The sun., 1905-09-13

NoyAL BAKING POWDER co., NEW YORK
Disgusting for moment what the purpose
Of this sale was, that the purpose was to
avoid altering on our books an asset which
we declared In good faith and believed to
be Ss 200 900. We had stated that in q
variety Of ways and for the purpose OF max,
ing that statement we determined to sell
the securities. 1t was done rev With the idea
that the New York Life would buy the
bonds back at the first of the Year if they
were not sold ~
The whole result, as and my associates
~ ther it," said Acting Chairman Rogers.
lis that the transaction. of December 81
and the repurcbase on January resulted
in sho wing Your annual report at the close
OF the year with $500 900 more actual cash
aseets than really, by strict interpre--
.Real cash, it was,' replied the witness. ..
TO be there a,couple of days'" added
1T was real cash." was the witness's
final reply. A.,
1t was broug ght out in the course oi the
actually dispose OF these $500 600 of Inter-
national Navigation bonds until December30.
! 1904. Then they were sold to j. s. Nor
| gan 4 Co. Of London for $72O 600, and the
! loss OF $50 900 was charged to the proiit
| the company furnished to the investigating
committee in regard to its syndicate opera,
tions II was set forth that the company had
not sustained loss In any syndicate trans
action that had been completely closed.
The witness said the loss OF $50 900 was
extended on the syndicate agreement
and the syndicate transactions had not
been closed.
"HYL1c."
Counsel to the investigating committee
ca lied Mr.. Randclph's attention to an entry
The he. OSSss Ssv 'Sernf Sort fe o sa Se M
Randolph admitted this was a reguar r
beneficial organization independent 4, al
together from the New York Life. The
name, he said, was composed OF the initial
letters OF the name of the New YORK Life
company. Mr. Randolph eaid that George
W. Perkins was a trustee in -Nylic.
The witness could not, he said give any,
definite information regarding NNyuc' ana
told Mr.. Hughes that he would have
to oall upon the men who we're Interested
in It. .,..o.
Counsel for the investigating committee
brought out the fact that several Of the
stooks which Mr.. Randcl loh called on Friday
-non-ledger stock were recorded on
cards in the financial Office In the Hanover
sale of these stocks were entered IN the
profit and loss account.
Mr.. Hughes questioned the witness in in
regard to the New York Life's purchase
OF SIC, 900 900 of Chicago and Alton bonds
in 1899 at 90. Later the company sold $500, :
| 600 OF the bonds at the priceit had paid for
them. These were sold, it was said, to
| Goldman 4 Sachs and associates, who were
+, interested with the New York Life in ac-
curing the SO, 900 worth Of the bonds
on Joint account. The New York Life.
1t was shown, practically put up the money
| The insurance company was to hold the
bonds until they were put on savings
bank basis and then $500 900 Of them would
be taken OF the company's hands, The
bonds never reached the savings bank basis
They are worth now about IS.
| DUMMY LOANS ALL RIGHT.
| Mr.. Randolph a. thu morning ses.
sion, asked permission to say e word
about his testimony at last Fridays
hearing. This testimony, he said, had
been perverted, he had been maligned, and
many Of the things which which he hs had psnted sp@ktedd
il understood that the finance committee
| had given its thorough and cordial ap-
proval to everything that had been done
and that he was in no sense personally
responsible FOL. any OF, the transactions
He said that other members Of the finance
committee besides himself regarded. the
practise of giving dummy loans as univer-
sal and believed there was nothing wrong
in il. The idea. no said. was that the loans
were made on values. not on names.
| Of George Marshall had been brough into
man. and his color, Mr.. Randolph said
was nothing against him. Mr.. Randolph
said further that he had nothing to eX::
plain. nothing to defend. and that he stood
| IL, hoI dnna
| approval Of his own conscience but also
With the full accord cf his associates.
He called attention to the fact that the
members OF the finance committee had
as the profits to the policyholders in the
motives in the matter. They did, he said
as individuals would have been done under
| the same circumstances, and that. he de-
| clared, was the highest possible test. He
| requested that counsel for the COMMITTEES
In questioning him should allow him to
minutes OF the finance committee.
Mr. Hughes assured the witness that
| there had been no. misrepresentation on the
| part of any Of the committee that Mr. Ran
dolph was personally responsible for the
transactions.
| him with the records as found In the minutes
81 the finance committee meetings In re
gard to the sale Of 81 ,b3S 900 par value OF
| the Chicago, Milwaukee and st. Paul pre-
ierred stock. This was one Of the blocki
Of stocks transferred by the New York
Life to the New York Security and Trust
Company in order to conceal its ownership
Of the stocks in It's annual schedule of assets
Mr.. Randolph showed from the minutes
that what he called the pro formd sale oi
the stock to the Trust company had peen
authorized by the committee.
He said that tho disposal OF the New
York Life's holdings in the New. York
Security and Trust Company had been
left largely TO the discretion Of George w
Perkins. In Mr.. Randolph'e opinion, Mr.
Perkins had accomplished the sale Of the
stock In q mastsrly fashion. Mr.. Randolph
said that there was no resolution on the
minutes of the finance committee's meetings
relative to the notes given by the New Yorl
iIfe's employees for the making Of tht
collateral loans from the New York Security
and Trust Company.
.The entry made in the books OF the New
York Life Company in regard to the Chicago
Milwaukee and st. Paul stock showed that
that stock had been sold. did 1t not?' askec
counsel for the committee.
sIt showed that the stock had been closed
out" said Mr.. Randolph.
COMMITTEE las NO KICK.