New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-23
LIFE INSURANCE AFFAIRS.

SALARIES AND EXPENSES OF COMPANIES.
EXAMINATION BEFORE THE ASSEMBLY COMMITTEE
OF THE PRESIDENT OF THE KNICKERBoCKER LIFE
INSURANCE CONTAMINATION OF DOING BUsi-
NEss-INvEsTMENT OF ASSETS.
Albany. March 22.-The Special Insurance
Committee Of the Assembly met this morning. but owing
to the absence Of expected witnesses Adjourned tli
afternoon The committee reassembled al 35op H. W
hear the testimony of officers OF life insurance companies
relative to salaries received by them Henry Johnson
OF counsel for the Knckerbocker Company stated that
President Nichols OF the Knickcrbocker Lie was ahAouS
TO get home on account Of sickness in his family.
7. A. Nichols, President of the Knickerbocker Lie
Insurance Company, sworn and testified as ioho"s'
Has been president since the latter part OF March, 1874
was ycepresdent for 10 months previous and an agent
previous to that the president secretary ana actuy
are officers who received salaries last year. also ho
counsel and medical examiners the presidents salary
vas $4,000: that was all he received the salary mas
been fixed at that ever since have been president
have never received dollar In any respect vi III any wa!
from the company except my salary; not doiaf "a'
ever voted to me; we have no vcc-presluehti '"o
secrctary's salary is $4,000; to the Dest Oh my
knowledge do not think he received any money
or thing additional while 1 vice-president; since
I have been president 1 know he has not;
the octuarys salary is $1,000; that has been the
salary since have been presidents ne mas not receNeo
ANYTHING additionally the counsel, Mr. Johnson mas re-
ceved 81 per annum; he gives US legal ADVICE anu
counsel he also acts attorneys he gives us his ser
vices except in litigation for $1,000; cannot tell no"
many cases of litigation we have had in two years; per
hans 10 or co. there have been trials on perhaps nan
dozen; our counsel fees in the year 1870 otner tah
Gounscls salary. have been between $4,000 ana @|ooo
We employ other counsel and their pay N ihcudeu III
this Dr. Surley medical examiner ana he receives
So 800 per year: when lie out OF the once 10 e
an examination he receives 10 for each time last year
this amounted to $3.50; in good times 1t would amount
to double that the price paid outside oil the CITY uc
nends on the price fixed by medical societies some
times they compel us to pay S5 during 1876 the med-
cal examination expenses were perhaps S3ooo outsuc
of the salary; 1 cannot give the exact figures
our report shows that in the aggregate we mad
n managing agent at $1,000; his duties were
TO look after the agents; paid him additional as
expenses his expenses during 1876 were ABOUT @ooo o
other sum was allowed him or to any one Tor hre; We
had 10 clerks; the chief clerk has $1,000; the lowest
salary paid clerk about $50 per month; the aEHre
cate paid the 10 clerks between $4,000 ana
10000; none Of them received ANYTHING additional eH-
cent some OF them may have secured a new policy ana
we allowed them percentage that amounted to about
SiOO last year paid also about S@oo lor ezra Moh
10 clerks; that is all OF our expenses; tue iusahc
Department examined our company only once ana lhat
was in 1869 or 1870. A., ,...... .,,
az who have 500 additional Insurance
10 the original pOlicy there are from iZOV TO l2oo
holders do not vote hold the largest amount Of stock
company have about & ,e fS MI s Kin
with about $4,000; the next Is Mr.. John anderson,
Min TIGc e or P oe for proxies" have $500
insurance on my life; one policy So' ~ so OF ooo
that was for $500; was an agent then; nave one
for ~ 900 10 or IL years old, and $4,000 one 10 years
old: the remaining 5000 obtained some nVe years
ago. paid my premiums in cash the secretary has So
900 taken ont three years lie paid in cash in The
usual way; all the directors, except one or wo are IN
amount is IS oOO all paid in the sual way in 1876 our
about S7OOOOoO we nave aoont SIX aGents
NaNyN NJ
- 10 90 IN '1 sz6 think. was 81 600; in 1873 Vas
mink, g, 900; entire assets in 1876 were about
81 OO0, 900; mortgage about F2OOOOoo can say eA
actiy; real estate about 81 100000; cash, Sl0600o;
Goyc,nmen bonds, $500 900; loans on call. $4,000;
the aggregate OF other stocks and bonds cannot rcco
Mr. Cowdm Of the committee did not think it possible
to rely statements no business man can carry
We bought under foreclosure. the building we occupy
for $l62.5OO We own some estate on Flity secoh9si
nine full lots Fy-secOnd-St there are three frame
buildings the los that property IL valued at about
$4,000; we have one or two houses IN New New, OH AT
Demonico-place at One-hunired-ani-siHtyh we
mortgages the two houses were about S5OOo each;
bd ne property on at tla, ana tnf eS.S WE tna
ii worth that do not recall any othcr IN New OH we
own quite number Of brown-Stonc houses IN BROOKLYN;
they are worth about Si0OOOO; all were purchased on
foreclosure mortgages tine face Of the mortgages was
perhaps 37JOo0; believe the entire properly y worth
what it cost our real estate excluding our buildings
about 80 per cent we also have real estate III
NewJersey that was secured al 50 on the foreclosure Oh
mortgages; loaned on about 40 or 90 per cent OF
the appraised value in all these cases OF foreclosure
the the buildings was in about ifty com
London; we had a rule what company to 70 IN
we always III the best; have some insurance III
Philadelphia; never indicated 10 any party what COM
DAILY should be scectt d. nor did any one ever 10 NY
knowledge receive any for selecting com any
when We pay insurance We receive 10 per cent ana
that goes INTO treasury Of the company the borrower
pays The attorney when make loan; do not know
nuch about this part of the business have not made
over six or eight loans have been president; never
any collision between the Insurance appraisers
and the borrowers loans i'll NcwJcrScy are not as gOOd
as IN this State; think would bG advisable 10 llllt
OF companies To property III ns State
IL gisialurc; do not think the supervision Oh
loaned III be well done % miles away
from Ncw-N nearer home have never received
cent as a nduccmeut to loan any more, nor has any
member of my family; we keep i'll bank always about
January we had actually hand the amount of cash
returned; We never loaned to nor borrowed nom any
otncr company have call loans amounting To abOst
100000; about $1,000 OF This is to members Of our own
company the stocks of the Continental, BrOOklyn
Muutauk Clinton, and Jefferson companies were Ken
as collateral for call loans; gave $lO,OOO Sc
curity az president; | do not know Of any Of the
members of our company being connected with any
other lie insurance company; | am "a director III the
OF the directors Also think. in the Brewers and
MaIisteis Company; there has been from 100000 To
$500 the collateral securities Tor loans
directors interested Ill the
bank in which We do business.
The committee then adjourned till tomorrow at $50
q. III. Tor Executive session.
INSURANCE IN THE ASSEMBLY.
DEBATE on TIE COMMITTEES INSURANCE BILL IN
EVENING SESsION-LOANS ON REAL ESTATE