject
70 other benefits and requirements else
where stated.
On page two Of the poiicy Mr.. Hughes
read a clause that the executive committee
Of the company could require tho holder OF
the policy TO pay any multiple of the
amount of the premium stated on the FIRST
page which the committee saw ht. George
Eldrege. vice president and secretary of
the company, to whom Mr. Hughes read the
policy, said that the number Of such policies
issued was small
Randolph TeIIs of stock Deal.
Previously Edmund D. Randolph, treas
urer of the New York Life Insurance COM
pany, had said that it was true that he
removed 100000 worth of New York City
stock from the vaults Of the company and
put a check of the Central National bank
tor that amount In the place of it on
January s, 1901. Mr.. Randolph understood
that the bank wanted the stock for clients
one OF which was the Merchants Trust COM
pany He promised TO give the committee
later the names of any officers of the New
York Life company then in the Merchants
Trust company.
Squire's Deposition Read.
The deposition of George II. Squire, for
merly financial manager of the Equitable
Life Assurance society in which he de-
scribed some Of the operations of the syn
dicates which included officers of that
society. was read to the committee. Mr.
Squire said in it in 1901 the Equitable
society bought 1900 shares of the stock of
the Lawyers Title Insurance company
and resold 1900 shares TO several of it's
officers and directors at the purchase price,
IA. Some of the Equitable men sold their
stock later, said Mr.. Squire, and subse-
quently large blocks OF the stock were sold
back ia the EQUITABLE society at $40 to
s'g5U- by the firm of Williamson & Squire
That Arm might have bought it from the
officers OF the Equitable society, Mr..
Squire said, but he did not know. Mr..
Hughes also brought out that a profit Of
500 900 had been paid to Mr.. Squire from
the sales of stock of the Lawyers Mort
gage company to the Equitable society and
that Mr. Squire had divided profits from
an unknown Operation, aggregating slSSeo
among four officers of the Equitable So
ciety-James W. Alexander, James II.
Hyde, Thomas d. Jordan and w. II. Nc
Intyre.
Another Payment to Hamilton.
The fact that the New York Security and
Trust company paid $4,000 to Andrew
Hamilton. the legislative agent, out Of
moneys belonging TO the New York Life
Insurance company was also brought out
today by Mr. Hughes.
w. II. Fanshawe. dealer in investment
securities told the committee that in 1904
he bought New Orleans Traction bonds
Of a face value OF 81. 10000 from the New
York Life Insurance company and George
w. Perkins. trustee of the Nylic fund
giving them his checks amounting to
ses7. 800 IN payment. and then borrowed the
1881. 500 from the New York Life company
using the bonds as collateral He then sold
the bonds. giving the New York Life COM
pany IS per cent OF the proceeds and keep
ing per cent.
VIII Collect Taxes.
Frank A, O'Donnell, president of the
Board Of Taxes and Assessments today
took steps 10 collect S28,5OO from either the
New York Life Insurance company or tho
central National bank as taxes and inter-
est on the 100000 transferred 20 avoid tho
pay mcnt according to testimony before the
Insurance committee last Monday MY.
oDonnen said he had referred the matter
90 Corporation Attorney Delaney, with In
structions to bring suit for $3.50. together
with interest for seven years, and had laid
the matter before Comptroller Grout as
he is charged with the responsibility for
the collection OF ali arrears Of taxes
Rebate Case I'm philadelphia.
PHILADELPHIA, Nov. 2S.--Charged with
unlawful discrimination IN favor of Ben
jamin c. Warwick Of this city, in connec-
ton with the Issuance Of a life insurance
policy for 500 900 Harold PIERCE, the gen
eral agent in Philadelphia for the New
York Life Insurance company. was given
\ hearing before Magistrate Te-uar today
and held In s. 5O0 bah for his appearance
IN court Peirce, II is charged. caused to he
issued a policy on the life of Warwick for
which the latter did not have TO pay the first
years premium. which amounted 10 S2.5O5
The principal witness In the case is War.
nick He said man named T.. A. Reilly
came to him and told him that he could get
Warwick 10000 policy in the New York
Life Insurance company through Pearce
without Warwick having 20 pay cent OF the
hrst years premium. Reilly explained
Warwick said that by obtaining this policy
PeiTcs would be able TO set a special bonus
from the company and thus get more com
missions than he could otherwise obtain
To this Warwick assented making the
proviso that Il must be regular and within
the law as he would not accept IL other,
wise AbouI month or two later the
receipted policy was delivered to him with.
out his paying any premium thereon. War.
nick said hc subsequently decided that the
transaction was not regular, and requested
the company 20 take back the policy III
informed his attorney about the matter
and added that he knew nothing OF this
prosecution until ne was summoned TO an
rear in the case.
Agent PIERCE declined 90 discuss tho cas-,
after ,he hearing Tic said that hs would
lsr complete answer 90 the charges a
%. propef time.
The prosecution was brought ungcl ,
state law Jo prevent discrimination an,
fCOntiuuud uu Second P4ge.J