Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-08
QUESTION OF SALARY
Insurance Inquiry in New
York Today.
SOME HIGH FIGURES
TREASURER OF NEW YORK LIFE
ON STAND.
Syndicate Agreements Entered Into
Freely, According to
Testimony.
SOME HIGH FIGURES

NEW YORK. September s.-The salaries
paid to the officers of the New York Life
Insurance Company were the subject of the
opening inquiries when the insurance in
vestigation 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 in
creased from $4,000 In 1892 to $4,000 In
1893. $4,000 in 1886 and 100000 since 1901
The salary of George w Perkins. vice
president of that company, Mr.. Randolph
testified, was increased from $50 600 in 1893
to $4,000 In 1897, $4,000 in 1900 $4,000 in
1901 and then reduced to SO 0OO in 1902 The
reduction in salary was due to Mr. Perkins
going into partnership with j. F. Morgan.
MIR. RanGolph's statement of the salaries
of the other officials showed a steady in
crease.
John Clafin. 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 method of making investments
through the finance committee. The lists
or investments rule were prepared, he
said, not by individuals. but by a great
| number of financial institutions-practlc
ly the whole financial community. The pro-
posals were first passed on by subcommit-
tee, which eliminated the impossible ones
If the proposals came the day of the
finance committees sitting, the whole
finance committee considered the proposals
Does the New York Life from time to
time enter into syndicate agreements?"
asked Mr.. Hughes.
Yes Mr. Clafiin replied.
do they come before the subcommittee
Of the finance commttee?'
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"
Doesn't the New York Life enter into
syndicates when it does not take the bonds
itsef?"
TT never enters into syndicates unless
satisfied 1t is a good thing for the New
York Life to hold bonds the syndicate hand
les; 1t never enters into syndicate transac-
tons except with the intention of taking
bonds.''
Profits From Syndicate.
Mr.. Clafin said the New York Life In
surance Company received s.. 100 profits as
a member of the syndicate which under
wrote some of the Japanese war bonds.
first series. Lawyer Hughes, counsel for
committee. said that evidently the insur-
ance company had in this instance received
its share of the profit realized by the syn
cate members from the sale Of bonds to
the public.
1t was shown that the New York Life In
surance Company participated to the ex-
tent OF 100000 in the syndicate which dis
posed of the second series Of Japanese
per cent war bonds. The syndicate was
not called upon to accept any OF the bonds.
of the bonds by withdrawal The COM
pany. Mr.. Claim said. was member OF
the syndicate which sold the Pittsburg ter
minal bonds of the Wabash railroad, and
received a share OF the syndicate profits
therefrom, though it was not called upon
to pay out any money. In November. 1901.
he said, the insurance company realized
$40 O9S from the syndicating of the Oregon
Short Line As. though 1t was not required
to take any OF the bonds.
Bought Very Largely.
1t was next shown that. though the New
York Life did not withhold from the mar
ket any of it's syndicate holdings Of bonds
1t afterward went into the market and
bought very largely, thereby adding to the
| syndicate profits.
Mr.. Claflin explained that Japanese IS
varied very much in value and the bonds
may have been sold by the syndicate at
! one time. and repurchased by the new
| York Life at another under quite different
circumstances.
The participation of the New York Life
| to the amount of 100000 In the syndicate
| that handled bonds of the Atlantic Coast
| Line was taken UP. Mr. Claf1in explained
| he could not remember details or the trans
action.
The managers of the Atlantic Coast Line
| were issuing $4,000 600 bonds to leading
| banks of New York and the New York
| Life at "a. less u per cent, and later AT
| 81, less l per cent The nnanCe COmmlttSe
| Of the New York Life authorized the treas
| urer to take 100000 of these bonds. The
| collateral Of the Atlantic Coast Line was
Louisville and Nashville stock.
On this deal. Mr.. Cliiin said. the New
York Life made profit. He said: IF the
| New York Life were to dispose of its hold
| ings carefully and slowly as an individual
would, have no doubt that all such hold
ings could be sold at price equal to that
for which they were purchased.
In answer to questions concerning the
New York LIES participation In purchas-
ing syndicates to hold bonds for specified
time Mr.. Clafln said he did not consider
1t serious matter for the company to tie
itself up SO that 1t could not dispose Of
large blocks of stock for year.
Statements of the cash balances of the
New York Life in the banks Of the United
States and Canada from September 1900
to August 81 1905, were put In as evidence
They average about $12. 600 900.
Mr. Hughes asked Mr.. Claf1in If. with
large a sum at its command 1t was neces-
sary for the company to bind itself not
to sell bonds for year.
THE New York Life could. with absolute
safety, tie up three-fourths OF Its assets
for five. six. eight or ten years." said Mr..
Claf1in. There Is absolutely no harm In
tying our money up The finance commit
tee could save themselves much trouble If
they invested their money in the United
States or municipal bonds, and there could
be no objection unless some polcyhoder
asked why they were not getting higher
rate"