The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1872-04-11
THE PR ESS.
THURSDAY MORNING, APRIL IL, ,7s.
Report Of the Equitable Life Assurance
Society. n

missioner OF the Commonwealth of Massachu-
setts, having associated with himself the fol-
lowing eminent business and professional men
who are in no manner connected with, or inter-
ested in, the management of the Equitable Life
Assurance Society of New York. to investigate
its affairs, viz: Henry f. Spaulding, of Spauld-
ing, Hunt & Co., so Worth street. New York;
Gustav Schwab, of Oelrichs & Co, Bowling
Green, New York; George b. Upton, Boston,
Massachusetts,; VIM. H. Fogg, of VIM. HI.
Fogg & Co., 81 Burling Slip New York; Felic-
iano Latasa, of Latasa & Co., 17S Pearl street,
New York; Eugene Kelley, of Eugene Kelly &
Co., 21 Nassau street, New York; David Dows,
of David Dows & Co., 20 South street, New
York; Morris X. Jesup Of NJ. X. Jesup & Co.,
80 Liberty street, New York; Junius b. Wheel
er, 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 il
REPORT: st-. -f +
NEW York, March 30, 1872.
In the month of January, 1871 the Equitable
Life Assurance Society of the United States,
were informed by the Superintendent of the In
surance Department of New York, that La
Roy S. Cove, who had insured his life in said
Society about one year previous, for the sum
of 50, 500, had presented certain grave charges
| against the Directors and management of said
| Society. A 10 q
Whereupon the President of the Society adj
dressed the following letter to the Superintend-
ent: az
.-s-a. ~, JANUARY 9Th, 1871.
Hon. GEO. w. MILLER, Superintendent Of The IN
surance Department Of the State Of New York:
DEAR SIR The Counsel Of this Society has hand
cd tsar
to by holder. As Of these charges and
specifications have not the slightest foundation in
and the truth perverted and as fally believe each
charge admits of the fullest and most complete
planation have felt it my duty to address to you
Conscious that the affairs of this Society have been
conducted by the officers with high integrity of pur
pose and with view to the best interests of the
policy holders, and having nothing to conceal to
the condition of the Society the manner in which
its affairs are conducted would respectfully request
that in the exercise of that authority conferred upon
you by law and appointment to your position as Su
| perintendent Of the Insurance Department, you
would institute such investigation into the condition,
affairs and transactions of the Society you in your
discretion may consider that the presentation Of
| these charges demands la il.I If.r... ... 4re1
Feeling aggrieyed that charges so unfounded
should be preferred jealousof the honor Of the So
ciety and that of its Officers and Directors. would
respectfully solicit that, with little delay possi
BILE, you would give your attention to the subject
| am very respectfully, your ob't servant,
Is m GSlgnedD WILLIAM G. ALEXANDER,
The Superintendent subsequently replied that
he would commence an examination of the
! Company at as early period as his official du-
ties would permit. qs,,--- ,-.-,.,.-.
the said Superintendent 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, copy of charges
against the Society, made by La Roy s. Cove,
and that he, the professed representative OF
the newspaper, was prepared to enter into o
negotiation for their suppression. The officers
OF the Societ yrefused to pay for such suppress
sion, and the charges were thereupOn publish
ed 10 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-
quence of the legislative examination of the In
surance Department of this State the Super
intendent was again unable to give it immedi-
ate atteation. The Directors also requested
I the Commissioner of the State of Massachu-
setts to make an additional or concurrent ex-
animation, which he consented to do, and has
| associated with himself the undersigned to as
sist him in the investigation. s...f d.
Upon assembling at the offices Of the Society,
I the undersigned at once entered upon the in
vestigation of Mr.. Gove's charges made to the
! New York Insurance Department, and since
widely spread before the public in printed form.
