The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-03-22
LIFE INSURANCE SECRETS.
now sOME NEW rORK CRY COMPANIES
arr MN tGED.
The Salaries md Commissions Paid to Omccrs
and Agcnts-Te.timonv from the Giuhr. thr
Mutual, and the New York Life Com p,rics.

The Salaries md Commissions Paid to Omccrs
and Agcn,.-Te.fiuionv from, the GLOBE. ihr
Mutuai, and the New York Life Conn auics
ALBANY March 2f.-Thc Insurance Conn
mittcc met to-day at $3.50 4. NJ. Mr.. Cowdn in
the chair. and resumed the examination of wit
nossos touching salaries and other compcusa-
zion Of officers ot life insurance companies.
Mr.. James NJ. Freeman. Secretary Of the Globe
Company. was recalled. and said that II was the
practice Of his and other life companies 10 allow
their attorneys 10 charge about ono per cent be-
sides the usual fees for all loans made and LEGAL
interest and that the companies did not think it
was usurious ~ do SO. The Finance Committee
of his and many other companies had acted NJ
appraisers. and the loans never exceeded nry
per cent. OF the value Of approved property.
He admitted. however. that his company held
about t7OO.OOO worth OF real estate, bought
in within the last year or two under
foreclosures AT about thrcc-fourths OF the face
of the mortgage interest and legal expenses.
and that his company rented the property so
bought in. being dwellings, for about five or six
per cent Of the mortgages. Mr.. Freeman
mentioned one case where the value Of the
properly. in his opinion, was $4,000; yet
it WIS bought in for $1,000 IIo said
his company. during the present stagnation of
the market. deemed 1t useless 20 try and sell
all of their real estate and therefore held IT, II
was rented. and secured 10y IRE insurance. The
commissions paid by his company on insurance
secured wis 30 and y, for seven years. which
80 nud 10 out Of which local solicitors are paid.
For collections from l to 2 per cont. is paid.
The salaries received 10y him and the
President wrre 81 500 each. with $4,000 "a n
for allowances of two per cent. on the net in
conn. His VA. "a mixed COMPANY part stock
and part mutual. The capital WIS loo upb. IN
which the stockholders draw seven per ccnt..
and n like amount on the guarantee fund. mnl"
al Al 4 ID NNHH "NHH
amount ~ this guarantee fund WIS now
sl0oooo. II may be- increased to $500 900 Tho
Pierce. and Fullerton. Knox 4 Co.. to
whom ihr company pay SALARY. The
special services and receiv" commissions ON
LOANS. The COSTS ot foreclosures bought IN are
paid 10y th" company. The company had not
obtained Judgments on the ,npnds Tor loans
made ON property huught In. Mr.. VIM. Sturgc-.
managing dir'"tor otthr company, g.ts salary
Of 5000 sixty seven thousand dollars would
cover All the salaries Of the company.
IN" examinations during $50 would equal
nbout 1000 policies. or about the amount of new
business. on which was pad about s3l.uuO Tor
losses. and some SURRENDER values. The bal
~ sn,,n n,,n,i,ar .,r,, ~ ri H ,,, ,,,,, ~
promised Tor $4,000. The death "ccurrad
three months at, the policy wa- issued The
fire INSURANCE was in the hands ~ Mr.. Wright.
clerk who r"ceN,s a salary of $1,000.
The Reinsurance il small; not over ilju.Wu.
The reinrurancro all companies when made
ums charged. The Glohe rpimsur,.i IN. ri-k-of
the Merchants Life % the extent Of about
S2nOuuOO. for which his company received a
RS, rye OF Ia per cent. amounting Ia about
tlo0OOo. HIS company paid NO one anything
Tor securing this reinsurance.
Mr. LLOYD, Secretary II The Mutual Life. said
he had only been Secretary for a year The
resident left about three weeks ago aud when
last % ard from was in taliiuInin. and WIS cN
pc'tel back in May nrNt. Mr. McCurdy was
ihe Nin-Pr'si len, and rrin'iial manager Ia
" r-lut with uIt the ffIfO- If the
Tn salary ~ the Solicitor ui the company, MIR.
Palmer was sliOOU Othor Oompui-Atitn III
tn" attorney or attorneys j. charged 20 th, cN-
ponSe account. Witness could not uafn,
t.c counsel or attorneys employed outside II
department. Of which Mr. Palmer was The head.
All legal matters are referred To- the Law De-
tell the amounts. nor to whom paid. of attorney
and counsel fees during lsIG. save that r.prc-
general agents for commissions during 1876
would equal s5OO.Ooo or t6OluOo. out of which
an solicitors and Office and agency expenses
are paid. No commission was allowed on the
small amount Wn'h was voluntarily secured "
NE nome oni,r Al e.lis wgre er~iiid
.neck. VIM VI. Vcrmilic ana Seymour /
in'st"d are ON this 'Nts n-e commtisc TIN
proxy Bu'few ea.l and vote Ia person. These
proxies exist {" lai-" AN Nuni on lrh- 100
annually Proxies ar" MT renewed annually,
but crn'inu, until chang 4.
ac "n Il r Mcariy ia h h. aIson." u Slr
Winston. tIr proper /, r-on to testify a- fn tIi,
names az counsel employed, and the general
Morris Ffankln. Ir.r dent ~ the New York
Lii" lrSurah"" Company. was called, ana oii .
luton ~ % sniurl,- ty report in wr.tiug. -Ali
he wa- now r"ady Pop anewcr all quest ions That
| say that the Pre-i lrut aud .-Pro~iloni eu D
receive salary of f2j.uri. and n bonus of 81. 1jl
! sll,uoO, MAKING to'al. !n-iulng ont II town
| med al examinations. ~ ~ Ouu. other om-
ployecs cntotalof 81 $40 and Is clerk- an
| aggregate OF Sg5.Un. IN" amount puid g.. me
President ami Vice Pres idrnt for 1870 wl- tne
| same as for the ire edus nN" or ~ years.
Trustees get 50 IN gold Tor oach meeting -
/ tended THIS IS the usual custom. IN l''d
/ ~ 900 was paid Ia counsel Among The cnun-
| sci employed wa- Mr. Carpontero Washington.
| All fees on loan. are paid 10y the borrowers
/ -rarrhc. and aommissior- over loyal Interest
M.ssrs. Fullerton Knox 4 Crosby ar" en-
ploycd: also Mr.. Boyer, and some thirty or
loriy Othnr law firms throughout tn. United
It's RISKS. tut none in Now York companies.
Tho trustees are clotri hythc policy holders by
irls0n-noi o,rr thirty ct forty. Til ploV,
los run infinitely and are used by
/ .l" ih" olil RS ani i'uDn', committee. q 90"
I huiin@ al fi.' company louh- are made IN
tn" loHn. .on-id.riil' amount OF morlgag"d
property had h"'n bought in under for" 'lu-ur'.
~ there wore mo- bidders oyrr thc mortgage.
OF the four or five Thousand lni-ei and -urr"n-
/ d'lrI puN'ir- in l-It tnr.' 90 four Thousand
were forfeited ami marked or. About l5p wrr'
/ of th, ~, terminated poll lo- WIS pruhai ~ five
years. We have agents in tn" South buying AZ
as our Noah1rn rSbs. We bay an
! Is hound 10 pay anything on lnIsnd policy. II
i purely matter 9" hra", WIN al r1pl9ni-.
idcnt 1T tho New York lf' could SPEAK no.r
IN drthii ~ iN inc general lri lr' on inns afl