New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-13

Erie stock bonus it was never entered in
any stock book or ledger
Mr. Hughes then cited another instance of
| non-ledger assets. in the case of five thousand
shares of Union Pacific.
Did the Union Pacific appear in the books of
the New-York Life prior to December. 1so1?r he
asked.
mo. 1t did not at any time"
So that when you took occasion in December
1901 to close out stock accounts you took no
similar step with Union Pacific. for it did not
appear?"
Yes, it was not an asset"
In other words. 1t not carried on the
ledger. In the mean time you owned it?"
I'VE owned it,
Mr.. Hughes then developed the fact that when
this stock was sold it was charged to profit and
loss. and in this fashion ultimately reached the
ledger.
DIFFERENCES IN BONUSES.
He then went into the question of bonuses re-
eeived by the company for syndicate operations,
the terms and methods employed and other de-
ralis' and the return the company received, en-
phasizins the idea that the stock bonus was a
part of the net earnings of the affair.
What you get in stock is just as much part
Of your syndicate obligations what you get In
bonds, isn't it?"
Yes. SURPRISES"
why do you call your stocks bonus rather
than your bonds?'
TITS SURPRISES"
And for some reason. in dealing with your
books. you separate the stocks and bonds enter
the bonds the books and call the stock sur
plus?"
'T don't think there is any significance in
that"
But the bonds are on the ledger and are
ledger assets. and the stocks are not on the
ledger and are non-ledger assets?"
yes"
why is this?"
Because the bonds are fully representative of
the amounts embarked in them"
Are they aIways?"
"I don't recall a case now In the winding I'D
OF syndicate where we have received bonds
that they were not fully representative Of the
price at which we could reasonably expect to
receive them
true?"
Certainly; there is nothing sure in syndi-
Gates"
After wrestling with the system Of putting down
the bonds and carrying the stocks for a few
minutes longer. Mr.. Hughes took up the sheet
showing the total of syndicate transactions of
the New-York Life, which showed a net profit
of 81. 399.69 %
you add in the footnote" commented Mr.
Hughes. quoting THE company has never
been in a syndicate that has made a loss''
''There is syndicate that has never been
closed up with loss. didn't put that state
uent there. however"
Mr.. Hughes then proceeded to take I'D a sam
pie syndicate participation. that in the Toronto
Hamilton and Buffalo. The company bought
7Hc TO- Joa
amounting to s796250. and then sold back to
the syndicate until the company's holding was
reduced to 100000 par value. Mr. Hughes
inquired why the company should have sold it's
holdings July % at 90, and then
promptly bought them back within five days
the purchase entry showing the words through
the Paris Office" Mr.. Randolph failed to recall
the transaction and adjournment was taken at
this point. In passing. however. Mr.. Randolph
denied that there had been a sale to make
market
When the examination was renewed Mr.. Ran
doph supplied the missing information Before
his testifying. however, Colonel Augustus G.
Pain president of the New-York and Pennsyl-
vania Company. took the stand for a few min
utes and testified to participation in two syndi-
Gates. He was excused to obtain data from his
account books on the matter, and Mr.. Randolph
was recalled
Mr.. Randolph explained at once that the To-
ronto bonds had not been sold at all. but merely
transferred through system OF cross-entry, and
that they had never been outside the possession
of the company.
'TBut why the price 99?' Queried Mr. Hughes.
'FWhy did you change it from 81. the syndicate
price, when you put it in the investment ac-
Mr.. Randolph admitted his inability to
answer this and promised to have the official of
the company familiar with this transaction
ready to appear this morning.
LOSS IN STEEL BONDS
Mr.. Hughes then plunged into the purchases
of United States Steel bonds by the New-York
Life He read list showing the payment of
50, 11S,92616 for United States Steel bonds in
January, 1902. and then the realization on the
same bonds on December 80. Mr.. Hughes then
asked:
Were they closed out in the same manner as
the stocks previously referred to as closed out
In December, 1901?' he asked. That Is, there
was sale in form, but in fact they were left
with the New-York Security and Trust Com
pany as collateral for notes issued by your en-
ployes?"
Exactly"
And there liability on the other side
of your books against that amount?'
mo. They were closed out accounts"
And in your reports to the Superintendent of |
Insurance at the end OF 1902 you reported tho |
cash you had hand, including the amount to
your credit with the New-york Security and
Trust Company. as free cash?'
'eWen. as cash"
What the loss sustained in this opera
ton"
1882. 3O3 IL"
And how did you book the loss?"