The Birmingham age-herald., 1905-09-09

mittee, Hot Springs was chosen. 1 The matter of Vice President Peters res | ignation was considered tonight, and al- though the resolution was conducted in secret session, it Is understood that MT. Peters will voluntarily resign in few days, and his successor will be named | by President Jordan in whose hands the | question was left for adjustment. It was reported tonight that the association wik | probably deliver it's address to the AmeN- | can people tomorrow. It will deal prin- | cipally with existing conditions in the textile world.
 interested in the International mercan- tile bond issue to the extent of $75, 900. He | declared that he had never been a mem- Der of a syndicate which sold securities to the New York Life and several sym dicates of which the New York Life in- | surance was interested
 Treasurer is Recalled.
 MT. Randolph. treasurer of the New ! York Life, being recalled, told the coun- sel for the committee that the modern underwriting syndicate was so operated that the members of 1t did not know whether they received their share of the 1 profits, and that the insurance companies | participating in the syndicate were so in- sured against loss, though some bank | ing houses always demand and secure a written agreement when participating in a syndicate. Mir Randolph was asked if he did not think the New York Life was strong enough to make it's own terms with banking houses, rather than wait their favor.
 ''I have always thought it would be most impolitio to invade the field of banking houses" he replied. If he demanded an itemized statement of the managers of a syndicate, he said that the company would probably be left out of all future | syndicates conducted by the same man. ager. It would show feeling of dis trust and no set of men would continue to do business of that sort with men who | had distrusted them.
 MT Randolph said that the members of the syndicate were under agreement not to offer bonds in which they were in- terested at such price as to break the market Moreover, if they withdrew the profits of the syndicate. If the man. agement secures all the holdings of the syndicate, the members get a profit with out paying a cent; if it does not, the members get the bonds at the bottom price. The manager of the syndicate re- ceives one-half of 1 per cent for the trouble of management.
 Docs the New York Life hold stock in any trust company
 "We do not: did prior to its change of policy in 1Ss9." said MT. Randolph.
 The bylaws adopted in 1899 with refer. ence to the investments of the New York Life were then read, and counsel pro ceeded to go into the matter of the 500t New York Security and Trust company's shares which were held by the company at that date. and had to be disposed of.
 Very Interesting Problem.
 "It was a very interesting problem, said MT. Randolph. "If 1t was publicly known we had to get rid of them, there might be an attempt to jump on us purchasing syndicate was formed and paid $500 per share. The trustees named under the agreement were Charles s Fairchild, John A. Mccall and George w. Perkins,"
 "Yes, there was a separate agreement between the trustees and the New York Life" he said "The control of the trust company still practically remains with the New York Life through the trustees who are officers of the New York Life"
 MT. Randolph also said In reply tc questions that the stock of the New York Security and Trust company had been increased to s3,OOo,o 900 to acquire the stock of the Continental Trust company of which 1t became the owner
 The New York Security and Trust com pany changed it's name to the New York Trust company. and Mir. Randolph said | he was a director of the company.
 In 1900 the New York Life had three accounts with the New York Trust com pany one which ran from S2,50O,o0 tc s3,O00000 was the ordinary account. Two others were for annujties and such mat ters fourth amounted to nearly s11,- 00O0O0 In 1901.
 Provides Company With Deposits.
 MT. Randolph said that the object oi the New York Life in keeping much larger sums with the New York Trust com pany at an interest of 11a per cent less than the current rate, was to provide the New York Trust company with de. posits against which 1t could make loans During the first three months of 1902 the New York Life Insurance company kept s100OO.0 .0O0 continually on deposit with the New York Trust company Mir. Randolph said in explanation that this was due tC the fact that large blocks of preferred stock of the Chicago and Northwestern railroad. and of Chicago, Milwaukee and St. Paul had to be removed from the assets of the life insurance company tC satisfy the Prussian government. They were taken from the insurance company by the New York Trust company.
 Later the transaction at the wish oi the Trust company was changed into a collateral loan from the Trust company to the life insurance company. Ther collateral notes were signed by two em- ployes of the company. one of whom named Marshall, was a messenger of the company at $500 year It was custo- mary in banks for employees to sign notes for their banks and notes involving mil lions were often made by clerks anc messengers MT. Randolph said he sup posed 1t was to prevent the names of the principals from appearing.
 Mir Randolph explained other transac- tions arising from the sale of securities necessitated by the provisions of the in. surance law of Prussia. In another trans