TESTIMONY.. AFTERNOON SESSION. MORRIS FRANKLIN sworn: Examined by Mr. MOAK: THURSDAY, March 22, 1877. Mr. FRANKLIN Mr. Chairman,' perhaps I may be permitted to say, before being examined, that at the time I received Mr. Bixby's resolution we were engaged with all the committees of the corporation in an investigation of our affairs prior to our annual statement. The time passed that we were to answer the resolution, and I would say that we were unusually busy and our not answering it was an oversight and was not intended as any discourtesy to Mr. Bixby or the committee. I have prepared a statement which I shall read to the committee. The statement is as follows: DETAILED STATEMENT Of salaries and all other fees, compensation or donation paid to officers, medical examiners, attorneys, counselors, and all other employes of the New York Life Insurance Company, during the year 1876. Amount of salary paid to president during the year.. Amount of all other fees, compensation or donation, if any, paid president during the year The duties of vice-president, secretary and actuary, during the year 1876, was performed by one person, and the amount paid to him for salary during the year Bonus.. Total ... Amount of salary paid to medical examiners during the year, being three in number; these three being the only ones of several hundred who were paid a salary, Amount of all other fees, compensation or donation, if any, paid medical examiners during the year.. Total ... $25,000 00 6,250 00 $31,250 00 $25,000 00 6,250 00 $31,250 00 $11,000 00 30,491 03 $41,491 03 Amount of salaries paid to attorneys and counselors during the year.... Amount of all other fees, compensation or donation, if any, paid attorneys and counselors during the year, being over fifty in number.. Average amount of salary paid to all other clerks and employes of the company during the year, $1,271.50, being 71 in number.... Amount of all other fees, compensation or donation, if any, paid to all other clerks and employes of the company during the year.. None. $21,376 75 $95,364 70 $9,795 08 Morris Franklin, president, and William H. Beers, vice-president and actuary of the New York Life Insurance Company, being duly sworn, depose and say, and each for himself says, that they are the above described officers of said company, and that the foregoing detailed statement is a full and correct exhibit of the amount paid in salaries, fees or compensation or donation to the president and vicepresidents, secretaries, actuaries, medical examiners, attorneys, counselors, clerks and other employes of this company during the year ending on the 31st day of December, 1876. MORRIS FRANKLIN. Subscribed and sworn before me, this 19th day of March, 1877. By Mr. MOAK: } WM. MENZIES ADAMS. Q. Are you the president of the New York Life Insurance Company? A. I am. Q. And this paper is sworn to by you! A. By myself and the vice-president, being the only two officers of the company. Q. You don't have a secretary? A. No, sir; we have but two executive officers. Q. Is that all the statement you have to present? A. Yes, sir. Q. Your first statement is that of the president's salary of twentyfive thousand (25,000) dollars-is that the regular salary of the president? A. It has been for the last few years. f Q. For how many years? A. For the past four (4) or five (5) years. Q. Previous to that time what was the salary greater or less ? A. Less; about ten thousand (10,000), if my memory serves me. Q. Up to about five (5) or six (6) years ago? A. Yes, sir. Q. And then it was increased to twenty-five thousand (25,000) dollars? A. Yes, sir. Q. And has remained at that ever since? A. Yes, sir. Q. You speak of the compensation paid the president beyond that, six thousand two hundred and fifty dollars ($6,250); how is that arrived at? A. By virtue of a resolution passed by the board in consequence of the receipts, and business of the company being very prosperons during the year; it is a bonus. Q. At the end of the year a bonus was donated to the president? A. Yes, sir, during the past two years. Q. And in 1876 the bonus was six thousand two hundred and fifty (6,250) dollars? A. Yes, sir; twenty-five (25) per cent of the salary. Q. That was not in pursuance of any agreement? A. No; voluntary on the part of the board. 2. Was that the whole sum the president received from any source, and all sources connected with the business of the company? A. That is all. Q. During that year did the president have any other business than this A. No, sir. Q. Was he in any other way connected with any other corporation, fire, marine, or any other business? A. I am director in three (3) fire insurance companies and director of two (2) banks. Q. What fire insurance companies? A. The Arctic, the Empire Fire-it should be two (2); then there is the Central Bank and the Flushing and Long Island Bank. Q. You were director in those banks also? A. Yes, sir. Q. What salary did you receive from the insurance companies? A. Nothing whatever. Q. No compensation of any kind? A. No, except at the quarterly meetings of the board we are paid five dollars ($5) apiece. Q. Well, now, as to the banks? A. None whatever, except at the Central Bank, when at the half-yearly meetings we receive five (5) dollars each. Q. Your vice-president received the same compensation as the president? A. The same, exactly. Q. Both in regard to extra compensation and salary? A. Yes, sir. Q. Was he connected