Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-04-08

INtNNNA
The directors of the society again requested the
superintendent of New York TO make the eXamina-
ton without delay But in consequence of the Leg
islatiye examination of the insurance department
Of this state the superintendent again unable
TO give ltfmmediate attention. The directors also
requested the commissioner of the state of Massa-
ehusetts to make additional concurrent exam
nation, which he consented to do and has associa-
ted with himselfthe undersigned to assist him in
! the Investigation.
Upon assembling at the Offices of the society, the
undersigned at once entered upon the Investigation
! Of Mr.. GoYe's charges made TO the New York III
suranee department and since widely spread before
the public IN printed form. The Massachusetts
| commissioner, at the meeting called TO make the
investigation, stated that he caused Mr. Cove to be
notified in writing ofthe Investigation, and had -
Vited him to furnish testimony ~ support Of ms
charges and presented the affidavit Of personal SER
| vice OF the notice upon nm.
Mr. Cove did not appear or offer any testimony
| to sustain his allegations.
| The minutes Of the society and of the several
committees, the account books, cash books and
oheque books Of the society were then laid before
| the undersigned ana carefully examined. The Otf-
GERS of the society and such other persons as the
undersigned desired, were examined under oath,
and each SPECIFIC charge was carefully ana EXHAUST
| lively inquired into, and the undersigned certify
| that, excepting clerical error in publishing
among the list of paid policies contested claim,
which error was reet1ed as soon as discovered, the
charges and Specifications are untrue and malicious.
The amount Of the policy referred to was returned
| TO the insurance departments liability in
cordauce with the rules of the departments with
regard to contested policies which fact corrobo-
fales OllleI testimony SA0F Li'E NAASA vas
The undersigned, following in their investigation
the order in which the charges and specifications
are presented, hnd:-
l. That the society possessed the legal power to
erect their building which contains the offices of
the society, at the corner of Broadway and Cedar
street. and the undersigned refer to the opinion of
Prof Theodore w Dwight, respecting the same.
g They further find that the erection of the build
ing was wise and judicious measure, and, is safe
investment. yielding an increasing annual income
Of more than five and half pa per cent, leaving
the society free from rent for its own Offices and if
the value of the Offices occupied bv the society is
taken into account we are of opinion that it has
no money invested to better advantage.
8 They further find, that in reference to the COM
pensatiOn of the officers, both the method of pay
ment and the amount paved 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 favorable as that Of any life cOmpany(tOr
the same years from 1860 to 1870, inclusiyelOrgan
lied during the year in which the Equitable was
gained, 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 or
ganized more than fifteen years previous to 1860.
4. 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 au-
thorized by and in accordance with the law
5. 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 pe3uniariy interested in
any other contract of the society," was most carefully
and infinitely examined and the undersigned de-
clare the charge to be both false and malicious On
the contrary, the undersigned find that the erection
of the building ia all its details was carefully
watched by the directors, and particularly by
the building committee, with as much attention as
a prudent man gives to his own business.
6. 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 unfOunded and other
things heinz nTlmplnals nrpf
ence over brokers.
Z. The secretary of the society, who formerly was
in business as fire insurance agent and general
broker relnqushed the charge of the fire insurance
business of this society when he became connected
with it three years ago, The secretary has not at
tended to the lire insurance business Of the COM
pany, and no director officer is or has been inter-
ested in such business nor has the secretary loaned
money on policies as charged
s. 1t Is proved to our satisfaction that the direc-
tors Ofthe society have not loaned the money of the
society TO themselves upon securities not allowed
by law, and that no loans have been made through
the tayoritism of is officers and directors on made
quate security, or contrary to law.
3. In the opinion Of the undersigned, the direc-
tors, so far from having managed the affairs of the
society wastefuly or eXtravagantly, have managed
them prudsntly and successfully, and have made no
! false returns to the insurance departments.
| 10. The rates OF commission paid to agents as
| charged, are untruy stated, No salaries are paid
/ to agents in addition TO commissions
Il. They find from the testimony given by the
| officers and directors. that the establishment of
agency in Great Britain has not proved a failure.
that the agent sent there Is not inexperienced in
the insurance business that he receives salary,
but that his commissions are guaranteed for three
years 10 an extent OF $1,000 per annum; and that
the result OF his lsbors in introducing The society
business there, has been satisfactory the board OF
/ directors.
/ y. The charge that money has been wastefully
spent upon the building Is sufficiently answered by
l3- They further find that the society does not
/ falsely advertise itself as a mutual company. The
necessity OF capital stock from the fact that
before the organization Of the society laws were en-
acted IN New York requiring all companies organ
| ized after such enactment 10 have eqpifal sfnck
and 20 make deposit Of one hundred thousand
dollars with the insurance department as a guar
antee 10 poicy-holders. The annual dividends upon
| this stock are limited 10 seven per cent. This
amount is nearly earned by the investment Of the
capital; all Of the profits are divided amongst the
pollcy-holders the stock bears such market price
as Is charged and as no unlawful galus be mada
thereon, the ownership the stock can only be de.
sirabe for the protection Of the company The pro-
| vision as 10 stock management is not concealed
from poiey-hOlders, but, on the contrary the di-
rectors of opinion that it forms one of the great.
| est safeguards Of the company.
a In conclusion, the undersigned desire to say
that they are unable TO find an honest motive for
| the presentation or charges so totally unfounded
! rms investigation has shown only an honest and
| efficient management of the society. The Massa-
! chusetts commissioner, with Professors Theodore
| ". Dwight Of Columbia college law school, and
Junlus Is. heeler, of the West Point military aca-
denny, VIII al once proceed TO examine the details
| OF the management of the society from its foupda.
! ton, and Messrs. Upton, Spauldinr, Latasa Kelly
! Schwab and FOgg, will examine its assets and ia.
Pestments which the undersigned will report upon
as soon as the investigations are concluded. From
| the wide publicity given to these charges it is
tnought best to make this report upon them at once
The undersigned desire to express their unqualified
approval of the action of the society in resisting the
! attempt 10 eXtort money from it under color of
| these charges Aud finally, the undersigned take
great pleasurei in bearing their unanimous testimony
| 10 the faithful and successful management by the
| trustees aud officers of the society Of the great
! trust reposed in them
| JULIUS l.. CLARKE,
| insurance commissioner or the commonwealth OF
| Massachusetts.
HENRY T. SPAULDING,
GUSTAV SCHwAB,
| GEORGE b. UProN
| WILLIAM ii. toGG,
FELICIANo LATAsA,
EUGENE KELLY,
DAVID BOWS,
NORRIS X. JEsUP,
JUNIUs Is. WHEELER,
| THEODORE W. DWIGHT.