The evening world., 1905-09-12

insurance inquiry this afternoon that
the New York Life Insurance Com
pany juggled It's security holdings tc
mislead the State Insurance Depart
ment. The evidence was wrung from
Treasurer Edmund E. Randolph, who
had been on the witness stand all day
and who had denied that the New Yorl,
Life bought securities one day and
sold them the next with the purpose
OF making a market
Chief Counsel Hughes discovered the
entry on Dec. 81. 1903 showing that the
New York Life had on that doy sold
ssOo,ooo worth OF International Mercan-
tile Marine Company bonds. which had
been purchased only a short time be-
fore from ]. P. Morgan & Co.
Q. To whom were those bonds sold
A. ]. P. Morgan & Co.
O. Who sold them? A. The Finance
Committee.
No Record Of Sale.
O. Is there any record OF the Finance
Committee taking such action? A. I dc
not find any.
O. Who acted on behalf OF the com.
pany? A. Mr.. Perkins.
q. w. Perkins Is a partner of ]. P
Mor;sln and also Vice President of the
New York Life.
O. Why were those bonds sold? A
Simply because. believe, we-the direc.
tors-dh not wish to increase our origi-
nal syndicate holding OF 81, 1000
@. II that be true. why did the New
York Life purchase back those $500, 900 in
bonds on the FIRST business day after the
sale? "A. We'll. we purchased them.
q know that. but who purchased
thernr A. shouldn't like to say. but
I think Mr.. Perkins did, as an ofticer OF
the company.
@. Did the Finance Committee know
anything about this transaction? A.
Oh, yes.
Q. Is there a record Of It? A. I dc
.'ot find any in the minutes.
Q. Now. as a matter Of fact. did you
not make an annual statement TO the
Superintendent Of Insurance on Dec. 81
1903? A. Yes.
Q. And didn't you sell that stock or
show that you were carrying s4.Oo0,01C
in Navigation bonds instead of ss, 1000
A. We sold them.
@. Answer my question. Did you or
did you not sell those bonds to keep
them gu. OF your annual report? A.
YES
G. And they were purchased back
again by the company or Mr.. Perkins
A. Yes.
Pale and with voice shaking Mr.
Randolph faced the committee wher
called to the witness stand at the morn.
ing session and said he wanted to make
q a'enent.
Since last appearing before you gen.
tlemen." said Mr.. Randolph. IT have
been smarting under the criticism which
has been passed upon Mr.. Marshall and
myself In connection with the testimony
have given here.
Stands by What He Said. y
Il wish to say that I stand by what
ever I have said. know I have be.
hind me all the members of the Finance
committee. men of reputation. Of long
ana honorable records. who are ever
: foremost In good works in this COM
munity. / have nothing to defend. but
] wish to say that ell these gentlemen
know that the custom Is universal OF
having matters concerning banking
institutions or similar organizations
carried in the names of individuals
There Is nothing wrong about II. !
know from my long experience that
there is nothing wrong.
"Mr. Marshall is an estimable' young
man. He has done nothing wrong.
Why he was selected TO act as IA
dummy borrower. II you will don't
know personally. There was nothing
wrong about 1t. In the matter OF dis
posing OF the stocks by the method OF
procuring employees to act as borrow
ers the directors feel justified. They
had made 100000 prnht on the securi-
ties in question and by disposing OF
them as we did we made $25O,0OO more.
We saved the securities from going to
public auction-especially the Chicago
and Northwestern stock"
Explanations and Fears.
Mr.. Randolph insisted on this state
ment until Attorney Hughes became
nettled and directed him to return to
hie testimony
by Hughes to tell what, II amy, ofiicial
record existed OF the selection OF Mar
shall and the other messengers,
Mathewson and Newberser. as dummy
borrowers. he again broke out OF
bounds; With tears In his eyes he ex-
EVERY banker. every man at the
Read OF q. financial institution. 10 al
ways proud to have assets behind those
wb.ch appear on his bools. am proud
that We SHOULD have had this stock
on which these loans were made 10
Marshall and the other young men. Il
v with . feeling OF pride that I look
upon the fact that we hat assets which
wore not on our books. Every banker
'1should take pride In knowing that ne
~ srmetHns 20 fall back on In lime
..EoE, Nj: Randolph. LET us quit this
mqnyr ingerrnpted Mr. Hughss, "We
81 eeeret Rseords Explained.
~: RAqaolph left the vitnsss stsnd "a
ss1'es i, S.s : Xss:i ssi r1s:s q: sIs n !
~ q csrls sy xI,leh Z se3eg4 ~