The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-04-06

unable 20 give 1t Immediate attention The direct
Ors also requested the Commissioner or the State
rent examination which he consented to do. and.
has associated with himself the undersigned to as
Upon assembling at the ofnices Of the society the
undersigned at once entered upon the fnveeiRa-
ton OF Mr.. Goves charges made to the New YORK
Insurance department., ana since widely spread be-
fore the public IN printed form. The Massac
Commissioner, 1T the meeting called TO make the
notified In writing OF the Investigation, ana mad in
vlted him 70 furnish testimony IN support Of his
charges, and presented the af1davit or personal
service OF the notice upon him.
Mr. Cove dia not appear or offer any testimony to
sustain his allegations.
The minutes Of the society ana OF the several COM
mlttees, The account bCOxs cash books and cheek.
books or the society were then laid before the un-
dersgned and carefully examined. The officers OF
the society, and SUCH other persons as the UNDER
signed desired, were examined under oatn and
each specific charge was carefully ana exhaustivelH
inquired into, and the undersigned certify that,
excepting a clerical error III publishing among the
list OF paid policies conte sted claim which error.
was recIiied as soon as discovered, the charges
and specifications are untrue and malicious. Tno
sa Of the policy referred TO was returned TO-
ance with the rules Of the departments with regard
10 contested policies which fact cOrr0Dorates other
testimony showing that the error was merely clerl-
The undersigned, following in their investigation
are presented, 1nd:-
J.. That the society possessed the legal power to
society, at the corner OF Broadway and Cedar street.
ana the Undersigned refer to the opinion OF PROBES.
sor Ineodore W. Dwight respecting the same
2. .Tney further ind that the erection OF the
building was wise and Judiclous measure and IA q
come OF more than flve and half Is ~ per cent,
leaving the society free from rent Tor its own Offices;
anu anu .e vaiue OF 1ae oces occupied Dy the 30.
IL has no money invested to better advantage.
g. They further find, tnar IN reference to The COM
pensation Of the officers, both the method pay
ment and the amount paid as charged, are untrue,
From the evidence submitted TO them the aggregate
sum paid for salaries by the society during the first
eleven years OF It's existence, as ompared with its
income during the same period, produces ratio at
least favorable as that OF any life cOmpany-iOr
the same years from 1860 to 1870, inclnslve-or-
ganiZed during the year in which the Equitable was
time, with the exception OF two the preliminary exc
penses OF those TWO companies not being taken into
gained more than fifteen years previous to 1900 /
4. They further find that no loan was made ON
Tne Eon OF Y Sepemoer 1870 q At any other sme
stock. But tney find, on the contrary, that no loan
has been made by the society except upon securi-
s. The charge that the building committee any
OF the directors are or were interested directly Or
indirectly, In the quarry from which the stone for
the building was taken, or pecunarly interested m
any other contract OF the society, was most care
fully and mlnutely examined, anu the undersigned
declare the charge TO be both laIse ana Malicious
On the contrary the Undersigned find that the ereC
ton OF the building In all It's details was carefully
watched over by the directors, ana particularly BY
the Building Committee, with as much attention al
prudent man gives to his own business.
6. That the mode OF loanlng the money of the
corporation was particularly examined and meetd
the approval of the undersigned, who find the
things being equal, principals are given The prefer
ence over brokers. !
I. The Secretary of the society, who formerly waA
IN business as o fire insurance agent and general
broker, rel1nquished the charge or the fire insur.
nected with It three years ago The Secretary has
not attended to the ire insurance business OF the
company and no director or officer IS or has been
loaned money ON policies, as charged.
directors OF the society have not loaned the money
OF the society to themselves upon securities not
allowed by law, and that no loans nave been made
through the favOritsm Of its officers and directors
on inadequate security or contrary TO law.
9. In the opinion OF the undersigned the Direct-
society wastefulv or extravagantly, have managed
them prudently and successfully, and have made
no false returns to the Insurance Department J
10. The rates Of commission paid TO agents, as
charged are untruly stated. No salaries are paid
to agents In addition to commissions. y
IL. They ind from the testimony given by the
officers and directors tnat the establishment OF AM
agency In Great Britain has not proved a failurei
that the agent sent there Is not inexperienced tho
insurance business that he receives salary, Du1
that his commissions ere guaranteed for three years
to an extent OF $4,000 per annum; and that the
suit Of his lab0rs III Introducing the sOcety's BUSH
ness there, has been satisfactory 10 the Board OF
IL. The charge tina; money has been waste fully
spent upon the building is sufficiently answered by
Is. They further ind that the society does not
falsely advertise Itself as mutual company. the
necessity OF capital stock arises from the fact that
before the organization OF the society laws were
enacted IN New York requiring all companies Or
gained after such enactment to have capital
stock and to make deposit OF $100, 900 with the In
surance Department as guarantee TO policy hold
ers. The annual dividends upon this stock are
earned by the investment Of the capital; all OF the
profits are divided among the policy holders; the
stock bears no such market price as IS charged and
ship Of the stock can only be desirable for the pro-
lection OF the company. The provision as 10 stock
is not concealed from policy holdersa
but on the contrary the directors are OF opinfont
that 1t forms one Of the greatest safeguards OF the
IA. In conclusion the undersigned desire to say.
that they are unable TO find an honest motive for
the nas sawn 30 on Gya
efficient management Of the society. The Massa-.
chusetts Commissioner with Professors Theodore
Junus h. Wheeler. of the West Point Military Aca-
deny. will at once proceed TO examine the details
tion, ana Messrs. Upton, Spaulding, Latasa Kellyi
schwab and Fogg will examine Its assets and
which non the und ger W re-
are concluded. From the wide publlcty
given to these charges s Is though. best ITO to
desire to express their unqualified APP
prevail OF the action OF the society In resisting the
these charges And finally the undersigned take
great pleasure In bearing their unanimous testi1
mony to the faithful and successful management oy
the trustees officers OF the society Of the great
trust reposed In them.
Insurance Commissioner Of the Commonwealth OF
!" a'S'o""T''''' HENRY F. sPAULDING.
GUSTAV. SCHWAB.
GEORGE B. UPTON.
WILLIAM H. FOGG.
FELICIANO LATASA.
EUGENE KELLY.
DAVID BOWS.
NORRIS X. JESUP.
JUNIUS b. WHEELER.
THEODORE W. DWIGHT.