The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-09
CANAJOHARlE. N. r.

named by a committee. Any money paid
in excess OF the purchase price was, accord
ing to the terms Of the agreement, to be
d sbs saa and New York %
The witness admitted that through the
trustees the New York Life In effect con-
troled the voting power Of the trust COM
peany.
Trust Company WI when en- the sy 3ana shs
capital stock was increased to $4,000. 900.
The purpose O the increase was to acquire
the stock of the Continental Trust Com
pany, which was capitalized at 81 ,0Oo, 900.
Its stock was acquired BY issuing share
for share in the New York Security d Trust
Company.
All Of the stock Of the Continental was
wiped up and the New York Security Com
pany acquired all OF It's assets. Later,
81 900, 600 more Of the New York Security
4 Trust Company stock was issued, all OF
pany at $500 share. Mr.. Randolph said
that besides himself President Mccall.
George W. Perkins and Mr.. Langdon are
directors Of the trust company
SYNDICATE DEALS.
In speaking of the New York LIES syndi-
cate transactions MIR. Randolph said that
it often happens that partioipations are
a aipeso ia ' Kuhn, Loeb 1 Co., 10 said.
merely notify them by letter that they
will extend to the New York Life certain
participation at a certain price. The New
York Life acknowledges the letter, accepts
with thanks and that Is all that transpires.
out a cali and issues syndicate Certificates
for the participation. Mr.: Randolph ad-
mitted that the New York Life knew. nothing
about the profits that were made. 1t bad
to rely entirely upon the honesty OF the
syndicate managers. He said 1t wasn't
details in regard to the profits He added:
Il don't think you would be In syndi-
cate again if you made such request
.Mr. Randolph admitted it was very much
like blind pool" but later he requested
to have this struck out, as he ives joking,
New York LIES finance committee, ad-
mitted that he was member OF the Inter-
national Merchant Ms rine syndicate in
which the New York Life also had taken
a participation. The New York Life did
not, however, acquire any Of these bonds.
BIO NEW YORK LIFE SALARIES.
Mr.. Randolph at the morning session
submitted TO the oomnittse a LIST Of salaries
from 1877. The exhibit shows that the
president OF the company In that year
received Ssl ,2SO. President MoCall's salary
at present Is 100000 year. In 1890. the
year OF his election to Office, his salary
was $4,000 for the first six months and
1894 and 1905 he got $4,000; from 1898 to
1900 inclusive he got 5000. year later
his salary was raised to the present amount.
The exhibit shows also that George W.
Perkins, vice-president OF the company,
drew salary IN is9s' when he T n;s elected
was. raised from $50 900 to $4,000. This
advance was explained by Treasurer Ran,
dolph in that j. p. Morgan 4 Co. had offered
Mr.. Perkins good place and he had declined
1t. The advance, the witness said, was
voted in recognition Of Mr.; Perkins's merit;
a position in the Morgan firm, his salary
was reduced at his own request to $4,000
a wear. as he still retained his position as
vice-president Of the New York Life.
John Clafin OF b. B. Claim co: testified
that he had been trustee OF the New York
the finance committee with G. W. Perkins,
Woodbury. Langdon, E. d. Randolph, ]. 8.
Kennedy, Alexander E. Orr and g. 4.
Morrison. The finance committee, he said,
meets twice q week. Questions Of the com.
pany's Investments are usually considered
those that are obviously undesirable. The
members Of this sub-cotnmittee arc Mr..
Langdon Mr.. Perkins and Mr.. Randolph.
The subcommittee, unlike the sub
committee Of the Mutual Life, has no AL:
thority to. buy securities in advance OF
except in special cases.
HOW THE sYND1cATEs ARE WORKED.
Syndicate transactions are first ought
to the attention Of the finance committees
subcommittee II the offers to paraciate
in them come to the company on days when
the finance committee docs not meet.
Whenever it is possible. the offers are
submitted to the entire finance committee.
us ESd'e to i1 Know ae whssSeT tie NJ" YORK
Life ever entered into any syndicate OPERA.
tions in bonds some OF which 1t did not Itself
acquire ,..,., ~ i. ,,..,s,, ,,...,,r
the bonds, was the witnesses reply
Then he added: It may seem practical
to us to sell the bonds, but we never enter a
syndicate unless we are satisfied that the
transaction is safe and will be for the benefit
Of the New York Life.
Mr.. ClaHin said that the company with
drew its underwritten bonds instead Of
Offering them to the public whenever it
was able to do so.
IN THE MARKET FOR BONDS.
But the fact is said Mr.. Hughes, that
the New York Life has been considerable
participatsons in syndicate agrsements;
that while there has been no call on the
members of the syndicates and the COM
pany has derived profit from its partici-
patton, it has entered the market and bought
bonds IN excess Of its allotments. thereby
furnishing profits which were divided
among the syndicate members
Mr.. Hughes called the attention Of the
witness to transaction which the New
York Life had had In New York Central
debentues The life insurance company
had purchased q 100000 Of these bonds
under agreement that they would not dis
pose Of them for a year.
Mr.. Clafin contended that the transaction
in Central bonds was perfectly proper for
the New York Life. The New York Life.
he said, never under any conceivable cir
oumstancee would be called upon TO use
oven fourth Of It's assets In any one year,
and the company could without danger tie
up three-fourths OF its assets under terms
similar to those in the New York Central
bond transaction. Besides, he said, tho
New York Life gains decided advantage
in the matter Of being able to get the bonds
at a lower price than would be possible
under any other circumstances.
O. Don't you regard 1t - q serious matter
that the New YORK Life should put itself into
. position where IL cannot distribute q large
AZ