The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-09-22
Reveals That Financier Kept No
Books for $6l,629,137
Of Business.
HELD BAD STOCKS TOO
Widow Got $63,5O3, ,8OO--28
Relatives Received $685..
600 Each.

suit brought by AttOrney-teneri CdT-
modiy to recover $1,000 from the Mercan-
tile Trust Company as a penalty for per-
ritting the removal of the securities In
the safe deposit box OF Russell Sage the
day after his death without a representa-
tive Of the State Comptroller being
present and papers on appeal filed by the
Attorney General in the County Clerks
ONCE has brought to light the transfer
tax appraisal of Mr.. Sages estate.
The report has never become public.
although the figures presented and the
testimony taken disclose many interesting
features
The most surprising feature Of the tes-
timony taken by the appraiser was the
statement by Charles w. Osborne. who
had sole charge of Mr.. Sage's business
for ten years before his death and who
Is one Of the executors. that although
Mr.. Sage owned bonds appraised at
$14,2Os,Sl3, stock worth $14.425.52+ and
held collateral for loans worth about
sac, ,ooO, 900. there were no books in his
office in which appeared list Of the in
dividual securities owned by Mr. Sage or
the stocks and bonds he held as collateral
on time and call loans.
The papers also disclose the fact that
Mr.. Osborne refused to testify concern
ing loans Of S33.O0O,000 due to Mr.. sage
at the time Of his death from many of
the leading Stock Exchange and banking
houses in Wall Street on the ground that
Mr.. Sage's relations with the borrowers
were confidential and the witness had no
right to disclose their affairs.
The contentious of MIR. Osborne on
this point were set forth In a petition
by Thomas B Casey. attorney for the
State Comptroller. TO the late Surrogate
Thomas. asking that MIR. Osborne be
punished for contempt OF court for re-
fusing to testify concerning the loans
after he had been directed TO do no by
Charles p. Dillon. the transfer tax ap-
praiser
Mr. Casey said that all the Sage Sc
curities. both the collateral on loans ana
the stocks and bonds owned by MIR. Sage.
were In = box In the Mercantile SAFE
Deposit Company's vaults. which was
rented IN the names Of Mr. Sage and
M. Osborne Jointly.
Never Checked Up Securities.
Mr.. Osborne had testified that he had
rever checked up the securities he found
IN the box With any list in MIR. Sage's
Office. because he had no such list. The
on,y record of the securities held as col
lateral consisted of loan tickets, made
cut when th. loan was obtained. on which
the collateral for the loan was described.
II was to compel Mr. Osborne to produce
these loan tickets that the contempt pro-
ceedings were brought.
Mr. Osborns ,.s,itie, that he had en-.
tire charge Of making loans and passing
M tho collateral, and thar when the col
lateral was deposited IL was all assigned
a., h,.rL so thu, thar. wa. M w.v NJ
NJ. H.. ,,, .ao,,r,,i.. ,,.,,,.,,..s ,o,
- - -, ,,
"-. 'o"' - ~
.,.,.. , H.. 80.
-. 49,, ,,,,.,a. T., ~. 80. .,.n..,,
's-s 49,. '...
% the ,ars dsnos,t y.u,, and didn,, Lrow
,,,ha, mos in !, Mr O.horna .atd
When ..Lsd 4, hs ,ot lsvaI ad,.,.. n.-
,ore h. rsmovod tho .sc,w,,is. ,,,,ho,,
the knowledge NJ the state Comm, roller
Mr. Oshorp. oid no cops,,lt.d n. I.rcs,
Nico,,
~. didr,, FOL, ,,e thar. ,.,.
attached IN II h,,t ,d,,,..d ,,, ,h,, h.s
,ha ,,,h, GA ,h., ., No. 49,
a. ,h. N.r,a,,;,. So. D.nn,;, C..,,
and demand acc.ss in ord.r ,h,, : no,,,d
naLa suhs,i,u,ions 10 IN. ,o,,,,ar., .nd
.aao,,. na,.,,e,,,s -, ,o..s ~" s,''"u "' ~,
r,ssd ma % ,ha,.I cor,d "o,,,mn. oh ,ho h,'s; "
r.s. I ,oot .u.v N, s.cur,,ia. ou,,.a
nv Mr sac ird,v,du.,,v ="
Ordered to Produce slips.
Irpon an extract OF this Testimony prs.
ssnted tn surrogate Thomas he signed an
order directing MIR Osborne IN prod,,ce al,
the loan slips before the APPRAISER. The
order stated that unless the loan sims
we're produced n warrant would he issued
for Mr.. Osbornes arrest
pursuant TO this order Mr.. Osborpe pro.
duced all the loan slips. showing thai more
than afty Stock Exchange banking Arms
lad loans from Mr.. sage at the time Of
n,. .o.,h IN amour,. ran.,nr IRON, .,oo :
"oo ~ ssoo ooo among them the .,ror.ss,
w. T.. w.m So, No ,o.n =, -"
.ham .koo ooo was made but manv Arms
,ns" 'u"v,vs' os,s -, ,asns a aanrooa,,na @ =, 90"
,"" n"n =, son'. oa.as ,,a,, -,
.ov, .o noo n"n so",, a. ,,,..a s,,ns 80
produced .ne con.e'np' a n"ns pro'ee''"sS "sa'"S'