The New York herald., 1877-03-23


other was allowed him or TO any one for hire; we
had nineteen clerks the chief clerk has So 500: the
lowest salary paid clerk was about $40 per month;
the aggregate paid the nineteen clerks between
$4,000 aud 900; none OF them received anything
additional, except some OF them may have secured
new policy and we allowed them "a percentage that /
amounted TO about S40O last year We paid also nbou.
$3.50 Tor extra work To clerks that Is all o vsf ex-
pcnscs; the Insurance Department examined com-
pany@ only once ana that IN 1863 1870; |
In the summer OF 1878 the department asked ior |
schedule OF premium notes. reserve OF au insurance.
company the amount OF assets required bs kept
by the company against losses The witness here
planned The which the basis OF the reserve
is made up; he said whom premium received all |
expenses charged or loaded against IT, amounting
to thirty five orty pcr cent and The is thea
avalabe To meet the loss man Of forty i've years
has chance 10 i,o eighteen or twenty years;
We set aside, with interest, as much per |
year would meet his policy there any over II
goes into the assets OF tho company; our company IS
stock and mutual company; 1t is called technically
mixed company; tor the last i've years the annual
dividend has boon from seven to ten per cent; our
capital Is 500 900; we do business In Massachusetts,
there obliged TO carry on mans policy # tho
premium Is not pad whatever reserve the policy has
would Ue used to carry u the result Is that Mass
achusets man has Two years advantage over New
York man IN our company; that Is on account
Of the Massachusetts law, and we have also provisions
In the policies ON this point; man who pays ten
years premium secures an advantage; tho limited
policy PROVIDES that the policy holder gets propor-
uona,e amount OF what he has pad. for ali our policies
contain tho same clause except Savings bank pocv
uniess the policy holder pays up tho dcaultng pre-
MUM after three payments have been paid within
sixty days his policy becomes void.
Witness here made au explanation, which was To the
effect that policy holder IN default pay UP his
back Indebtedness such as noted or tho policy would
cease; he is not required to pay his promum TO
his policy All apses giving Us the amounts paid by
poicy holders arc returned to the department gross
surplus on policy accounts when policy holder does
not call for his dividend the amount remains
IN tho general surplus referred to; he gets
IT, however,. lie sometimes apples
additional Insurance; II "A man has paid his premium
for i've years aud II he iorfets his policy, what ho
pays remains in the company there is nothing IA tho
reports the depar ment which shows how much was
tnus orcited witness could not tell how much there
was OF this last year. probably about sevenlyvc or
eighty per cent pay ups and twenty-five or thirty per
cent ioroits; he could not say whether the com
pany would purchase surrendered policy; they
done IL to u pretty largo extent. about si.5ooooo;
II man insured for five years at $50 year
and he came the end oil four years, we
might. perhaps, pay him seventy or sevcnty-lvo
per cent OF the reserve, the value Of the policy
remaining; the balance would 80 into tho assets OF
all policy holders who have 500 additional insur
ance to the original policy there are from l2oo 10
holders DO not vote; 1 hold the largest amour. of
stock our company; havo anout s54 900; the
highest Is Mr. Johnson with about $l2 900; next
is Mr.. Kip. with about SO 00O the next Is Mr. John
Anderson, with 81, 900 or 81 000 no one has, to my
have 81. 500 insurance on my lite; policy got
~ 1856: orlsb3; that was for 81 900; was IN agent
,non; nave ono ror ,,.ur Sa,. sen OF WE'VE 'a
years old tho remaining 80, 200 obtained some Ave
years ago: paid my premiums In cash tho secretary
has 00OO taken out three years ago. be paid IN cash
in the usual way; a the directors, except or two,
insured in company: ono has ,000 the small
est amount is oO0 ali paid in tho usual way in 1875
assets were about $7,0O0O Ooo we have about six
agcnts Tor tho State vi New York COMMISSIONS
amount received bv ouy Of them in is7s SnS was
$1,000; In 1878 II was | think, 5000; our entiro
assets in 1876 were ABOUT 900; mortgages about
81, 2,60OOOO; can't say exactly; real estate about
S1,OO0000; cash, 100000 government bonds,
5000 uOO loans call 500 oO0 tho aggregate OF other
stocks aud bonds l cannot recollecL
Mr. Cowdin OF the committee. did not think 1t poss
bic to rely on these statements No business man
can carry his BUSINESS In his head.
