The citizen. (Honesdale, Pa.) 1908-1914, 1911-02-01
DAYS or FANCY
SALARY PASSING
Epidemic Of Reductions Strikes
American Financial World.
STEEL COMBINE SETS PACE.

Farrell Given $4,000 as President as
Against 100000 Received by Corey.
Equitable Life to Shave Morton's
$4,000 to Prevailing Insurance Sti-
pend of $4,000.
There appears to be an epidemic of
lowering the big salaries of the in
dustrial and financial world these days.
The steel trust showed it's symptoms,
and now comes further evidence in
the Equitable Life Assurance society's
Intention to pay its president $4,000
Instead of SS0,O00
The death of Paul Morton, president
Of the Equitable, has furnished OPP
portunity for the reduction. 1t was
said the trustees probably will insist
en- the lower salary when electing his
successor on the theory that S50,0OO
would be sufficient to command the
services of the ablest man in the life
insurance business. Those who took
this view pointed to the fact that
Charles a. Peabody, president of the
Mutual Life Insurance company, was
drawing only $4,000 year.
Corey's Pay Cut In Half.
This followed the news that the sal
airy Of James A. Farrell, new president
Of the United States Steel corporation,
would be $4,000 year instead of
100000, which had been paid to W. f.
Corey, the retiring president. Those
who know say that $4,000 hereafter
win be about the maximum pay of
States.
When Morton assumed the presiden-
ey of the Equitable in 1905 the salary
Of the president was 100000 a year
That amount had been paid for years
to James w. Alexander, and it was
supposed that Morton would receive
the same amount Because of the pub
lie agitation respecting the high cost
of insurance management in the Unit
ed States and the unpleasant disclo-
sures attending the Armstrong investi-
cation in 1905, however, he asked that
his salary be cut 20 per cent, in order
that he might ask other officers in the
Equitable to accept similar reductions.
With the possible exception of the
presidents of one or two banks and
trust companies, there is not a finan-
cial institution in Wall street which
reimburses it's president at higher
salary than $4,000 a year. One trust
company, in addition to paying 500
600 salary, gives the president a hand
some bonus at the year end.
Investigation Shaved Salaries.
There has been an extraordinary
change in corporation managemc'
since the days of the insurance invest
CATION in 1905, when Richard A. NJ '-
Curdy, testifying before the Armstrong
committee, told how he had been pleas
antly surprised one day on hearing
that the salaries committee of the Mu-
tual Life had, without any suggestion
from him, raised his salary from $1G0,-
600 year to S150OOO. McCurdy ad'
mitted that he was pleased at this ac-
ton, but that he had received the in
formation as a matter of course and
only felt honored because he would re-
ceive the highest salary paid to the
president of any life insurance COM
pany in the United States.
The salary of McCurdy probably will
stand out for all time as the maximum
paid to any insurance president in the
world.
Outside of New York city $4,000
salary, in the words of Wall street
man discussing the subject, "looks Il.
fip oS q hOusn" With the eXcpDtiOu
of one or two bank presidents in Chi
eago, no bank officer in the west re
ceives more than $4,000 a year