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

criticisms OF the superintendents report.
shall stop here. ! realize that there are
other criticisms which / have NOT
it necessary to do So / have
tried to present to you fairly the facts con
cerning those Of most importance, and pc,
iieve 1 have shown you that, while there
nave Deen errors in the management OF shIs
company, there has been no betrayal OF
trust. A full criticism OF errors with an
equally full statement of management de-
serving commendation would have been
only lair TO you and perfectly satisfactory
TO me, however severe these criticisms
might have been; but the s9perintenaentt tSa Q.
Insurance, who was invited to examine tne
condition Of this company, while properly
criticising whatever he deemed criticisaDle,
omitted to state
The Other Side Of the Case,
and, in addition, unfortunately, SO stated
his criticisms as to make 1t probable tnat
you may have misunderstood and overrated
their importance. l desire to reiterate my
disclaimer Of infallibility, and repeat the
message sent from Europe last summer, tnat
''In business OF our magnitude mistakes are
inevitable, and we compare favorably with
others; but my integrity of purpose cannot
be shaken. General net results are the
touchstones in every business"
We need not go far to fpd 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 to them without SEEM
ing to attack the companies themselves; In
addition Will say that to the best or my
knowledge and belief all of these cases are
natural experiences, incident to the fact
that
No One Is Infallible.
The Connections Mutual lost outright s44o.-
correspondent at indianapolis in 1885. The
Mutual Benefit Life Insurance Company of
Newark, n. j., q company emtnently con-
servative in all things, lost about the
same amount on Elizabeth, N. j., bonds: 1t
Is well-known fact that the Equitable Life
Assurance Society marked of in 1889 and
1890 almost 81, ,0OO, 600 on real estate and that
t.. II carries nearly 100000 in Its pub
ihsd pas as D assets
agency balances, etc. which is
practically another form Of expressing
what the Superintendent calls debt" In
port of the department examination OF the
the Mutual Life Insurance Company, made
in 1880, it was stated that $3.50, 701 Az had been
charged OF to profit and loss on account Ise OF
cases (and others might be referred toy we
have simply recited a list Of average errors
which, in proportion to the interest at
stake, represent less loss than the experience
Of any business of which 1 have knowledge
and with which the management of the New
York Life Insurance Company invites COM
parison.
Evil Practices Referred TO.
graphs Of this letter to the new and larger
responsibilities which have been met to the
best of our ability within ten years. Among
these has been the growth OF certain evil
practices in the conduct of the business of
life insurance. Several suggestions for their
complete reform it does not seem to me
that any adequate remedy has yet
been named. The worst practices, the
most demoralizing and in every
NOV n ,oSfr roha oCil flo twin
ofrebates to the insurers and the more or
less constant attempts of companies to en-
tice into their own service the agents OF
competitors. This is natural result of
fierce competition, and in my Judgment
should be speedily eliminated; and it seems
to me that the one and all sufficient remedy
would be land desire to go on record as
1ndorsing that plan) to limit by statute the
amount of insurance that com
Rany shall place upon its books:
That amount having been reached
new business is entirely taken away and it |
is practically eliminated from the contest.
This might disappoint ambitious managers,
(myself included,) but from the point Of
view of citizen it would be altogether
beneficial. Such a law would tend to give |
the younger and smaller companies better
opportunity to grow and would greatly |
strengthen and extend the beneficent work |
of life insurance by at once curtailing errors
in the conduct Of the business and widening |
the Held OF operations.
A Few Words in Conclusion.
p In conclusion let me say: When my official |
relations with the New York Life Insurance
Company began, 20 years ago, it's assets |
after ls years Of existence were less than |
8, 100000 and its surplus less than $500, 900.
Its history since its officially determined as |
sets, June 80 last 00O its SIS 900 in
surplus and its annual income of over $50, ,000,-
200, submit to your impartial Judgment as |
the achievement of my associates and my
self during the administration of our trust |