The sun., 1905-09-14
transaction a. the Investment was con-
sidered problemstical.

TRANSACTION ~ tn0 tnvoStmoot was coh-
sidered problemstical.
NEW YORK LIrE's JOINT ACCOUNTS.
Frederick H. shipman, assistant treasurer
Randolph, treasurer, told the committee
at the morning session about the JOINT
accounts which the New York Life had car
ried, Mr.. Shipman first explained the New
York Lifes relations 70 the IorIo,nto: hsm- Mr
Sa snS Sas ss ssrnsy ny about
that on Tuesday but. had not been able to
get the information he wanted.
Mr. Shpman said the New York Life had
participated In the syndicate to the extent
Of 9S76 900 par value, for which y had r atd
back to the bankers ISIS 600. retaining a
$780, interest. According, 70 the entry
on the company's books 1t sold these bonds
at 90 and few days later boug ght them
back at the same prce. The bonds had
had COST the company o..
The explanation was that the bonds were
transferred from the syndicate account
to the Investment account, and their value
estimated at the market price, which was
then %. Mr.. Hughes called attention 70 the
fact that the company hadn't made the
profit OF ?4!,eso which was entered On the
profit and loss account, but the witness
said the bonds were worth the price at which
they were quoted.
PUT UP ALL THE MONEY.
Mr.. Hughes then took up the Joint &C.
count transaction which the New York Life
had with Goldman, Sachs 4 Co. In Chicago
and Alton bonds. The New York Life
purchased the entire Issue OF the bonds, Sl0-
900 900 worth, Jointly. with Goldman, Sachs
d Co. and that firms associates, but the
New York Life put up all the money. assun-
ing tho risk OF q depI eciation in the value
of the bonds, and finally divided the profits
with Goldman, Sachs A.Co. when the bonds
were disposed Of. Goldman. Sachs 4 Co.
paid inter est on the money which the insur-
anoe company advanced
Mr.. Hughes inquiI ed as to loan on
account" of $500 900 which appeared on the
books and the witness said that had been put
up by Goldman. Sachs 4 Co. as q margin
fall of. Mr.. Hughes wanted to. know
whether the New York Life hadn't really
assumed the responsibility OF investing
100000 in Chicago and Alton for Goldman,
Sachs l. Co. The witness said that when the
New York Life enter ed into the transaction
able to derive q decided benefit from it's
relations with the bankers; that Goldman,
Sachs d Co. could act as the sellers OF the
bonds and could probably accomplish the
Mr.. Hughes called the witnesses attention
TO another joint account between the New
York Life and Goldman. Sachs 4 Co. In Chi
cago nd Northwest securities. He said that
he didn't believe the New York Life bought
these bonds on joint account with the
bankers. hut that it inferred into . joint
account for the selling Of them.
Mr.. Hughes said that the New York
Life records showed that on July ls, 1899,
$3.50, 900 Of the bonds had been bought by
the company from the syndicate and sold
back on the same day at the same price.
@. Can you explain that? A. The only
sspsn u band. nai Rs ~ sts ae
s Se!s chsrsed o9 81 tss Sas book: and transferred
@. But what is the entry which says the
company. bourht $3.50 600 from the syndicate?
A. That can 7 explain.
The natural import. said Mr.. .Huvhes, was
that the New York Life bought the bonds
at certain figure and sold the bonds at
the same figure on the same day. Mr..
Hughes wanted to know II It was fair to
assume that the New York Life furnished
the money In several joint account transac-
tions. other parties takine half the profits
and the witness replied that 1t was fair to
make the assumption.
Q. Does. it mean that the New York Life
.rs r to make the -alesY A. Not always; that
Ns 9. Why ' Wss i necessary for the New York
were able to furnish the facilities for selling
instances.
Mr. Hughes asked the witness elso rhout
y Joint agreement which the New York
Life had with W. 8. F. nshaw in Chicr 60,
Burlington and Quincy bonds, $3.50 1000 pr
W l,ie. Mr.. Hughes WI nted to know II
this wasn't for the purpcse Of re-. lizing
a profit on the ress le OF the securities end
not as an investment, md the witness sr i'd
he thought 50. Mr. Fs nshr ". the witness
sid, is a member Of the firm Of Harvey
Fisk 4 O., but was an indenende1t broker
up to january Last. Mr.. Hughes wanted
70 know il the witness could tell what
Mr. Ft rsh- VS. rels ticns to j. p. Morgan
4 @. b" d been, hut the assistant treasurer
rerlied he couldn't.
Treasurer Randolph testified that 40 fer
as he rec'l lied all OF the New York's. Lfe's
tre nss ctiops on joint sccount had been
in bonds, never in stocks. Mr.. Rrndolrh
sid emphstically that he had never po rti-
cipated in any eyndicate in which the New
York Life had been interested, nor In any
other.
The hearing will be resumed this morning.