The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-09-09
GOLDEN SHOWER
FOR OFFICIALS
How Salaries Are Boosted in Insur
ance Companies.
KINGS RANSOM EACH YEAR
BOND TRANSACTIONS OF THE
NEW YORK LIFE.

Anew YORK, Sept. S.-The salaries
paid 10 the officers of the New
York Life Insurance company
We're the subject of the opening in
quiries when the Insurance investiga-
ton was resumed today. Edmond
Randolph, treasurer of the New York
Lie, testified that the salary of Presi-
dent John A. Mccall of that company
had been increased from $40 900 in 1892.
10 $4,000 in 1888 $75. 600 in 1896 and $780,
600 since 1901.
The salary OF George W. Perkins.
vice president of that company, MI.
Randolph testified. was increased from
$4,000 in 1898, 10 SO, 900 in 1897. $50 600
In l9OO $4,000 in 1901. and then reduced
TO $4,000 in 1902 The reduction i'm sal
AIRY was due 10 Mr.. Perkins going into
partnership with J. p. Morgan Mr.
Randolph's statement of the salaries OF
The other officials showed a steady in
crease.
Director on the Stand.
John Clafin. a director and member
OF The finance committee of the New
YORK Life Insurance company, was the
\ aeXt witness. Mr.. CIahin described the
company's method of making invest
lnehts through the finance committee
me list of investments as a rule We're
prepared, 5he said not by individuals
Dut by great number Of financial in
slluIlonS-practically the whole finan-
clal community The proposals were
nrst passed on by a subcommittee.
which eliminated the impossible ones
II the proposals came on the day of
Whole finance committee considered the
proposals
The participation OF the New York
Lille TO the amount of So 100000 in the
syndicate that handled bonds Of the
Atlantic coast line, was taken NJ. On
This deal. Mr.. Clahin said the New York
Life made profit He said.
If the New York Life were to dis
pose OF its holdings carefully and slow
~ as an individual would, I have no
doubt that all such holdings could be
sold at price equal TO that for which
they We're purchased
Syndicate Transactions.
In answer 20 questions concerning the
New York LIES participation i'm pur-
chasing syndicates to hold bonds for a
specified time, Mr.. sClafiin said he did
not consider il a serious matter for
that company 10 tie itself uD 50 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 Sep
TENDER, 1900. 10 Aug. 81. 1905. were put
IN rs evidence They averaged about
$I2 100000.
Mr. Hughes asked Mr. Clahn if. with
SO large sum at its command. il was
necessary for the company 10 bind it
self rot 10 sell the bonds for a year
The New York Life could with alb
sOiute safety. tie up three fOurths of
its assets for five, six, eight or ten
Years said Mr., ClaHiR. There is alb
SOlutelN no harm in tying our money
I'D The finance committee could save
themselves much trouble if they invest
ed their money i'm the United States
or municipal bonds. and there could be
no objection unless some poliCy-h holders
asked why they We're not getting a
higher rate
Argued the Matter.
Mr.. Hughes and Mr. CIaAa argued
as 10 the beneficial results of these SYM
dicates 10 the New York Life Mr..
Clatiin based his defense of the holding
agreements upon the benefit to the ven
doris Of the knowledge that the COM
pany would not be i'm the market i'm
mediately to dispose of their holdings
and so compete with the first issue of
the bonds. Consequently the company
got the bonds at a lower rate and We're
sure the market would be protected
for them. too. No possible harm, he
said, could come 10 the New York Life
from the delay in selling the bonds
again. Mr. Clahin said that he may
have participated I'm the syndicate
transactions in the last five years. bun
he ha
year. He had been i'm several syndi~
Gates but not I'm any that sold bonds
20 the New York Life Insurance com
pany. The finance committee. he de-
clared, SERVED faithfully and con-
scientiously the New York Life" He
personally had never made cent our
Of New York Life except the working
fees.
Bond Transactions.
The participation OF the New York
Life in the syudiCaIiug of the mterna-
tional Mercantile Marine cOmpany's
bonds To the extent of So. POO 600 was
brought up. In this company Mr.
Clafiin personally was interested to the
extent of 100000. He said that there
was 10 be a bonus TO the syndicate
promoters Of 81, 500 geo preferred stock
and $4,000 600 common stock. but that
in ali such transactions if The New
YORK Lie ana members or the finance
committee were members of the same
syndicate, they were merely CO-ad-
venturers i'm an investment and that
In such cases the New York Life never
bought any OF the bonds when placed
on the market.
Mr.. Clafin said hat this Mercantile
Marine company issue was the only
syndicate transaction I'M which both he
and the New York Life participated.
Interest was paid on these bonds for
one year only he said.
The Burlington Deal.
He then stated that the New York
Life had bonds of the Carnegie Steel
company, that 1t participated i'm the
syndicate of the Chicago & Alton re-
FUNDING bonds 20 the extent of $1,000
900. and that il was not only interested
10 the extent OF S2.5O0 600 in the Chica-
90. Burlington & Quincy purchase syn
dicate. but that afterwards it increased
the amount of its holdings 10 So, SOC. 600
worth of bonds, which We're still in
possessiOn OF the New York Life
Asked why this increase was made
Mr.. CIafin said that whenever bonds
turned out better than expected the
New York Life Increased its holdings
over the initial purchase