The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-17
THE POLICY HOLDERS COMMITTEE.

searching believes that
corporation doing insurance business has been sub
JOHN !. sMYTH. superintendent.
THE POLICY HOLDERS COMMITTEE.
somewhat exhaustive report has been rendered by
the committee Of policy holders that invited
examine the Equitable in January last Tho CON-
mittec organized by the appointment OF f. d. Morgan
chairman and Charles S. Smith as secretary. Mr.
David P. Facker, the actuary, was selected to make
valuation Of all the policies OF the society In his rc
port the committee, Mr. Fackcr SAID that he found
on December 81 Ns76. the society 81 ould have hold
of S25 IA 600 over and above all other labli-
ties. In regard 10 his examination OF the Tontinc
fund, he said lie was satisfied that on December II,
1916 fund amounted to 040 900 OF the assets at
their book valuation. The legal amount on the Ton
tine policies Mr. Fackicr estimated ut 81, s3S 500.
The committee say IN their report that they valued
and parcel oil tho real estate mort gagged TO
the y l2l6 pieces IN number, together with all
property previously bought ~ under foreclosure, EN-
pioyng appraisers appointed specially by themselves.
Me,srs. Isaac Walton and Willis Blackstone made the
appraisais Tor The cities oil New York ana Brooklyn.
The committee say they examined the bonds and
mortgages aud loans thereon winch, III general are
Well secured though having been made IN years past,
some the loans not deemed to have eqdato
security. In TO meet any contingency III the
oie,osure Of the last named. the committee recon-
Ineua hat 100000 be taken from the surplus and set
Idle special reserve iund. they also recon- mend
tt,i 1904, UUu taken IRON the same fund make
rood any other Of The investment securities. Their
txamiLation OF the United States bonds and other
securities showed them TO be correctly stated
BUILDINGS SALARIES
a sub-comInntee appointed TO examine the pro-
prlcty and wisdom the investment the building
occupied by the society No. 40 Broadway, also that
purchased W society Nos. liz and la Broadway,
building No. TO Broadway yielded rental OF i've and
quarter per cent upon an investment OF
81, go SO The building Nos. III and ia BroaI-
way, rented TO Denonco and others, the committee
found yield the society four and half per cent
upon the cost The Boston building, constructed at
cost, including site, OF 40, 202 y6 was estimated
10 pay four and Il half per ceat The committee
say they are not TO be understood as ap-
ings which their opinion would have been
quite appropriate and judcious II less elaborate,
less expensive and less ornamental. Regarding tho
large Investment of the Equitable society and the Mcr
camille Trust Company the committee say that II IS
not believed wise Tor institutions oil the character OF
corporation, however valuable Its stock may Dc. a
subcommittee was appointed TO inquire INTO the saa
res oil officers, and tue report says.
In view OF The 'powers anu dates" OF this commit
tee, declared the letter OF the President, be
found IN the earlier part OIL this report, We ars LETT no
alternative but 10 suggest that, IN our opinion tho
compensation for services made 10 It's chc officers
been excessive, and Objectionable IN principle.
much as part OF such computation has been based
Oh percentage OF the society's SURPLUS
Salaries OF executive officers OF corporation OF tho
character OF the Equitable Lilo Assurance Society
should OF necessity be regulated great degree ~
the value OF the services rendered. such salaries,
however. should be reasonable 10 amount and at ali
limos fixed and definite.
la concluding Their report the committee state that
Tie result OF their investigation Of the affairs OF the
socciy Is 10 general satisfactory and thai tho society
Va solvent beyond question.
The names OF the committee attached to the report
lre. T.. u. Morgan, Il. b. Sherman, William A.
Wbceock, Morris X. Jessup, c. g. Franckiyn, j. NJ
Morrison. Charles D. Smith, +. D. Tappcn and Cornc-
lius w. Bliss.
In the report OF tho Finance and Executive Commit
tee Of the society the following resolution is rc.
Corded
Resolved That $4,000 the undivided surplus be
withheld from division among pOiicyhodcrs until
ther order this committee the board,
possible loss arising from The value Of real estate or other
securities.