Mr. Moody did not think 1t worth while TO take up
the time with such limo OF questions. II sucn IN
formation was wanted II was IN the reports which tho
Mr. welant said tho counsel was only laying basis
for other inquiries
1t was decided await tho present action OF tho
official report
Witness then proceeded TO state tho amount OF real
estate.
We bought, under foreclosure, tho building we oc-
cupy for Sl62, 500; we oxn some real estate on
Flty-second street, nine ull lots; there arc
three frame buildings the lots; that property is
valued at about $40 OOo; wo have one swo hsasss
IN New York, ut Demonco place. ut l63d street; the
mortgages tho two houses were about 50, 900 zach
bid the property oil at that and the costs; wo
think It worth that; do not recall any other
brown stone houses In BROOKLYN; they are worth
about $4O0 600; all were purchased on foreclosure OF
mortgagesi the lace oi The mortgages was perhaps
$375UUO; believe the entro property Is worth what
II cost u.s. our real estate, excluding our buildings
nets about three and one-ha per cent; We also
have real estate In New Jersoy that was secured also
the foreclosure OF mortgages; We loaned about
forty hfty per cent OF the appraised value in all
these cases of foreclosure; the Insurance ON the
buildings in about nity companies; one.third OF
IT. was tho Commercial Union, OF London; VIC never
had II rclo what company to go In; We always went
III the best; have some INSURANCE IN Philadelphia
never indicated 10 any party wnat company shoiId be
selected, nor did any one ever, TO my Knowledge rc
cetve any pay tor selecting u company; when we pay
un insurance receive fifteen per cent and that goes
tho treasury Of the company the borrower pays
tho attorney wnen We make loan; do Dot know
much about this part Of the business have not made
six or eight loans sincc havo been presi-
dent; lever knew of any couson between the insur-
appraisers and the borrowers loans IN Now Jersey
not ns good as IN tho state think II would be ad
visabe to limit tho Investments OF companies 10 prop
crty in tns State by the Legislature; do not think
the supervision OF property loaned on can be as we'll
donc fty miles away from New York AS nearer home :
have never received cont as inducement to loan
any more nor has any member OF my family we keep
in bank always about one hundred thousand dollars
wo have that now; on tho LIST OF January wo
turnet; wo never loaned TO nor borrowed from
any other company; we have call loans amounting 10
about $50 O0O about $30 900 OF this IL members OF
company; the stocks Of tho CONTINENTAL
brooklyn. Mont,uK, Clinton and Jefferson companies
were taken US collateral tor call loans; gavo $IO, 900
security as president; do not know OF any OF tho
members OF company being connected with any
other lfe insurance conpany; am director IN the
some Of the directors arc also, thiuk, In
tho Brewers and Maltsters' Company; there has
been from 100000 TO $500 OOO insurance on
tho collateral for loans may bc that
OF directors are Interested IN the bank in which we
do business.
MI Cowdn did not think that was material 1t was
the duty OF the president OF company iko this to
have It's business done IN the bank which lac deemed
soundcst.
Mr. Moak counsel for the committee, thought thcro
temptation 10 do business with such bank and
extra risks were run.
Mr. Cowdin thought tho committee was hero only to
elicit certain iacts and not To thsorlzc AS to The pro-
priety OF anything.
Mr. Weiant asked Mr.. Nichols whether 1t would not
DO better limit tho officers of Ito Insurance compa-
mes to their own comianesy
Mr. Nichols said he thought II would DO just AS well,
MS officer OF LIE insurance company has no time
| 10 devote TO any other business
SIR Wciant said II would leave man moro FREQ and
untrammellcd
Witness continued and said dividends paid only
! on tho pay mcnt OF premiums; diviaends are never
unlod in the previous income; our advertising In
1875 amounted to little over Sl6 900; none
to members our company Is mcmUcf oi
the New York Chamber Life Insurance.; tho
| object OF II Is To promote the growth of sound
insurance. our company pays to about 81 900 per
is