The Providence news. (Providence [R.I.]) 1891-1906, 1905-09-08
N. Y. LIFE
PAID BIG
SALARIES

New York. Sept. s.-The salaries paid
To the officers OF the New YORK Lfe
company were the subject OF the open
ing inquiries when the insurance inves-
tieation was resumed today. Edmund
Randolph. treasurer Of the New YORK
Life. testified that the salary OF President
John A. MacCol Of that company had
been increased from 100000 in 1892 TO
$50. 900 in 1895. s75, 900 in 1896 and 500, 600
since 1901.
The salary OF George w. Perkins. vice
president Of that company, Mr.. Randolph
testified. was increased from $4,000 In
1898 to $25, 900 in 1897, 100000 in 1900
s7b. 900 In 1901 n then reduced TO
1875. 900 IN 1902.
The reduction was due TO Mr.. Perkins
going into partnership with j. p. Nor
gan. Mr.. Randolph's statement of the
salaries Of the other officials showed a
steady increase.
John Clahin. a director and member
OF the finance committee OF the New York
Life company. the next witness. described
the company's method OF making invest
ments through the hnance committee.
The lists az investments as a rule were
prepared. he said. not by Individual but
by a great number OF financial institu-
tions-practically the whole financial COM
munity.
The proposals were first passed on by
a subcommittee, which eliminated the
impossible ones.
Does the New York Life enter into
syndicate a~greements7" asked MT
Hughes.
Yes" Mr.. Clanin replied.
do they come before the sub-commlt-
tee OF the finance committee?'
"No: they come before the whole fl
nance committee"
"Doesn't the New York Life enter Into
syndicates when It does not take the
bonds itself7"
ut never enters into syndicates unless
satisfied IL is a good thing for the New
York Life 20 hold bonds the syndicate
handles IL never enters into syndicate
transactions except with the intention or
taking bonds"
Mr.. Claim said the New York Life COM
pany received 1890 profits as n memhar OF
the syndicate which underworld SOME OF
the japanese 6 per cent war bonds, first
series.
Mr.. Hughes counsel for the committee,
said that evidently the insurance company
had I'm this instance received its share OF
the profits realized received by the syn
dicate from the sale of bonds TO the pub
lie. II was shown that the New York
Life company participated TO the extent
OF 1000 pounds in the syndicate which
disposed OF the second series of s per
cent Japanese war bonds. The syndicate
was not called upon to accept any OF the
bonds and therefore the New York Life
took none OF the bonds by withdrawal.
Mr.. C1ahin described other syndicate
operation.
II was next shown that though the New
York Life did not withhold from the
market any OF its syndicate holdings OF
bonds, II afterwards went into the market
and bought very largely, thereby adding
TO the syndicate profits.
participation ef- the NewNYeFk life
to the amount OF 50. 0oo. 900 in the syndicate
that handled bonds OF the Atlantic Coast
line was taken up.
on this deal Mr.. Clahln said the New
York Life made a profit OF cash balances
OF the New York Life in the banks OF the
United States and Canada from Septem-
Der 1900 to August 81. 1905, were put In
evidence. They averaged about $1,000 900.
MIR. Hughes asked Mr.. Clafin II with so
large n sum at his command IL was neces-
sary for the company to bind itself not TO
sell the gonds for a year.
New York Life could with absolute safe
ty tie up three-fourths OF it's assets for
five. six. eight or 10 years. said Mr.. Olaf
lin.
Mr.. Hughes and Mr.. Clahin argued as
TO the beneficial results OF these syndi-
Gates 10 the New York Life. Mr.. Claim
based his defence Of the holding agree
ments upon the benefit 20 the vendors Of
the knowledge that the company would
not be In the market Immediately to
dispose OF their holdings and so compete
with the first issue OF the bonds. Con-
sequently 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. The witnesses
said that within the past FIVE years he
might have" participated IN. the syndi-
cate transactions OF the company. but
that he had not done so within the last
year.
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