The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-09-26

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teams made mainly 10 msn dealing n Wall
Street Not u0lv we me det-s.'t box
or-nssi tu' Tho psvm.ni ~ loao- Ni,h
the attendant substitution ~ colist~ral
-s--uri,ie- vas p~rrnttsi. aud IN thai -
-peCt busin-~s was conduc'eh No during
'hr iifr'ir,e ~ Nv ssge The opening
Of th,s hnx look plac. before Nr Ulvun
hal l..cons~ sfsse Comp,rollsr
S~c,ion III - the transfer tas Isw pro-
hihitz the op~ninG 20 the safe deposit nor
~ . decedsn except In The presence % q
representative % the state Comptroller
This provision % Law 10 designed 20 pre-
vent fraud and TO insure the state against
loss in the taxation u cssstes. The repre-
sentative ~ the STATE. after taking en- IN
ventory ~ the contents Of the safe deposit
box. permits traasfers 10 be made 90 thas
there IL no interfer~nce With business in
which the deceden, might have been en-
gagged.
Chas! es W Osborne. one Of the executors
Of the vii Of Russell Sage. has admitted to
charles p. Dillon. appraiser in the transfer
tar bur~su ~ the State Comptrolher's de-
partment. that he had accrss TO Sase's
box in the vaults Of the Mercantile Safe
Deposit Company after Mr.. Saees death
without notification to tho state Comp
tro,ler He explains that the box was held
in MIR. Sage's and his own name Jointly
and that the authorities u the company
permitted the scoess.
Comptroller Giynn in his letter Ia the
Attorney General says:
shortly after the death Of Russell Sage
the Mercantile Safe Deposit Company OF
New York delivered TO Charles ". Osborne.
one Of the executors Of his last will and
testament. certain securities and other
assets belonging TO the above decedent,
which were contained IN u safe de-
posit box in their vaults, without hav-
ing given the Comptroller notice Of such
Intended delivery or having secured his
consent thereto. Such action on the part
Of said company was in direct violation Of
the provisions Of section ,27 OF the transfer
YAK law and subjected il to a penalty Of
$1,000, for the recovery Of which l believe
an action should be brought
Charles W. Osborne asid yesterday:
while the violation OF tho law, IL any.
was committed by tho safe dsposit com-
pany. and thsy will be sued for the penalty.
there was OF my part no intention OF vio-
lating the Law. nor was there. l believe, on
theirs. In 1909 Mr.. Sage had some $50, ooo,-
oO in loans out in the Street. Tit question
came up what should be done about these
loans. which were constantly maturing. in
case Of Mr.. Sage's death. took care Of
all these loans. After some dehberstion
Il was decided TO keep all the notes and col
lateral relating to those loans In a separate
box In the Mercantile Safe Deposit Com
pany, taken out in the joint name Of Mr.,
Sage and myself, 30 that I could nave ac-
cess to II in case Of MIR. Saee's death and
transact all the loan business just a. in his
life. An extra paragraph was added to all
the notes NJ that time providing for the
payment Of all loans to J. J. Slocum and
myseH in case OF Mr.. Sage's death and our
transaction Of the business just ~ usual.
This was, Of course. perfectly legal,
But when the stock transfer Law vas passed
Mr.. Sage waa In some doubt - to whether
thess -arranGements smn could be kept up.
president OF tho Mercantile Safe Deposit
Company. who Ii now dead. Mr.. Ross
referred 10 the passage In tho Law which
bore on opening the boz 10 case or MIR.
Sage's death and said that he knew about.
that. hut II would be all right and We could
have access to the box just a. arranged be-
fore. He said that the Law had not been
tested, that the box being taken In the joint
name Of MIR. Sage and myself made IL very
doubtful whether our case ~ , : be con- s%d
minated that he would just as soon test
it in this case ~ not
Accordingly. when Mr.. Sage died on July
~, 1909, I had to carry on the loan business.
September went ahead under my arrange
ment with Mr.. Sageand under the paragraph
in the notes. and, the safe Deposit Company
permitting, opened tho box from time 10
time az loans fell due or collateral had to
be renewed or returned.
the State has besn furnished with full
particulars a. to Mr.. .6aSe's estate at the
time Of his death. including Q detailed list
Of these loans md Of the collateral against
them. Tho olfenos complained OF 10 q
purely technical one. and neither I nor any
other person connected with MIR. Sage's
estate is It fault