The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-01-31
An ExrRAoRDINABY SCANDAL.

The rarort Of the Superintendent Of the
New York Insurance Department on the
New York Life Insurance Company con-
tains a revelation Of mismanagement which
has not been eQuaied since the Uni Ell
States Bank was wound UP. The New
York Lie is one of the three largest life
insurance companies in the world. 1t holds
or should hold SI20,O0000 in trust for the
payment Of policies 1t has been for years
one Of the largest lenders OF money on real
estate in New York, and has thus become
holder Of vast parcels Of real property on
which il has been compelled 10 fOTeclOse
loans. It's investments were so widespread
thatit appears to own lots and houses in
! Paris, France. besides other lots and
houses in the leading cities Of the United
I States Il seems to have invested con-
siderable sums In railroad stocks and
! bonds and one Of the trustees, who was a
| stock-br0ker, changed these investments at
! " i'll, charging one commission on each pur-
/ chase and sale, and another for the advice
! be gave to the company to effect the change.
| The list Of trustees, who numbered some
! thing Ike seventy, included the most promi-
! nent business men in the city, men Of I'M
/ doubted pr0hty, well-knOwn shrewdness,
and large wealth. The President, Mr..
Beers, has the reputation Of being the ablest
actuaTy in the country.
Some months ago the New York Times
began TO publish criticisms on the policy Of
the company, based on information OBJ
tanned from one who had been in its employ
! fer years. Tie attacks became hotter and
! hotter, in spite of a libel suit for 100000
| which the company brought against the
| newspaper, and at last the Insurance De-
/ partment was compelled to investigate. It
/ reports that the company is solvent and that
/ life policies for which il is liable are safe
| But it also reports that sum amounting TO
! about One-thiTd Of the cOmpany's surplus
! has been lost by Encouragement. Several
! pieces Of property are mentioned which are
not worth much over One-haif what the com
! pany has loaned on them. On one piece Of
! real estate in Paris 5000, Geo has been lost
! In the books Of the company the Spanish
| American department appears as a debtor
! Of 100000. As much seems to have been
lost by agencies which collected premiums
on policies and failed to transmit them to
headquarters, Extraordinary items Of ex-
pendituTe are noted, among others large
sums paid 10 the well-known newspaper
correspondent Joe Howard, for suppress
ing items OF intelligence uDfaYOrable to the
company.
This terrible revelation has shocked New
York inexpressibly. The New York Life
has been regarded for over quarter Of a
century as one of the very strongest and
most solid financial institutions in the coun-
try 1t was concern from which a Dor
rover with suitable collateral could borrow
one, two OF three millions at a days notice.
To be trustee Of the New York Lie was
proof that one belonged TO what the French
call Ia Adute finance. And yet it seems that
this powerful institution. with the wisest
men Of the day at Its head. has been lending
right and left money which it will never get
back, has been allowing Itself to be plum