The Barre daily times. (Barre, Vt.) 1897-1959, 1905-09-09
SOLD BONDS
TO N. Y. LIFE
Director Admits Being In a
Syndicate.
HOLDS MANY DEBENTURES
Witness Declares Some Of the New
York's Investments Are Practi-
cally Not Secured-Atlantic
Coast Line Deal.
HOLDS MANY DEBENTURES

New York, Sept. 9.-John Claain, the
well known dry goods merchant, and
a director and member Of the finance
committee Of the New York Life In
surance Company, occupied the witness
stand during most Of the morning ses-
sion Of the Armstrong investigating
committee in the aIdermanie chamber
at the City Hall yesterday. Mr.. Claain
testified freely concerning the financial
transactions Of the company.
He admitted that the New York Life
frequently participated in syndicates,
and created something Of a sensation
toward the close OF his testimony when
he said that he had not only partici-
pated in certain of these underwriting
syndicates individually, but in at least
one instance had been a member of a
syndicate which sold bonds to the in
surance company. The laws expressly
stipulate that 10 director OF an insur-
ance company shall sell any securities
to that company at profit to himself,
and provide that director who engages
in such transaction may be removed
from Office
The bonds which the syndicate, Of
which MIR. Clafin was a member, sold
to the New York Life We're those Of
the international Mercantile Marine
company Mr. Clafin was interested
to the extent of 100000 He admitted
that the bonds had no market value
just now, but was certain they would
be worth all the company had paid
for them in time.
The witness also testified that the
New York Life had among its seeuri-
ties certain railroad debentures which
were, practically speaking, unsecured.
He said that in some cases the com.
pally agreed to take securities and hold
them for some months, and he told
Of an instance where it had paid ST.
s4,666.67 to ]. p Morgan 4 Co. for
its participation in syndicate, and
had later paid $4,000 TO a second syn
dictate, managed by Harvey Fisk & Sons,
to support the market. George w. Per-
kins, vice president Of the New York
Life, and chairman Of its finance com
mittee, is a partner in j, r. Morgan
4 Co.'S banking house.
At the close of the early session,
Charles =. Hughes, chief counsel to
the committee, intimated that Thomas
w. Lawson might be witness at the
inquiry. He said that no subpoena had
as yet been served on Mr. Lawson, but
that ii the Boston operator had any
statements he wished to make the COM
mittee would be glad to listen to them
even il Mr.. Lawson had not been sum
moned to appear.
McCall's Salary 100000.
The first witness at the hearing was
Edmund d. Randolph, treasurer of the
company, who verified list Of officers
and salaries from 1877 to date. From
this list it appeared that from 1877
to 1880 the salary Of Morris Franklin,
then president, had been S31 ,250 4 year:
that of w. H. Pierce, then vice presi-
dent, had also been $31 $50 FROM 1881
to 1855 the salary of Mr.. Franklin had
been reduced to $4,000 year, his
advanced years being given as a reason
for this reduction. From 1886 to 1889,
Mr.. Pierce, then president, had been
paid $4,000 a year. This had been
raised to $4,000 in 1890. In 1892
John A. Mccall had become president,
receiving $4,000 for his first six
months services and $4,000 for the Sec
ond six months. In 1884, '94, and '95
his salary had been $4,000; from 1896
to 1900 inclusive. $4,000, and from
1901 to the present time, St00, 900.
The reduction OF the salary Of George
w Perkins, the first vice president,
from SIS 900 year to $4,000 in 1902
was made, Mr. Randolph explained, at
Mr. Perkins own suggestion, he having
accepted a very remnnerative offe2 of
partnership in the banking house Of
J. p. Morgan & Co., and being on that
account only able to give part Of his
attention 10 the affairs 81 the insur-
ance company.