New-York tribune., 1906-07-03
PERkINSQUITSN.Y. LIFE
FOWLER REPORT HEARD.
Syndicate Participation Encused-
-Four Neso Directors Chosen.


George W. Perkins and three other trustees Of
the New York Life Insurance Company severed
their connection with the board at the meeting
held yesterday for the reception Of the final re-
port Of the Fowler investigating committee No
startling disclosures were made I'm the report,
which, after eEcusing the old methods OF syndi-
cate participation and joint accounts. says that
they have now been prohibited. The report re-
fers 20 the fact that the relations OF Andrew
Hamilton TO the company and the subject OF
campaign contributions had been dealt with in
previous reports. gives q general survey OF the
work Of the various departments and commit
tees. and says. in closing:
Your committee reports. as a result OF its in
the trustees Of the company has directly or in
directly derived any pecunary benefit through
his nduciary relations TO the company.
The resignation Of Nr. Perkins had been on
the table since last December He asked for its
acceptance because OF the law prohibiting trus-
tee from proating by any bond syndIcates which
might have dealings with his company Law
yers have held that this would prevent any
bankers from serving trustees unless they
were willing 70 xacTihce some Of the profits OF
their business
James A Blair. Norman 2. Rean and H. WAL
ters also handed in their designations for the
ZANE reason The four designations were ac-
snAzed TO an their places:
Judge Horace Harmon Lurton Of Nashville
Tenn judge OF the United States Circuit Court
9Th District
James H Bcsels. er-Conroller OF the Cur
rerloy Of the United States. president of the
Commercial National Bank OF Chicago.
George r. Seward, president OF the Fidelity
And Casualty Company vice-president of the
Wilson Aluminium Company, United States Min
eysterns OF Taxation Of New York" 1a02). and
number Of other contributions on economic and
sociological topics
Anton A Raven, president OF the Atlantic
Mutual Insurance Company. OF New York; trus-
tse OF the Atlantic Safe Deposit Company, the
Metropolitan Trust Company and the seamens
Bank for Savings. ard director Of the Fidelity
and Casualty Company, the Home Life Insur-
Azoe Company and the New York Fire Insur-
snce Company and the Mechanics National
Bank
Every line ot the Fowler committee report Is
favorable 70 the company. OF the work OF the
finance COMMITTEES OF tbs board, of which Mr..
Perkins was the leading member prior 70 his
resignation last December, il is said:
To supervise and direct the investment Of from
x9oo,Ooop0 10 S4eO,oc0,Oo0 Is obviously a task
imposing grave burdens and responsibilities. II
SIS not 10 be expected that transactions OF such
magnitude could be carried year after year
without some Losses well profits. IL appears
that IN the i've yearF ls'Dl TO 1905, both inclu-
s1ve, the purchases OF securities amounted TO
S2Slp52 1o4 "a the sales 20 SlOls5S1s BIB 30 be-
SIDES redemprons OF maturing securities We
find also that the profits realized from sales and
syndicates were sS,642, ,695 66. after deducting
losses on sales OF securities during the same
period Of S702679 So. not including any loss that
may be ultimately sustained the United Col
lieTies first per cents
At the end Of its discussion OF the finance
committee the report gives it this eulogy:
These results have been attained by the fore
sight close attention to its duties and enlight-
Der OF the finance committee has, directly or
indirectly pecuniariy participated In or ;'rofted
by the transactions OF the committee.
The report pats the company on the back for
having originated and organized the branch
Office system as opposed to the general agency
method Of getting business. and recommends
that IL be retained as being In the long run the
It is stated that the Limitation by the Arm
strong law of the amount OF business the
company may do in any year TO S1JOOo0000 will
compel an entire reorganization OF the working
force of the company. which has been adapted
90 doing annual new business Of S3cOooO,ccO.
The committee recommends that the foreign
business be maintained, but suggests that it be
critically analysed with view to retiring from
regions where the results least favorable and
promising. The old system Of syndicate partici-
patton IS defended in way that seems TO show
q note Of sorrow that they have been made IL
legal for the future The report says:
ParticipatiOns in syndicates and purchases and
sales Of securities joint account are now
absolutely prohibited. Syndicate participations
were a source OF large profits to the company
and a means OF obtaining desirable investment
securities at the lowest price They were never
used for the profit advantage OF individuals
directly or indirectly. Transactions on Joint ac-
count were temporary eXpedient from time to
time, either 10 cheaper the cost OF investment or
realize the utmost possible amount from Sc
curities which the company desired to sell
rather than TO holland the record shows that
the cOmpany'G purpose was almost uniformly
achieved.
1t was not the object OF any OF these transac-
SiOns 20 benefit others at the expense Of the
company, and any benefit to others, such as
The brokers who carried them through, was
merely incidental TO the larger benefit to the
company, and than fair comDensa-
tiOn for their services.
After stating that improvements have been
made in the bookkeeping. that payments Of