The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-29
NEW YORK LIFE
PUT UP THE CASH
But the Small End of The Profits
Went to the Company.
HOW GRAFT WAS WORKED
INSURANCE BUSINESS TURNED
INSIDE OUT.

4 Il
York Life Insurance company, was
the first witness before the investigat-
ing committee today. Charles T.
Hughes, counsel for the committee,
asked him if he had been ordered by
President John A. Mccall to turn the
$40. 1873 check from Kidder, Peabody q
Co, Of Boston, over to George W. Per-
hns, vice president Of the New York
Life Insurance company. Mr. Ran
dolph said he was ordered by President
Mccall
MIR. Randolph said the loan of $780,
900 20 Kidder, Peabody * Co. was not
acted upon by the finance committee
OF the New York Life
The company's Share.
Asked why he did not cash the check
for the New York Life Insurance COM
pany Mr.. Randolph said it did not be-
long on the records of the New York
Life. The cOmpany's share was 5 per
cent interest on the Mexican Central
bonds
And to furnish all the money" said
Mr.. Hughes.
Asked about the removal of 500, 600
worth OF New York Citv stock from
the vaults of the New York Life IN
suTance company for a few days and
the substitution therefor of a check on
the Central National baS'- for 500 600
which was told yesterday by Cashier
Theodore +. Bauta of IN oNew York
Life, Mr. Randolph said tn statement
was correct in the main. He did re-
move the stock as Mr.. BanJa testified,
he said, but at that time he was not
the treasurer of the company. but the
chairman OF the executive committee
lie probably acted under instructions
from Mr. Gibbs, then treasurer now
dead.
He Didn't Remember.
who got the stock?" asked Mr..
Hughes.
Il don't remember. Only three men
had then access TO the vaults" he said
The stock was absent from Jan. ) TO
Jan 2 He thought there were other
similar instances. He agreed with Mr..
Hughes in the conjecture that il was
done TO enable someone TO put them in
as non-taNable securities. Mr.. RAN
dolph said he understood the Central
bank account for the Merchants Trust
company in the transaction, and pos
sibly for others, The lending Of Sc
curltles FOR such purpose was re-
puSnant 20 him. he said and ne would
not do IT, There was one other case
whose bonds were loaned. and IL was
good business, bct tbev were q eI3-tax-
able bonds II was tine Of financial
stress. when the secretary of the treas
urN demanded high-class securities. and
the New York Life deposited Massa-
cnusetts and New York city bonds with
the United States government for the
First National bank Of this city and
received for that over $50, 600 besides
interest.
New Orleans Transaction.
William $. Fanshawe. member of the
banking firm Of Harvey Fiske a. Co.
was called. Mr.. Hughes questioned
him concerning the New York Life In
surancc oompany's dealings in New Or
leans traction stocks. Mr.. FanshaWe
said that in December. 1904, he bought
from the New York Life Insurance
company New Orleans traction stocks
Of the IA ce value of 81, 90, 0OO
OF the stock he received 81 .OOO 900
in face value, worth $3.50, 00G. from the
New York Security q Trust company,
and S25G,00O OF face value S1S7 .50G ac-
tual value from George ". Perkins,
trustee of the ''Nylic" fund Mr. Fan
Shave gave his checks for S75C 900 to
the trust company and for S1S7 500 10
Mr.. Perkins, and then borrowed $685.. 800
from the New York Life Insurance
company on the bonds as collateral.
He then sold the bonds and paid %
per cent Of the profit 10 the New York
Life Insurance company.
Long Island Deal.
AR FanshaWe said he was in o joint
account with the New York Life In
surance company to purchase s. 045,000
OF Long Island railroad bonds. in
which the life insurance company car
ried the entire lot of bonds for the
interest. and received q profit Of SSlS2,
while Mr. Faushawe'S profits We're S2c,-
SOC Half the bonds were owned by
Mr.. FaushaWe. and he sold them all.
He made the arrangement through Mr..
Perkins and Mr.. Randolph but did
not divide his own profits on the deal
with amy one connected with the New
York Life Insurance company.
DO YOU know of any reason why
the New York Life. if il was willing
To advance the money 70 carry these
bonds should not have bought the
bonds outright and employed you as
broke IL sell theme asked Mr..
Hughes.
Furnished the Experience.
yes. because by going into this joint
account with me they got the benet
of my experience. both in buying bonds
and marketing them They never paid
me anything for that, bat they got one
nall az the net profit" said Mr.. Fan
Shave.
Mr.. FlnshaWe said that he never at
any time gave to any one connected
with the New York Life Insurance
company directly or indirectly. any
share Of any profits in any Joint
transaction with the Sew York Life.
Mr.. Hughes read the deposition Of
George II. Squire. formerly financial
manager Of the Equitable Life Assur-
aDCe society. which was taken several
davs ago Mr.. Squire was asked about
the purchase o. c.o00 shares o. the
LAWYERS Title Insurance company by
the Equitable society at Hl3: share.
Fifteen hundred of tie shares were
divided among officers and directors
and the Equitable society kept soc. it
was desired to have it appear. how
ever that the Equitable had bought
fha entire 1000 shares Mr.. Squires
took 100 shares and afterward sold
similar amount 10 Williamson 6 Squire.
who subsequently, sold = similar amount
Co the Equitable society at SSlc.
NJ. Squire was asked about the sale
of stock OF the Lawyers Mortgage COM
many by the American Deposit a Loan
company tc the Equitable society, and
was asked il the American Deposit K
Trust company did not pay the profits
Of the sale L. him Mr. squire said
he did not know To- know the profits
went.
pepew Mas in 1t.
In reply 10 questions By Nj. Hughes
Mr.. Squire said some of the officers Of
the Equitable society sold their hold
ines of the Lawyers Title Insurance
Continued on Page 2.