Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-02-06
PRESIDENT BEERS
TO THE PoLlcY-HoLDERs OF
THE
New York Life Insurance company.


NEW YORK. June 15. 1891.
Hon. J. +. Pierce. Superintendent Insurance
Departm cnt. Albany. N Y.
DEAR SIR-The charges that have beer
made against the company and its manage
ment in the public press growing out of
matters connected with its Spanish-Ameri-
can department having been cahled 10 our
president in London, we are in receipt Of q
cablegram from him in response, suggest
ing that the insurance department be in
yited in the public interests to make an eX-
animation of the company for the satisfac-
ton Of any policy-holders who might be
disturbed by these charges and criticisms,
and, in accordance with his suggestion, the
finance committee OF the company. at its
regular meeting held this date, adopted the
following preamble and resolution: At a
meeting of the finance committee of the
New York life insurance company, held this
date, the following proceedings were had:
Whereas, certain charges and CRITICISMS
have been made against this company in the
public press growing out of certain mat
tiers connected with the Spanish-American
department. and whereas the finance COM
mirtee of the board of trustees is satisfied
from the statements of the officers that
there viii be no loss to this company by
reason of the matters referred to, yet is de-
sirous that the public should be equally
satisfied, therefore, resolved, to that end
the superintendent of insurance of this
state be invited to make thorough exam
nation OF this company. In accordance
with the foregoing the company will be
pleased to have this examination at your
earliest convenience. Yours truly,
ISigned. A II. WEIGH,
Second Vice-President.
In accordance with the above, on the 22d
of June 1884, the insurance department
was placed in charge of the books, records,
etc. of this company and remained in
charge until the 4th of January, 1892
There are many reasons why it seems not
only proper but necessary TO renew with
,you the insurance departments findings.
First, no corresponding tests have ever
been applied TO the life insurance business,
and the results ought to be presented to
you not only without prejudice, but from
the company'S point of view, and to me it
seems to be clear that the only way 10 prove
this is by personal statement. / do not
mean by this to reflect in any way on your
sources Of information hitherto. say that
no corresponding test has ever been applied
TO the business of life insurance; by this l
mean no investigation by state insurance
department has ever been made of a COM
pany whose assets and general business
reached corresponding proportions. Since
any tests have been applied TO the conduct
of this business, results have been achieved
which few years ago seemed impossible.
The horizon has expanded and duties and
RESPONSIBILITIES
the executive officers of this company, and
of nearly all other companies, which, if not
new in kind, are so much greater IN degree
as to constitute almost new world OF eX-
perience in our business. The inyestiga-
ton Just closed has, therefore, been
remarkable for this as well as for other
reasons. and beyond question, in addition
to its proportions, has been the most search
ing and merchess inquiry ever made in the
executive offices of life insurance COM
pany. The central fact in any such inves-
legation is, and must be, the integrity of
the assets OF the company. The figures of
the inquiry were brought down to June 80,
1891, and the insurance departments gen
eral statements are as follows: Assets,
$780, 10, 690.64; liabilities, Sl06, 002, 0l4Sl; ).
gross surplus on policy holders account,
Sl4, EOS, 675.S3. The superintendent of in
surance well said, in commenting on the
above: "ThOse interested may be assured
that this conclusion is correct and trust
worthy" These words will bear reading
second time. They mean something differ
ent from a casual statement of financial re-
sponsibility in the business world. They
could be used only after our assets had
been subjected to test which might seem
from many points of view unnecessarily
severe, but which from the nature Of our
business and the sacred character of its
trust is unquestionably wise. The superin-
tendent therefore, means all doubtful items
were eliminated, that our opinions were
necessarily ignored, that disinterested opin-
ion was the standard and that we were
Obliged to plead before q bar where
mitigating circumstances were ruled
out of evidence. After such test, may
be allowed to offer my congratulations to
our mem ership on the result, and to state
that the other executive officers Of the
company, as well as myself, share with
YOU in the satisfaction of so great an
dEEiP n
emphasize my congratulations on this par
ticular and most important review OF the
report II would have been unnatural, l
think, if the ideas of myself and associates
of the aggregate value Of the assets OF this
company as expressed IN our last annual
statement had differed to a considerable de-
gree from the ideas of the gentleman who
fixed the values expressed in the insurance
departments statement Differences could
arise only in certain classes of investments.
A large portion of the assets of such an in
stitution as this are of such character
that there could be no variety OF opinion as
to its value on any given date. But 1t IS
equally true that considerable portion OF
the assets of this. as of every similar COM
pany. is of such nature that Its value at
any given time must necessarily be ex-
pressed in different totals by equally
capable and responsible men. The varla-
ton would express no actual hUctuation in
Which opinion might be most nearly cor
rect Is again a matter of opinion, and,
while / coucede the wisdom in such in
yestigation of a conservative view, and
under the peculiar circumstances SURF ound- |
ing our request for this examination the
wisdom and necessity of an ultra-conServa- !
tive view / cannot avoid the conclusion |
that in these particular items the opinions |
of the men who planned and directed the !
erection of the great company, while they |
may be accepted as the utterances of special |
pleaders, are worthy at least of considera- |
tion by you. / accept the aggregate imam |
cial findings of the insurance department as |
an Endorsement of the manage |
ment of this company at once satisfactory /
20 YOU and creditable to me and my associ- |
ates. 1t is possible that in spite of the |
peculiar character Of this investigation you |
would not have expected any word from me |
had the matter rested there but the super |
intendent of insurance has seen fit for an |
not only the solvency, but the !
great prosperity of the company, as evil |
denced in its gross surplus of nearly So, |
600, 600, to take up and discuss certain
terms, and in doing so has criticised the |
of the company in these details
very severely. This constitutes IN added
and by itself sufficient reason why I |
should 90 with you over the ground trav-
ersed by the insurance department in order
that your attention may be called to
many related facts which DO not ap-
bear IN the report. The departments criti-
r;sr,s COv.ar. sfava,.ai DhacPS of OauaUpment