Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-09-09
legislative Investigation Of II
Shows Some Remarkable Bust
ness Methods
LOANED MILLIONS TO CLERKS.
Used Them as Dummies % Clear the
Books Of Undesirable
Securities.

., bo legislative NE insurance mycsu-
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gazing commute "'' "'' ''''
ly TO the affairs OF the New YORK ldic
Insnrarcn conipanv. and searching
....i.,,,.,, ,,.,s r,,do ,r ts oglsers
VINO appeared on the slau"
Beginning with the salaries paid 10
fine oaicors the line OF inquiry eytcud-
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'u '"'""H" 10" '''
pany's participation ln various UNDER
writing syndIcates FOR railroad secure
ties. the New York LIES connection
with the trust companies. and, finally
near the close OF the day, developed
the fact that Dc was not an uuusu3,
thing for clerks or messengers iu the
employ OF the company with salaries
as low as $500 "a wear 90 Sign notes for
millions Of dollars 90 be- used by lu'
company IN relieving IT'S books of unje-
slrsble securities.
An interesting feature of the day was
the st8temo1. TINT Thomas W Lawson
of Boston might be called as "a witness.
The committee chairman. State oeu-
ator Armstrong. said iI the iuiorma-
ton Mr. lawson Is supposed 90 hold
could not be secured from O.her sources
the Boston fnancier would Doe asked
10 testify Not being resident of the
state, Nh Lawson cannot Doe compelled
TO give testimony.
Omccrs Of The New York Life CONE
pany testified today Chan on one occu-
sion 10 became necessary for the nom-
pany 10 sell certain securities Con order
10 satisfy the Prussian government
Two clerks signed notes aggrcgatng
S2,S3J.OO0. and on the books the secure
ties appeared "a sold To these parties,
although they really had been turned
over 10 the New York Trust company
rs security FOR the loan made ON the
notes Of the two insurance company
employees.
II was declared th0t since 1889 the
New York Lafe Insurance company
had not heen connected with tru9t
companies, but subsequently II was adj
mlttod that the stock or the New York
Trus, company IS now held for the
New York Life by committee OF
trustees The New York Trust Secur-
ity company and the Continental Trust
company
The committee adjourned ihls after
noon until 1890 o'clock next Tuesday
morning.
John Clanln. director and member
OF the finance committee OF the New
York Life Insurance company, was the
next witness. Mr.. Cladin described
the comp anyg method or making in
vestments through the finance commit
tee
The participation OF the New York
Life 10 the amount OF $1,000 900 I'm the
syndicate that handled bonds OF the
Atlantic Coast Line was taken up. on
this deal, Mr. Clahln said, the New
York Life made profit He said.
III the New York Life Were TO dis
pose Of lts holdings carefully and
floW y as an Individual would, 1 have
no doubt that all such holdings could
be sold at a prdce equal to that for
which they were purchased"
In answer 60 questions concerning the
New York Lies participation I'm pur-
chasing syndicates 10 hold bonds for a
specified time, Mr.. Claim said ne did
not consider II serious matter for
that company to tie Itself up SO that II
could not dispose OF large blocks OF
stock for a year.
Statements Of the cash balances OF
the New York Life IN the banks OF the
United States and Canada from SEN
iember, 1900, to Aug. 81, 1905, were nut
I'm as evidence. They averaged about
Sl2 coo, 0O0
Mr.. Hughes asked Mr.. Clanln r. with
20 large sum nc its command. II WAS
necessary for the company to bind it,
self not 70 sell the bonds for "a year.
"The Nov York Life could with abso.
lutte safety tie up three fourths of its
assets for Ave. six. eight or 10 wears %
said Mr.. Clanlin. There ia absolutely
no harm IN tying our money up. The
huauce committee could save them
selves much trouble IL they invested
their money I'm tho United states on
,nunlclpal bonds. and there could be
no objection unless some policyholders
naked why they were not getting "A
higher rate"
Mr. Hughes and Mr. Claim argued
Rs to the beneficial results of these syn-
dlcates to the New York Life. Nh,