The Montgomery advertiser., 1905-11-29
DEPOSITION
 OF MIR. SQUIRE Tell of Operations Of Syndicate. ,BBERY OF EQUITABLE Stocks Sold to Society at
 Great Advance. Randolph Admits Taking s700,0OO of City Stock From Vaults and
 Placing Cheek Therefor
 Peculiar Form of Policy.

1 New York, Nov. 2s.--Just before the | insurance Investigating committee ad- | journed today, Charles E. Hughes. coun- | sel for the committee, produced u pol | icy written by the Mutual Reserve Life 1 Insurance Company upon the life of an unknown man, which policy stipulated | upon the first page that the insured should pay fixed and stated premium | subject to other benefits and require- l ments elsewhere stated On page of the policy Mir. Hughes read clause that the Executive Committee of the company could require the holder of the | policy to pay any multiple of the amount of the premium stated on the first page which the committee saw fit :. George J. Eldridge, Vice-President and | actuary of the company, to whom MT. Hughes read the policy, said that the number of such policies issued was small.
 Previously Edmund D. Randolph, Treasurer of the New York Life Insur- ance Company, had said that 1t was true that he removed $76O,000 worth of New York city stock from the vaults of the company and put a check of the Central National Bank for that amount in the place of 1t January 5, 1901. MT Randolph understood that the bank wanted the stock for clients, one of which was the Merchants Trust Com pany. He promised to give the commit tee later the names of any officers of the New York Life then in the Mer- chants Trust Company.
 Deposition of Squire.
 The deposition of George H. Squire, Financial Manager of the Equitable Life Assurance Company, in which he described some of the operations of the syndicates which included officers of that society was read to the committee. Mir. Squire said that in 1901 the Equit- able Society bought 1000 shares of the stock of the Lawyers Title Insurance Company and reside 1,500 shares to sew eral of it's officers and directors at the purchase price-174. Some of the Equitable men sold this stock later, said MT. Squire. and subsequently, large blocks of the stock were sold back to the Equitable Society at s310 and $350 by the firm of Williamson & Squire.
 That firm might have bought ft fsonr the officers of the Equitable Society, Mir. Squire said, but he did not know. Mir. Hughes also brought out that profit of $22,000 had been paid to Mir. Squire from the sale of stocks of the Lawyers Mortgage Company to the Equitable So- ciety and that MT. Squire had divided the profits from an unknown operation aggregating $1S.960 among four officers
  Alexander, James H. Hyde. Thomas D. Jordan and W. H. Mcintyre.
 The fact that the New York Security and Trust Company paid s1S,00O to An drew Hamilton, the legislative agent. out of moneys belonging to the New York Life Insurance Company, was also brought out today by MT. Hughes
 :..- Testimony of Fanshawe.
 W. s. Fanshawe, a dealer In invest ment securities told the company that in 1904 he bought New Orleans Trac- ton bonds of face value of $1.250, 900 from the New York Life Insurance Company and George W. Perkins, trus- tee of the Nylic fund. giving them his checks amounting to $397,50O in pay ment and then borrowed the ss37, 500 from the New York Life Insurance Company using the bonds as collateral. He then sold the bonds. giving the New York Life Company 95 per cent. of the profits and keeping per cent.
 Edmond D. Randolph. treasurer of the New York Life Insurance Company, mas the first witness before insurance Investigating committee today Charles E. Hughes counsel for the committee asked if he had been ordered by Presi- dent John A. Mccall to turn $4O.193 check fdom Kidder. Peabody and Com pany of Boston over to George W. Per kins. vice president of the New York
 
 dolph said he was so ordered by Presi- dent Mccall.
 Mir. Randolph said the loan of $930,- 900, to Kidder. Peabody and Company was not acted upon by the finance com mittee of the New York Life Insur- ance Company because it was not cUs- tomary to report loans to that commit tee. Asked why he did not cash the check for the New York Life Insurance Company. Randolph said it did not be- long on the records of the New York Life. The companys share was 5 per cent interest on the Mexican Central bonds.
 And to furnish all the money" said MT. Hughes.
 Removal of City Stock.
 Asked about the removal of $7O0, ,0O0 worth of New York City stock from the vaults of the New York Life Insur- ance Company for a few days and the substitution there of check of the Ma tionaI bank for $7OO. 900 which was told yesterday by Cashier Theodore F. Banta of the New York Life, MT. Randolph said the statement was correct in the main He did remove the stock as Mr. Banta testified. he said. but at that time he was not the treasurer of the company, but chairman of the execu- tive committee. He probably acted under instructions from MT. Gibbs then treasurer. now dead.
 Who got the stock?" asked Mir. Hughes.
 ''I do not remember. Only three men then had access to the vaults he said. The stock was absent from January to January 9. He thought there were other similar instances. He agreed l with MT. Hughes in the conjecture that | it was done to enable some one to put l them in as non-taxable securities.
 MT. Randolph said he understood the l Central Bank acted for the Merchants | Trust Company in the transaction, and possibly for others. The lending of 1 securities for such purpose was re- pugnant to him. he said, and he would | not do 1t. There was one other case | where bonds were loaned, and it was good business and citizenship. but they | were non-taxable bonds. It was a l time of financial stress when the Sec l retary of the Treasury demanded high | class securities; the New York Life | deposited Massachusetts and New York l bonds with the Government for the l First National Bank of this city and | received for that over $60.000, besides 1 
 Williem r. Fanshawe, member of | 4E. haulxfna firm nf TIarvaV EfaIr e '