The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-09-15

Loss Accnunt-Ssndicate to Handle
New Orleans Railroad Securities.
New York, September 12.-Selling
100000 in bonds one day, and buying
them back the next save one, a holi-
day intervening in order to keep with
in statements made in the New York
Life Insurance Company's report TO
the superintendent of insurance, was
the sensational disclosure made
today at the session of the ex-
ecutive committee. The fact was
drawn from Edmund d. Randolph,
treasurer of the New York Life Insur-
ance Company, late in the day, after
Attorney Charles +. Hughes, of c0un-
sci to the committee, had labored for
over an hour to get a direct answer
from Nh. Randolph to a direct ques-
ton.
The inquiry had dragged through a
mass of figures during the entire day,
but It was not until neal the hour for
pending the session that the sensational
feature was brought out.
Earlier in the day Mr.. Randolph had
handed Mr.. Hughes Il schedule Of syn
dictate undertakings and transactions
of the New York Life after the last ten
years. The statement was to show,
and Il foot note to the schedule so stat
ed, that the company had participated
in no syndicate transactions hat had
been closed out with a loss. Among
those syndicate transactions was the
underwriting of the navigation syndi-
cate or International Mercantile Ma
rine.
Mr.. Hughes drew from the witness
that there was an aggregate of $4,000
600 the New York Life paid J. z Nor
gan and company, on this Joint ac-
count Mr.. Hughes then took up a
sales item dated December 81, 1903, OF
$4,000 of International Mercantile
Mercantile Marine stock. Mr.. Ran
dolph, replying to Mr.. Hughes, said
this sale was made to j. p. Morgan
and company. Mr.. Hughes continued
his inquiry into the matter and asked:
"On January =, 1904 there is an en-
LS VI IL puIAhdoC VI pooOJOcO.
whom did you buyT'
u. Z. Morgan and company"
why did you sell to J. P. Morgan,
then buy from J. P. Morgan and com
pany on the next business day."
Because they desired to reduce it.
Yes, but why, then, did you buy it
back the next business day"
Here Mr.. Randolph began to explain
and wandered several times from the
subject. He was led back by the law
yer, who seemingly was unable to get
q reply. Finally he asked:
Who sold the shares for the New
York Life?"
Mr.. Perkins,
WHO bought them again?"
An officer of the company
who was it?'
Mr.. Perkins"
LAS a matter of fact there was q re-
port to the superintendent of insur-
ance on December 81, 1902
Yes"
Then the sole purpose of the trans
action was that you might be able to
tell the superintendent of insurance
you held only So, 700 Of I~nternatiOn-
al Mercantile Marine sharess"
The witness hesitated. and tried to
evade a direct answer, but Mr.. Hughes
repeated the question until finally Mr..
Randolph said Yes"
There was Il mOmentary hush, fol-
lowed by a murmur of suppressed eX-
element.
Following up the navigation synd1-
cate transactions, Mr.. Hughes referred
to an item on the schedule of syndicate
transactions under date of December
80, 1904. by which $4,000 of bonds
were sold to J.. o. Morgan and company
of London for $4,000. Mr.. Randolph
admitted that this was an outright
sale, and the loss Of $4,000 was charg-
ed off to the profit and loss account.
Mr.. Hughes left the point and took
up an association known as "Nylic,'
with the New York Life Insurance
in October.
The trustees of the New York Secu-
rity and Trust Company held $3.50
shares that is Il majority of the 10000
shares?'
Yes"
well in March 1904 when the total
stock of the company was increased to
10000 shares. were the holdings of the
trustees increaSed?'
No
Witness was then led through the
change of the name of the trust COM
pany and admitted that three accounts
? with the old company were closed and
four opened with the new. When the
money was withdrawn from the New
York Security and Trust Company it
was deposited with the First National
lBBank. This admission was elected
from the witness after much pressure
In reply as to the interest paid by