The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1905-11-30
QUEER INSURANCE DEAL
from Treasury Vault Of New York
Life 100000 of Stock Was Sur
repsitiousIy Removed.

One CT the most interesting tea-
ures OF the life insurance lnvestiga-
ion at New York developed only a
'ew minutes before adjournment Of
he Armstrong committee Monday
when Theodore F. Banta, cashier OF
the New York Life Insurance compa-
oy, testified that about tie beginning
If 1901 Edward D. Randolph, treasu'
yer of the company, opened the vaults
If the company, removed New York
city stock valued at 100000, aud put
a check of the Central National Bank
for 100000 in it's place.
Mr.. Banta said he helped to open
the vaults at the order of Mr.. Ran
dolph and that he supposed MIR. Ran
dolph acted for the finance commit
tee. The stock was kept out for q
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the check withdrawn.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.. Ranta knew. The effect Of the
operation would be that any one hav-
ing that stock would have 100000
worth of non taxable property at the
end Of the year. Mr.. Banta did not
know who received the stock.
George w. Perkins, vice president
Of the New York Life Insurance COM
pSuy and member of the firm of J. P.
Morgan & Co., bankers, was also a
witness during the day and described
10 the committee the transaction
which resulted in his receipt of S4O,-
1913 from Kidder, Peabody & Co.. OF
Boston, as half the profits Of the sale
of s2:OCO,OOO worth of bonds of the
Mexican Central Railroad company.
Milton NJ. Mattison, bookkeeper OF
the New York Life Insurance COM
rany, had previously testified that
s33O,0OO of the life insurance compa'
ny's money was used in the transac-
ton and that Mr.. Perkins got the
profit.
Mr.. Perkins, in his statement; Mon
day, said that he went into the trans
action 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, ne said, prof
tied to the extent of per cent in
terest on the loan of s930,0O0. He
stated that the company had no righ7
to the s4O,193 profits.
Mr.. Perkins said also that J. P.
Morgan & Co. had taken up notes OF
Andrew Hamilton and e. E. Mccall,
formerly justice of the New York
State supreme court, amounting to
$o6,310 at the request of President
John A. Mccall of the New York Life
Insurance company, and that the
amount with interest was paid to
Andrew Hamilton by the New York
Life Insurance company for the pro.
ceeds of syndicate in United States
Steel Corporation stock.
President John A. Mccall was call
ed and told the committee that he
had told the Central National Bank
and E. E. Mccall that Hamilton was
good for $4,000 and they had then
taken Hamiiton's notes.
Much evidence was given both by
Mr.. Perkins and President Mccall
about the New York Security and
Trust company's participation in the
United States Steel Corporation syndi
cate to the extent of s3,250,000, hav.
ing the deposits Of the New York Life
Insurance company for about that
amount.
81 never gave United States Sen.
ator Platt a dollar in my life for the
New York Life Insurance company,
declared Mr.. Mccall in reply to a
question.
Mr.. Mccall did not know of any
payment by the New York Life to
any state campaign fund.
Mr.. Mccall said one of Hamilton s
notes may have been a contribution.
His brother, E. E. Mccall, he said,
was elected supreme court justice in
1902, but the New York Life never
contributed to his campaign ex.
penses.
'Who have solicited campaign con.
tributions from you?''
81 had rather not tell. I have been
solicited very much. but not by mem.
bers OF the legislature nor state off,
cials."