The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-19

should have been perfect parts and positive
you the ..power 10 examine under oath the officers
clerks and agents OF the company relative 10 the affairs
and business OF such company"
On page Is you say-lo rccapitulnte, the only
assets that can report at this date February H. 1871
are as follows ae Ha
United States bonds market value say. .... 100 900
State bonds, market value say............. $1,000
Cash In bank 10000
Premium loans. ....................... $50 900
Accrued interest and rents say. ........... 1900
Net unpaid aud deferred premiums. 2i0 600
Making total assets in value. 81 2os 500
Frst-Why did you leave out New York State
bonds AZ Albany being a part OF the deposit
there. ST. 600
econd-rho balances on books agans. agents i6a 900
Third-Spec.al temporary loan secured by
policies $1,000
Fourth-Furniturc, library. Safes 30, in dii-
FVut-Real estate uncncumbcrcd bv mortgages 81, 900
Face value OF assets omitted. ..........$ 2G8 900
These assets must have appeared on tho books, but
OF them you make no mention whatever IN your
twenty pages OF report except that you admit
that 81 900 OF New York State bonds were held In
Albany part OF the gross deposit there. But you
neglect 10 include this In the assets which you
your exports were over thirty days looking alter aud
seeking for; and nelihcr yon they make any
Whatever Of any OF the above omitted items
And horo will remark that careful examination Of
your report satisfies il had tor its object the
foundation for prosecutions tho hand and tho
shielding, perhaps. oil Newark, or some othcr wrong
doors, a few years back. on tho other hand.
Aud ain confirmed IN this when you let Slip with
only word or TWO, the missing guaranty capital OF
100000 which the company possessed, according 70
your own previous and your last public reports, only
one year ago. and which, II you lid not and II
your duty TO investigate and ascertain what bad be-
come oil tho assets which represented II.
Did you slide u over because you know II was alb
srncted and unlawtully divided back the gentlemen
who put II In "as security Tor policy 20 And
did you not lind out that than this
divided up during recent years and TAX away from
the company before Mr. Stcdwcll came IN; or did you
devote your time IN hunting "LiIliputian broken
whcclbarr0ws'' when you knew that Il scOach aud
four" had been drven through the company assets?
The which would not do tell, or even Investigate
Why did sou omit unincumbered estate SOL 200,
including two large valuable dwelling houses in Wash
ington b. O., aud real estate elsewhere and nowhere
make mention OF this properyY
You made and still make cry about United States
coupon bonds, S13200O worth $780, 900. and you pa
rade them, as have SHOWN, asset, and yet you
in the letter press part Of your report two pages
from your schedule OF assets, that "ihe company's
ownership OF the coupon bonds could DO proved by
the cash book and could only be inferred from their
apparent possession, and that the president admitted
that nearly onehaif of tho bonds virtually belonged
the companys attorney to secure moneys advanced by
him. and II was not possible 10 be sure, that she
mainder OF these bonds might not either BIO borrowed
for tho already hypothecaed for loans or
which your examiner could not learn. =
What confession for a five or six year old insur-
commissioners 10 make, aided by three experts at
the expense oil policy-hod Tho ignorance you
display and want OF qualification for the Office you
have long hold IS only cqualied by your STUPIDITY
publishing It 10 the Legislature and the world, aud
showing NJ the snmc time that dishon0rable
Again, why did you not, like man, gather together
In schedule the face values Of every asset and
alter exhibiting them IN detail have commented upon
their values TO enable tho officers OF tho CON-
pany, the policy holders and others to accept reject
your criticisms upon values, and in thus doing let
each stand TALL, or be deprecated down ac
tua vaues-as the minis OF others than ii. q. Kelsey
who, without his badge OF Office would never be
pected OF capacity Tor anything higher than the games
when You said estate bonds. $35, OO0" why did you
not tell what they were, how many aud what states
page 1872 Would you give $50, 900 for tbh Virginia
and Louisiana state bonds you found In Che posses
sion Of the company or did you name estate bonds,
$l5 600. 10 hod somebody accountable for sum
Why did you name "loans mortgages as
$373 50OY Was that tho face values Of all the
caccs of which $3.50 600 were held by New Jersey and
New York public deposits, the amount very
much larger and you cut u down TO $4,000 as your
psc dix,t OF their vaues You know, II sou found out
anything, that the faco values OF their mortgages
not tar from s425, 900, ana without explanation you
put them down sol, 800 less.
