Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-02-06
THE GAZETTE: FIT WORTH TEXAS. SATURDAY FEBRUARY {.

! many notifications were made to enable
| him 70 handle the peculiar class of business
| which ne wrote. Advances were made for
the same purpose. 1t is probable, however,
that while there is today on our books a
| LACE olume OF business of-the best quality
written by Mr.. Dinkespiel. reasonable
renewal interest viii not finally hquidate
the advances made, and that this business
/ will ultimately cost US more than it should.
! For any error in judgment in employing
this man, as well as for any ultimate loss, I
do not desire to escape from any proper re-
sponsibility.
MR. LOOMS L. WHITE.
The superintendent of insurance DIS
cussed at some length the relations which
have existed for about sixteen years be-
tween the New York life insurance COM
pany and Mr.. LOOMS L. White, member
of its board of trustees and of it's finance
committee. and two questions were raised: :
First, as to whether or not o firm, a mem
Der of which was member of the COM
pany's board of trustees and one OF its
finance committee, could act for it as bro
kers without having the opinion Of such
trustee as TO the value of securities colored
by the probable commission which the firm
would receive on such transaction. Sec
oud, whether or not the company had the
right to purchase securities through such
firm of brokers.
The first question may be briefly dis
posed of without discussing it by simple
statement of the results. In the years
covered by Mr.. Whites connection with
the New York life insurance COMPANY
about S5.000,000 of securities have been
purchased by the company's finance COM
mittee, and q considerable proportion of
this through the firm of which Mr.. White
is member, Messrs. Loomis, White i Co.
On the Both OF June last the superintendent,
after valuing these securities at time Of
>, y,
pany something more than s., coo, 900 above
the cost value at which they are carried in
the compauy's books. Such result is the
best answer TO all questions as TO the wis
dom of the finance committees action, and
in so far as Mr.. Whites action influenced
1t, is an evidence of the value to the COM
pany of this connection. The second queS-
ton is one on which opinions of counsel
differ. 1 have reviewed now with you the
graver criticisms of the superintendent's
report. l shall stop here. 1 realize that
there are other criticisms which have not
referred to, and l do not deem it necessary
to do So
l have tried to present to you fairly the
facts concering those of most Importance,
and 1 believe have shown you that while
there have been errors in the management
of this company, there has been no betrayal
of trust. A full criticism of errors with an
equally full statement of management de-
serving commentator would nave been
only fair to you and perfectly satisfactory
TO NE, however severe these criticisms
must have been, but the superintendent of
insurance, who was invited to examine the
condition OF this company, while properly
criticising whatever he deemed criticable,
omitted to state tho other side of the case,
and, in addition, unfortunately stated his
criticisms so rs to make it probable that
you may have misunderstood and overrated
their Importance. / desire to reiterate my
disclaimer OF infallibility and repeat the
message sent from Europe last summer.
''Thdt la business of Our magnitude mistakes
are ineUitdble, and ICe compare fdrOrdbly trith
Others, bat my integrity of purpose cannot be
shaken General net results are the tOuehsiOn6S
in eUery business We need not go far to
find confirmation of this; errors have been
made perhaps in the management of every
company doing business, but as there are
some of common notoriety, may refer 10
them without seeming to attack the COM
panies themselves. In addition 1 will say
that TO the best of my knowledge and belief |
all of these cases are natural experiences
incident to the fact that no one is infallible. 4
The Connecticut Mutual lost outright $780,
COO through the defalcation of its financial
correspondent at indianapolis in 1888, and
the Mutual Benefit life insurance company
of Newark, n. j., company eminently
in all things, lost about the
same amount in Elizabeth.
NEW JERSEY BONDS.
It is well known fact that the Equitable
life assurance society marked off in 1889
and 1890 almost Sl1,000,OOo in real estate,