The New York herald., 1879-03-03
MILLIONS IN MORTGAGES.
How the Life Insurance Companies
Invest Their Money.
THE DEPARTMENT RECORDS.
Information for Six Hundred Thou
sand Policy Holders.
AN ENORMOUS BUSINESS INTEREST.
$l23S,O56,S9l Paid for Life Insurance in
Twenty.Eight Years.
ONE COMPANY WITHOUT A MORTGAGE
Blocks Of Money Loaned onF Farms, Country
Information for Six Hundred Thou
sand Policy Holders.
AN ENORMOUS BUSINESS INTEREST.
%,2SO56,S9l Paid for Life Insurance in
Twenty-Eight Years.
ONE COMPANY WITHOUT A MORTGAGE
Blocks Of Money Loaned onFams, Country
Churches and Tumpikes
ALBANY. March I. 1870.

ALBANY. March 1. 1879.
at recent discussion OF life insurance interests in
this city the astounding fact brought out that
during the past twcnty-eight years the enormous
sum ST. 056 s91 had been paid by the people to
the life insurance companies Of this State. During
the same period of time there has been paid for
death claims the sum Of $60S, $50 453 Considering
that the present Of these companies given
ut $500, ,420. sol. the amount to be accounted for
1882, ,6S5.947 has been eaten up for expenses ana
cost of management since 1850 is wonder. then.
that not only the of the people. but
also the 100000 policy holders interested in
the life insurance companies Of this State,
scout the idea that shall inquire into
their management. curious fact in connection
with this popular demand for information is that
the publication Of Assembly document No. 40. being
eightyseven closely printed pages about the affairs
Of the Knickerbocker and Globe Life Insurance COM
panies came multaneousy with the Wadsworth
resolution calling upon Mr.. Smyth to resign the
management OF the Insurance Department, and added
bitterness to the relentless made asit were.
from all sides upon theworred superintendent What
adds spice to this insurance fight is that so many
officials directly interested in this insurance busi
ness. which in another week all acknowledge will be
the most exciting question before the Legislature
INTERVIEW WITH HAMILTON FISH. JR
Mr.. Hamilton Fish, Jr.. who has taken deep
interest in this question, granted an interview
this afternoon, and taking up document No. 40,
above alluded to, said. pointing ut page 2:-
"Here, read this, a report of Mr.. Nichols. presi-
dent of the Knckerbocker Life to Mr.. Smyth, which
ought to be plain, business document. giving the
result Of appraisals Of land owned by the company
and Mr.. Nichols alludes to of the appraisers
Hon. William p. Moers, republican member of the
last Assembly. What has republican to do with
his business?. Again. further on it reads. you see,
THE Hon. Nv. w. Rockwell. Senator from the Seven
tecnth district, has been requested to make these
appraisals, but has not yet forwarded his report
''You have your mind made up then, Mr. Fish. as
to the efficiency of the Insurance Department. said
your correspondent.
II think smyth is perfectly incompetent he does
not understand the business of the department."
"Did you not use some strong language on the
door of the House in regard to this busincss?'
II said that the Knickerbocker Life is rotten and
that the Superintendent knew it,"
'Do you expect a change in the management of the
department soon?'
'You have heard of the resolution offered a few
days ago. and that by q republican, calling upon
Smyth to resign. That Is beginning. 1t has gone
under the rules. but it will come up again in
day or two. There must be a change and that very
soon The interests too vast 10 be intrusted to
from that department"
Mr.. Fish. in conclusion admitted that insurance
would ere long be a burning question at Albany"
INTERVIEW +. sfYTH
Thinking that the Superintendent himself might
be willing to say word two in his behalf
proceeded to the Insurance Department and saw Mr..
smyth.
"Mr superintendent. is it true that you sup.
pressed the Globe report. and If SO why did you do
so?"
81 have objection TO tell you why Deputy Su-
perintendent McCalls report to the Globo
Mutual Life Insurance Company was not made pub
lic." he answered "Such reports never have by me
nor by my predecessor. Mr. Chapman. been made
public The statute recognizes the report Of the su
perintendont based. undoubtedly. upon the informa-
tion which he receives from reports of subordinaes
made to him. but the reports OF these subordinates
should not be made public. as they often contain
matters of detail affecting other companies than the
one examined. As well publish the report of do
tectivc to his chief Qihcer."
"what is your correct view of the Globe Lifcp"
"The Globo Mutual Life Insurance Company"
said MIR. smyth. els solvent. sir. and undoubtedly
will remain so IL honestly managed. but an indis-
Greet and Needless revelation of facts in the manage
ment ofa life insurance company surely tends to the
enriching Of dishonest managers of It, by terrifying
pay their premiums. causing their policies to DO
lapscd."
"what about the Knickerbocker now?"
''It folly on the part of Mr.. Fish, OF Putnam,
to state In mis- hoedless and ignorant attack on the
Knickcrbocker Life Insurance Company while on the
floor of tho Assembly-if he did so state
that the Knickerbocker Life Insurance Com.
pany is rotten from top to bottom. and
that the Superintendent knew It. The sworn
statement OF that company for the year ending Do
cembcr 81 1873. shows that 1t paid 100000 in cash
for death losses and maturcd endowmcnts-a sum
probably greater the total which would be real
lied from tho assets of this company IL ruthlessly
placed In the hands of rcccivor.''
'why did you submit the dcputys report ON the
Globe which made In May or June, to the At
torney General on tho 18th of this month";
Tho report ITSELF" answered Mr. Smyth. "tes
the story wherein the company. the 3lst OF May.
was declared to bc solvent-namely. by the prompt
restoration of mortgage of si2o.ooo. tho title to
which was rejected by the department. but made
good by the company, and other details mentioned
In said report This company not having changed its
officers pursuant to promise medc to the department
by its attorney the superintendent again caused q
thorough examination of it's affairs to be made from
the date OF report until January of this year. This
report shows that the company had increased its
surplus $75.00O-that surplus ON tho I'd of jan
nary standing ut s2as.s22 81 in place Of sie III 49,
A few days before the 18th Of February, in going
with the Attorney General in the insurance De-
partmcnt some proposed legislation touching life
insurance companies. tc Attorney Genera, mentioned
that there provision in tho law regulating the
supervision of banks to Interfere in the manage
ment of banking associations. and suggested pro-
vision in this anticipated insurance legislation TO
moct this want I told him that In had the power
in the Globe Mutual Iafo Insurance Company TO
change its officers certainly would havo done so
aud 1 was then informed by the Attorney General
that IL tho subject brought to his notice he was
satisfied thcre was power given by the law for him
to bring about tho change OF management. A few