The Massachusetts Commissioner, at the meet
| ing called to make the investigation, stated that
he caused Mr.. Cove to be notified in writing of
the investigation, and had invited him to fur
nish testimony in support of his charges, and
presented the affidavit of personal service OF
| the notice upon him. q W -fl
Mr.. Cove di.i not appear or offer any testi-
I mony to sustain. lis allegations.
The minutes o. he Society and of the several
eheane o the soee then sd
fore the undersigned and carefully examined.
| The officers of the Society, and such other per-
! sons as the undersigned desired, were examin-
! ed under oath, and each specific charge was
carefully and exhaustiyely inquired into, and
the undersigned certify that excepting cleri-
! cal error in publishing among the list of paid
| policies, u contested claim which error was
rectifed as soon as discovered, the charges and
| specifications are untrue and malicious
The amount of the policy referred to was re-
turned to the Insurance Departments as LA
bility in accordance with the rules of the De-
partments with regard to contested policies,
which fact corroborates other testimony, show
ing that the error was merely clerical
The undersigned following in their inyesti-
CATION the order in which the charges and spe-
cifications are presented, find:
/. That the Society possessed the legal power
to erect their building, which contains the Of
! fees of the Society, at the corner of Broadway
and Cedar streets, and the undersigned refer to
the opinion of Prof. Theodore w. Dwight, re-
specting the same. si..t,.a ...sn s-4.-
2 They further find that the erection of the
building was a wise and judicious measure, and
| is safe investment, yielding an increasing an
nual income of more than five and a h-f (51)
per cent, leaving the Society free from rent for
its own Offices and if the value of the offices
occupied by the Society is taken into account,
we are of opinion that it has no money invest
ed to better advantage. .r-f u. Il
3 They further find, that in reference to the
compensation of the officers, both the method
of payment 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 its
existence, as compared with its income during
the same period, produces ratio at least as IA
vorable as that of any life company-(for the
same years from 1860 to 1870, inclusive organ
ized during the year in which the Equit BILE
was organized, or since that time, or even prior
to that time, with the exception of two, the
preliminary expenses of those two companies
not being taken into account in the estimate,
because they were organized more than fifteen
years previous to 1860.
A. They further find that no loan was made
on the 10Th of September, 1870, or at any other
time, upon New York Central and Hudson
River Railroad stock. But they find, ON the
contrary, that no loan has been made by the
Society except upon securities authorized by
and in accordance with the law.
g. The charge that the building committee
or any of the Directors are or were interested,
directly or indirectly in the quarry from which
the stone for the building was taken, or pecu-
niarily interested in any other contract of the
Society, was most carefully and minutely exam
ined, and the undersigned declare the charge to
be both false and malicious. On the contrary,
the undersigned find that the erection of the
building in all its details, was carefully watch
ed over by the Directors and particularly by
the Building Committee with as much atten-
tion as a prudent man gives to his own bust
ness -tii.lse 4aetys
T. That the mode of loaning the money OF
the corporation was particularly examined and
meets the approval of the undersigned, who
find the charges of favoritism wholly unfound
ed, and other things being equal, principals arr
given the preference over brokers.
Z. The Secretary of the Society, who for
merly was in business as fire insurance agen
i | and general broker, relinquished the charge o
the fire insurance of this Society when he be
came connected with it thee years ago. The
Secretary has not attended to the fire insurance
business of the Company, and no director o
officer is or has been interested in such Dusnes
nor has the Secretary loaned money on policies
as charged. .so
g. 1t is proved 10 our satisfaction that tn
Directors of the Society have not loaned tn
money of the Society to themselves upon seouT
tiles not allowed by law, and that no loans hav
been made through the favoritsm of its officer
and Directors on inadequate security, or con
4 trary to law.
| 9. In the opinion of the undersigned, tn
Directors, so far from having managed tn
!, affairs of the Society wastefully or extrava
= gantly, have managed them prudently and sue
Z cessfully, and have made no false returns to tn
!, Insurance Departments.
v 10. The rates of commission paid to agent
as charged are untruly stated. No salaries ar