The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-09-09
CLERKS !. SIGNED J | g. |. [: D
F0|..R|:|. So s 81! ,3|.3|'5|;,0||'0..0. 81; D.
Remarkable Transa ction Revealed
BY Officers of New York
Life Company.
LAWSON LIKELY TO TESTIFY
New York Committee May In.
I'D vite Frcn;z,:ietd Z sFinlancier to
Tell What He Knows.
(By Associated Press.)

2s NEW YORK, September S,-To-dny's $
session of the Legislative Life Insurance
Inves tigatlng Committee was devoted cx-
{cllslvely to the affairs of the New Y ork
Life Insurance Com pa1y, and a searching
examination was y made "a Of Its officers
who appeared on. the stand. s!5s
II Beginning withrthef salaries paid the
Officers, which, Git was shown had been
largely increased, Fthe; line of inquiry ex-
tended through all the details offthe COM
Spany s participation i in various UNDER
writing syndcates for5 railroad securi-
ties, the New York Lies connection with
trust companies, and q finally near the
close of&the day, developed the fact that
1t was not an unusualithing for clerks or
messengers In the employ Of the COM
pany with salaries as low as $500 year,
to sign notes for millions OF dollars to
be used by the company In relieving It's
books Of undesirable securities.
Lawson May Testify.
3 y An interesting feature of the day was
the statement that Thomas w. Lawson,
of; Boston. might be called as a witness.
The committees chairman, State Senator
Armstrong, said If the Information Mr..
Lawson is supposed to hold could not be
secured from other sources, the Boston
5financier would be asked to testify. Not
being a resident of the State, Mr.. Law
son cannot be compelled to give testi-
.mony.
Officers y the New York Life Com
5pany testified to-day that on#one occa-
sion 1t became necessary for the COM
pany to sell certain securities In order
to satisfy the Prussian government. Two
clerks signed notes nggregating So, 1886, :
900, and on the books the securities vap
peared as sold to these parties. although
they really had been turned over to the
New York Trust Company as securities
for the loan made on the notes of the
two Insurance company's employees.
John Clafln, member Of the Finance
Committee Of the New York Life tes-
titled at length as to syndicate agree
aments, defending them as beneficlal
Atlantic Coast Line Bonds.
The participation Of tho New York
Life to the amount of s3,O0O.0OO in the
syndicate that handled bonds OF the At
lantic Coast Line was taken up. Mr..
Clafln explained he could not remem-
her details of tho transactions
The managers of the Atlantic Coast
Line were Issuing 5000 900 bonds to load
Ing banks of New York and the New
York Life nt 81. less one-half per cent;
and later at o. less one per cent, an Tho
finance committee OF the New York Life
authorized the treasurer to take $2,OO0.-
900 Of these bonds. The collateral Of the
Atlantic Coast Line was Louisville and
Nashville stock,
On this deal, Mr.. Clafin said, the New
York Life made * profit, He said; "If
the New York Life We're to dispose Of
Its holdings carefully apd slowly as mn
individual would have no doubt, that
all such holdings could be sold at price
equal to that for which they were pur-
chased"
It was declared that since 1899, tho
New York Life Insurance Company had
not been connected with trust companies,
many is now held for the New Yolk Life
by a. committee Of trustees
The committee adjourned this aft ornoon
until 1880 o'clock next Tuesday morn
ing.