The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1892-01-23
A FAMOUS CASE.
The New York Life Investment
Co. Investigated.
Bantas Charges-Ruthless and Improvident
investments - The Agencies Scandals
Official Report on The Methods Of Business.

New YORK, Jan. 22.-The report
of the insurance department of
the state of New York of its exam
ination into the condition and affairs of the
New York Life Insurance company was
made public today by Superintendent
Pierce, who presents a summary of the re-
suits of the invest CATION made by Deputy
Shannon with his own comments thereon.
The following are the principal
parts in Pierce's statement. From
the satisfactory result appearing in the
report, the conclusion is reached that this
great ana useful institution of our state is
beyond ali question solvent and is the
actual owner and possessor of a surplus
of available assets and property exceed
ing its present liability by the sum Of
S14, 70S, 615, divided in the general account,
| Sc, OBS, 1856; Tontine accumulation, $500
| 53S Those interested may be assured this
conclusion is accurate and trustworthy"
The examination of the company grew
of charges of reckless management and
| corrupt practices made against the officers
and trustees particularly against President
| William ii. GeenS upon the responsibility
of the then cashier, Theodore Banta The
charges were originally made four years
ago and an investigation at the time by q
committee of trustees favored the manage
ment. A New York newspaper unearthed
the charges which were first published in
this city last summer After their publ
cation Banta renewed his old charges and
added new ones.
Speaking of some investments the report
! saws: The actual cost of Holbrook hall 70
the company was Il 009 500, while the
actual value thereof as estimated by the
appraiser of t department did not exc ed
4S0, 0O0 The superintendent says: Care
full consideration of the facts leads me tC
state no reasonable excuse or explanation
has been offered TO rebut the charges
OF gross neglect and incompetency in
the management of this property from
which resulted this great loss OF
over half million dol ars in this single in
vestment. There appears to be loss oil
/ $3.50, y94 in the Plaza hotel investmen The
home office building also shows large
shrinkage in the value. A real estate in
vestmeut N Paris, France, which cost the
company 81, l02, 624 and which the Frer CT
government values at only $40, 400 anC
which the compahy's old selected apprais
ers value at only S7o7, 800, furnishes
another instance of great shrinkage il
value and apparently of great extrava
gance on price paid.
Under the head of agency maragem en-
w
the accounts of the Spanish American de
partmeut and other agencies in question
showing those three agencies are indebt &c
to the company upwards of 81, 500, 600 H,
saws: AFTER careful reading and eXRmi
nation of this portion OF the report, l an
forced to the conclusion that the facts pre-
scented clearly indicate a state of affair
exists in the company's agency manage
ment calling for the severest criticism ant
condemnation and which if continued mus
prove ruinous to the company.
Superintendent Pierce saws the fact!
leave no doubt in his mind at severa
, hundred thousand dollars Shot u be adde
, to these figures on account of large allow
! ances improperly N de; that this Who'll
agency business was entirely in favor o
their interests and profits and aga ms
those of the company and the management
was guilty of gross neglect in permittin
such continuous deviations from ordinar
f business rules to the great loss of the com
pany.
, shows that on July 80 last, the total asset
= of the company were 1920, 710,6 $50; tots
i liabilities, slU6,062, Ola; gross surplus. S14
f 70S675.
a Among other things, Banta charged ths
a the company raid many thousands of do
q lars in the shape of backmail TO prever
n exposure of the charges of misconduct j
, the management. Shannon says the trut
of this charge is admitted by the officer
Several thousand dollars were paid to or
writer for the purpose of suppressing th
q publication of articl S he had prepared a
4 lacking the management of the company