Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-03
NEW YORK, February, .,


70 the Policy Holders Of the New York Life In
surance Company:
On the 10th day of June, 1891, the follow
ing communication was transmitted to the
Insurance Department of the State of New
York:
NEW YORK, June l6, 1891.
Hon. J. +. Pierce, Superintendent Insurance De-
partmenL Albany, y. Y:
DEAR SIR-The charges that have been
made against the company and its manage
ment in tine public press, growing out OF
matters connected with its Spanish
American department having been cabled to
our President in London, we are in receipt
of a cablegram from him in response sug-
gesting that the insurance department be
invited in the public interests to make an
examination or the company for the satis-
faction of any policy holders who might be
disturbed by these charges and criticisms;
and in accordance with his suggestion the
Finance Committee of the company at its its
following preamble and resolution:
The Investigation Asked For.
"At a meeting of the Finance Committee
of the New York Life Insurance Company
held this date the following proceedings
were had:
'WHEREAs, Certain charges and criticisms
have been made against this company in the
public press growing out of certain matters
connected with the Spanish-American De-
partnent: and,
"Whereas, The Finance Committee of the
Board of Trustees is satisfied from the state
ments of the officers that there will be no
loss to this company by reason Of the mat
tiers referred to, yet is desirous that the
public should be equally satisfied; there
fore
Resolved, That to that end the Superin-
tendent OF Insurance of this State be in
Nif cd to noE Eoa nuh nirlof of
this company"
In accordance with the foregoing the COM
pany will be pleased to have this eIamina-
tlon made at your earliest convenience.
Yours truly, A. 81. WEIGH,
Second Vice President
The Insurance Department in Charge.
n accordance with the above on the 22d
day of June, 1881, the insurance department
was placed in charge of the books, records,
etcetera, of this company, and remained in
charge until the 4th day of January, 1892.
There are many reasons why it seems not
only proper but necessary to review with
you the insurance departments findings.
First no corresponding test has ever been
applied to the life insurance business, and
the results ought to be presented to you,
not only without prejudice but from the
company's point OF view, and to me it seems
clear that the only way to achieve this is by
a personal statement 1 do not mean by
this to reflect in any way on your sources of
information hitherto. 1 say that no cor
responding test has ever been applied TO the
business OF life insurance. By this mean
no investigation by q State insurance de-
partment has ever been made of a company
whose assets and general business reached
CORES ponding proportions.
Since any test has been applied to the con-
duct of this business, results have been
achieved which, a few years ago, seemed
impossible, The horizon expanded, and
duties and responsibilities have fallen upon
me and the executive officers of this COM
pany and of nearly all other life companies,
which, if not new in kind, are so much
greater in degree as to constitute almost
A New World of Experience
in our business. The investigation just
closed, therefore, has been remarkable for
this as well as for other reasons, and beyond
question, in addition to its proportions has
been the most searching and merciless in
Quiry ever made of the executive officers of
life insurance company. The central fact |
in any such investigation is and must be the |
integrity of the assets of the company. The |
figures of the inquiry were brought down to |
June 80. 1891, and the insurance depart |
ment's general statement is as follows:
Assets, Sl20 40 $50 e. Liabilities, sl06, ,002- |
Ola 81. Gross surplus on policy holders ac- |
count, Sl4, 70S, SIS So. |
The Superintendent of Insurance well |
said. in commenting on the above: Those |
interested NAV be assured that this con- |
cIusion is correct and Trustworthy
These words will bear reading a second |
time. They mean something different from |
a casual statement OF financial RESPONSE |
bility in the business world. They could be |
used only after our assets had been sub |
jected to a test which might seem from |
many points of view unnecessarily severe |
but which, from the nature OF our business /
and the sacred character of its trust, is un- |
therefore, means that all doubtful items |
were eliminated: that our opinions were |
necessarily ignored; that
Disinterested Opinion Was the Standard,
and that we were obliged to plead before a
bar where mitigating circumstances were
ruled out OF evidence. After such test
may be allowed to offer my congratulations
to our membership on the result. and to
state that the other executive officers of the
company, as well as myself, share with you
iii the satisfaction of so great an achieve
ment.
desire personally to emphasize nv con-
gratulations on this particular and most i'm
portant view of the report 1t would have
been unnatural, 1 think, If the ideas OF my
self and associates of the aggregate value of
the assets OF this company, as expressed in
our last annual statement, had differed to a
considerable degree from the ideas of the
gentlemen who fixed the values expressed |
in the insurance departments statement.
Differences could arise only in certain
losses of investments. A large portion of
the assets of such an institution Is this are
of such q character that there could be no
variety of opinion to its value on any
given date, but it is equally true that a con-
SlOeTaDle portion oil Tie assets OF Un1S, as OF !
every similar company, is OF such nature
that Its value at any given time must neces-
SaIily be expressed in different totals by
equally capable and responsible men. The
would express
No Actual Fluctuxtion in Value,
but simply a difference in opinion Which
opinion might be, for your purpose, most
nearly correct, is again a matter of opinion
and while l concede the wisdom in such in
vestigations of conservative view and |
under the peculiar circumstances surrouning
our request for this examination the wisdom
end necessity of an ultra conservative view,
/ cannot avoid the conclusion that in these
particular items the opinions of the men
who have planned and directed the erection
of the great company, while they may be
accepted as the utterances OF special plead
ers, are worthy at least of consideration by
you.
L accept the aggregate financial findings of
the Insurance Department as constituting
an Endorsement OF the management of this
company, at once satisfactory to you and
creditable to me and my associates. 1t is |
possible tina: in spite of the peculiar char
lcter OF this investigation you would not
have expected any word from me had the
matter rested there; but the Superintendent |
Df Insurance. has seen fit, after announcing |
not only the solvcncy, but the great pros
perlty OF the company, as evidenced in its |
rross surplus, of nearly SIS 600, 900 to Ike up
md discuss certain items and in doing so
las criticized the management of the COM |
osny IN these details very severely. This
'ufficient reason, why / should go with you
over the ground traversed by the insurance
department., in order that your attention {
nay de called to many related facts which |
10 not appear in the report.
The departments criticisms cover several
1hnses OF management, especially invest
nents in real estate and agents work. The I
criticisms OF real estate matters call atten-
lOn LOSSES " ha cd nj m