The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1892-02-05


lnces of special pleaders, are worthy at
east of consideration by you. | accept
The aggregate financial findings of the
Insurance Department as constituting an
Endorsement of the management of this
company, at once satisfactory tn you and
rreditable to me and my associates. 1t
is possible that in spite of the peculiar
character of this investigation you would
not have expected any word from me
had the matter rested there; but the
superintendent of Insurance has seen
it, after announcing not only the solv-
nncy, but the great prosperity of til"
company, as evidence in its gross surplus
If nearly SIS, 000,00 to take up and dis
cusS certain items, and in doing so has
criticised the management of Tia" com
pany in these details very severely.
This constitutes and added and by itself
! sufficient reason why should go with
YOU over the ground traverScd Ivy the
Insurance Department, in order that
your attention may he called t., many
rlatcd facts which do not appear in the
report. The department criticisms
cover several phases OF management.
especially investments in real estate
md agency work. The criticisms at
,eal.pState matters calls attention t."
tnSsrs which may be divided into losses
lctual which admit, and losses theu-
retiral. which arise from differences at
opinion. | admit certain losses, which
| viii point out specifically, with the at
temdant circumstances, and | raise the
question of difference of opinion as to
he remainder. Before entering on the
discussion of any of these matters it is
luc to all parties to say that investments
ire made only with the approval Of the
Finance Committee, consisting of five
members, and of which | am Il member
er-CHciO.
PLAZA HOTEL.
The report alleges Il loss on this prop
.rty of $3.50, 094. The Superintendent 0l
Insurance uses this language IN COnncc-
tiOu: In property of this character and
If such great value the opinions of real
estate experts of equal ability and integ-
my often differ, and other able and con
>cirntiOus appraisers might value this
property ut higher figures and even be-
vnnd its cost The gentleman who, by
Erection of the Superintendent of In
rurImce, valued this property ut $500,
Nd is mGn eminently qualified to give
IN opinion on such question. But 1t Is
llsu fact that another gentleman OF
quail ability and character within few
weeks testified before the Supreme
Court of the State of New York that in
Ills judgment the property at the present
line is worth S3,OO.00O. From YOU
point of view, then, is it not fair to con-
cludc that the alleged loss may, after all.
vist only as matter of opinion But
the use will bear one more comment.
Inls property is as finely located as any
III Manhattan Island for hotel purposes,
and perhaps as finely us any hotel i'll the
United States. 1t is in the line of in
crrasing values, and in my judgment
will ultimately yield the company large
return on the original Investment.
HOME OFFICE BUILDING.
The report alleges Il loss on JniS prop
erty of 1894 POS. Its book value is ST.
0l4, 295, and it enters the Superintend-
rnt's report at ST. 800, 900. 70 illustrate
again how opinions vary as to the value
of real estate, let Ills make parallel be-
tween this and prop rty of similar
character in New York and draw cOn-
clusinn. Take the value placed upon
our home Office building for the purposes
of taxation and place it beside the SANE
value of the Equitable Lite Assurance
Society's home Office building. The OF
fetal valuation for purposes of taxation
Of our home office building is Sl.050. 600;
of the Equitable home office building
81, 800, 900. A statement OF the figures
ut which each property was entered in
the assets of its respective company Dee.
81, 1880, is as follows: The home Office
building of the New York Life, $l,9l4,.
900; home office of the Equit lhlr, Si5.-
100000. The departments estimate of
the value of our property is approx
mdtcly 50 per cent, while the aSSvSsur'S
figures Tor the purpose of taxation are
little more than 30 per cent Of its book
value. AS the gentleman who appraised
our home Office building has never mad,
an appraisal of the value of tn, Equitahle'S
home office building, we can hardly draw
Il conclusion from that basis, but iigu inu
from the value placed upon 1t by the as
SCISSOR its total value would be approx
matcly $1,000, 900, it the book value OF
our home office We're accepted ut par.
| cite these figures as strongly bring
ing out the truth Of my suggestion con
corning opinions as 10 real estate values
Every one is familiar with the eminent
success OF the Equitable LIle Assurance
Society, and no one would be 81 absurd
ly unjust to that cumpIny rs to allege
81, 800, 900, or indeed any loss ut all, from
the policy holders view. Therefore, il
it not worthy OF your consideration thai
i'll this case, Us in the matter of the Plaza
Hotel, the loss alleged is. alter all, per
haps matter OF opinion. In fact |
could cite you good authority ON real es-
tate values in New York who will place
our home Office building to-day az val
uatinn in excess OF its cost. There ar,
many reasons why this estimate would
he conservative. In the first p ace th.
real estate was purchased in 1869 and is
exceptionally well located. Any one
who knows anything about the history
of real estate values i'll New YuIK ion
twenty years will agree that there has
been during that period heavy advance
III this and all property similarly SItuat-
ed. The building has not been allowed
to deteriOrate i'll any particular, and it
would seem that our statement of act
ual cost, Sl,9l4,OOO, was very cOnserva-
tive figure.
HOLBROoK HALL,
now called the Yosemite. On this item
u loss has been made. Briefly the facts
are these: In 1882. we made Il loan on
this property, when in course of con.
structiUn, and after the man to whom
the loan had been made had spent not
only his own means e. considerable sum-
but the money loaned him Us we'll, he
failed and we were obliged to furecluse.
The cost of this property to us after
fOreclOsing was very little more than the
amount of the loan. The work of com
plptiuU tlp gtruptuVa NVag tlpD ,,lupnI la