1951 SCHEDULE C.-Summary of direct placement acquisitions of all types in calendar years 1949–51, par values (000's omitted) Preferred stocks Total Category SCHEDULE D.-Schedule of direct placement acquisitions of all types in calendar years 1949-51 by type of business-par values (000's omitted) SCHEDULE D.-Schedule of direct placement acquisitions of all types in calendar years 1949-51 by type of business—par values (000's omitted)-Continued SCHEDULE E.-Summary of direct placement acquisitions of all types in calendar years 1949–51 in which other companies participated par values (000's omitted) NEW YORK LIFE INSURANCE Co.-DATA CONCERNING DIRECT PLACEMENTS REQUESTED BY THE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE OF THE HOUSE OF REPRESENTATIVES By letter of April 21, 1952, addressed to President Devereaux C. Josephs, of the New York Life Insurance Co., the Honorable Louis B. Heller, chairman of the Committee on Interstate and Foreign Commerce, requested data on direct placements for the years 1949 through 1951 under seven topics. These topics, together with requested data, are as follows: Topic 1.-If your company engaged in direct placements, state the extent of such participation. The enclosed schedules indicate the type of information we should like to obtain. Show data for equity and nonequity securities sepa rately. Answer. The data requested are set forth on sheets annexed hereto and marked "Exhibits A and B." Topic 2.-Show in general terms the types of business of your borrowers and the general purposes for which such direct loans were made. Answer. The data requested are set forth on sheets annexed hereto and marked "Exhibit C." Topic 3.-Indicate the principal types of direct placement issues in which you participated. Answer. The term "types of direct placement issues" has been interpreted to mean the type of security instrument involved. On this basis, the data requested is set forth on the sheet annexed hereto and marked "Exhibit D." Topic 4.-Describe the minimum or basic standards, if any, as to size of borrowers, nature of business, financial status, etc., which you apply in the consideration of direct placement loans. Answer. The New York Life has no minimum or basic standards with regard to the size of borrowers or the nature of their business. Each investment must comply with the standards for legality set forth in the insurance law of the State of New York. As for the borrowers' financial status, the company does not employ formulas of any kind; each case involves a decision, based on judgment, as to the ability of the borrower to service the proposed debt. The same analysis of facts, scrutiny of safeguards, and application of judgment is employed regardless of the route for financing-direct or public-chosen by the borrower. Topic 5.-If your company has resold any direct placements, indicate the extent thereof. Answer. The data requested are set forth on the sheet annexed and marked "Exhibit E." Topic 6.—Indicate the extent to which your company participated with other companies in direct placements (percentage of total number of issues and amounts involved). Answer. The data requested are set forth on the sheets annexed and marked "Exhibits F and G." Topic 7.-Indicate the extent to which agreements for direct placements have any provisions for the registration of the securities purchased. Answer. The data requested are set forth on the sheet annexed and marked "Exhibit H." A representative provision for such registration of securities is as follows: "This company agrees that after the execution of this agreement and so long as you shall hold any of the bonds, if at any time this company shall determine to take action to register any of its securities under the Securities Act of 1933, as now in effect or hereafter amended, it will upon each such determination (until the bonds shall have been registered under said act) promptly give you notice of its intention in that regard and, upon your request in writing made within 1 week after the receipt by you of such notice, this company will at the same time, at its own expense, use its best efforts to register the bonds under said act if and when such other securities are so registered, and to cause such registration to become and remain effective and, if required in connection with such registration, this company will use its best efforts to qualify the mortgage as supplemental under the Trust Indenture Act of 1939, as now in effect or hereafter amended." |