The Washington times., 1905-11-28
Treasurer of New York
Life Put on Rack
by Hughes.
LOANED TO AVOID TAX
Company Never Received
Compensation for This
Use Of Securities.

NEW YORK, Nov 2s.-Edmund D.
Randolph. treasurer OF the New York
Life. was the first witness called 70 the
stand in the insurance investigation to-
day
Mr. Hughes first questioned him IN re
gard to the check for $40. .1s3. 90 received
By the New York Life from Kidder. Pee-
body 6 Co, of Boston, TO pay tic
profits Of the Mexican Central railway
deal which George Perkins testified was
made for the Nylic ftITiSi. although tiie
New York Life advanced $3.50, 900 with
ssaich the railway bonds were taken Up.
Mr. Randolph sent the check for S40,-
1885 to Mr.. Perkins with note saying
he did so under President MeCaITs or
ders. He said Mr.. Mccall was cognizant
OF the purpose Of the deal. and has in
structed him how TO deal with the check.
as the note to Mr.. Perkins expressed.
He insisted the transaction was IN no
way New York Life deal The fact was
brought out that the bonds when re-
as a purchase. Mr. Randolph stated
however, that IN many instances bonds
We're entered in the purchase book when
they were not in fact purchases.
Remembered Withdrawal of Stock.
ar. Hughes then questioned Mr.. Ran
dolph in regard TO the testimony oE
Cashier Banta to the effect that New
York city stock to the value OF about
$so10Oo had been taken from the vault
several years ago by Mr.. Randolph and
a check for about the same amount OF
the Central National Bank substituted
Mr. Randolph said he remembered this
transaction ia a general way. after hia
memory had been refreshed BY the read
ing Of Mr. Banta's testimony.
The date. he said was January 3 to
3. 1900 That was before he was treas
urer Of the company. He could not re-
member the purpose Of taking the stock
from the vault, or what was done with
them lie said he could only give a
conjecture as 10 the purpose Of this &C
ton. Tho dates We're significant. how
ever. he admitted. as II was about tax
time.
Arranged for Clients.
ar Hughes suggested that this stock
had been taken from the vault and loan
ed 70 some one so that they could
be returned as non-taxable securities.
Mr.. Randolph said that this was his
conjecture. It had been the custom. In
some Instances. OF the New York Life.
he said. 10 loan stocks In this way.
Since he was treasurer he had not per-
mitted It.
The matter in the instance referred 70
was arranged, he said. for clients OF
theirs The company. so far as he
could discover had not received any
compensation for this loan OF stocks
\ transaction where bonds were loaned
10 the First National Bank in which 10
secure Government deposits in order Ia
relieve financial stress which once pre-
vailed, was mentioned
To Relieve Strain.
IN order 10 relieve the strain. Mr. Ran
dolph said that Secretary Shaw had pro-
posed 10 accept gtlt-edged securities az
the basis against which 10 make Gov
ernment deposits. instead of insisting on
Government bonds, as had always been
the custom. Only excellent securities
were accepted The New York Life had
loaned 10 the First National Bank as
trustee. New York city bonds and Mas
sachusetts State bonds on which thev
secured Government deposits.
4 general appeal was made M Ran
oaolph said, TO secure bonds oA which
Secretary Shaw would make deposits.
ln this way the financial strain vas re-
neVed. The New York Life received IL
per cent interest in payment for the
loan. ana The profits amounted to $50 OOO.
". S. Fanshawe Called.
Mr.. Randolph was then excused and
" 8. Fanshawe. Of the banking house
Of ". s. Fanshawe & Co, was called
70 the stand He described himself 40
3 dealer in Investment securities for
forty years "On and on"
Mr.. Hughes questioned Mr.. Fansha we
IN regard 70 deal arranged between
himself and George V Perkins. where
BY he purchased s.. .250. 900 OF New or
leans traction bonds at 70. This was at
the close OF last year. IT was brought
out that 100000 Of these bonds came
from the New York Lire, while the Ny
lie fund Of which Perkins is trustee
furnished $3.50 coo
An agreement with Mr.. Perkins. Mr.