New-York tribune., 1907-09-26
SAGE SAFE BOX OPENED
GlunR disks Jackson to Sue Local
Deposit Company.

Albany Sept. Estate Controller Martin H
CIynn announced to-day that he had called on At
torney General Jackson to begin proceedings
AGAINST the Mercantile Safe Deposit Company of
New York City for permitting the safe deposit box
Of the late Russell Sage. containing large amount
Of he Sage securities, to be opened by one Of the
executors of the Sage estate without the consent or
knowledge Of the State Controllers department
Controller Glynn says he has requested the Attor-
new General to enforce the collection of the legal
panalty for the violation of the law Mr Glyna
says
will Of Russell Sage has admitted under oath pc
fore Charles p Dillon, appraiser IN the TansIer d 1
access to Nj. SaCes box in the vaults OF tIte NIeI
death without notification to the state Controller
He explains that the box was held In Mr. sage @
Of the company permitted the access.
The vault contained thousands OF shares or STOCK
veil veil as vast amount Of securities which he held
as collateral on loans made mainly to men deaiins
nbened but the payment OF loans with the atten-
dant substitution of collateral securities was per-
rnitted in that respect business was cohuuCteu
as during the lifetime of Mr.. Sage
The opening of this box took place before Mr.
CiIynn had become State Controller Secton =.
of the transfer law prohibits the opening OF
the safe deposit box of decedent. except IN tlo
nresence Of a representative Of the State Control
Ter This provision Of law is designed to prevent
fraud and insure the state against loss IN l4e
taxation of estates. The representative or tle
state after taking an inventory of the contents OK
the safe deposit box permits transfers to be rade'
so that this is no interference with business IN
which the decedent might have been engaged
Controller GIynn says he has insisted that every
safeguard be employed IN the enforcement OF the
rrovIsions Of the transfer tax law and intends TO
follow ur every reported violation. He has IN
formation he says that there has been laxlty re-
ssrdfnr the opening of safe deposit boxes IN ti-e
mast but tho Sage case is the first in which any
direct evidence has been obtained.
Charles W Osborne. one Of the executors OF t"e
Russell Sage will. said yesterday afternoon:
Under an agreement with the Mercantile SaI
Deposit Company that both MI sage aIu al'S g.
ehould have access the vault. went thsre l'el
his death and took what papers were needed ~
the conduct Of his business. Mr.. sage Wds tl o..
man and he had planned for any CONTINGENCY '!'ft
might arise between the time OF his deatn anu ,-
rrohatiou Of his will During the last years OF ms
life All the notes he used when lending money con-
talned the provision that in the event OF ms oedL
they were to in the physical custody OF InySelI
md J. J. Slocum. II was turtner pi0Vldta lItat t
upon payment either myself or MI SiocuiIt I
authorized to deliver such note anu 'o''e'~~-e'
security the maker. -.
Under that contract and the agreement mace
with tho Mercantile safe Deposit company We
claim We had a perfect right. We had no other
Ia protect the Borrowers many OF whom might
have been seriously embarrassed II II had not peen
possble TO do what did. 80
think that II this cannot be done without russ
and possibly fine u vii be the means or driving
uanv safe deposit companies from New York city
70 Nev Jersey. The clause under which we acted
was added 70 the note after Mr.. Sage had received
good legal advice.