Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1905-09-13
DENTISTS WORK
Drawing Eye Teeth From
New York Life Official
1T Is SKILLFULLY DONE
In the Course OF the New York State
Insurance Investigation InfOrma-
ton Regarding "Iuner" TransaC-
tions is Brought Out.

New York, Sept. 12.-Selling 100000
in bonds one day and buying them back
the next except one. a holiday inter
vening in order to keep within state
ments made in the New York Life In
surance companies report to the su-
perintendent of insurance was the SEN
sationaI disclosure made today at the
session of the legislative insurance in
vestigating committee. The fact was /
! drawn from Edmund d. Randolph, !
! treasurer of the New York Life, late in !
the day after Attorney Charles L. |
Hughes of counsel to the committee, !
/ had labored for more than an hour to /
get a direct answer from Mr.. Randolph |
to a direct question.
The inquiry had dragged through a
mass of figures during almost the en- |
/ tire day, but it was not until near the |
hour for ending the session that the |
! sensational feature was brought out. !
Earlier in the day Mr.. Randolph had
handed Mr.. Hughes a schedule of the
/ syndicate undertakings and transac-
tions of the New York Life for the last
ten years This statement was intend
ed to show and a foOtnOte to the
! schedule so stated. that the company
| had participated in no syndicate tran
! sactions tnat had closed out with a loss.
Among these syndicate transactions
was the underwriting of the navigation
| syndicate, or International Mercantile
Marine.
Mr.. Hughes drew from the witness
that there was an aggregate of $4,000
OGO the New York Life paid ]. p. Nor
gan. and company on this Joint ac-
/ count" Mr.. Hughes then took up
sales item dated Dec. 81, 1903. of $780,
600 Of International Mercantile Marine
stock. Mr.. Randolph, replying to Mr.
Hughes, said this sale was made to ].
2. Morgan and company and that a
purchase of $500, 900 was made on Jan.
III, 1904, from J. p. Morgan and COM
pany.
After failing for some time to get a
direct answer, Mr. Hughes finally ask
ed Mr.. Randolph: "As a matter of fact
there was a report to the superintend-
ent of insurance on Dec. 81, 1903"
yes"
Then the sole purpose of the tran
saction was that you might be able to
tell the superintendent OF Insurance you
had only s3,20O.OOO Of International
Mercantile Marine shares? ?'
The witness hesitated and tried to
evade direct answer, but Mr.. Hughes
repeated the question, until finally Mr..
Randolph said: Yes" There was a
mOmentary hush, followed by a mur-
muir of suppressed excitement.
| Following up the navigation syndi-
cate transaction Mr.. Hughes referred
to an item on the schedule Of syndicate
transactions under the date of Dec 80,
1904 by which 100000 of bonds We're
l sold to J. P. Morgan and company of
London. for S72O. 900 Mr.. Randolph ad-
mitted that this was an outright sale,
= and the loss OF $4,000 was charged to
} the profit and loss account.
} Mr.. Hughes left the point and took
up an association known as "Nylic"
: with the New York Life Insurance He
got from the witness the admission that
on April Il. 1904, a sale of $4,000 stock
to "Nylic'' was made The usefulness
of the New York Security and Trust
company to the New York Life came
r out when it was testified that while
p the insurance company was not taking
collateral loans it made a practice Of
= lending its money to the trust company,
which made the collateral loans.
Mr.. Hughes took up the accounts of
the money deposited with the New
York Security and Trust company IN
1902, which was called account
| number T. It ran from S6.750,000 in
| May and June, $12,531,0 900 in Septem-
Der and ended at well over $10.0OO.OO0
in December.
] NOW. SAID Mr.. HugneS, why ulu
you reduce the amount deposited with
: the New York Security and Trust COM
pany in July, 1904, to $2,500,00O and
. keep it at that even figure to the end
of the year. Your balance at tne be-
s ginning of 1904 was $S,OOO,0O0?" Mr..
Randolph professed ignorance. the i'm
q possibility of remembering every tran
saction and interrupted again and again
81 Mr.. Hughes begged the witness to re-
9 frain from general conversation" and
Il \ repeated the question. Mr.. Randolph
q finally said: There was a question at
8 this time whether our relations would
continue with the company. The con-
solidation of the New York Security
q and Trust company was taking place
9 at this time"
'Now, prior to-tne end of 1901, the
trustees of the n. York Security and
s Trust company held 5,OO5 shares, that
is a majority of the 10000 shares?"
yes"
well, in March, 1904, when the total
stock of the company was increased to
800 900 shares, were the holdings of
s. the trustees increased?"
''No."
q The witness was then led through the
change of the name of the Trust COM
i pany and admitted that three accounts
q with the old company were closed and
8 four opened with the new one. When
81 the money was withdrawn from the
81 New York Security and Trust company
B il was deposited with the First Nationa
8 bank This admission was elected from
the witness after much pressure.