The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-09-13
.SHUFFLED BONDS
To MAKE !. { REPORT I. ! ! !
Remarkable Disclosures
Made In Affairs Of
New York Life. III
BIG SENSATION AT
COMMITTEE MEETING
Admissions of strangs Trarsac-5
tions Of Society Reluctantly
Dragged From Treasurer
Randolph ~ Sold Bonds, 5a5
Made Report, and Then
Bought Bonds Back. n
| i T. Il i 2 d 4
(By Assocluted Preas.l

T. aN
Il NEW YORK, September 12.-selllnai
$500, 900 In bonds one day and buying them
( back the next but one, a holiday inter-. I.
%venins,I In order to Keep within states
ments made In the New York Life T1l-4{E
s,rance Company's report to the superin7
disclosure made to-day al the session OF IL
tho Executive Insurance Investigating
Committee The fact was drawn from
Edmund y. Randolph, treasurer or tho n
4 ENewsYork Life Insurance Company, lateg$
in the day after Attorney Charles II. .s
Hughes, OF counsel totthe committee, had IA
9lab0red for over an hour to get a direct
answer from Mr.. Randolph to n direct.
question:. Il y si B IIiiS
THE inquiry had dragged through " s
mass of figures during almost the entire
day, but 1t was not until near the hour
for ending the session that the sensat tional
feature was broughtSout. @ S9sy
Earlier In the day, Mr.. Randolph had 4
handed Mr.. Hughes a schedule Of syndI -G3
cate underYritings and transactions Rof !
the New Y ork Life for the last ten years.
This statement was to show, and a foot-5
note to the schedule SO stated, that the II
company had participated in no syndicate
transactions that had + been closed out 4
with a loss. Among these syndicat e$
TRANSACTIONS was the underwriting of8the#
Navigation Syndicate or International
Merca ntile Marine. s4 55S sf
t@ Create Sensation. 81
Mr. Hughes drew from the witness
that there was an aggregate OF ~, 600, ,0O1#
the New York I'll feS paid y. Pst Morgan n
and Company on this join account"
Mr.. Hughes then took UP q sales ITEM
dated December 81 1903, Of $500, ,Q00,s OF
International Mercantile Mar ne stock.
Mr.. Randolph, replying to Mr.. 45TIugh ghes,Hs
said this sale was made to u. p. Morgan V
and Company. Mr.. Hughes continued his <
inquiry into heymatter and asked 4:
On January 2, 1904. there Is an entry
OF a. purchase Of $500, 600. From whom Z
did you buy2'' .S 55i I13ssS55 I139 N ,l5
u. p. Morgan and Company. Z isH
Why did you sell to J. p. Morgan, then
buy from J. p. Morgan and Company, on &
tho next business day 2" 5f u 5
I" Because they desired to&reduce it,'"'!ssIt$
Yes; but why, then; did you buy II
back the next business dny?'' III
Here Mr.. Randolph began to explaln,s
and wandered several times from the sub
ject. Iii was led back by the lawyer,
who seeningly was unable to get a reply
Finally he asked: 4 81
WHO sold the shares for the New York 4
I.ife2'S Il, Ii;
'Mr. Perkins" n t.3F
''Who bought them again ?'' E 5
'An officer OF the company ii
Who was Il ?''89 AZ ~ 5
"Mr. Perkins. G. X. 8
'.lAs matter Of fact. there was a res
port OF the Superintendent Of Insurance
on December 81 1906" $ss
n Yes - Ks ~ # 94
"rhen, the sole purpose of the trans-S}
action was hat you might be able to-
tell the Superintendent Of Insurance YOU
held only s3,200,0 600 Of International Nler-s
camille Marine shares H,' 35 n
The witness hestated, ana \ tried = q
evadc Il direct answer but Mr.. Hughes
repeated the question. until finally. Irss
Randolph said
Fl Yes" 5$8
There was a nlomentary hush, followed
by n murmur Of suppressed excitemen
Syndicate Transactions. is'
# Following up the Navigation Syndicate
transactions, Mr. Hughes referred to an
item on the schedule of syndicate trans-S8
actions under date Of December 30. 1904, A
by which sSOO,GOO of bonds were sold ]. .{}
S. Morgan & CO., of London, for $720000. J
Mr., Randolph admitted that this was an
outright sale. and the loss OF sSO,0oOa
was charged to the profit and loss ao-s
count. Mr., Hughes left the point and tooic
aup an association known as "Nylc," With
the New York Life Insurance Company "
He got from the witness an admission
that on April II. 1904, sale OF s5O0O0
stock to "Nyllc" was made, or this ass
sociation, Mr.. Perkins was N trustee. and
'Nylc" bought and sold stock for ths
benefit of the company 5
Tho use fulness OF tho New York Seour-
lty and Trust Company to the New York 4
Life came out when It was testified tHnt3
while tne Insurance company was not tax 81
Ing collateral loans. II made a practie1 4
pany which made the collateral loans.
" Mr. Hughes took mp the accounts Off
the money deposited With the New Is.s York
was called accoun, No, 4. It ran. from
So $50 coo In May and June up to w. .53l ,Oc0! 81
in septemher, and ended at we'll over
Sl0,0O0O01 In December,
reduce the amount deposited with tho ~
New York Security and Trust Company Z
In July, 1901, to S,5 600 and keep " az
that even figure 10 the end OF the yearf5
Your balance at the beginning OF 1901 /
was $S,0OO00o."
Tried to Dodge Question.
Mr.. Randolph professed ignorance, tho
timposslpilty of remembering every
transaction, and INTERRUPTED again and
again. 5ls,ssi 3,2
Mr. Hughes begged the witness to re.
fraim from general conversation" aud
repeated the question, Mr.. Randolph
finally said; l.5s.
'.Thero was q squestiort- at This time
whether our relations would continue Win M
the company The consoldet.on OF the
New York Securities and Trust Company III
was taking place al this time III & ri
NOW. prior 10 the end OF 1901. TIE trls-
tees OF tho Nav Yorls Security and Trust
Company held 6da5 shares; |; thatfis, a ma,
jor.ty OF the 10000 shares?'' S ,s8s52s 4
'.5 tNea his4t