with any other business or corporation? A. None whatever, sir, except I believe he is a director in the Farragut Fire Insurance Company. Q. Who is the vice-president? A. William H. Beers. Q. He acts also as secretary and actuary? A. Yes, sir. Q. Does he receive any additional compensation for services rendered in those capacities? A. None whatever. Q. His large salary is to compensate him for working in the three (3) positions? A. Yes, sir. Q. Well, now, you have three medical examiners at the home. office in the city of New York? A. Yes, sir. Q. And they are paid in the aggregate eleven thousand (11,000) dollars? A. Yes, sir. Q. How much is the largest sum you pay to either of them? A. Five thousand (5,000) dollars salary; I think so. Q. And the others receive about three thousand (3,000) each? A. Yes, sir, between three (3) and four (4) thousand each. Q. You give the amount of all other fees or compensation given to medical examiners at thirty thousand four hundred and ninetyone dollars and three cents ($30,491.03); that includes medical examiners through the United States? A. Yes, sir. Q. What is the average paid for medical examinations? A. The average is four (4) dollars, but we sometimes pay five (5) dollars; five dollars is the maximum. By Mr. WEIANT: Q. Is that determined by the amount of the policy? A. No; it is determined by the contract we make with the examiner. Q. Do you make a specific agreement for each examination? A. Yes, sir; per capita. By the CHAIRMAN : Q. The medical examination fee has nothing to do with the policy? A. No, sir. By Mr. MOAK: Q. You say you have no attorneys or counselors paid a salary? A. No, sir; we have not any. Q. You have no regular counsel? A. Yes, sir. Q. You spoke of the amounts paid to different attorneys and counselors as twenty-one thousand three hundred and seventy-six dollars and seventy-five cents ($21,376.75); what was the largest sum paid to either counsel? A. I think the largest sum paid to either counsel was paid for an argument in the United States courts at Washington; it was paid to Mr. Carpenter; it was twenty-five hundred (2,500) dollars. Q. Was that one of the southern claims? A. Yes, sir; I think there were two (2) counsel in that case. A. Yes, sir. Q. And that was the largest amount paid? Q. Well, now give us the next largest? A. I suppose it was from that down to fifty (50) dollars. Q. Have you not a counsel you are in the habit of going to for advice? A. Yes, sir. Q. How much do you pay him? A. I think we paid him last year twenty-five hundred (2,500) dollars. Q. And that is the only amount you pay to any one in New York? A. Yes, sir. Q. Who is that? A. It is Fullerton, Knox & Crosby. Q. Have you any other counsel ? A. None except those who examines the titles. Q. Who pays him? A. The borrower. Q. Do you know what his receipts are? A. No, sir; I never inquired. Q. You have no means of knowing? A. I have not, sir. Q. The persons who pay the counsel are scattered all over the world, I suppose? A. No, sir; they are right at home. Mr. WEIANT: Q. Will you give the names of the attorneys employed? A. It is impossible for me to tell you; Fullerton, Knox & Crosby are the only ones employed in the city of New York. Q. Have you paid any others? A. No, sir; not in New York city. Q. I mean elsewhere? A. I cannot tell the names of any others elsewhere. Q. You cannot give the names of any attorneys? No, sir; they are entire strangers to me, personally. Q. Cannot you give the names of them? A. No, sir, I cannot. Q. Do you know attorneys have rendered services during the year? A. I have no knowledge; I know by representations made. by agents. Q. Where? A. In localities where the agents are employed. Q. Do you authorize them to employ counsel to represent you? A. We do, sometimes. Q. Have you? A. Yes, sir. Q. And you cannot state the names? A. No, sir. Q. Has your company employed any other counsel than Fullerton, Knox & Crosby? A. No, sir; not in New York. Q. And paid no other firm a dollar? A. No, sir; not to my recollection. Q. Have you had any contested cases in New York during the past year? I think not; no, sir; not any. By Mr. MOAK: Q. At the commencement of the year 1876, how many policies. have you had in existence; or let me ask you, in the first place, is your company a stock company, or mutual? A. Mutual, strictly. Q. Now, give us the number of policies you had in existence at the commencement of year 1876? A. Forty-four thousand six hundred and sixty-one (44,661) policies on the 1st day of January, 1876, were in existence. Q. How much did they insure the persons who held them? A. One hundred and twenty-six million, one hundred and thirty-two thousand, one hundred and nineteen dollars ($126,132,119). Q. How many policies did you issue during 1876? A. Six thousand five hundred and fourteen (6,514), insuring twenty million, sixty-two thousand one hundred and eleven dollars ($20,062,111). Q. How many policies lapsed, should you say, during the year, so as to cover all the policies that expired during the year? A. Well, I suppose, in round numbers, I should suppose from three (3) to four thousand (4,000); I cannot tell, exactly. Q. In that time do you include all that expired by death, or that were allowed to expire in consequence of non-payment of premium? A. Yes, sir. Q. How many lapsed by death of the insurer, or about how many? A. Well, probably about three hundred, or three hundred and fifty (300 or 350). |