The Montgomery advertiser., 1905-11-28
'$7OO,OOO OF CITY STOCK Take From New York
 Life's Vaults. CHECK PUT IN PLACE
Object Evidently Was to Keep
 Off Tax Assessor.
George W. Perkins wit.ess Before Armstrong; Committee and is Closely Questioned Regard
 ing Syndicate Operations.

New York, Nov. 27.--One of the most interesting features of the investiga- ton of the life insurance cases devel- oped only a few minutes before the ad- journment of the Armstrong Commit tee when Theodore Banta. cashier or the New York Life Insurance Company. testified that at about the beginning or 1901 Edmund D. Randolph, treasurer of the company, opened the vaults of the company, removed New York city stock valued at $700,06o and put a check of the Central National Bank for s700.000 in it's place Mir. Banta said he helped to open the vaults at the order of Mir Randolph and that he sup posed Mir. 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 The stock was kept out for a few days and was then returned and the check withdrawn.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 Banta knew. The effect of the operation would be that any one having that stock would have $700,o00 worth of untaxabie property at the end of the year. MT. Banta did not know who received the stock.
 Perkins a Witness.
 George W. Perkins, vice-president of the New York Life Insurance Company and member of the firm of J. P. Nor gan & Co, today described to the com mittee the transaction which resulted in his receipt of $40.193 from Kidder. Pea body & Go. of Boston as half of the profits of the sale of $2,00o.000 worth of bonds of the Mexican Central Rail- road Company. Milton M. Mattison. 8 bookkeeper of thes New York Life In- surance Company had previously testi- fled that s930,000 of the life insurance company's money was used in the transactions and that Mir 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 Insurance Company and that he invested the profits for that fund The life insurance company. he said, profited to the extent Of 5 per cent interest on the loan of $330,000. He stated that the company had no right to the sf0.tss profits.
 Took Up Hasnilton's Notes.
 MT. Perkins said also that J. P. Mor- gan & Co. had taken up notes of An drew Hamilton and E. E. Mccall, form er1y Justice of the New York State Su- preme Court, amounting to $59,31O at the request of President John A. Mccall of the New York Life Insurance Com- pany, and that the amount with interest was paid to Andrew Hamilton by the New York Life Company from the pro- ceeds of syndicate in United States Steel stock.
 President John A. Mccall told the committee today that he had told the Central National Bank and E. E. Mccall that Hamilton was good for S50,000 and they had then taken Hamilton's notes; President Mccall said the New York Life Company owed Hamilton $59,310 and took the syndicate profits to pay him. The result was that the payment did not appear on the books of the com pany. The reason was that he wanted to keep Hamilton's expense account down.
 Proceeded Under Protest.
 Mir. Perkins attempted to make statement upon this subject but was not permitted to do so. He proceeded under protest.
 He said the New York Security and Trust Company was made registrar of the United States Steel preferred stock and was allotted $3,000,000, of which 2,4O0,0 900 was allotted to the New York Life and out of that s50,O00 went to MT. Perkins for a Chicago man and $25. 900 to A. G. Payne. The only guar antee, MT. Perkins said was that he promised for the New York Life that 1t would maintain it's loans to the New York Security and Trust Company.
 The New York Life had no written guarantee from the Trust Company to surrender 75 per cent. of the profits to lIe INGW lIlF- AS SOsVOVsVVu proposition came from J. P. Morgan & Co.
 We were careful not to have re- cords about it in the New York Life" said MT Perkins. We had agreed not to have any stock participation prior to this. I wanted to make all I could for the New York Life and put it into the position of having nothing to lose and all to gain"
 They were careful not to put 1t on the records because the New York Life did not want to be identified with the Steel Corporation. President Mccall and Treasurer Randolph of the New York Life knew of the deal and agreed that it should not be on the records. Mir Perkins did not know what became of the remainder of the $3,000.000.
 Was there an agreement by which $3275, ,OO0 was to be csried by the New York Security and Trust Company for the New York Life Insurance Com pany?" asked MT. Hughes.
 Friend from Chicago.
 MT. Perkins said it was not carried for the New York Life. The New York Security and Trust Company. he said, put up the 12 1-2 per cent. called for in the participation. He did not know whether the trust company also put up the money for his Chicago friend. The object of assuring the trust company that the New York Life would not dis turb it's deposits with the trust com pany was a part of the trade" said Mir. Perkins. He said he did not in- cIude this deal in the list of syndicate participations of the New York Life re- ported to the investigating committee because the New York Life did not &C., tuaIly participate.
 A letter from the secretary of the trust company to the New York Life of September r, 1903, in which the New York Life was notified that 1t had profted to the extent of S58,0O0 in a United States Steel syndicate, was read
 Mir Hughes asked about the with holding of S56.720 and it's payment to Andrew Hamilton. Mir. Perkins said that in 1901 President Mccall told him that he (McCalD had asked the Central National Bank and the New" York Se- curity and Trust Company to make loans of certain amounts to Edward E. Mccall and Andrew Hamilton since 1896 and wanted to get them together in one account.
 Perkins, therefore. in 1902 advanced for J P. Morgan & Co.. 10 the Central Bank and to the Security and Trust c n q ToA