The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1905-12-01
PUTS Y CHECK IN ITS PLACE
TREASURER OF THE NEW YORK
4 LIFE GETS SECURITIES
WORTH 100000.
PERKINS EXPLAINS DEALS
NYLIc FUND PRoFlTED az BOND
TRANSACTION - GOOD TO
HAMILTON.

New York, w. 29. - One of the
most interesting features Of the life
insurance investigator developed only
a few moments before the adjourn.
ment Of the Armstrong committee
yesterday, when Theodore F. Banta,
cashier of the New York Life Insur-
ance company. testified that about the
beginning of 1901, Edmund d. Ran
dolph, treasurer Of the company,
opened the vaults of the company, re-
moved New York city stock valued at
100000 and put check on the Cen
trail National bank for 100000 in it's
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 CON-
nlittee. 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withdrawn.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 COM
pany so far as Mr.. Banta knew. The
effect of the operation would be that
any one having the stock would have
100000 worth of taxable property at
the end of the year. Mr.. Banta did
not know who received the stock.
Mr.. Randolph is expected to be one
of the witnesses to-day.
George w. Perkins, vice president
of the New York Life Insurance cont
pany and member Of the firm of ]. P.
Morgan & Co., bankers, yesterday de-
tailed to the committee the transac-
ton which resulted il lis receipt Of
$4O,19 from Kidder. Peabody & Co. OF
Boston, as
Half the Profits
of the sale of 100000 worth OF
bonds of the Mexican Central Railway
company. Milton M. Madison. a book
keeper of the New York Life Insur-
ance company, had previously testified
that $930,Gl0 of the insurance COM
pany's money was used in the transac-
ton and that Mr.. Perkins got the
profit.
Mr. Perkins said yesterday 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. rrofited to the extent of
S per cent interest on the loan of $780,
900. He stated that the company had
no right to the s40,193 profits.
Took Up Aamilton's Notes.
Mr.. Perkins said also that J. P. Nor
gan & Co. had taken up notes Of An
drew Hamilton and E. E. Mccall, for
merly justice of the New York SUI
preme court, amounting to $56.310, at
the request of President Mccall of the
New York Life Insurance company,
and the amount, with interest, was
paid to Andrew Hamilton by the in
surance company from the proceeds of
a sale of United States Steel stoock.
President Mccall said the New York
Life Insurance company owed Hamil-
ton $50, 80, and took the steel stock to
pay him. The result was that the
transaction did not appear on thasill-
surance company's books. The reason
was that he wished to keep Hamil-
toms expenses down.
Tells About U. s. Steel Deal.
Much evidence was given by Mr..
Perkins and Mr.. Mccall about the
New York Security and Trust COM
pany's participation in the United
States Steel company's syndicate to
the extent Of $3,25O, 900, having the dc
posts of the New York Life Insurance
company for about that amount. The
insurance company got Is per cent OF
the profits, and Mr.. Perkins con-
tended that it was safe and profita-,
BILE venture.
President Mccall said the life insur-
ance company should have participa-
ted directly instead of indirectly.