You enter $40 0U0 cash In bank, and venture tho
opinion that you did not know that they had dol
lar. aud took means TO ascertain whether they had
You say premium loans, $3.50, 900. and | venture
here the opinion, too, that you did not ascertain
whether they held premium noto or that the items
on books In the form OF entry charges against
policies, aud will 80 further ana say that 10 not
believe that either you or your assistant examiners
ever ascertained by examination what amount was Ia
premium or in book charges against policies,
and that you neither saw nor road premium note,
examined book entry on this Item, or know
anything whatever oil tho real amount or
value Of this $3.50 900 assets, ana have
to believe that the real amount much larger.
holders 10 abandon their policies and destroy the value
OF the notes or premium loans and despoile1
annual cash income OF over 5000 0O0 The accrued
interest," &c., 500 600, will pass by, simply saying
that you knew nothing about IT, ms to whether It was
ono gum another.
And now comes he last hem--"Nct unpaid and do.
fcrrcd premium $2400Oo." How round you turn all
the corners Of these largo sums.
Why do you say "NctY" And II you did, why not
have stated the deduction you made on the gross
amount aud let us know what tho gross amount was,
and then show how much you cut 1t down, and whyY
L
your expert investigators know anything about this
item, as to how much are unpaid past due premiums,
and how much are deferred premiums, being pre-
NUNS not due and TO tho real gross amounts
lined, you know nothing whatever, IN my opinion.
Now wo come 10 Liabilities" Tho nrst item con-
corning which you speak IS the valuation reserve
and you say Il will estimate the reserve at only
ST. 100000" Why that round sumY and on the same
page t9 you add TO u all other liabilities to make
a balance shcet--vz., losses unpaid, $63 900 duo
Second National Bank, $lo,oOothe Same arnouni YOU
cre0it them with having hand on tho opposite
page--due the company's attorney Tor advances,
sl, oo0he owner, as you really admit OF about one
hall OF the United States bonds-and debts others
OF about $40 000 making total liability OF ST. 60 0O0
from which, alter deducting tho assets on opposite
page OF 81 Dos, 500-wnich you shy is all they have
leaves deficiency Of S42i 500; and you give poor
Stcdwo, president Of the company or somebody
elsc-no one knows whose duty 1t is-just ten whole
AFTER such unboundcd hbcrality in estimating their
liabilities and giving somebody SO long time 10 find
somebody loo enough 70 pay 10 s42i.ooo ~ zen days
into company you had rulned-lf II had
not ruined itself bcIorc-lt may BIO "mcan
rs dirt' to call your attention to page
26, and ask what mean by showing that the la
bilities Tor "reserve aono is 81 691 OH, and which II
you add tho claims and debts you schedule page 10
as being In all $3.50 600, making total liabilities OF
1857 00I, and total assets page Is, deducted, o
$l,20s, 500, and consequent deficiency OF $6is, j07
Any State law which permits you 10 do things In tins
way must open and shut like jack knife" wnen
the boy wanted TO white shat up and yet after
all your learned actuary adds to the above resntsas
CONNECTED with the first item, 'thc reserve" that
.there are reasons why this valuation tot rcseryej
should be much larger" than si6o7,ol7, winch re-
serve on page 10, the same learned actuarv, IN sum-
ming up tho liabilities, puts down NJ 81, 10000
And now, passing over very many other almost
equally ncomprcLcDsblc things IN your report, VIC
say that nowhere over your signature do you
state what rate OF interest money anu
what tablo OF mortality you adopted com
putinr the RESERVE" which page you
Tx ut ST. 500, 900, and then on another page at
ST. $3.50 OIL concerning which last figures tho report
says, There arc reasons why this amount should be
Increased" ana you rive the Legislature 10 under
stand on the first page Of your report that the stand