The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1905-12-20
MORE INSURANCE GRAFT
New Exposures in the Investigations
Of the Armstrong Committee.
LAWYER HUGHES STILL AT 1T

VIVIAN
Regarding Private Transactions in
New York Lilo Insurance Securities
President Mccall Also Testi1es-S7oO,-
o In Bonds borrowed From Company
New York City.-President Mccall,
Vice-President Perkins and other Of
ficers of the New York Life testified
before the Armstrong insurance ON
mittee.
In one year 100000 Of non-taxable
securities were removed from the
vaults Of the insurance company and
kept out for several days. A cashiers
check of the Central National Bank
for the above amount was deposited
in the vaults in exchange. The infer
ence drawn at the hearing was that
the transaction was carried through
to enable some institution or indi-
viduals to evade the paying Of taxes.
The $4,000 which j. P. Morgan &
Co. paid to Judge Andy Hamilton and
deducted from the New York Life's
profits in the United States steel cor
poration syndicate was never entered
as a debit in the life insurance COM
pany's books. President Mccall testi-
fed he had no detailed knowledge
as to what had been done with the
money.
That $4,000 which was paid to
George w. Perkins on the Kidder,
Peabody & Co. loan transaction was
deposited by Mr.. Perkins in his per-
sonal bank account. Other moneys
received, by him for the, benefit Of
Nylic, the New York Life's agency
organization, were treated in the same
way, a statement Of the amount due
the organization being made annu-
ally.
Mr.. Perkins is n of the three trus-
tees of Nylic. No regular separate
Nylic accounts were kept by him. AL
though the New York Life's money
was used to make the $4,000 men-
toned above, Mr.. Perkins denied that
it belonged to the life insurance COM
pany.
The name Of Edward q. Mccall, a
brother of the New York Life's presi-
dent, now a Supreme Court justice.
was brought into the investigation.
When counsel for the New York Life
he signed notes on which Andy Ham
ilton got money, and he helped i'll
making the payment Of $751; 900 to the
Republican National Committee in
1900.
1t was almost at the close Of the
afternoon session when Mr.. Hughes,
counsel for the committee, brought out
the facts in regard to the removal Of
the New York LIES non-taxable sc.
curities.
Cashier Theodore M. Banta volun-
tarily told Of the transfer of the securi-
ties when Mr.. Hughes asked him in a
general way if LIE knew Of any irregu-
larities in the company.
The transaction occurred, the witness
said, either in 1901 or 1902. The securi.
ties removed; from the vaults were
New York City bonds. Treasurer
Randolph, took them from the vault.
The witness could not say on whose
order Randolph acted or to whom the
securities were delivered. The transac.
ton occurred either at the close of
the year or at; the opening Of a now
year. =
! The Central National Bank check
(which was substituted was put in the
envelope which contained the 'securi.
ties. This check was not banked and
was taken up when the securities were
brought back a few days later. The
check was the only receipt for the
bonds. While the bonds were out OF
the New York Life's possession, the
witness declared, they still remained
on its books as part of the company's
assets.
"Was it about the time when the
ownership of New York City bonds
was valuable for personal taxes?"
asked Mr.. Hughes.
"Yes," was the witness reply.
The witness thought that a transac.
ton similar to this had been carried
through once before, while Mr.. Gibbs
was treasurer. The witness said that
the New York Life didn't have to pay
taxes, and if some person had the
bonds, why, he would, Of course, be
exempted to. the amount of his hold.
ings in those. securities. MIR. Banta
said that he knew that Mr.. Randolph
had intimated that he didn't approve
this practice.
President Mccall and Vice-President
Perkins were on the stand the greater
part Of the day.