The Montgomery advertiser., 1905-11-29

toned him concerning the New Yorl
 Life Insurance companys dealings il
 New Orleans Traction stocks. Mir
 Fanshawe said on December 14 h.
 bought from the New York Life Insur
 ance Company, New Orleans Traction of the face value of Sl,25o.000. I Of the stock he received $1.000.00
 in face value, worth $750.000. from tn
 New York Security and Trust Com pany ana $25o000 of face value, $1s7,
 500 actqhl value, from George w. Per
 kins, trustee of the Nylic fund.
 MT. Fanshawe gave his checks fol
 $75o,0oo to the trust company ant
 s1S7,500, to MT. Perkins and then Dor
 rowed ss37,500 from the New Yori
 Life Insurance Company on bonds as
 collateral. He then sold the bonds and paid 95 per cent of the profit to the l New York Life Insurance Company.
 MT. Fanshawe said he was ln jofni
 account with the New York Life In-
 surance Company to purchase $3,e45.-
 900 of Long Island Railroad bonds in which the life insurance company car l ried the entire lot of bonds for the
 interest and received profit of $s.lS2,
 while Mir. Fanshawe's profits were
 $22,500. Half the bonds were owned l by Mir. Fanshawe and he sold them ali. He made the arrangement through MT. Perkins and MT. Randolph but aid not divide his own profits on the deal with any one connected with the New York ! Life Insurance Company. Do you know of any reason why I the New York Life. if it were willing | to advance the money to carry these | bonds, should not have bought the bonds outright and employed you as | broker to sell them?7 asked Mir. Hughes.
 Got Benefit of Experience. "Yes. because by going into this joint | account with me they got tine benefit of my experience both in buying bonds and marketing them. They never paid me anything for that. but they got half of the net profit" said Mir. Fanshawe.
 MT. Fanshawe 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 trans action with the New York Life. MT. Hughes read the deposition of George H. Squire, formerly financial manager of the Equitable Life Assur- ance Society, which was taken several days ago. Mfr. Squire was asked about the purchase Of two thousand shares of the Lawyers Title Insurance Com pany by the Equitable Society at sf74 share. Fifteen hundred of the shares were divided among officers and direc- tors and the Equitable Society kept 500 It was desired to have 1t appear, however, that the Equitable had bought the entire 1000 shares. Mir. Squire took 100 shares and afterward sold similar amount to Williamson and Squire, who subsequently, sold simi- lar amount to the Equitable Society at $3I0.
 MT. Squire was asked about the sale of the stock of the Lawyers Mortgage Company by the American Deposit and Trust Company to the Equitable So- ciety and was asked If the American Deposit and Trust Company di not pay Dtiae profits -oGes1se sale to hinfs- Airs Squire did not know to whom the prof It's went t,
 In reply to questions by Mir. Hughes. MT, Squire said some of the officers of the Equitable Society sold their hold ings of the Lawyers Title Insurance Company stock and may have sold 1t through Williamson and Squire. His attention was called to the sales of several blocks of the stock at 300 to $50 by that firm to the Equitable So- ciety but he did not know whether this stock came from the officers of the society.
 Depew Sold Some stock.
 He said that Chauncey M. Depew and Comptroller Jordan sold some stock but he did not know to whom.
 Mir. Squire was asked about joint account between James H. Hyde, w. II. Mcintyre and G. H. Squire to buy blocks of stock of the Lawyers Mort gage Company. He said the stock was sold to the Equitable Society by the American Deposit and Trust Company and the members of the joint account got profits of 5000. He was asked about the George H. Squire trustee &C., count in the Equitable Society's rec ords.
 He said the gains credited to that account were realized on securities turned over by T. B. Jordan, Comp troller of the Equitable, and which he believed belonged to the Equitable So- ciety. It was shown that check of $100,000 was drawn against the ac- count to the order of James Alexan- der. the President of the Society, and endorsed by him over to James Alex ander account No. s.
 Other large payments were made to the Mercantile Trust Company, the Equitable Trust Company and to T. B. Jordan.
 MT. Squire said much of the stock allotted to George B. Squire and asso- ciates was divided among the members of the Executive Committee of the Equitable Society. Mir. Squire said that George B. Squire and associates took 3f,5O0,000 of Chicago, Burlington and Quincy Railroad stock, of which the Equitable Society was allotted $5o0,0OO and the society paid the en- tire call made upon the Squire asso- ciates. This was the only case, MT. Squire said, in which the Society paid the call for the members of the syndi- cate.
 Lost on Hyde Syndicate.
 Mir. Squire said he had made net loss of $50, 900 in the James Hyde and associates" syndicate operation. He also said he made losses fin other sym dicate operations.
 Alfred Main. one of the auditors of the Equitable Society, testified that he had made a computation of the renewal commissions paid to Gage F. Tarbell, Vice. President of the Equitable Soci- ety. Mir. Hughes asked him to pro duce his calculations as to how much l MT. Tarbell was entitled to when the were made. The renew als ran for twenty-four years under the l policies written through Mir. Tarbells | agency The computation showed that | the present value of the commissions based on duration of the policies was S14O,000 and that they would pay him | $2S,000 a year. The longest of them | was good for twelve years. MT. Main | promised to bring in detailed figures of his computation.
 George T. Wilson, Viee-Presfdent of the Equitable Society, was the next witness. MT. Wilson was shown statements he made to State Superin- tendent of Insurance Hendricks show Ing that the cost of getting new busi- ness in Australia is 126 1-2 per cent of