Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-04-10
EXONERATED.
Charges Against the Conduct of the
Equitable Life Assurance
Society Refuted.
A Full Investigation by a Committee Of
Leading New York Merchants
Their Reports.

The Hon. Julius l.. Clarke, Insurance
Commissioner of the Commonwealth of
! Massachusetts, having associated with
i himself the following eminent business
and professional men who are in no
manner connected with, or interestedin,
| the management of the Equitable Life
Assurance Society of New York, to in
vestigate its affairs, viz: Henry F.
Spaulding, of Spaulding, Hunt q Co.,
80 Worth street, New York; Gustav
! Schwab, of 0elrichs d Co., Bowling
Green, New York; George P. Upton,
! Boston, Massachusetts; William H
Fogg, of William H. Fogg & Co, go
| Burling Slip, New York: Feliciano La
| tasa, of Latasa q Co., 179 Pearl street.
New York; Eugene Kelly, of Eugene
| Kelly d Co., Il Nassau street, New
York. David Dows, of David Dows &
! Co., 20 South street, New York; Morris
X. Jesup Of NJ. K. JeslIp d Co., 50
| Liberty street, New York; Junius B.
Wheeler, Professor of Civil and Military
Engineering and Science of War, United
States Military Academy, West Point;
Theodore w. Dwight, LID, Professor
of Municipal Law, Columbia College,
New York, this committee have made
the following
REPORT
~ NEW YORK March 3d. 1877
In the month of January, ls7l, the Equitable
Life Assurance Society OF the United States
were informed by the superintendent OF the
insurance department OF New York, that La
Roy ;. 60iFe, who had insured his life in said 1
society about one year previous, for the sum
OF two thousand five hundred dollars had pre- |
sented certain grave charges against the dI- |
rectOfs aud management OF said society.
Whereupon the President OF the society ad- |
dressed the following letter to the SuDeTin-
tendent'
Honorable Geo. W. Miller, Superintendent of [
the Insurance Department OF the state of
New York.
Dear Sir-the counsel of the society has
handed to me a copy of the charges with /
specifications sworn to by policy holder. !
As some of these charges and specifications
have not the slightest foundation in truth, /
and i'll other cases are grossly exaggerated, |
and the truth perverted, and as fully believe /
each charge admits of the fullest and most
complete explanation, / have felt il my duty
to address to you this communication.
conscious that the affairs of this society
have been conducted by the officers with a
high integrity Of purpose and with a view 70 /
the best interests OF the policy1holders, and
having nothing TO conceal as to the condition.
of the society or the manner in which its af-
fairs are conducted, would respectfully re-
quest that in the exercise of that authority
conferred upon you by law and appointment
to your position as superintendent of the In
surance Department, you would institute such
investigation into the condition, affairs and
transactions OF the society as you in your dis
erection may consider that the presentation of
these charges demand.
"feeling aggrieved that charges so unfound-
ed should be preferred, Jealous of the honor of
the society and thai of ITS officers and direc-
tors, would respectfully solicit that, with as
little delay as possible, you would give your
attention TO the subject.
II am, very respectfully, your obedient ser
Signed WILLIAM c. ALEXANDER,
president"
The superintendent subsequently replied
that he would commence an examination of
the company az as early period as his official
duties would permit
Before an examination had been made by
the said Superintendent a person, protesting
TO be the representative of a newspaper in this
city, called upon the officers OF the society
and informed them that this newspaper
had in its possession, for publication, a copy
OF charges against the society, made by La
Roy 3. Cove, and that he, the professed repre-
sentative OF the newspaper, was prepared to
enter into negotiation for their Suppression
The officers Of the society refused TO pay for
upon published in the newspaper which the
person claimed to represent
The directors of the society again requested
the superintendent OF New York to make the
examination without delay. But in conse-
guence of the legislative examination of the
INSURANCE. Department OF this state, the Su-
perintendent was again unable to give il i'm
mediate attention. The directors also REQUEST
ed the Commissioner Of the state of Massaohu-
aminatisH, which he9opsented TO do and mas
associated with himself the undersigned to
IL !
Upon assembling at the offices OF the So
eiety, the undersigned at once entered upon
the Investigation Of Mr., t3eyss charges made
since widely spread before the public In print
ed form. The Massac husetts ColnnlissiDner nj
the meeting called TO make the Investigation,
stated that he caused Mr., Cove TO be notified
IN. writing Of the Investigation, and had In
vlted hlin q fafAish testimony IN sAppart of
sonsi seEvi5e aS the ndtios apoa ahfasi' im oi per-
Mr.. Cove did not appear or offer any testf-
uony 70 sustain his allegations. :
The minutes of the society and of the saver- ! :
al committees, the account books cash hooks
and cheque books Al the saciety We're then
.ald .geipfg tila sHaelssgned and carefully ex-
other persons as the undersigned desired, were :
examined under oath, and each specific charge =
was e,srefnily ca, and eShsastiyely INQUIRED into
clerical eErpr in pqhlishing among the list of
paid policies, a contested claim, which error
nd spe5ifisstiSss ar, Untrue and maiiciasfs
The amount Of the policy referred to was re- L
turned to the Insurance Departments as Z
Departments with regard to contested noli- I
eiest which fact eorrQbeFate other Testimony, I
showing that the error was nerely clerical. Z
cation the order in which the charges and la
speotncations are presented, md: IL
l. That the society possessed the legal pow G
or to erect their buildfng which contains the | +
offices Of the society, at the corner Of dread .
way and Cedar stree, apa tie Undersigned :
WI 4
Dwight respecting the same. 5
2. They further dnd that the erection of the
building was wise and Judicious measure, s
and Is a safe investment, yielding an in0yeas- a
hall % per cent, leaving the society free
rom rent for its own offices; and if the value c
q the Of1ces oceupied by the society is taken 8
INTO account, we are of opinion that IL has no / a
money invested TO better advantage. Ia
3 They further find, that in reference to the
Compensation OF the gfhceTs, both the method
II payment and the amount paid as charged, =
are untrue, FFpm the evidence submitted 10 / :
hem, the aggregate sum paid for salaries by 4
The society during the hrst eleven years Of its
as compared with. its income dur
ng the same peEiad, llredqoes a ratla AZ least
= :, layprate g that q e9y llts & company
able was organized or since that time, or even
prior TO that time, with the exception of two,
The preliminary expenses of those two COM
panles not being taken into accounl IN TIE es-
Innate, because they Me4e arganlzed more
lha8 lteen yeaJs prey lpps 70 ls83s $
4. They farther find that no loan was made .
on the 10Th Of September, 1870, or at any other Il
lime, upon New York. Central. and Hudson 8
River railroad stock. But they ind, on the n
contrary, that no loan has been made by tho
and IN aGcQrlaiide with lhelaW - - "
s. The charge that the building committee, r
1r aag Of the directors, are interested, /
directly or indirectly, in the quarry from s
which the stone for the buil ding vas taken, or T
Interested IN any other contract {
0t the society, was most carefully and minutes
ly examined, and the undersigned declare the L
charge to De both false aud malicious. ON the | i
contrary, the undersigned find that the erec- >
ton OF the building IN all its details was care
/ lnliy s4tenea oyer W the directors aud par
aeularly BY the buildjng committee with as {
much attention as q prudent man gives TO his :
own business. III
9. That the moae of loaning the money Of
and meets the approval Of the undsrsigned,l