New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-14
MR.. BEERS'S $4,000 PENSION.
THE ATTORNEY GENERAL URGED TO BRING
AN ACTION TO TEST ITS VALIDITY.

| Akb OF OOCN>Eb run LIE iht~SlDfN L
ANDEx-PEEsIDENT OF THE NEw-YoRK LIFE
| Mr.. RosENDALE TAKES THE PAPERs.
Albany. May - special. Attorney General Rosen
dale listened today 70 an application, through coun
sci. from John A. Mccall president OF the NewYori
| Life Insurance Company, "a policyhoder OF that
company, and from Mr. Beers former president of the
/ same company. for him to bring a suit testing the
validity Of the contract made by the company with
Mr. Beers to pay the latter s37 500 yearly as salary
for acting In an advisory capacity to NJ Mccall The
application was in the nature OF friendly suit TO de
termine the validity of the contract. In certain
| sense the Attorney General was asked to act as
arbitrator between the parties. and them from
going into court. Mr.. Rosendale rather demurred 10
accepting this Office. saying that he thought life ocn.
tract for such large sum S37 800 yearly should
be judicially Interpreted.
The application upon the part Of Mr. Mccall was
made by Andrew Hamilton and upon the part of Mr..
Beers. by Eek Cowen. Mr.. Hamilton, after review
Ing the circumstances which resulted in the resigna
ton Of Mr. Beers made an argument TO prove tina.
the Attorney General had power TO take action As
to the validity Of the contract Mr. Hamilton asserted
that the oncerS OF the company should be restrained
by The courts because contracts which 60 the total
restraint of trade are void Incorporated insurance
companies. he continued have only the powers given
them by their charters and the charter of the New York
Life and the general statutes OF the state could be
searched in vain for authority vestng them with the
night to bestow pensions. lie declared that the
tract in question was form used simply blind
and that the resignation. the resolutions and the con.
tract Itself were proofs OF this.
The occurrences that led up to this transaction
he went on. showed that 1t was mere suberfuge to
squander the p0lcyhOlders money BY way OF pension
When the president Of insurance company appoints
committee through whom he secures a contract with
himself to pay himself what NAV amount to many
hundred thousand dollars for services whatever but
solely Tor gra'uity or pension ample cause Is shown
and the command OF the statute to the Attorney Gen
eral that he must bring action becomes imperative
Mr. Hamilton thought that In all probability this
the hrst attempt by an insurance corporation in the
direction Of granting pensions. and that II it were
allows to pass unntcrferod with by the public au
thortes these authorities thereby would give their
sanction to II and might look forward to long line OF
imitators among corporations Mr.. Hamilton. In con
clusion. submitted to the Attorney General letter
from Mr.. Mccall. in which the latter
AS polcyhOlder in the Ncw-lOrk Life Insurance |
company, and It's president, the 9TH Of April last
requested the superintendent OF the Insurance De |
'artment to present for your consideration request
or your action or consent TO legal action on my part
n regard to the validity OF contract made by this
company with Mr. William H. Beers, It's former presi-
lent. / most respectfully request that you
dve your opinion the question whether not the
contract is u legal and valid obligation OF the com
ANY Tor have desire, by captions action 10 make
fruitleSs attempt at the expense Of the policy
olders 70 prevent the company from performing what
has obligated itself to do
Esek Cowen then said 10 the Attorney General: Il
ONE here in behalf Of Mr.. Beers. come here claim
ng that the contract made with him by the trustees
4 the NewYork Life Insurance Company was "A valid
ontract, and should DO lived up to but hope that
he Attorney Genera, will take this case under his
consideration, and Will decide that the contract
gal One.'
Attorney General Roscnda'e, intoruptng Mr.. Cowen.
aid Do you believe it 10 be The duty OF the At
Drney General. whenever a pocyholdcr believes a
ircctor has made eNtravagant contract, that he
hould bring suit -
Mr.. Cowcn Answered "No, do not 60 as far as
hat l do not think an Attorney General can ex.
mine into the question OF error OF judgment upon
he part OF the directors Of corporation; but do
blink that when he is convinced that the directors
lave exceeded their powers he ought Interfere As
representative Of Mr.. Beers would stale that VIC
ire DESTROYS that the Attorney General should look
ntO this matter, and that there should not DC an
Expensive litigation concerning it in the courts. We
lain that Mr. Beers is entitled to a salary yearly Of
81 500. We assert that he could have retained hi,
early salary Of $4,000 yeBr. but would have |
on know that although he felt the criticisms Of his
administration were unjust. it was best for him t.
edre from the presidency. Ills friends suggested |
hat Int should accept an advisory place. and that | {
e should still retain his connection with the
ANY in that way. Even the directors unffiendy to
i'm suggested that he should receive least s.j 900
year salary. II was debated whether lie could |
egaly be paid salary for acting in an advisory |
lace. The matter referred TO three dis | ,
lneuishcd lawyers, namely. Joseph II. ChOate Fred |
nc H. COuder and william b. IIornblOwer; and as |
ION VIII see by this paper which hold In my hands
hey we're Of the opinion that this contract could he
made with Mr.. Beers.
Mr.. Mccall says that Stockholders are now CD |
losing the execution of this contract. | think they
re doing 1t under Misrepresentation. 1t is asserted |
hat this payment OF 1870 is pension. That Is not
he case. The contract provides that Mr. Beers shall do
Ork in advisory capacity when called upon |
le Is highly experienced man. There Is no doubt |
my mind that the company could legally make |
his contract 10 employ Mr.. Beers in an advisory
apadty. 1t cond have made him a general agent |
nd agreed TO pay him this S37 900 salary Yon will |
lso note that this contract provides that Mr. Beers
hall not compete ih business with the New.Yors
life Insurance Company. This is service Of great |
alue to the company.
. IL has been said by the newspapers who are the
al counsel OF the stockholders IN this case that
r. Beers will not be asked for advice Why NOT | '
ow president OF the company. II l. trne that Mr.
cCa does not need any Of Mr.. Beerss advice. There
no better insurance man In the world than John A. .
cCall but ii not known when this contract was
ade with Mr. Beers, that Mr. Mccall would be tho c
resident OF the company Indeed he had declined 10
ccept the presidency and the trustees dr ating
he question OF putting into the presidency either
harles 5. Fairchild. Grover Cleveland william a
whitney. In that case Mr. Beers certainly would 4
been called upon TO give his advice TO the new a