The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-19
GRAND JURY AFTER n. Y. LIFE.
PRETENDED SALE OF STOCKS UN-
DER INVESTIGATION.

Inquiry 10 Last several Days and tndict-
ments for Third Degree Forgery May
Result Treasurer Randolph and Book
keeper VINO Gave Note Examined.
The Grand Jury took up yesterday the
investigation Of the management OF the
New York Life Insurance Company and
devoted the whole day, morning and after
noon, to hearing the testimony Of two
witnesses. Edmund B. Randolph, treasurer
Of the company, and NJ. M. Madison, a
~bookkeeper In the tressurer's department.
District Attorney Jerome examined the
witnesses.
The investigation will probably 60 over
into next week. Anumber OF the employees
of the New York Life and stacks Of books
of the company have been ~subpoenaed.
George W Perkins has not been subp1naed,
but il he Is wanted he will be notified.
Judge Andy Hamilton may be a witness.
All the transactions that were brought
out by the Armstrong committee will be
laid before the Grand Jury. In addition
the investigation Of the affairs Of the COM
pany, which has been going on quietly
under the direction OF Assistant District
Attorney Kresel for some time, brought to
light certain things with which the Grand
Jury will be acquainted.
II was said yesterday that in respect to
certain things that had been discovered
indictments might be expected. On what
particular transactions indictments would
be based could not be learned, but il was
said that il indictments were filed they
would probably be for forgery in the third
degree, as il was not expected that any
indictments for larceny would be filed.
Yesterdays investigation covered the
stock dealings between the New York Life
| and the New York Security and Trust Com
pany, a subsidiary, after the Prussian Gov
| had barred the company from
doing business because it invested in stocks.
IL was in 1897 that the Prussian Government
h out the New York Life, but two years
later it informed ths company that IL it got
! rid of it's stock holding, and its report to the
State Superintendent of Insurance should
show that to be the fac, the company could
dc business again.
The company agreed to the proposition.
II had valuable blocks Of stock which it
could not dump on the market except at a
loss. The stock was sent to the New York
Security and Trust Company, and on the
books OF the New York Life it was entered as
a sale. As a matter Of fact. according to
what was brought out at the Armstrong
investigation, the New York Security
company got Mattison and a negro en-
pIoyed by the New York Life to give notes
for the supposed purchase Of the stock
which amounted to $3.50, 900, and the
security company held the stock as col
lateral. On the books of the security com
pany the stock was down as a loan. ana on
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as a sale. Later the security company sold
a block Of the stock at a profit and the rest
of il was sold at a loss.
A witness who will be examined to-day
in regard to his transaction rs Alexander
Webb, Jr., who was secretary OF the trust
company. The examination Of Mr.. Ran
dolph and Mattison will also be continued
Another transaction that Mr.. Jerome will
10 into concerns the 81 ,OOO, 900 Mr.. Perkins
borrowed from the New York Life, with
which he bought 81 ,OOO.O 600 worth Of bonds
of the Mexican Central Railroad. The
profits we're SAC, 900, which he explained he
turned over to the Nylic, the orga nization Of
agents of the company, after paying back
the 81 900, 900 to the company. Mr.. Perkins
CATION that he considered the 81 700 900 Q
loan TO the Nylic.
II ia expected also that the GrBnd Jury
will make an extended investigation OF the
The transfer Of $500 600 worth Of Inter
rational Meycantile Marine bonds 70 J
Pierpont Morgan q Co, which were late
transferred back to the New York Life
after a small sum had been deducted fol
interest, will also be taken up by the Grant
Jnrv II is the contention that the bond
were simply transferred by the New Yorl
life so that they wouldn't appear on a com
pany's report TO the superintendent o.
Insurance.