Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-05
LIGHT ON INSURANCE
Interesting Developments in
New York Life Inquiry.
DEVLIN ON THE STAND
TELLS WHERE COMPANY INVEST
ED ITS FUNDS.
Millions in Office Buildings That Net
Big Incomes-Threat From
Missouri.
]EVLIN ON THE STAND

NEW YORK, October 5.-Edward Devlin,
tn, real estate manager of the New York
Life insurance Company, today resumed
his testimony, which Interrupted at the
adjournment last night of the legislative
com mittee appointed to investigate the life
insurance business.
Mr.. Devlin testified that an apartment
house at Park avenue and cd street cost
the New York Life Insurance Company
Sl,o9. S66 and is carried on the company's
books at $450.o00. The loss, he said, was
due to the administration preceding MIR.
McCall's. The office building in Kansas
City cost $1.9O1, TS1. 1t is carried on the
books at S1.20O,OOO. and its net income is
So9,oo2. or BOG per cent return on the in
vestment. The company charges itself with
1892 rental for six offices.
The Omaha building cost 81 2I6641 and is
carried on the books at $3.50, 600 and pays a
return or n little under 3 per cent The
coHpanys rental is S1,2O0. The net in
come Is SS4 stS. All these figures are for
the year 1904.
The building at Minneapolis cost 81 OPS T52
ana pays return of 21a per cent. The net
income is S2S, $50.
In ST. Paul the building cost 5000 44O and
mas net income of SS,122 or little less
than l per cent.
The Montreal building cost Ss1s.3oe is
carried at $350,o00 and has a net income of
Se,ZlZ, or about IA per cent on the actual
cost
= Mr.. Devlin said that in 1903 the real es-
tate of the New York Life returned per
cent. In 1904 the return fell TO 81 per cent
This, witness said was due to the home
office annex. which was taken over in that
year This year Mr.. Devlin expected the
real estate investments would amount to
per cent
The Plaza Hotel in this city cost the COM
pany loss of $l29 OBS Mr.. Deviin said 1t
lent money to the original builders on mort
gage and after $4,000 had been expended
they failed, and the company took over the
property in 1902 and spent 81 00O.OOO on the
construction. The total cost to the COM
pany was $3,960549, and they got out of the
investment with the loss of s123, ,035.
The Auditor on the Stand.
Following Mr.. Devlin, Cornelius c. White,
an auditor of the New York Life Insurance
Company. was called. He presented records
Of the account with Andrew Hamilton,
showing that two entries of $4,000 each
were charged to Taxes, New York insur-
ance'' account and later one of these $4,000
entries was transferred to the contingent
expenses account. Mr.. White said the lat
ter account consisted of items that were
paid to the president to reimburse him for
what he had paid out
w. F. Thummel, the lawyer engaged with
Mr.. Hamilton in legislative work for both
the New York Life Insurance Company and
the Equitable Life Assurance Society, was
next called.
Mr.. Thummel said he was now an attor-
ney for the Mutual Life He receives a
salary of 81 200, and looks after taxes and
legislation for this company throughout
= the United States.
Mr.. ThummePs Testimony.
Mr.. Thummel said he had received money
from the New York Life Insurance Com
pany in the adjustment of expenses The
last time he received money in this way
was a little over a year ago, The witness
said Mr.. Mccall was mistaken in his
testimony yesterday that he paid money
TO the witness for work in endeavor-
ing to secure federal supervision Mr.
Thummel said he had talk with Mr..
Mccall on that matter and asked him If his
. company would contribute to such a cause
Mr. Mccall said it would, but witness was
paid no money.
Mr.. Thummel testified that Vice Presi-
dent Robert A. Grannis OF the Mutual
was the executive officer who had super
vision over the legislative work. He said he
believed that in 1904 the Mutual Life paid
out for this work probably $i5, 600. Answer
Ing Mr.. Hughes, he said that he Travelled
ABOUT the country, and kept track of legis-
latiVe measures affecting insurance When
asked Just what he did to defeat strike
measures or undesirable legislation he said
he tried to keep in touch with the persons
interested. He became acquainted with as
many members of the legislative commit
tees possible and presented such argu-
ments as he could.
He kept no accounts of disbursements
He told of his inability to defeat general
revenue bill in Nebraska and when Mr.
Hughes asked II his argument was not
persuasive enough said he was not magnet
ic enough to win out against the railroads
who had a combination against the life in
surance companies.
You were dealing with intelligent men.
were you not? asked Mr. Hughes.