New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-09

gave the details OF the transactions by which
they accrued 10 the New-York Lie.
Mr.. Hughes again inquired into the working
OF the syndicates. and the result surprised hln-
o-IIow do YOU know that you got your right
shares? Ave don't know: that's the beauty OF
the modern %, syndicate hind pool? A
Very much like it.
Later Mr. Randolph asked Mr. Hughes to
eliminate the term blind pool from the
records.
o.-Do you not take any steps to insure yourself
against loss? Al will have TO CONFESS we 90 not
business? A.-No they always SEND a written
Do You not yourself think the New-York Life
Is TT0n enough to make t q 3er ror @
have always thought it would be most lmpolitlc
TO invade the field of banking houses. e.o,,,
Off you demanded itemzed statement from
the manager of the syndicate would YOU receive
it? Ye but we would probably be Ief5 9ef OF
o-You sometimes buy bonds in the he open naT
agreement a.@Yes There is sometimes an agree
ment that may not withdraw the bonds from
o.-Is there generally such an agreement? A.
There may and there may not be- It is the gen
eral custom not to withdraw.
Mr.. Randolph pointed out that the members OF
the syndicate were under agreement not to offer
the bonds in which they were interested at such
price as to break the market. If the manage
ment sells all the holdings of the syndicate the
| members obtain profit without paying cent.
| II it does not the members obtain the bonds at
the bottom price. The manager of the syndl-
| cate receives Il per cent for the trouble OF
| management. The New-York Life believed that
by following this method it obtained its stock at
| the cheapest possible rate. Banking bust
ness in itself and should not be interfered with
! by outsiders.
| NETWORK LIFE HOLDS NO TRUST STOCK
Mr.. Randolph said the New-York Life does not
now hold stock in any trust company. 1t did.
! however, prior to it's change Of policy in 1892.
| The bylaw adopted in 1899 with reference 10
the investments of the New-York Life was then
read, and counsel proceeded to go into the rate
of the 5OO5 New-York Security and Trust Com
pany's shares which were held by the company
at that date and had to be disposed or
1T was a very interesting problem, said Mr.
Randolph, because If it publicly known we
had to GET rid OF them there might be an at
tempt to jump on us. purchasing syndicate
was formed
York Life was put in as evidence. The purchase
I was $500 a share.
The trustees named under the agreement We're
Charles S. Fairchd. John A Mccall and George
w Perkins.
Among the buyers of shares were J. P Nor
gan. 1000. John D. Rockefeller. 500, and James
Stillman, $50.
Provision was, however, inserted that if on
January l, 1907, the face value of the stock OF
the excess would be paid the New-York Life and
one-half the holders of certificates of interest
in the syndicate. The list of persons forming
the syndicate with the number of shares they
took also put in as evidence. Mr. Ran
doph said that the trustees have an option TO
buy these 5000 shares on January l. 1901.
This option he said, lis really given TO them
to buy the shares back in the interests of the
New York Life There separate agree
ment between the three trustees and the New
York Life
witness said that the control of the trust
company still practically remains with the New
York Life through the three trustees He SAID
Trust Company had necessarily been increased
by 100000 To acquire the stock of the Con
tinental Trust Company the New-York Security
and Trust Company then became owner of the
assets of the Continental Trust Company
OF the New-York Security and Trust Company?
A. Yes Consolidation seemed the order OF the
changed its name to the New York Trust Com
pany of which Mr. Randolph said he was d.
rector.
In 1900 the New-York Life had three accounts
with the New-York Trust Company. No. l, wit
testified. from S2,5oO,ooO to S3,OoO,OOo,
and was the ordinary account; Nos. ana {"
were for annuities and such things; No. was
opened in January 1901 with a deposit of
So 600 600 This afterward ran up by July
ly as high as S11 100000.
Mr.. Randolph virtually ACKNOWLEDGED that the
object of the New York Life in keeping much
larger sums with the New-York Trust Company
at an interest = per cent less than the current
pany with deposits against which 1t could make
loans
During the first three months of 1902 the in
surance company kept s10,00O00O continually on
deposit with the New York Transfer Company.
Mr.. Randolph appeared to find difficulty in ex-
planning this, hut at last said with some hesita-
ton:
This involves again the difficulty of getting
rid of our stocks.