Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1892-01-28
NEW YORK LIFE.
TIE MANAGEMENT OF TEE COMPANY TO Be
SHAKEN Up.
Action Taken at Yesterdays Meeting Of The
Board -Ezog5iani Commissions to
Agents WIN be Stopped
Forthwith.

sDriug, was increased by the pubica-
ton OF the report Of State Superinten-
dent of Insurance James +. Pierce last
week. During the interim between the
exposure Of MerZbLcher'S dishonesty
and the Official report several meetings
OF policy holders were held 20 decide
upon course FOR the protection OF
their interests.
The reports OF Superintendent Pierce
and Deputy Superintendent shannon
severely criticised the management Of
the New York Life. Bad judgment and
extravaganza were alleged, especially In
the treatment OF agents and in certain
real estate investments In New York
and France. President VIM. ii. Beers
was considered responsible for the mis-
takes aui the alleged extravaganza in
the management Oi agencies. Mr..
Beers has Uecn with the company for
twenty-five years, and for an ordinary
lifetime has been It's executive.
His power is now 20 be curtailed and
a thorough reorganization OF the COM
pAuy effected.
When the trustees OF the New York
Life read the report Of the Insurance
Department they decided something
must be done % restore public conf
CenCe aud protect the interests OF the
pOlicy-hO,ders A meeting Of the board
was called for yesterday, and at II
o'clock every one of the twenty mem-
beers, except Walter III. Lewis, was pres
snt. President Beers presided, but
everything had been prearranged and
ais position was merely periunCtory.
"a q NJ u
krusteee met and talked over the SiJua-
zion. Among them were Col. VIM. l..
Strong and c. G.. Baldwin. They de-
Cided that stringent measures were nee
essary and prepared a plan OF proceed
ure. Prior 20 yesterdays meeting every
one of the twenty trustees aSseDted 70
the plan.
President Beers formally called the
session 70 order and Col. Strong pre-
scented these resolutions:
RCSOjCCd, That a committee Of I'VE be-
appointed TO consider the report OF the
Superintendent of insurance. and 70
consider what action should be taken in
view thereof.
R sOlrCd, That William L. Strong, G.
c. Baldwin, John Clstin. Walter II.
Lewis and Edward n. Gibbs constitute
such committee.
There was no objection, and tho reSo-
lutiOus were adopted. Col. Strong, who
is President OF the Central NatiOnOl
Bank. was made chairman Of the COM
miltee. President Beers said be would
abide by anything the committee did,
and would gladly aid 10 in its eXamina-
ton. The Board then adjourned for a
week.
After the meeting Col. Ctrong out
lined the work the committee proposed
90 do. To q reporter he said:
president Beers had nothing 70 do
with the selection Of the committee.
The members were chosen by the trus-
tees last week. They insisted that
should be a member. We propose 70
work In a systematic way and recon-
mend 90 the board whatever we think
advisable"
"Wiu You recommend any reforms
or changes ~
Eyes. The report Of the Insurance
Superintendent shows that there is
much room for reform. We propose
10 change the entire internal manage
meut OF the company. IL should be
conducted on a sound business bOsis,
and I admit that In latter years it has
not teen. There has been some bad
Judgment and considerable extrava-
gance. We will try 70 remedy both"
''What plan do you propose 70 pur-
sue?
There has been eXtravagance IN the
management Of agencies, but there has
been nothing criminal, except possibly
I'm the conduct Of the agents themselves.
Because President Beers made an occa-
siODal mistake in investments is no rea-
son why be should be removed. He has
been too generous, though, with the
agents. The eXorbitant commissions on
policies and renewals were undoubtedly
due 70 the promises OF Mr.. Beers 70 the
agents. They made representations 70
him of the business they could bring In
and be acceded 90 all their demands.
This is the main defect in the present
management we hope TO remedy"
''W.ll you adopt any OF the sUgges-
tions made By Superintendent Pierce
and Mr.. Shannou?"
Eyes, we viii recommend the election
Of an auditor 20 keep track Of the
agents accounts. Heretofore President
Beers appointed an the agents, aud they
were responsible 20 him. He failed 70
examine their accounts often enough.
BY so doing he would have prevented
the shortages Of Merzbacher and Dink-
eIspiel. The auditor will look after that
matter hereafter"
"WuI the auditor have the power to
appoint agents."
'No; that will be In the hands OF a
committee. Mr. Beers did not fully aD-
preclate the work that has been accu-
mulating in the growth Of the company.
He tried to do too much. twas impos-
sible for one man % handle the enor-
nous work ia the management Of
such a concern as the New York
Life. -Four years ago we spoke to him
about this, but he pooh-poohed it and
said he was fully able TO cope with the
business. Hereafter there will be more
heads 70 handle the work"
Then you propose TO curtail Presi-
dent Beers'S pOweIS?'
"Weu, yes, 10 will amount to that.
He has been practically the company;
be carried the business in his hands.
Recent developments have shown that
was unwiSe. The New York Life has
In the negh5orhOod Of two hundred
thousand policy holders, a majority Of
whom are doubtless poor persons, and
their interests require q more cOnserva-
tive aud guarded business policy"
"Will the committee recommend the
removal OF President Beers?'
IL do not think sO--nOt ut present,
ANYHOW. ''Mr. Beers has been the
company for so long that it would be
,piudicious to remove him. / don't
lbiok a single member Of the committee