Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-11-28
CHECK FOR STOCK.
Case Of Substitution in
New York Life Affairs
Disclosed During Insurance In.
ysstigation in New York.
No Account Of Transaction on Books--.Many
Other Discrepancies Shown.

New York, Nov. 21.-One of the
most Interesting features of the life
INSURANCE. Investigation DEVELOPED a
few minutes before adjournment of the
Armstrong committee, today. when
Theodore y. BaIta, cashier of the New
York Life Insurance Co, testified that
about the beginning of 1901. Edmund
II. Randolph, treasurer of the COM
pany, opened the vaults of the COM
pany, removed New York CITY stock
valued at 100000. and put a check
OF the Central National Bank for $780,
900 in It's pace. Mr.. Banta said he
helped TO open the vaults at the order
OF Nj. Randolph and that he supposed
LII. Randolph acted for the finance
cOnnlttee The stock was kept our
for & few days and was then returned
and the check withdrawn The trans
action was not recorded on the books
OF the company so tar as Mr.. Banta
knew. The effect OF the operation
would be that anyone having that
stock would have 100000 worth of
untaNahle property at he end of the
year. Mr.. Banta did not know who
received the stock. Mr.. Randolph is
expected to be one of the witnesses,
tomorrow.
George ". Perkins. vice president
OF the New York Life. and member
OF the firm Of j. +. Morgan & Co.
bankers, today, described to the COM
inittee the transaction which resulted
In his receipt of $40l93 from Kidder,
Peabody & Co. of Boston, as half the
profits of the sale of 100000 worth
of bonds of the Mexican Central Rail-
road Co. Milton NJ. Mattison, a book
ket per of the New York Life. had pre-
viously testified that $4,000 of the
life insurance company's money was
used in the transaction and that Mr.
Perkins got the profit. Mr.. Perkins
said, today. that he went into the
transaction for the Nylic fund which
is owned by the agents of the New
York Life, and that he invested the
profits for that fund. The life insur-
ance company, he said, profited to the
extent of per cent. interest on the
loan of $4,000. He stated that the
company had no right to the $40,193
profits. 1---'
Mr.. Perkins said Also that ]. P.
Morgan & Co. had taken up notes of
Andrew Hamilton and f. e. Mccall,
formerly justice of the New York state
supreme court amounting to S56,310.
at the request of President John A.
Mccall, of the New York Life, and that
the amount With interest was paid to-
Andrew Hamil o,i7 by the New York
Life from the proceeds Of a syndicate
in the United States Steel Corporation
stock ..'', ..'s
President John A. Mccall told the
committee, today, that he had told the
Central National Bank and F.. f. Nc
Call that Hamilton was good fer $50
900 and that they had then Mr.. Eami-
tons notes. President Mccall said the
New York Life owed Hamilton the
$56,310. and took the syndicate profits
to pay him. The result was that the
payment did not appear on the books
OF the company The reason was that
he wanted to keep Hamilton's eXpens-
es down.
Much evidence was given both by
MI Perkins and President Mccall
aboI: the New York Security & Trust
States Steel Corporation syndicate to
the extent Of s3,250,06D having the
deposits Of the New York Life for
about that amount The New York
Life got - per cent. of the profits and
Nj. Perkins Contcnded that it was a
safe ana profitable venture. President
Mccall said the life insurance COM
pany should have participated directly
instead Of Indirectly.