The daily morning journal and courier., 1905-11-28
BANK GOT S7OO.OOO
 IN UNTAXABLE STOCK
ANOTHER REMARKABLE REVE- LAYTON IN THEINSURAN0E
 INYEsTIGATIoN


 Amount Taken from Vaults of New
 York Life Insurance Company and
 Check for Same Deposited In Its Stead by Central National BanI--
 Bank in This way Avoided Payment
 of Tax.
 New York, Nov. 27.-one of the most interesting features of the life insur- ance investigation developed a few minutes before adjournment of the Armstrong committee to-day when Theodore F. Banta, acshier of the New York Life Insurance company, testified that about the beginning of 1901 Ed- mund D. Randolph, treasurer of the company, opened the valuts of the company and removed New York city stock valued at $7O0,00O and put a check of the Central National bank for s70O,- 900 in its place. MT. Banta said he helped to open the vaults at the order of MT. Randolph and that he supposed Mir. Randolph acted for the finance committee. The stock was kept out for a few days and was then returned and the check withdrawn. The trans- action was not recorded on the books of the company so far as MT. Banta knew. The effect of the operation would be that any one having that stock would have $700000 worth of l1n- taxable property at the end of the year. MT. Banta did not know who received the stock. Mr. Randolph is expected to be one of the witnesses tomorrow.
 George w. Perkins, vice president Of the New York Life Insurance com pany and member of the firm of J F. Morgan & Co.,, bankers, to-day descrih- ed to the committee the transaction which resulted in his receipt of $40,19S from Kidder, Peabody 6 Co.,, of Boston, as half of the profits of the sale of s2,- 000,000 worth of bonds of Michigan Central railroad.
 Milton M. Madison, a bookkeeper of the New York Life Insurance company, has previously testified that $930, GOO of the life insurance company's money was used in the transaction and that MT. Perkins got the profit. MT. Per- kins said to-day that he went into the transaction for the Nylic fund, which is owned by the agents of the New York Life Insurance company, and that he invested the profits for that fund. The life insurance company, lie said, profited to the extent of 5 per cent. on the loan of $93O,0O0 He stated that the company had no right to the $40. .195 profits.
 MT. Perkins said also that J. F. Nor gan & Co. had taken up notes of An drew Hamilton and Fl. E Mccall, for- merly justice of. the New York state supreme court, amounting to $56,S1Q, at the request of President John "A. Me- Call, of the New York Life Insurance company, and that the amount, with interest, was paid to Andrew Hamilton by the New York Life Insurance com pany from the proceeds of a syndicate in United States Steel corporation stock.
 President John A. Mccall told the committee to-day that he had told the Central National bank and E. E. Me- | Call that Hamilton was good for S50,000, and that they had then taken Haulil- tons notes. President Mccall said the New York Life Insurance company owed Hamilton the Sb6, BIO and took the syndicate profits to pay him. The re- suit was that the payment did not ap- pear on the books of the company. The reason was that he wanted to keep Hamilton's $ expenses down.
 Much evidence was given both by MT. Perkins and President Mccall about the New York Security and Trust compa- ny's participation in the United States Steel corporation syndicate to the ex- tent of $3,25O,Oo0, having the deposits of the New York Life Insurance company for about that amount The New York Life Insurance company got 75 per cent. of the profits, and MT. Perkins contend- ed that it was a safe and profitable venture. President Mccall said the life insurance company should have partic- ipated directly instead of indirectly