Show value of are sold one day and bought back day later in order to keep within statement new york sept 12 selling in bonds ono flay and buying them bacic the except one a holiday intervening in order to keep within statements made in the new york lite insurance companas report to the superintendent of insurance waa the sensational disclosure made today ai the session of the investigation this tact was drawn from edmund D randolph treasurer of the new york life late in the day alter attorney charles E hughes of counsel to the committee had labored for more than an hour to get a direct answer from mr randolph to a direct question the inquiry dragged through a mass of figures almost the entire day but it was not until near the hour tor ending the session that the sensational feature was brought out earlier in the day mr randolph liander mr hughes a schedule of syndicate and transactions of the new york life for the last ten years this statement was to show and a footnote to the schedule so stated that the company had participated in no syndicate transactions that had been closed out with a loss among these syndicate transactions was the underwriting of the navigation syndicate or international mercantile marine mr hughes drew from the witness that there was an aggregate of the new york lite paid J P mor eanon this joint account mr hughus then took up a sale item dated december of of Intern atlon mercantile marino stock sir randolph replying to mr hughes bald this sale was made to J P morgan co and that a purchase of was made on january 2 1904 from J P morgan co after falling for some time to get a direct answer mr hughea finally asked mr randolph As a matter of tact there was a to the superintendent of insurance on december 31 1903 yes then the sole purpose of the trans actton was that you might be able to tell the superintendent of insurance ou had only of international mercantile marine shares witness hesitated and tried to evade n direct answer but mr hughes repeated the question until finally mr rundolph said yes there was a momentary hush followed by a murmur of suppressed TX cit emont following the navigation syndicate schedule of syndicate transactions under the date of december ap 1904 by which of bonds were sold to 3 I 1 morgan co of london for mr randolph admitted that this was an outright eale and the loss ot was charged off to tho profit and loss account mr hughea left the yount and took up an association known as dyllo with the new boik afo ufo insurance company he got from tha witness the admission that on april 11 1504 a sale ot stock to nylic was made the usefulness of the new york security and arnst company to the new york lite came out when it was testified that while the insurance company was not taking collateral loans it made a practice of lending its money to the trust company which made the collateral loans mr hughea took up the accounts of the money deposited with the new york security and arnts company in 1902 which was called account no 4 it ran from in may and june up to in september and ended at well over in december now said mr hughes why did you reduce the amount deposited with the new york security and trust company in july to and keep it at that oven figure to tho end ot the year your balance at tho beginning ot 1904 was mr randolph professed ignorance the impossibility of remembering every transaction and interrupted again and again mr hughes begged the witness to retrain from general conversation and repeated ahe question mr randolph finally said there was a question at this whether our relations would continue alth the company tho consolidation 01 ie new york security and trust company was taking place at this time now prior to the end of 1901 the trustees of the new york security and trust company held shares that Is a majority of the chares yes well in march 1904 when th toi tal stock ot the company was increased to shares were the he trustees increased no witness was then led through the change of the name of the trust com pany and admitted that three ac with tho old company were and tour opened with the new f one when the money was withdrawn from the new york security and trust company it was deposited with the first national bank tins admission was elicited from the witness atter pressure rn reply as to interest paid by the various banks the insurance company had deposits mr randolph said all of the unab paying 3 per cent except the bank of montreal which paid 2 12 1 2 per cent in the syndicate to ban dlo the new orleans railroad ht ties which transaction was closed out in sir randolph referred to a receivership being appointed which was unforeseen by tho new york uto when the securities were taken up witness also said that some parties in the company had expected to join in handling the securities but had failed to do so but when asked the names refused to give them this closed the inquiry but assemblyman rogers who was in the chair said to the witness before adjourning the sitting some ot the committee are not satisfied with your to give the names of those who participated in the joint profit deals in answer I 1 would say answered mr randolph that it is an entirely confidential matter there was no intimation ti on the part of anybody ot bad balth after adjournment mr hughes said the examination of mr randolph would probably continued tomorrow |