The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1892-02-04


and because of the disclosures in con-
Merzbacher, one of the Spanish
American agents of the company, who
got away with about $500,O0O.
Superintendent Pierce severely criti-
cises the management of the Insur-
ance company and says that it's meth
DDS in running agencies are extremely
bad. Some of the investments made
by President Beers are declared to
have been made with poor Judgment.
Holbrook Hall, an apartment building
at SiXty-second street and Fourth ave-
nue., which cost the company 81 Co.,
866.93, is appraised at only $3.50, 900.
The Plaza hotel property is another
costly investment.
The total cost to the company of this
hotel property up to June 80, 1891, was
So, 7S3, 984.1S 1t is appraised at s., $780,
000 In the settlement of the John
Anderson suit the company had to
pay more, so that the real cost of the
hotel has been much larger than the
figures given by the company to the
insurance department. The building
of the company in Paris, France, cost
81 ,102, 604.05, and the French govern
ment has valued it at only SAC, 400.
In connection with the management
of agencies Superintendent Pierce
says, GA state of affairs exists in the
company's agency management call
Ing for the severest criticism and con-
domination. and which if continued
must prove ruinous to the company.
EXtraVagant commissions and unWar-
rantable allowances have been paid
to the company's agents; funds of the
company to the extent of hundreds of
thousands of dollars have been adj
vanced to these agents without inter-
est and upon insufficient security.
Funds of the company have been used
for speculative purposes, and the
greater portion Of the profits arising
! therefrOm have been presented to the
agents, while in case of loss on any
such transactions the whole loss falls
on the company.
"In regard to the publication of the
Massachusetts Souvenir and the
public Service of the State of New
York by the executive officers of the
company, and the large amounts ex-
pended therein, fully agree with Mr..
Shannon that the publication of his
tories md biographies is not one of
the forms of business which the New
York Life Insurance company is
authorized to engage in by the laws of
the state or its charter. L can find
neither excuse, reason nor good policy
to Justify the transaction"
The report says that the purchase
and sale of securities by l.. l.. White,
amounting during period Of years to
$50 900 900 while Mr.. White was a
member of the finance committee of
the company, was prohibited by the
statutes. 1t is also shown that Presi-
dent Beers kept his son-in-laW travel
ing around as an inspector at salary
of $1,000 year and expenses.
The Merzbacher defalcatiOn is gone
into thoroughly and in his report
Deputy intendent Shannon criti-
cises President Beers for not eXamin-
ing Merzbacher's accounts when he
should have done so and prevented
the gigantic fraud.
FROM SATURDAYS DAILY
Secretary Of State.
The following charters were filed
yesterday:
The Petri Lumber company, to be
located at Dallas. The directors are
A. G. Petri, Oswald Petri and Jerome
d. Cowley. Capital stock 100000.
The German Evangelical st. Johns
church of Mettina, Falls county. The
trustees are John Tn. Saudner, Christ
Huttenlocher and Wilhelm Leb-
kowsky. Present value of property
500.
Department of Insurance.
Commissioner Hollingsworth was
yesterday hard at work in getting up
statement to the policy holders OF
the New York Life Insurance COM
pany on the condition of the affairs of
that company, based on the report of
the insurance commissioner of the
state of New York. He hopes to
have it ready for publication by the
end of the week.
Geological Department.
During the last few weeks this de-
partment has been busy getting in
new furniture and showcases for the
display of the many fine specimens
belonging to the state, which up to
this time have been stored away out
of sight The west end of the main
hall has been filled with cases, and in
few days it is expected everything
will be in shape again.
Comptroller's Department.
The revenue deposits of this depart
ment yesterday amounted to 81 ,907.82.
The following railroad taxes for the
quarter ending Dec. 80, have been
paid so far this month:
Rio Grande and Eagle Pass, $154;
Missouri, Kansas and Texas, $944.08;
Galveston, Houston and Henderson,
S7S. 40; Dallas and Wichita, $3.50;
Dallas and Greenville, $S8, 89; Trinity
and Sabine, $66.77; Sherman, Dallas
and Denison, Sal .04; Dallas and Waco,
$50. %; Rio Grande railway, $500;
Southern Kansas, 932; East Line and
Red River, $l33.2l; Galveston, Harris
burg and San Antonio, Sl06O.54; Texas
and New Orleans, $l36 25; and the
Gonzales Branch line, $7.S1.
The Penitentiary Board.