The Montgomery advertiser., 1905-09-09
INVESTIGATING ITS BUSINESS Legislators Examine New
 York Life. SEARCHING SCRUTINY ON More Interesting Facts Are
 Developed. s'Frenxied Ffnances Lawson May Be Asked by the Committee to
 Give Testimony at
 New York.

New York. Sept s.-Today's session of the legislative life insurance investi- gation committee was devoted exclus- lively to the affairs of the New York Life Insurance Company, and search ing examination was made of its off, cers who answered on the stand. Be- ginning with the salaries paid to the officers. the line of inquiry extended through all the details of the company's participation in various underwriting syndicates for railway securities, the New York Lfe's connection with trust companies and finally, near the close of the day, developed the fact that it was not an unusual thing for clerks or messengers in the employ of the com pany with salaries a s low as $500 year to sign notes for millions of dollars to be used by the company In relieving its books of undesirable securities.
 An interesting feature Of the day was the statement that Thomas W. Lawson of Boston might be called as a witness. The committees chairman, State Sem ator Armstrong, said If the information MT. Lawson is supposed to hold could not be secured from others, the finan- cier would be asked to testify. Not being a resident of the State, MT, Law son cannot be compelled to give testi- mony.
 Officers of the New York Life Com pany testified today that on one occa- sion 1t became necessary for the com pany to sell certain securities in order to satisfy the Prussian Government. Two clerks signed notes aggregating $2.335, ,000 and on the books the securi- ties appeared as sold to these parties. although they really had been turned over to the New York Trust Company as security for the loan made on the notes of the two insurance company employees. Another clerk signed a note for S1,3S5, ,000.
 Iat The, committee adjourned this morn ing untily' t0:30 o'clock next .THesday morning.
 The salaries paid to the officers ol the New York Life Insurance Coinpanx were the subject of the opening inqui4 ries when the insurance investigatio1 was resumed today Edmund Ran4 doIpfi TreasnFsrs of tk New York Life testified that the salary of Preside4t John R. Mccall, of that company. had been increased from $40,000 in 1892 tot $50. 900 in 1893, $75,00 in 1896 and $100,- 900 since 1901.
 Perlkins' Salary Decreased.
 The salary of George W. Perkins, Vlce-President of that company, MT Randolph testified. was increased from $20, 900 In 1893 to $25,00 in 1897, $40,000 in 1900, $75,000 in 1901 and being re- duced to S25,0 in 1902. The reduction in salary was due to Mir. Perkins going into partnership with J. P. Morgan. Mir Randolph's statement of the salaries of the other officials showed a steady in- crease.
 John Claain a director and member of the Finance Committee of the New York Life Insurance Committee was the next witness. MT. ClahIn described the company's methods of making invest ments through the Finance Committee. The lists of investments as a rule were prepared, as he said, not by individuals, but by a great number of financial in- stitutions-practicall the whole finan- cial community. The proposals were first passed on by a subcommittee which eliminated the impossible ones. If the proposals came on the day of the Finance Committees sitting, the whole Finance Committee considered the proposals.
 Docs the New York Life from time to time enter into syndicate agree ments?' asked Mir. Hughes.
 Yes" Mir. Clahn replied -~~-
 Do they come before the sub-com- mittee of the Finance Committee?"
 NO. they come before the whole Finance Committee. Written agree ments are drawn up and a synopsis of them Is recorded in the minutes of the t1nance
 Does not the New York Life enter into syndcates when it does not take the bonds itself?"
 Tt never enters into syndicates un- less satisfied it Is a good thing for the New York Life to hold bonds the sym dicate handles it never enters into syndicate transactions except with the intention of taking bonds"
 Mir. Clahin said the New York Life T,- n profits as member of the syndicate which underwrote some of the Japanese war bond, first series. Lawyer Hughes, counsel for the committee, said that evidently the insurance company had in the present instance received it's share of profits realized by the syndi- cate members from the sale of bonds to the public.
 It was shown the New York Life In- surance Company participated to the extent of 100, 900 pounds in the syndi- cate which disposed of the second series of Japanese 6 per cent war bonds. The syndicate was not called upon to accept any of tho bonds and therefore the New York Life took none of the bonds by withdrawal
 Adding to Its Profits.
 It was next shown that though the New York Life did not withhold from the market any of its syndicate hold ings of bonds. 1t afterwards went into the market and bought very largely. thereby adding to the syndicate profits
 Mir. Clahin explained that Japanese 6s varied very much in value and the bonds may have been sold by the sym dieate at one time and repurchased by the New York Life at another under quite different circumstances. The participation of the New York Life to the amount of $3.O0O. .OO0 in the svndje cate that handled bonds of the Atlantic Coast Line was taken up. Mir Clafin explained he could not remember the details of the transaction. The man agers of the Atlantic Coast Line were issuing $1O000,O0O bonds to Ieading banks of New York and the New YoriS Life at 94. less than half price. and later at 94, less 1 per cent The Fi- nance Committee of the New York life authorized the treasurer to take S2 100000 of these bonds. The coiIstsrsI of the Atlantic Coast Line was Iouis- vile and Nashville stock.
 On this deal MT. Clafin said the Iau, York Life made profit. He sail. ..If the New York Life were to dispose of it's holdings carefully ana slowly ss an individual would. I have no Souht that all sucb holdings eould he aoId st