New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-01-23

/ .ltn
have been used for speculative Purp0Ses anu have
Ereaer portion Of the p Sen, " h ia rase Of loss
any such transactions The whole ipSs iaiis "p"
According TO the statement Of the companys az,
countant these three agencies are indebted 10 tno
company in the following amounts IN Io9n3 ad on L.
/ C. VanuXcm d CO.. $4,000 g. /: D S rec
345oo0 beng upward OF ~ 10000 oy ,h t leave no
doubt ia INV mind that several hundred tI. ~
dollars should he added 10 hes figures on S
of The facts convnceS me that this whole aGeh'y pu
ness all its features and relations to the rn -
and the results thcrefiOu wac entirely III law,
the Interests and profits Of the agents anu were
those Of the COMPANY "ld the " permitting
such continuous deyiations from ordinary puSilc'.
rules to the great loss Of the company
THE MAssACHUsFTTs SOUVENIR.
In regard to the publication Of the Massaehweus
! co,,vonir, and thc Public service Of the state oil
Nev-yorkr py the executive officers Of the company
and The large amounts expended therein lu'l> "s''e
with Mr. shannon that the publication OF histories %
the New York Life Insurance Company Is authorized
10 en- gage IN by the Laws OF the st'e vi a. e =,
| csn mid neither excuse. reason nor good Poh'E 10
Justify the transaction. -, ..o,,r,,,.s
In regard the purchase and sale OF secu 1 -
for the company by tle firm OF b. L. Mmte d 10 ,.,
appears hat Mr.. Loomis L. White was me seior iT1
ber and during all the transact YER & ,d
ing during Il period OF years to 10000 ooo' tLat sa
arn received commits Tor their services III hhhs
such purchases and they peIloIHeu :, snoui
interest Of the company IN we r when ibey received
noihins their commissions being charged only OH
nnr aII The lime Of these purchases Mr. LOOMS
| l. White was a trustee and member oil The hh""'e
Wibot reaection upon the action. service and good
faith OF Mr. White or his firm, or OF the cn n ,
officers of the company and assuming that me con.
Dnnv was really benefited by these services 1t IL tir
opinion of this Department. and it Is also advised; t
such and Ike transactions were pUhlmed ny a'n'uo
! II aws m ISL CHAPTER 434) cited by Mr.. shannon
and should not have been entered into by the paTues
Reputable counsel of the company and OF Mf, W i'
| hay rails no
| not fail within the prohibition Of the statute ana II
So were simply technical; Yet am compelled 10 az
agree with them. The fact that only one niin vas
employed for all this business one 81 , Mmo W" COM
nittee has been the subject OF severe criticism as an
exercise Of favorism not nuring to the best interests
| OF the company
INVESTMENT on MONEYS.
The facts and the questions relating to the invest
ment Of the moneys Of the company In the Aahha''ah
Safe Deposit Company and the New-l OK security
and Trust Company have been fully set forth ana con
sidered by Mr. shannon, also the alleged use Oh
moneys by the president in his personal transactions
or specuations Also the actuarial questions that
wer, submitted to and reported upon by Mr. Patterson,
the actuary Of this department and do not apd mat,
tiers and questions therein that require speWai , %
| by beyond reference thereto ana apPIo'h vi
| Mr. shannons conclusions. . 49,. G., ,b
| There still remains some work to be done III 't nc
examination of the eaestate titles OF the company 70
complete the basis Of the value of the assets OF Ms
company as herein estimated ana reported u! sir'
s sapsnGc and ' possibly IN case those titles shall hot
be fully confirmed an additional repor may be 10
ouired The Interests OF the public. ESPECIALLY OF te
company aud It's policy holders, as well as the best
interests Of other life companies and 81 ue lhsn,Cc
! Department have caused me 10 expedite this exam
ipation and make this report at the earliest practicable
period. There Is no probability tlat tDe oon,n1 i
~ the superintendent of the Insurance Department
a. TO what. If anything, should sugsst or advlse ~
the premises remedy for the Sescts ana irream
that I have pointed ont, aud also 10 whom: A. a DC
partmelt or Official, my suggestions Or advice sho""
| be directed.
| have concluded that the power Of amendment and
reform in the action OF the COMPANY Itself ana re
trustees and policy holders, and my preeM dnty H.
performed when | have plainly, and without malice OF
exaggeration, gathered and stated The fS ana a. .,n
ton and the views OF this department In resar To- wha
are deemed evils and irregularities % methods In the
And If they such 10 command the confederation
and belief Of all those who are interested and VINO are
ms,te Of TIE Situation e2'IsgnS 'c sns WA, ,sI
| all evils and Irregularities will disappear. and give
renewed life and usefulness 10 this HE insurance com
pany l shall be rsdy and anxious at all tines 70
aid, by ALL means in tho power o the Insurance Depart
reserving 70 the Department the right % take such
ecdon at all times in the future as s,la be deemed
wise and beneficial 10 all concerned.
PUBLICITY THE REMEDY.
Publicity Is the great preventive and remedy FOR
corporate errors of administration under represcta~
tive form Of government. The founders Of our Union
did away with paternalisJn at the same time that
they threw on the shackles ,, depotsm. ard The
present superintendent does not believe that Il Wa
tie intents Of The laws creating the Insurance Depart
ment or that It shond ever be within their sc0pO 10
| erect the lawfully appointed cusiOdlans OF tho
peoples funds another custodian who should Inter
neddle in their corporate administration.
The trustees directors and officers OF Operations
I'm th@ state are legally responsible for their cts and
the results Of them. ThciT espdlsibuty should not
h. diminished either Ia law or II. the public cetlHu~
ton by u supposed participation therein by any State
or other official Of whom perhaps II may one day be
| asked Quls c1istodict custodee ~ Therefore the
stating the fict they have been disclosed By the
examination confident that II further renedy DO needed
IL VIII be found under the orderly and appropriate
| PROCESSES provided by cur laws
| In conclusion let add that. In undertaking this
examination, the Superintendent has not considered
his function to be that Of prosecuting attorney or
Of q detective employed to hunt down and convict
| Department Of this state bengnant In in con
ception and should be protective in ts operation.
Icllgnant In that IL intended tO foster and To
did class OF corporations doing great and benc
fetal work In alevlatng human misery and III indcinnl
fying humanity against inevitable loss Protective
I'm that il stands as the Guardian % comTaiies ana
policy holders alike against all possible tendency to
wrong on the side and 70 possible Injury or In
furious attempts the other.
The published reports Of the conditions Of companies
under It's supervision should be authoritative and hnhl.
The Investigations should be Impartial and Us ndn ~
judicial such the superintendent has stHvcn tO make
both the present examination and the conclusions at
and his oath have controlled his action To the final
conclusion % his selfconsc ousncss and he has done
his duty without fear, favor pref udice.
JAMES L. PIERCE Superintendent.