Perth Amboy evening news., 1905-11-28
NO RECORD
WAS TAKEN.
of New York Life Tells
Of Big Check Deal Per-
kinS' Testimony.

NEW YORK, Nov. 2S.-One of the
most interesting features of he life
insurance investigation developed at
the session of the Armstrong commit
tee when Theodore f. Banta, cashier
of the New York Life Insurance COM
pany, testified that about the begin
ming of 1901 Edmund ID. Randolph,
treasurer of the company, opened the
vaults of the company, removed New
York city stock valued at $IO0,0OO ana
put a check of the Central National
bank for 100000 in its place. Mr..
Banta said he helped TO open the vaults
at the order of Mr.. Randolph and that
he supposed Mr.. Randolph acted for
the finance committee. The stock was
kept out for a few days and was then
returned and the check withdrawn.
The transaction was not recorded on
the books of the company so far as
Mr.. Banta knew. The effect of the
operation would be that any one hay
ing that stock would have 100000
of the year. Mr.. Banta did not know
who received the stock. Mr.. Randolph
is expected to be called to the stand
shortly.
George w. Perkins, vice president Of
the New York Life Insurance company
and member of the firm of ]. z. Morgan
g. Co., bankers, described to the COM
mittee the transaction which resulted
in his receipt of $40, 1913 from Kidder,
Peabody & Co. of Boston as half the
profits of the sale of 100000 worth
of bonds of the Mexican Central Rail-
road company. Milton NJ. Mattison,
a bookkeeper of the New York Life
Insurance company, had previously
testified that $3.50. 900 of the life insur-
ance company's money was used in the
transaction and that Mr.. Perkins got
the profit. Mr.. Perkins said that he
went into the transaction for the Nylic
fund, which is owned by the agents of
the New York Life Insurance COM
pany, and that he invested the profits
for that fund. The life insurance com
pany, he said, profited to the extent of
5 per cent interest on the loan of $780,
900. He stated that the company had
no right to the $40, 1913 profits.
Mr.. Perkins said also that ]. p. Nor
gan & Co. had taken up notes of An
drew Hamilton and Il. Il. Mccall, for
merly justice of the New York state
supreme court, amounting to $56,310
at the request of President John A.
Mccall of the New York Life Insur-
ance company, and that the amount
with interest was paid to Andrew
Hamilton by the New York Life In
surance company from the proceeds of
Il syndicate in United States Steel cor
poration stock.
President John A. Mccall told the
committee that he had told the Central
National bank and Il. e. Mccall that
Hamilton was good for $4,000 and
that they had then taken Hamilton's
notes. President Mccall said the New
York Life Insurance company owed
Hamilton the $56,310 and took the syn
dictate profits to pay him. The result
was that the payment did not appear
on the books of the company. The rea-
son was that he wanted to keep Ham
ilton's expenses down.
Both Mccall and Perkins made such
astounding confessions in relation to
the Juggling of the funds of the policy
holders of the New York Life and di-
version of thousands of dollars for pc.
litical and legislative purposes that aft
er the session ended the opinion was
expressed freely hat nothing remained
now for them to do except to retire
from the company.