The sun., 1905-09-13
I1NIOADED ON NEW YORK LIFE
,ySyRANCE co. LOST IN DEAL
WITH SECURITY g. TRUST co.

I'm, II Had Made Money Out Of the Trust
Company and Had to o blise, Treasurer
Randolph Testines-SOme Persons,
Unnamed, Backed Down-Quick Sale
and Repurchase Which Improved Re.
nort TO Hendricks what's "Nylic":
Further disclosures regarding the New
Cork Life INSURANCE Company's relations
n,;th the New York Security and Trust
COMPANY we're brought out yesterday
when the Armstrong insurance committee
resumed its inquiry into life insurance
conditions in this State. Treasurer Ed
m,nd D. Randolph OF the New York Life
testified on Friday that the insurance COM
pany had used the New York Security
and Trust Company to dispose of class OF
securities which were objected to by the
prussian Government and which the New
York Life Cor that and other reasons did
not wish to have appear in its annual
schedule Of assets.
II was shown yesterday that the New
York Life had at one time relieved the
trust company of securities and syndicate
participation amounting to So, ,775, 900. This
was done chiefly, it was said, because the
trust company had insisted that the New
York Life was the proper party to take
these things off the trust company's hands.
The trust company's representatives based
their argument on the fact that the New
York Life had made more than 5000 900
o,lt Of its sale to the trust company syndi-
cate OF its holdings in the trust company.
The securities which the New York Life
nurchased from the trust company were
sl,5OO,0Oo par bonds OF the New Orleans
Railway, for which they paid $l,275,ooo.
The syndicate participation was in the
securities of the same company. 1t was
for S3,sss, 600, and for this the New York
Life paid $2,5oo,Ooo.
The transactions were carried through
In March, 1904, a short time prior to the
merging Of the Continental Trust Company
With the New York Security and Trust
Company. 1t was on account Of the OBJ
lection Of the Continental people to the
New York Security and Trust Company's
holdings in the New Orleans Railway that
the latter company desired to get rid Of
them as an obstacle to the merger. Nobody
In the New York Life, it was said yesterday,
regarded the investment as unsafe at that
time. The objections of the Continental
Trust Company representatives, it was
said, were that the holdings were too largo
for a trust company to have in concern
Of that sort.
After the New York Life acquired the
securities and the trust company's partici-
patton in the syndicate the New Orleans
cempany went into the hands of q receiver
md The New York Life disposed Of its hold
th off hc of n
$4,000.
The fact was brought out at the hearing
On Friday that trustees Of the New York
Life are stockholders in the New York Trust
Company, the successor OF the New York
Security and Trust Company.
Itwas also shown yesterday that the New
York Life in 1908 had sold $500, 900 Of Interna-
tional Navigation syndicate bonds at par,
and bought them back two days later at the
same price in order to keep them out Of the
comrany's annual report to the New York
State Department Of Insurance. The sale
was made on December 81 and the bonds
were repurchased on January 2.
TREASURER RANDOLPH TOLD ABOUT 1T.
TWAS Edmund D. Randolph who gave the
committee the most Of its information on
both the New Orleans and the International
Navigation transactions. He was on the
stand during most Of the bearing yester-
day
Mr. Randolph sa i'd that when the merger
Of the Continental Trust Company with tho
New York Security and Trust Company
was under way in March, 1904, there was
an examination Of the companies by
committee from each. The New York
Security and Trust Company's committee
examined the Continental company and the
committee Of the Continental Trust Com
psny looked into the affairs Of the New
York Security and Trust Company.
Q. As result OF that examination did the
New York Life Insurance Company take of
the hands of the New York Security and Trust
Company any assets? A. 1t did.
Q. Why? A. 1t was the opinion Of the
Continental people that the New York Sc
curity and Trust Company had rather too
large holding of New Orleans Railroad stock
and had made an unduy large advance upon
thesyndicate interest In the stock.
The witness said that there had been
an original syndicate participation in the
New Orleans stock OF $685., 900, Of which
a,sls,75O had been paid in cash, by whom
he did not know, but he was certain that the
''" ioIh Llle lIlbuIdnCo SOIlEHly Ihto ho
responsibility in connection with 1t.
Mr.. Hughes, counsel for the investigating
committee, wanted to know whether when
the Continental people looked into the
Investment it wasn't regarded as some
What Of doubtful venture.
NO, they had too much Of it, was the
witness reply. The objection was. he
aid, to the volume Of the holdings.
.. Why did the New York Life take any
Mn OF that? A. Well We had made con-
sloerably over ss,OOOOoo by the sale of these
sos shares referred to.
" You mean shares in the Now York Sc
curi'y and Trust Company A. Yes. and
tne argument was presented to us that we
would be suitable parties to take the 81. 500 600
oohds and to take over the loan on this syndi-
cate participation.
v The net result. was that because you
Asa made such an advanta geous sale Of stock
400 realized the profit Of about 5000. 900
On the New York Security and Trust Company
.Iock the parties putting their money into
Wa. thought that you ought to take of the
renas OF the trust company some OF these
1es Orleans Railway bonds and It's particlpa-
uonf A. We said that We would join with
%aers and do 1t. and they reported that We
sue tho proper ones to do II. because we had
mace 20 much money on our sale OF this