New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-22
LIFE INSURANCE INVESTIGATION
EXPENSES OF SOME OF THE COMPANIES.
FURTHER EXAMINATION OF LIFE INSURANCE Of
FICERs BY THE ASSEMBLY COMMITTEE.

l
Committee met to-day at $50 oclockMr. COwdin in the
resumed the examination of witnesses touch
ing salaries and other compensation OF officers OF lie
| insurance companies.
| Mr. James NJ Freeman, secretary OF the Globe COM
pany was recalled and in reply to questions stated that
il was the practice Of his and other life companies TO
allow their attorneys charge about cent be-
sides fees for;al loans made besides legal In
teres and that they the companies, did not thhK IL was
usurious to do So He stated that the Finance Commit
tee OF his and many other companies had acted az a
praser and that the loans never exceeded 90 per cent
of the value OF approved property yet he admitted that
| his company held about 100000 worth OF real
estate bought In within the last year or TWO under
foreclosures about threefourhs oil the lace OF the
mortgage interest aud legal expenses; and that his
company rented the property bought in, being dwell
ngs for about five per cent OF the mortgages. 1t
was the opinion OF Mr. Freeman that the experience OF
his company, the Globe, would compare fayoraDy III
that respect with all companies He mentioned one case
where the value of the property in his opinion. was
$4,000; yet it bought in for 1000 He said his
company during the present sagnation OF the market
useless to try and sell all OF their real estate
and therefore held it, rented and secured by fire
insurance. commissions paid by his company on In
surance secured 80 and zig for seven years, which
was usual price paid. General agents get 80 and TO-
out OF which local solicitors paid. For collections,
from to per cent paid The salaries received by him
and the president $500 each, with 10000 each
for allowances per cent the net income. His
was mixed company, part stock and part mutual Inc
capital was 100000, which the stockholders draw
seven per cent, and a like amount the guarantee
fund made IN out of dividends the surplus fund The
amount Of this guarantee fund was now 100000. III
may be increased 100000. The counsel of the COM
pany are Sewe Pierce, and Fullerton, Knox Co., TO
whom the company pay salary. The company also
have attorneys who are paid for special services and re-
ceive commissions loans The costs OF foreclosures
bought in are paid by the company. The company had
irTyT
property bought Mr. VIM sturges Managing Director
OF the company, gets salary OF $4,000 The pres
ilent was i'll in Florida. Sixtyscven thousand
dollars would cover all the salaries OF TIE
about 800 policies, about the amount OF new psl
ness, which was paid about 800 lot losses To
company tgatcd only small number some OF Whlch
were COMPROMISED h ID T P fhrc "S o
after policy was issued The 1Ie insurance was ia
the hands Jf Mr. Wright, a clerk who receives salary
of 81 and commissions ON the lire INSURANCE placed
The company has local or branch Offices III New TORN
| and other large cities. The reinsurance Is small; not
over 100000 reinsurance of all companies when
made Is about per cent less than the usual premiums
Life TO the extent Of S2O00,OO0, for which his
company received a reserve OF 42 per cent amounting
To about 100000 Ills company pald no one any thns
for securing this reinsurance The lire insurance OF the
Globe the Liverpool and London and Globe CONT
| mental, Home, aud Lancashire OF England
Mr. Lloyd, secretary OF the Mutual Life said he had
only secretary Tor year; that The President LETT
we Ks and when last heard FROM was IN
California, and pectcd back III May next Mr. Nc
|
the absence OF the president. aud fully conyersant
with all the practices of the company Mr. McCurdy Is
salary OF the solicitor of the company, MI ialer was
$1,000; other compensation OF the attorney or atlol
news is charged TO the expense accounts witness could
not the counsel or attorneys employed outside OF
the city that would under the law department. OF
| winch Mr. Palmer the head. Al legal matters are
referred TO the law department. witness from memory
could not tell the amounts TO whom paid OF attorney
anL counsel fees during 1876, save tnat represented by
Prof Bartlett. The amOLnt paid TO general agents Tor
commissions during 1873 would equal 5000 900 or $780,
| 600 out of which all solicitors and office and
agency expenses are paid. No commission was
Voluntarily secured at the home Office All bills
audited by the Finance COMMITTEE and pad by check.
expense committee The trustees are elected by the
SON These proxies exist a large policies in
force which the officers elect the trustees annually.
| changed. Mr.. Lloyd excused as the committee
deemed Mr. McCurdy in the absence OF Mr.. Winston the
| ployed and the general practice OF the company.
Company called, and upon affirming, expressed an
apology for Noncompliance with tue resolution as To sal,
ali questions that might be put to hin. As salaries,
he would say that the president and vcepresdent each
salary OF $50, 0OO and bonus OF 5000 each
making S3l,25o; three medical examiners, SllOooI1
| making a total, including out-Of-tOwn medical
examinations. OF $i1 900; other employees receive
$4,000 The pad to the President and the Vice
President for 1876 the same as for the preceding
five or six years The witness also n director In
several fire insurance companies and banks. Trustees
usual custom. In 1876 there s2l 900 paid to eOun
| sell Among the counsel employed was Mr. Carpenter OF
Washington. All fees loans paid by the
| borrowers. These fees the usual charges
| for searches and commissions over legal interest.
Messrs Fullerton. Knox and Crosby are empoyed also
Mr. BOscTt and 80 or 40 other law firms through
the United States. The company renslre part or
some OF its risks but III NewYork companies The
trustees elected by the pOlicy-hOlders by proxy
mostly, except few who appear Ill pers0u-not over
80 40 These proxies indefinitely and are used by
the officers to elect the trustees annually who elect me
officers and Finance Committee The fire insurance Is
placed in known companies. among which are the farra-
gut and Franklin. In the building OF the company loans
| ar ma
OF the loan considerable amount OF mOrtgaged prop
ery bought underOrcclosure, there were
no bidders the mortgages This property the CON-
pany still held and rented.
| in 1876 5000 or 1000 were forfeited and marked OIL
| About $50 restored since January last The aver
age of these terminated policies probably nve
| years. We have agents i'll the south buying up our
good Northern risks. We pay equitable price
for them. No company legally bound 10 pay anything
| on lapsed policy. 1t Is purely matter OF
| grace with all companies. The FINANCE CoInmittee
lty The Chamber OF Life Insurance. OF which he was
the first president is voluntary organization composed
leading officers of the leading companies for the
protection those companies. Mr.. Charlton T. Lewis Is
could speak " how sustained or who are con-
| nected with IL.
One Of its objects watch legislation in the several
States Vim. ii. Beers VicePresident Of the New-York
tce Of this and other companies TO counsel employed
| salaries commissions, and expenses. II is my duty
merely give general supervision, while the Woo
| President has the practical duties TO attend 70.
After consultation the committee concluded to adj
| ourn, that Messrs. Beers OF the New-York Lie,
McCurdy OF the Mutual, and others might be called
Tomorrow the officers OF the knckerb0cker viii Dc eX-
/ amned, and others II ready.