New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-22
First Official Valuation of
Late FinanCier'S Property
Made Public in Action
Brought by State.
PERSONALITY, S64,411,2l8
Legal Proceedings, Instituted
Because Strong Box Was
opened Without Controllers
Consent, Shows Method OF
Checking Big Loans.

The first official figures that show the
or,ount Of the estate left by Russell
sage the fnancier. who died on July
90 1905 are contained in papers on
a,e in the County Clerks office in
o,,,, brought by the State of New York
against the Mercantile Safe Deposit
Company. in whose vault Mr.. sage
had deposited many million dollars
worth of securities.
Mr. Sage left gross personal estate
valued at S64. .4l1.21S. His real estate
was appraised at S1,945,JH Mrs
Margaret Olivia Sage. the widow re-
,eived S63. .503. 800. on which the estate
Maid a tax of S635,03s. The rest Of the
estate went TO twentyeight nephews'
n;eees. grandnephews and grandnieces
of Mfr. Sage. each receiving S23,OW.
The fax on each Of these bequests was
$3.50
The suit in the Supreme Court
brought to light papers whose contents
were never given publicity. and whlch
Indicate the manner in which some or
the business affairs Of the financier
were conducted. For instance. in Mr..
sage's strongbox at the Mercantile
Safe Deposit Company when he died
there were securities valued at about
S3SOOO.cOO. representing collateral de-
posited with the banker for loans
aggregating S30,OOOOO0. There was no
list in Mr.. Sages Office to show the
exact nature of these collateral secu-
rites Mr.. Sage, the records show lent
money on a 20 per cent margin.
Didn't Know Law Was Violated.
The suit brought by the State OF
New York against the safe deposit
company -5 10 collect penalty or
$1,000 because it was alleged the de-
fendant had permitted one Of the ex-
ecutors 10 take from the vaults secu-
rites belonging 10 the estate without
notice being given to the State Con-
troller, as required by law. Justice
Brady dismissed the action on Satur-
day. holding that the Mercantile Safe
Deposit Company was not liable, as the
defendant had no reason to believe that
the law was being violated.
The papers on file now show that
Surrogate Thomas threatened 10 com
nit the secretary of the Sage estate.
Charles II. Osborne, for contempt OF
court because of his refusal 10 divulge
before the transfer tax appraiser,
Charles p. Dillon, certain information
which was sought concerning the col
lateral held by Mr.. Sage on loans.
The testimony Of Mr.. Osborne in the
tax proceeding showed that the secu-
rites placed in the safe deposit vault
had never been checked up from any
list held by Mr.. Sage. Mr.. o. )orne,
who had been in the employ of Mr..
Sage for thirty years. had charge Of
the time and call loans. The box was
taken in the name Of Mr.. Sage. All
securities deposited for loans were in
blank. According to the testimony Mr.
Sage never went to the vault ard Mr
Osborne was the only person who had
knowledge Of what it contained. The
only record in the office OF Mr.. Sage
was the loan ticket. saying that a loan
Of certain amount had been made, for
which certain securities had been given
as collateral.
At the death Of Mr.. Sage it was i'm
possible for any one except Mr. Osborne
10 tell what securities were in the safe
deposit vault. The executor refused TO
produce the loan slips, saying that the
relations between. Mr.. Sage and the
persons who borrowed from him were
OF confidential character. He said he
took the box from the vault to the
Continued on third page, seventh column.