The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-11-28
How 100000 Became
for a Time Non TaxabIe.I
BACK IN A FEW DAYS
Banta Tells of How New York City
Securities Was Taken From the
New York Life Vaults and a
Check for the Amount
Substituted.
(Ry the Associated Press.l

New York, Nov. 27.-One Of the
most interesting incidents OF the life
insurance investigation developed only
few minutes before the adjournment
OF the Armstrong Committee today
when the Theodore f. Banta, cashier
Of the New York Life Insurance Com
pany testified that about the begin
ming of 1901, Edmund ID. Randolph,
treasurer of the company, opened the
vaults of the company, removed New
Y York citl stock valued at $4,000
and put check on the Central Ma
tional 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 Mr.. Ran
dolph acted for the finance committee,
The stock was kept out for a 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check withdrawn.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.. Banta knew
The effect of the operation would be
that any one having stock would have
100000 worth of non-taxable prop
erty at the end of the year Mr.
Banta did not know who received the
stock. MIR. Randolph is expected to
be one of the witnesses tomorrow.
George w. Perkins, vice president
Of the New York Life Insurance Com
pany and member of the firm of J.
scribed to the committee the transac-
ton which resulted in his receipts OF
$40,193 from Kidder, Peabody & Co,
of Boston, as balf the profits of the
sale of $2,000,000 worth of bonds of
the Mexican Central Railroad Com
pany. Milton W. Mattison, a book
keeper of the New York Life Insur-
ance Company, had previously testi-
fed that $930,000 of the life insur-
ance company's money was used in
the transaction and that Mr.. Perkins
got the profit.
Mr. Perkins said today that he
went into the transaction for the Nylic
fund, which is owned by the agents
of the New York Life Insurance Com
pany, and that he invested the profits
for that fund. The life insurance
company, he said, profted to the ex-
tent of five per cent interest on the
loan of $930.000. He stated that the
company had no right to the $4O,193
profits.
Mr.. Perkins said also that j. p.
Morgan and Company had taken up
notes of Andrew Hamilton and e. e.
Mccall. formerly Justice of the New
York State Supreme court amounting
to $56,310 at the request of President
John A. Mccall, of the New York
Insurance Company. and that the
amount with interest was paid to An
drew Hamilton by the New York Life
Insurance Company for the proceeds
of a syndicate in United States Steel
Corporation stock.
President John "A. Mccall told the
committee today that he had told the
Central National Bank and E. E. Nc
Call that Hamilton was good for $780,
600 and they had then taken Hamil-
tons notes. President Mccall said the
New York Insurance Company owed
Hamilton the $56,310 and took the
syndicate profits to pay him. The re-
SUIT was that the payment did not
appear on the books of the company
The reason was that he wanted to
keep Hamilton's expenses down.
Much evidence was given by both
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 $3,250,00O, hay-
ing the deposits of the New York Life
Insurance Company for about that
amount.
The New York Life got 25 per cent
of the profits and Mr.. Perkins con-
tended that it was a safe and profit
able venture. President Mccall said
the life insurance company should
have participated directly instead of
indirectly.
D lycas.. .thb Kto. pBeo hdrJurdilnu
L never gave United States Senator
Platt doIlar in my life for the New
York Life Insurance Company de-
clared Mr.. Mccall in reply 20 a ques-
lion. 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 campaign con-
-ribution His brother. he said was
elected Supreme court Justice in 1902
out the New York Life never contrib
uted 10 his campaign expenses.
who have solicited campaign con-
ributions from you?"
81 had rather not tell. i have been
solicited very much but not BY mem
bers of the legislature nor State of
fcials''
Senator Cox asked Mr. Mccall IL
ne believed the State should allow the
insurance companys to engage in such
/ syndicate transaction as that of the
United States Steel Company. Mr..
Mccall replied that he did not believe
he insurance companies should en-
rage in speculation. He thought they
yera a source of evil.
1.-THE more YOU take away the spec-
llatiye character of the insurance
the better" said he, Asked if
he believed insurance company
hould own trust comnany's stock
which should make such investment,
le said he did not think the New
York Life Insurance Company should
,wn the stocks of trust companies.