Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1892-01-23
Is SOLVENT.
The Examination Into the Affairs Of
the New York Life Insurance COM

The Examination Into the Affairs Of
the New York Life Insurance Com
pany.
New York, Jan. 22.-The report of
Superintendent James F. Pierce of the
state insurance department of the result
of his examination into the affairs of tine
New York Life Insurance company has
just been submitted. The work was done
principally by Deputy Superintendent
Shannon and has been in progress for sew
ersl months past. Superintendent Pierce
says: "The most satisfactory result sp-
pearing in the report is the conclusion
reached that this great and useful institu-
ton of our state is beyond all question
solvent, and is the actual owner and pos
SCISSOR of available assets and property ex'
ceeding it's present liability by the sum of
Sc, O3S, 1856 accrued upon its general ac-
count and SO, $40, $50 upon its Tontine &C.
cumulations."
With regard to the real estate purchases
of the company there has been, according
to the report, great extravaganza on the
part of the management of the company.
The Holbrook steel property, which actu-
ally cost the company 81 ,009, S66, is ap-
praised at $3.50, 900. There was loss of
$3.50, 1894 in the investment in the Plaza
hotel property, while the real estate in
vestments of the company in Paris, France,
| which amounted in all to 81, 102, 604, are
valued by the French government at only
| $470, 400.
Under the head of 'agency manage
ment," NJ. Shannon reviews fully the facts
relating to the accounts of Spsnish-Ameri-
| can department, L. G. VsnuIem & Co. and
| s. L. Dinkelspiel. After a careful reading
| and examination of this portion of the re-
port am forced to the conclusion that the
facts presented clearly indicate that state
| of affairs -xists in the company's agency
management calling for the severest criti-
| cisms and condemnation and which if con-
| tinued must prove ruinous to the COM
pany.
Referring to Mr.. Banta's charge that,
| without authority of law or in evasion of
| law the directors used tho funds of the
| company to organize enterprises not son-
templated by its charter, Mr.. Shannon
| says: 1t is true that the company has sub
| scribed and paid for the majority of the
| stock of the Manhattan Safe Deposit and
| Storage company and the New York Secu-
rity and Trust company. As to whether
| this was o violation or evasion of the law,
l we do not care to express an opinion. Mr..
Banta charged that in violation of the law
| which prohibits loans on stock except on a
margin of at least 20 per cent, the direc-
| tors made loans on much less margins, and
in one case the president was personally
interested in a loan where the securities
were for months of less value than the
| amount borrowed thereon
| Mr.. Shannon says this charge seems to
be established, except that it would require
a judicial inquiry to determine whether or
not the law had been violated. Mr.. Shan
| non states that Mr.. Banta has offered no
| proof of his charge that President Beers
spsculated in Wall street through a mem
Der of the finance committee, sending
hundreds OF thousands of dollars of the
company's money to him, for which the
company held no security. AS to Mr..
Banta's charge that the directors ordered
Justification of the books and accounts to
make it appear the company was doing a
more profitable business than 1t really was,
Mr.. Shannon says Mr.. Beers defence that
/ he had the approval of the insurance de-
| partment in this matter will scarcely hold,
for Mr.. Mccall called it a questionable
method of creating the accounts. Mt.
Shannon further says: =
"The method of making these entries
should be altered so that neither the divi-
dend account nor the premium account
would be affected thereby The superin-
tendent of insurance and the officers of
the several companies should agree upon
| some such method. In thu meantime ii
would be unfair to the New York Life In
surance company to compel it to adopt a
system of bookkeeping which would place
it at disadvantage, or to criticise for hav-
ing followed the universal practice of 9TH
or companies" --r.~
1t was also charged, that the president
4 L.. h. -.