The Birmingham age-herald., 1905-09-09
CROOKEDNESS UNEARTHED
 IN ,NEW YORK LIFE
(continued from First Page)

the syndicate profits. MT Clahin ex- plained that Japanese 6's varied very much in value and the bonds may nave been sold by the syndicate at one tune and repurchased by the New York Life at another, under quite different circum- stances The participation of the New York Life to the amount of $3,OOO,OOO in the syndicate that handled bonds of the Atlantic Coast Line, was taken up. MT. Clafin explained he could not remember the details of the transaction
 The managers of the Atlantic Coast Line were issuing $iO,0oO'00o bonds to lead ings banks of New York and the New York Life at 94, less than half price; and later at 94 less than one per cent. The finance committee of the New York Life authorized the treasurer to take $2 100000 of these bonds. The collateral of the Allan tic Coast Line was Louisville and Nash vile stock.
 On this deal MT. Claf1ln said the New York Life made a profit. He said; 1 of the New York Life were to dispose of it's holdings carefully and slowly as an individual would. have no doubt that 1 ali such holdings could be sold at a price equal to that for which they were pur- | chased"
 l In answer to questions concerning the New York Llfes participation in pur- 1 chasing syndicates to hold bonds for | specified time, MT. Clafiin said he did not ] consider 1t a serious matter for the com pany to tie itself up; that 1t could not dispose of large blocks of stock for a l year
 l Statements of the cash balance of the | New York Life in the banks of the United States and Canada from September, 1900, to August 31, 1905, were put in as evil l dence. They averaged about $12000,000 | C1oA l., xrrff1 so large a sum at it's command it was necessary for the company to bind itself not to sell the bonds for year.
 Could Tie Up With Safety.
 "The New York Life could with abso- lute safety, tie up three-fourths of its as- sets for five, six, eight or ten years, !" l said Mir Clafin. There Is absolutely no harm in tying our money up. The finance l committee could save themselves much trouble if they invested their money in i United States or municipal bonds, and there could be no objection unless some policy holders asked why they were not getting q higher rate"
 MT Hughes and MT. Claflln argued as to the beneficial results of these syndi- cates to the New York Life. MT. Claf1in | based his defense on the holding agree ments upon the benefit to the vendors of the knowledge that the company would diSPpoC their holdings, and so compete with the first issue of the bonds. Consequently l the company got the bonds at a 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. Clahin said he may have participated In the syndicate trans | actions 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 Insurance company.
 "The finance committed" 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.
 Was Personally Interested.
 The participation of the New York Lifs in the syndicating of Internatial Mer- chant Marine companies, bonds to the extent of B. 2O0000, was brought up. In | this company MT. Caflin personally was interested to the extent of Sl00,0O0. He said that there was to be bonus to the syndicate promoters of s2500,OOO pre- ferred stock, and $25.000,00O common stock, but that in all such transactions if tho New York Life and members of the finance committee were members of the same syndicate they were merely co-ad- venturers in an investment, and in such cases the New York Life never bought any of the bonds when placed the market MT. Cafin said that this mer- cantile marine company issue was the only syndicate transaction fin 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 company, that 1t par 1 ticipated in the syndicate of the Chicago and Alton refunding bonds to the extent | of s5000,000, and that 1t was not only in terested to the extent of s2.500.000 in the Chicago, Burlington and Quincy purchase syndicate, but that afterwards it increased | the amount of it's holdings to 12,5000o1 | worth of bonds. which were still in pos session of the New York Life.
 Asked why this increase was made. Mir. Cafin said that wherever bonds turned out better than expected, the New York Life increased it's holdings over the initial purchase.
 Woodbury Langdon. another member of l the finance committee of the New York Iifa Ip~s.~~>-~ ~~aasonv- --il h- --->-