The Montgomery advertiser., 1905-09-09
wEATHEa FORECAST.
 Washington, Sept. a--Far Aiaba,nn--. Fair Saturday and sunday, Iight north- east winds.

a price equal to that for which they were purchased"
 In answer to questions coneernlns the New York Life's participation In | purchasing syndicates to hold bonds 1 for a specified time, MT. Chafiin said he | did not consider it a serious matter fol | the company to tie itself up so that il could not dispose of large blocks oi stock for year.
 Cash Balances.
 | Statements of the cash balances oi | the New York Life in the banks of the United States and Canada from Sep. | tember, 1900. to August 31, 1905. were put in as evidence. They averaged about $12,000,000. MT. Hughes asked MT. Clafiin if with so large a sum at itl command 1t was necessary for the com. pany to bind itself not to sell the bondi for a year.
 "The New York Life could with ab- solute safety, tie up three-fourths oi its assets for five, six, eight or ter years" said Mir. Clafin. There is ab- solutely no harm in tieing our money up. The Finance Committee could save themselves much trouble if they invest ed their money in United States or mu- nicipal bonds and there could be no objection, unless some policyholders asked why they were not getting a higher rate."
 Mir. Hughes and Mir. Claffin argued as to the beneficial results of these syndf- cates to the New York Life. Mir. Clafiin based his defense on the holding agreements upon the benefit to the ven- dors of the knowledge that the com- pany would not be In the market im- mediately to dispose of their holdings, and so compete with the first issue of the bonds. Consequently the company got the bonds at lower rate and were sure the market would be protected for them, too. No possible harm, he said, could come to the New York Life from the delay in selling the bonds again. MT. Clafiin said he may have partici- pated in the syndicate transactions in the last five years, but he had not done so within the last year. He had been in several syndicates, but not In any that sold bonds to the New York Life.
 The Finance Committee" he declared, served faithfully and conscientiously the New York Life" He personally had never made a cent out of the New York Life except the working fees.
 In Blg Syndicate.
 The participation of the New York Life in the syndicating of International Merchant Marine Company's bonds to the extent of S3.200,000 was brought up. In this company MT. Claffin personally was interested to the extent of S1OO, 900. He said that there was to be bonus to the syndicate promoters of $2.50e.000 preferred stock and $25, 900, 900 common stock, but that in all such transactions, If the New York Life and members of the Finance Committee were members of the same syndicate, they were merely co-adventurers fin an investment and in such cases the New York Life never bought any of the bonds when placed on the market Mir. Ciahfn said that this Mercantile Marine Company issue was the only syndicate transaction in which both he and the New York Life participated. Interest was paid on these bonds for one year only, he said. He then stated that the New York Life had bonds of the Carnegie Steel Ct,sn-l pafly, that 1t participated in tne Hynd{~ cate of the Chicago and Alton refund ing bonds to the extent of S5,000,000, and that it was not only interested to the extent of $2,500, 900 in the Chicago, Burlington and Quincy purchase syn dicate, but that afterwards 1t increased the amount of it's holdings to $12,500.000 worth of bonds, which were still in pos- session of the New York Life. Asked why this increase was made, MT. Clafin said that whenever bonds turned out better than expected, the New York Life increased it's holdings over the initial purchase.
 LangdOn'a Interest.
 Woodbury Langdon. another mem Der of the finance committee of the New York Life Insurance Company. said he was interested in the Interna- tional Marine bond issue to the ex- tent of $75.o00. He declared that he had never been a member of a syndi- cate which sold securities to the NeW York Life nor of several syndicates n tUb bfrh tha NaW York .ffe tn terested
 MT. Randolph, treasurer of the New York Life. being recalled, told the counsel for the committee that the modern underwriting syndicate was so operated that the members of it did not know whether they received their share of the profits and that the in- surance companies participating in the syndicates were not insured against loss. though some banking houses al- ways demand and secure a written agreement when participating in a syndicate. Mir. Randolph was asked If he did not think the New York Life was strong enough to make its own terms with banking houses rather than wait their favor.
 ' '. 'I have always thought it would be most impolitic to invade the field of banking houses" he replied.
 If he demanded an itemized state ment from the managers of a syndi- cate he said that the company would probably be left out of all future syn dicates conducted by the same mana ger. It would show a feeling of dis- trust and no set of men would con tinue to do business of that sort with men who distrusted them.
 Mir. Randolph said that the members of the syndicate were under agree ment not to offer bonds Tn which they were interested at such a price as to break the market Moreover, if they withdrew their holdings they lost their share of the profits of the syndicate.
 The Managers RakeOR.
 'If the management sells all the holdings of the syndicate the members get a profit without paying a cent; if it does not, the memDers take the bonds at the bottom price. The man ager of the syndicate receives one half of one per cent for the trouble of management,
 Does the New York Life hold stock in any trust company"
 Changed Its Policy.
 We do not: we did prior to it's change of policy in 1S99," said MT. 1899 with reference to the investments of the New York Life were then read and counsel proceeded to go into the matter of the five thousand security and trust company's shares which were held by the company at that date and had to be disposed of.
 Tt was a very interesting prob lem" said MT. Randolph. If 1t were publicly known we mad to get rid of them there might be an attempt to jump on us. A purchasing syndicate