The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-09-09
Messenger Boys Sign Notes
for Millions to Conceal
Real Participants
LAWSON MAY Be CALLED
TO TELL WHAT He KNOWS
Beginning With Salaries of Officers the
Line of Inquiry Extends Through
Details of Company
Business.

New York, September s.-Today's sea-
sion of the legislative life insurance in
vestigating committee was devoted ex-
cusyely to the affairs of the New York
Life Insurance company, and search
ing examination was made of its officers,
who answered on the stand.
Beginning with the salaries paid to the
officers the line of inquiry extended
through all the details of the company's
undertakings In various underwriting syn
dlcates for railroad securities. the New
York Life's connection with trust COM
panies and finally near the close Of the
day developed the fact that 1t was not
an unusual thing for clerks or messen-
gers In the employ of the company with
salaries as low as $500 year to sign
notes for millions of dollars to be used
by the company in relieving its books of
undesirable securities.
Lawson May Be Called.
An interesting feature of the day was
the statement that Thomas w. Lawson of
Boston might be called as witness. The
committees chairman, State Senator Arm
strong, said If the information Mr. Law
son is supposed to hold could not be Sc
cured from others, the financer woulu
be asked to testify Not being a resident
of the state. Mr.. Lawson cannot be COM
PEELED to give the testimony.
Officers Of The" New York Life Insur-
ance company testified today that on one
occasion 1t became necessary for tho
company to sell certain securities In orr
| n
Two clerks signed notes aggregatng sa,-
$4,000 and on the books the securities
appeared as sold to these parties, al
though they really had been turned over
to the New York Trust company as se-
curity for the loan made on the notes of
the two insurance companies employees.
IL was declared that since 1899 the New
York Life Insurance company had NOT
| been connected with trust companies but
subsequently it was admitted that the
STOCK OF the New York Trust company is
now held for the New York Life by a
committee of trustees. The New York
| Trust company Is a connection of the
New York Security and Trust company
and Continental Trust company
The committee adjourned until 10:3o
O'Clock next Tuesday morning.
Salaries of Officers.
| The salaries paid to the officers of the
New York Life Insurance company were
| the subject of the opening inquiries when
the Insurance investigation was resumed
| today. Edmund Randolph treasurer of
| the New York Life, testified that the
salary OF President John A. Mccall OF
| that company had been increased from
! $4,000 In 1892 to $4,000 In 1893, $4,000 In
| 1896 and 100000 since 1901.
The salary of George w. Perkins vice
president of that company. Mr.. Randolph
testified, was increased from $4,000 In
1893 to $4,000 In 1897. $4,000 in 1900 $4,000
| In 1901, and being reduced to $4,000 In
1902 The reduction in salary was due to
Mr.. Perkins going into partnership with
| j. T. Morgan. Mr.. Randolphs statement
| of the salaries of the other officials
showed a steady increase.
| John Claflin a director and member OF
the finance committee of the New York
Life Insurance company. was the next
witness. Mr.. Clafiin described the COM
pany's methods of making Investments
through the finance committee. The lists
of investments as rule were prepared as
he said, not by individuals but by a
great number of financial institutions
practically the whole financial commune
ity. The proposals were first passed on
by a subcommittee which eliminated the
impossible ones. If the proposals cams
on the day of the finance committees
sitting. the whole finance committee con-
sdered the proposals.
Enters Syndicate Agreements.
docs the New York Life from time to
time enter into syndicate agreements?"
asked Mr.. Hughes.
Yes" Mr. Claiin replied.
''Do they come before the sub-commlt-
tee of the finance committee?"
mo they come before the whole finance
committee. Written agreements are drawn
up and a synopsis of them is recorded in
the minutes of the finance committee"
Does not the New York Life en-
ter into syndlcates when IT does not tako
the bonds itself?'
ut never enters into syndicases unless
satisfied II Is a good thing for the New
York Life to hold bonds the syndicate
handles; 1t never enters into syndlcates
transactions except with the intention ot
taking bonds"
Mr.. Clafin said the New York Life In
surance company received S9760 profits
as a member of the syndicate which un-
derwrote some Of the Japanese war bonds
first series. Lawyer <lghes. counsel for
the committee. said that evidently the
insurance company had in the present
Instance, received its share OF profits
realized by the syndicate members from
the sale of bonds to the public.
II was shown the New York Life In
surance company participated to the ex-
tent Of ei0000O in the syndicate which
| disposed of the second series of Japanese
6 per cent war bonds. The syndicate was
not called upon to accept any of the bonds
| and therefore the New York Life took
| Done of the bonds by withdrawal.
Added to Syndicate Profits.
1t was next shown that though the New
York Life did not withhold from the mar
ket any of its syndicate holdings Of bonds
| II afterward went into the market and