New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-02-03
THE NETWORK LIFE.
PRESIDENT BEERS ADDRESSES THE POLICY
HOLDERS

| He MAKES STATEMENT IN WHICH HE RE
PLIES TO ALL THE CRITICISMS OF SUPER
INTENDENT PIERCE-FULL DISCUSSIONS
OF THE POINTS IN THE IN
sURANcB REPORT.
New York Cd February. 1909.
To the Polcyholdcrs of the New-York Life Insurance
on the 10th day OF June, 1901, the following com
munication transmitted to The Insurance Depart
mcnt of the state Of New-lork:
Ncw-YOrk, 18th June 1891.
Hon. !. +. Pierce, Superintendent Insurance Depart
Dear ,ir The charges that have Lecn made against,
the company ana IT. management IN the pub pres.
growing out of matters connected with it, spanish
American department, having teen cablcd prc,l-
him I'm response, suggesting that the Insurance Dcpar
mcnt he invited, in the public interest, 10 make
| any pocyhOl1crs who might be disturbed by thee
charges and criticisms; and In accordance with hs
its regular meeting held this date, Adopted the follow
ing preamble and resolution:
At meeting of the Finance Committee OF the New
York Life Insurance COMPANY held this date. the To-
lowing proceedings were had:
Whereas. Certain charges and criticisms have been
made against this company In the public pres grow
ing OUT of certain matters connected with the spanish
And whereas The Finance Committee of the Boar
Of Trustees is satisfied from the statements OF ne
reason of the matters referred 10. Yet Is DESTROYS
that the public shonld be equally satisfied:
tendcnt of Insurance of this State lie invited to
| thorough examination Of this company.
In accordance with the foregoing the company viii
he pleased TO have this examination maize ut your
earliest convenience. Yours truly,
Second Vice President.
In accordance with the above, on the Odd day OF
June 1901 the Insurance Department placed in
charge Of the books records etc. OF this company. and
remained in charge until the 4th day OF January. -92
There are many reasons why IL seems not only
proper, but necessary. to review with you the lnsur
ance Departments findings. First no corresponding
test has been applied to the life insurance bust
ness and the results ought to be presented To you. not
only without prejudice, but from the company's point
OF view and TO Inc 1t seems 10 be clear that the only
way 10 achieve this is by a personal statement do
by this 10 reflect In any way on your sources
OF information hitherto | say that CORES pondinS
test has been applied to the business Of life in
surante. BY this mean no Investigation by n State
| Insurance Department has ever been made OF COM
pany whose assets and general business reached CORE
spending proportions Since any test has been ap
piled to the conduct OF this business results have been
achieved which, a few years seemed impossible
| The horizon has expanded and duties and response
blltieS have fallen up0n me and the executive Omccrs
| OF this company. and OF nearly all other life com
| panies which, il not I'm kind, are so much greater
in degree as to constitute almost new world OF cX
| ncrience in our business The investigation just
closed has therefore been remarkable for TINS, n wei
as for other and. beyond question. In addition
T. it, proportions, has been the most searching ana
mercleSs inquiry made OF the executive officers
OF "A He insurance company. The central fact In any
such investigation Is and must he the integrity OF the
assets Of the company. The figures Of the inquiry
we're brought down TO June 80 150 and the Insurance
Departments general statement Is a follows Assets
500, 71O, $50 "a; liabilities. S10G002,0l4 Il; gross
surplus on poicyhoders' account S11707 90 20. Tie
Superintendent Of Insurance well said In commenting
on the above "Tlose Interested may be assured tat
this conclusion is correct and Trustworthy These
words will bear reading second time. They mean
! something different from a casual statement OF Imam
cial responsibility in the business world They could
be used only after assets had been subjected TO
test Which might seem from many points Of view IN
necessarily severe, but which from the nature
| OF our business. and the sacred character OF
! its trust, is PROFESSIONALLY wise The super
| intendent. therefore. means that all doubtful
| Items were eliminated, that our opinions were
necessarily ignored, that disnteresed opinion was
the standard, and that We were Obliged u plead
before bar where mitigating circumstances were ruiN
out Of evidence. After such n test. may be allowed
10 offer my congratulations to our membership on the
result and % state that the other executive officers OF
the company. well myself share with You III tc
satisfaction OF so graf an achievement dc,iIc per
sonally 10 emphasize my congratulations on TINS par
would not have been unnatural. think, IL the ideas
OF myself and associate, Of the aggregate value o the
assets OF this company, expressed In our last an
nual statement had differed to n considerable degree
from the Ideas OF the sentem ~D mn s so
Differences could arise only in certain classes Of in
vcstments A large portion Of the asset 4 such an
Institution as this IS such character that there
could be no variety Of opinion as b. ITS value Oh
able portion of the OF this Of every similar
company. is of such nature that It's value -, At any
totals by equally capable ard responsible men. Tine
variation would express no acnal nuc'ui2n IN van
but simply difference IN opinion Mni'n Dl,Ios
might be for your purpose most nearly c"rr,r'
again matter OF 9Rg9n an" &c" ~ eoSryays yc%
and under the peculiar circumstance, surrouulne our
request for ths eXamnaC; ' New cannot avoid
the conclusion that IN lse parl 6 G d,orcd the
opinions Of the men who nave planned , any the NAV
erection Of this great company ~ Willy I,d .-' ar
accepted as The utterancss 81 speCi"i c'' accent
the aggregate financial findings OF the Insurance r.
| partrnent IS constituting an endorsement ol "'.
you and credltable u me and my associate Is
possible that In spit Of the peculiar character o. tm
from me had the matter rcst'd there bnt the sup rl
tendent of Insurance ha' seen ht hier ~ Inc
company. evidenced IN rs gro,s surplus oI l hons
and in doing 50 has criticised ut Of tl'
| company in these detail very severclxy. ihr '"
why should 60 with YOU over the ground triver.,'
by the Insurance Department IN order mat yn r az
| tention may be called TO many related ic's' WIFI Wv
| not appear In the report. The Department ,IlclNm'
cover several phase of MANAGEMENT 'Np1lam
~ rca estate matter, call attention TO losses when
NAV be divided into loses actual which ! anm, ~" ~
opinion admit certain losses which VIII POM nnd
| o,t Specifically with the attendant circineHh' 81"
| 7 raise the oueson Of difference of opinion IL " vi,
remainder Eeor entering on IN discussion vi az
yeetrncnts are made only with the apprDNal ~ VA
rnancc Committee, consisting OF I'VE mchpc''' "
| ~ which | am member cXo'icio
| PLAZA HOTEL.
rho rcport alleges n loss on This property OF TWO
,n1rod and eighty three thousand nine hundred ana
nlnetv four dollars. The superintendent 81 Ih'"i"
uses this Language in connection In property oi NM
character and Of such great value. the opinions oi wa
estate experts Of equal ability and integrity ol'e' o'
and other able aud conscientious Appraisers ns' , -.
tb,s nropcrty ut higher figures and even DeNoh" W
! cos+ The gentleman who by direction pf the snpcl,
,ntonaent III Insurance, valued this property al wv
| r,tII;on five hundred thousand dlllars, j. ma,